Email that just went out
Hey Fellow Investor,
At last Friday’s Movers and Shakers:
10/19 – 1. Tonight we cover Landlords – When do you draw the line on Tenants that are getting behind? What are the 18 breeds of dogs that your Insurance company considers unacceptable?
It was the Consensus that when a Tenant is behind in rent for more than 30 days, you serve them with a 14 Day Notice to Quit. (This is the First step in the Eviction Process. The invaluable Manual – “A Tenants Guide to Legal Tactics” outlines the entire process and is available at our meetings.) As my friend Max says: “You can slow it down but you can’t speed it up. Serve ASAP, Slow as you feel necessary!”
Are any of these Dog Breeds residing in your property? Akita, Alaskan Malamute, American Staffordshire Terrier, Bullmastiff, Chow, Dalamation, Doberman Pinscher, Eskimo Spitz, German Shepherd, Giant Schnauzer, Great Dane, Husky, Pit Bull, Portuguese Fila, Presa Canario, Rottweiler, Saint Bernard and Wolf Hybrid. According to a local Insurance Broker, Arbella, your “Dog Exposure” coverage on your home/fire insurance is UNACCEPTABLE with those Breeds.
10/19 – 2. Tonight we also cover Investors – How do you get “end-buyers” (the retail purchasers that get you the highest return) in the door, not just “Kickin’ curb”? And qualifying them so you’re not “stood-up at the altar”?
We did not spend much time on Marketing but did cover sources of deals and the amount of rehab folks have an appetite for. Investors have been marketing to niches. For instance “No-Equity”, “Much Needed Repairs”, Attorneys in specific areas of Law” in all fairness to the Movers and Shakers who attended, there was a lot of inside information and self developed “Trade Secrets” which they gladly shared. I’m willing to introduce you to the folks successful in thier niche marketing but I’m reluctant to share their Secrets.
It’s interesting to see how much Beginning and Intermediate Real Estate Investors will try to take on. For instance we discussed at length a gut rehab and a knock-down. It’s risky enough to borrow money and have the collateral reduced but imagine if your own money was tied to that deal??
As an example You purchase a property for $250,000. The Tax Assessment indicates the land is worth $100,000. and the improvements (house) is worth $200,000. Next you knock-down the house and start to build.
What’s it worth now? What are you into it for? How much more is needed? What’s your upside?
You’ve also got more “mouths to feed”. The number of subcontractors and inspectors, who can increase your time and money to finish, has increased.
What’s my point? Knock-downs and gut-rehabs are strictly for advanced investors with deep-pockets or backing with deep-pockets. Mainly because the collateral is temporarily reduced and if you’re caught in a cash-call or the necessity to liquidate, you may lose money.
There’s a huge number of opportunities for Investors to Buy-Fixup-Sell or Rent property and make a Profit (as shown in my Course “How to Become a Real Estate Investor in 12 Easy Lessons” by Mike Hurney). Basically we use your strengths and develop anything you need help with.
It’s a lot simpler and safer to Buy something that starts with improving the essentials (Paint, Landscape, Kitchens and Baths). This is where we add value the day we close (purchase the property) and every day until we sell. You can aim for the Stars and hit the Moon as they say. Which I interpret as You can aim to do a Deal a month and do two Flips (Sell an Option to Buy) or two Buy-Fixup-Sell or Rents a year. Then another, and another.
How’d I get into all that? Anyway, we can speak at the meetings, coffee, lunch whatever and I’ll even let you have a Complimentary Lesson #1 when you’re ready.
10/30/12 – Yes I mailed 400 postcards (one below) last night 10/24 and we’ve got an important meeting next Tuesday 10/30/12 6:30 PM. See you there!
Mike Hurney, Director, www.MassRealEstate.net PO Box 307, Marblehead, MA 01945 781-639-8616 Office/Fax
Investors, Landlords, Beginners, Pros – www.MassRealEstate.net
**Attorney Rick – Partnerships – When do you need an Agreement? How to set it up, Legally! How to handle Disagreements should they arise? You can easily have the Perfect Profitable Partnership!
**By Federal mandate Utilities have a percent of the money you’ve spent on Energy and only give it back in Energy reduction programs for homeowners or Tenants when you ask for it. – Insulate for pennies on the dollar? Best windows at cost? Efficient heating equipment?
How to cut your heating bill in half, this Winter!
**Appliance repair manager Paul – Q and A. Which new Appliances last longer? Energy $tar? Fix or Replace it?
Mortgages Purchases/Refinancing -781-405-1845 [email protected] NMLS#43341
See you next Tuesday! Mike. October 30, 2012 6:30 pm At the SpringHill Suites Hotel, 43 Newbury Street, Peabody, MA 01960 978-535-5000 FREE to members, only $25 for guests. $99/year ($8.25/meeting) for membership!