Real Estate and Beyond Blog

The top 5 mistakes that I see investors make when investing in real estate:

1. LONE RANGER MENTALITY-Investors think they know everything and can do everything themselves. Real estate is a team sport as expressed in Rich Dad, Poor Dad book series. The Lone Rangers of the world will get to the top. However, it will take them longer because they do not have a team to assist them.
2. NO PLAN-Many investors do not create a plan before investing in real estate. That is a huge mistake. "Make the Call, Set the PLAN, and Do the Deal$" is my tag line on my radio show. First, we create the plan. Then, we do the deals. There is a natural order to follow.
3. LACK OF PROTECTION-Many investors do not cover the proper insurance both personally and professionally. Furthermore, most investors do not have their properties in LLCs for a layer of protection in case of lawsuits down the road. Many investors continue to increase their investors. However, they do not protect their assets.
4. OVERPAY-Investors will work with a real estate agent without asking their own experience. There is a lot of due dligence when it comes to researching investment properties. One must be skilled to judge the market and current market value. I have witnessed many investors pay too much for the property. Here is my motto"DO NOT PAY RETAIL."
5. ANXIOUS-Real estate is a game of patience. It reminds me of playing chess. Most investors jump the gun too quickly. This costs them big time down the road.

FIX AND FLIP PHOENIX, ARIZONA NEW INVESTOR HOLDING HANDS FROM A TO Z

The Phoenix Fix and Flip real estate market is hot at this time. Many people are starting to enter the market at the trustee sales which means many inexperienced bidders are increasing the price making it harder to find a good deal. However, we have our ways to obtain great deals. One must be prepared each day to make bids and inspect properties to win the bid for that day. I do for this every new real estate investor.

We won the bid on a property last Thursday. It was an exciting time for the investor because it was her first time doing a fix and flip in Phoenix, Arizona. She was very excited when I broke the news to her. So, I had to collect some casheirs checks to secure the bid. Then, I arranged a private money loan for her while she put down 25%. It was a great deal. So, we closed on this property the next day-Friday. We had the working crew on that property Monday morning ready to go. All the house needed was carpet, cleaning and a good spray to get the smell out of the house. This house will be ready to be put on the market early next week. She was amazed at how fast we got the property in great condition to be placed on the real estate market. She is skeptical and excited at the same time. It is like getting on the roller coaster for the first time. We all make it to the end-cross fingers.

The Real Estate and Beyond Team is ready to assist new and skilled investors when it comes to fixing and flipping in Phoenix, Arizona. Would you like to be trained? We offer investor training services for new investors who wish to be trained a little bit more before jumping into the real estate pool with both feet. It is a great way to practice and learn the ropes before playing this game. Real estate is a contact sport and team sport. It is much easier to invest in real estate with a Network behind you. The Real Estate and Beyond Team has developed a one stop for both in and out of state investors.

Please feel free to visit www.DeliaTeam.com for further information.

I have been in the real estate industry for the past seven years. I spent the first fourteen years in corporate America. I was thrown into the real estate industry. However, I knew I had to obtain a mentor in order to survive in real estate. I needed someone to teach me the ropes. Real estate is very competitive. Many agents do not like to teach other new agents based on creating more competition in the field. Why? That was my question. There is enough business for everyone in this field. Senior agents brag about their knowledge. However, they are not willing to share it. Has anyone else experienced this practice?

Here were my Top 10 Reasons for obtaining a Mentor in Real Estate:

1. Professional-Learn from a pro who has been in the business for ten years or more to obtain the same knowledge.
2. Accountability-My mentor keep me honest with myself at each level. Quit the Long Ranger mentality.
3. Focus-Mentor teaches you how to balance work and life as you start the real estate career.
4. Questions-Mentors are there for you to ask as many questions as possible to increase experience.
5. Mistakes-A good mentor will help you avoid rookie mistakes or walk you through a rookie mistake that happened in order not to do it, again.
6. Goals-Mentor will help you set realistic goals to achieve.
7. Best Interest- Mentor has your best interest in mind. Mentor wants to see you succeed.
8. Investments-Mentor will walk you through a good real estate investment. This will save you money to avoid investing in the next big thing
9. Network-A good mentor has an established Network in place for one to use in real estate. You do not have to create the wheel.
10. Compass-Mentor will keep you going in the right direction at all times. A mentor will help you stay on course even when you want to quit.

I hop these reasons that I mention above motivate you to obtain your mentor this year. I would advise not to wait any longer. The real estate market will only become more competitive. The main reasons for me to obtain a mentor were #1,2, and 8.

 TIME IS PASSING! MOVE QUICKLY!

MORE PEOPLE INVESTING IN REAL ESTATE WITH SELF DIRECTED FUNDS 401K

We have many people worried about their retirement monies being on Wall Street. Many people have lost up to 50% of their total investments. People are looking for alternative investments to obtain a better rate of return. What is the answer? The answer is real estate. I have many people call into my radio show wanting more information on how to use their retirement accounts to invest in real estate. We give people true checkbook control over their money.

Self Directed 401K Retirement Plan's flexible retirement plans have the following features:

• Investment Options - with Self Directed Retirement Plans, you can invest your retirement plan in real estate, tax liens, loans, local businesses, stocks, mutual funds and a host of other options. You are only limited by your imagination! Self Directed Retirement Plans TRUE Self-Directed IRA or 401(k) offers you greater opportunity by allowing you to choose the investments that are best suited to help you meet your retirement goals.
• Checkbook Control - Self Directed Retirement Plans structures your IRA or 401(k) so that you have checkbook control over your retirement plan assets. No more begging a broker to allow you to invest your own money. You are in total control. Participate in time sensitive investments, including foreclosures and tax liens, without the time restrictions of the custodial paperwork process.
• Limited Custodial Fees- Unlike many of our competitors, Self Directed Retirement Plan's fees are not based on the size of your account or on the number of assets it holds. Regardless of the account size, our IRA clients pay the same low custodial maintenance fee of $190 per year. In addition, Self Directed Retirement Plan's structure all but eliminates transactional, asset-based and holding fees. This can save you hundreds or thousands of dollars per year (when compared to our competitors).
• Support to Succeed - With Self Directed Retirement Plans you have access to the support you need to invest confidently. Self Directed Retirement Plans and its affiliates have set up hundreds of people with their own Self-Directed retirement plan. Our tax experts are available to review any transactions you are considering for adherence to tax law guidelines.....this ensures that you don't do anything that would endanger your retirement.
• Asset Protection - In many states, IRA assets are subject to the claims of predatory creditors. If properly structured, your IRA can build a financial fortress around your hard earned wealth.
• True Diversification - Your retirement holdings can now be truly diversified in a number of different assets. No longer are you limited to only the investments your custodian offers.

We have lender who will lend up to 50-65% LTV on a residential property on a non recourse loan. The minimum loan amount is $50,000. So, the purchase price will have to be $100,000 or more to meet the $50,000 minimum loan amount. If you have further questions, please visit my web site at www.deliateam.com or view my profile to contact me directly.

REAL ESTATE EDUCATION FIX AND FLIP TRAINING SERVICES

I host a weekly radio show here in Phoenix. I receive many phone calls on a weekly basis. Also, I am starting to see the professional seminars coming to town to teach people how to invest in real estate. People spend thousands of dollars on real estate education and not purchase one property. The workshops provide the motivation and education. However, they lack the support and application to fulfill the whole equation to really aid people in investing in real estate.

Hence, I started the Real Estate and Beyond Network to make it easier for people to invest in real estate. We provide the Motivation, Education, Support and Application to people successfully invest in real estate. Now, I have been receiving phone calls to teach people how to fix and flip. This is not my main course of business. However, it is part of my business plan. I only work with people that have reserves just in case the investor has to obtain conventional financing because the property does not sell.

So, here are my top five rehabbing tips:

1. Always use a General Contractor for rehabbing
2. Estimating the cost of the rehab
3. Use a realtor at all times
4. Put a sign in front yard when home is almost complete
5. Use Private Money to keep reserves

Let me know if this has been any assistance to you.

Comments please

Real estate has become a top discussion at many dinner tables and water coolers around the country. Everybody equates real estate and riches together. Real estate education is a multibillion dollar industry. However, only 2% of the people that obtain the education will put it into application. Real estate is a team sport. One cannot do this sport on their own based upon my experience.

So, I have developed the Real Estate and Beyond Network so people can just plug into the Network when investing in real estate. I have developed a group of professionals that serve to be in their industry. Please visit my web site at www.DeliaTeam.com to view The Network. Now, there are several ways to lose money in real estate. I would like to go over the following points on ways to lose money if one is not working with a real estate investment expert such as myself.

1. Too much leverage-All the books tell people to use Other People's Money or put down as little as possible. It cost money to use OPM method. If one does not have the proper reserves, then one can easily get into trouble really fast. One needs money to invest in real estate.
2. Common Sense-One must use their common sense when investing in real estate. If it is too good to be true, then listen to the inner voice. I encourage people to ask a lot of questions when it comes to each real estate deal. Too many people are axious when it comes to pulling the trigger. Real estate investing is many times like playing poker or chess. One must be patient and in control at all times.
3. Partners-I see many people lose money because they had the wrong partner. Also, they had no llc formed to have ground rules in place. Pick your partner that you can trust. I would advise to find a parther other than a friend or family member. Do you want to lose a relationship over a bad real estate deal?
4. Due Diligence-Real estate investors do not perform proper due diligence on real estate deals. Many do not perform a home inspection before they purchase a home. Furthermore, they do not have an escrow agent run a title search on the property to see if there are any liens against the property. Investors do not like using real estate agents because they have to pay a commission. However, these are the people calling us to fix a problem.
5. More Education than Application-Many people want to spend money on the education and forget the application part. I have people in my office that have paid $20,000 and up to $50,000 on real estate education. They either have not done a deal or skipped a couple steps in the process when investing in real estate. I would encourage anyone to work with a professional realtor at all times.

Conslusion:

I am sure many of us can relate to the points mentioned above. I would encourage everyone one of us to put our best foot forward and continue to assist people to purchase real estate for their primary and investment needs. We continually need to be the light shining on the darkness. I wish the best for everyone this year during these times. We will overcome this one house at time being sold.

PRIVATE MONEY IN REAL ESTATE INVESTING PHOENIX, ARIZONA

The American economy continues to concern people with unemployment at 10%, banks are still foreclosing on homes, and the threat of international unrest in other countries lay heavy on the heart of Americans. Gas continues to decrease and increase in a short time frame. The Federal Government is working on building consumer confidence by entering into the market by giving incentives and creating rules in the market. Will this help? Well, the unemployment rate is still at 10% and people are still losing jobs.

I believe people are tired of losing their money on Wall Street. Wall Street will continue to receive their fat bonsuses as Americans continue to take it in the shorts. Where else can they put their money? Real estate is a great option for them. Investors need access to private money in order to take down a great real estate deal with plenty of equity into the deal. I am seeing more and more people that want to learn how to fix and flip homes. We have provided this service here in Phoenix, Arizons. We teach people how to fix and flip homes not listed on the multiple listing service.

I believe a real estate agent needs three things to be successful when working with new and existing investors:

1. Must have ample investors to service
2. Must have deals so investors keep coming back
3. Private money to close the deals

Here are some of the advantages of using private money when dealing with real estate investments:

• Receive a discount on the property since one is closing faster
• No credit check
• Ample funds
• Cash flow
• Obtain money for repairs
• Flexible terms
• Develop key relationships  
• Creative methods when structuring the deal
• Several exit strategies
• Higher return on one's money 18% or more
• Create a note
• Conclusion:

We are in the middle of another real estate crisis. Home prices have been slashed to their lowest level in years. There are so many deals in the market. One must be in position to offer and close on a property very quickly when dealing with banks. Private money gives you the confidence needed to play the game. Then, you develop a reputation for closing deals at banks and in your community. People will start sending you deals left and right. Now, all the deals are coming to you based upon a solid closing reputation. Suddenly, there is no competition.

About the author: Harry F. D'Elia III is the Founder and CEO of Real Estate and Beyond. Host of the popular Real Estate and Beyond radio show hosted each Saturday from 12-2PM Phoenix time on KKNT 960 AM. Harry continues to assist people in building their wholesale residential portfolio one home at a time. Please visit www.DeliaTeam.com for further detail or call at 480-303-1800. Make the Call, Set the Plan and Do the Deal$.

I have been working with real estate investors for the last seven years. It is all about the numbers to them. Phoenix real estate is experiencing another rebirth with homes well below $100k. It is hard not to cash flow a property in Phoenix. So, I work with investors to purchase distressed properties at a great price. Then, we have to rehab the property to prepare it for a rental.

Here are some inexpensive ways to spruce up the rental without spending a lot of money

• All new electrical switch panels for entire house
• New fans throughout the house
• New light fixtures
• Big mirrors in the bathrooms
• New Doors
• New door handles
• New front door
• Paint entire house including the trim
• Paint interior neutral color
• Paint kitchen cabinets
• Tile the entire floor

It is my job to assist new and experienced investors when investing in Phoenix real estate. I have a General Contractor on the Real Estate and Beyond Network that handles all the work. I see too many people spend way too much money when it comes to fixing up a rental property. Why? It is because they fall in love with the property. This is what gets investors in trouble. Create and stick the budget.