Thursday, March 31, 2016

Greater Roanoke Real Estate Industry Predictions

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Real Estate Investors of Virginia has another awesome meeting lined up for you. Our special guest speaker will be REI member and President of the Roanoke Valley Association of Realtors, Donna Harris.

Donna is going to do a presentation on a 10 year analysis of real estate in the valley. We will look at past and present conditions to collectively make determinations on what we see for the future.

What’s happening in the real estate industry in Roanoke? Are we going up or are we going down? You can’t effectively manage your money unless you know what the future holds for you. Those who closely monitor the industry and determine what is going to happen before it happens become very wealthy over time.

Millionaires are made in times of boom and bust. At the same time those who aren’t watching often lose tremendous amounts of wealth.

When times are good and real estate is expected to rapidly incline in value, landlords stop buying. Properties get too expensive to buy. They no longer cash flow in these times. Smart investors switch to flipping properties during booms. If the real estate industry is stagnant or going down the strategy is to buy and hold which is, for those who don’t know, to be a landlord.

Since the big crash in 2008, landlording has been absolutely incredible. Locally in Roanoke we have not had a good flipping economy. Some towns in the country have but that has primarily happened in tourist areas like Las Vegas or other areas that had very strong job growth such as Houston Texas or the oil gas areas of North Dakota.

Locally rents have been going up for a long time now and we’ve had a great ride. How much longer can it go? We are on the edge of another big recession right now. One that is expected by several economists to be a Great Depression type event. A recession happens on average every 6-8 years. We’re past that so it’s due.

Lets put our minds together this week and lay out a good guesstimation of where we are headed so we can have our money invested in the right areas.

Come on down, don’t miss this meeting. All are welcome. Fill your mind with good productive information that will personally benefit you. Come socialize with a group of friendly like minded people every Tuesday evening at Real Estate Investors of Virginia, 6:30 pm to 8:00 pm at Corned Beef & Co, Downtown Roanoke City.

Monday, March 28, 2016

Honorary Member of REI of Virginia Passed Away

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Dear REI of Virginia members,

I’m sorry to break the bad news but I have been getting reports from people that our honorary member, landlord Frank Roupas has passed away. There is no official report but I have heard through the grapevine that Oakeys has him. I’ve checked their website but they don’t have an obituary listed. From what I understand he wanted to keep things low profile. We love Frank and it’s important that other landlords know.  I hope these are rumors that are wrong but I suspect they aren’t.

I have had several members tell me over the past couple months that Frank hasn’t been available for their calls. I then noticed that I didn’t see him sitting at zoning court. Frank loved to go to watch zoning court. It was one of the entertaining things that he never missed.

I called Frank a week ago. Left him voicemails on both of his phones saying I was concerned about his health as people are saying he isn’t answering the phone. Frank called me back and left a voicemail the next day that he has been dealing with a terrible back injury but he is now getting a lot better, that he’s feeling good, and will be back on his feet soon. It appears that Frank didn’t make it back on his feet.

I know a lot of you knew Frank. Everyone in the real estate industry ends up eventually meeting Frank. He was a real character. Frank had some great stories. And he told them with so much enthusiasm.

I sure hope these rumors aren’t true, but I’m pretty sure they are. The Roanoke Times is researching the coroner records via a freedom of information act as you read this. Sammy Oakey of Oakey’s Funeral home put out a tweet this past Friday that a “Well known citizen died overnight. His Pre-need instructions were to NOT put any notice in the newspaper and NOT tell anyone.”

I have called Frank several times over the last couple of days. On all of his phone numbers. Frank always calls me back. Always.

My heart goes out to Frank. He is a well respected landlord in our industry. He’s going to be missed by many…

Thursday, March 24, 2016

We Have Money To Fund Your Real Estate Flips & Rentals

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Ladies and Gentlemen,

Wow… what a great meeting we had last week! We were a little worried about it as you never know on a new location how many will show up. It was a tremendous success. It’s been a long time since we were drawing 70 people to a weekly meeting. No real estate investment association in the state can do that. The big ones are lucky if they can get 50 to 60 at a monthly meeting. So congrats to Real Estate Investors of Virginia for that!

REI of Va is making sure that your deals are fully funded.

We’ve got another great meeting lined up for you. When the topic is about money we always pull in big crowds.

This week our special guest speaker will be a guy by the name of Jim Preuss. Jim is head of business development for Lima One Capital.

As you may know, there are a few ways to get funding for your real estate venture.

1. You can go to a regular bank such as the Bank of Botetourt. Banks expect that you have good credit. In return they will give you a loan with a very favorable interest rate.

2. The other way that you are limited to if you are having difficulties getting financing from the bank is to use a “hard money lender”. That is if you don’t already know a wealthy person who’s willing to be your personal private money bank.

We selected Lima One Capital to come talk to us because they have some very interesting packages. One thing is their rates are unbelievably low for a hard money lender. Typically you are looking at 12 to 15 percent interest with 5 points down on hard money. Lima One’s loans look more in the range of private money which is higher than a bank but quite a bit lower than normal hard money.

Lima One has a program called Fix 2 Rent where they will give you money to buy the deal and money to rehab it. Then once it’s finished they can roll it into a different loan they call the Rental 30.

They have you flippers and wholesalers covered as well. They have a FixNFlip program that gives you money to purchase and fix up a property. They have money for people who want to build a house on a lot they own. They have money for people who already own property and want to cash out and get some funds for another deal they find or something else. They even have money called transactional funding that wholesalers use to do double closings.

As with the last meeting, if you have plans…. cancel them. Make REI of Virginia every Tuesday as a meeting you will never miss. Your rest of your life revolves around wether you have an REI meeting or not.

The keys to unlocking success in your life require jumping in real estate investing with both feet. Surround yourself with other successful like minded people. Don’t let anyone tell you that you can’t do it. Your mind once a week directed towards bettering yourself will lead to your success. It has for me and I can promise you it will for you.

I have been excited about my career and life in general ever since I was able to see my path to success. That’s why you see me get wound up from time to time. I am super enthusiastic about what I do. I live and breathe real estate and have a lot of fun doing it. I consider myself lucky to know and be good friends with so many successful people.

Come on out this Tuesday to Corned Beef & Co, Downtown Roanoke City. The address is 107 S Jefferson St, Roanoke, VA 24011.  I suggest you leave early to make sure you get parking if you are planning on getting a free spot on the street. The parking garage called Car Park is only $2.50 on the roof top after 5pm.

Be there or be square!

Tuesday, March 15, 2016

Wealth Seminar: How to Comfortably Make A Million Dollars in Net Worth In 5 to 10 Years in the Real Estate Industry

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Where:

This will be the first meeting at our new trial location. We have outgrown our last location and will be moving to somewhere that will fit more people. Jersey Lilly’s was great to us. However they don’t have the room to fit our rapidly growing group. We will be meeting at Corned Beef and Co, Downtown Roanoke City. The address is 107 S Jefferson St, Roanoke, VA 24011.  I suggest you leave early to make sure you get parking if you are planning on getting a free spot on the street. I have been told that the parking garage called Car Park is only $2.50 on the roof top after 5pm.

When:
This meeting will be Tuesday March 22nd 2016. We meet every Tuesday evening. Our meetings start at 6:30pm and last until 8:00pm. If you are new to investing I always suggest getting there early and leaving late. We hang around and talk and these times are great to get to know other investors and get your questions answered.  We're all nice like minded people so no worries.

Who:
I am pleased to announce, the guest speaker at this meeting will be me. I am talking about a topic that will benefit both beginner as well as advanced level real estate investors. 

What Will You Learn?
  • Locally which is more profitable, flipping or landlording and why?
  • What are the most common causes in failure so you know what to do to stay away from them?
  • I will give you a roadmap, that if followed as stated, I can guarantee your success.
    Why “buying right” is the number 1 most important thing to do which gives you all of the exit strategies you need. 
  • Exactly how much do you pay for a property to guarantee a win?
  • National rules of thumb on how much cash flow a property should spin off on a monthly basis. 
  • Where is the break even point on property where you will make no cash flow but will still be able to pay off a bank note? It’s important to know and understand your limitations so you won’t be taken out by a bum deal you fall in love with. 
  • How much money do you need to have into a property to be able to retire from your job within 5 years and become a full time investor?
  • Various strategies used to get your start as a real estate investor depending on how much money you have to start with. We will discuss all starting points, with no money, with a little money and with a pocket full of money. 
  • How to jump right into real estate while you fix your credit. 
  • We will go through a cash flow analysis that you should do on each and every property you have so you aren’t flying by the seat of your pants. This is useful for beginners and experienced investors alike. I have used this formula on landlords businesses that are going under to help them identify which properties they have that are losers which are sucking down their company. Correctly identified you know which ones to sell to make the company profitable again. Once you understand this you will be able to diagnose the health of any real estate venture and will learn the skills to turn one that is failing back around into a profitable business. This knowledge allows you to take over failing ventures. 
  • The different places you find wholesale and below wholesale deals.
  • High pressure (that seem like low pressure) closing techniques that work. 
  • Why attending your local Real Estate Investors of Virginia meetings will get you on track and keep you going in the right direction towards a future that few people get to experience in their lifetimes. 
  • Taking it to the next level. Once you have your bearings, how to partner with me to move into the next stratosphere. 
  • If you can grasp the simple concepts and mathematical formulas Im going to teach you, you will be adequately prepared from this seminar to make any income you choose based on your desire to succeed. You can do this individually or with me as a business partner. I suggest you bring a note pad and pen as this class will be very informative.The average person only retains a small portion of what they hear and I’m not just giving out rabbit food here. You will be taught the meat and potatoes of the business. I will be giving you the keys to success. It will be up to you what you do with them. 
The first month for all new members is free. After that it's only $100 dollars for a year of real estate education. $100 that could turn you into a very wealthy individual if you listen and have some hustle in you. None of us who operate the group are paid. We are all volunteers. Dues money goes towards operating the group.

Come on out to our weekly shindig and have some educational fun with some great like minded individuals. Our meetings are always real laid back. Dress as you normally do. Jeans and a t-shirt is fine.

We'll see you there!

P.S. -  Click this link to sign up for our email list. Once you sign up you will be sent an email asking you to confirm. When confirmed you will get our emails every week telling you what the next weeks meeting topic is. If this link doesn't work for any reason we also have a link to it at the top right side under the pay to be a member link.
http://dm-mailinglist.com/subscribe?f=43d51516

Why Use A Process Server???

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Paul Yengst Areas Served
This meeting will be at Jersey Lilly's in Salem VA across from Lewis Gale Hospital.

This week our special guest speaker will be process server, Paul Yengst. We will be talking about the process of serving people that you are suing.

If you file a Warrant in Debt or an Unlawful Detainer against a tenant than you by law have to have them served with a notice of the upcoming court date. If you are in the courthouse and give the Clerk the court papers without having a process server written on them, than they will automatically give you the Sheriff to serve it.

Reasons NOT to have the Sheriffs office serve the papers but rather use a Process Server:

1. When papers are served through the sheriffs office it will be brought by a deputy. Who could be highly inexperienced.  Those who have a lot of papers served have found that they locally more often come back “unfound” when served by a deputy rather than a process server. When papers get returned to the court unfound the court case is dismissed if you can’t give a new address right away for it to be submitted to. The law does not require last known address as many people think regarding where papers are served. It should but it doesn’t. And if those papers aren’t served than you have no lawsuit.

2. It costs 12 dollars PER PERSON that you are suing for the deputy to serve them. All cases you should have at least 2 people. One would be the person who is living there. The other is “Any And All Other Occupants.” The reason for this is if the tenant moved in a friend or anyone else, when it comes time for the Writ of Possession to have the deputy meet you there to put the people out, if you are only kicking out that one person and there are other people living there not on the lease, the deputy will not put them out. This means you have to do it all over again and sue them to get them out. I have made this mistake once. Once you get bit by it you will never mess up again. I can assure you of that.

Regarding the price, Paul charges 11 dollars for NO MATTER HOW MANY PEOPLE are listed on the court papers. This is very helpful considering the games the deputies sometimes like to play and their refusal to put out anyone you don’t have listed on the eviction. Even though they are criminally trespassing as they aren’t listed on the lease.

We cleared this issue regarding trespassing up with the Police Chief years ago but it’s still practically impossible to get the police to follow the law and arrest anyone in the house not on the lease even though the Chief and City Attorney looked at the laws and agreed with REI’s position on the issue. Anyone in a property of yours that is not on the lease and not invited to stay there by you is a trespasser. The law is clear.

So, I’m going to bet that you don’t know EVERYTHING about properly filling out court papers and the process of serving them. Come on out it will be a fun meeting!

Check Out Paul's webpage here:
http://www.yengst.com/

Landlords Responsible For Tenants Bills & Renting To Illegals

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As always we try to keep our members up to date with the issues that pertain to our industry. Here are a couple interesting articles that were sent to me by members this week that you should look over.

1. The Water Company in Tennessee has been attacking landlords. Apparently there was some old language allowing them to do so. Just like Virginia. They are now fighting it in their General Assembly to prevent the towns from charging a disinterested third party landlord. They don’t think it’s fair to force a private company (landlord) to help the government entity (water company) by paying off debts of another. By the looks of the article they are pretty optimistic that the landlords are going to win.

http://www.timesfreepress.com/news/politics/state/story/2016/mar/14/state-bill-seeks-exclude-3rd-party-property-o/355087/

2. Virginia Landlord starts the eviction process to remove 15 residents that can’t produce a social security number for identification as they are illegally in the country. Legal Aid sues and appears to be digging deep as they are trying to use the premise that the landlord didn’t previously require the social security number rather than strictly use the argument that they have to accept another form of government ID.

https://www.washingtonpost.com/local/virginia-news/without-social-security-numbers-illegal-immigrants-face-eviction/2016/02/10/2fcd64c2-ca9d-11e5-a7b2-5a2f824b02c9_story.html
 

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