markets

5 Signs Of A Real Estate Market

January 22, 2020 by Team RE Mentor Leave a Comment

1. Local government funding

A hefty amount of dollars spent by the local government on local development is a sure sign of the revitalization and further development of an area which means that real estate is about to take off in terms of supply and demand.

2. A jump in commercial funding

The relocation of large businesses, the opening up of offices and an influx of new business in an area is also a clear indication that domestic real estate will take off as all those workers, office personnel and managers will need somewhere to live.

3. Expansion of local transportation

An upgrade of the local transport grid, local transport network and or building of new access routes is an indication of the revitalization of an area.

4. A rise in the local population

An influx of new visitors, a rise in the number of 'out of towners' and a jump in the people who normally live in an area is a sign that the particular market is about to become a real estate hot spot.

5. A rise in investment projects

Any jump in investment projects or any large-scale investment in an area, even if it has nothing to do with real estate is one of the signals that the area is about to become a hotbed of real estate activity and you had better get in there fast.

Want to learn more about real estate markets? Go here.

14 STEPS TO ACQUIRING A PROPERTY

October 23, 2019 by Team RE Mentor 1 Comment

These steps will help you save time and eliminate risk with your investments:

Decide what size buildings you want to start investing in.
Decide where you want to invest.
Determine what types of multi-family properties you’ll buy.
Put your team in place.
Market to get your deal.
Analyze the deals.
Create the offer or letter of intent.
Negotiate the deal.
Create and sign the purchase-and-sale agreement.
Do your due diligence.
Renegotiate the deal.
Start your financing.
Choose a management company.
Close the deal.

Let’s go through each step.

Convince the Broker You’re Serious

October 4, 2019 by Team RE Mentor 1 Comment

Are you a broker or an agent?

If they’re an agent, then ask them for a little information about their broker. An agent reports to a broker so you need to know about them.

What kind of education have you had?

College or professional in-service trainings are good.

What kind of experience have you had?

You want to see experience in the local area as well as in the property type you are seeking.

What professional associations do you belong to?

These could be national or local associations. Check out the various association websites to see if the members follow any stated Ethical Standards.

What local meetings do you attend on a regular basis?

This will give you an idea of where they network. Those networking opportunities might be good for you as well.

Where are the popular areas in the city and why?

You want to know if the city is investing in certain areas.

What type of properties are you seeing for sale?

You want them to match what you are looking for.

Anyone you know of that’s thinking of selling? Anything coming up on the market?

This will give you an idea of how extensive their network is.

What types of properties does their firm seek out?

Do they match your needs or present new opportunities that you have not considered?

Where are you seeing CAP rates and Cash on Cash Returns?

The higher the better.

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Recession Without A Plan Is A Fast Way To Go Broke

August 21, 2019 by Team RE Mentor Leave a Comment

The fastest way to get from point “A” to point “B” is to have a plan. The fastest way to earn one million dollars or more in real estate investing is to have a plan. The fastest way to go broke…the fastest way to lose a lot of money…the fastest way to be forced out of the investing business is not to plan. Especially during a looming RECESSION … yes, we said it.

If you don’t make a plan now, this new recession will rip you out of your investing interests during 2020.

DON’T SAY RECESSION

Just don’t say “recession” around any economists, politicians, or your creditors. We also hear you shouldn’t say the word “recession” in front of your bathroom mirror 3 times in the dark.

Many successful investors found themselves working very hard in their investing business but not really getting anywhere. Only after they started sitting down once a day to plan their activities did they start making real progress in their investing business.

Nothing substantial in life is completed without some sort of plan. When ships cross the ocean they “chart a course.” What they are doing is planning. Across all of our oceans are buoys, those red, floating devices. If you’ve ever been in a harbor or seen a harbor scene in a movie, you’ve seen a buoy. Some of them have bells attached so you don’t hit them at night.

“A highly leveraged business sector could amplify any economic downturn as companies are forced to lay off workers…” the Federal Reserve chair, Jerome Powell, said in a May speech.

“RED, RIGHT, RETURNING”

Buoys are the ocean’s traffic signals. They are all numbered. And there is a universal ocean law, followed by all captains whenever they return to a harbor. It’s the three R’s: “Red, Right, Returning”. Any captain will tell you when you are returning to a harbor, the Red buoys should be on your Right. This the way you plan your entry.

When you are going from point “A” to point “B” across the ocean, you chart out a series of buoys that you will set your “road map” for your journey. Since they are numbered, you know when you are at the right buoy. A simple journey from Falmouth, MA, to Martha’s Vineyard, though only seven miles, may require that you chart the passing of 15 buoys. It’s like playing connect-the-dots across the ocean. As you go from buoy to buoy, you successfully navigate your journey to your destination.

WITHOUT A RUDDER

Plan your real estate investing with the same philosophy. To get from where you are now to one million dollars, you have to plan to perform certain activities and meet certain milestones (buoys) to connect the dots, to get to your goal.

Without your goal constantly in mind, you will drift aimlessly and unprofitably, like a sailboat without a rudder, until you begin to plan properly.

After you start planning consistently, you will realize that any time your business starts getting chaotic, you’ll pause and realize that you’ve gotten away from your planning.

RIDING OUT THE STORM

One way to weather the storm during this type of chaos is to have multi-family rental properties that are going to provide a steady stream of income during the turbulence of the markets.

The fastest way to get order back into your business is to begin planning again. You did make rental properties part of your plan, right?

BUILDING HABITS INTO A BUSINESS PLAN

If your business or life is chaotic now, start planning. When you begin the planning process, you won’t suddenly wake up tomorrow and start planning every day for the rest of your life. Certainly, if you start shoring up for a recession today, your plan can become actions, and when this ugly beast rears its head — it is already slain.

But alas, we are all human and we begin by planning a little, reaping the rewards, getting away from it, becoming chaotic again, then going back and planning a little more. It’s just human nature.

However, each time you get away from planning and then go back again, you are taking a giant subconscious leap forward to successfully embedding planning into your business and your life.

Great plans take habitual thinking, strategy, and execution. Start your planning habit today. So, you won’t wake up to a financial nightmare. Instead, you can rest easy knowing you have prepared for eventualities.

FYI—We have a FREE videoturial that teaches the critical skill of recognizing when the market phase is changing so you change your investment strategy so you continue to do well investing (this is the number one mistake investors make)