I have a friend and col-league whom happens to be a realtor in central VT. He is a one-man-band with a great coach. His coach demands that my friend writes a check for $500 payable to his coach. My friend is required to be on a conference call once a week. If he is not on that call, his coach cashes that check. How’s that for being held accountable?! If you look at the results, it explains why he does this. There are 171 agents in central VT. My friend has 25% of the market share; this means he got paid 25% of all closings in cen-tral VT this year. That leaves 75% market share for the remaining 171 agents! He contributes his success to his coach. If you are committed to achieving greatness in your chosen field, consider working with a coach. Be careful, and choose wisely! Best of luck,

Kevin Lacasse

Do you talk a good game? Do you have admirable goals? Do you have a great plan and ideas as to how to achieve those goals? We think we have got all the pieces but why do most of our goals fall short? The answer is simple; we don’t have someone holding us accountable for our actions or in this case, in-actions. I read an article recently in Entrepreneur Magazine about business coaches, life coaches, and mentors. The article stated that coaching and mentoring is one of the fastest growing segments of Entrepreneurial business in America today. Why is this? BECAUSE IT WORKS! We are all human, and get-ting lazy is human nature. Taking action on this or that sometimes takes a back seat to lesser important stuff. This is the reason why most beginner real estate investors never make it to their first deal. SOLUTION: Work with a coach or mentor! Sounds

simple enough, and it really is. Talk to most highly charged, highly suc-cessful people, and they will often contribute much of their success to their coach or mentor. What to look for in a men-tor is two-fold. First the coach or mentor must be knowledgeable in the sub-ject matter at hand. For instance, if you are a cook-ware sales person, you want a coach that knows the ins and outs of selling cookware; and if you are a real estate investor, you want a coach that knows the ins and outs of that trade through personal experiences. Secondly, and I think more impor-tantly, your coach or men-tor must hold you ac-countable. You want a coach that will make you feel good when you take action, ease your mind when fear sets in (because it always does), not let you get away with in-action, encourage you and hold your feet to the flames of opportunity.

JULY 2008 VOLUME 3, ISSUE 3

THE REAL DEALTHE REAL DEALTHE REAL DEALTHE REAL DEAL

INSIDE THIS

ISSUE:

Upcoming Events 2

Bert’s Blog

By Bert Cox,

President of NHREIA

3

Investors—Determining Val-ues in this Crazy Market

By Lou Castillo

4

Are Bank Owned Land Deals Worth A Look?

By Richard Dale-Mesaros

6

The Power of Connec-tions . . .

By Sherri Locke

7

Investing in Multi-Families Without the Hassles of Being a Landlord

By Gail McCarthy

8

Ten Myths Preventing People From Succeed-ing in Real Estate Investing

By Bill Bronchick

9

Listen Up!

CD and Book Recommen-dations from the Board

5

©

Who’s Holding You Accountable?

By Kevin Lacasse NHREIA Board Member at Large

PAGE 2 THE REAL DEAL

NHREIA is dedicated to education and networking for Real Estate Investors in New Hampshire and throughout New England.

The Board of NHREIA welcomes all questions and suggestions:

Bert Cox, President 603-225-0097 Bert@BertCox.com

John McGrath, Vice President

603-819-1307 JMcGrath@BluewaterMtg.com

Richard Dale-Mesaros, Chairman of the Board 603-536-3864 riskit@worldpath.net

Sherri Locke, Treasurer

603-776-4205 sherri@lockeinyoursuccess.com

Gail McCarthy, Secretary 603-361-7330 gail@gailemccarthy.com

Ann Bellamy, Board Member at Large

603-801-2247 annbellamy@gmail.com

Kevin Lacasse, Board Member at Large 603-530-2091 dnlhomes@metrocast.net

Dianne Shvanda, Marketing

603-318-1330 dshvanda@gailemccarthy.com

Meetings are held on the 2nd Wednesday of each month at 6:30 p.m. at the Best Western Executive Court, 13500 South Willow St., Manchester, NH. Please visit www.NHREIA.com for details. NHREIA IS DEDICATED TO PROMOTING AND MAINTAINING A PROFESSIONAL AND ETHICAL STANDARD FOR ALL MEMBERS TO ABIDE BY AS PER ARTICLE XVII OF THE NHREIA BYLAWS.

THIS CODE OF ETHICS IS AS FOLLOWS: ARTICLE XVII CODE OF ETHICS

I agree not to make promises I cannot keep.

I agree to keep the promises that I do make.

I agree to be fair, honest, professional and maintain integrity in all of my business dealings.

NHREIA UPCOMING EVENTS July 12, 2008

The Real Deal 101 A real estate investing seminar for new investors to learn the basics of real estate investing. Bert Cox will share his knowledge of short sales and Kevin Lacasse will cover many aspects of rehabbing.

9:00 am – 12:00 pm

410 South Main Street, Concord, NH 03301

$49 members, $69 non-members

To register: Call 318-1330 Email shvanda@verizon.net Or visit www.nhreia.com

August 13, 2008

Networking Night! Build your team -

network and get to know your fellow investors.

NHtoFlorida.com

Florida Wholesale Properties:

- Single Families

- 1-4 Multi’s

- Condos

- Commercial (Strip, Mixed Use, Apt)

- Vacant Lots

- Waterfront

- Rackominiums

- Bank REO’s, Short Sales, Foreclosures

Can’t find any investment real estate that makes sense? I travel to Florida every month to help investors find bargain real estate. Just let me know and I’ll put you on my list to receive information on the latest discount real estate avail-able.

Al Piecuch

Shells Realty

Realtor/Investor in NH & FL

www.NHtoFlorida.com

Al@ShellsRealty.com

Cell 603-930-0718

Hello Fellow Investors,

What an exciting time it is to be in real estate. First of all, I want to thank everyone who took the time to re-spond to the survey. Your feedback is helpful and as-sists the board in charting the future course for the association. There seems to be an overwhelming interest in making available a formal-ized mentoring program and there is strong support for our fledgling lobbying ef-forts. Please share your ideas with me or any of the board members for ways to improve value of the associa-tion. Opportunities abound in real estate because of the high inventory, large num-bers of distressed sellers, relatively low interest rates and tightening of credit mar-kets. The current real estate market is very conducive to

buying and selling with crea-tive techniques. My phi-losophy has always been to have multiple tools in the toolbox and as an investor to consider myself a transaction engineer. That is, find out the needs of the seller or buyer and use the tools to meet those needs. Creative techniques include rent-to-own, seller financing, wrap around mortgages, subject-to, value-added split, op-tions, wholesaling, partner-ing, sandwich leases, and creative combinations of the techniques. Than Merrill and other speakers have talked extensively about creative techniques for mar-keting to find sellers and buyers and there’s a whole world of advanced tech-niques for short sales, syndi-cation, note buying, devel-opment, condominium/condex plays, and more. There’s still even a place for traditional real estate. The beauty of creative real estate is the opportunity to profit from the value added service

of solving people’s real es-tate problems (preferably without writing a big check). I urge you to take advantage of the tremendous opportu-nities currently available in the market. Get a partner, mentor, training or what-ever it takes to motivate you to get involved. For appre-ciation, there’s no better

Bert’s Blog By NHREIA Founder Bert Cox

PAGE 3 VOLUME 3, ISSUE 3

time to buy than immedi-ately after the market has bottomed (right now!). It’s a number game. Put in lots of offers, welcome rejection and follow up. Time and circumstances can change a seller’s perspective. Happy Investing!

Bert Cox President, NHREIA

And if they are going down, at what rate are they going down? How fast is that de-cline occurring and is it picking up speed? Is it slow-ing down? What is happen-ing with it? I also want to know are there buyers on the market buying or is the market stalled? My investor friend said there had been no house sales in the last four months. Well if there have been no house sales, none, zero, in that area that concerns me. I can take a house and I can make it the best house out there at a favorable price and I will attract the buyers that are in the marketplace but if there are no buyers it really doesn’t matter what I’m doing, I’m not going to get it sold. You have to look at buyers. If there are no buyers I would definitely not be pur-chasing that house right now. If you are seeing an area that nobody is buying in then that area must be an area of town that nobody wants to live in. Not an area that I would necessarily want to buy in. Generally, that is not the case. The case usually is that houses are selling. For instance, there are 200 houses on the mar-

Investors—Determining Values in this Crazy Market

by Lou Castillo

This article was reprinted with permission from REIClub. www.REIClub.com

PAGE 4 THE REAL DEAL

The other day I had a call from an investor friend who asked how I determine val-ues in this crazy market. The first thing to do is to pull the comparable prop-erty sales. Comparable property sales are properties that are as close to the sub-ject property as possible. I know that an appraiser would say that you could take properties from as far away as a mile but we know a mile away is a long dis-tance and neighborhoods can change significantly in a mile. I look for properties as close to the subject property as possible. The best would be on the same street, block or neighborhood. You want it to be similar square footage. If you are talking about an 1800 versus a 1900 square foot house your average buyer is not going to see that hundred foot difference. If you are talking about between 800 square foot and 900 square foot obviously your buyer would see the difference between those two houses. There should be similar bed/bath configuration. Similar in age; age is some-thing that is relative. If we are talking about a ten year

difference between a house that was built in 1996 versus a house built in 2006, then yes buyers would see a big difference between those two houses. If you are talk-ing about the difference be-tween a house that was built in 1959 and a house that was built in 1969, still a ten year difference, your sellers won’t see a difference be-tween those. You are look-ing for houses that are essen-tially the same in your buyer’s eyes. Now assuming you have that, what are the compara-ble sales? What are you see-ing that has sold? In this crazy market it is no longer enough to know the value of the houses that have sold in the last six months. What you now have to do is look more at what is happening. Look at the trend. Break down those comparables and find what has been selling each month of the last six months so that you can see a trend. Yes, six months ago they were selling at this, five months ago they went to this, four months ago they went to this, and so forth. Instead of just saying overall they are selling at this level you want to see if they are going down. Are they going up? Are they staying flat?

ket and in the last 6 months 15 of them sold. Okay? That means 1 out of 10 houses are selling. That just means the market is slow. It doesn’t mean it has stalled out. Now a slow market I can deal with because I can take those 15 buyers and make my house the most attractive deal to them to get them to focus on my house. I’m not scared by that. The only thing that scares me off is if there are no houses selling at all. The next thing is looking at what is listed on the market in the area today. What’s your competition? And how do those prices compare to what is sold? In other words, if you look at everything that has sold, it was $200,000, but everything that is listed on the market right now is at $180,000. It tells you that the prices are dropping. No-body is going to list their house at $180,000 if realisti-cally you could still get $200,000. It must mean that they are dropping their price because they are getting beat up by the marketplace. Which leads to the next question, what are the days on market? How long have Continued on Page 5

place too long. What you want to do is project out when this house be on the market and figure out what the prices will be at that point. If they have been de-clining at a rate of 2% per month and you are not able to put this property back on the market for three more months, then estimate a 6% decline on the market. Given that this is going to be the estimated value of the property at that point. You will build into your deal the right sale’s price and the right rehab dollars so you are buying smart. If you buy with your profit built in on the front end you will make money on the back end of the deal. What you want is to price your houses in the middle of the pack. Don’t be the high-est priced house. Right now is a buyer’s market. If you were in a seller’s market then you absolutely price it above the marketplace. Give them a great product and then charge them. If you do your research then it will feel like you have this crystal ball that you know what your house is going to sell for and you can buy feeling comfortable that you are going to be able to sell this property. The bottom line is that you have to build your profit in on the front end of the deal. Lou Castillo has been success-fully investing in real estate since the early ‘90’s

Investors—Determining Val-ues . . . Continued those houses been sitting there? If they are well under what houses have sold for in the past I’ll bet when you look at the days on market and how long they’ve been listed they are starting to exceed 60, 90, 120 days. The next thing to look at is how many rehab dollars is it going to take to make the house the nicest house in your price range. I am not saying to go crazy in your rehab and build a palace when everything is on a lower income level. That’s not the point at all. The point is to make it the nicest house in that area. Some-times making it the nicest house simply means that it has brand new carpet, paint, fresh landscaping, just looks all clean and fresh. Then I want to be able to price it right. The next thing is to be able to determine how long it is going to take to get this house on the market given the rehab needed. Is it going to take me a month to get it back on the market? Is it going to take me six months or more? The further out obviously the more risk there is. That is why right now most renovators are looking for properties with minimal amounts of rehab so they can get in, get out and not risk being in the market-

PAGE 5 VOLUME 3, ISSUE 3

Listen Up!

How much time do you spend driving to and from work? If you are in your car just 30 minutes a day — that’s more than 100 hours a year! With today’s gas prices, why not get more out of your driving time? Listen to au-dio CDs and you can learn real estate investment strate-gies, discover secrets of ex-perts and keep yourself mo-tivated. Here are some audio CD and book recommendations from the NHREIA Board: Richard Dale-Mesaros

The Dip by Seth Godin Learn to know when to quit if you are going down a path that’s not working for you.

The Tipping Point by Malcolm Gladwell Talks about the influencers who change markets

Fast Company A magazine that reports on entrepreneurs. Contains best practices and lessons learned. Kevin Lacasse

Trammel Crow, Master Builder: The Story of Amer-ica’s Largest Real Estate Empire by Robert Sobel A biography of Trammel

Crow, a builder that started in the 1930’s. His business has grown through the use of partnerships.

Real Estate Investments and How to Make Them by Milt Tanzer Learn how to really look at the numbers. Ann Bellamy

Real Estate Investment Strategies by John T. Reed. The best of John T. Reed's newsletter articles on invest-ment strategy. John McGrath

The Success Principles by Jack Canfield A practical and inspiring guide for people to get from where they are to where they want to be. Sherri Locke

Dolf de Roos’ Real Estate Investor’s College by Dolf de Roos Contains insider techniques and field-tested strategies for all levels of real estate investors. Gail McCarthy

The Secret by Rhonda Bryne A motivational book and film on positive thought for positive results.

Enjoy!

PAGE 6 THE REAL DEAL

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Manager Cell: 603.702.2160 Fax: 603.642.7547

Cami Baker

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As Seen on HGTV!

cell 603-785-2598

cami@camibaker.com

Investment properties • Purchasing REO’s in bulk

nationwide • Residential SELLERS and BUYERS

Just recently I stumbled across a piece of land for sale on Craig’s List and it turned out to be a bank-owned property that was listed by an out-of-town Realtor. Not one to pass up on a good deal, I figured it was worth a closer look. I called up the Realtor to get some more detailed information. I asked if it could be subdivided (it was over 80 acres) and she said she didn’t know. I asked if she knew how much of the property was in the Flood-plain; she didn’t know. When I asked if she’d walked the property herself I wasn’t surprised when the answer was also a ‘no’. Hmmmm. I had her email me the list-ing sheet and a copy of the town lot map, so I could decide if it was worth head-ing over to the property. This parcel had 2000’ of river frontage and I knew that the land along the upper road frontage would have views to the South/West. There was a burned-out house on a fairly recent foundation and I figured there was probably a bunch of timber on the steeper section where the views were. Looking at the photos

Confessions Of A Networking Madman

she’d taken, I could tell that she hadn’t walked it because the only two shots she’d taken were from the bridge as you approach the prop-erty. Any time you have a seller/agent selling a piece of land, especially a larger one and they haven’t walked the property, it may well be worth investigating further because there could be some hidden opportunity that you are able to ‘sleuth out’ as an investor. I drove over there immediately, eager in antici-pation of what I might find. Having walked the entire river frontage, most of the interior and right along the portion running parallel to the upper road, I discovered that you could get at least five, maybe even eight lots along the upper road, there was about $40,000 worth of timber from a selective cut, a whole bunch of sand and gravel, plus room for more lots on the lower section. Those upper lots simply weren’t apparent unless you went into the woods and walked through AND you’d have no idea about the tim-ber value without taking the trouble to get out of your vehicle and mosey on in.

The fun thing about this business of trying to find the hidden value-plays and land is certainly no different. Who are the abutters, what other parcels does your sub-ject property give access to, is there wood or other mate-rials that can be removed (some companies will give you money up front for this) and how can it be split up? It was interesting that this par-ticular Realtor knew so little about the property – her opinion of value on the land

Are Bank Owned Land Deals Worth A Look?? By Richard Dale-Mesaros

NHREIA Chairman of the board

was based upon very limited information and didn’t take into consideration many of the factors I was able to find through doing a bit more due diligence. Don’t worry, I won’t be mentioning any of the above factors to the seller/their Realtor as we go forward in the negotiations. Hopefully you now have a different perspective when looking at larger parcels of land, which are bank-owned!

PAGE 7 VOLUME 3, ISSUE 3 VOLUME 3, ISSUE 3

Opportunities abound for those who make strong con-nections with others. Whether it be email, blog, phone or in person get out there and make those con-nections. You never know who might bring you one step closer to your next deal. It could be a neighbor, postal carrier, newspaper delivery person, real estate agent, banker or even the kid down the street. Just imagine talking with your postal carrier and he knows that you invest in real estate, he might mention that house around the corner, the one that you don’t drive past, is turning into a real eye sore and that the mail is piling up. Great! Go investigate the lead! There is a science to devel-oping powerful communica-tion skills. Some tips for forming great connections are: Ask the other person their name and use it during con-versations. This will help you to remember their name as well as make them feel important. Remembering and using a person’s name goes a long way in building rapport and forming a strong connection.

Ask, ask, ask...lots of ques-tions. People love to hear themselves talk about sub-jects that they are knowl-edgeable about. It will also prompt you to share your insights into those topics forming common interests which will create a bond. So don’t be shy. Ask! Treat others with respect even if their views are differ-ent from yours. Directly challenging someone’s views is probably the quickest way to loose a connection. Eve-rybody likes to think of themselves as being knowl-edgeable and smart. When you directly challenge some-one’s views by saying “you’re wrong”, you make them feel uneasy and defen-sive. This gives them a bad feeling about you and results in them “tuning you out”. Instead, take a different ap-proach and say “I know how you feel, I felt that way too, until I did some investiga-tion and do you what I found out?.....…” This does sev-eral things to further strengthen the bond, first it makes them feel like you care about their opinion, because you actually listened to and repeated what they said. Second, it makes them feel like you both have something in common be-

cause you felt this way too. Third, the person feels un-derstood since you once felt the same way, he or she will be much more responsive to what you have to say. Do what you say…even if it’s not a formal promise. If you say, “I’ll call you next week” and you don’t, you instantly damage the con-nection. The person will no longer trust you and will be hesitant to contact you or pass your name on to anyone else in the future. If you’re not sure you are going to do it, don’t say it! Make eye contact and listen attentively. Give the person you are speaking to all your attention. If that cell phone rings, don’t even look at it. If someone is waiting to speak with you let them wait until there is a natural break in the conversation. If there is something you need to attend to or you are ready to

connect with another per-son, let them know in a re-spectful way. Thank them for their time and insight The NHREIA meetings, Power Breakfasts, Seminars and especially the Network-ing night, coming in August, are some awesome venues to make powerful connec-tions. The more connec-tions you make, the more apt you are to find deals, good contractors, realtors, lenders, mentors, partners and friends which will greatly improve the quality of your life. A fantastic book or audio on this topic would be the Dale Carnegie’s timeless classic “How to Win Friend & In-fluence People” it has many great insights. Now get out there and make some Pow-erful Connections! Sherri Locke sherri@lockeinyoursucess.com

The Power of Connections . . . By Sherri Locke

NHREIA Treasurer

For More Information: Annie Trajilinek Jared Williams 603-887-0950 603-490-6262

ajp@gsinet.net www.fdirep.com/ajproperites

PAGE 8 THE REAL DEAL

difficult to get financing and more capital is re-quired to close a deal.

• Makes a deal feasible when a large down pay-ment is required to make a property pro-duce positive cash flow.

• Enables investors to make an all cash pur-chase to maximize cash flow.

• Allows investors to ac-quire larger properties that have the potential to achieve greater ap-preciation than would be possible by purchas-ing smaller properties by themselves with lim-ited resources.

• Enables investors to diversify and thereby mitigate their risk.

Disadvantages

• Does not enable the investor to make inde-pendent decisions about the investment.

• Investment performance may rely on the quality of the decisions made by the sponsor.

• A potential problem may exist if the invest-ment goals of one or more of the investors change during the life of

the investment.

• Real estate, as an invest-ment, is not very liquid, meaning that it is diffi-cult, but not impossible, to get your cash out of a property before it has been sold.

• A sponsor’s financial position may change during the course of an investment.

Who can participate? Sponsor A sponsor brings together investors to pool resources to purchase real estate. The sponsor has a fiduciary re-sponsibility to the investors and is responsible for man-aging and reporting to the investors. Investors Per Regulation D (SEC), a private placement made only to accredited or qualified investors, when done prop-erly, allows full exemption from registration. Accredited and Sophisti-cated/Qualified Investors can be defined as follows: Accredited Investors Individuals who meet the following criteria: Continued on Page 9

So, you want to get in the game. Good. And, you want checks to arrive in your mailbox. Very good. But… but… but, you don’t want to knock on doors, chasing tenants for rent checks. You don’t want to field calls from tenants with toilet problems, window problems, heating problems, [fill in the blank] problems, problems, PROBLEMS!!!! Relax. No worries. You can enjoy the benefits of ownership of large multi-family properties, including cash flow and tax advan-tages, as a passive investor in a syndicated real estate deal. SYNDICATION 101 What is it? Syndication is just another word for group investing, a c c o r d i n g t o G e n e Trowbridge, a syndication attorney and CCIM instruc-tor. It enables investors to join together to purchase real estate with the follow-

ing objectives:

• Enjoy returns on capital

• Mitigate risk in two ways:

ο Gives investors an opportunity to in-vest in a percentage of a deal, thereby assuming only a percentage of the risk/return.

ο Gives investors an opportunity to par-ticipate in and learn about investing in bigger deals as an entrée to doing that size deal on their own in the future.

• Enable investors to par-ticipate in bigger deals.

• Provide passive income to investors.

According to Trowbridge in his book titled “It’s a Whole New Business,” (2007) group investing has the fol-lowing advantages and disad-vantages:

Advantages

• Enables investors to purchase property by pooling resources.

• Facilitates the acquisi-tion process in a credit crunch, as we are now experiencing, when it is

Investing in Multi-families without the

Hassles of Being a Landlord By Gail McCarthy

LANDLORD

PAGE 9 VOLUME 3, ISSUE 3

Investing in Multi-families . .

Continued

• A natural person whose individual net worth or joint net worth with that persons’ spouse, at the time of the purchase of the security exceeds $1,000,000; or

• A natural person who had an individual in-come in excess of $200,000 in each of the two most recent years or joint income with that persons’ spouse in excess of $300,000 in each of those years and has a reasonable expec-tation of reaching the same income level in the current year.

Accredited Entities

• Any trust, with total assets in excess of $5,000,000 not formed for the specific purpose of acquiring the securi-ties offered, whose pur-chase is directed by a sophisticated person.

• Any entity in which all of the equity owners are accredited investors.

Sophisticated/Qualified In-vestors A sophisticated investor is an individual or entity that has significant experience in-vesting in real estate and who is deemed capable of understanding the risks and rewards of the investment.

How does it work? The sponsor creates a com-

pany that will own the prop-erty and then sells investor interest in that property. The property that is chosen will take into consideration the investors’ goals. Ac-cording to David Lindahl in the seminar he teaches called “Private Money” (2008) these goals could include the following:

• Income

• Appreciation/Equity Build Up

• Tax benefits through cost recovery

• Advantages of leverage (control more)

The sponsor then secures the property and prepares a private placement memo-randum to provide the in-vestors with all necessary avai lable information. Funds are raised and the property is purchased. Fol-lowing the purchase, the investor enjoys the rewards of owning multi-family properties without the has-sles of being a landlord. Now, that’s nice! Gail McCarthy, MBA

Gail McCarthy has formed na-tional partnerships to buy large apartment complexes, currently comprising 252 units. She is currently preparing to syndicate a real estate deal involving a large multi-family property. For more information, see http://www.strictlycommercialusa.com. Gail is also a NH Realtor with RE/MAX Elite, Commercial Services Division in Hooksett, NH.

The following are the top 10 reasons people use for not succeeding in real estate investing. If I offend anyone with this list, it probably means I'm right on track! Reason #1: No Cash

The Myth: "You need money to make money." The Truth: Find a good real estate deal, and the money will find you. Ask any seasoned investor and they will tell you that lack of funds is never an issue; lack of good deals is! If you can negotiate a good price on a house, you will find plenty of partners willing to put up the money. Reason #2: No Time

The Myth: "I've got a job, a spouse, kids and little time on my hands." The Truth: Throw out your television and you'll have all the time you need. People spend an average 3 hours per day in front of the tube. They spend even more time on weekends. Want to do something fun this Satur-day? Load the kids in the mini van and go driving around looking for ugly houses. Make a game out of it giving a dollar to each of your kids that spots an ugly house. Tell them that each

ugly house you buy means enough money to take them all to Disney World. Reason #3: Everyone Says This Stuff Doesn't

Work

The Myth: "That late night TV stuff doesn't work." The Truth: You can con-vince yourself that anything won't work. Henry Ford once said, "Whether you think you can or think you can't, you are right." Every real estate transaction has risks; some risks are re-alistic, while others are re-mote. If you listen to the critics, the naysayers and other pessimists, you'll con-vince yourself it doesn't work. Most people that criticize money-making ideas need to do so for their own ego. After all, if it were true, what's their excuse for not being successful? Make it a point of not taking finan-cial advice from anyone who makes less than you do. Reason #4: Too Much

Competition

The Myth: "There's too

many people buying houses to find a deal." Continued on Page 10

Ten Myths Preventing People From Succeeding in Real Estate Investing

By Bill Bronchick

This article was reprinted with permission from REIClub. www.REIClub.com

PAGE 10 THE REAL DEAL

Ten Myths . . .

Continued

The Truth: There are more than enough deals to make everyone rich. At any given time there are hundreds of properties for sale in your market for each investor looking for them. In addi-tion, a majority of people who say they are investors are just sitting on the side-lines waiting for something to fall in their lap. Don't be one of them - go out and make deals happen. Reason #5: It Doesn't Work in My Market

The Myth: "It doesn't work in my market." The Truth: It works in EVERY market. True, it may work differently in some markets than in oth-ers, but there are investors making money in every city, every day of the week. You have to learn your market - the rents, the trends, the local customs, the bankers, the title companies, etc. Then, learn the techniques and adapt them for your market. If you are in a hot market, you can sell proper-ties faster and ride inflation. If you are in a down market, you can find lots of bargains. And, in any market, there are people with financial problems that translate into bargain properties. Reason #6: The Reces-

sion is Coming

The Myth: "Certainly, the September 11th tragedy, the huge number of layoffs and

the decline of the stock mar-ket will kill the economy, so anything I buy will go down in value." The Truth: Sell cheaper or with attractive terms. When Dell wants to move com-puters, they drop the price. When GM wants to move cars they offer no interest financing. Be creative and do things that make your houses sell and rent faster. If the prices are falling, buy way below market and sell just below market. If rental va-cancies go up, offer free satellite TV (heck, it's $25/month). When everyone else is "dooming and gloom-ing", it only clears out the competition. Reason #7: Realtors

Won't Cooperate With Me

The Myth: "Real estate agents don't want to cooper-ate with investors." The Truth: The right agent can be your best friend and #1 source of business. I have a one agent that brought me six deals in the past year. He knows exactly what I want and only calls me when there's a deal. You need to educate a few agents and let them know exactly what you want. Few agents have repeat customers - you have to make them under-stand that you will be giving them business over and over again. Reason #8: I Have Bad

Credit

The Myth: "I need good credit to buy houses."

The Truth: Good credit helps, but you don't need it to make money in real es-tate. Lease/options, owner-financing, flipping proper-ties and other creative tech-niques will allow you to buy real estate without credit. You can always use a partner who has good credit. You can also borrow "hard money" without having good credit. In the mean-time, you can work on fix-ing your bad credit so you can use it as an asset in the future. Reason #9: I Might Lose

Money

The Myth: "Real estate is very risky." The Truth: Real estate is one of the safest investments you can buy. The stock mar-ket is beyond your control. Savings, CDs and money market funds won't give you enough return to make money. You have to be will-ing to take a calculated risk to make money. The more you educate yourself, the less risky real estate be-comes. However, don't think you need to know EVERYTHING before tak-ing action.

Reason #10: I Don't Know What To Do

The Myth: "I need to learn more before I start." The Truth: You probably know more than enough to get started in real estate. It takes years to learn a lot. You never learn everything. Success is an ongoing learn-ing process. Read some books, take some seminars and go take MASSIVE ac-tion. Then, learn some more and take a lot more action. If you are really impatient, enlist the help of others. Henry Ford said, "Why should I clutter my mind with general information when I have men around me who can supply any knowl-edge I need?" Henry Ford was a smart man because he realized that he didn't need to know it all if he could consult with others that did. Ronald Reagan's cabinet was said to be the team of the brightest people in politics. William Bronchick, CEO of Legal Publications, is a nation-ally-known attorney, author, entrepreneur and speaker.

$ Investor Financing $ Hard Money

Non-owner Occupied Flips/Rehabs Commercial Acquisition • Multi – family

EVERY DEAL IS DIFFERENT – TALK TO US!!

Ann Bellamy, Buy Now, LLC 603-801-2247

annbellamy@gmail.com www.BuyNowHardMoney.com

PAGE 11 VOLUME 3, ISSUE 3

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