My Philosophy
There are many Philosophies in Real Estate. Some Good & some Bad. Here is some of my Basic Philosophy & “FACTS” as to what I base it on & over 30 years of
Experience.
1. According to statistics, “90% of all the people in the World who ever became a Millionaire made it Real Estate!” Which means every other Business, or Profession is in the other 10%. That is why I chose Real Estate for my Business.
2. Also, 95% of the people that get a Real Estate License are “OUT” of the Real Estate Business in the 1st year! That is the worse retention record I have ever heard of. What that says to me is; almost all Agents are “Untrained Amateurs” & out there doing no good, or hurting the clients with there lack of Education, No Mentoring, No knowledge of the Markets, etc.
The Education & Mentors/Teachers are there to be found, but laziness & lack of Professionalism & “Part Timers” is the norm. The average Agent in America does only “4 Deals” a year, 50% above that & 50% below that. If someone wants to Risk their Money with them, all I can say is; “A Fool & their Money are soon parted”!
The main reason that most Agents make some money & the clients are somewhat happy is; because the General Real Estate Housing Markets have gone up for a long time & the Agents are really nothing more then, “Order Takers”! Also, the “Going Up” part may also be an “Illusion”, as it may really be “Inflation” & not True Appreciation at all! We have Online Education for our potential Investors & even much more enhanced Education & opportunities for our Investors to help them understand, Investing in Real Estate!
3. “If you don’t owe any Money, you CANNOT file Bankruptcy as there is no one to list that you owe”! It is an old Truism that the Best way to Buy anything including & especially Investment Properties is for Cash & at Deep Discounts. Why is that not practiced more in Real Estate? Commercial Investment Properties run into the Millions to acquire these days, which is why Syndications are the Perfect way to Buy them.
4. Another saying is; “You Make your Profits when you Buy & you Realize your Profits when you Sell”. So a very Big part of my Buying Philosophy is to;
A. Find very motivated sellers.
B. Buy for all Cash & at very Deep Discounts.
C. An extensive Due Diligence & Inspection before closing on them.
D. Make sure there is a “Value Play” that can be done to Increase Cash Flow and/or Appreciation
5. The Government is the largest owner of Properties & next are Banks. They have ZERO emotion in the Properties. We have Great contacts with them & can get Great Deals especially these days. Of course I never forget the so called Retail Markets as there are Great Deals to be found there also.
“Cash is KING” especially these days. This is a Buyers Market & will be for some time. All Real Estate Markets are, “Local”. I look for “Emerging Markets” & I also operate in other Countries.
6. When you Buy for all Cash, that solves several potential problems;
A. We are getting the Best Price possible, as there are No Terms.
B. No Credit needed to Purchase.
C. No hassle with Banks & Forms & ever changing Lending Rules & Laws.
D. We have NO Mortgage Payments, or Debt Service! No possibility of Foreclosure!
E. We now have a Property, “FREE & CLEAR” that we can enjoy the Debt Free Cash Flow from.
F. We could establish a “Line of Credit” with any Bank & at favorable rates & terms as the Property is Free & Clear, for a variety of possible scenarios.
G. We can make our Value Play after Acquisition & with that Increase in Value, Refinance to get back the Investors Original Investment & most of the time with a “Non-Recourse” Loan (A Loan from a Bank that because of such a Low Loan to Value Ratio & such a High Cash Flow, the Bank looks to the Property only & NOT to the Investors in case of a default).
Almost any Banker would make a Loan on a Free & Clear property that is at 50% LTV or less. If not, we go to the next Bank that will! When you have a Free & Clear Property that is Cash Flowing like crazy, you are in the Drivers Seat & the Banks treat you much differently.
My Goal as the Syndicator is to get my Investors as Wealthy as possible with minimal Risk!
There has NEVER been a better time in my life & 30 + year Real Estate Career to Buy Commercial Investment Properties & I doubt there will be in the next 30 years!
The Real Estate Markets have dropped 40%, 50%, 60% & more depending on where you live over the last few years. Some say we are at the bottom. Some say we are nowhere near the bottom. There is nothing happening to make the Real Estate Markets go up.
The Banks are overflowing with Foreclosures. The FDIC has over 4 TRILLION in Assets to liquidate now & will close many more banks this year! The Banks are NOT loaning money, except in very rare occasions. Fannie Mae & Freddie Mac are overflowing with bad debt. Every Government Agency is overflowing with Foreclosures. All the Banks. All the Insurance Companies which are big Commercial Real Estate Lenders. The MLS & Commercial MLS services have years of Inventory on their books.
How are things suppose to get back to normal? Every dollar the current President & Congress spend, 50% is BORROWED! You know how that will affect Taxes in the Future, they will go way up! Real Estate has the Best Tax Advantages!
This is the time to Invest in Commercial Investment Properties! With a huge Inventory of Properties for sale (They must be very well screened & Managed) & the Banks not loaning any money anyway, Private Investors & Professional Real Estate Syndicators like myself, should be able to come out of this recession/depression Extremely Wealthy!
1. According to statistics, “90% of all the people in the World who ever became a Millionaire made it Real Estate!” Which means every other Business, or Profession is in the other 10%. That is why I chose Real Estate for my Business.
2. Also, 95% of the people that get a Real Estate License are “OUT” of the Real Estate Business in the 1st year! That is the worse retention record I have ever heard of. What that says to me is; almost all Agents are “Untrained Amateurs” & out there doing no good, or hurting the clients with there lack of Education, No Mentoring, No knowledge of the Markets, etc.
The Education & Mentors/Teachers are there to be found, but laziness & lack of Professionalism & “Part Timers” is the norm. The average Agent in America does only “4 Deals” a year, 50% above that & 50% below that. If someone wants to Risk their Money with them, all I can say is; “A Fool & their Money are soon parted”!
The main reason that most Agents make some money & the clients are somewhat happy is; because the General Real Estate Housing Markets have gone up for a long time & the Agents are really nothing more then, “Order Takers”! Also, the “Going Up” part may also be an “Illusion”, as it may really be “Inflation” & not True Appreciation at all! We have Online Education for our potential Investors & even much more enhanced Education & opportunities for our Investors to help them understand, Investing in Real Estate!
3. “If you don’t owe any Money, you CANNOT file Bankruptcy as there is no one to list that you owe”! It is an old Truism that the Best way to Buy anything including & especially Investment Properties is for Cash & at Deep Discounts. Why is that not practiced more in Real Estate? Commercial Investment Properties run into the Millions to acquire these days, which is why Syndications are the Perfect way to Buy them.
4. Another saying is; “You Make your Profits when you Buy & you Realize your Profits when you Sell”. So a very Big part of my Buying Philosophy is to;
A. Find very motivated sellers.
B. Buy for all Cash & at very Deep Discounts.
C. An extensive Due Diligence & Inspection before closing on them.
D. Make sure there is a “Value Play” that can be done to Increase Cash Flow and/or Appreciation
5. The Government is the largest owner of Properties & next are Banks. They have ZERO emotion in the Properties. We have Great contacts with them & can get Great Deals especially these days. Of course I never forget the so called Retail Markets as there are Great Deals to be found there also.
“Cash is KING” especially these days. This is a Buyers Market & will be for some time. All Real Estate Markets are, “Local”. I look for “Emerging Markets” & I also operate in other Countries.
6. When you Buy for all Cash, that solves several potential problems;
A. We are getting the Best Price possible, as there are No Terms.
B. No Credit needed to Purchase.
C. No hassle with Banks & Forms & ever changing Lending Rules & Laws.
D. We have NO Mortgage Payments, or Debt Service! No possibility of Foreclosure!
E. We now have a Property, “FREE & CLEAR” that we can enjoy the Debt Free Cash Flow from.
F. We could establish a “Line of Credit” with any Bank & at favorable rates & terms as the Property is Free & Clear, for a variety of possible scenarios.
G. We can make our Value Play after Acquisition & with that Increase in Value, Refinance to get back the Investors Original Investment & most of the time with a “Non-Recourse” Loan (A Loan from a Bank that because of such a Low Loan to Value Ratio & such a High Cash Flow, the Bank looks to the Property only & NOT to the Investors in case of a default).
Almost any Banker would make a Loan on a Free & Clear property that is at 50% LTV or less. If not, we go to the next Bank that will! When you have a Free & Clear Property that is Cash Flowing like crazy, you are in the Drivers Seat & the Banks treat you much differently.
My Goal as the Syndicator is to get my Investors as Wealthy as possible with minimal Risk!
There has NEVER been a better time in my life & 30 + year Real Estate Career to Buy Commercial Investment Properties & I doubt there will be in the next 30 years!
The Real Estate Markets have dropped 40%, 50%, 60% & more depending on where you live over the last few years. Some say we are at the bottom. Some say we are nowhere near the bottom. There is nothing happening to make the Real Estate Markets go up.
The Banks are overflowing with Foreclosures. The FDIC has over 4 TRILLION in Assets to liquidate now & will close many more banks this year! The Banks are NOT loaning money, except in very rare occasions. Fannie Mae & Freddie Mac are overflowing with bad debt. Every Government Agency is overflowing with Foreclosures. All the Banks. All the Insurance Companies which are big Commercial Real Estate Lenders. The MLS & Commercial MLS services have years of Inventory on their books.
How are things suppose to get back to normal? Every dollar the current President & Congress spend, 50% is BORROWED! You know how that will affect Taxes in the Future, they will go way up! Real Estate has the Best Tax Advantages!
This is the time to Invest in Commercial Investment Properties! With a huge Inventory of Properties for sale (They must be very well screened & Managed) & the Banks not loaning any money anyway, Private Investors & Professional Real Estate Syndicators like myself, should be able to come out of this recession/depression Extremely Wealthy!
That is part of my Philosophy!