real estate investing

Research “Comparables” Before Buying Real Estate In That Market

July 31, 2019 by Team RE Mentor Leave a Comment

With any type of investment or business, research is important. This will allow you to know what to expect and also have the ability to be able to distinguish a diamond in the rough by examining comparables.

Before you write an offer for any market, you're going to want to spend some time getting a feel for the market.

Doing this before you look at deals will allow you to move much more quickly when recognizing a potentially good deal as much of your due diligence has already been done. How can you know what a good deal is without research?

You will have little background on which to judge investment deals. Your market research can and should include most of the following information:

what rent is going for an area, who the large employers are, and what the smaller sub-markets are doing. What are home sales like in the area?

Where is job growth going to come from and what kind of jobs will these be? Where will new transportation be? What is the current rental market like? Asking all of these questions gives you an idea of the bigger picture and explains the economics of the area. Knowing the current situation along with where future trends lie will allow you to assess a deal for current viability along with future appreciation based upon the trends that you have researched.

Secondly, look at some comparables with in the area.

Taking time to study these will let you understand what the market is truly like. This will allow you to know prices within an area (as well as submarkets) and roughly what you can expect to pay if paying market price. This can help you quickly determine if a prospective deal is brought to you whether it is undervalued and whether you might be able to create forced appreciation very quickly.

Look at as many comparables as possible and most experts recommend around the last fifty.

This can allow you to see what has happened over a period of time and lessens the impact that outliers can have upon the data due to the larger data pool you are using.

Remember that you do not have to find all this information yourself. Use the services of an experienced broker. They are paid very well to help you succeed. You must make the broker feel comfortable knowing that you will work for him as much as he will work for you. The importance of using a broker is that here she is in this particular market every day. He or she should know what the hot areas are and should be able to bring you some potentially good deals. You are paying for the brokers’ expertise to do not be afraid to ask questions as you do your market research.

Hopefully this article on the importance of doing a research is giving an indication of what you have to look for in the reasons to do it. Completing the due diligence can make you a great deal more money as you're able to jump on an opportunity that much quicker and put your bid in with the confidence that you have done the market research to make this potential deal work out for you.

3 THINGS YOU ARE DOING TO RUIN YOUR INVESTMENT

July 24, 2019 by Team RE Mentor Leave a Comment

THE PROPERTY IS GOING TO BE WORTH SO MUCH THAT I CAN DO WHATEVER I WANT…

No you can’t. And people hate that word C-A-N-N-O-T. However, you should not rely on what a property could be worth on future margins. You need to look at the current market value.

LET’S LEVERAGE IT AS FAR AS IT WILL GO

Over-leveraging means carrying more debt than your investment properties can maintain. Keeping up cash flow is the only way to stay above water in your investment career. HOW LONG CAN YOU FLOAT? DID YOU BRING FLIPPERS? HOW ABOUT THOSE LITTLE SWIMMER ARM-WINGS THAT YOUR TODDLER USES. YES, I JUST CALLED YOU A CHILD. YOU JUST GOT SO IMPATIENT, YOU OVER-LEVERAGED YOUR PROPERTY — LIKE A CHILD!!

FORGET DUE DILIGENCE, SOMETHING NEW IS ON NETFLIX

You let Google find all the answers for you while you sat back and binge-watched a show you are going to forget about in 2 month??? And you decided not to do any homework about a property before you bought it ?!?!

HMMM. D WORDS. LET ME WHISPER THEM TO YOU “DUE DILIGENCE!!!”

DID you perform calculations? Review documents? Procure insurance? Walk the property?

Homework, right? Sometimes, it has a perhaps. You need help. Okay, okay, let’s re-evaluate where we are at. Meditate and re-calibrate.

That’s M+R= Second Chance at Cash Flow or M+R=CF(2)

You need a mentor, a coach, an advisor, and a friend to sort this all out. Learn from a collection of real estate powerhouses and veterans that have been in the trenches, solved problems, and found the answers to questions you have only begun to ask…

Give Team RE Mentor a call any time to discuss solutions for your RE investing business 1-800-559-8914 and get direct to a mentorship coach that can evaluate if the coaching program is right for you.

Take a free real estate investing course in your spare time and get started on your financial future, my friend.

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This is a live, 3-day boot camp designed to show you how to conquer your fears of owning multi-family properties; invest safely & profitably; and never deal with tenants except to deposit their checks into your bank account. You will leave this event a multi-family investing profit expert!

Success Is Like Planting Corn

July 17, 2019 by Team RE Mentor Leave a Comment

If you want to be successful in any endeavor, follow the lead of the Mayans. Learn the

laws of success in your “field” whether it’s a cornfield, or the outfield. Then follow

them diligently. Don’t just sit back and wish for success. That’s like waiting to win the

lottery. Enter it if you want to, but never count on it. That’s the chance world

approach. If you live with unearned wealth as you goal in life, you’ll end up with only

dreams in the bank.

How much corn do you think the Mayans would have grown each year if they had

depended on luck to give them a crop? Probably not much, and in those days, the

price of failure was your head, literally. Napoleon said luck was the ability to exploit

accidents. Very few people become successful accidentally. Try to think of one you

know right now. Can’t, huh? That should be no surprise.

You must understand that every success is governed by a set of recognized success

principles, not by chance or luck or the stars that were shining when you were born.

Master the laws that apply to the area you want to succeed in, and you never have to

depend on luck.

Failure Has Laws, Too

Even in failure people are totally predictable. The laws of failure are just as immutable

as the laws of success, and unfortunately, just as powerful. If your goal is failure, you

can discover the laws and follow them to reach that objective. It’s far more likely,

though, that you’re living those laws by default because it’s easier than working

toward success.

Success is a science and an art. Everybody has to develop their own style of attaining

it. You can’t buy it, you can’t inherit it and you can’t steal it. It knows no divine right.

Success is “non transferable.” It can only be acquired by the personal mastery of its

rules by each person individually. And most important of all, it can never be acquired

by wishing and hoping. Wishing and hoping are the currency of fools, and the first

laws of failure.

Success Is Predictable Through Education

Human nature is very complex, but in many ways very predictable. People who let

chance pervade their lives can never make predictions about the most important thing

in their lives—their own future. They just go along and hope for the best, and often

their best is another failure in a long line of failures. Life does not have to be that

way.

People go to school for years to study medicine so they can be healthy, both physically

and mentally. They study science to find out what makes the world work. They study

history to learn from the mistakes of the past. And some study religion to gain

spiritual health. Is it so difficult, then, to understand that studying success is just like

studying anything else? Having a faculty of coaches who are experts in different niches of real estate is a significant competitive advantage to growing your business.

But people get in a rut. It’s easy to do. There are lots of places where ruts block the

road to success. And if you’re not careful, that rut in front of you can turn into a grave

with openings at each end. Education is the key to avoiding those ruts. With

education, you can learn to be predictable with them. By being predictable with

predictable laws, you will always achieve predictable results. It’s really quite simple.

Think about a brand new compass for a moment. All compasses start with no

predictability. Their needles point in any direction until they are magnetized. When

they’re magnetized they point only to the north. That’s one of those natural laws

we’ve talked about.

Another magnet, or a piece of metal may affect a compass for a few seconds, but the

magnetized needle always returns to face north. People can become magnetized in a

similar way—magnetized by the purpose that they have chosen in life. To be

predictable, you must magnetize your conscience, your brain, and your muscles so

that they constantly revert to the direction of success, no matter the distractions.

When you focus yourself this way and fully support your focus with physical and

spiritual powers, nothing on Earth can stop you from becoming successful.

Magnetic Power

Just imagine what can happen when your life is magnetized by a firm conviction in

what you’re doing. Think how a strong conviction about your goals enhances the

functions of your mind and stimulates all of the other functions of your body. When

you really dedicate your life to its mission, distractions lose their power. Nothing and

no one will have the power to distract you from the north your compass is set on.

But what about those people who have no magnetism? Every little problem causes

their compass needle to spin. Their success, if they have any, is determined by

whoever talked to them in the last five minutes, by whatever they had for breakfast,

or by whichever program they watched on television last night.

Learn The Laws

The power of the laws of success will be lost in your life if you don’t learn which laws

will work for you and then use them accordingly. The golden rule, “do unto others

what you would have them do unto you,” is meaningless if you don’t use it as a

foundation of the laws of success. Your compass will lead you nowhere if you don’t

have the proper direction to begin with.

You must learn all the laws of success—and they are all here in this material. But you

also need to learn the governing laws. If you don’t know that water freezes at 32

degrees, you’re likely to have pipes bursting under your house this winter. Likewise,

even though we keep all the other laws of the universe, we may bring serious

consequences upon ourselves if we do not seek to understand the laws of our own

being.

The most basic of these laws, applicable both in personal development and in business

success, is the law of the harvest. It says that, “as you soweth so also shall you

reap.” All the other laws rest on this single premise. If you keep all the laws of

success and then sow greed, hatred, envy, and dishonestly, you will reap nothing but

the same. It’s as predictable as gravity: If you jump off that chair, you hit the floor;

if you sow misery, you reap misery.

Learn to Sow Success

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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Business Systems Provide Value

July 3, 2019 by Team RE Mentor Leave a Comment

Business systems are the way you do things. They are the procedures that can be replicated.

For example, we recently created a telephone answering system for an office receptionist. We created a script that delineated how she is to answer the phone and what information she needs to collect. She has responses for the types of questions callers may have and to whom she should direct calls.

We were very specific about the circumstances for transferring telephone calls and circumstances for taking messages. In addition, we established the procedure for inputting the information in the business’s customer relationship management (CRM) database program.

Effective business systems can be created for all kinds of work performance that occur in your organization. As you formalize your systems, the time you spend focusing on the details of a job become invaluable; as you critically examine each step of a process, you are also determining whether certain areas need improvement. This is a key component of the process because business systems need to be reviewed and improved as the ways of doing business change.

Here are five other reasons that effective business systems provide value:

1. Systems provide consistency

With business systems, you can produce the same products and services with the same level of consistency. Once you have created your systems and written down the sequential steps, your employees can follow the proper procedures consistently. You can monitor these processes and improve when necessary.

Systems can be implemented for sales, marketing operations, employee training, etc. The people who benefit the most from having systems in place are your customers who know what to expect from your business.

2. Change is easier to accomplish

Systems make a business predictable. So when change impacts your business–which may often occur–then knowing what business systems need to be modified becomes easier. You will know the current work process and can predict how change should be handled while still maintaining your systems.

Once your systems become part of a flow chart, or are written as a set of sequential tasks and procedures to follow, they become easier to monitor. You’ll notice that tasks will be completed properly and efficiently; changes can be more quickly addressed.

3. Training new employees becomes easier

New hires can be quickly integrated into your business when there is a written set of procedures for them to follow and they know exactly what is expected from them. It becomes easier to gauge the effectiveness of an employee when you have a measurable set of guidelines to review.

4. Business systems allow staff to focus on what they do best

Any time you are trying to complete a project with a specific deadline, you will want to avoid any problems that may develop. We like to create business systems that also best match the employee talent that is available. Allowing people with specific skills, knowledge, and abilities to be responsible for those parts of the business allows for better quality of work; everyone then can focus on what they do best.

Once business systems are established and implemented, activities can be performed on “autopilot.” Repetitive activities in your business become routine, and you can focus on activities with higher payoffs.

5. Business systems create value

Effective business systems become a part of your company’s organizational infrastructure. If you are selling your business, formal procedures add value. Buyer can see that operations run smoothly and consistently; new hires can be quickly integrated.

Systems are what make businesses grow, flow, endure, and sell. This makes a business purchase more enticing and more valuable because the systems become tangible assets. Businesses that effectively follow systems find themselves winning against their competition.

Are you looking to implement systems into your real estate business? Learn more about how our dedicated RE Team mastered this process and can pass on the mechanics of success.

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