A Focused Acquisition Strategy Can Earn Higher Investment Returns (Podcast)

A Focused Acquisition Strategy Can Earn Higher Investment Returns (Podcast)

Good news! I’ve been featured on a Podcast by the

Invest Florida Show!

 

Click below to listen!

Beginning real estate investors often get caught up in the appeal of high returns. However, the focus on high investment returns can come at the expense of a sustainable exit strategy.

A focused acquisition strategy can mean the difference between a profitable investment and a failed one.

It is important to consider a seller’s circumstances when making a potential investment deal.

 

By tailoring a deal to fit individual circumstances you have a higher tendency to close.

By structuring multiple deals, you can easily see what acquisition strategy works best for your investment goals.

Click here to listen to the podcast!

Practice Makes  Perfect? Well, Not Exactly…

Practice Makes Perfect? Well, Not Exactly…

Practice Makes Perfect? Well, Not Exactly…

When I first began investing in the early 1980’s I did what I thought were all the right things. I read books, listened to tapes and gurus, but for some reason even with all that education behind me I found that I didn’t close as many deals as I thought I should have. Have you ever felt that way?

As I think back, I learned many important lessons in my life, but some of the most important ones came from professional sports. Back in 1983 I had the opportunity to attend my first professional golf tournament, the Doral Open in Miami, Florida. I was the guest of AT&T, one of our corporate vendors, (yes, friends, I had a real job back then) and I have to say, I was impressed.

They did it all first class; a hospitality tent, gifts for all the guests, cocktails and gourmet food. I had never experienced anything like it! It was all a bit intimidating for a junior executive just starting out.

P110905sc-0250dh President Bush presents PGA champion Jack Nicklaus with the Presidential Medal of Freedom Wednesday, Nov. 9, 2005, during ceremonies at the White House. White House photo by Shealah Craighead

During the second day at the tournament I came face to face with one of my all time idols, the Golden Bear; none other than Jack Nicklaus. I was nearly speechless but at least had the presence of mind to wave my pairing sheet under his nose for an autograph, which he graciously provided.

So how does any of this relate to real estate investing or closing more deals, you ask? It doesn’t, but here’s what does, the next morning I arrived at the course early, 6:30 am and there were at least 10 pros on the practice tee and they were hitting ball after ball after ball. By 7:00 am there were 20.

Over on the practice green there were another dozen or so professionals putting ball after ball after ball. That afternoon after they finished, many headed right back to the practice tee or the practice green and again they would strike ball after ball.

Jack Nicklaus…Ball After Ball

These were top professionals, the best in world, yet they practiced before the tee off and again after the round. They didn’t show up unprepared when the money was on the line. They were as prepared as they could possibly be. Can you make the same claim when you are talking with a seller, a buyer, a realtor, banker or contractor?

Are you always ready for the big game?

What I have learned that helps close more transactions than anything else is to be prepared for the big deal. When that motivated seller calls and needs to sell quickly, do you have the ability to analyze the opportunity quickly and correctly then get it closed? Do you see more than one way to make the deal? Can you see multiple exit strategies?

Perfect Practice is the Key

We’ve all heard the old expression, practice makes perfect but it is untrue. Unfortunately just plain old practice won’t help you get better. However, perfect practice does make perfect! What I failed to mention about many of the golfers on the course that day were that they were there with their coaches. They had objective feedback to help them make those subtle swing changes that might serve them well next time a $500,000 prize is on the line.

The goal of this blog is to provide you tools and ideas to help you achieve that “perfect” practice ability. If you do it wrong and continue to practice it the same way day after day you’ll just get better at doing it wrong and keep a low batting average. But if you start developing and sharpening your skills the right way, you’ll be hitting them out of the park in no time!

As a good southern buddy of mine puts it, “even a blind squirrel finds an acorn every now and then.” Don’t be a blind squirrel, practice, study, learn and grow! You’ll find enough acorns to grow a forest!

To Your Success,

Augie

5 Key Steps To A Becoming a Successful Real Estate Investor

5 Key Steps To A Becoming a Successful Real Estate Investor

5 Key Steps To Becoming A Successful Real Estate Investor

Success in Real Estate is not based on luck, family connections, or natural talent. There are no genetic or biological factors that will guarantee success in this business. BUT! You CAN be successful. Here’s the good news:

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What Are You Already Good At And How Did You Get That Way?

We all grow and profit as investors in much the same way we would become successful in any other industry. When leading skill development workshops on Negotiating Skills, Deal Structuring, Creative Financing or any of our Investor Quick Start programs I often ask the attendees to think about something they have been good at or had success with in the past, be it a talent like playing the guitar, a sport or a hobby.

What made you good? What separated you from others?

The responses are always similar. They understand the specifics of what they were good at, they were focused, had a good plan, executed it, surrounded themselves with like-minded individuals who shared a similar passion, and were coached by a successful, experienced person.

As a youngster, I learned to play the trumpet. I took lessons in school with all the other kids. What helped me to excel and eventually play professionally were the hour and a half weekly private lessons with a professional musician. He helped me see the music differently; develop practice drills and a plan for effective practice.

Enjoying a successful business in Real Estate is no different. Virtually every successful, wealthy agent, broker and investor I know became wealthy because they took the time to educate themselves on different options and opportunities, have laser sharp focus, execute a well thought out marketing plan, surround themselves with a strong, experienced team, and have a coach or mentor.

Feel free to use this image, just link to www.SeniorLiving.Org This microstock required lots of post processing to get the blue tint. I also needed a bounce card to get more detail in the glasses.

1. Understanding Requires Core Knowledge

What is going on with the market now? What will the market be like a year from now?

In order to have a long, profitable career, you will need to be familiar with multiple ways to purchase properties and multiple ways to sell.

The strategy you utilize in a sellers’ market will most likely be different than the strategy you utilize in a buyer’s market. If you aren’t flexible and prepared to adapt to the changing market conditions, then you will be left behind. When the market changed from red-hot to ice-cold a few years ago, many agents and investors stubbornly kept the same marketing plan. They simply failed to respond to new conditions. After all, it had worked well in the past, so why change? Many of those folks are no longer in the business.

Rehabbers who failed to adapt have since lost their jobs had to find new careers. Recognizing when to focus on short sales, lease options, subject to, selling with owner financing, or buy and hold strategies is important.  Mastering the different strategies required to adapt to a changing market will allow you to maximize your profits.

2. Possessing Laser Sharp Focus Is The Secret

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Mastery of anything has a number of requirements but none is more important than one’s ability to focus. When are you at your professional best? It’s when you know exactly what you want and exactly what you are required to do in order to achieve your goal.

When do most mistakes occur? When uncertainty exists. Uncertainty is the opposite of focus. When you are focused, you complete tasks. People who lack focus tend to procrastinate and/or make unnecessary and sometimes costly mistakes.

There is no doubt that knowledge, or lack thereof, plays an important role in focus, as does our next step; having a detailed plan.

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3. Your Marketing Plan

You can have all the knowledge necessary to close any real estate transaction, but if no one knows what you do, then how will you close any deals? If you are not generating leads and connecting with people, you will not have any opportunities for transactions.

So how do you attract motivate sellers? A good marketing plan will identify a number of different strategies. I recommend a minimum of 3.

Note – if 3 is good more are better!

When planning out your marketing strategies remember to budget your time as well as the financial requirements. It does you no good to have a goal mailing 500 letters a week or distributing 1000 flyers if you don’t budget time for this activity as well.

So what works best for attracting motivated sellers? When done properly, a targeted direct mail campaign is the most successful form of advertising. Incorrectly implemented is can also be a great waste of money. It is important that you work with an experienced company that has a solid track record and the right mailing list.

If you have no marketing dollars then you have to make marketing time to spread the word. Whether it is door knocking, gum-flapping or handing out business cards or flyers in front of a supermarket (I don’t recommend this) you must get the word out! Sometimes other people can help with this.

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4. Build Your Dream Team

We’ve all heard the expression, “No man is an island.” It is true and you cannot do this business alone! Even if you are an extremely capable person that doesn’t require assistance from anyone else to buy, fix and a house, you will still require the services of another contractor, a lender, a title agent and attorney, CPA or other professional.

Why do you need all this help? What would you do if while you’re working on a project and another great deal falls in your lap? Leveraging others allows you to focus on your business and build your wealth faster. The assistance of others will lead to more transactions and more profits.

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5. Leverage a Coach or Mentor

Think of one well known, highly successful person who is at the top of their field. It doesn’t matter if they are an athlete, actor, business tycoon or famous personality, they have one thing in common: a coach.

Coaches have experience in areas that you do not, can guide you, help you avoid major blunders, and drive you to do more than you ever thought possible.

It doesn’t matter how many books you’ve read or cds you’ve listened to; your first few deals will throw something at you that you’ve not seen before or even anticipated. When this unexpected and sometimes frightening situation occurs, it’s good to have someone who’s been through these situations before guiding you through the transaction.

To summarize, while virtually anyone can have success in the real estate business, not everyone will have success. If you seriously wish to be wealthy, then do what other wealthy real estate professionals do. They commit themselves to being life-long learners and never stop expanding their knowledge base.Screen Shot 2016-03-04 at 2.26.32 PM

Successful investors are extremely focused; they plan and execute diligently. They surround themselves with other successful professionals, and are coached by someone who will help them continually achieve more and do it in less time.

We are now accepting applications for our new and improved 12 month Personal Action Coaching and Transformation Program (PACT). This session starts in January! Learn more from our information and videos at www.PACTProsperity.com. To your success…..

How’s Your Investor Tool Box?

Transaction engineering for the real estate investor is akin to a carpenter having a well-equipped tool box or a surgeon having all the necessary operating instruments to get the job done correctly, safely, and in a way that everyone involved benefits. In our business it includes acquisition, property management, asset protection, negotiating, and tax planning to name a few. Today I want to introduce 10 no-money-down techniques (note: no-money-down means none of your money) that you can use alone or in a combination because no two real estate deals are alike.

I encourage you as you read this to think “how many techniques, how many tools, can I add to my tool belt that will allow me to deal with every opportunity that comes along?”

Don’t be a one trick pony…

Many investors use the same technique to do every deal that comes along – they are doomed. Only occasionally can they find an opportunity where they can employ the one technique they’ve learned.

When other investors don’t know what to do, you’ll be able to pull a different tool out of your tool belt, a different technique or a combination of techniques, and be successful when they weren’t. And when you master these techniques, you’ll recognize opportunities and complete transactions others can’t!

Build your buying machine…

To begin building your buying machine you need to learn how to generate leads, identify motivated sellers and then buy below market with deep discounts using cash, Private Money, or Hard Money.

Existing Financing is a powerful option…

Another favorite is to use existing financing by acquiring the property “Subject to.” With this technique, you take over the payments on existing debt without originating a new mortgage. Options and Lease Options are another pair of great techniques to control properties without ownership and still generate great profits.

Partnering with the seller…

Seller financing is my all time favorite. Sometimes it even presents an opportunity for creating a Deal After the Deal for increased profits. All of these transaction techniques can be structured as no money down. Consider Split Funding (some money now and some later); With or Without Payments; With or Without a Balloon Payment, or virtually any combination you can negotiate.

Now, sell it creatively…

When it comes to selling properties creativity is again your best strategy. How do you sell in a tough market? What do you do when the banks won’t lend? You become the bank! It is the most powerful way to build a fortune, while helping other people resolve their problems or achieve their dreams. And you won’t do it with adjustable rate mortgages or other exotic forms of financing that got this whole mess started.

Cash or cash flow? Your choice…

We can sell or lease properties to create either cash or cash flow. Lease Options and Rent to Own programs can help more people qualify for home ownership while reducing vacancies. Selling homes with Owner Financing, Wrap Around Mortgages, and Agreements for Deed can help you market properties to a broader buyer base than the traditional buyer who will get a traditional bank mortgage. These creative techniques also help you overcome seasoning issues and maximize cash flow.

Well there you have it, at least 10 creative ways to buy and another 5 ways to sell without using banks. All the traditional avenues remain available but doesn’t it make good sense to have alternatives that work in any market? Using these creative techniques in an ever-changing array of combinations can give you hundreds of possibilities.

If some of the terms above are unfamiliar to you, don’t worry, you’ll have an opportunity to learn about them and put them to good use during our Quick Start Workshop Series.

Join Us on June 16th at the Bohemian Hotel in Celebration from 9:00am – 5:00pm

Creating Your Real Estate Money Machine Workshop

“Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy.” Dale Carnegie

To your success…

Augie

5 Keys To Building A Successful Creative Real Estate Investing Business

Why are you interested in the creative real estate business? What is it you are trying to accomplish? These are two questions we all need to answer for ourselves. The bottom line is to recognize that you are in the property investment business and treat it that way. It requires planning, discipline, and execution or else it can be a dangerous and unproductive hobby.

We have been property investors long enough to experience ups and downs, a market boom and bust, changes in target markets, even changes in our own strategy. We have fine-tuned our investment strategies, focused on target markets, built our team and systems and have a pretty good handle on things. Honestly, this is a good start, but we still have to ask ourselves, “What does our business represent and deliver?”

To answer this last question we started by defining what we do and then identifying our goals. We buy properties below market value or with excellent terms in order to produce positive cash flow. We constantly seek to improve operations resulting in greater effectiveness, efficiency and value. We generate profits from rents or the sale of the property.

While this is what we do it isn’t the entire story. There are still more questions to answer. So what are our goals? How do we do what we do? What is the result? What is our real estate investment philosophy? What are the most important things that lead to our success? How will we continue to succeed long into the future? What are the fundamentals that we live by?

These are the kinds of questions that help us get closer to answering the grand question about what our creative real estate business stands for. Here is what we came up with:

1. Minimize risk and maximize annualized return – This is our goal. We first understand and minimize the risk. This includes making sure worst case scenarios are not so bad. We focus on maximizing annualized return instead of your one time return. A 10% return is great. A 5% return in one month is twice the annualized return as 15% in 6 months. That’s a big difference especially when you compound it over the long term.

2. Control and manage our success – We do not speculate, as the market is out of our control. We buy based on solid fundamentals. Appreciation is an extra bonus. The numbers must make sense on every investment.

3. Stick to our criteria – We stick to our criteria of properties with 50-70% LTV, strong cash flow and a decent area. We also seek to upgrade our portfolio by periodically purging weaker properties and replacing them with better performers.

4. Strong and multiple exit strategies – We only do deals with tremendous equity and tremendous cash flow, which results in strong multiple exit strategies. This supports our goal to minimize risk and maximize annualized return.

5. Make informed business decisions – We do not make decisions based on hype, emotion, excitement or by following what everyone else is doing. We justify our decisions with thorough due diligence, thereby making the best informed business decisions.

These 5 keys are the foundation of our business and they help position us to be successful in any market for as long as we are actively investing.

So, if I had to say what our creative real estate investing business represents and delivers in a few sentences it is this, We represent creative real estate investing done the right way. We control and manage our success, stick to our criteria, ensure strong multiple exit strategies and make informed decisions that allow us to achieve our goals of minimizing risk and maximizing annualized return.

Whether you are a beginner or an experienced professional, you should go through this exercise as well. Doing so could establish the foundation for a long and successful creative real estate investing career.

Learn how to jump-start your investing business at www.quickstart.pactprosperity.com

A Petition You Should Sign – Fix the E2 Visa Problem

Immigration Is an issue that is hotly debated in the US and rightly so, illegal immigrants cost our taxpayers billions of dollars cast a shadow over the whole issue of immigration.  There are many legal imigrants who come to the US and are a benefit to this country.  Only recently have some of the stranger aspects of US immigration policy come to my attention as the result of challenges some of my friends are facing.

In one case the parents of a 22 year old daughter who have green cards have to send their daughter back to England because she is too old to stay in the US and it could take two years for her to receive approval even though she has a job available to her which she desparately wants to accept, though her current 60 day visa does not permit her to work.

I have other friends who have legally entered the US and invested in businesses, created jobs and pay taxes who have to renew their E2 Visa’s every two years and risk being declined and having to leave the country on 30 days notice.  There is a petition that needs 5,000 signatures by October 25 in order to be considered by the White House.  Granted that is only a first step but a necessary one.  I invite you to participate in supporting a common sense solution to a rather de-humanizing problem. The language of the petition is below.

Allow E2 Treaty Investor Visa holders, who have brought investment and created jobs in the US, to apply for Green Cards

E2 Treaty Investor Visa holders are required to bring in foreign investment to buy or start up a US business and create jobs for US citizens. To our knowledge this is the only visa that asks for a substantial investment without leading to Green Cards. Legal permanent residency would give these small business owners more stability to expand their businesses, thus leading to even more jobs.

There have been 2 Bills in the last 2 Congresses which have not been successful and we are actively working to have a new Bill introduced in this Congress. However we realize that this E2 Visa is relatively unknown and hope that is the reason why reform has not taken place thus far.

We are LEGAL Immigrants, who are helping the US Economy at a difficult time.

We urge the White House to consider this.

Go to the link below and sign the petition, you’ll be glad you did.

Email this link to your friends and family: http://wh.gov/4TP

 

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