Well, I’ve taken some big strides to bring the Pennsylvania social networking site closer to reality.  And i’ve also changed my mind.  I’m going to eat the costs of the site…and offer it for free.  Many reasons why, but since I believe in complete “transparency”…( i hate that “pc” word), I’ll tell you.

I would rather have MORE people on the site.  It was never intended to generate large amounts of cash, but to provide a medium for beginner and experienced investors across PA to better access/network with each other.

That being said, I do intend on offering training and joint ventures with other investors via that channel.  I’m comfortable with that.  Hopefully you are too.  It will help to offset my costs, time and involvement with keeping it going.  I really look forward to getting all PA investors (and support folks on it)  We’ll see how it turns out.

Can’t leak too many details on it yet, but we are shooting for a launch date for Pennsylvania first (and best ) online community for real estate investors.  It is guarantteed to be an awesome platform for conversing with other investors across the state, as well as seeking expert advice.

How much does it cost ?

Honestly, I’m not positive yet.  I can’t offer it for free….but I’m going to try and make it a painless drop in the bucket for you. 

What will it have ?

- Discussion Forums

- Blogging platform

- Dial up friends instantly for a teleconference…free.

- audio and video presentations & postcards

- Private Messaging

and so much more…so, stay tuned!

So, you want to invest in real estate by monopolizing on the many REO (Real Estate Owned…i.e. homes foreclosed on by banks) opportunities that are proliferating across the country.

Look Often

One of the keys to buying these homes is offering immediately upon a price drop.  Oftentimes, banks put their listings on some type of a “rhythm” so that the price drops rather repeatedly every 3 to 4 weeks until the home sells.  This is not always the case, but more often than not, happens.  You want to see these price drops every time they happen.

Ask your local real estate agent to get on their mailing list.

Be First

When a new listing comes out, you NEED to know about it.  Again, you need to be on this list that the agents can produce for you.  Listings can be emailed straight to you, or better yet, have your better half get their real estate license, or yourself.  Bottom Line: You need access to the MLS listings.

Multiple Submittals

Usually, it’s the new listings/price drops that get you a bank REO.  However, that is not always the case either.  Even more so, today, banks are repeatedly taking offers at 50 cents on the asking price just to move the inventory.  Make the offer and see if it sticks.

Happy Investing, Your friend and mentor,

Brandon Yeager

Good morning fellow earthlings….

Today, I want to help alleviate your tax nightmares.

Yes, I used to be a ShoeBox Stuffer

 
Yep. I used to do everything with MS Excel. It literally took me nearly 1 week to get all my tax stuff, receipts, etc all tabulated and in order.

Then, I checked out John Hyre’s stuff for Quickbooks for real estate investors. It was good. Very detailed. My accountants changed a couple setup items on the books.

Quickbooks to the Rescue

Then I started to use Quickbooks. It stinks in that you have to be more disciplined while you go throughout the year. You need to enter your checks into the software (or order checks that work with the software), and you need to be rather religious with staying on top of your accounting stuff.

Bottom Line

I wouldn’t trade it for anything. With the push of a few buttons, you can have detailed reports, analyze your cashflow, generate 1099’s automatically, and a ton of other time saving, and business critical items.
I highly recommend, start using Quickbooks for your flips and rentals sooner rather than later. I delayed and regret it to this day that I did not switch over sooner. Yes, you may need to find someone to setup your original accounts, etc and help you at the beginning. You should be able to find somebody to do this for you from $35-$70 per hour very easily.

Happy Investing, your friend and mentor,

Brandon Yeager

The option contract is fast becoming one of the best ways investors are using to mitigate their risks during a trendy economic cycle.  With home values being in constant flux, it is prudent to utilize caution and the proper investment vehicles to obtain wealth.

A real estate option contract is unilateral.  Meaning, only one side has the legal obligation to perform.  It allows buyer to aquire the rights to a property, that they can decide to sell, rent, bring in partners, etc, all within a given time frame.

I’ve heard it said that an equitable interest is created by the signing of the option contract.  This is technically not correct.  The equitable interest doesn’t really start until the signing of the purchase and sale agreement is finalized.  At that point, a true legal equitable interest exists.  However, yes, in the case of an Option Contract, you do have a LOT of resources available that othewise were not there.

More on Options to come…

Your friend and mentor,

Brandon

Had an absolutely awesome trip last week.  Had some crazy snow on the ground at the Pittsburgh Airport on Thursday.  Watching people De-ice your plane before liftoff is always a thrill!

Anyway, met up with Dustin Mathews down in Tampa.  What a great trip….and what a great guy.  Class Act all the way.

This is kid is awesome.  I left there with a whole new energy for life.  While there, he recommended a book called Never Eat Alone.  So, I had my wife pick it up yesterday.  Get this…I read page 1 and about fell right out of my couch.  Literally.

Youngstown, PA

The author talks about growing up in a town near Latrobe, PA in Youngstown.  It is a small town…and It’s where I live.

He went on to talk about an attorney who helped him when he was young to learn about networking.  That attorney lives 4 houses down from me.  I really couldn’t believe what I was reading.  A National Bestseller handcrafted by a guy who grew up right here where I live.  It is crazy I tell you.

Anyway, Will get back on the blogging trail soon.

Brandon

Let me start by saying…the “Federal Reserve” is not Federal…and they certainly have no Reserves.  The formation of the FDIC has allowed certain pockets to be lined for decades. 

Watch this video….from 2/8/10.

http://www.thinkbigworksmall.com/mypage/player/tbws/23088/1153419

“It’s a conspiracy, man”….from Cars.

Surely this type of robbery cannot occur.  Right ?  Well, don’t be so sure.  For a full discourse on how our Financial System REALLLLY works…pick up a copy of the Creature from Jekyll Island.

It’s a really long story, but the bottomline is…this is how the Fed originally wanted stuff to work.  So, don’t be too alarmed when hearing or seeing that this is how your tax dollars work.

You know, basically, the banks are working within the systems and constraints that our government is providing for them.  It is allowing them to make crazy returns on their investments as well.  We, as investors, can do the same.  We can learn to adapt and utilize the system for our benefits. However:

We will not lie, cheat, and steal our way to the top.  Remember, humanity, and morality shall outlive all that greed has to offer.  Greed and short term gains are nothing, without our knowing we are still living “right”.  Some people and companies take advantage of any situation for the bottom dollar. 

When Hurricane Katrina hit, many companies and people made millions.  Many took advantage of a bad situation and turned it into illegal goldmines.   Many government beauracracies profited.  However, many people went without food, water, shelter, and the basic needs of life.

Same goes here:  don’t get me wrong, for the most part, I feel no sorrow for self-inflicted, over-extended homeowners who bit off more than they could chew.  Yes, it stinks.  However, yes, we are required to be more prudent with our finances.

For the banks to take taxpayer money out of this situation, and profit from it….it’s a shame.  One of these days, when our country truly realizes what is going on with our financial system, there is going to be a lot of ugliness.  I can tell you one thing, it is not what our forefathers envisioned in 1776, when they were sacrificing their lives to start this country. 

I know I’m off topic today, but needed to share…

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

You know, it’s late. I’ve just finished playing 2 hours of basketball. All 4 kids are snuggled up in their beds catching Zzzz’s and I’ve had some revelations tonight…so I thought I’d share them.

Real Estate Investing Baby Steps

When I started out real estate investing…I made A LOT of of mistakes. Buying rentals properties for too much, too little cashflow, doing the rehabs with my own 2 bare hands, etc, etc.

Once I started to pay big bucks for my education. 2 things happened. I was forced to take action, because I just spent a boat load of money. And the second thing…I started to “know” what to do before entering the deals. Mentoring and education is priceless. Truly. However, don’t stop there. You MUST move forward with making offers on properties, WHILE you learn.

Would You Fly 1/2 Way Across the U.S. on 2 days Notice ?

If you had your eye on a prospective mentor, and you emailed them asking for some help and guidance. And they replied back, “meet me at 9AM in 2 days”….and their address was like… 11 states away ? Cost: $519 for airfare, hotel, and rental car. WOULD YOU DO IT ?

Well, with a new venture I’m engaing, I’ve run into that quandry. And I didn’t hesitate. I would have accepted it, but I CAN’T do it this on Friday. Following Friday…YES. Following Friday after that…YES.
So, I emailed back…how about 1 week later ? That worked for him.  Done deal.

So, I’m going. Just like that. No fears. No regrets. Just a cost of getting to have face to face with an amazing person who I think can help me realize MY DREAMS and Goals. Everybody needs mentors. Everybody needs somebody pushing them, moving them forward, providing tidbits of advice and encouragement. Without them, you are LONE RANGER. Lone Ranger’s don’t make it very far in real life.

Are YOU A Lone Ranger ?

Do you live a life of scarcity or abundance ? Are you here living your life realizing that everyday is one less than you can impact this world ???? WHAT are you going to do tomorrow DIFFERENTLY to move yourself closer to your dreams ?

I’m telling you right now, my friend, THIS is the attitude that separates those who do from those who don’t.  Live with a higher purpose and never be afraid to ask.  The worst that can happen is somebody will say NO.  Find somebody locally doing what you would like to do…ask them for help.  In my case… I know this guy is good, and I’m willing to drop what I’m doing just to have the opportunity to meet with him and pick his brain.

Lunch for $1,000?

Just yesterday, I was meeting with some wholesalers over in Pittsburgh.  The one gentleman said about somebody he would pay $1,000 just to have a 2 or 3 hour lunch with, or something like that.  I AGREE with him.  There are people who in 2 or 3 hours can probably shave YEARS off your schedule and point you in the right direction.  Call them Rainmakers, or whatever.  They have been where you are, have seen dozens just like you, and know how to get you through.

Anyway, enough for the night.  I gotta run, but hopefully you enjoyed this.

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