Minnesota Real Estate Investors Association, Inc.

Something peeked your interest in real estate. Maybe it was the Flip this house, or Flipping Vegas or any other the other 100 reality TV shows that have nothing to do with reality but makes for entertaining TV.  Maybe it was a radio ad from some national guru looking to build their business in your market and they want you to join their team.  Maybe it was an ad on Facebook telling you that it is so simple to make $30k a month without even getting out of bed.  Maybe it was a friend that really did flip properties or a relative that owned several rental properties.

Whatever the reason is that you decided to give real estate investing a try, you soon realized that there is a lot to know and the real estate business can seem overwhelming when you are first starting out.  I know because I felt that way in the beginning and now I mentor students through the minutia all the time.

In one of my early mentoring sessions with my mentor, he said something to me that I just laughed at, at the time but later realized how profound that statement was that he repeated to me over and over until I finally got it.

He said; if you want to get to where I am, you need to KISS your way to Riches.  Keep It Simple Stupid.
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There is a lot of confusion out there with newbies and some seasoned investors as to what exactly wholesaling means.  The easiest way to describe this is to look at the Minnesota State Statue: 82 REAL ESTATE SALES REGULATIONS Sub 55 Definitions. Condensed Version: You cannot sell a property for another for a fee without a real estate license.  So the question is, as a wholesaler, what are you selling?  If you have a property under contract, you can sell your rights to the contract, not the property.  This is done via an assignment agreement which allows the assignee to step into your place as the buyer.  That is the basics of wholesaling. 

Some states actively go after real estate investors for incorrectly wholesaling.  These investors get themselves into trouble because they can’t explain legally what they are doing and therefore say the wrong things, like I am trying to find a buyer for the seller.  That shows intent, and as the previous FBI Director James Comey famously explained, it comes down to intent.

The problem is that your true intentions may not reflect your stated intentions because you don’t understand the legality of what you are doing.  If you just change what you are saying, to reflect your true intentions, then you will avoid a lot of aggravation and harassment from the state.
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“Get Off Your Butt and go Buy a House.”  This is a statement I had heard years ago from an old friend when I was complaining about being a broke struggling want to be investor, so I listened to her and did it. That was back in the late 90’s and it was a good ride for many years.  But the last few years have been tough on a lot of real estate investors, me included.  Many of us had to hunker down, retrench and then recover from our battle wounds.  The length of recover was/is directly proportional to the magnitude of your original symptoms.  Some people unfortunately didn’t have the financial or emotional strength to weather the storm which I completely understand as I was almost one of them.  But now it is time to look forward and plan for the future rather than having to deal with repercussions from the past. 

I understand that there will still be a few things we all need to deal with from the past few years as we move forward, but move forward we must, and this is the year to do it.  Even though last year was a relatively good year for real estate investing, it was still a tough year for many investors because of all the competition and the lack of inventory on the market.  I personally struggled finding rehabs as well.  Between my partner and me, we looked at over 400 properties, make close to 200 offers and only got one MLS offer accepted.  Looking back, off all the properties that we made offers on that sold, they were all in multiple offer situations.  Even though we had plenty of cash to buy and always offered quick closings without contingencies, we were always out bid with very similar offers.  Many of those other properties that didn’t sell are still on the market and still overpriced. 
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I know you have heard about Land Trusts and you know that you should be using them. But I know you and you haven’t gotten around to using them yet. You believe that Land Trusts are too complicated and you just haven’t had time to learn and completely understand them, but you will get around to it one of these days.

Trusts have been around for centuries and there are tools that the rich use regularly to protect their assets. Land Trusts are a very special type of Trust that was created to protect your real estate investments, whether you are a landlord who holds real estate for the long term or a wholesaler flipper who only owns the property for 5 minutes.

There are several reasons why people use Land Trusts, but the most important one to me is the Privacy. No one knows what I currently own or what I have owned in the past and that is comforting to me to know that no one will ever be able to find all my assets if they get the bug to sue me for any frivolous reasons. 
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Real Estate Investing requires us to maintain a buyers list, seller leads, and other various prospects. Now that more investors are using the internet for real estate marketing investors need a way to maintain those lists in efficiently and effectively. This is where Auto Responders come into play...

When you are taking your real estate marketing online you will ultimately be obtaining emails that need to be catered to in certain ways. In fact, there are two major elements to any auto responder: On the one hand you have the auto responder itself which is a program that sends out a series of emails to a lead. This works particularly well for following up with seller leads leads because the actual content doesn't require any updating. On the other hand we have the broadcaster which sends out one single email blast to a list. This comes in particularly handy with buyers and investors that you will be updating with the most current content.

Finding quality information on using auto responders can be a daunting task. So what we have to together in this post is a list of recommended readings the will give you a great foundation for learning how to use auto responders.

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Only mere hours ago we all saw live the Dow drop near 1,000 points in a startling amount of time. As I’m writing this the market has “recovered” but such volatility will not leave the minds of those who have their savings and IRAs in a stock portfolio that is certainly showing more red than they are accustomed to. To think that such a small country like Greece can trigger such waves because of the liquidity has compromised the integrity of the stock market and the following stories, finger pointing and possible domino effect that may be looming will leave these investors looking for a safe haven.

Suddenly the idea of investing into private money secured by real estate is looking a lot better
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Obviously it is, but how is it changing and what direction are we headed is the question most people are asking themselves these days. Some of the old school investors/realtors will relate to this article, but for most of you, this will seem like a radical new approach to real estate. You see, the changes I am going to be talking about or nothing more that real estate cycles coming back around full swing.

Over the last ten years or so, all you needed was a pulse and a few months to build appreciation in order to make money in real estate. That has changed drastically, today not only do you need a pulse, you also need a creative thinking brain. However, just having a pulse will not get you a mortgage anymore. In fact, I think the only way to get a mortgage today is to prove that you absolutely don’t need it, and then you have at least a fighting chance to get past underwriting.

Over the past two years, the real estate market has been going through a market correction, because of the over inflation of housing prices. Most of these properties have been either short sales or foreclosed upon by the banks and put back on the market at reduced prices. In many areas, prices have begun to stabilize and the new market values have been established. The first time home buyers tax credit helped boast these sales and stabilize prices. However, access to financing is getting harder and interest rates are expected to increase over the next few years. This will help to bring down prices of the surrounding properties over the next few years. 
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On our Monday night Training Webinar, I was asked a question from one of our students about driving traffic to their free website that everyone receives with their free account at Real Estate Promo. I gave them a suggestion to find another investor who has a property for sale right now and get their permission to market that property(s) on their websites. Then start creating ads on craigslist, kijiji, backpage and other online / offline marketing medias. This sparked a lot of interest and questions, so I decided to post a blog about the idea for everyone.

One of the struggles new investors have is activity. They spend all their time learning how to invest in real estate, but they don’t take a lot of action right away. This is probably due to fear and their misconception that they need to learn everything before they take any action. I am sure a lot of you seasoned investors can relate to this feeling of a newbie. Our Free Weekly Webinar Training is designed to not only to educate the new investors, but also to encourage them to take action, even if it is just small little baby steps to get started.

One of the struggles for seasoned investors is selling/renting their inventory. Personally from my own experience, my biggest struggles is when I have a property for sale, I spend all my time trying to fill the property that I stop doing what I am good at, which is locating and negotiating good deals. After I have that property filled, I then get back to finding more deals. All that time I have been marketing and driving traffic to my website. But if I don’t have any properties for sale on my website for a month or two, I am wasting good traffic from buyers, so I occasionally will market properties from fellow investors, just so that I have activity on my website. 
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I do a live weekly webinar training for real estate investors from all over the country. The weekly training is designed to help you either get started or get back on track. We have a vast verity of investors on the weekly training call from beginners to seasoned investors and one thing that I have been trying to emphasis on the training calls is that there is no one magical technique for success.

There are common traits and behaviors of successful investors, but they all have their own (sometimes unique) business models and they stick to it. However, in today’s rapidly changing market and economy, even those seasoned investors have been forced to change their strategies recently, myself included. That is why we have been seeing so many seasoned investors looking for answers.

I have been working with everyone to help them understand that one key fundamental to long term success in real estate, or any other business for that matter is the ability to change with the market. The market has changed and so must we.

So I am reaching out to all my fellow investors, new and old to find out what is working for you in your market? In the comments section below, tell us what is working for you, or what you have been doing lately. Then join us on the weekly training calls to continue this discussion on a weekly basis.
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