Happy New Year… I hope that your real estate investing in the New Year is both easier, more fun and massively more profitable this year than last.
And, we are here to help make sure that it is easier, more fun and massively more profitable because this year in addition to the dozens of real estate investing courses, hundreds of real estate investor articles and resources on the blog and the hundreds and hundreds of pages of systems, checklists, forms and more on the Real Estate Investor Wiki, we are also offering additional live training each month as shown on the Real Estate Investing Calendar of Events plus free consulting to our Real Estate Investor Bronze Members.
Since I normally charge several hundred dollars per hour for personal one-on-one consulting and an hour with me could help you massively increase your profitability and reduce expenses, the consulting is an extremely valuable addition to our Real Estate Investor Bronze Members. The small increase in the price for membership is still an amazing bargain compared to purchasing our courses independently (currently many thousands of dollars of materials) not even counting the consulting time now included or the massive, powerful Real Estate Investor Wiki.
So, let’s make 2010 the best year ever… sign up for Real Estate Investor Bronze Membership now and start with the Real Estate Investor Business Setup Step-By-Step full day seminar to jump start your business. Then, plug into our monthly trainings and consulting sessions to implement the proven strategies to start making money as quickly and easily as possible in your real estate investing business.
I am excited about and looking forward to working with you in 2010!
Sincerely,
James
Yesterday, while analyzing some local houses to determine their potential value as rental properties, I noticed an interesting trend. Out of about ten houses that I crunched numbers on, only two seemed capable of producing any positive cash flow. What did they have in common? They were the only houses with four bedrooms. The rest had either two or three.
This got me to thinking that when determining rental prices, the price per bedroom is a pretty important number to know. The price per square foot does not matter nearly as much for a rental house. In fact, some of the three bedroom houses were actually larger than the four bedroom houses, but they couldn’t command as much rent.
There are various places online where you can go to determine rent, and you can also check your local newspaper. I think you will find that this trend is generally true. The number of bedrooms has a large influence on rental rates. As investors then, we should remember to look at the price per bedroom as a quick way to compare properties and narrow down the number of potential deals before we crunch all the numbers.
Similarly, multiple units, like duplexes and triplexes, typically cash flow more easily than single-family homes. I personally prefer single-family homes because I believe that they are easier to keep good tenants in long-term. However, it is interesting to note that the more functional a property is, in terms of the number of bedrooms or the number of units, the better its value is to us as investors.
Until my next post,
James
P.S. We discuss deal analysis in massive detail in a variety of real estate courses we offer that teach it, plus in the Real Estate Investor Wiki we have an entire section how to analyze a variety of deals. One of the nice thing about being a Real Estate Investor Bronze Member is that you can bring your potential deals to our free real estate investor consulting sessions to have us work on your teach and use it as a teaching aid for both you and all our other Bronze Members. Sign up for Real Estate Investor Bronze Membership today.
As real estate investors, it is important to remember that the “asking price” of a house is not the same as the sales price on a piece of merchandise in a retail store. While there are those among us who will negotiate with anyone, anywhere – most of us just don’t feel comfortable haggling with every salesperson that we meet (especially those not paid commissions). The majority of us realize that unless there is something wrong with the item, then an hourly employee just isn’t in the position to offer us a discount, even if we are a world-class negotiator.
This simply is not the case when it comes to the asking price for a house. It really is just what the seller is “asking” for. As buyers, and especially as investors, we may reasonably ask the seller to accept a lower price, because he does have the power to say, “Ok, I’ll give it to you for that much.”
You can think of asking price in this way: when a house first comes on the market, the seller prices it at the high end of what they expect the market will pay. Over time, if their price isn’t compelling enough to force a sale, then they will lower it. Sometimes a house is reduced in price many times before it finally sells. Wouldn’t you be doing the seller a favor by making your lower offer in the beginning and giving them a chance to sell their house right away rather than after months of letting their house languish on the market unsold? Of course, many sellers will say no, but you needn’t fell shy about asking.
My big picture advice when it comes to asking price: it is not some fixed magical number. It is an educated guess of what the seller (and his/her real estate agent) thinks the market will pay. There are many factors that can cause this number to change. So don’t be afraid to ask for the price you want!
Until my next post,
James
P.S. For our Real Estate Investor Bronze Members we teach a variety of powerful negotiating tactics and strategies that can be used to buy, sell and rent properties better. Sign up now and download a variety of real estate investor training courses, access our systems, checklists, forms plus receive on-going training and consulting plus much more.
If you are looking for a great book by Robert Kiyosaki (of Rich Dad, Poor Dad fame), then consider this book.
In this book Kiyosaki and some of his business associated give you practical advice on determining property values, finding deals including how to properly find potential foreclosures.
If you purchase The Real Book of Real Estate: Real Experts. Real Stories. Real Life. (for the regular list price) through our website we will also include a full day seminar by James Orr called Retire Young and Rich via Real Estate (retails for $197 but included as free download with the purchase of this book) that covers a huge amount of information of setting up your real estate investing business, finding and analyzing deals, financing properties and much more.
Order The Real Book of Real Estate: Real Experts. Real Stories. Real Life. and while you are waiting, listen to the approximately 8 hour Retire Young and Rich via Real Estate seminar to take your investing business to the next level.
Or, upgrade to the Real Estate Investor Bronze Membership and download over 100 real estate courses, access our extensive system of checklists, forms and other training materials plus get free on-going real estate investor consulting to take your business to the next level.
I just finished adding a new link to the Affiliate Control Panel that allows affiliates to directly link to a page listing our business courses.
How To Get The New Link
For affiliates, the best way to access the Affiliate Control Panel is to go to the Affiliate Program page on our site and select the link from there to login to the Affiliate Control Panel. You will need to be registered as an affiliate to access it since it will embed your specific affiliate id into the link.
How To Use The New Link
While there are lots of ways to use this particular new link, what I would recommend is that you could include it as part of the emails you send out to your subscribers as your build your list. If you want the video we made on how to set up automatic emails for real estate agents, you can use that as a model for setting up emails for a variety of lists.
In the video I mentioned and showed how you can customize the emails… a link to these courses in your PS might be an appropriate thing to test.
If you have any questions on this particular link, please do let me know by posting a comment below.
Until my next post,
James
P.S. I am looking for 2 people to formally become Joint Venture managers… I will be writing a post about it, time permitting, early in the New Year, but if you are interested before the post I strongly encourage you to contact me. Joint Venture managers are paid 15% of the sales generated from the joint venture partners they work with. In other words… if you help us find and coordinate a joint venture with someone that has a list of potential clients or runs a website, they get paid 40% of all sales and you would get paid 15% of the sales they generate. Contact me if you are interested.
We have a variety of business courses that you can download for free as Business Bronze Member right from the Business Wiki or, if you prefer, individually using the links below.
- Accounting And Finance Fundamentals For Small Businesses
- Accounting And Taxes
- Automating Your Online Business
- Building Effective Lead Capture Web Pages
- Business Entity Overview
- Creating And Marketing Your Own Information Products
- Direct Marketing For Online Businesses
- Driving Traffic To Your Web Site
- Godfather Principles Of Online Business
- Guerrilla Internet Marketing Tips And Tricks
- How To Become An Amazon Power Seller
- Implementing The SIVA Marketing Model
- Local Marketing To Drive Online Sales
- Make An Extra $400 Monthly In Your Online Business
- Making A Fortune In Affiliate Marketing
- Making Money With Online Auctions
- Marketing For Lazy Folks
- Marketing For Poor Folks
- Marketing Metrics Basics
- Maximizing The Lifetime Value Of Your Customers
- Online Business Setup Step-By-Step
- Opt-in Email Marketing Tips And Tricks
- Secrets To Small Business Networking
- Selling Products Online With Absolutely Zero Inventory
- The Inner Game Of Running An Online Business
- The Success Principles Of Online Business
- Time Management For Online Businesses
- Timeless Face To Face Sales Strategies
- Writing Killer Marketing Headlines
- Writing Killer Web Sales Copy
If you have any questions about these courses or materials, please do post a comment below.
Sincerely,
James
