Look, I’ll try to be brief, but this is definately something I’m Reallllly passionnate about.  And that topic is the need for real estate investors to know how to research titles to properties?

Why You Should Care

Number one: There is no better way to determine what the history of a property is than by utilizing a combination of online tools available.  One would be your online recorder of deeds information (if it is available), and two, access to your local multiple listing service.  If you don’t have that, then find a way to get it.  Have a spouse, sibling, etc get their license and get access…or you yourself.  In my opinion, the pluses of having your license (or somebody you know) outweight not having it.

You can see what people bought the property for, what it sold for before, how much they owe, how many mortgages there are, whether there are property line encroachments, whether there are liens and jugements which would prevent the sell of the property, etc, etc.

Convinced yet?  Get your free Researching Titles Guidebook here.

Number Two: Do you know how to spot fraud?  I do.  Matter of fact,  a large local investor committed fraud in his rehabbing/wholesaling business.  How did I know before he fled the country?…it was ALL public knowledge and I researched him out like crazy and knew he was running a ponzi scheme.

Number Three: Checking in on your Title Companies.  You may think to yourself…awww…shucks, I don’t need to follow up on my attorney, or my closing companies.  YES, you do, for YOUR benefit.  Believe me, there are bad attorneys and title companies out there scheming this second as to how they can walk away with some of your money.  NO, that is not the majority.  Matter of fact, it is probably a very small percentage, but they are out there.  OR, maybe they are 1 lease payment away from going out of business, and you don’t know that beforehand.  Better to protect, than neglect.

I’ll say this, there have been several instances of title companies doing closings over the last several years that have done things to hurt or cripple investors.  Maybe they told you that you were getting title insurance, but you never really did.  Maybe they never recorded your deed, and now you are out of luck and have to jump through 10 hoops to get one.  Maybe they never filed the satisfaction of mortgage for the private money loan you had on a house you bought, and again, now you or they have to do the leg work.  Maybe you even need to provide proof of your payment and complete a Quiet Title Action in court.  You just never know.  However, I do know I would rather know that my deeds are being recorded, and satisfactions are being filed than to find out after something may cost me $50,000 or $500,000.

So, the choice is yours…but I can tell you there are about 3 or 4 UNDERGROUND skill sets that I have as a professional investor that are invaluable, and THIS is one of them.

Convinced yet?  Get your FREE Researching Titles Guidebook NOW, before I say, I told you so.

I even had a client pay me $200 for a private 3 hour session to show him how to do this and he was just telling me a week ago that it was the best money he has EVER spent.  He learned so much from it that he couldn’t put into words.

FURTHERMORE, you have the INSIDE track to working preforeclosure deals that most people don’t even know exist.  It opens up an ENTIRE new area of marketing for you.  Just wait and see and then come back right here to this post and thank me.

Your Protector of Money,

Brandon Yeager

I just finished putting the final touches onto a FREE video training series for Westmoreland County Investors and real estate agents.

You can access it directly right now by CLICKING HERE.
Or watch this video for a tour first…

This post is about saving time. Ultimately…that is our most valuable asset and I want to share with you 2 scenarios to get your brain cells churning.

Flashback

When I first started out landlording, I’d get a call from a prospective tenant, and inevitably, they would ask:
“can you tell me about the apartment (or house, etc)”

I used to go into a long, drawn out, detailed, explanation of everything about the apartment, trying to sell the apartment.

Nowadays, I tell them how much it costs, and then ask them…”is that in the price range you were looking for, or were you looking for something a little less ?” If they are calling from the yard sign, and just dialed me up, and that is not in their budget…I just saved myself 5 or 10 minutes.

Don’t accept Pets, Nip it in the Bud Quickly…

I also cut to the pet topic right away. No dogs ? Tell them right up front, and then ask them, is that a problem ? It is better than waiting until they have told you their entire personal crisis story and how they need a place to live right now, and 20 minutes later, you find out they own 3 dobermans and 5 cats. “Is that a problem?”, they ask ????

Flip Side

On the flip side, suppose somebody is calling you to sell their home. Probably 1/2 the time the phone call comes in, the seller begins telling you about every lovely detail from roof to basement about the property. Do not let them sell you on the property for 15 minutes, before you ask the questions that YOU need answered. You do not really care about the hand-cut crown moulding grandpa put in 8 years ago, before his poodle died, and he had to move to Florida.

Do not get me wrong, listen and empathize with them…for about 60 seconds, and then cut to the chase. It is YOUR TIME they are probably hijacking.

Another Favorite of Mine

I oftentimes get calls from home sellers that start with “Can you tell me about how you guys work ?”, or “Can you tell me about how your program works”.

I DO NOT even consider it for 1 second, HOWEVER, I used to. I used to tell them for 5 minutes about how I generally work, etc, etc.

Now, I say: “Well, why don’t you start by giving me your name and the best phone number to reach you at, in case we get disconnected”. They will not even hesitate, provide you their info, and then you move right into asking THEM questions…not the other way around.

These are all things that come with time and experience. Believe me, it only takes wasting a Gazillion hours on people, and them squandering your time away, before you too will realize the Time Vampires that are sucking you life right out of you.

Great, Brandon…Now What?

Well, here is exactly what I would recommend. You know in your heart and soul, probably 90% of all the calls you get from home sellers will start out with 1 of 10 different questions. Write them, down, and then write you own flanking responses to their questions and positions, etc.
Now, do the same for when a tenant calls. What are the 10 most common ways that your conversations start. Write down you 10 best flanking responses to get through those.
If you do JUST those items, every time it happens, depending upon how many calls you get per month, you can literally add DAYS to year.

So, have you seen any glittery crap lately that tickles your fancy ?

Out of State Deals

Have I bought deals out of state ? Yes.  Matter of fact, it’s been at least 5 different states (I’ve only lived in PA, other than my Basic and Infantry Training at Ft. Benning, GA).  Anyway, it cracks me up to hear about all of the automated out of state deal courses and softwares out there.  Can you buy homes out of state ?  Yeah!  Do I recommend that approach for newer investors?  No way.  Walk before you run.

Better Yet

This new software will even negotiate your deal for you, find them deals, make the offer, provide the cash, and all you need to do is enter your routing number and account number into the system, and it’ll even direct deposit the money into your account. Man…it’s great that this software is available on the open market.  Can you imagine all the millionaires it can make ??? 

OK, Enough Sarcasm

Success in real estate investing really only happens 1 way.  Education and Action.  You need to learn how to do it, and then you need to do it.  Sometimes, you need to spend money on both parts to make it happen.  I see lots of folks spend thousands on education, feel that they are good…and then fail.  They haven’t appropriately prepared themselves for the action part.  This is difficult for many people.

You need to learn how to creatively structure deals, how to discount liens and judgments, how to quickly evalutes REO repairs, etc.  It doesn’t happen JUST from courses, though they are important.  You really need to implement what you learn.

Over the next few months, I’m going to delve into some important aspects of many different types of investing.  You will not need to buy any software.  You can do the deals in your own back yard.  You can collect actual checks from your tenants, buyers, and or title companies and start working your way toward your exit from the rat race. 

Topics will revolve around my experiences with a lot of techniques.  Other folks have different experiences, and that’s great.  It allows all of us to shape our own destinies and paths.

Until Tomorrow, Your Friend and Mentor,

Brandon Yeager

Many investors start off with a simple Goal:

To Own 10 Houses Free and Clear

This is a great end goal.  However, along the way, several things may decide to help you change your mind.  First, oftentimes you need some type of extra funds, or income coming in, to realize that dream.  Secondly, it is a perilous mistake to simply think you can buy 10 homes, at full market value and survive the storms that WILL take place.

Cash/CashFlow Blend

Having a nice influx of cash from one of the cash methods of investing (wholesaling, rehabbing, nonperforming notes, short sales, options, etc) in addition to your long term hold strategy (sub-2, buying owner financed, straight rentals, etc) is an ideal investment strategy.  You then get to choose which properties you keep as long term investments, while having cash chunks to help mitigate any “bumps” in the road (new roof on rental, property taxes due, frozen plumbing, etc)

Free and Clear Homes – Leverage them.

Free and Clear Homes are awesome.  No doubt about it.  Over the last couple years, I’ve actually started to employ a chunk it down strategy.  As I get chunks of cash from my flipping side of the business, I actually use those to pay off some of my rentals, and then immediately take out a heloc against the property.  This gives me several advantages.  Instead of keeping, say, $40,000 in a bank account earning nothing for 3 or 4 months waiting for the right investment to come along, I pay off a loan and at least save myself a mortgage payment each month as a return on my investment.  Then, having the heloc in place allows me to quickly capitalize once that sweet deal DOES come along.

It Takes Time – But the MAGIC Will Work!

Many folks enter the REI game thinking that they will be Millionaires in 1-2 years.  I am sure some do, however, I’m more inclined to believe that people CAN get there, but it may take awhile longer than that to realize your dream.  One thing I can definately tell you…if you don’t make any offers, you won’t buy any properties.

So, Get Started in Real Estate Investing TODAY

Do not live your life with regrets.  We all get ONE life.  Are you going to look back in 5, 10 years down the road and wish you had tried to get started in real estate investing ?  DON’T DELAY!  ANY time is a Good Time to buy real estate.  Yes, it makes sense to SELL in certain times more than others, but you can buy deals EVERY week. 

To Your Real Estate Investing, Your Friend and Mentor,

Brandon Yeager

Oftentimes, beginning real estate investors are faced with the decision/pressure to incorporate, or form a business entity of some type for their real estate investing adventures.

Disclaimer: 

I am NOT an attorney, nor do I pretent do be one, and am not giving you legal advice, just my personal opinions.  You are getting this information for free.  If you want legal advice, consult your attorney.

Let me say this:

There are many gurus promoting things that make you feel like you must form a business entity right away, before you ever buy 1 property.  I’d like to propose a different scenario.

Potential Costs:

Entity Formation Fees.  If you use an attorney to draft your corporate documents and prepare them, you may face costs anywhere from $200-$500.  Along with your newly created entity, somebody will need to file business tax returns.  With the ways tax laws are written these days, it would be very prudent to have an Certified Public Accountant help you with this.  Your fees for simply completing your business tax return could run from $500 to $1,000. 

Dip Your Toe In First

I’d recommend seeing if you enjoy real estate investing, and prove that you can make a profit first.  Flip your first home, make $20K, and THEN consult with an attorney.  You will have money to invest in soliciting expert advice as to which entity would be right for your business dealings.

Different forms of real estate investing probably involve a different recommend business structure.  You may possibly be advised to complete your flips in an S-Corp, or an LLC taxes as S-corp.  Your rentals may be held in an LLC, or a limited partnership of some type.  Different states have different tax requirements.  So, be sure to consult with an attorney, AND an accountant.  They may have different advice depending upon your particular circumstances.

Don’t Put the Cart Before the Horse

The last thing you probably want to do is pony up money, form the entity, and lose money, and decide real estate may not be for you.  It is not for everyone.  It is quite possible due to your personal financial scenario, you may want to setup an entity from the Go.  And that is FINE.  However, I find that for most people, that is probably not the case.

Insurance:

An awesome protection that everyone needs is to be properly insured.  There are policies called Personal Umbrella policies which are GREAT!  They are inexpensive and can cover you in a wide variety of circumstances.  I highly recommend you talk with your insurance agent about what they may be able to offer you.

Remember, we are trying to make wise decisions, by putting our best foot forward, while making wise-monetary decisions.  Others may disagree with my thoughts here, and that is ok.  Like I said, everybody has different personal financial circumstances and they all must be evaluated by competent professionals who are licensed to give that advice.  I can only offer my opinions in the hopes that you make wise decisions that lead to fruitful futures.

Happy Investing.  Your Friend and Mentor,

Brandon Yeager

CashFlow101

What is it ?  It is a board game from Robert Kiyosaki’s group. 

Why play it ?  It sets the basis for how to get out of the rat race.  Since I invest only in real estate and my business growth, I only use the real estate cards to “get out” of the rat race.

REI Strategies:

The best part about the game is that you can fail playing a game.  I even play by myself sometimes.  Pathetic…I know.

Anyway, you can try different methods:  You can focus on aquiring rentals first and see how long it takes you.  You can focus on flipping your properties and see how quickly that affects your exit.  You can merge the two.  Flip for cash and keep some for rentals (i.e. cashflow, etc)

This is the reason my website is CASHFLOWdotcom.com.  You can flip all you want, but until you transfer those profits, or pickup cashflowing deals along the way, you are technically still in the rat race.  You can not live off your cashflow from your assets.

I live at a multiunit property paying less than $250/month to live in my own single family home.  The benefits of having tenants pay your mortgage are tremendous.

The great thing about cashflow 101 is that it helps train your mind as to how things you do/buy will impact you financially.  This is an item that most school systems are missing out on training our students for.  We are raising a bunch of “dump your money into 401k” kids.  Don’t get me wrong: that is better than nothing…I guess. 

Note: Cashflow 101 is trademarked and owned by the Richdad company.  Just want to throw that disclaimer in there.

Happy Investing, Your Friend and Mentor,

Brandon Yeager

For beginners in real estate, choosing which niche can sometimes be enough to make your head start spinning.  This will be a first in a week long study for beginner real estate investors.

Education

The first step you need to take is to get some quality education.  Buy some courses.  Read discussion forums.  Attend a bootcamp if you can afford it.  These are all great tools.  My office is stacked with various courses and I have attended 3 different bootcamps.

Your choices:  short sales, buying REO’s, buying nonperforming notes, working vacant houses, landlording and rental properties, buying sub-2, buying owner financed, using lease options, using options, wholesaling, rehabbing, private lending, and the list goes on.  Eventually, you see that these all tie together

Action

It doesn’t do you, or your family any good to not take action.  As a matter of fact, this is where many people get stuck.  They obtain a lot of book/forum smarts, but can’t bring themselves to pull the trigger for the life of them.

For Better or Worse

Look at where you are today.  Do you think that by taking some actions, you could possibly be in a better position.  Or better yet:  what is the worst that could happen ?  Will you die as a result of a poor decision ?  probably not.

However, is thee a possibility that you will be better off ?  Absolutely.  When I look back at my first dozen or so properties I purchased, I made mistakes.  I believe that is how you learn this business the best.  If you are going to fall short, at least fall forward.  Use that momentum to catapult yourself to greater things.  Look back at each experience and come away with several ahh-has that can help you next time. 

Deal experimenting also allows you to find a certain comfort zone with particular types of investing.  Some you will like, some you won’t.  Some may be more profitable in your area, others won’t.  Don’t despair.

Continue On, Your Friend and Mentor,

Brandon Yeager

Here is our second installment…this one is for Chris.

Oh yeah, if you get through the first minute…I do end up getting a close-up of a deer that walked into my backyard. I’m doubting that one has the street smarts to make it through deer season.  :0

Happy Investing,

Brandon

This post/video is in response to Bonnie’s comment on my blog.

Please watch the following video:

Yeah, I may have been having a bad hair day (as usual, that’s what I get for cutting my own hair. )

Anyway, enjoy.

Brandon