Working in your area

Working in your area

  One of the biggest mistakes I see beginning investors make is buying a property a long distance away from where they live.   And trust me, I understand. It was a great deal. And you hadn’t seen anything that cheap around you.     Ashley and I did the same thing when we bought a place for $8,000 45 minutes (one-way mind you) from where we lived. And that…

Lonnie Deals in Action

Lonnie Deals in Action

Today is a bittersweet day. We had a Lonnie Deal payoff for the very first time in over six years. It’s bitter because we just lost the $275 income stream this deal was paying us and now we have to go out and replace that money.   It’s sweet because I just got a text from my good friend named Mike Hicks. Mike’s a smart investor up in the Rossville…

Why you should rent-to-own

Why you should rent-to-own

  It’s my opinion that in today’s market, landlords should be offering all their rentals as rent-to-own. In this deal structure, a tenant buys the right to purchase the landlords property, for a predetermined price and time frame, all while renting the house. It’s also called a lease option.   So what makes this deal structure attractive? First, you’ll get market- or above- rent rates. That’s because the number of…

Would you rather have cash or income?

Would you rather have cash or income?

Would you rather have cash or income?   I was sitting at a closing recently, quietly working through a problem on the financial calculator. My agent asked what the app was on my phone. When I responded that it was a financial calculator, both my agent and the buyer’s agent were perplexed as to why I needed one, since the mortgage brokers do all the mortgage calculations.   This is…

Lonnie Deals are financial boomerangs

Lonnie Deals are financial boomerangs

Lonnie Deals are financial boomerangs:   I want to tell you about one of my favorite deal structures: the Lonnie Deal. That’s when an investor buys a mobile home on a rented lot for cash and resells it, offering owner financing to the buyer.   The reason I love them so much is they fit into any investor’s portfolio at any experience level. They work especially well for beginning investors….

Six degrees and six vacancies… Oh shazbot!

Six degrees and six vacancies... Oh shazbot!

Six degrees and six vacancies… Oh shazbot!   It’s six degrees outside. Well not exactly. Technically it’s in the teens, but with the wind chill, it feels like six degrees. Needless to say, this is not normal weather in Georgia. There’s ice and snow everywhere. And as I lay in bed this morning, all I could think about was all the ways this weather could affect the six vacant houses…

Work to learn, not to earn

Work to learn, not to earn

Work to learn, not to earn:   There are concepts that have truly life-altering effects. For us, the idea of working to learn, not to earn was one of them. This notion came from a book we read called “Rich Dad Poor Dad” by Robert Kiyosaki.   If you’ve never read that book, please do. It’ll change the way you look at money, your job and investing forever.   In…

How to make your top offer

How to make your top offer

How to make your top offer:   When you’re looking to buy an investment property, it’s important not to get emotional while evaluating the deal. Let me warn you, failure to keep your emotions in check will cost you big time. Ask me how I know.   One of the worst deals Ashley and I ever did was a result of us leaving our excitement unchecked. When we were new…

Mom and Dad got one

Mom and Dad got one

Mom and Dad got one:   I’m so proud of my mom and dad. They just bought their very first income producing property – and they did it very creatively.   In early fall 2005, my mom and dad broke ground on a house. At the time, my brother-in-law, Michael, was their builder with myself and two other friends making up his crew. We had a track record of building…

Easy on the people, hard on the problem

Easy on the people, hard on the problem

Easy on the people, hard on the problem   I learned my property management system from David Tilney. He has a fantastic course that will change the way you view land lording in general. One of the things David says is, “Be easy on the people but hard on the problem.”   Truthfully, when I heard this, I had no idea what David was saying.   My first real-world teacher,…