The Creating Wealth Show Blogcast

Latest Episodes:

CW Blogcast 39 - Break it down - foreclosure rehab. May 02, 2013

Show notes

We talked earlier about the four critical areas of rehab when you’re considering a foreclosure purchase for your income property portfolio. It’s good to be at least somewhat aware of these four areas. After all, accurate estimates could be the key to profitability.

Most foreclosures recommended by Platinum Properties Investor Network are not going to have major trouble in these areas but it’s a good idea to at least be aware of the possibility.

Roof – The primary areas for concern are wood rot, termite damage, and loose shingles. Also check the ceiling for water stains, holes, or discolorations. This seemingly innocuous evidence could be hiding BIG problems underneath.

Structure – Walk around the outside of the property looking for cracks in the foundation or, worse, an entire portion of the house sagging. Structural problems can mean big bucks, maybe even into the tens of thousands of dollars to fix. It might be a deal killer.

Plumbing – Inside the house, look under the sinks in the kitchen and bathrooms. Once again, you’re checking for evidence of water damage. Outside, pay attention to large trees growing near the house. An intrusive root system could have you writing a large check for plumbing repairs in the future.

Electrical – Pay a good electrician to check out the house and consider it money well spent. Besides being potentially dangerous, there’s nothing more frustrating than a house with faulty wiring.

Slow down during your mad rush to buy a great foreclosure and make sure to thoroughly inspect all four of these areas during your preview of the property. As we’ve said before, it’s the attention paid to details like these that can make the difference between cash flow heaven and money pit purgatory.

Choose wisely.

CW Blogcast 38 - Don't miss these 4 areas when rehabbing foreclosures. May 02, 2013

Show notes

Until recently, Platinum Properties Investor Network didn’t like to recommend foreclosures to our network. With the generally low quality of the selection, it was just too much of a risk to our reputation for finding excellent properties. But, for reasons you’re probably aware of, things have changed a little bit.

Much of our track record for success can be traced to our ability to quickly react to changing market conditions. We now take foreclosures into consideration and even recommend buying them to our clients in many of the 41 local markets around the country we specialize in. With newer model homes, ridiculously low prices, and the high quality brought about the national foreclosure meltdown, it would have been silly to stubbornly refuse to consider them.

But, even with newer foreclosure homes, some rehabbing is normally needed. Think of it like this - even if you spend $5,000 or $10,000 to bring your foreclosure property up to rental standards, it’s still a great deal.

The four critical areas to pay attention to when you’re during the walk-through research stage are:

1. Roof2. Structure3. Plumbing4. Electrical

These will be your biggest expenses and all require permits. You need accurate estimates! Next time, we’ll talk about each in more detail.

CW Blogcast 37 - More income property investing myths. May 01, 2013

Show notes

Just when you thought we were done proving how easy it is to create wealth in real estate through income property investing, we’re back with three more reasons.

Reason #4 – “Realtors are a difficult bunch.”

This is very NOT true when you work with Platinum Properties Investor Network. Our local area managers are real estate agents who LOVE to work with you. If they don’t, we quit sending them business and, believe us, they want our business.

Reason #5 – “I might lose money.”Real estate is way safer than the stock market. It’s funny. The pattern we’ve noticed over more than two decades in this business is, the more you education you get, the less risky real estate is. It’s a calculated risk, one you can control much better than Wall Street.

Reason #6 – “I don’t know what to do.”You don’t need to know it all. You just need to know who to ask. Don’t let analysis paralysis get in the way of the rest of your life. It’s that important! Come to a Platinum Properties Investor Network seminar, then set up an appointment with one of our expert investment counselors and then do it. Pull the trigger. Buy your first property. We’ll hold your hand if needed and advise you every step of the way.

CW Blogcast 36 - Income property investing myths. May 01, 2013

Show notes

Why aren’t more people investing in income properties when it’s the most lucrative, safest choice in history? Good question. Probably because people would rather watch television than improve their financial condition. Sure, everybody says they want to get rich but what are they actually doing about it besides flapping their gums?

Talking wistfully about something you have taken no action to achieve is called whining. Don’t go into the Green Parrot Bar in Key West with that attitude. It’s an official ‘no sniveling’ zone.

So let’s take a quick peek a some of the more common excuses people use to not get wealthy in real estate.

Reason #1 – “I don’t have enough cash.”Sorry. Not a legitimate reason. Find a great deal and cash will find you. Negotiate the purchase price! Take equity out of your home – it’s losing value by the day in there anyway! Have you looked into the sweet $5,000 down deal Platinum Properties Investor Network has arranged in Atlanta? Next!

Reason #2 – “I don’t have any time.”Sorry. Everybody’s got time. You need to prioritize. We’re talking about your financial future here. Surely, it’s more important than three hours of slumming in front of the television or computer. Toss the kids and spouse in the car on a Saturday afternoon and cruise the neighborhoods looking for ugly houses for sale.

Reason #3 – “Everyone says this stuff doesn’t work.”Everyone? Ask Donald Trump, Jason Hartman, or Steve Wynn. True, you’re probably getting a skewed perception of reality if your primary source of information is late night tv. This stuff does work when you do it right.

To learn how to do real estate the right way, check out www.JasonHartman.com for The Complete Solution For Real Estate Investors™

CW Blogcast 35 - Get serious about on-time rent. Apr 30, 2013

Show notes

Many contracts say that rent is due on the 1st of each month but the late charge doesn’t kick in until the 10th. So it’s no big deal if the check arrives on the 5th, 6th, or even the 9th. Right? We hate to break the bad news but your leniency on rent is only going to encourage more delinquency. You've heard this before from us - human nature!

Maybe it’s time to get more serious about on-time meaning ON TIME! Here’s an idea crazy enough that it just might work. Don’t give them nine days of wiggle room. If the due date is the 1st, then apply a late charge on the 2nd, and don’t make it a paper tiger. Actually charge it and make them pay it.

This is your livelihood they’re screwing around with.

Tough? You bet, but it works! Of course, you don’t want to sneak this past them during the contract signing phase. Make a big deal about it. Communicate the rules clearly. Have them circle and initial the part of the contract that outlines rent payment dates and give them a separate document to take home.

Take serious and, more importantly, quick action on late payments. No excuses and no negotiations to catch up next Friday. If they say it’s in the mail, ask for a substitute check and send the other one back when it arrives. Another tactic is to have them agree beforehand that you may contact their “emergency” references in the event of a late payment. This is excellent payment stimulation.

Of course, if you invest in income properties the right way, like Jason Hartman and Platinum Properties Investor Network™ recommends, your property manager will be the one dealing with all this. Just make sure he has clear instructions on how to proceed.

CW Blogcast 34 - Too late to be a millionaire mobile park owner? Apr 30, 2013

Show notes

If you were starting out in real estate investing today, which direction would you go? At Platinum Properties Investor Network™, we believe that income properties are a great way to start, but another alternative to consider is a mobile home park. When we say mobile home, we mean either a traditional trailer or manufactured home.

The voracious demand for affordable housing and financing is likely to keep the demand rising into the future. Some people consider a mobile home park the closest thing you’ll find to a gold mine. So, should you buy every one you come across? Probably not. You’ve got to have some standards but here are reasons we think this is an excellent strategy.

With environmental paranoia running at a fever pitch, it’s getting harder to develop a new park. Think zoning, environmental issues, inspectors – then once you’re ready to throw the gates open, you start out with 100% vacancy.

The positive side of this is it makes existing mobile home parks that much more valuable. Why do we call it a gold mine? First of all, you’ve got an income producing asset already in place while local and national bureaucrats (through excessive regulation) are working tirelessly to prevent any competition to enter the area. Does it get any better than this? Not hardly but you still need to do your proper research. Don’t snap up the first deal to come along. Our expert counselors will be glad to talk to you about the kind of investing that really works. Please call 714-820-4200.

CW Blogcast 33 - Are real estate seminars a rip-off? Apr 29, 2013

Show notes

Not ALL real estate seminars are a rip-off but you can get taken to the tune of several thousand dollars without getting much actionable material in return if you’re not careful.

Here are a few things to watch out for:

1. Be wary of price extremes. Very cheap or very expensive seminars should be examined closely, although for different reasons. If the event is cheap or free, face it, there will be a hard sell involved. Getting people into a room is expensive, so the promoter has to sell something to make it worthwhile. Conversely, if the seminar is costly, $1,000 per day and up, you should expect follow-up training or substantial materials.

2. How many bodies in the room? If you’re paying $5,000 for a seminar/boot camp, you should expect a small class size. Otherwise, you will not be receiving the individual attention you might expect, and will likely be disappointed.

3. Can the guru teach? As all of us who have sat in a classroom at some point in our lives know, some people are just bad teachers. They may have the knowledge of the universe in their heads, but what good does it do if the class is face-down, snoozing in a pile of drool? Talk to other people who have attended the event or find a way to hear the speaker first. Can you learn from that voice?

Pay attention to the above and, chances are, you’ll pick a great seminar. As an education-oriented company, Platinum Properties Investor Network™ strongly encourages you to attend one of our monthly educational events, Creating Wealth in Today's Economy. Moderator Jason Hartman is both a highly successful income property investor and acclaimed public speaker. To learn more about how you can create abundant wealth in your life through real estate, call one of our expert investment counselors at 714-820-4200.

CW Blogcast 32 - Don't be tempted to buy real estate with cash. Apr 29, 2013

Show notes

Your broker has turned you on to an incredible income property deal that will cash flow big time from the beginning because it’s already leased long term. You’re so excited you might pass out. There’s cash in the bank to cover the purchase. Pull the trigger?

Not quite that fast.

Despite antiquated conventional wisdom to the contrary, buying a property with cash is not something a savvy investor would do. The problem with buying on a cash basis is that you short circuit the benefit of a beautiful little concept called leverage. Pay attention. This could make a big difference in your life.

Let’s say you bought a property for cash for $100,000. One year later, the value has gone up to $110,000, so you sell it and bank a $10,000 profit on the deal. That works out to a 10% annual profit. Nice but not outstanding.

Now let’s do it using leverage. In this scenario, you put down $10,000 on the deal and finance the other $90,000 through the bank. When you sell it one later for $110,000, you have bumped up your profit to 100%! You reaped the same $10,000 profit on the sale but only had to use $10,000 of your money to do it. The real beauty is you don’t have to tie all your money up in one property. You could buy 10 properties with a $10,000 down payment on each. What if, one year later, they all went up an average of $10,000? That’s one hundred grand, buddy.

Imagine the possibilities.

CW Blogcast 31 - Get off the fence, investors. Apr 28, 2013

Show notes

If you’re part of the crowd of millions tired of getting slapped around by Wall Street chicanery, it’s only natural to be hesitant about committing more money to alternative investments, especially when you’ve been brainwashed your whole life to believe stocks, bonds, and mutual funds are IT. There is no other investment class.

At Platinum Properties Investor Network™, we’re here to tell you real estate is not an alternative to the stock market. The word “alternative” implies the two concepts are generally on the same playing field when it comes to value.

Wrong!

Real estate, especially income property investing, has proven itself to be history’s best choice to earn the kind of return on your money that can make you independently wealthy. But people have been bitten hard by Wall Street lately and are hesitant to enter the fray. Remember this - real estate is not a boom and bust asset. Think of it as an infinite progression of waves. It’s never going to go away and stay gone. It can’t because one of the basic necessities of life is a shelter.

We can live without computers. We can live without box store discounts on everything under the sun but we can’t live without shelter. Now would be an excellent time to get off the fence and invest in income property. If you’re curious how to get started in this type of investing, go HERE for a free education and to listen toThe Creating Wealth Show with Jason Hartman.

CW Blogcast 30 - Free market? Not so much. Apr 28, 2013

Show notes

On The Creating Wealth Show with Jason Hartman, recent guest Thomas Woods reflected upon the prevailing conventional wisdom which says the free market has failed, thus intervention by the federal government is necessary to right the ship of economy.

Nothing could be further from the truth. This economy cannot be blamed for the fiscal meltdown because there has been no free market in the United States since the early to mid 1920’s.

Think about it. Can any country which has a central bank manipulating interest rates truly call itself a free market? Our present troubles can be traced to previous fed chairman, Alan Greenspan, who made credit artificially easy and cheap. Woods pointed out that when a country’s monetary authority creates money out of thin air, tampers with the money supply, it tends to lead investors towards massive errors in judgment. People get reckless. It doesn’t help when they come to expect a bailout when their endeavors crash and burn.

The dot com boom of the late 1990’s was a perfect example. Wall Street and venture capitalists were throwing money by the fistfuls at any start up that tacked “com” after their name. A few survived and could actually be called good investments but most are nothing more than digital roadkill.

Something must be amiss. A recent release of the scale of economic freedom showed the US is in danger of falling out of the top 10. And the trend is worsening. China is moving towards freedom while we seem to be running away from it.

Whadya gonna do?

Why not check out our sister website Holistic Survival and learn how to protect the people, places, and profits you care about in uncertain times?

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