Transactional versus relationship-based deals

Transactional versus relationship-based deals

Transactional versus relationship-based deals   Real estate deals can be lumped into two basic categories. They are known as transaction-based and relationship-based.   Transaction-based deals are the ones where you really don’t meet anyone in person. You buy these properties in places like auction sites, the MLS and foreclosure auctions. This deal type is attractive because, for the most part, you can buy them from the comfort of your home…

Did we buy an alligator?

Did we buy an alligator?

Did we buy an alligator?   Real estate investors are known for being risk takers. As a matter of fact, most of the time the reason an investor gets into trouble is because they estimated too high on what a property would sale for once they fixed it up.   The outcome for this speculation is that the investor gets too thin with their numbers and overpays for the property….

Make sure they understand

Make sure they understand

Make sure they understand   People tend to naturally say “No” to things they aren’t familiar with. This is a reality real estate investor must overcome in order to get a “yes” on a creative deal structures when talking to sellers. You do that by making sure they understand what you’re proposing.   Take owner carry-back financing for instance. Most people are accustomed to the idea of making payments, especially…

Site unseen

Site unseen

Site unseen   We’ve been getting calls lately where sellers want us to make offers on their houses sight unseen. (Yes I know I misspelled the title. You’ll understand why shortly.) We always tell them we can’t do that because it’s like buying a truck without popping the hood or taking it for a test drive. You really can’t tell much just from looking at the outside.   Ashley and…

Man on a wire

Man on a wire

Man on a wire   Real estate investing is not for the faint of heart. Nor is it for the faltering soul. To be successful at it, you have to be willing to ride the roller coaster while pushing forward. Take what happened to us last week for instance.     As I was leaving my house after lunch on Monday, I get a call from one of the pre-foreclosure…

Empathy versus sympathy

Empathy versus sympathy

Empathy versus sympathy   Empathy and sympathy are two very similar words that have related meanings. They both have to do with understanding someone else’s feelings. That being said, you have to focus on one versus the other when it comes to making offers.   The late, great, Zig Ziglar has a story he uses to illustrate the difference between the two concepts. He talks about when he sold Saladmaster…

Don’t get so busy you forget what you’re doing

Don’t get so busy you forget what you’re doing

Don’t get so busy you forget what you’re doing   I got to do something I haven’t done in a long time the other day. I got to spend some one-on-one time with the guy who taught me most of what I know about real estate investing. His name is Bill Cook.     The reason this was a rare opportunity for me is because Bill and his lovely wife,…

Evaluating a big fat juicy deal

Evaluating a big fat juicy deal

Evaluating a big fat juicy deal   How many of you romance the idea of getting that big juicy deal that nets you $75,000 or more in profit? I know I do.     Logic dictates that in order to get bigger profits like this, you’re going to need to work with houses at higher price points. Right?   Well, it just so happened that we got a call last…

Subject-to deals

Subject-to deals

Subject-to deals   Subject-to seems to be the new buzz-word circling through many of the real estate investor teaching arenas. That’s because in our current market, subject-to deals present a great opportunity. Before I get into that, let me explain what one is.   A subject-to deal is where you buy a house from someone with a mortgage in place. Instead of getting your own loan to pay off your…

Expenses Escaped

Expenses Escaped

Expenses Escaped   Ashley and I have been blessed to have Peter Fortunato as one of our main teachers since we got into real estate investing.   When it comes to creative real estate transactions, Pete is like one of those guys that does chainsaw wood carving. He walks up to something that looks like a stump to everyone standing around, cranks up his creative chainsaw mind and begins to…