Fixer Jay’s Mom & Pop Millionaire Blog

SHAKY JOBS – TRY THIS TECHNIQUE AT HOME

Today can be the first day on the road to your financial freedom! Now more than ever, Income real estate will work for newcomers and “old salts” alike. A collapsed housing market, coupled with failing mortgage lenders, has created a depressed market, ideally suited for small-time do-it-yourself Investor. Why is this good – you ask?

To begin with, Income real estate like duplexes and small apartments are caught in the downturn same as the houses we live in the big difference however ­rental units earn you money – houses cost money! Since the general real estate downturn includes all real estate, houses and Income units alike, an extra­ordinary lifetime opportunity presents itself)

Rents are actually increasing as more homeowners lose their houses and are forced into renting. Income property prices have shrunk to 20 year lows, just like houses, however; the financing for older rental units that I mostly recommend, can now be negotiated between the buyers and sellers. In other words, we’re once again back to seller financing where cash flow can be automatically structured In the deal. No longer are small-time Investors stuck with what the bank says.

If the train left the depot without you before, this is your time and opportunity to catch up!  You can now buy properties with seller financing and cash flow that make sense. For many, it’s a second chance to buy real estate that can lead to financial freedom. Today, you can often start with cash flow, build a second Income and even switch to full-time real estate Investing. It’s truly the perfect real estate Investor storm. The opportunity is right now!  It’s time to learn the basics and get started without delay!

Tags: Fixing For Money by FixerJay
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At a recent radio talk-show interview I was asked, “What particular technique or special skill has made you the most money during your long and obviously successful real estate investing career?” My simple single word answer as always seemed to surprise him. Perhaps he was hoping to hear a sexier answer! Understandably, “land­lording” doesn’t conjure up an exciting image for most listeners. Still, that’s my answer and I’ll stick to it.

Managing your property and tenants is a business. Treat it that way from the very beginning and you’ll be ahead of the game. Many investors have a problem with this idea when they start buying properties. It does no good to negotiate a “killer” purchase price, which is considered fun, and then give all the money back to a tenant who sues because you failed to learn about the paperwork or habitability laws, which many consider drudgery. Same thing goes for taxes.

Perhaps he was hoping to hear a sexier answer.

When you make landlording a serious business in your daily affairs, your investment life will suddenly become much more man­ageable. There’s no way I could have acquired 200 houses without this skill. That’s why landlording and wealth go together in my book.

I know many different ways and tech­niques to make money with my real estate. Over my 40 years or so I’ve done just about everything with houses and apartments­ even building from scratch. But I must tell you some of my most rewarding (that means profitable) deals have come my way because I know how to be a good landlord. I can handle tenants and I know how to arrange my business affairs to protect myself and stay away from problems.

In his excellent book, “Rich Dad Poor Dad,” Robert T. Kiyosaki uses a term “buy, hold and pray” describing what some investors do. He says: “Most people who invest are speculators and gamblers, at least mentally! True investors make money in bad markets and good times alike.” That’s what I do.

Buying junker houses for fifty cents on the dollar takes skill. Lease options, buying paper, adding value (fix-up) bank repos, partnerships and selling for top dollar all require a good bit or education. But none of these will provide you with long-term wealth if you don’t have a proper foundation to build on. When your business is houses and apartments, you need people skills and a business plan to support your real estate activity.

Your job as a landlord is to be as responsive to your tenants as you can. But never should you allow yourself to be stampeded into rushed decisions simply because your customers say you should.

Tags: Landlording Success by FixerJay
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INVESTORS NEED GOOD REAL ESTATE AGENT

Real estate agents are the eyes and ears of the real estate business. Ninety-six percent of all sales and trades involve licensed sales per­sons and their brokers. It would be very foolish indeed to harbor any serious notions about excluding them from your investment plans. The best thing you can do for yourself is to diligently begin searching for a good one.

Before I get started on the How’s and WHY’S of selecting the right agent for you, let me first discuss the issue of commissions – what agents earn when they help you buy and sell real estate. You must first understand there is no such thing as a standard one-size-fits-all commission. They come in all different sizes.

For example, in my town, most agents charge about 6 percent for selling houses. However, that’s not the market I’m part of. House buyers generally represent one time “warn-bam” trans­actions for most agents. I’m a buyer and sometimes seller any time a good deal pops up. Unlike the guy who buys a house and that’s it, I’m good for many transactions. Naturally, I represent a greater source of income for my agent.

Understandably, agents can work for smaller percentage commissions when multiple trans­actions are anticipated. To give you an Idea of what I’m saying here, I’ll share my own experi­ence. The average commission I’ve paid out for all my transactions during the past 30 years is slightly less than three percent of the purchase price. That’s roughly half of the so ­called going rate in my town. I find it best to negotiate the commission fee In advance of every deal I do. Just remember, it must be fair for the amount of work involved.

Agents Who Shop for Themselves

I often hear seminar leaders tell investors to seek out real estate agents who buy and sell properties for their personal investment ac­counts. This advice is akin to leaving your fiancée at an all-night bachelor party, hoping your friends will always do what’s right for her.

I can see no advantage to having my own agent competing with me to acquire bargain properties.

Just like a budding romance, the first thing that has to work is chemistry. It will do you no good in the long run to force yourself into working with an agent who disgusts you no matter how good you think he or she may be. Obnoxious agents are best left to service ob­noxious house buyers since there’s no short­age of either one out there. I mention this because it’s very important to develop a rela­tionship that can last a long time. Lasting together is much easier when you like each other.

The worst part is always breaking the ice ­introducing yourself to complete strangers whom you think might be able to help you. There’s no way to short-cut this procedure, so it’s best to simply charge ahead and do it. When you eventually find an agent who can appreci­ate your goals and is willing to spend time helping you achieve them, you’ll suddenly real­ize you’ve added a powerful new tool to your “wealth-builder’s” kit.

Tags: Success Secrets by FixerJay
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Certainly you’ve heard of life insurance annuities. You pay your premiums for X – ­number of years. Then one day, many years later, you’re finally paid up. Your policy has earned cash value for you!

The real estate-rental housing business works exactly like that only better, For one thing, it’s faster, and also, the ratio of the payback vs. what you contribute is far greater than any insurance policy I’ve ever seen. It has to do with the leverage and compounding we’ve already discussed. Also, there’s an added dimension of per­sonal management. You have total control over your assets. For example, when real estate sales are at a peak, you may decide to sell, taking full advantage of maximum prices (frenzy buying). Same thing with rent increases. The shortage of rental hous­ing can produce much higher profits for astute owners.

I like to look at my rental houses as long ­term annuities. I buy them – I fix them when needed.  After that, it’s a simple mat­ter of keeping them maintained and rented. In return, they keep me supplied with fresh green money.

That’s fair isn’t it!

RENTS DON’T STOP

You may have a good job with sick leave and other “perks,” but many people don’t. That’s where my rental houses shine! If I get sick and don’t work, I still receive my rents like clockwork. Sure I’m responsible for up­keep. That doesn’t mean I do the work. The truth is, in my case I don’t do maintenance any more my crew does It for me.

Many business opportunities I’m familiar with don’t produce much income when the owner is not performing. Take my friend and his hot air machine. If he gets sick and ‘ doesn’t keep snapping pictures and blow­ing up balloons, he won’t generate much Income, at least from that particular source. The bad news is, he still has those contract payments to make. Non-stop rental income allows a tremendous amount of flexibility for property owners. It means you can arrange your personal schedule to benefit you the most. Weekend activities can be done on Wednesday. Vacations can be taken any time you choose

One of the most rewarding financial benefits of all comes at the end. For many folks, retirement means cut-backs and reduction in the quality of their living stan­dard. Typically, retirement plans provide about half the income you’ve become accustomed to living on, that’s definitely not the kind of retirement Income you must settle for as a property owner.

Tags: Long Term Investing vs. Speculating by FixerJay
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