educational article

Learn to Sow Success

February 21, 2020 by Team RE Mentor Leave a Comment

This is an excerpt from a longer article Published: Wed, 17 Jul 2019

The law of the harvest is a lot more than that to a person who seeks success. In essence, the law says, “If you sow success, you shall reap success.”

Now that sounds silly, doesn’t it? If you already have success to sow, you don’t need to sow something to reap it.

If you had your first million dollars already, you wouldn’t need to do anything to earn it.

Luckily, we can sow success without actually having it first. You see, when you sow corn, you don’t sow whole ears, you just sow the seeds. And where do you get the seeds? From somebody who has already had a successful crop, that’s where. Success seeds work just like corn, and you’ve got a whole batch of good seeds right in front of you. Sow them to reap your success. That’s your first law of success.

Every law of success is a seed that will sprout until you have a whole field full of it. Then you can reap your harvest and continue the process, because now—guess what? You’ve got your own seeds, and you can help others plant their crops and replant your own for another yield.

When you’ve helped others to succeed in their lives and their ambitions, that is when you know you have truly succeeded in your life. Nothing is more satisfying than that feeling of success.

There is no finer vindication of your efforts than someone else succeeding with your help using your seeds of success, and that is what we strive for at RE Mentor.

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Moving For Love

February 14, 2020 by Team RE Mentor Leave a Comment

-Moving For Love-

Consumers are willing to move—even more than 500 miles–in order to be with a significant other. And the move tends to be worth it, according to a survey by Bellhops, a professional moving company. Bellhops analyzed nearly 2 million online conversations in the U.S. from June 2018 to March 2019 to find themes in moving. “Moving for love” was among those themes they found.

Sixty percent of the people whose conversations involved moving for love are now married or in a long-term relationship, the study showed. Women are more likely to move for love than men.

One-third of the people who moved for love did so more than once too. Fifty-seven percent said they’d do it again, if necessary too.

Americans are willing to move long distances to be with their significant others—44% moved 500 miles or more for love, the study found.

For those who move, the majority rent an apartment. But 25% are so confident in their choice that they skip renting and buy a home in their new location once they move, according to the survey.

Source: “The State of Moving,” Bellhops (2020)

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“The Nibble”

February 1, 2020 by Team RE Mentor Leave a Comment

Webster’s Dictionary would define the word “nibble” as “a small bite”, but to the person buying something, a nibble is a bit different. To a buyer, a nibble is a conscious or unconscious effort to get the seller to take less, and is usually the last effort to get just a little bit more taken off of the asking price. – Real Estate Club

The Nibble is a negotiating tactic.

Once you have the deal signed and finalized, if anything surfaces that you weren’t aware of prior to the signing of the contracts, ask the seller for a credit at closing. This information often surfaces after the property inspections, when you receive your Due Diligence verification back.

The most common Nibble

is actually the repair allowance we just spoke of. If there are additional repairs that you were not aware of prior to negotiating the sale of the property, ask the seller for a credit.

Other common Nibbles:

Maybe the rents aren’t as high as the seller stated, or perhaps some of the expenses are higher than you were told. Since your offer was based on the information given to you by the seller, you have the right to go back and get a credit for the difference.

Beware, though.

The reason it’s called a Nibble is that you’re asking for small items, one at a time, nibbling away at the deal. If the seller agrees to each, you may end up with quite a bit. You aren’t asking for anything unreasonable. You’re asking for an amount that may be an inconvenience, but not a deal-breaker.

Nibbles are done after the seller is tied to the deal.

The further along you are in the negotiating process before you request these credits, the more likely the seller will agree. The seller already has plans for his proceeds and just wants to close the deal.

Don’t get too greedy, though.

If you’ve got a good deal, take care in handling your Nibbles. Don’t lose the war because you wanted to win the battle.

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Investing in multiple cities?

January 24, 2020 by Team RE Mentor Leave a Comment

We’ll cover that in this video plus:

Yes, cash flow is good, but appreciation is great.
Investing in multiple cities.
What moves markets.
Why markets emerge.
Rapid appreciation.
Retaining equity.

See more? Click here —-> LEARN MORE <—-

3 Ways To Determine The Value Of An Apartment Building

December 6, 2019 by Team RE Mentor 1 Comment

There are three ways to determine the value of an apartment building:

Replacement Cost Approach
Sales Comparison Approach
Income Approach

Replacement Cost Approach

The Replacement Cost Approach determines value by calculating how much it would cost to replace an existing structure. This approach is very time consuming to complete as you must obtain pricing for all materials (from 2×4’s to outlet covers) used in the construction of a property and then calculate replacement cost. Because of this, it is very rarely used.

Sales Comparison Approach

For single-family houses and 2 – 6 unit apartment buildings, the most common approach to determining value is the Sales Comparison Approach. This approach compares similar properties that have sold within the last six months, within a certain geographical radius from the subject property (usually no more than two miles, the closer the better) to determine value.

If you’re buying a 3-family apartment and a similar one on the next block oversold for $220,000, then your property will be valued around that area.

The Income Approach

For six units and more, you would use the Income Approac h to determine the value of the property. This means that you would determine how much income the property is generating and determine its value based on that number.

There are several formulas that investors use to determine value, though one is more prevalent than others; that is the Cap Rate.

You’ll hear people talk about the “Cap Rate.” It’s what most investors use when comparing one property to another.

The Capitalization Rate is the rate at which the Net Operating Income (the income that is left over after all the expenses are taken out) repays the purchase price on an annual basis. Sounds technical, doesn’t it? Don’t let it scare you.

Cap Rate = Net Operating Income/Value (selling price)

Top 10 Features Of A Profitable Rental Property

November 14, 2019 by Team RE Mentor 1 Comment

Neighborhood: The quality of the neighborhood in which you buy will influence the types of tenants you get & vacancy rates.
Property Taxes: Property taxes are not uniform across an area and, as an investor planning to make money from rent, you want to be aware of how much you will be losing to them.
Schools: If you're dealing with family-sized accommodations, you need a consider the quality of local schools.
Crime: No one wants to live next door to the real-life Breaking Bad.
Job Market: Locations with growing employment opportunities tend to attract more people – meaning more tenants.
Amenities: Check the potential neighborhood for perks that attract renters.
Future Development: Will you be competing with future apartments? Or will the neighborhood lose or gain amenities with future developments?
Number of Listings and Vacancies: Too many vacancies in one area? That’s like neighborhood wentthe bad.
Rents: Rental income will be the bread-and-butter of your rental property, so you need to know what the average rent in the area is.
Natural Disasters: Insurance is a necessary evil, so how much do you need? Is your property in the flood zone, snow zone, or Apocalypse cone? (jk on that last one, don’t ask.)

Learn more or start your real estate investing journey today