Saturday, December 30, 2017

REI Dues And New Meeting Location ~ 2018 Membership ~ Education Well Worth The Small $100 fee.

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Hello Everyone,

This is a reminder to everyone that we now have a new meeting location. Our meetings will be held at the same time, 6:30-8:00pm, every Tuesday  at Logans Roadhouse. 

Our great new meeting location will start with a party. 

Instead of a Christmas party this year, REI of Virginia will be having a New Years party on January 2nd at Logans Roadhouse over by Valley View Mall. We will have lots of give-a-ways and fun stuff to do. If anyone has anything that they can donate for the raffle please let Rebekah know at rebekah.cornett@yahoo.com. 

Logans will be our new regular meeting location. Starting at our party on January 2nd. 

Corned Beef has been great to us and overall we have been very happy there. It's time for a change though. There are some members in our group that have difficulty with stairs and others that don’t like downtown parking. Both of the primary issues are solved at Logans.

See you there at the next meeting on January 2nd!


We’re still keeping Dues cheap for the upcoming 2018 year. 

As we’ve stated many times. We are all volunteers. There is NO person in this group that has ever been paid to do all the work we have to do to operate it. And that’s a part time job for a couple of us. We do not personally benefit for the work we do. We do it because we understand the importance of investors uniting together. If you take advantage of the membership you will make money as a result of being a member. You will also save money as a result of your membership. I can guarantee that.  And it will be significantly more than the cost of membership. 

So far the dues money has bought our projector and screen, pays for bulk emails, buys speakers from time to time dinner, has paid for us to lobby in Richmond, paid for us to incorporate, etc. We also bought an REI of Virginia rental and are now finishing it up so the organization will be able to continue no matter what. Currently if we ended up getting tired of volunteering year after year and quit than REI would end as well. With a rental we will have a little income affording the ability to pay someone to run it and keep investors in our area together. 

It has taken several years to save up a little money since we have been committed to keeping dues affordable for all, including novice investors just getting started out. If we make REI of VA a corporation that is actually profitable one day, that alone will preserve it through the future. We can then ensure that there will always be educated investors to help each other out and fight for our rights locally and statewide. 

Dues Value OVER $25,000 for a year of educational meetings every single week. Educational meetings that will make you rich if you follow what is said. But we ONLY charge $100. I don’t care how tight you are. You may be as tight as me with my money. I think you can handle that for the value you get. 

If you haven’t signed up yet, you can pay at the next upcoming meeting by check or cash. Or you can sign up with your credit card via clicking the Paypal link below or above. Real estate education is tax deductible! 

Please don’t ask me to help you through your real estate investment problems with all of these questions throughout the year without at least signing up and paying our dues. YOU CAN’T EXPECT ME OR ANY OTHER MEMBER OF OUR GROUP TO HELP YOU IF YOU DON’T CARE TO HELP OUR CAUSE!  $100 is nothing. You don’t need to attend the meetings to pay the dues. If you want support of our group you have to do the minimum of being a paid member. 


As always new members get a free month to decide if they like us. So be nice to them. At least until they pay. LOL. 

Please support or sponsors below. They help us keep these dues cheap! And we have picked companies to work with that are the best in the industry and care about the needs of investors. 

Tuesday, December 26, 2017

This Week… The Secrets To Sucess

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Hello Everyone,

This week, former REI of VA CEO, Dan Cullather and I, will be the guest speakers. We’re going to cover the key elements that any real estate investor needs to follow to ensure success. You can go from nothing to millions of dollars in assets by following these very simple rules. 

I've made it a point to talk to every real estate investor in our area who has gone under and determine what they did to make their company fail by asking some specific questions. I’ve spoken to all of them that I knew and questioned them on various aspects of investing to determine exactly what it was that made it so they could not turn a profit. A lot can be learned from others mistakes. And it’s quite a bit easier to learn them from others rather than making those fatal mistakes yourself which will lead to your demise. 

It’s smart to watch out who is giving you investment advice. Where did they come from? Were they self made? Or did they start out with a nice pile of cash from either an inheritance or a good job they had or have? This is really important information to know. If you don’t, you could very  easily end up taking advice from a wealthy investor that “thinks" they know how to get off the bottom with virtually no cash reserves to millions. They think that because they see themselves as successful but they don’t realize what it really takes to make it when you’re not flush with cash like they are. 

These types of investors that had an inheritance or a great job to kick off their real estate career may be very successful individuals. But they are much different than you if you are not in the same position as they are. These investors think that they know and fully understand real estate investing but I’ve found that they are completely clueless and most often don’t even understand the most fundamental principals of RE Investing. If they make a bad deal, all they have to do is throw some more money at it to pull through any hard times. They have the money to throw at it. Do you? If so you’re going to be OK just like they were. You’re already on easy street.

Investors that started with nothing can’t afford even one single bad deal. One screw up at the start of their investing career will completely bury them. And within no time they will be investing in a lawyer to help them with their bankruptcy. 

Both Dan and I started at the bottom and worked our way up. We are not  riding by the seat of our pants. The properties we own are proof of that. We also are both are very close to each other on our valuation of properties. That is we both are within a few thousand of each other on what a property is worth. We both fix our houses up in a highly affordable manor and provide our tenants with a clean, painted property where everything is in working order. We never go over the top as this is a business not a hobby. And we are doing this to make money not just have fun. Even though it can be a lot of fun from time to time. 

Both Dan and I have some general guidelines that we go by that ensure success. This weeks meeting we will reveal what these rules of thumb are  and what we do to ensure that we stay within some general parameters on all of our investments ensuring a big win on each and every deal that we do. 

Several of these general guidelines are not known by the typical investor that came into the real estate investment industry with pockets already full of cash. They don’t need to know them. They have the ability to pay way too much for a property and make all kinds of other key mistakes that would put anyone going from the bottom up into bankruptcy. All they have to do is throw more money at the deal and ride it out. These types of investors are very risky to listen to. They feel successful as they have a lot of property but they have no clue how to get off the bottom and their advice will often lead you into a hole you may not be able to get out of if you don’t have finances as they do. 

This week Dan and I will be unveiling the Secrets to Success in our industry. What to do and what not to do. If you follow what we say, you will be parking on easy street in no time. 

See you at the meeting …..

For those who were there last week, I apologize for my lack of restraint. I was very aggravated about some information that I was just given prior to the meeting regarding the contractor we were using for the REI Rehab  which was a total flop. I brought some friends out there and showed them photos of when we just got it.  They confirmed what I already knew. That house only needed minor plumbing moved for a kitchen with no structural changes (1K max), free cabinets ($0), an added half bathroom not far from the sink ($500), some minor work on the piers in the back of the house ($800) with nothing more than a paint job inside ($1,500) as well as outside ($1,000). Painted floors ($500) as well as several other minor lipstick on a pig details, should have cost no more than $6K-7K. And that would pass a rental inspection and have quality workmanship with inexpensive finishes such as the painted floors. Someone who isn’t a professional in our industry may pay at most 10-11,000 for the total job materials and all in that kind of rental condition. Material costs were at about $5,538 for this job and I’m sure you have heard the old saying that in general construction labor will equal roughly the cost of materials. That would be if you were paying full boat and didn’t have any good contacts. 

Our contractor that was doing this job has himself had over 100 houses at one point in time and he is experienced with rehabbing them. He knew and agreed when he took it that the 15K allotted to do the job was  more than enough to take care of it. He also knew that whenever we make any changes, as officers of the group, we are required to contact the rest of the officers and get a majority vote. Which never happened. We just recently got hit with the fact that he “ALREADY”  spent around $21,000. Isn’t that illegal for a contractor to go over a bid to that degree and expect that you will pay them for doing so without notification? Ive been told that it's illegal in the automotive industry to go over more than 10% before legally having to contact you and notify you of the new unforeseen problem.

This house didn’t have a bunch of unforeseen problems. They were all visible. It was a very easy job. An easy job that had more than enough money in the budget. I have been doing this for many years and a little house like that that has 21,000 of materials and labor into it will be in flip condition when all is said and done. We have a big flipper here in town who uses the magic number of 20,000 on every house he buys sight unseen. That gives him more than enough room to ensure that he can get it all the way to flip quality even if it falls into one of the worst he has ever purchased. I can tell you one thing for a fact, that house is FAR from flip quality. It’s still a good ways from rental quality. It isn’t free of code violations and the workmanship that was done in many areas is very sloppy. Definitely not managed by who I was told would be managing it. Who is a perfectionist.

I was initially told by our contractor that the job was complete. Which is a smack in the face to me that he thinks we're that stupid that we would believe that for 21K we get a half way done house back. I’ve been sticking my neck out for this group since we created it and I can not sit by and say nothing when we are getting ripped off to such a tremendous degree. Cleaned out bank accounts with no officer vote and not even telling a single person that he was doing that. Definitely not good moral, professional, or ethical behavior. 

I was also shocked to see that many of the time sheets appear to be in the same penmanship. And possibly the same pen. With inaccuracies adding  up potentially fictional hours. With one that looked legit who wrote hours at the REI house and then hours at some house on Rugby which were added together for REI to pay. Who’s labor bill are we paying and why? Most of the people he has on there at 9 dollars an hour. One at 18/hr that I believe I know and didn’t think he was particularly talented. There are also a couple sheets that are almost exactly identical. As if written at the same time but with different peoples names as independent contractors. And there are no dates on many of these time sheets letting us know when the work was supposed to have been done. As well as no description of what they did. Who gets an invoice for hours and no description or date? 
 
To be honest, all of this looks real fishy. I don’t know anyone who would look at it and think otherwise. It was not in the best interest of the group for him to proceed to spend money way above the budget without notifying the other officers of the group. The group is owed a nice house in great condition with no code violations or poor workmanship at the 15K materials and labor price we initially agreed on. He said he would not do some extras that we wanted to do if he came too close to the budget. Well, not only did we not get those done but we also have a house that is still a couple months away from being finished and lost rent as additional damages. 

We also have some issues with the bank account and some apparent shuffling around of money that needs to be looked into by someone who is mathematically inclined. And loads of missing receipts. And money to equipment rental companies for the rental of people. Ive never heard they were renting people. We’ve got to get to the bottom of this. I’m sure some of this has reasonable answers but there is no way someone can reasonably turn a 7K job into a 21K job. Especially when they are as experienced as he is. 

SEE BELOW, NEW MEETING LOCATION

Tuesday, December 19, 2017

Real Estate Investors of Virginia agenda topics this week, REI Rehab news, new meeting location, New Years party.

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Hello everyone,

We’ve got a great meeting lined up this week so come on out. We have more information about the REI rehab that we will look over in detail. We also have a great new meeting location that will start with a party. 

Instead of a Christmas party this year, REI of Virginia will be having a New Years party on January 2nd at Logans Roadhouse over by Valley View Mall. We will have lots of give-a-ways and fun stuff to do. If anyone has anything that they can donate for the raffle please let Rebekah know at rebekah.cornett@yahoo.com or 540-330-2455. 

Logans will be our new regular meeting location as well. We scheduled it for the same time and day as now. Starting at our party on January 2nd, REI of VA meetings will be held every Tuesday from 6:30 pm to 8:00 pm at Logans Roadhouse, 4740 Valley View Blvd NW, Roanoke, VA 24012. 

Corned Beef has been great to us and overall we have been very happy there. It's time for a change though. There are some members in our group that have difficulty with stairs and others that don’t like downtown parking. Both of the primary issues are solved at Logans.

Speaking of parties. Our member and good friend, John King, is having his customer appreciation party this Friday the 22nd and he’s invited those of you who would like to come. We typically have a regular group of REI members that I see there every year. It’s a lot of fun. John always has plenty of food and a band. 

The party will be at his business, Specialized Saw and Mower at 3954 W. Main St in Salem. I always do all of my landscaping related business and mower repairs with John. They have all kinds of mowers, weed eaters, blowers, etc for sale. They also have a service department that works on all brands. And a great selection of mulch, dirt, rock, etc.  Come on out to his party if you can make it. This Friday from around 12pm to about 5 or so.

2018 is going to be a big year. This is the year that we are all going to step it up and get a hold of several more properties. Fun stuff!!!

See you guys and gals at the REI meeting and Johns party
 

REI Dues for 2018 Membership ~ Education Well Worth The Small $100 fee.

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We’re still keeping Dues cheap for the upcoming 2018 year. 

As we’ve stated many times. We are all volunteers. There is NO person in this group that has ever been paid to do all the work we have to do to operate it. And that’s a part time job for a couple of us. We do not personally benefit for the work we do. We do it because we understand the importance of investors uniting together. If you take advantage of the membership you will make money as a result of being a member. You will also save money as a result of your membership. I can guarantee that.  And it will be significantly more than the cost of membership. 

So far the dues money has bought our projector and screen, pays for bulk emails, buys speakers from time to time dinner, has paid for us to lobby in Richmond, paid for us to incorporate, etc. We bought the REI of Virginia rental and are now finishing it up. 

It has taken several years to save up a little money since we have been committed to keeping dues affordable for all, including novice investors just getting started out. If we make REI of VA a corporation that is actually profitable one day, that alone will preserve it through the future. We can then ensure that there will always be investors to help each other out and fight for our rights locally and statewide. 

Dues Value OVER $25,000 for a year of educational meetings every single week. Educational meetings that will make you rich if you follow what is said. But we ONLY charge $100. I don’t care how tight you are. You may be as tight as me with my money. I think you can handle that for the value you get. 

If you haven’t signed up yet, you can pay at the next upcoming meeting by check or cash. Or you can sign up with your credit card via clicking the Paypal link below. Real estate education is tax deductible! 

Please don’t ask me to help you through your real estate investment problems with all of these questions throughout the year without at least signing up and paying our dues. YOU CAN’T EXPECT ME OR ANY OTHER MEMBER OF OUR GROUP TO HELP YOU IF YOU DON’T CARE TO HELP OUR CAUSE!  $100 is nothing. You don’t need to attend the meetings to pay the dues. If you want support of our group you have to do the minimum of being a paid member. 


As always new members get a free month to decide if they like us. So be nice to them. At least until they pay. LOL. 

Please support or sponsors below. They help us keep these dues cheap! And we have picked companies to work with that are the best in the industry and care about the needs of investors. 

Tuesday, December 12, 2017

Property Flips and Rentals will be the subject of the upcoming REI Meeting

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Hello Everyone,

We have a fantastic meeting lined up for this week. The topic is going to be Property Flips and Rentals. And our speaker will be good friend and REI CFO Eric Schmucker. Eric has been flipping properties lately and has historically managed and owned over 100 rental units. 

Eric is going to cover topics such as:

1. How to get started in flips and rentals
2. Building your renovation team(s)
3. Subcontracting bid labor vs. employing your own guys by the hour.
4. What kind of renovation work should your company be able to preform vs. subcontracting outside companies
5. What should the pay scale be? And what should each employee be able to preform at each level?

Eric managed the REI rehab so he will then lead into a discussion of our project which is close to completion. 

Looking forward to this meeting…  It’s always fun to hear the perspectives of our fellow members. How they do things, what they do to save money, where they feel they can reasonably cut corners to save money and where they don’t. We all have a different way of doing things. I often pick up some good tips at these types of meetings that I implement in my company saving money, time or frustration. Money saved = money earned. 

See you there!

Tuesday, December 5, 2017

This Week ~ Group Discussion

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Hello everyone,

This week we aren’t having a group speaker. We will have a group forum about varied landlording, flipping, wholesaling and other real estate investment related topics. As we do any time that we don’t have a scheduled speaker. 

REI President Andy has had some difficulties setting up consistent meetings. We are currently looking for a new officer of the group that will take over his responsibilities so we can get back on track. I’ve found it very difficult to write agendas about nothing back to back. 

Regardless of the meeting having a speaker or not, we always have a focus on teaching other like minded people, both novice and advanced, to develop our individual companies into streamlined, cost effective, money making machines. That you will eventually work towards quitting the day job to be full time real estate investors. We don’t only talk about the big picture but also discuss the nuts and bolts of operating a successful company. One topic we may discuss in the upcoming meeting is the development of systems that allow you to have a team of good people that will manage your companies for you while you spend most of your time doing as you wish. Something I have been working on for the past few years. 

We trade ideas that have worked for us. Or ones that didn’t. That is what this group is all about. Investors helping investors become successful. If you fully take advantage of networking and developing good business relationships with our membership, you will end up with a large portfolio of lucrative property to retire on and pass on to your “family” (THEM)  and “friends” (ME). 

Come on out to the meeting this week and spend a little time with some good like minded people. 

See you there!

Tuesday, November 28, 2017

Fire Restoration This Week At REI

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Hello Everyone,

This week we have a fun meeting lined up to discuss Fire, Smoke and Water Restoration. Our guest speaker will be Tal Bowman who is the owner of the local Paul Davis Restoration franchise. They also specialize in the associated issues you run into such as Mold and Odor removal. 

We’re going to get into some of the details of fire restoration. Often investors are afraid to buy a fire damaged property due to not knowing for sure what will have to be done. I’ve done a couple and jumped through the city hoops on these which I found to not be too difficult. 

Going to be a fun meeting. See you there!

P.S. - It was brought to my attention by several people that last week the president of REI “misspoke” when he said that I was not sending emails out to the group to harm it or something along those lines. And that I haven’t contacted him to see what meetings he had lined up. Reality that he is aware of is that our emails, which were seen by several, clearly show me asking him what meetings he has scheduled for the next 3 weeks as I was going to be in China and Thailand and had to write 3 agendas all at once. His reply was “I’ve Got Nothing” in which I replied as I have before that I can not write an agenda about “nothing" time and time again. I guess he didn’t want to tell the group he was having difficulty doing his job. Thanks for the vacation present Andy! You’re a nice guy. 

We looked into the market to buy property when we were in Thailand. Spent several days looking at condos and talking to real estate agents there. We found some interesting information that I am going to share with the group sometime. Condos there are on the low side 30,000 USD and can be rented every day of a 7 month high season and about 1/4th of the time during the low season. That is if you go for the vacation rental route rather than the long term renter. It’s typical for your tenant to put down at minimum 3 months of rent ahead and if they don’t pay their rent, you call the cops and they put them right out. No court. Interesting system they have there for landlords. That protect their investment. 

This is a potentially great way to get some vacation property that you will use when you wish and will have it rented when you’re gone. 

See you at the meeting...

Tuesday, October 31, 2017

This Week Open Group Discussion

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Hello Everyone,

This week at REI will be Halloween night. Not all of you will be Trick or Treating so the meeting is still scheduled. We expect it to be a small group and we will talk about whatever real estate investment topics come to mind. Maybe a conversation on real estate in disastrous hard times of high inflation or deflation would be interesting for a Halloween discussion. 

Preparing for the worst. Pay down your debt or add to it? Deflation vs inflation… Effects on tangible assets. Equity investments... 

What economic conditions WILL destroy a hedge investment such as real estate? 

See you there!

Tuesday, October 17, 2017

Stories and Advice from a Roanoke Landlord Icon

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Hello Everyone,

We’ve got a great meeting lined up for this week! I’m pleased to announce that we will have our good friend Dick Dearing as our special guest speaker.  

Dick has been in the landlording business from what I understand back in the 1970’s and has a significant amount of valuable experience under his belt. He’s been involved in many forms of landlording including residential, commercial, warehousing, etc. I always learn something talking to him as he is full of good solid advice most often through fascinating stories he has accumulated through his time in the industry. 

It’s going to be a fantastic meeting so if you have other plans… change them.

We’ll see you there!

Monday, October 9, 2017

Analysis of Wholesale Deals This Week At Real Estate Investors of Virginia

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Hello Everyone,

This week our guest speaker will be our friend and member, Frank Erhartic. Frank is going to lead a discussion on wholesale deals. We will do an analysis on these types of properties that you get from wholesalers to determine if it’s a good or bad deal. This meeting will also help new wholesalers determine what their sales price should be. 

We’re going to break it down in at least 2 categories. 

1. A rental could make a great rental at the right price but a terrible flip as it may not be in the right neighborhood. 

2. A flip that was intended to be a flip that didn’t sell and was turned into a rental as a plan B could be a very bad deal and not cash flow. Which is why we have different buying formulas depending on if you are using the property as a flip or a rental. 

Come on out... It will be an interesting meeting to learn the groups different perspectives on the topic. 

A primer on this topic is here: Don’t be a sucker and pay too much. That’s to both you investors and wholesalers. Wholesalers, if you are getting rich off some fool paying you too much for every deal, their empire will eventually collapse due to being over leveraged and you will have to continually find new buyers. Not a good way to do business by driving someone financially into the ground. You’re best off being on the up and up and treating your buyers well by using your negotiation tactics to get the right price so everyone can make a little money. 

We’ll see you there!
 

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