Real Estate Investing: Do More Deals Make Bigger Money?

Do More Deal in Wholesaling

Unquestionably, almost all people want to earn more than enough money. So they find ways to earn extra income.

Indeed, real estate is a prevalent investment. There are millionaires out there who gained their fortune through real estate investing. Even celebrities are entering the real estate world to capture bigger earnings. They realized that investments in real estate are a good way of generating revenue. But do all the deals that you close guarantee big money? Well, the answer actually depends on a lot of factors.

Bigger Money On The Best Deals

So what is the millionaires’ secret in real estate investing that you do not know about? Here is the way to obtaining fortunes in real estate. Actually, the means of getting the real estate investing riches is not through recent techniques, methods or systems. Instead, it is through patience and research, and simply keeping an eye on changes in the marketplace.

Something big in the marketplace generates express growth in the real estate investing industry. Such big indicators could include fresh major employment progressing into the area, new factories, centers that offer sales and entertainment investments. If you ever smell and spot one, take hold of it because you’re near to grasping a fortune.

The issue is not on the number of deals that you make. What makes real estate investing a prosperous business is actually about the kind of deal that you make. If for example there are hundreds of business opportunities around and you invest to about 90% of them it wouldn’t guarantee you riches. But for instance, if an investor closes a deal which has a good price, it will guarantee him a huge amount of money. Even if that is only a single deal, what matters is the amount that you receive minus the expenses. If that still totals to a huge amount, then you’ve probably hit the jackpot.

Tips And Tricks To Make You Rich

There are some points to consider before becoming rich in the real estate business. The first thing to to consider before real estate investing is to decide whether or not you have the money for it. If you choose to borrow your capital in the business, then try to consider the necessary repayments and interest rates on your loan. If you also plan to do outright purchases in real estate investing, be confident enough that your savings is enough. Never make a mistake because it will lead you to spending too much and earning too little.

Once the budgetary chapter of your investment turns out okay, the next step is to choose competent people to work with. It is always better to choose good people inside the realm of your money making. Remember that you are in need of reliable people, from agents to banks and even customers. With everything on hand you’ll end up getting the better side of the bargain.

Another important thing to contemplate before real estate investing is the reason for your venture. Choose deals that will make you good money, but also remember that not all big investments have good payoffs. Know first how everything will run and clearly apply the legalities so that the business can be all set and clear. One wrong move can make you lose a large amount of cash, so take things slowly but remember to do them correctly.

In real estate investing, not all deals give you great payoffs. It also doesn’t imply that you’ll get rich if you invest on three or more deals. It is really about the investment that you choose to enter, your capabilities as a negotiator, and at one way or another, your luck.

For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

If this article was helpful please leave a comment below.

See you at the Top!

Valerie Adams
Valerie@ConversionMarketingExpertz.com

The “Real Connection” in Real Estate!! Our Bi-weekly Digest!

VRCI PRODUCTIONS & ASSOCIATES & CME    Weekly Digest of Real Estate Extraordinaire Central

We have a surprise!

Education in Real Estate  Investing 101

by Valerie Robinson, REI & CME  on January 25,2019

In the days when real estate  was “Golden”, when investors, sellers and buyers across our vast country was looking for opportunities and generally found them!   But with the transitioning that occurred in both markets, real estate had and did withstand the up and down financial and economical rigors.  Lenders and Investors both learned quite abruptly where and what the dangers were let alone their expectations on how to avoid, or handle them.  If you are just beginning to consider the idea of Entrepreneurship or idea of investing in real estate you are new investor or “newbie”and you do need some instruction to avoid losing your shirt, and probably your pants, hat and sanity, as well.

First you  will need to determine what your strategy will be in real estate investing.  Do you want to buy a property, fix it up and sell it quickly or do you want to buy a property,hold it and wait for the market to increase?  Do you want to deal with renters? All of these questions are ones that you need to answer before you invest in any piece of real estate.

THIS WEEK’S TOP STORIES

Thinking Ahead 2019

Consider what to do when ballooning consumer debt finally pops

Article Published by : American Banker, January 2019.

Commentary by: Valerie Robinson, REI & CME  on January 25,2019

Bankers are getting more concerned and worried about the rising cost of consumer delinquencies. What does this mean?  While households are managing to keep up with their loan payments, many are taking on more debt than ever. According to the banks, “Total household debt hit an all time high of $13.5 Trillion in the third quarter.”[1] Credit card and auto loans  delinquencies are seen on a downward term as seen from the Federal Reserve Bank in NYC.

The Banks have factored in the slow wage growth of the economy, the high housing costs and even the low personal saving rates among us working -class families. Is mentions how the bans can imagine  many households falling behind on their monthly bill payments even if the economy sours , or it they are faced with a sudden financial shock,divorce,unexpected major medical expense. Some will even wind up in bankruptcy. The problem with this model/scenario is that some borrowers of real estate  can wind up in deeper debt than anticipated. I’m NOT saying this is how you, the real estate investor will end up or see yourself in the years to come.

This is from the banks view regarding finance and where the economy is today and reflective of the Federal Reserve Bank of New York. Jerry L Nemorin, a former Wall Street investment banker commented as he stated,”This was during the financial crisis, and many consumers were in distress. There was no solution out there that was a  fully comprehensive solution and help work through the problems at that time”. Investors should be more savvy with knowledgeable

Education in Real Estate Investing 101

by valerie Robinson, REI & CME  on January 22,2019

There are several online sights that are helpful resources for banking, rate of interests forums and information on how to investigate Finance for yourself.  Your next step is to learn how to investigate the value of real estate properties yourself. The question we receive most is” Should you use or a real estate agent and have them show you property after property while you try to look for a good real estate investment? This question we will address and offer our opinion in our next article.

LINKS TO THIS WEEK’S ARTICLES:

The ABCs of Real Estate Investing

Let’s Talk Commercial Real Estate Shall We?

The difference Between Income Tax and Property Tax

The Benefits of Real Estate Investing!

READ MORE ON OUR WEBSITE

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P/T: 815-348-9707

The Mind of the Real Estate Investor

Let’s explore the mind of real estate investor and look at six common characteristics that successful real estate investors possess…and gift wraps powerful mental concepts for you.

Myself and many others are living proof that by changing your mental and physical habits, you can build your wealth. This mini-course focuses on changing or fine-tuning your mental habits and attitudes toward real estate investment so that you can profit at will. It’s about getting your mindset right.

By mindset, I mean your way of looking at, and approaching your real estate investment business. This includes the way you perceive your business. It also means that you need to allow the things that impress and intimidate you; to also be what challenges and excites you.

Note: This article is the introductory session in a soon to be released mini-course entitled “The Mind of the Real Estate Investor” and the full course will soon be available here; to subscribers of my real estate blog. This course will be a free service.

Why bother with “mindset?”

Simple. Because the cost of NOT adjusting your mindset is outrageously expensive (in opportunity loss)! If your mind isn’t conditioned to think like a wealth-building investor, you are like a sailor paddling around in a boat with holes in it. If you bail water quickly enough, you’ll keep it afloat, but you will eventually tire…and sink!

ALL money-making endeavors begin with a thought. They are all ideas born in the mind of an investor. Some have more and better ideas than others. Why is that? Are some minds better conditioned than others? I say “yes!”

In our society there is often resistance to conditioning one’s mind, but nobody thinks a thing about going for a jog, or hitting the gym to condition their body. Does that make sense? If you walk the entrepreneurial path, mental conditioning is central to your business.

The six concepts that I will unfold in this course are powerful weapons of the mind. If you condition your mind to these concepts will make you a lot of money, and you will KEEP making a lot of money.

Simply put, if you don’t develop, and then fine tune your mindset you will either:

  • Never get around to investing in real estate (if you have not yet begun) and forfeit the wealth you want to attain for you and your family.
  • Never quite get where you want to go in your investing (if you are already investing), and forfeit the wealth you intended to attain for you and your family.

You see, a lot of people have enough knowledge to invest in real estate. Far fewer DO it. Why is that? Because far fewer have bothered to develop the mindset that conquers fear and other hurdles to investing in real estate. Frankly, it doesn’t matter how much knowledge you possess about investing in real estate, you WON’T do it if you haven’t conditioned yourself to think like and investor.

Usually I write and teach practical matters of rehab real estate investing, but for this course, I’m breaking from that in favor of talking about what you can do to adjust your thinking…change the way your mind works. Since the investing won’t be successful without a properly conditioned mind, it can be considered the most important aspect of learning to be a real estate investor!

Mindset is the foundation of real estate investment. In other words, if it’s not solid, you cannot invest successfully. I don’t know how to put it any plain-er.

I’ve known scores of people who have WANTED to invest in real estate. These are usually acquaintances who find out somehow that I invest in real estate. It’s very common that I hear statements like; “I’ve thought about doing that.” Sometimes I hear “I looked into that.” Sometimes they proceed to ask questions, but I find that most of the time the next word after the previous phrase is “…but” and then I hear an excuse.

These excuses range from “I couldn’t find any property” to “the numbers scared me” to “I couldn’t get funding.”

What I’m thinking to myself is “these excuses have solutions, but they don’t yet have the mindset to overcome these relatively minor hurdles.” In fact, unless someone ASKS me for specific advice on overcoming these hurdles, I don’t offer advice. That’s not because I don’t want them to succeed! It’s because their mindset is not yet right. What I’ve have learned in coaching that is much as you have to tools to teach another, you can’t make them follow them.

Let me tell you where I’m coming from on this topic.

My mindset was screwed up for 10 years! I was a real estate guru junkie! For a decade I consumed every book about real estate investing on the market, attended seminars, and bought courses. I had “book knowledge” running out of my ears with ZERO property.

Finally, one day I realized that I was about to “retire” from my Corporate job in the Pharmaceutical Engineering field. I REALLY didn’t want to get a job, and my family still liked to eat! I changed my mindset, and put thoughts into action. The rest is history. What changed? Not my knowledge! My way of thinking changed. Change of thinking also means changing execution.

Facing the end of my career was the catalyst that got me started. If you haven’t started, there IS a catalyst in your life, you only need to find it and capitalize on it. Are you satisfied in your job? Want more time with family? Want more disposable income? Want to build your retirement savings? This list could get long!

This course is aimed at helping you capitalize on your action catalyst by developing your real estate investor mindset.

For those that are already investing, this course will serve to fine-tune your mindset to make you more profitable. The VERY SAME mindset ideas that make people launch successful real estate investment careers are the ones that keep investors successful over their real estate investing careers, be it 2 years or 20.

For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

Cheers and I will see you at the top!

Valerie Adams
Valerie@ConversionMarketingExpertz.com

The ABC’s of Real Estate Investing!

Investing in real estate can be profitable if you know the correct ways to do business in this field. As real estate investment experts say there are several keys to making significant profits in real estate investment deals. And when the deals are profitable, you will certainly be well on your way to success. For real estate investment neophytes, don’t be afraid of the challenges and pitfalls you may encounter along the way.

There is definitely a lot to learn, but in the long run after you have gained some experience, you’ll hopefully become a master at closing profitable real estate deals. There are 5 core skills that are necessary for building a real estate investment business. These will be the key factors in creating a profitable real estate investment portfolio.

These are the 5 core skills of real estate investment:  
  1. You should totally understand the meaning and concept of investing in real estate, including all of the financial risks and benefits.
  2. You must learn when and where to find the right kind of sellers.
  3. You must become an expert in all areas of real estate investment and understand such terms as lease options, cash sales, wrap mortgages, short sales and other terminology common in the real estate investment trade.
  4. You must be able to quickly and accurately analyze each real estate investment deal so you’ll know exactly when to proceed and when to pull the plug.
  5. You must learn the art of being a master negotiator when it comes to closing your real estate investment deals.

After considering these five skills, it is time to consider investing in real estate. There are great potential rewards and the effort you put forth can yield enormous monetary returns on your investment. Your confidence level will grow when you’ve gained some experience and closed on your first few real estate deals. But, don’t stop there…

You should continue to learn about real estate investing and to develop your investment skills. In a short time you may find yourself managing a profitable and growing portfolio of investment properties. Moreover, you should also continue to follow your real estate investment “game plan” and always keep an eye out for the hidden investment opportunities. The opportunities are definitely out there and with a little knowledge and desire can be yours for the taking.

So, why not get started in what might be a new and exciting (and profitable) career today? For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

If this article was helpful, please leave a comment below.

Cheers,
Valerie Adams
Valerie@ConversionMarketingExpertz.com

Let’s Talk Commercial Real Estate Investing, Shall We?

Commercial Real Estate Investing

The financial industry greats will be the first to tell you that real estate investing has the potential to bring in serious profits. They will also gleefully inform you that the risks in some cases far outweigh the potential, especially if they are among the more cautious investors in the industry. Those who have made their fortunes in real estate however will tell you that investing in real estate is worth every ounce of risk when you manage to work through the rough patches and find your way to real estate investing fortunes.

Commercial real estate is somewhat unique among real estate investment types. This is the type of real estate that requires a high investment to get into the game, much higher than most residential property and equally it poses great risks depending on what you plan to do with your commercial real estate investment. Of course you will also find more than a few options for your commercial real estate investment that many investors find appealing.

Most investors find leasing office or building space to be the safest route to take when it comes to real estate investing. The path of leasing office space or warehouse space to businesses is also lucrative and can help you learn the ins and outs of commercial investing. They feel that this is a relatively steady source of income because most businesses prefer to keep their locations as long as possible. Smart business owners are well aware that customers, clients, and vendors need to be able to find them in order to do business with them and for this reason, prefer to keep their business in the same location whenever possible rather than reestablishing themselves in different locations year after year.

Commercial real estate investing is a bit of a different animal than traditional residential real estate that many of us are more familiar or comfortable with. You will need to do a lot of research before jumping in with both feet with this particular sort of real estate investment. Commercial real estate investments can take on many forms. From strip malls and outright shopping malls to business and industrial complexes to sky scrapers and high rise condos you will find all manner of commercial real estate interests. Whether your interests lie in business or personal types of commercial real estate there are significant profits that stand to be made.

Unfortunately, beginners often find the path to commercial real estate investing laden with thorns. You will need a massive contribution to fund your commercial real estate pursuits and it is probably best if you can find a group of investors in order to share some of the risks. Real estate, in and of itself, is a high-risk venture. Commercial real estate bears a little more of the risks in the beginning however once you’re established and people, particularly investors, know your name you will find that path to real estate wealth is much easier obtained through commercial real estate, if you play your cards right than many other types of real estate investing.

To create even bigger profits it is often best to work as part of a team of investors when it comes to commercial real estate investing. Not only does this approach spread out the risks to some degree but also helps find the good buys, spreads the labor pool, creates an environment of ideas, and allows you to bounce those ideas off one another seeking temperance and enthusiasm for members of your investment group in like measures. It is a great idea for those who are looking to build a prosperous future in the field of commercial real estate investing and can be extremely profitable for all involved.

Commercial real estate investing can be extremely intimidating if you allow it to be. Avoid putting yourself in a situation where you feel out of control or completely uncomfortable for your first commercial real estate investment but if you have the means, the price is right, the deal appears to be solid, and you feel you are ready for the challenge, commercial real estate profits can be a serious motivation.

For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

If this article has been helpful, please leave a comment below.

Cheers,
Valerie Adams
Valerie@ConversionMarketingExepertz.com

Real Estate Investing Guide: The Difference Between Income Tax And Property Tax

Just like in any other business, real estate investing would require you to pay different kinds of taxes. Two of which are income tax and property tax. To know the twists and turns of real estate investing, you should know what these taxes are, when do you pay them and their difference.

Income Tax

As the name suggests, income tax is tax that is deducted from your income. It is charged on the financial income of people, corporations or further legal entities. There are different systems of this kind of tax coupled with different degrees of incidence. Charging this kind of tax can be proportional, progressive or regressive.

When tax is imposed on incomes of companies, then this may be called corporate tax, profit tax, or corporate income tax and if self-employed, self-employment Tax. Tax from the earnings of an individual is usually charged from his total income. But in the case of corporations, the tax is usually charged from the net income of the corporation.

In terms of real estate investing, income tax comes in when you are profiting or having income from your property. For example, you have invested in a piece of land and leased it, then you would have to pay income tax from the income you get from your rentals.

This includes your gross income or all amounts that you received as rent. Rental income is considered to be any payment that you received for the use or the occupation of your property.

However, the positive side effect of charging income tax in real estate investing is that you can deduct different expenses of renting property from your total rental income. Generally, the rule is that you deduct your rental expenses during the year in which you pay them.

Expenses that you can deduct include advertising, cleaning and maintenance, utilities, insurance, taxes, interest points, commissions, tax return preparation fees, travel expenses, rental payments and expenses on local transportation.

If you are a taxpayer under cash basis, you usually report your rental income on your return in the same year that you constructively or actually received it. You fall under this category if you report income the same year that you receive it, despite the month you earned it.

Property Tax

In real estate investing, you also pay property tax. This is also known as millage tax. Property tax is said to be an ad-valorem tax, where a property owner pays depending on the value of the property being charged.

There are basically three different kinds of property. First is land, then your improvements to the land, such as buildings; and last but not the least, personality like manmade objects that are movable.

Real property, real estate and realty are all terms used to pertain to the combination of improvements and land. In real estate investing, the taxing authority usually requires or does an appraisal of the property’s monetary value, and then tax is assessed in ratio to the value.

If you really want to get into real estate investing, then you should know what form of property tax that is used in the municipality you are investing in.

One common mistake that real estate investors make is their confusion between special assessment and property tax. These are actually two different forms of taxation. One is an ad-valorem tax, which highly relies on the property’s fair market value for justification, while the other highly depends on a special enhancement that is called a benefit for its justification.

In real estate investing, the rate of your property tax usually comes in percentage form. To calculate your property tax, you multiply the assessed value of your property with the mill rate and then divide them by one thousand.

For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

Valerie Adams
Valerie@ConversionMarketingExpertz.com

The Benefits of Real Estate Investing


Real estate investing is increasing at a staggering rate these days. More and more individuals are learning that real estate investments can offer wonderful earning potential. Real estate investing is a process which has many attractive qualities that make it a viable money-producing opportunity. There are a number of benefits that go along with purchasing real estate investments and the following paragraphs will highlight some of these benefits. As you will see these attributes make it quite apparent why individuals are becoming interested in investment opportunities of this type.

Build Equity in the Property:

For those individuals who are looking to invest in real estate on a long-term scale, there are certain benefits to doing so. When individuals purchase real estate and hold onto it for awhile, they are ultimately able to build a good deal of equity in the home they are purchasing as an investment property. Equity is a beneficial aspect for the homeowners since the more equity a property has, the more that it adds to the net worth thereof. This is an important and frequently cited reason why individuals do choose to invest in real estate and maintain the property as an investment for a long period of time thereafter.

Possible Tax Advantages:

Another benefit of purchasing real estate for investment purposes is the possible tax advantages that one may receive as a result of owning the investment property. Depending on a variety of factors, individuals who own investment property may just see some gracious tax advantages as a result. Therefore, individuals may be more than ready to invest in real estate once they have looked into possible tax advantages that result from engaging in a transaction of this type.

High Rate of Return on the Sale of the Property:

When the investment property is sold somewhere down the road, the homeowners will most likely see a high rate of return on the sale of the property. Depending on the market at the time of the purchase and sale, this rate of return may be more than generous when one looks at the profit margin. Some factors to consider if looking to purchase property and sell it within a short period of time after the initial purchase include current market for property sales, renovations and upkeep necessary to get the property ready for the sale and ability to hold on to the property longer if a sale does not come as quickly as one had expected. If one has considered all of these possibilities and still feels that they will be able to sell the property quickly, then this is a wonderful benefit of real estate investment.

Lease the Property to Tenants


While some real estate investors choose to purchase the property and then sell it shortly thereafter, there are other individuals who have a different reason for purchasing investment properties and wish to obtain a profit by other means. These individuals are ones who prefer to purchase the property and then lease it out to tenants. By doing so, the homeowners are able to pay for any mortgage which may be present on the property plus receive any additional income from leasing the property to tenants.

Investing in real estate is a wonderful way to gain equity in a piece of property, take advantage of possible tax benefits and maybe even make a considerable profit from the sale of the property once the individual feels like doing so. These are some of the many reasons why individuals are purchasing real estate as investment property and current low interest rates make now a perfect time to buy. The benefits of real estate investing are difficult to pass up, so go ahead and find your first real estate investment property!

For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

Valerie Adams
Valerie@ConversionMarketingExpertz.com

Real Estate Investing: Simple Ways To Make More Deals And Earn Greater Profits

Get In There’s Still Time


If you surf the Internet and read books on real estate investing you will come across a lot of useful information, though the majority of these sources concentrate on providing information on just one particular sphere of investing. The best part about this form of real estate investing is that you can earn money in more ways than one and never have to spend your own money in the process.

Not A Get Rich Scheme

It should be clearly understood at the very outset that real estate investing is not a scheme that makes people rich overnight and without expending much effort. On the contrary, real estate investing means putting in a lot of hard work and it will also take time before you realize your objectives. It also requires that you perfect certain techniques and combine them with your experience and strengths; so that you act in the best possible manner at all times.

One way of getting ahead in real estate investing is through rental properties because being a landlord is an activity that has been known to man for many a long time and it has always helped one to earn good money. It is however something that does not happen too often because you don’t want to rent out your property on a short-term basis (in most cases). You can also profit from a technique known as lease optioning in which you get to control the property without actually becoming its owner. The best part about this form of real estate investing is that you can earn money in more ways than one and never have to spend your own money in the process.

Also, real estate investing could also mean going out looking for more deals because as you will have realized, the more deals you are able to close the more money you will end up earning. You can also wait for a good deal to come your way and whether you are a pushy investor or one who is patient and waits for deals to come your way you will need to be very persistent if you want to succeed in this form of investing. Thus, you should talk to as many owners as you can because the more deals you make the greater the amount of money you will have earned.

Once you realize that the more deals you close the more money will come your way you need to focus your real estate investing efforts in a few simple yet effective directions. First off, you need to try and buy properties from private owners since it will allow you to bypass competitive buyers who usually throng auctions looking for bargain buys. Also, private owners may be facing foreclosure and thus would be on the lookout for a buyer so you can land some sweet deals in this novel and effective way.

You can also profit in real estate investing by selling and leasing back. A source worth tapping out in this regard is businesses that have bought properties during boom periods but who are now facing liquidity problems. If you have the cash, such businesses will be willing to do business with you and you can then buy the property and then lease it back to the company and expect a nine to ten percent return on your investment.

However, foreclosures are a better option because you can get the property at knock-off prices and then make a good profit by selling them later, when the time is right. Using these simple strategies, you should not face any problem with increasing the volume of your real estate investing dealings and as you will have more properties on hand chances are that you will be able to convert them into more profits by making as many deals as you can.

For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

See you at the Top!

Valerie Adams
Valerie@ConversionMarketingExpertz.com

Tax Liens and Distress Sales – Opportunities for Real Estate Investing

With the current real estate hiccup going on the U.S., more and more people are losing their homes because they failed to pay their home mortgages. But what happens to the homes is something few people think about. This can be a very good real estate investing opportunity for the shrewd, and one can quickly earn profits in a very short amount of time.

How To Earn Through Tax Liens

If a homeowner has defaulted on his payment, then the mortgaging bank will start the pre-foreclosure process. A tax lien will then be issued for the property, so that the right to retain the property can be gained. You can do real estate investing in tax liens for a certain property that has been issued a lien and put out for an auction sale. The way you can earn profit from this is that the state will pay fixed interest on a tax lien and there are others that will start the bidding price at auctions in the amount of the lien.

If the tax lien is unpaid during the duration of the redemption period, then all other mortgages and liabilities on the house are extinguished, and the title to the property will be cleared. The investor will now own his or her new property with a clean title. If the owner can pay the liability on his property however, the investor can still earn through interest earned on the lien. (Check with your local state, time restrictions may apply). Real estate investing in this manner can lead to profits both ways.

Real Estate Investing Through Auctions

Sales of properties by tax-distressed owners can be quite a steal. However, you’ll need to find out if your real estate investing opportunity is going to be worth it. Check the property location beforehand, because you might be buying something worthless, like purchasing a piece of land that is routinely flooded. If you are able to acquire and own a piece of land legally, you can participate in property auctions as well. But, you’ll have to have ready cash on hand or in easy access, because auction sites will typically require that those who win the bidding on their chosen properties to pay a down payment or the full amount in a short span of time, if not cash up front. This is one of those investments not for those without capital.

Starting Up Your Own Real Estate Investing Business

You can always start-up your own business in the real estate investing industry. Given that you have enough capital, and you have enough knowledge on the state rules on tax liens in your area, you can start investing in property tax liens immediately. One of the most important things to do when doing business in this nature is to check the property liens that you’ll be buying. Physical inspection is needed, but since it can be so time-consuming, limit your searches to somewhere you can drive to. A real estate investing business will also require that you have adequate knowledge of the legal processes involved, since tax-distressed sales by homeowners will involve banks and other institutions, most notably the government. You can earn high profits with just a few pieces of properties sold, but you can also spread the profit out and sell properties for a smaller markup, provided that the turnover for those profits will be faster so you can move on to other properties for sale.

A distress sale is a great opportunity for investment, but one should always be careful since at auctions you won’t know if the property you’re buying is a good buy, and not a lemon. You should also check if the owner of the property is not on the verge of bankruptcy, because the IRS can override your lien and take first priority as well as your real estate investing opportunity away from you. Even in this case, the interest rules for each state still apply and can be a tax deduction as well.

For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

See you at the top!

Valerie Adams

Valerie@ConversionMarketingExpertz.com

5 Tips To Successful Joint Ventures

“I’ve always believed that that only way to cope with a cash crisis is not to contract to but to try to expand out of it” Sir Richard Branson

When businesses think of team building, business owners usually associate it with building their company’s internal workforce into a lean-mean fighting machine. Team building, however, should be extended to include external relationships such as those with other businesses. Enter joint ventures or JVs for short. The purpose of this article is to give tips to entrepreneurs and small business owners. This article is not a “green light” for spam with your links and offers please!

Joint ventures generally are business partnerships established between two or more parties (individuals, business groups, companies, corporations) for the purposes of expanding the business and achieving merits by joining forces and working as a team. The parties involved in joint venture agreements complement each other, leverage each other’s assets, compensate each other’s weaknesses, and at times equally share risks.

Less than 5% of businesses use joint ventures effectively and most don’t even use it at all. To get the most out of joint ventures correctly, multiple factors such as choosing who to partner with, approaching potential partners correctly, negotiating a win-win deal for all parties involved, and having a well-coordinated execution need to be taken into consideration.

There are several types of joint ventures. Big companies may join forces to become even more powerful and thus dominate the market, while small companies may team up to build a stronger presence in their market niche to fend off bigger, resource-rich companies. JVs can also be used to gain access into foreign markets. Foreign companies often form joint ventures with indigenous companies that are already present on the market, but lack capital or financing to truly take advantage of the market potential. Foreign companies can bring money, new technologies and competitive strategies into a joint venture deal, while benefiting from the relationships and the brand of the domestic company.

These complementary partnerships benefit all the businesses involved if set up correctly with the right partner. Here’s a powerful but simple example of a JV that many businesses can take advantage of to grow their small business fast. It is a highly efficient method of increasing business profits by teaming up with another partner whose business is non-competitive and offers a highly valuable asset, a highly responsive client list that would be interested in your products or services. By tapping into this hidden goldmine, small businesses can save thousands of dollars in marketing expense to reach their target clientele while achieving the goal of boosting the bottom line. The business offering the vehicle in which to reach these clientele, the client list, benefits from offering complementary products and services that it does not sell and makes a cut of the sales generated from marketing to this list.

Here are 5 tips for joint venture success:

1.      Choose your partners carefully. A joint venture has greater chance of being successful if partners have an excellent reputation. An essential component to good team building is having the right partners. They must be trustworthy and have a high level of integrity. Joint ventures involve extensive team building effort because it is a relationship between two parties and if the relationship is to last, it must be nurtured and kept going.

Both parties must be able to trust each other and deliver on each other’s promises. To find the right partner, perform solid market research and approach people and businesses you would want to do business with LONG term. If you want to form a partnership with a certain company, make sure that its business practices are in-line with yours. It would be very difficult for you to form a reliable team with people who lack motivation or professionalism, so you should look for well-trained, open-minded potential partners.

2.      Know what to expect from the beginning of any JV relationship. Know from the start what your goals are, what you want to accomplish, and see if your goals are attuned with the partner. Each company/person should come up with a marketing plan and clearly specify what is expected from their potential partners. Plan your strategy ahead of time and make sure you cover all the legal aspects stipulated in your joint venture contract, like resource availability and management, special allocations, mutual gains, deductions, and income issues. Stick to the business development plan and establish new priorities and goals as you progress. By efficiently managing resources and by maintaining a good, competitive business policy, you will secure the longevity and the success of your business.

3.      Draft proposals like mini-sales letters. Compose a professional proposal letter explaining the advantages of the joint venture in a convincing way. Keep it short, clear, concise, and coherent while briefly introducing your business and why they should do business with you. Remember to tune in to the radio station your prospective JV partner listens to, WIIFM or What’s In It For Me. If you want to propose a joint venture to anyone you have to give them a really good reason why they should do it. Otherwise, they will most likely decline your proposal. Successful companies receive many joint venture offers, so you have to stand out. You should educate them about the advantages and the benefits of choosing you over the others. If this partner happens to be a dream partner, stay persistent as persistence demonstrates sincerity and determination to make it work for the potential JV partner.

4.       Avoid shooting too high with your offers. If you are a smaller business, do not target your offer to a large company first as it will most likely be thrown away. Instead of aiming too high at this point, establish successful joint ventures with small companies in order to get noticed by the bigger, powerful ones. Establish a reputation as a solid business owner who knows how to turn joint ventures into gold for their partners.

Businesses naturally gravitate towards successful businesses. Remember to toot your own horn by announcing JVs through press releases and/or articles in trade magazines. As your business expands, the competition will quickly become aware of your presence, and there is a chance that powerful companies might come up with proposals of joining forces with your company.

5.      Be honest and open with all business transactions always. Once you have negotiated the details of the joint venture, the actual work begins. In order to keep things going, a lot of trust, understanding and expertise are needed for ongoing team building on both sides. Maintain an open dialogue and always address issues upfront before it becomes a bigger problem that threatens to break up the partnership.

These are the basic rules for joint ventures and it is ultimately up to you to see whether a deal will be successful. Learn with each joint venture deal to improve on the next deal. Deals can only be made if you go after them. With lots of hard work, you’ll develop enough expertise to be a joint venture expert and take your business to the next level.

I hope you get lots of tips from this article. If so please leave a comment below, like and share.

If you are interested in learning how we leverage joint venturing in real estate investing and house flipping click here. http://bit.ly/2KrhfKD

Valerie “The Coach” Adams

Conversion Marketing Experts, LLC.

Valerie@ConversionMarketingExpertz.com

/ Offices: California, Chicago, Georgia

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