REI Voice Magazine Oct-Nov 2011

Oct. - Nov. 2011 REI VOICE 1

LOOKING FOR A BROKER • EVALUATING ATTORNEYS • MAKE IT MEMPHIS

www.reivoice.com October- November 2011

$4.95

TEAM OF ACESWINNING BIG IN REAL ESTATE TAKES A TEAMTEAM OF ACES

WINNING BIG IN REAL ESTATE TAKES A TEAMTEAM OF ACES

WINNING BIG IN REAL ESTATE TAKES A TEAM

2 REI VOICE Oct. - Nov. 2011

Page 1(951) 780-5856 • www.TNGtrustdeeds.com

LOCATION: DESERT HOT

SPRINGS, CA

APPRAISED VALUE: $86,000

LOAN AMOUNT: $50,000

LOAN TO VALUE: 58.13%

PAYMENT TO INVESTOR: $375

RENT RANGE: $900-$1400

TERM OF LOAN: 8 YEARS

Property Facts:

3 BEDROOM, 2 BATHROOMS, 1,323 SF, 8,712 SF. LOT, BUILT IN 1990.

Realtor.com – Rents (Range = $900-$1,400)

# Rent Type/beds/bath/sqft Address

Lastseen

1 $900 TH 3 br/2 ba 1,294 sqft 66444 Desert View Ave Desert Hot Springs,

CA 92240

7/13/2010

2 $900 SFH 3 br/2 ba 1,412

sqft

13725 Richard Way Desert Hot Springs, CA

92240

7/13/2010

3 $900 SFH 3 br/2 ba 1,200

sqft

65635 Avenida Ladera Desert Hot Springs,

CA 92240

7/13/2010

4 $1,025 SFH 3 br/2 ba 1,371

sqft

13227 Calle Amapola Desert Hot Springs,

CA 92240

7/13/2010

5 $1,100 SFH 3 br/2 ba 1,385

sqft

10775 Ambrosio Dr Desert Hot Springs, CA

92240

7/13/2010

6 $1,200 SFH 3 br/2 ba 1,550

sqft

10761 San Miguel Rd Desert Hot Springs,

CA 92240

7/13/2010

7 $1,350 SFH 3 br/2 ba 1,904

sqft

64735 Pinehurst Cir Desert Hot Springs, CA

92240

7/13/2010

8 $1,400 SFH 3 br/2 ba 1,634

sqft

64513 Spyglass Ave Desert Hot Springs, CA

92240

7/13/2010

If you are interested in this trust deed investment and would like to see the entire appraisal,

please call the of ce at 951-780-5856 and ask for Craig Hill.

We currently work with several self-directed IRA companies to enable our investors to fund

these through retirement accounts. If you’d like a list of IRA rms, please call the of ce and

ask for Aaron Norris or Diana Barlet.

Below are a few recent examples of trust deeds available through The Norris Group.

Location: Fontana, CAAppraised Value: $170,000Loan Amount: $102,000Loan to Value: 60%Payment to Investor: $765 per month

Location: Desert Hot Springs, CAAppraised Value: $86,000Loan Amount: $50,000Loan to Value: 58.13%Payment to Investor: $375 per month

Location: Hesperia, CAAppraised Value: $92,000Loan Amount: $55,000Loan to Value: 59.78%Payment to Investor: $412 per month

Location: Victorville, CAAppraised Value: $75,000Loan Amount: $45,000Loan to Value: 60%Payment to Investor: $562 per month

To receive property information sheets of available trust deeds and a copy of our free book and DVD on trust deed investing, call our office at 951-780-5856.

Page 1

(951) 780-5856 • www.TNGtrustdeeds.com

LOCATION: FONTANA, CAAPPRAISED VALUE: $170,000LOAN AMOUNT: $102,000LOAN TO VALUE: 60%PAYMENT TO INVESTOR: $765RENTED: $1,650 PER MONTHTERM OF LOAN: 8 YEARS

Property Facts:Duplex with total of 3 bedroom, 2 Bathrooms, 1,470 sf, 9,000 sf. lot, built in 1949. One two bed-

room on bath unit and single one bedroom one bathroom.

If you are interested in this trust deed investment and would like to see the entire appraisal,

please call the of ce at 951-780-5856 and ask for Craig Hill.

Zilpy.com – Rents (One Bedroom) #

Rent Type Address

Lastseen

1 $775 TH 1 br/ 9351 Bennett Ave, Fontana CA, 92335 6/4/2010

2$750 TH 1 br/

Bennett & Randall, Fontana CA, 92335 5/8/2010

3 $750 SFH 1 br/1 ba 8569 Rosena Ave, Fontana CA, 92335 7/15/2010

4$850 SFH 1 br/

16550 Arrow Blvd, Fontana CA, 92335 7/3/2010

5 $650 SFH 1 br/ 8047 Cypress, Fontana CA, 92336 6/4/2010

6$775 SFH 1 br/1 ba Sierra Ave & Valencia Ave, Fontana CA,

92335

1/17/2010

7 $675 SFH 1 br/1 ba Sierra Ave, Fontana CA, 92335 1/8/2010

Zilpy.com – Rents (Two Bedroom) #

Rent Type/beds/bath/sqft Address

Lastseen

1 $895 TH 2 br/1.5 ba 875 sqft 9151 Date St, Fontana CA, 92335 7/15/201

0

2$945 TH 2 br/1.5 ba

16235 Randall Ave, Fontana CA, 92335 7/15/2010

3 $950 TH 2 br/1 ba 17898 Marygold Ave, Bloomington CA,

92316 5/8/2010

4$945 TH 2 br/

Randall Ave & Citrus Ave, Fontana CA,

92335 7/3/2010

5$1,100 SFH 2 br/1 ba

16751 Hawthorne Ave, Fontana CA, 92335

7/3/2010

6$850 SFH 2 br/1 ba 800 sqft 9210 Pepper, Fontana CA, 92335

5/18/2010

7 $850 SFH 2 br/1 ba 9258 Pepper Ave, Fontana CA, 92335 5/8/2010

8$800 SFH 2 br/1 ba 950 sqft 9142 Pepper Ave, Fontana CA, 92335

40374

9 $775 SFH 2 br/1 ba 875 sqft 9148 Pepper Ave, Fontana CA, 92335 40264

10 $950 SFH 2 br/1 ba9040 Cypress Ave, Fontana CA, 92335 40333

1 bedroom

2 bedroom

w w w.TNGt rustdeeds.com951.780. 5856

Cal i for nia D ep ar tm ent of R eal E s t ate, R eal E s t ate Bro ker Br uce N or r is F inancia l G roup Inc .

D BA T h e N or r is G roup D R E L icens e 01219 911

California Trust Deed Investing

Savings accounts, CDs, and stocks have offered dismal returns over the past several years. The Norris Group’s trust deed investments earn 9% return backed by discounted, cash-flowing, California real estate.

Since 1997, our experienced team of experts has originated California trust deed investments to private individuals, corporations, nonprofits, and retirement accounts (including IRAs).

Our large network of professional real estate investors borrow millions

of dollars every month and demand continues to increase. We scrutinize every deal and every borrower before a trust deed is ever presented to our private money sources.

You can feel good knowing your resources are helping investors clean up neighborhoods and create jobs while simultaneously creating profits for both sides of the equation. It’s a win-win.

Visit our web site or call today to find out how to receive our free book and DVD on trust deed investing.

Not everyone has the time or the expertise necessary to be a full-time real estate investor. But there’s still a way to take advantage of the unbelievable opportunity at hand. Welcome to the world of trust deed investing.

• 9%Return

• 1stTrustDeedsOnly

• NoPooling

• 8-YearTerm

• 60-65%LTVMax

• CashFlowingCAProperties

• IdealforRetirementAccounts(IRAs)

• ExperiencedTeamofExperts

Call 951-780 -5856 or v isit our web

site today for your

Free Book and DVD.

California Trust Deed Investingby

Navigat ing the prof i table wor ld of t rust deed invest ing with the help of one of Cal i fornia’s leading hard money lending companies.

B y B ru ce N o rri s

8.875x11-IE-Magazine.indd 1 10/16/2010 10:52:31 AM


ANALYSIS

6In Intimate Detail: Memphis, TNREI Voice publisher Geraldine Barry interviews Chris Clothier about the Memphis market. MemphisInvest.com is the largest real estate investment firm in the Mid-South and the largest, private property seller in West Tennessee.

AdVIcE

8Online Robbery Too many small businesses get duped into paying for something they don’t need and don’t understand. Before you venture into the world of online advertising, hear what on-line marketing expert Aaron Norris has to say.

BASIcS

11So You Think You Can Buy A Note? An expert in the note business and note investments, Jeff Armstrong, provides a seven step process for buying a seller financed note.

12Stamp Out Drive By Shootings!(the importance of having a skilled photographer on your team)

Tom Wilson, investor, business owner, and amateur photographer for over 50-years, shares his secrets for producing house photos that have buyers taking a second look.

FEATURES

16Assembling Your Foreclosure Dream TeamWhether investing foreclosures or non-distressed properties, Lloyd Segal, investor and foreclosure expert, suggests that you start by recruiting All Stars in the 12 needed disciplines.

20Questions to Ask Before You Look for a LawyerReal Estate Attorney Jeffrey Hare explains how matching the right lawyer to the task requires that you have a good understanding of your objectives and your business plan.

22Select an Active Team for Your Passive InvestmentsLori Greymont, CEO of Summit Assets Group, shares with you the four key “E” traits you should look for in a team you want to work with when you are buying “Turnkey” or “Passive Cash Flow” properties.

24Why an Investor Broker/Agent may Make All the DifferenceInvestor and broker Stuart Baeriswyl explains how the right broker or agent can be a tremendous asset to an investor’s team. He shows what to look for and how to leverage that team member.

26Managing a Winning Team EffectivelyYour attorney, broker, contractor, accountant, and other members of your team all have other clients and other concerns. Susan Hare, consultant and editor of REI Voice, explains how managing your investment team begins with respect.

30 Ger’s Top 5

INVESTOR RESOURcES

29 The best of the best. Phone/email/web contacts.

TABLE OF CONTENTSSOUND OPINION—WISE DECISIONS: VOICE OF THE PROFITABLE REAL ESTATE INVESTOR

WINNER

of the

National

REIA Award

for Best Print

Publication


As President of San Jose Real Estate Investment Association, (REI Voice is a division of SJREI), I can say unequivo-cally that ours is a thriving, vibrant or-ganization largely due to the team that I have strategically assembled. Flying solo, I could never have accom-plished the growth and momentum that we enjoy today. As you develop your team - your goal is to have the relevant professionals and experts in place to get the job done when you find a deal that works for you. I can make a call and have answers to my questions in minutes - that is so pow-erful. This is why we are encouraging you to take the time to build those key relationships that will help to propel you forward, and assist with accom-plishing your goals.

Building a team is not something that can be done vicariously through someone else, although they can point you in the right direction. I get requests from investors for re-ferrals to a “team,” in some cases I am asked for two referrals in sev-eral categories! While I am happy to

oblige, you benefit more from build-ing and developing those relation-ships yourself. Stretch, get outside your comfort zone, and connect with the professionals that you need to be successful.

Cheer your team on. Recognize the team members who go above and be-yond the call of duty for you. Validate and reward the performers and they will be motivated to make it happen again. This way you win, they win, win/win all round!

Geraldine Barry

P.S. I am happy to share that REI Voice

Magazine has won another award for

excellence. This time our publication was

honored to win an award from the 2011

Visual Media Alliance Showcase of Print/

Design. Thank you to our team Western

Web and our designer, Kevin Bell, for mak-

ing this award possible.

PUBLISHER’S NOTE

WELCOMEAt REI Voice we are delighted to share our newest issue. In this edition, we address the benefits of having a real estate team, but whether having a strategic alliance with your children’s teacher, or business partners, the team concept remains true - together we accomplish more. But in terms of real estate this is especially true, a team is a key factor for achieving success as a real estate investor.

GERALdINE BARRY

Publisher,President

of SJREI Association

REI Voice™ MagazineA publication of SJREI Association™

PublisherGeraldine Barry | 408-264-3198

[email protected]

editor-in-ChiefSusan Hare | 408-391-8068

[email protected]

Advertising sAlesMeghan Ben | 408-264-3198

[email protected]

Art direCtorKevin Bell

[email protected]

direCtor, AdministrAtionMeghan Ben | 408-264-3198

[email protected]

PrinterWestern Web

Western-Web.net

SJREI Association is a member of NREIA®

REI Voice™ is a publication of SJREI Association™ www.SJREI.org

Reproduction or use of any editorial or graphic is prohibited. To request reprints or reprint rights, contact [email protected].

REI Voice Magazinec/o SJREI Association4309 Sayoko CircleSan Jose, CA 95136www.REIVoice.com

Copyright © 2011 SJREI Association. All rights reserved.


National Real Estate Investors Association Recognizes

SJREI Association

2010 Award of ExcellenceFor Best Small REIA

and

2010 Honors of Merit Award for Membership Development2010 Honors of Merit Award for Printed Communications

2010 Honors of Merit Award for Electronic Communications 2010 Honors of Merit Award for Professional Education

2010 Honors of Merit Award for Community Service2010 Honors of Merit Award for Government Affairs

2010 Honors of Merit Award for Finance

The National REIA Awards for Excellence aim to encourage, recognize, and promote excellence among top performers in its member organizations.

Contributions to the real estate profession, innovation, and community service are a few of the criteria for success in the National REIA Award for Excellence.

SJREI Association’s superior publication, REI Voice Magazine, as well as its excellent speakers and member development were singled out as factors that significantly contributed to its win. Congratulations to Geraldine Barry, President of SJREI Association, and her team for their exceptional contributions to the field of real estate investing.


ANALYSIS

IN INTIMATE dETAIL:

MEMPHIS, TN


I am delighted to have the oppor-tunity to interview Chris Clothier, Vice President of MemphisInvest.com, the largest real estate investment firm in the Mid-South and the largest, private property seller in West Tennessee. As an experienced investor and some-one who lives and works in Memphis, Chris’ take on this market is very well grounded. Please enjoy our interview.

Q: How would you summarize the

Memphis housing market today?

The investment market is very good, but like any city with a lot of op-portunity, there is also a lot of opportu-nity for mistakes. There are some very risky pockets of the city where prop-erty can be picked up for the cost of a small used car and that is not where our company operates. We are con-centrating on the outskirts of the city in some of the suburbs and in newer parts of the city. Prices in these areas are hovering around mid 1990 values and represent a great opportunity for investors who want to earn a solid re-turn while eliminating as much risk as possible.

Q: Why is the Memphis a market to

consider investing in? it is certainly

not a city that comes to mind first for

investment.

First of all, we love being considered the sleepy little city on the edge of the Mississippi river and it certainly allows us to play up our “Southern Charm.” But savvy real estate investors know that many in the U.S. business com-munity consider Memphis a “first choice” city for business and invest-ment. Because of its central location in the country, low cost of living, and commitment by both government and civic leaders to promote the city’s ame-nities and cultural value, Memphis is thriving and growing. As the 17th larg-

est metropolitan area in the country, Memphis was recently chosen by two international companies as the loca-tion for their new world headquarters and the only location outside of Japan to house a heavy generator manufac-turing plant. Why does this matter? Memphis is the distribution hub of the U.S. and is home to five Fortune 500 companies, nine Fortune 1000 compa-nies and these distinctions mean jobs. Add all of these important consider-ations to the fact that cost of housing is 22% below national average and you get a market that has a low cost of en-try for a real estate investor and a huge upside for growth of capital and return on investment.

Q: How do the employment numbers

look currently?

We are hovering right around the national unemployment levels with fewer long-term unemployed and a real struggle for younger people to find work. That being said, local companies announced 5,000 new jobs in the first half of the year and the local govern-ment has been working hard to attract more businesses and more jobs.

Q: i discovered recently that 48%

of the population in Memphis rent?

Why is this significant and how do

you view it – is that a positive or neg-

ative thing?

I view it as an absolute positive due to the mindset that is already present with prospective tenants. The number is a little bit skewed because it takes into account some neighborhoods and parts of the city where every prop-erty is a rental. As I stated earlier, we have developed our business model by working in the outer sections of the city and the suburbs and the neighbor-hoods where we manage portfolios for our investors are made up of mostly

owner occupied homes. Still, the mindset in Memphis is that it is ok to rent. The negative stigma that may be present in other cities is not here.

Q: How are rents trending? Within our company, rents have

been trending up as a whole and much of that is attributed to the neighbor-hoods that we are investing in. During an audit of properties rented in Au-gust, we found that 37 of the 55 rental contracts closed during the month were on properties already in the port-folio. Of those properties, 65% saw an increase in rent from the previous con-tract, 25% remained the same and 10% decreased. This shows how rents and rental trends need to be tracked all the way down to the street location and not just by zip code or neighborhood.

Q: How are investors making money

in the Memphis market right now?

We are concentrating on nicer homes and middle class to upper middle class neighborhoods. So the properties and areas we start with for investors are more desirable. From there, we are huge believers in reducing deferred mainte-nance and how big those savings can be for a long-term investment. So we spend a lot more time and money on the renovation of an investment property. Our investors are attracted to these two unique messages from our company – invest in better properties, with more extensive renovations. Our investors find this essential to their ability to make money in this market.

Q: What have you learned from the

recent financial and reversal of for-

tune in the housing market?

Do not take anyone else’s opinions on faith! Regardless of who you are deal-ing with or how good the marketing, an investor’s own curiosity and willingness

An Interview with Chris Clothierby Geraldine Barry

CHris ClotHier

877-773-9998

[email protected]

to ask questions may be the best tool an investor has for long-term success. There are some fantastic opportunities in today’s investment market, but inves-tors have to protect themselves and do business with whom they feel a connec-tion. This is long-term wealth we are looking to build and that cannot be done with outrageous claims of high returns or fast fixes.

Q: What three things would you share

with people who want to become

investors or expand their investment

portfolio?

Surround yourself with the high-est caliber people you can find. The advice investors receive right now will directly impact their net worth in the very near future.

Seek the advice of those you sur-round yourself with on how to struc-ture your investments to protect your resources. Wealth is built by being able to use capital in such a way that it is protected and working for you at the same time. So do not operate in the dark – seek advice!

Investigate markets outside of your own. If you do not live in a market with affordable price points or high rates of return, there are opportu-nities and efficiencies that did not ex-ist in similar past real estate markets. You can find quality partners today who cater to investors from out of the area like MemphisInvest.com.


By Aaron Norris

Apparently, there’s now a magic wand pricy consultants can wave over my website to make it the go-to site for every potential customer in my indus-try. I have been inundated by offers of thousands of impressions, 100,000 subscribers, and top spots in Google by outside vendors selling their over-the-top marketing promises. I would love to hand over these responsibili-ties to another company, but know respectable search placement takes testing, measurement, and effort ... fol-lowed by even more testing, measure-ment and effort. Why on earth would I let someone experience that for me? (I know, I’m sick.)

In all seriousness, I think too many small businesses get duped into pay-ing for something they don’t need and don’t understand. If you’re venturing into the world of online advertising, it takes many forms and there are certain things you need to be aware of.

online ads

Impressions: An impression is the measurement of how many times something is viewed. Let’s pretend you’re reading this article on the fabu-lous SJREI blog. That counts as one impression. Let’s further pretend you love it so much, you come back to the blog and read it again in a week. That’s two impressions. Let’s go crazy now and say you loved it so much that you forwarded it to your friend Susan and she reads it. Three impressions.

Unique Hits/Unique Impressions: This takes impressions to the next level by getting rid of duplicate data. In the scenario above, you loved the article so much you read it twice. But, if we’re measuring only unique hits, it only counts once (but I still appreciate your enthusiasm). Tossing out one of these

duplicate views gives us two unique hits or unique impressions.

Clicks: Clicks are literally the user engaging with your online ad, link, or media with their mouse. Let’s con-tinue with our example and say in the article I’ve strategically linked to The Norris Group site. You’re in a rush so don’t click on my hyperlink. However, your friend Susan loves the article, but knows very little about The Nor-ris Group. So she decides to click on the hyperlink within the article. She’s instantly transported off of SJREI’s site and starts enjoying the content of The Norris Group. Our math up to this point: three impressions of the article, two unique impressions (you and Su-san), and one click.

Conversion: A conversion is when the consumer performs a pre-set goal you’ve defined. This is much more so-phisticated than a click and way beyond that of an impression. Let’s say on The Norris Group’s site, I’m measuring the amount of time a user stays on the site and the number of requests they make for information about trust deed invest-ments. If a user is on our website for more than twenty minutes, I am going to assume they fell asleep at the keyboard or they are engaging in some of our rich media (radio, blog, videos, etc.). I also count a conversion if a user fills out an application to receive more information about our trust deed investments.

Back to Hypothetical Land: Susan clicks over from SJREI to The Norris Group and stumbles upon our videos on trust deed investing. She spends 20 minutes going through the material and then notices a link to download a free e-book about trust deeds. She reg-isters quickly online and receives the information in her email.

Susan has just given me two conver-sions! And all from one click. That’s pretty impressive.

AdVIcE

ONLINE ROBBERYAaron Norris is Vice President

of the Norris Group where he is respon-

sible for business development

and production of TNG’s award

winning radio show, events, and educational semi-nars. Mr. Norris is also principal at Palisoul, Norris, + Conroy, a mar-keting and strat-egy team based

in Southern California and

hosts the market-ing and business

podcast, The Cocktail Party

Statement.

Keep in mind Susan isn’t a customer yet. I’m measuring defined actions I think she’ll take on her way to becom-ing a customer. This allows me to later look at how much money I’m spend-ing on different routes of advertising to see which one makes more sense. Furthermore, for you savvy CPAs and finance folks, I’m really cost account-ing and figuring out what my cost-per-conversion is and comparing not only to other online ads but also my other routes of advertising.

don’t Be a suCker

Sharing an embarrassing example of my own will illustrate why this kind of conversion tracking is so impor-tant:

Several years ago I ran an event and was over-joyed when a national real-estate-specific cable show agreed to run an ad on their website for $3,000 and an agreement to make them spon-sors of the event. I was told they had 300,000 unique hits every month and the usual advertising rate was over $6,000 per month. What a deal!


I created the artwork and submitted it anticipating that this website would create not only thousands of unique hits, but potentially hundreds of clicks. Even if it only had a 0.1% conversion rate, it was going to be a big success — that’s 300 conversions that would surely generate business.

Let’s take a minute to do the math. If I were to achieve a one tenth of a percent conversion, 300 conversions would cost me $10 per conversion ($3,000 paid/300 conversions).

After three months of running my ad on the site, I received three clicks. Yeah, you read that correctly. Three measly clicks. Zero new business.

Admittedly, I made a few amateur-ish mistakes. I assumed that:

• Large impressions would equate to some reasonable num-

ber of conversions.• Nationally-known media is

better than local.• Industry-specific, niche

media will generate more in-teraction.

Boy was I wrong. Lessoned learned. I could have done a few simple things before I signed on the dotted line to protect myself:

• Ask the site salesperson for referrals and overall happiness of current advertisers.

• Follow up by calling on advertisers currently appearing on the site.

• Really look at the website and see if the audience is who I’m trying to attract.

I’ve actually fallen for the large im-pression argument more than once. The second time was on a site that generated three million unique views and it didn’t fair much better than this embarrassing example. Bigger doesn’t necessarily mean better. Always be asking: Who is my target audience? Be very specific and be able to target and deliver your content to the right audi-ence. Think about industry, location, age, lifestyle, and even how likely your customer is to show up wherever you advertise.

Just because a site has a national brand behind it doesn’t mean it will create a ton of business. One fanatic about your company or brand will be far more effective than a generic ad on a semi-industry-related site. Choose your media outlets wisely and consider engaging your current customers first. Work from the inside and move out.

Even with industry-specific media, make sure it’s reaching your target audience. The Norris Group doesn’t advertise in many magazines because we’re not national and few magazines have the ability to only deliver in specific markets. I’d rather spend my budget target-marketing to specific lo-cales or creating great content that will spread throughout the web naturally ... and for free.

editors note:

No company can guar-

antee a top spot on

Google. Google’s own

marketing states “there

is no way to guarantee

top placement on a

search result page.” As

Mr. Norris points out,

beware of over-the-top

marketing promises.

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BASIcS

SO YOU THINK YOU cAN BUY A NOTE

Jeff armstrong

of armstrong

Capital has

been a note

broker and

investor spe-

cializing in the

seller financed

note industry

since 1991.

an expert

in the note

business and

note invest-

ments, Mr.

armstrong is

happy to share

his knowledge

with investors.

By Jeff Armstrong

Congratulations! You have decided that you want to buy a note. The first step is to under-stand what we are talking about when we say “buy a note.” We are NOT talking about funding a loan, creating a new loan, origi-nating a loan, giving someone a loan or buying a loan that some-one else is creating. In the Seller Financed Note Industry, when we talk about buying a note we are talking about buying an existing seller financed note at a discount - a first position seller financed note secured by real estate that came about when the seller of the property carried back the financ-ing to facilitate the sale of the property (also called a Purchase Money Mortgage).

Buying a seller financed note has its risks and its rewards. The risks could include the respon-sibilities and maintenance of holding a note such as worrying about: collecting the payments, default and foreclosure, destruc-tion and devaluation of the prop-erty, federal income tax reporting duties, bankruptcy / death / di-vorce of payor, abandonment of the property, deficiency judg-ments, IRS tax liens / other liens against payor, assumption of note by another payor, note holder may not be able to sell note if cash is needed and the note holder may spend the small payments frivolously.

The rewards might include a yield (return on investment) that can be much larger than other investments, an investment that is backed by real estate, no loss of initial investment (if the note

is purchased properly) and long term extreme passive income.

Once you understand the ad-vantages and disadvantages of holding a note, you then need to determine for yourself your cri-teria to alleviate the risks. Some of your personal criteria might include: What states, counties or cities are acceptable and what property types are acceptable (single family home, owner-occupied, rental, mobile home with land, etc.). You will also have to consider your pricing criteria such as minimum discount, min-imum yield requirement, mini-mum note size, maximum note size, maximum ITV, payor credit scores (minimum), whether you will purchase partial purchases or full purchases only, any ac-ceptable unusual circumstances (such as interest only, no pay-ments, zero % interest, etc.) as well as any additional criteria that you make for yourself. It is somewhat of an undertaking but well worth it to learn how to pur-

chase a note properly (preferably, from someone that is a current practitioner and actually pur-chases notes) so that, if the worst case scenario were to happen (the payor defaults and you have to foreclose), you at least can get your money back.

Buying an existing seller fi-nanced note is simple but not as easy as it sounds. You are not able to just go to the internet, find a discounted seller financed note and buy it. You are not able to just call someone on the phone and buy a note tomorrow. There is an entire process and proce-dures in place to purchase notes and for some it is a full time busi-ness.

seven step proCess of Buy-

inG a seller finanCed note

1) locating note Holders - Have

3-5 marketing methods working

all the time.

2) Compile information – fill

out a worksheet, get the story

behind the note, get the num-

bers, build rapport, find the

need, get back to them in 24-48

hours with prices.

3) verify information – pick up

a calculator; verify payment

amount, balloon if any, current

balance.

4) determine pricing – use your

yield, minimum discount, itv

and other tools to determine

your pay price and options and

prepare to positively present

options.

5) negotiate acceptance –

present the options. if no, then

put on follow up list. if yes,

then set the hook! Get a copy

of the note, settlement state-

ment and payor’s credit to firm

up the prices. Check credit.

renegotiate if prices need to

change because of your criteria.

prepare initial purchase agree-

ment and list of what you need

to continue. Gather all copies

and information for due dili-

gence package.

6) due diligence - Credit,

appraisal or Bpo, title,

property taxes, Hazard

insurance, City-data, etc.

7) Closing and funding –

prepare and send out closing

documents, record assignment,

and fund by sending checks or

wire to seller. send goodbye let-

ter to hazard insurance company

and servicing company if neces-

sary.

Some note buyers start out by brokering notes to other ex-perienced note investors to gain knowledge, experience and cash flow before buying their own notes. Once you decide to buy notes, you can see that there is quite a bit of work that goes on behind the scenes when a seller financed note is priced and purchased. It is one of the most unknown and unique real estate investments in the nation. If done properly, buying exist-ing first position seller financed notes can also be one of the safest investments.

Contact Jeff armstrong at

[email protected]

www.armstrongcapital.com


BASIcS

By Tom Wilson

I never cease to be amazed at the poor quality of many real estate photographs. Are you aware that the picture for many proper-ties for sale is literally taken from the driver’s seat of a car!? For only an extra 30 min. of your time, or $100 paid to a professional photographer, one of the most expensive products you will ever market can go from an “also available” to “schedule a showing today!” As a serious amateur photographer for 50 years, I’ve learned a few things that make a big difference. Let’s take a look at some common mistakes that are made and how to easily rectify them.

EquIPMENT

For starters I recommend a DSLR (digi-tal single reflex camera), such as an entry-level Canon Rebel ($300 used to $900 new). A point and shoot can take very fine every day shots, but this is not an every day sale. A DSLR allows for better lenses, filter attach-ments, an external flash, and what you see is what you get because you view the scene through the same lens and filter that shoots the picture. You can still set the camera to a point and shoot automatic mood and don’t have to know anything complicated.

A Wide Angle Zoom Lens. (can be pur-chased with the camera or alone for about $200). The lens should be at least 18mm minimum (or 28mm equivalent to the old 35mm film cameras). Wider is even better but 18mm is acceptable. It should zoom to at least 50mm. Most starter DSLRs come with this lens as the defacto standard, so they are readily available.

95% of point and shoots simply do not have

a sufficiently wide a lens to show all of a room. Period. Wide angle is the only substitute for when it is impossible or not practical to get farther back. I am flabbergasted at the number of ad photos that only show the toilet and a corner of the tub, or the nice family room with fireplace but don’t let you see that it is attached to the kitchen for a wonderful “Great Room.” A wide angle lens solves this problem.

Polarizer ($20-$50 at any camera store; the cheap one is just fine). A polarizing filter at-taches to the front of the lens and is used to cut glare and reflections. I rarely take a picture that includes sky, water or through a window with-out a polarizer. The front element rotates until you see that the picture has the least glare, and best contrast and saturation of color. It works best when you are perpendicular to the angle of the sun or rays. The improvement in the picture is dramatic.

External Flash ($50-$200). The built in flash is minimally acceptable, however, an external flash (attaches to the metal piece on top of the DSLR called a hot shoe) helps to fill in the shadows at the side of the scene taken with a wide angle, can fill a deeper great room with light more fully and evenly, and can be aimed up so that you don’t get harsh reflections from the bathroom mirror and other reflective surfaces.

COMPOSITION

Views. First of all, pretend you are the buy-er. What would you want to see in addition to the typical pictures? The neighbors’ homes, the street, the back yard, the local park, the de-velopment entrance, etc? Then include them in your portfolio of pictures! Consider framing some shots with a tree or doorway, use a step ladder for an elevated view, shoot the living

room from the stairs, and include artistic de-tail features such as a nice carriage light, flow-ers, garden arch, or fireplace.

No Dirty Laundry. Put away or shoot around the trash cans, close the toilet seat, cut the grass, request or pay the resident to straighten up be-fore you arrive, angle your shot to exclude the power pole, the dead bush, etc.

Lighting. Time your exterior pictures with the sun and weather. Don’t shoot an East facing home in the afternoon; go in the morning on a nice day when the front view is lit up. On the interior, go in the daytime, open the windows, turn on all of the lights, use your external flash and angle it to get more diffusion. You want the scene to look warm and lived in.

Staging. If the house is occupied get a stager to recommend what to change and remove. If the house it empty, get it staged at least with accessories if not furniture. As a minimum, take along a bag of small acces-sories to stage the kitchen and baths just for the shots. I stage almost all of my homes for owner occupant sales. Some agents tell me not to do it because most others in that mar-ket do not. Perfect. I always want my product to look and be better than my competition.

Using these techniques, you can take better marketing pictures than your competition that will make a big difference in your advertising to entice a prospect to take the next step. If you elect to farm it out to a professional you now know what to look for and what questions to ask. May your next pictures look like you could sell a thousand homes.

Contact tom Wilson at 408-867-1867

[email protected]

(the importance of having a skilled photographer on your team)

Tom Wilson is a thirty five

year real estate veteran who

has executed over $100M

and 1,700 units of real estate investments.

After thirty years of man-aging some of

Silicon Valley’s pioneering technology

companies, Mr. Wilson put his

business and management

experience toward fulltime investing. One of his compa-

nies, Wilson Investment Properties, offers high

quality, high-cash flow, fully rehabbed and

leased proper-ties to other

investors.

Stamp Out Drive By ShOOtingS!(the importance of having a skilled photographer on your team)

Stamp Out Drive By ShOOtingS!

exterior poor — digitally altered.

EquIPMENT LIST

dslr $300-900

Wide angle Zoom lens $200

polarizer $20-50

external flash $50-200

total investment: $700-1,000

amortized over 50 houses:

$20/house

some people believe photoshop is the solution to poor photography. the staff

of rei voice tested out this notion with the poor exterior shot taken by Mr.

Wilson. as you can see, after digital manipulation, the colors are brighter and

the shadows have lessened; however, it is impossible to digitally reframe a

poorly composed photograph, and there is no way to recapture the saturated

natural looking sky and lawn without having used a polarized filter in the first

place. Conclusion: start with a good photograph and use digital tools for very

minor touchups only.

exterior poor:

low light on front, poor angle, trash cans,

more driveway than home.

exterior better:

better lighting and angle, framed by

trees, pleasing lawn, polarized blue sky

interior poor:

low and uneven lighting, narrow angle

interior better:

wider angle, shows open floor plan,

rooms lit, external flash, table staged.

EXAMPLES



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FEATURE

Assembling Your Foreclosure Dream Teameditors note: “assembling your

foreclosure ‘dream team’” con-

tains excerpts from Chapter 22 of

foreclosure investing by lloyd segal,

scheduled for release Jan, 2012 by

aMaCoM. Brackets indicate areas

that were truncated due to space

considerations.

By Lloyd Segal

By Dream Team, I’m referring to a group of real estate professionals that have years of experience—a team of professionals available to provide as-sistance to you along the way. Profes-sionals you can count on when and if you need them. Professionals you can call or email when you have ques-tions, and will be there if you run into trouble.

If you’re going to become a suc-cessful investor, you’re going to need help. By asking professionals to join your team, you’ll have their experience to rely on, which will give you added confidence. Plus, it will allow you to do what you do best, find deals. Start your team by going out and recruiting all stars in each of the needed disci-plines.

Investor Tip: Your Dream Team doesn’t need to have meetings. I’m not suggesting that. It doesn’t have to be that formal. Certainly you can have lunch or coffee meetings with them individually, which is a good idea ini-tially. But in general, you’re just asking them to be available by phone or email to help you.

You only want experienced profes-sionals. In fact, make sure that you’re

the least experienced person on your team. You don’t want people training on your dime. You don’t want some-one who is just starting out and has a lot of spare time on their hands. Sure, they may be available, but what good is that if they are inexperienced? There are lots of little tricks of the trade, and you can’t afford to waste your time with someone who is just learning the ropes.

Your team members should include a real estate agent, appraiser, attorney, title officer, insurance agent, mortgage broker, home inspector, escrow officer, general contractor, and accountant to begin with. Later you can expand your team to include a landscaper, finan-cial planner, interior designer, general contractor, and several sub-contrac-tors, etc, etc. Don’t be surprised if it takes longer than you realized to put your team together. Good people are hard to find. It may take some time to assemble qualified professionals that are available to help you. Here is a short list of professionals that you should add to your Dream Team:

1. spouse/siGnifiCant otHer

The most important member of your team should first and foremost be your spouse or significant other. When things go right, they’ll be there to share the joy, and when things get bumpy, they’ll make the ride a little less painful. So your first recruit needs to be them. If your spouse is not on your team, it will make your invest-ing an uphill battle, and one that may eventually burn you out. So share your plans and goals with them first, and

make sure you have their full support and blessing.

2. real estate aGents […]

3. appraisers

You need to work with one or two good appraisers that can provide quick estimates of values, indicate market trends, and provide quality appraisal reviews. The appraisal industry has dramatically changed in recent years. Lenders and mortgage brokers can no longer select the appraisers they want to use. The new system is completely random. Nevertheless, you’re still go-ing to need a good appraiser on your team for quick estimates of value. In addition, you may want to hire them to review someone else’s appraisal. If you’re looking for a qualified appraiser, check with the American Society of Ap-praisers at www.appraisers.org.

4. attorneys […]

5. MortGaGe Broker

A mortgage broker is an invalu-able member of your team. I prefer mortgage brokers to bankers because they’re able to provide a wide variety of loan programs from many different lenders. You want someone who is fa-miliar with investor loans (non-owner occupied), and has years of experience working with conventional, govern-ment, construction, and hard money loans.

Once you have met one or two mortgage brokers who you feel com-fortable with, make sure you check their references and credentials. Go

online to your state licensing depart-ment to make sure they are licensed and that they are in good standing. Check the Better Business Bureau and chamber of commerce for membership and complaints. Plug their name (and their company name) into your favorite search engine, and see what comes up – if it is several lawsuits, then it’s time to recruit a new team member. Ask if they stay on top of their ever-changing in-dustry. Also, check their membership in organizations such as the National Asso-ciation of Mortgage Professionals, www.namp.org and the Mortgage Bankers Association, www.mbaa.org. You want long-term players that are committed to their industry, and to your success.

6. aCCountant […]

7. title insuranCe CoMpany

Title insurance companies are a real key to your success. They’ll coordinate with your real estate agent, escrow of-ficer, closing agent, and attorney, to insure your transaction. In preparation to issuing title insurance, the title com-pany will search the public records to determine if previous owners or lien holders have any claims encumbering the house that must be paid before you take title, including outstanding deeds, mortgages, deeds of trust, judgments, liens, and taxes. They can also help you address easements, boundary issues, and other prescriptive rights. So if you don’t want to search the public records yourself, your title insurance company will do it for you.

Some title companies assign title officers and customer representatives


trained as an attorney, lloyd segal is a mortgage banker,

author, real estate investor, and public speaker. Mr. segal

is the author of several books, including “stop foreclosure

now in California” (nolo press), “stop foreclosure now”

(published by american Management association), and

”foreclosure investing” (regency publishing). With his

extensive experience and writings on foreclosure and related topics, Mr. segal

is considered “California’s leading foreclosure expert” and has appeared

on numerous radio and tv shows throughout the united states. He currently

teaches foreclosure workshops for investors and/or realtors throughout

California.

Assembling Your Foreclosure Dream Team

Nov. 12Nov. 12

Buying ForeclosuresBuying Foreclosures

WorkshopWorkshopwithwith

Lloyd SegalLloyd Segal

Cupertino Inn

Register at www.SJREI.orgLearn--

●California's non-judicial foreclosure procedures

●How to buy short sales, trustee's sales, and directly from the lenders

●What to say (and not say) to distressed homeowners

●How to get started NOW

buying foreclosure properties

●And much, much more!

by areas. To find your title officer and customer representative, call and ask to speak to the ones assigned to your area. For your team, you want someone who is there to answer questions and resolve title problems smoothly and quickly.

8. HoMe inspeCtors […]

9. ContraCtors

Your team will also need experi-enced contractors and sub-contrac-tors. You may be able to handle the small basic stuff, but when it comes to major repairs like replacing drywall, pouring cement, electrical wiring, and putting on a new roof – hand those tasks over to professionals. Find sub-contractors in the following special-ties: 1. Major electrical work 2. Major plumbing repairs 3. Heating and cool-ing systems 4. Drywall replacement and repair 5. Roof replacement 6. Basement and cement repair 7. Carpet installation […]

10. esCroW

Escrow officers or settlement agents (depending on your state) are key ingredients to your success. Foreclo-sures are different from normal real estate transactions. There are differ-ent documents, different filings, and different payoff requirements. If the foreclosure is still pending, there will typically be lots of last minute phone calls, and frantic, emotional sellers. Escrow officers need to be very famil-iar with how foreclosure transactions work and the time limitations. They need to be available to answer ques-tions for you as they come up. And

most importantly, they must finalize the documents, distribute the money, and resolve any last minute issues that may arise at closing.

11. insuranCe aGent […]

12. partners

Depending on your credit worthi-ness and cash availability, you may need to locate potential partners who can bring the credit or money to a deal. Many new investors need the help of a partner to help finance their foreclosure transactions. You can find partners through the other members of your dream team, referrals from friends and family, and attending real estate investor clubs.

suMMary

Foreclosure investing is a business just like any other. You need to be dis-ciplined and professional, but don’t do it alone. Assemble a “Dream Team” of real estate professionals to help you. Your team should in-clude at least one (if not more) real estate agent, appraiser, attorney, mortgage broker, accountant, title officer, home inspector, and con-tractor. Make sure you’re the least experienced member on your team. Invite these real estate profession-als to join your team and make sure they’ll be available when you need them. Most importantly, your dream team should include your spouse or significant other.

Contact lloyd segal at

www.foreclosureWorkshop.net


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FEATURE


By Jeffrey B. Hare

Finding the right lawyer can take some time and effort. Even more im-portant is learning how to effectively use that lawyer as a member of your team. You need to know what role you want the lawyer to play in your overall strategy. Like doctors and other pro-fessionals, lawyers have different skills and specialties. Matching the right lawyer to the task requires that you have a good understanding of your ob-jectives and your business plan.

The key is to start early. It’s not cost-effective to wait until the situation is desperate. The best use of your legal dollar is spent avoiding legal prob-lems. In any case, if you need or want legal assistance, start by asking your-self the following questions:

WHy sHould i look for

a laWyer noW?

Are you planning ahead or reacting to a legal problem? If you are just get-ting started in a business or real estate transaction, a lawyer should be able to help you spot potential problems and provide useful guidance. If you have been sued or recently experienced a breakdown in a business transaction, you need an attorney who can help you review your options, and if neces-sary, take legal action on your behalf. Chances are that an experienced law-yer has handled situations like yours and can help you find a cost-effective solution – but not if you wait too long.

do you Have a Business proBleM

or a leGal proBleM?

Many disputes arising from real estate transactions involve primar-ily business issues rather than legal issues. It makes no sense to spend $100,000 in legal fees to resolve a $5,000 contract dispute, yet it hap-pens all the time! You are entitled to a resolution based on your legal rights, fairness and equity. Your lawyer can-not make business decisions for you, but a lawyer who is familiar with your business model and has experience in business and real estate transactions can provide valuable legal advice to help you make a cost-effective busi-ness decision. A cost-effective deci-sion is one that resolves the dispute in a manner that is fair to you, and not designed to drive up legal costs. Find out if your lawyer is familiar with your business model, understands business and real estate transactions, and has experience as an investor.

HoW Can a laWyer Help Me

proteCt My personal assets?

An experienced lawyer can help you protect your assets by advising you on the proper legal entity for your purpos-es. Don’t get hoodwinked into spend-ing tens of thousands of dollars on complex “asset protection” schemes that make rich dad richer and you poorer. A good business lawyer can help tailor a common-sense strategy that combines the right legal entity

(such as a LLC), written contracts, and other risk avoidance strategies to provide you with an appropriate level of protection for your situation. Most of all, a lawyer experienced in working with investors can help you identify and assess the risks associ-ated with your particular investment strategy or business model, and help you to minimize your exposure to those risks.

WHat kind of laWyer sHould i

Have on My teaM?

A typical real estate transaction involves a range of legal issues in the areas of real estate, land use, busi-ness transactions, financing, and contracts, as well as the ability to deal with a range of different per-sonalities. You need a lawyer who has both knowledge and experience in the required legal fields who is a good team player, but who will work hard to represent your interests. You need someone who appreciates the benefit of making the deal happen – while making sure your interests are protected. You need a lawyer who can provide you with relevant legal advice so you can make an informed decision to manage your risk. Finally, you need a lawyer who will stay focused on your objectives, and who will work well with other members of your team so that you can achieve your goals.

Contact Jeffrey Hare at

408-279-3555 [email protected]

Questions to Ask Before You Look for a Lawyer

Jeffrey B. Hare, Attorney at Law,

provides outcome-oriented legal ser-vices to real estate

investors, commer-cial and residential

property owners, and real estate develop-ers. As a real estate

attorney with over 25 years experience in ral estate and busi-ness transactions,

Mr. Hare provides his clients with a practi-

cal, cost-effective approach to solv-ing complex legal

issues, including due diligence, contract review, and nego-

tiations. He also has extensive experience

with entity forma-tions (LLCs, etc.), and

is very familiar with the use of self-direct-

ed IRAs for alterna-tive investments such

as real estate.


By Lori Greymont

Do you consider yourself the Lone Ranger, the Conqueror, the Hero? If so, may I suggest you avoid real estate investing! I am not trying to be harsh, I am just trying to make a point.

Real estate investing is a contact sport. You need to contact sellers, buy-ers, realtors, attorneys, accountants, renters, property managers, escrow agents, contractors and handymen, maintenance people and the list goes on. If you don’t have a winning team, you aren’t going to win. Why would you play a game if you didn’t intend to win?

I want to share with you the four key “E” traits you should look for in a team you want to work with when you are buying “Turnkey” or “Passive Cash Flow” properties.

Experience. When you are talk-ing with a company that sells turnkey properties, find out about the depth and breadth of their real estate back-ground. You want to hear that they worked in other kinds of real estate, have invested in other markets than the current market, and that they have extensive rehab experience. Experience is wisdom that is not wasted. A company that only has recent experience, or is only focused in one market, or does not have enough construction background, may not be the resource you need if something goes wrong. Planning for success is easy; it is preparing for the pitfalls that is vital.

Expert. You want to know that the people selling you a turnkey property are experts plain and sim-ple. How do you know? Listen to the stories they tell you. If you only hear about their successful invest-ments, they have not been in the

game long enough. Anyone who has been investing for any period of time has war stories. The question is how did they turn those battles around. If they survived and learned from the experience—they are experts!

Ethical and Enjoyable. Invest-ing you money into a property is a relationship that should last beyond the closing period. As I always say, time is the only resource you can’t replace. Invest your time in a rela-tionship with a team that you enjoy and is ethical. Trust your gut! Don’t over reason it and don’t talk yourself out of your first impression. Second, if you gut tells you that this is a great

company to work with, then confirm it with references. Ronald Reagan said it best, “Trust, but Verify.”

“E”ccessible. Nothing is more frustrating that needing an answer about your investment and then get-ting put into a voicemail queue, being transferred, transferred again, and still not get an answer to your ques-tion. When you have a question, you should be able to reach the team you are working with. If you don’t reach someone immediately, it’s fair to ex-pect a response the same day. Addi-tionally, you’ll want to meet with the team so you can work through your goals face-to-face. It may be impor-

tant for you to work with a company that is within driving distance, while realizing they have remote staff on the ground taking care of your property.

As you evaluate turnkey invest-ment companies, ask yourself if they possess all of the following traits: Experience, Expert, Ethical and En-joyable, and “E”cessible. If they do, you’ve found yourself a winner. Get in the game! Don’t let the clock run out before you make a move. Remember, time can’t be replaced and there is no better time to act than now.

Contact lori Greymont at

888-298-0652

[email protected]

FEATURE

SELECT AN ACTIVE TEAM FOR YOUR PASSIVE INVESTMENTS

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ing distressed assets and

coaches on creative

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company sells single Turnkey

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properties, Fix and Flip prop-

erties, and Bulk lists.


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FEATURE

By Stuart Baeriswyl

Building a team is an important compo-nent of any investment or business strategy.

Think about it, he who knows the right people gets the job done quickly, efficiently and seam-lessly. In terms of finding op-portunities to invest in real estate an investor-oriented broker or agent, often an investor them-selves, brings several important things to the table.

1. They understand what in-vestors are looking for: a solid investment that yields a good re-turn, and how to evaluate a deal from that perspective.

2. They study their markets, constantly screening their areas for properties that make sense. They deeply understand their

markets and the dynamics in-volved.

3. They look for specific data points critical to investors: loca-tion, school district, price per square foot, rental and occupan-cy rates, and more.

4. They physically visit prop-erties to determine condition and the condition neighboring properties that may affect value, thereby saving their investor cli-ent’s precious time. Essentially, an investor-oriented broker or agent does all the legwork—an important benefit for the busy professional this is very signifi-cant.

5. Investor brokers and agents have the resources (their own trusted team) to get the job done. They have relationships with financing partners who are

on top of the latest loans for in-vestors, and who can pre-qualify potential clients to ensure that they fit the criteria and eliminate road blocks before they occur. They know the best property man-agers. They drive business to their business alliance partners where relationships are strong and endur-ing. They are part of a team effort—when one is successful they all are, and this makes their work easier and outcomes more predictable for you.

As an investor, leverage your broker’s and agent’s connections and remember they are moti-vated to help you be effective and create win/win situations. Value their time and effort and you will be successful.

Contact Stuart Baeriswyl at 408-373-6766 [email protected]

WHY AN INVESTOR BROKER/AGENT MAY MAKE ALL THE DIFFERENCE

Stuart Baeriswyl is the investor’s broker. As a seasoned investor in Northern, California, he intimately understands the market and under-stands the property profiles that are most interesting to inves-tors. Mr. Baeriswyl is a licensed real estate bro-ker with CSR Real Estate Services. He offers pro-fessional services for investors and homeown-ers, conventional and private money loans, and business broker ser-vices.


Let Stuart Baeriswyl be your all-purpose Real Estate Broker.

Stuart BaeriswylREAL ESTATE BROKERDRE#: 01807909

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FEATURE


As principal of Susan Hare Marketing, Ms. Hare puts her 25 years of experience as a marketing and business strat-egist to work for her clients. A graduate of Santa Clara university, she has worked with numerous technology and software companies in Silicon Valley. Her consulting firm focuses on bringing big business methodolo-gies to small businesses and professionals. Ms. Hare is also a real estate investor.

By Susan Hare

Real estate investors are a little like record producers. They have a money making goal in mind and find a band that fits the bill. They bring in the ex-perts: stylists, back-up singers, sound technicians, and others to help with production. When everything works according to plan, they have a hit. However, if the band is a stinker, if the property you purchased is a stinker, then you’re in trouble from the start. But when it’s not, when you have a po-tential money maker in hand, how do you manage your team of experts to produce success?

realiZe you are not tHe Center

of tHe universe

Your attorney, broker, contractor, accountant, and other members of your team all have other clients and other concerns. “But I’m paying them,” you shout. Other people are paying them as well, and those other people may have an emergency that just can’t wait. Treat a team of independent con-sultants like hourly wage employees and you’ll get what you pay for and only what you pay for. However, treat them like the busy professionals they are and they’ll share valuable insight and expertise beyond asking.

Make yourself tHe Center

of tHe universe

Whatever you call them (contrac-tors, independent consultants, con-sulting professionals, vendors), good teamwork starts with relationships. Without relationship, the people on your team won’t care what universe you’re in. They’ll do their job, collect

their check, and move on to the next paying client. Relationships take time, which is always in short supply, so start with respect, which ought to be abundant.

Or you might walk in … And find out I’m gone –Aretha Franklin

At the time you engage a team member, show your respect by ex-plaining your business model and goals. Clearly articulate where you see that person fitting in and what your expectations are. Then ask about their business model. Discover how work-ing with you can help them reach their goals. For example, you hire a well recommended home stager named Bobby. At first surprised that you asked about her personal goals, Bobby opens up and tells you that she wants to be an interior designer. You have now estab-lished a respectful relationship with your new team member.

Let’s build on it. Ensure Bobby that she can use photos of your staged properties for her portfolio and offer to help her in any way you can. What kind of service do you think you’ll get from Bobby? Excellent, of course because she’s a professional. However, since she understands your business model, she may introduce you to someone selling a property that is perfect for your portfolio.

As you move further in to your working relationship, respect your team’s time. Don’t expect them to drop everything just because you called. In fact when you pick up the phone, avoid launching into the reason for your call. Instead, ask, “have I reached you at a good time?” or “do you have a moment to speak?” This small courtesy has nu-merous benefits. First, it shows that

you respect your team member’s time. Second, you waste your time when you talk with someone not fully engaged in the conversation. It is far better to wait until your contractor or consultant is mentally available to address your sit-uation than to push for attention that may be already stretched thin.

Speaking of time, be clear about your timelines and let everyone on your team know when your timelines change. There are some people who mistakenly believe that their every idea requires an emergency response. Yet, your team members are quick learners. As soon as they realize that everything with you is an emergency, they’ll behave as if noth-ing is an emergency. Avoid the “cry wolf” syndrome by prioritizing your requests and share those priorities. If everything on your list is #1, then solve your organi-zational problems before you disenfran-chise your team.

Good managers listen. This is as true when dealing with full-time staff as with a team of professionals. If you can’t respect the opinions of the peo-ple you’ve surrounded yourself with, then you’re surrounded by the wrong people. Listen to what your rehab contractor has to say. When he tells you that the subfloor needs replace-ment, replace it. When your attorney says, “that contract might open you up to liability,” believe her. Then go further and ask your team, what have I missed? Really listen to the answers, they just may surprise you. When they do, you’ll know you have built a respectful, working relationship that goes beyond a paycheck.

Contact Susan Hare at 408-391-8068 [email protected]

Managing a Winning Team Effectively


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SOUND OPINION—WISE DECISIONS: VOICE OF THE PROFITABLE REAL ESTATE INVESTOR

‘BUILD YOUR TEAM’ • ESTATE PLANNING • REO LIST SCAMS • BEHIND ON YOUR MORTGAGE?

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November 2010

HELP REAL ESTATE INVESTORS HEAR YOUR VOICE — ADVERTISE IN

REI VOICE MAGAZINE TODAY

Contact Meghan [email protected]

contact Meghan [email protected]


WHO YOU GONNA CALL?Need a house inspection, repairs, or property management? Need help from a legal, accounting, banking, or marketing professional who understands real estate investments? Ready to purchase investment property or performing notes? Make our advertisers and resources on page 29 your first call.

SOUND OPINION—WISE DECISIONS: VOICE OF THE PROFITABLE REAL ESTATE INVESTOR

AccOUNTING

michael gray, CPA408-918-3162

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BrOkerage/AGENTS

Csr real estate servicestuart baeriswyl DRE License # 01807909

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eNrOlled AGENTS

richard smith & Associatesrichard smith 408-446-5551

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INSURANcE

brighton financial groupvernon Williams408-931-6582

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irA services trust Company michael mcnair650-593-2221

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PROPERTY SERVIcES

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memphisinvest.comChris Clothier877-773-9998

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stonecrest investments llCsteve freeman408-557-0700

reo4sale.net

summit Assets grouplori greymont888-298-0652

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summitassetsgroup.com

the norris group

951-780-5856

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thenorrisgroup.com

true Wholesale housesJay hinrichs888-285-1900

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Wilson investment Propertiestom Wilson408-867-1867

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tomwilsonproperties.com

SHORT SALES

nick of time results teamnatalie Knowlton831-402-5107

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TRAINING & EdUcATION

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INVESTOR RESOURcESFort Worth DallasFort Worth Dallas


by Geraldine Barry

Geraldine Barry is founder and president of SJREI Association the premier educational and networking association for real estate investors in the Bay area. under Geraldine’s leadership SJREI has grown from a half-dozen investors to a vibrant three chapter organization with over 400 investors attending monthly meetings. SJREI won the Award for Excellence from the National REIA (Real Estate Investors Association) in several categories in 2010. As an avid investor herself, Geraldine has interviewed multiple real estate pros, many of whom have been guests of SJREI. In addition to leading SJREI, Geraldine is the frequent host of the radio program, Going Beyond Real Estate, a regular guest on the nationally broadcasted NTdTV, publisher of award winning publication REI Voice Magazine, and producer of the much acclaimed annual Bay Area Real Estate Expo. As a serial entrepreneur Geraldine is also a principal in Miles/Barry Contract Furniture serving corporations in the Silicon Valley. Additionally, she coaches business principals and CEO’s, guiding them in becoming more productive in less time in their leadership positions, helping them identify their core strengths, focusing on those to achieve their vision, and delegating effectively. Geraldine resides in Silicon Valley, and is the proud mother of Colin & Claire her two children.

Ger’s Top 5 1PRINCIPAL, CHRIS CLOTHIER from

MemphisInvest.com has built a very success-

ful business based on integrity and a cus-

tomer service driven team. Read my inter-

view with Chris to gain some knowledge

from his thriving operation in Memphis.

2REAL ESTATE BROkER, STuART BAERISWYL shares his strategies for

working with an investor’s broker/agent. As

an investor himself he knows the drill.

3WHEN BuILdING YOuR TEAM keep the

following in mind - don’t assume that busy

professionals will talk to you at length for

free - be mindful of their time.

4BE PREPAREd when meeting and talk-

ing with potential team members. Be clear,

concise, and specific about what you need.

Organize your thoughts in advance and be

prepared to articulate them succinctly when

the opportunity presents itself.

5CREATE A WIN/WIN SITuATION. If agents, brokers, contractors, attorneys,

accountants, and consultants assist you and

you are impressed with their service, refer

others to them.

Now go build your team!


At Brighton Financial our goal is to provide you with the best service and most suitable financial and insurance products to satisfy your needs. We don’t “sell” anything.

Although we carry many different lines from major carriers, one of our specialties is real estate-related coverage. Policies such as: Umbrella, Landlord Packages, Vacant Property, Course-of-Construction, HOA, etc are our mainstay.

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Brighton Financial & Insurance Services, LLC (408) 931-6582 • www.thebrightonfinancial.com

Vernon M. Williams Broker/Agent

4675 Stevens CreekBlvd., Suite 245

Santa Clara, CA 95051 Ph. (408)931 - 6582 Fx. (408)564 - 5405

[email protected]

MILES/BARRY CONTRACT FURNITUREWorkplace solutions to fit your business

MILES/BARRY CONTRACT FURNITURE is a full service independent furniture dealership providing quality, cost-effective interiors for businesses of all sizes.We offer creative, flexible solutions tailored to individual space requirements, budget and aesthetic concerns.MILES/BARRY CONTRACT FURNITURE’s experience in the industry brings you prompt, professional service for every aspect of your project. You will enjoy the care, accuracy and efficiency of working with just one contact.

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Call Barbara Miles at 650-359-5611 [email protected]


We are real estate investors closing hundreds of transactions yearly with a nationwide client base. We offer long term wealth solutions with comprehensive services available, including licensed property management, structure, and rehab management. We also offer coaching, mentoring, and educational programs for our clients.

We have purchased over 1,000 properties since 2004 for our clients. We currently manage over 820 rental properties throughout the Memphis area for local and out-of-state-investors, of which 95% are single family homes. And we currently have a 95.07% occupancy rate.

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Call today! Chris Clothier, Co-Owner, MemphisInvest.com

Documents

REI Voice Magazine Oct-Nov 2011