• Search for:
• Real Estate Headlines
  • Failed Short Sales Exacerbate Foreclosure Losses For All [Housing ... - Seeking Alpha
  • Central banks fire new rounds to break bank lending logjam - AFP
  • The sky isn't falling, so it's no time for Ottawa to overreact - Globe and Mail
  • From subprime to stock swoon - Globe and Mail
  • Victorville California: A desert boom town goes bust - guardian.co.uk
  • Michigan to combat claims of possible suppression of voters - Detroit Free Press
  • Financial Meltdown 101 - AlterNet
  • Looking for the right time to buy a house - Shreveport Times
  • What it means: Words that define the downturn - Houston Chronicle
  • Corzine: Jersey may buy homes to stop foreclosure - The Star-Ledger - NJ.com
• Recent Posts
  • Stock Market Pummels - Safe Money In Long Term House Rentals
  • It’s Up To Real Estate Investors To Move Where The Money Is Flowing!
  • Bailout - If Only This Could Happen Instead!
  • How Banks Make Money & Why Real Estate Will Come Back Quickly
  • No Arms, No Legs, No Worries - Nick Vujicic!

This could be the most important real estate tip you ever receive, and by taking daily action, you could change your financial life forever!

It is easy to claim to be a real estate investor. You can easily uncover whether people are truthful about this with one simple question. The question is:

“Are you a committed real estate investor?”

Commitment equals results. Generally, being a real estate investor means the result is making lots of money. Let’s assume that as a real estate investor you want to net $100,000 per year in cash.

How do you measure your own level of commitment? The first step is to answer the following questions honestly:

1. What did you do yesterday to prove you are a real estate investor? Phone calls? Offers? Drive neighborhoods? Letters? Craigslist.com? Backpage.com? Ebay?
2. What did you do last week to prove you are a real estate investor?
3. What did you do last month to prove you are a real estate investor?

The second step is to analyze your own actions and ask whether those actions show commitment.

The bottom line is that if you are not taking action on a daily/weekly/monthly basis then can you really expect six figure results? Of course not! Action equals results, and cash.

Author: Gerald Romine

The short answer is YES! You can, and should, borrow money to invest in real estate. However, let me clarify. Investing is where you have a realistic plan to make a strong return on your investment. The return is not based on appreciation of the property. It must provide a return on investment after allowing for costs, expenses, and an allowance for things that might go wrong.

When borrowing money to invest, here are 3 simple rules to follow:

1. If you had the cash, would you loan someone else the money you’re asking to borrow against the same property? If the answer is, “No,” then you don’t have a great investment that you are confident in. Move on.
2. Does the risk justify the reward? Are you making enough money to make it worth it, or are you getting involved because you want to be “in” real estate? The only reason for a business is profit. If there is not enough profit, move on to another deal.
3. Is this a long term investment? If the answer is, “Yes,” then the next question becomes, “How much money are you making monthly?” If you’re not making money monthly, then you are speculating (hoping, not investing) for future profits.

Certainly there are exceptions to these rules depending on your financial position and your investing goals. However, many novice investors get sucked into buying properties. They believe, mistakenly, that real estate always goes up in value. They hope that history will repeat itself and they will become rich in the future from their property.

Smart and profitable real estate investors base investment decisions on instant profitability. You can’t go broke when you are making a profit from the beginning.

Author: Gerald Romine

Are you tired of paying too much for homes with conventional financing?

Would you like a simple formula? How about a formula that 95% of real estate investors do not know, understand or use? A formula that will guide you to your own real estate riches?

Most real estate investors fail in business for a simple reason. Overcoming this common reason can easily turn a starving investor into a financial success. The difference is in understanding and learning:

The 4 F’s of Real Estate Investing

1. Find them
2. Fund them
3. Fix them
4. Flip them (or keep them)

Now the test: your answer to one simple question will tell me a lot about your current real estate investing knowledge.

Question: “Which F is the most difficult?”

1) The Common Answer: Beginners believe funding properties is the hardest part of the process. Beginners struggle to understand the money they want is readily available from others. When you find a great deal, there are people who will make loans secured by real estate. They agree that with your payments they get a set amount of profit, but if you don’t make the payments they take property and make an even larger profit.

2) The Correct Answer: Experienced investors focus their efforts on finding deals. Why? Because if you do not have the right deal then there is nothing to fund, fix, or flip. Spend your time on “Finding.”

The Magic Formula

First, focus 90% of your effort to finding deals.
Then invest 10% of your effort in funding, fixing or flipping after the deal(s).

Ask yourself, “Have you been putting in 90% of your efforts on finding deals?” If the answer is “No,” CHANGE IT.

Gerald Romine

A mechanic was busy removing a cylinder head from the motor of a Harley-Davidson motorcycle when a well-known heart surgeon entered his shop.

The surgeon was waiting for the service manager to take a look at his bike when the mechanic shouted across the garage, “Hey, doc, can I ask you a question?”

The surgeon, a bit surprised, walked over. The mechanic straightened up, wiped his hands on a rag and asked, “Doc, look at this engine. I open its heart, take valves out, fix ‘em, put ‘em back in, and when I finish, it works just like new. So why do I get such a small salary and you get the really big bucks, when you and I are doing basically the same work?”

The surgeon smiled, leaned over, and whispered to the mechanic, “Try doing it with the engine running.”

What does this have to do with real estate investors?

Many investors approach real estate deals like the mechanic. They try to solve problems with textbook answers and forget they are dealing with people.

As an example, assume your property meets my buying criteria. I’ll pay cash, or the only other way I can buy your house is to take over the payments.

While both options may be true and are good things to say when talking to the seller, investors should take the surgeon’s approach and realize they are working with real, live people that want (and need) to be heard and listened to.

Real estate is a great business that can be financially rewarding, just remember to put people first and you’ll benefit in more ways than you can imagine. If your only focus is the money, people will “sense” this and many will not want to work with you or sell you their home.

Author: Gerald Romine

Many of you know that during the 80’s and 90’s I was a licensed real estate agent and broker who owned a national franchise office. But most real estate agents and investors are surprised when I tell them that once I “saw the light” as a real estate investor, I surrendered my broker’s license because I no longer wanted to work for tips when I could make “real money” as an investor.

Many real estate investors ask:

Should a real estate investor work with Realtors?

Answer: NO!

There are 3 main reasons to avoid using a Realtor if you want to become a profitable real estate investor.

1. Realtors cannot get you a deal dramatically below market value. Realtors list properties near the top price range for that particular market. In addition, once a property is listed, it is available to every investor in the market, and competition for the property will drive up the price. This is not where you go looking for a good deal.
2. Realtors poison your dreams. Successful real estate investors know how to buy property significantly below market value. Most Realtors are completely ignorant of how we function as investors. Realtors are not trained or experienced in finding properties at wholesale prices. An inexperienced real estate investor could be at a disadvantage by listening to a Realtor’s advice and perspective. I can see the so-called “professional” Realtor laughing at them for trying to find wholesale deals, and then telling them they know of a “real deal” where they can get a $100,000 house for a steal…only $95,000! To the inexperienced investor, this Realtor “help” can be career-ending.
3. Investors are better at selling houses. Realtors like to base the sales price on the average price of homes in the area. By comparison, experienced real estate investors understand that if homes in the area are selling for $250,000, and they have just rehabbed a similar home, it is worth more than $250,000 because their house is much nicer than the comparable sales. Plus,most Realtors base sales prices on MLS sales that do not factor in properties sold by owner/investor. They could be missing the highest comparable sales available and cost you tens of thousands in lost profits!

The 3 reasons above illustrate why I am against real estate investors using Realtors to help them buy property… and that’s coming from a former real estate broker!

However, as with most rules, there are exceptions. Let me explain and define the times when I do think using a Realtor is the good business decision.

When should an investor use a Realtor?

1. In a SOFT real estate market. When markets are extremely soft a great Realtor can save large amounts of time combing through MLS looking for the best deals.

2. In a HOT real estate market. A credible Realtor and MLS listing can help create and manage multiple offers. A real estate investor may earn a high net profit even after paying the broker/agent commissions.

   Example: I had just completed rehabbing a house in a lower income area that base on comparable sales had a top value of $125,000. The market was hot and buyers were in a feeding frenzy. Given the upward neighborhood price movement and quantity of buyers, we listed the property at $135,000. We soon had offers coming in from $135,000 to $151,000! And this is for a house worth only $125,000!

3. The other time to use a Realtor is any time they bring you a great deal. Realtors do occasionally find or hear about incredible property deals.

I understand this article may not be well received by Realtors, but then again, I’m known for telling people what they need to hear, not what they want to hear!

If you have a Realtor or broker’s license and want to start real estate investing, be sure to check all of the state’s disclosure and licensing laws. While there are ways to use the license to your advantage, you should realize having a license can kill your marketing when you follow all of the disclosure laws (i.e. - putting “Realtor” or “agent” on an ‘I Buy Houses CASH’ ad will kill your response rate).

Happy Investing!

Author: Gerald Romine

It amazes me how many people spend countless hours finding a deal, fixing it up, and then when they go to sell the house, they become dumber than a box of rocks.

What is the highest paid profession in the world? Sales. No surprise there. If you are selling a house, what profession are you in? Sales. Now, the big question…How much sales training have you had? For most people the answer is, “Little to none.” For those that have had some training, often the training was inadequate (if you want a great course on sales and negotiation get the book by Roger Dawson, “The Secrets of Power Negotiations”). But, right now let’s learn how to make the most of face-to-face negotiations with 4 simple techniques.

Example: You own a home and want to sell it for $X. You’re meeting with a prospective buyer. Inevitably the question of price will come up and there are several things you can do to maximize your position and your ultimate gain.

4 Magic Negotiation Techniques Anyone Can Master

1. The Cringe. This is my personal favorite. The buyer has just made you an offer, now the ball is in your court. Imagine that you just took a big gulp of sour milk and it would be socially unacceptable to spit it out. Your body is repulsed by the distinct sour taste, but you have to swallow the sour milk. Your face contorts, your stomach tightens, your eyes squint and your entire body stiffens and then you swallow the pungent milk and then you make a muffled grunt…”oughhh.”Now, that’s “the cringe” and after the making the muffled grunt you remain quiet.The silence will be awkward, and the buyer will sense your displeasure with their offer. With only one grunt and non-verbal communication you’ve put yourself in a position to negotiate upward for the property. The buyer will likely volunteer a higher price if you give them time.
2. The home is probably worth more than I’m asking: After the buyer has made you an offer, you reply, “The home is probably worth more than I’m asking.” This simple sentence helps establish the value of the home and implies to the buyer that the price is already at a discount and a great deal. It’s a polite way of holding your ground and keeping the price up.
3. Blame your partner: After the buyer has made you an offer, you reply, “I don’t think there is any way my partner (wife, company, brother, dog, etc.) would accept that.” When a buyer wants a house, they are looking for reassurance that things can be worked out. By placing the decision on your partner you are in a much better negotiating position. This is a version of “good cop, bad cop.” You can further add, “I might be able to get them to consider $X, would you like me to try?”Does this technique really work? Well, have you ever been to a car dealer to buy a car? It’s no accident that the car salesman has to go to his boss with your offer. Several times he’ll come back with “I tried, but we just can’t make that work. If you could offer $X I think I could get the finance manager to approve it.” This back and forth process drives the price up and maximizes their gains. They know the game so well that they won’t let you sit with the decision maker because that would cost them money! Now you know this trick.
4. Split The Difference. Many buyers have to make an initial offer so they can feel they have negotiated. If all else fails, and you are willing, you should offer to split the difference between their bid and yours, or the asking price. Often this will be what they EXPECTED and you’ll be able to complete the sale. But, splitting the difference is the last choice. You give away profits you might be able to capture using one of the other negotiating techniques.

There is no doubt that saying a few words, picking the right strategy, or using the right expression can be worth thousands of dollars to you per deal. Imagine the cumulative effect over your lifetime? These techniques and many others are covered in my system, KickAssWholesaling, a complete system for wholesaling houses, and Real Estate Profit Pro, the ultimate system to automate homes-buying in less than 5 minutes. Check them out at www.kickassrealestate.com.

One final lesson. Did you notice that in some places I used the word “home” and in other places the word “house”? This is no accident and an example of smart selling technique. Whenever I’m buying, it’s called a “house” and when selling, it’s always a “home.” Why? Do you live in a “house” or “home”? Which has a stronger emotion attached to it?

So when I’m buying it’s a “house,” because I don’t want the seller hanging on their “home.” I want them to disassociate with the building and calling it a “house” best serves that purpose. When selling, I want the buyer to fall in love with their new “home,” a place where beautiful memories are made. And, in this case a “house” just doesn’t cut it.

Author: Gerald Romine

Back in 1992 when I started real estate full time, I was flying by the seat of my pants. I had read a few books and thought I understood real estate investing, but looking back I realize much of my success was based on blind luck.
Now, I understand the importance of asking the right questions. I will share one of the most important questions you can ask any seller. It’s great because it cuts through all the BS and forces them to respond. Please, use this question every time you are talking with a seller.

“If I were to pay you all cash and close quickly, what is the least you would accept?”

When talking with a seller it’s important to find out what the seller wants and after building some rapport with them, this is THE Question to ask.

After asking the question, your silence is critical to force the potential seller to answer. Some sellers know their bottom line, and quickly share it, while others may be completely shocked at your question and/or may not know the answer themselves.

If you don’t ask the seller what they want, how could you possibly know what to give them?

Author: Gerald Romine

Last night I went down to Buffalo Wild Wings to watch the UFC fights. I’m a big fan of mixed martial arts and was hoping George St. Pierre would knock out the cocky Matt Serra.

Then out of th blue a friend of mine who’s a real mover and shaker in the Phoenix real estate market joins our table. In no time we’re talking real estate and here’s the news I want to share.

Cody is killing it in this so called down market. Right now he’s got 60 short sales going at one time! That’s a crazy number to be working and the reason Cody can pull it off is because he understands the market, the lenders, and how to work the numbers.

Cody’s buying properties at 50 cents on the dollar and recently took a HEALTHY payday to allow somebody to take a property over subject to.

The point I want everyone to see is the real estate market is a phenomenal opportunity for real estate investors that take action. The market is not good or bad…. it’s what you do with the opportunity!

And speaking of opportunities in the last matchup St. Pierre wasted his and was KO’d by Matt Serra. St. Peirre took a beating and learned a lesson because on this night he turned the tables dominating
Serra until the referee stopped the fight in the second round before Serra’s ribs were broken from some brutal knees!

George St. Pierre took advantage of his opportunity and took home the championship and a very nice payday. A few months back he was knocked out!

Many real estate investors are in the same boat. Awhile back they may have made mistakes and been “knocked out” by the real estate market. But today is a new day and hopefully you are taking advantage of your opportunity. The real estate market is right. The time is now. The question is if you are going to fight?

Author: Gerald Romine

Real estate investing is changing in the United States and throughout the world. A few excerpts from a recent USA Today article:

“10 years ago, eBay changed the world, sort of by accident.”

What’s next?

Where does eBay go from here? (Meg) Whitman shifts into her presentation persona. First, she says, eBay will keep expanding worldwide. Today, in about 15% of transactions, the buyer and seller are in different countries. “I’d be surprised if that’s not 50% to 60% 10 years from now,” Whitman says.

“And think about what that means for eBay and the world - about connecting the Third World with the industrialized world.”

EBay is one massive online garage sale and the news that in about 15% of the transactions buyers and sellers are in different countries is unbelievable. Simply amazing!

So what does this have to do with real estate? EVERYTHING, and that’s the point. Right now the world and how we do business is radically changing before our very eyes. Yet most people do not see the changes. They choose to only see the things directly in front of them.

While the U.S. dollar is losing value, the Euro and other currencies are becoming stronger. That means that U.S. real estate becomes an attractive bargain for European citizens. Combine that with the statistic that 15% of eBay buyers and sellers are in different countries and you might see a different future for American real estate.

We have seen this before. Remember when the Japanese yen was strong, and the “Japanese were buying everything” because U.S. Investments were seen as a steal? We’re likely to see an influx of foreign investors into American real estate and it will start with larger commercial properties and trickle down into residential. Actually, we are seeing that this movement is already in full swing!

Another benefit of a weak U.S. dollar is the increase in tourism. When the currency exchange favors foreigners, they are able to buy goods and services at a discount and this encourages travel and spending. For those in real estate, this translates to increased property values in tourist hotspots. For example, renting flats (condos used as vacation rentals) has long been popular in many parts of Europe and the world and could become common in many popular U.S. tourist locations.

Although I keep my eye on the big picture, I actually run my real estate business much like a fisherman approaches fishing:

“The ocean has a high tide and low tide, but all I really care about is whether the fish are biting.”

-Gerald Romine

The same thought translated to real estate means I take what the market gives me. Keep your investing simple and the profits will follow.

Author: Gerald Romine

• Email Subscription
  Subscribe to Kick Ass Real Estate Blog by Gerald Romine by Email
• Categories
  • foreclosure
  • Hiking
  • Real Estate Investing
• Recommended Resources
  • “Pre” Foreclosure Deals
  • How To Invest
  • Learn How To Use Video On The Web
  • Nationwide Real Estate Comps
  • Short Sales
• UREI Software

  

  State-of-the-art software is the first and only fully programmable real estate investing system that you can use to build, manage, analyze, automate, and profitize your real estate business!