Rule #3 – Invest Using the Strategies that Make Sense and the Location That Makes Sense for the Current Market Conditions

I always say invest where it makes sense and dollars.  You don’t need to invest in your home town, because you live there…nor do you need to go all over the country investing everywhere else. Do your homework and invest in locations that align with the real estate investing niche you chose using the strategy that is a fit.

For example, three years ago I was investing nationally in pre-construction in most strong appreciating markets. That strategy made sense at the time. It would not make sense in a depreciating market.

Today I live in a town that has been on the top 5 most foreclosures list for over 2 years. Why would I need to invest nationally when there are more than enough leads right in my own backyard?

Where to invest varies depending on the location of the investment as well as market timing.  My investment choices change as often as the market does. Being sensitive and aware of changing market trends is helpful to know where to invest and the most profitable strategy to follow.

Rule #4 – Use a Tried and True Strategy

Why make all of the mistakes others have already made if you don’t have to? Find a good investment strategy that works with your goals and stick to it. You will be tempted and pulled in many directions by all the different gurus out there saying there way is best.   Find a mentor and coach with experience in today’s market and then follow where they lead. After all, why would you walk through a mine field alone if there was someone else familiar with the route who could lead you safely through?

Rule #5 – Hire a professional real estate attorney review all your processes and paperwork before utilizing it in your market.

Because most trainers and coaches are not attorneys, as much as we try, we cannot be experts on laws in every state in the U.S.  For this reason it is vital for you to make sure the contracts and steps you are taking are not going to lead you the courthouse.  Anyone can sue anyone these days.  The way to avoid this is to first of all, always be nice and come from a place of caring in your dealings with others. Don’t avoid dealing with situations personally or you may find a costly summons to court forcing you to deal with things the expensive way.  A second way to avoid litigation is to assure your paperwork and procedures are legal to the best of your ability.  I know attorneys can be expensive which is why I signed up to use a service that offers me unlimited consultations and a certain number of document reviews for only $50.00 a month.  I recommend this way to be the most cost effective resource to be able to accept advice from a licensed real estate attorney in any state.  If you are interested in looking into this service where I have unlimited regular legal conversations and reviews, go to www.LowPricedLegalServices.com.I use the small business plan in the state of California, but plans and offerings vary from state to state.

Rule #6 – You must know basic computer skills.

You will want to know how to use email, internet and office products like Microsoft Word and Excel.  It is helpful to know how to create graphics but not necessary.  You will need high speed internet to enjoy utilizing this wonderful tool and avoid frustration unable to watch videos and waiting for pages to load.  You can do your entire real estate business from a computer.  You will absolutely need to type contracts and do research and there is no faster, easier way.  If you do not know how to use email, the internet and basic word on a computer, find a class you can take to learn the skills you lack.  If you have tried to do business without these tools, you will find them to turbo-charge your business once you have them.

Rule #7 – Diversify your investments – Don’t put it all into one area or one type of real estate

So how did I go from having no money to the prosperity I enjoy today?  It started with a book called the “One Minute Millionaire” by Mark Victor Hansen and Robert G Allen.  This book showed me I could really have the kind of lifestyle I desired, if I would diversify my income, while at the same time making wise investments.  I studied this philosophy on money found in this book as well as in others like it. Then I did something many are too afraid to do – I put what I learned to work in my life.

I currently divide my income into various investment strategies such as real estate, stocks, business ownership, savings, Money Market, IRA’s, and others.

However, since I see that 40% of today’s billionaires made it in real estate, I have chosen to place a large percentage of my time and money into this strategy.  What type of real estate do I invest in? This varies about every 6 months depending on the market conditions as I mentioned earlier.  I also have relationships with a “power team” of experts so we have all the correct data to consider our strategy as the market changes.   Chapter 4 goes into detail on how to create your own dream team.

In summary, there is no hard fast rule that applies to all investing – except one. That is this. In order to profit from your investments, we have found it important to diversify them. Consider different types, different areas and different strategies that make the most sense, therefore bringing you the highest return on your investment.

To Your Massive REI Profits!

Tamera Aragon

Definition of Forbearance: The act of a creditor who refrains from enforcing a debt when it falls due.

Loan forbearance is a new agreement with your lender to repay your past due payments when you are behind on mortgage payments. This will stop foreclosure sale of your home quickly.

Forbearance is easier to arrange prior to the Mortgage Company filing a foreclosure lawsuit. Some lenders will not consider this after filing, but it’s worth trying.

This is the most common way of resolving a loan default. You and the lender agree to work out a plan which will let you repay part of the delinquency each month, along with your regular monthly installment.

If you have incurred a short term financial hardship and your loan is 90 days to 365 days past due, you might consider submitting a request for a special forbearance. A special forbearance is designed to provide you with more relief than is possible with a regular repayment plan. There are usually two types of special forbearance available to you.

Type 1: Typical approval can result in spreading the repayment over 12 to 18 months.

Type 2: This option most often is utilized in an unemployment situation whereby the promise of future employment is present.

If you are temporarily unable to meet your monthly mortgage obligation, ask your lender’s loss mitigation specialist if this is an option for you. Under such an agreement, the lender suspends and/or reduces payments for a period, usually less than 6 months, although it can go longer. At the end of the reduced-payment period, a repayment plan kicks in. You agree to make the regular payment plus an additional agreed-upon amount that will cover all the payments that were not made during the forbearance period. The repayment period is usually no longer than a year. If the plan is successful, you will be brought current and the lender will suffer no loss.

However, the lender will only consider this approach if convinced that your financial problem is temporary. The burden of proof is on you to document the case. Lien holders will usually cooperate if you can show the ability to resume payments on a specific date in the near future. You may qualify for this if you have recently lost your job or your source of income, or if you had an unexpected increase in living expenses.

When coordinating a forbearance plan, you must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.

Please Note:
Unfortunately 85% of homeowners fall out of Forbearance within just 2 to 3 months. The reason is they can’t afford the higher payment amount. Also, understand that just because you work out a deal with the bank, you are NOT out of foreclosure. In fact, you are STILL IN FORECLOSURE until you complete the entire forbearance agreement plan. Then and only then will you get a foreclosure withdraw letter from your bank stating that your loan is current. In the mean time, the bank will usually keep passing the foreclosure sale date each month – moving it to the next month. But, if you don’t pay ON OR IN ADVANCE of the payment due date (even if you are just one day late!), the bank can sell your home ASAP at the next sale date. If this happens, to avoid that fast foreclosure sale, you should contact your bank immediately and try to work out a NEW forbearance agreement if possible – but understand that once again, you will need to come up with that large down-payment and you will get a new (even higher) monthly payment.

For more coaching on foreclosures

Originally posted 2008-02-03 08:31:48. Republished by Blog Post Promoter

Q: WHAT DEBTS ARE NOT DISCHARGEABLE?
With some exceptions, the following debts remain even after bankruptcy:
· Child support & alimony
· Student loans that became due less than 7 years ago
· Federal and state income tax obligations less than 3 years old
· Debts for restitution from criminal convictions and drunk driving
· Debts the bankruptcy court decides where from intentional acts, fraud or wrongdoing (e.g., lying on your bank loan application).

Q: WHAT IS CHAPTER 11 BANKRUPTCY?

Chapter 11 is reorganization for businesses and individuals with debts too large for Chapter 13. Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to any business, whether organized as a corporation or sole proprietorship, or individual with unsecured debts of at least $336,900.00 or secured debts of at least $1,010,650.00, although it is most prominently used by corporate entities.

For more coaching on How to Avoid Foreclosure

Originally posted 2008-07-07 10:56:46. Republished by Blog Post Promoter

Our eBook highlights “18 options to Avoid Foreclosure”, which we will be sharing with you through this blog. Please feel free to post questions and comments, it is easy to learn by studying, but it is through discussion that you begin to understand.

This is only one of the many useful sections of this 50-page eBook. If you are interested in picking up a copy of this coaching guide, please visit http://www.avoidforeclosurehowto.com.

Originally posted 2007-11-30 09:12:51. Republished by Blog Post Promoter

“Without effort, you cannot be prosperous. Though the land be good, you cannot have an abundant crop without cultivation.”

Plato

Real Estate as a Path to
Wealth and Freedom

Forbes magazine lists the top 400 wealthiest people every September. In September 2007, 40 of the 400 people on that list made their billions specifically in real estate.  Many of these people started with nothing, some immigrants even, to move up into this category.  Real estate is definitely a path to be seriously considered in building your wealth.

Did you know that most of those 40 billionaire real estate investors are only doing their real estate part time?  And do you realize they can run their real estate investing business from anywhere in the world?  Freedom…  Just the sound of that word brings a smile to my face.  Real Estate investing offers you the freedom to make your own choices about how and where you spend your time along with who you spend it with.  Financial and time freedom is definitely something successful real estate investors enjoy.

“But what about the risks? you say? Of course for every “tit” there is a “tat”, for every high a low, for every good a bad.  Yes, unfortunately like any entrepreneurial venture, there are risks.  My husband owns a retail store and he risks every day that someone is going to trip and fall and sue him. He risks that he may not sell enough to pay his bills, etc.  I think you get the point.

However there are steps you can take to minimize your risks and maximize your profits.

Rule #1 – You Do Not Need To
Re-Invent “The REI Wheel”.

You will need to get training and have a mentor or coach, (or maybe several), in order to succeed. Even the best athletes in the world have a coach. Why? Because a coach will keep you on track. Don’t try to do it on your own. That school of hard knocks is going to cost you way more than good training and an experienced coach.  Chapter 5 goes into the criteria to look for when choosing a trainer or a coach so I won’t elaborate further here. Just know I believe this to be the first step in minimizing your risks and maximizing your profits.

Rule #2 – Do Your Due Diligence (or as I say, “Do the Due”).

Would you buy a car without checking the engine, tires, brakes, or interior? Would you marry someone without learning all you can about them and knowing their flaws and good things before you take the plunge?

I hope not!!

Then why do so many real estate “investors”  buy a property without doing the proper due diligence before they get into a contract?

Answer: Many simply lack the knowledge of what to look for in a property when considering it for investment purposes.  In other words, you don’t know… what you don’t know, right?

So here’s what you need to know. Before you ever buy a piece of real estate you should check it out from top to bottom so you know exactly what you are getting into. A little bit of work upfront will save you huge headaches and money down the road.

People often ask me, “What should I look for before committing to buy a property?”

There are two ways to make money in real estate. If the property is going to supply these profits for you, you would want to consider it.

1. When the property brings you cash flow from monthly rents while also appreciating.
2. When you make a profit re-selling the property through appreciation.

Now keep in mind, you can profit from appreciation two ways.

1. Market appreciation – the economy is causing properties to increase in value.
2. Forced appreciation -   when you either buy property cheaper than what you can resell it for or you can do some improvements to increase the value more than what you spend.

Here are Three Most Important Questions I ask myself before I consider a property for investing?

• Would we buy it for ourselves?
• Would we want to tell our friends and family?
• Is this a good deal for other real estate investors?

The most important outcome to consider is if the answer to this question is yes, “Will my money put into this property make me more money?”

I call what I do real estate “investing”, not real estate “divesting”.  You will always want to do the same.

How do you know if it is going to make money? You do your due diligence before you commit to buy any property.

Of course, as you know, there are never any guarantees in life. However, if you have certain criteria every property needs to meet in order to profit and how to evaluate a property for those qualities, the likelihood that you will succeed are much greater.

It’s very easy to get caught up in wanting to help people if they need to sell their house.  Or you may just personally think a property is good looking.  But those are not the only reasons you would want to buy.  To avoid getting emotionally involved in a property purchase, I have created a due diligence checklist.

I have provided a tool that has saved many people from both passing on deals they should take as well as taking deals they should pass.  I took from my own trials and errors & created a checklist – The Real Estate Investing “Before You Commit” Due Diligence Checklist. I also have created checklists for all I need to do after I decide to buy a property, another list of what to do while I own a property and another list for what to do when I am selling a property. My students have full access to these as well as 775 other support documents.

If you would like to grab The Real Estate Investing “Before You Commit” Due Diligence Checklist for yourself, I have made it available when you login at www. MassiveProfits4REI.com as a free gift. Feel free to download it.  Keep in mind every one of those 50 due diligence items on that list do not need to be followed on every deal you consider. However, it’s a great list to follow and assure you have remembered to consider all that can affect the outcome of your purchase.  Your due diligence makes all the difference on whether your purchase of property brings you a profit or a loss.

To Your Massive REI Profits,

Tamera Aragon

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