Real Estate Geek

Ever thought about a mobile home investment, but had some reluctance? I have heard it said that mobile homes aren’t worth it, they’ll go down in value over time, blah blah blah. What I have found though, is when I invest in mobile homes, I win big. The truth of the matter is this: mobile homes are cheaper, and renters have an expectation of paying a certain price (it may be lower than renting a house, but it is usually still higher than what your payments will be after working out a good buy on a mobile home). So let me address some of these common fears and questions you may have.

Q. I’m afraid that if I invest in a mobile home, that it will lose value over time. Is this true?

A. In many cases it is true. Mobile homes do tend to decrease in value over time. But the point of investing in mobile homes is to create an income stream. Look at it this way - if you can charge $600 in rent, while only paying $400 on a mortgage, taxes and insurance, aren’t you making money, while letting the tenants pay for all of your equity? Over time, you might just see that the principle on the mortgage is less than what the property is worth - all the while, you are collecting a monthly check.

Q. I’ve heard that you will end up with nothing but bad tenants in a mobile home. Is this true?

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Hey guys:

I have to tell you that succeeding in real estate is a matter of ambition, not a function of a recession (or economic boom, for that matter). In fact, in a recessionary market like the one we are facing now only provides greater opportunity for you to succeed and find deals that you would not easily find in bull markets. Let me break it down to you this way:

“If you want to be successful in real estate, you must be convinced that you can be successful in real estate.”

Sound simple huh? Well it really is. But think about your past and how, perhaps your parents or grandparents, or other family members and friends have programmed you for failure. Sayings like “Money doesn’t grow on trees” or “You have to sacrifice for a long time before you can get what you want” or “Just do something right now, build up some cash and then do what you want” spew from the mouths of family and friends all the time. And these saying couldn’t be farther from the truth.

Listen to me, I had all the same things programmed into my brain growing up. But I finally came to a point in my life where I realized this - they were all wrong. All those things they told me just weren’t true. And I realized something else - if I followed their advice, I would end up in the same debt-ridden, enslaved to a job state that they are in, even today.

I am happy to tell you that I am job-free and virtually debt-free as well today because I finally made the decision and the commitment to my financial future, fired my boss, and went out on my own. It has been over a year now since I freed myself from the dead end job, and I am doing fantastic. I sleep as long as I want, I work in sweat pants most of the time, and I am on my way to making more money than I ever could at any job.

So what is my secret? It’s no secret. I dared to dream, and then acted on that dream. There are a lot of dreamers out there, and there are a lot of hardworkers out there, but there aren’t many people that do both. You have to surround yourself with like minded people - start by joining your local real estate club. Start reaching out to those people, tell them what you are trying to do, and get their advice. Before you know it, you will probably be setting up teaming arrangements with them to get business going.

So bottom line, you can make money in real estate (or really any other business as well) in any economic condition. Start with a dream, act on it, surround yourself with like minded people, and seek out ways to find creative financing to get your ventures started. One thing you can do right now is fill out your name and email below, and get on my REGA list to get updates on advanced automation tools to make you more effective in your real estate pursuits. Good luck to you and let me know if you have any questions by commenting below.

One of the important questions you may have if you are considering using a property management company to take care of your house or other investment property is how much the cost will be to manage the property. With regard to single unit dwellings like houses, I would boil the fees down to 3 main areas:

1. Property Management Fees Before Leasing

Often, management companies will have a fee structure for the initial advertising and contract procurement. The fees could be charged by the number of hours worked, a flat monthly charge, or a simple passing on of whatever advertising costs are incurred by the property management company.

2. Override on the Rent

This is the fee most often associated with what folks think about when they are looking for a property management company. Typical fees might be anywhere from 6-10% or more of the rental price. So on an $1,400 per month home with a 10% management fee, you would be paying the management company $140 per month, and ending up $1,260 in your pocket.

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When it comes to finding a real estate internet marketing solution, there are tons and tons of garbage out there. But you know, marketing real estate is not all that hard. Even in a down market, there are ways to market real estate online that will produce great exposure for your listing(s). But if you are like most agents and investors right now, it’s really tough out there, and you are on a limited budget. I understand that, and that’s why I want to bring this simple, 3 step method to marketing real estate online.

Now before I go in to more detail, I just want to let you know that this is method is very cheap. In fact, only one of the three steps actually costs you any money. These 3 online resources get some of the largest, and best exposure you are going to get in the real estate market. Alright, let’s dive in to these great resources:

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The sky is falling! The sky is falling! Yeah, right. People make me laugh sometimes, as they take everything the media and everyone else says around them for gospel. So what if the real estate market is in a meltdown. That is what is happening to the market as a whole. How are your investments and your house doing? If you haven’t lost those houses due to bad planning and over exposing your self to risk, you are probably doing just fine.

I feel inclined to make a key point here, and that is this - If you’ll just do the exact opposite of what everyone else around you is doing, doesn’t it stand to reason that you will end up with the exact opposite results?

An Explanation of the Real Estate Meltdown

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Another tool in the arsenal of the real estate investor, buyer or seller is the lease purchase contract. This tool is going to become increasingly used as the mortgage markets dry up. But what is it exactly? Many have heard about it through some late night infomercial, and it sounds good, but you may be scared because you heard about it some late night on television, and you don’t trust those infomercials. You are right to do so.

But don’t assume just because you heard about it on an infomercial that the tactic is wrong, illegal, or bad. In fact, there is nothing wrong with doing these types of contracts, and they can be extremely beneficial, especially when a buyer has credit issues, or they are trying to buy in for less cash up front. But let me give you my definition of a lease purchase contract:

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I wanted to write to you today, just to give you a little encouragement despite the recent flop in the mortgage market. Acquiring loans is getting much tougher, and we are going to have to change some of our approaches in order to capitalize on the ever increasing real estate investing opportunities.

Don’t Be Discouraged, There’s a Definite Upside!

You heard me right, although it is tough to get mortgages now, it also means that sellers are going to be ready and willing to deal with you. Now that all the shouldn’t-have-been-but-got-a-mortgage-anyway buyers are gone, that opens up the playing field for investors like you and I to cash in on monster deals!

It’s just simple economics: less buyers means less competition, which leads to lower prices. But the question you are asking yourself right now is, How do I cash in on the falling prices?

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