General

As a real estate investor, I am EXCITED for 2009.

Why am I excited?

It’s pretty simple. I have been investing for over 13 years, and I’ve seen good and bad markets. Right now, there are quite a few conditions in the national real estate market that are good signs for smart investors.

For example:

• property prices are down,
• interest rates are low,
• banks are offering seller financing,
• rents are going up,
• apartment vacancy is falling,
• foreclosures keep going up,
• and our population is increasing.

2009 will be great for real estate investing, IF…. you know how to turn those factors above into cash flow and profits. Will you be one of the people who ACTS on those factors, or one of the people who just sits on the sideline, and looks back with regret in a few years?

I will be hosting a free Webinar called “The Top 5 Income Producing Strategies for NOW and 2009″. If you want to make 2009 an explosive year for your finances, do everything you can to join me.

I hope to see you there! Click here to register for the Webinar.

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I’ve recently heard that the grass is greener on the other side. What do I mean?

We recently have had a few MWI events in Houston, Texas. If you’re not familiar with the Houston market, there are some amazing opportunities for creating huge cash flows. Rents are high and apartment vacancy is low. Houston is one of the best places in the country right now to be a landlord.

I have heard some investors that are not from Houston offer excuses as to why they are not as successful as the investors from Houston. I’ve heard people say that the “grass is greener” in Houston, and if they lived there, then they would be successful.

I want to stress that every market has its own successes and opportunities. Don’t be discouraged about your market. Use your frustration to be more creative, and to work a little harder at finding good deals. Each market has positives and negatives.

For example, in most national markets, properties you’re buying right now will double in value in 4-7 years, but might have smaller cash flows. In Houston, you’ll only see a probable 10-20% increase in values, but cash flows are massive. Do you want high property values (net worth) with small cash flow, or high cash flow and small growth in net worth? Don’t forget that you can also do a bit of both, for a great balance!

My “Retire In 5 Years” Home Study Course teaches that the first two years of your “5 Years” is for creating cash flows, and the final years are for long-term value growth. There is a time for every phase of investing!

My advice for today is to plan out your goals for the next few years, and invest accordingly!

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I often see people that want to become successful investors all on their own. It’s true that we are all responsible for our own individual growth, education, and actions, but having a support team can explode and leverage your own positive actions.

In my real estate investing system I call these support teams, “Power Teams”. Power Teams are an amazing way to easily leverage the power and capital of a group of people. Having an investing team like this also allows us to create systems and leverage to become MUCH bigger than we could have on our own.

Having a team around you can be beneficial for a number of reasons:

• Your team can help you raise capital to become a cash buyer in all transactions.
• Of course, you can find more properties. Train your team and create new property “hunters” or “bird dogs” to find a consistent flow of properties and opportunities.
• Having a team allows you to bring professionals in from all areas affected by your business to have expert advice and support.
• You can have a consistent and hungry client base that is constantly demanding new properties and providing you with a huge client-based commission income.

This Friday at 11:00am we are hosting a free Training Call entitled “Power Teams and Leverage”. I hope you can join us!

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Have you ever wished that you could flip a switch, and make a NON-Assumable loan into an assumable loan? It can be done, and isn’t that difficult.

Let’s listen in on another conversation between an investor and a Bank Vice President, to see how this might play out.

Investor: Hello Mr. Bank VP! I’d like to take over this loan, and save this troubled property, but…. I’ve been told this loan is not assumable.
Bank VP: That’s too bad, I wish we could help.
Investor: Actually, you can!
Bank VP: Oh? I’m sorry, but there is no assumption in effect on that loan
Investor: Well, in that case, I can’t step in and save this property. The only way for me to make it happen is to assume the loan. Do you really want to foreclose on another loan?
Bank VP: I just can’t do it. Sorry.
Investor: Well, what if you just waived the “Due on Sale” clause in writing?
Bank VP: Hmm, that’s an interesting possibility….

Don’t be afraid to directly explain your hardship or needs to the bank! Banks are very nervous right now, and they will listen to you. Especially the smaller and local branches.

I am seeing assumptions being added and interest rates being reduced right and left. Or, like in the example above, banks will consider waiving a due on sale clause. This essentially makes the loan assumable without being officially assumable!

Be creative!

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Last Monday, one of my co-investors asked me how the multi-billion dollar economic bailout would affect Seller Financing and other similar financing techniques.

I think we are still a ways away from seeing much effect from the bailout on regular mortgages and loans. Even with relief, banks will still  be bloated with foreclosed properties they are desperately trying to unload.

So, how do you find a gre