Working or Networking, It’s Your Choice


by Dave Miller

Is networking worth your time? I made $5000 last week with my network. I’ve done it before and I’ll do it again.

I continue to be highly impressed with the power of networking. In many ways networking is more than just looking out for my best interest. It means reaching out to other people.  If they have needs you can help them with, then do so. You will create a relationship.

Networking is more than a list of people. It is people with whom you have a mutually beneficial relationship. Other business people, potential clients and/or customers. The better your relationship with these people, the stronger your network.

Everyone has a network. It is simply the people you know. Everyone one from your nearest and dearest to your neighbors’ plumber’s cousin who surely has a phone number you could track down if you cared to.

Not everyone puts a cognitive effort into building their network. This is a mistake.

Here is a list of ways to build a bigger better network.

Start an email list

Begin building an email list of people you know have interest in your product or service. For me this has been a huge eye-opener and success.

I send out an email when I have an investment opportunity to share. This results in about a dozen or more emails a year. I do not bombard my network, only the stuff that matters get sent out.

To be added to my email list just click here

Add tag lines to your emails and correspondences

Last fall I added the words, “Financial and Real Estate Solutions” to my email. The first email I sent to my email network resulted in a call from a fellow asking if I do hard money loans. I do. I set him up. He made over six thousand and I made over twenty-eight hundred in two weeks’ time. Needless to say we were both happy, all from a mere tag line.

Social networks

Facebook, LinkedIn, et al. Any way to let people know what you are doing. Telling them every juicy nugget of gossip fodder about your personal life is not necessary.  But by filling them in on your business dealings you will be amazed by how many people you know have similar interests.

Help  others

Step out and help people. By helping others you will blessed. Okay, here is the plug: My brother has a house in Bird-In-Hand he is trying to sell. I told him I would get him some exposure by mentioning it here.

Quaint and Quiet

It is a quaint 3 bedroom rancher with a horse barn. It is an ideal starter home or investment property. Here is the link. He is asking $149,000 and the previous renter paid $940 a month. It has the potential to get $1000 rent per month. This is an excellent John Schaub style home. You can call Allen directly at 717-295-0662. If you find Allen a buyer I’ll see that you pocket $500

Start a blog.

Every marketing guru says so, so I will too. Start a blog.

Newsletter

Write a newsletter. Keep your network informed. This could be your blog.

Referrals

People know people. If you are in the market to buy a rental property, then call people. Ask. Call your real estate attorney and tell him what you are looking for and ask him if he knows anybody that could help you. Call your banker. Call your investor friends. If you are selling, ask for referrals. Tell your people you will reward them if they give you a successful referral. Note the $500 reward mentioned above.

Quotable Quote: The secret of my success is a two word answer: Know people.– Harvey S. Firestone

The Quick and the Deal


by Dave Miller

Ever wholesale a property in three days without leaving the office?

Last week I got a call from my Realtor. “Beaver St is back”, was his message.

Last November I placed an offer on this same property and got a signed agreement. It was a complicated short sale and the seller was not going to be able to give a clear title by the settlement date. I did have a sales agreement signed and could have forced the sale. But that would have been a costly hassle not worth the time and stress. I asked to retract the agreement and he consented.

I did take note, a few months ago, that this property was going to the foreclose auction. I was not able to attend the auction. The bank bought the property back at the auction and put it back on the market.

Monday, 4:08 pm. That’s when I get the call, only a few hours after it hit the MLS. Mmy sharp eyed Realtor spots it and forwards the information. After a brief discussion, I hang up, pull the file (from a year ago), and run the numbers.

A property like this not going to be on the market long, this I know. So I need to move fast. All my paperwork is done and I only have to review it.

When I buy a home to wholesale, I buy it with the intent to own it. If it does not work for me to own it I refuse to buy it. I won’t flip something I wouldn’t work on myself. This makes the selling easy since I can sell it honestly and sincerely, because I believe it will work.

So do not buy a home to wholesale, I buy a home to rehab with the possibility of wholesaling it.

I do not have the money to buy this with cash so I need an alternative. I find it. My self-directed IRA LLC is the solution. My IRA does not have the capital to make a full price offer, so I move fast to avoid a competing offer.

I have the edge because I know the property and already have the work done to estimate the cost of rehabbing it.

Monday, 8:20 pm.  I email the agreement with a copy of the deposit check to the Realtor. He forwards it to the bank’s Realtor. We wait. But not for long.

Tuesday, 11:39 am. “We have a deal” the email reads. I send the deposit check.

Tuesday, 3:32 pm. I send out an email to my network of buyers. In the email is a brief description of the property with two links. Link number one is to my blog with a better description and link number two is to a postlet with additional information and more pictures. I also post an ad on craigslist.

Wednesday. I receive multiple calls and emails expressing interest. We have multiple showings.

 My Realtor offered to show it for me to potential customers so I don’t need to run in each time. He does not charge me for this. I am putting him in contact with prime customers and he may (I have given him the okay) freely solicit other business from them. By doing so I do not need to use my time to show it and he may gain a client. It’s a win-win situation.

Thursday. We come to terms on a verbal agreement with a buyer. He only wants to do another walk through with his wife through and then sign the agreement. This has me a little nervous, women with their emotions can bring a deal down real fast. But I consent. I have no other choice.

Friday 10:30. Sold! It’s a done deal.

Recap of the week:

  • I bought a property.
  • I utilized my network.
  • I marketed a property
  • I sold a property
  • I have more money in my checking account
  • I never left the house

How can you replicate this method of making money?

  • Action! Get off mental duff. Make a cognitive change.
  • Action! Get off your physical duff. Like Wyatt Earp said, “Are you gonna do something, or just stand there and bleed?” Get out there and look at properties. Put offers (low offers) on properties.
  • Build relationships; Bankers, private money investors, buyers, sellers, realtors
  • Start a network; email lists, social networks, investor clubs
  • Buy a buyable home.
  • Hit your network
  • Sell the home to your buyer
  • Cash the check

If that is too many steps, then start with the first two. These are the most crucial.

Quotable Quote: Wherever you see a successful business, someone once made a courageous decision. – Peter Drucker

Rehabber’s Special


Needs Cosmetics

 Easy Rehab

Paint, Carpet and Light Bathroom Work

Light rehab. Needs light putty and paint, carpet and work in bathroom. Bathroom could use new surround and vanity.

It will cash flow. If you don’t want to fix it up, it is livable in the current condition. But since it needs so little, I recommend sprucing it up Rent at $650 a month

Newer furnace in basement.

For more information and Pictures go to http://www.postlets.com/res/2897041

Profit Pro forma for Fix and Sell for 502 Beaver St

After Repair Value                   $35,000

Expenses

      Purchase                            $19,000

      Closing Costs                          $550

      Material Costs                      $ 2800

Labor 50 to 60 hours

Total Costs                               $22,350          

Profit                                        $13,450

That is over $200 an hour. Not Bad!

Contact me if you have any interest.

Dave Miller

Cell Phone: 717 951 0201

Work          717 656 0749

RealStreet@frontiernet.net

Published in: on October 19, 2010 at 3:24 pm  Comments (1)  

24 Unit Property For Sale


Residential and Commercial Real Estate

519-527 West King Street Lancaster, Pennsylvania 17603

 $945,000. Reduced Price

This property has an excellent cash flow. It offers a cap rate of 11% with only 90% occupied. By viewing the cash flow pro forma you will see that an even higher return is easily attainable.

Email me at realstreet@frontiernet.net for a complete cash flow pro forma. I am also available on my cell phone (717)951-0201 for any questions or to set up a showing (allow 48 hours).

Potential Abounds

  • Rents are very reasonable and have room for increases
  • One leased space has washer and dryer hook ups and could easily be made into another profit center
  • The parking lot could be leased as individual spaces, nearby spots run as high as $55 per space
  • The garage could be fitted out for smaller storage units

 The surrounding area is mixed with commercial and residential. King St is the main route running east through the city. This makes for exceptional public transportation with a bus stop right outside the front door. Restaurants and shopping are within easy walking distance.

The property consists of 14 residential units, 6 store fronts, 3 storage areas and a leasable parking lot.

Residential; this building was built as an apartment; therefore the layout is properly done. It is not a converted building that has access and egress problems. From the front of the building you have three entrances to the residential units, each evenly spaced allowing access to 4 units each. Two additional units are accessed from Grant St.

Commercial; Six glass windowed store fronts grace the front of the building. All six supply the neighborhood with its retail needs. Three of these are grocery related, one hair salon, an appliance store and a clothing store; making this property a vital part of the region’s economy. Grant St provides access to the remaining commercial units. Included with the property on the adjacent parcel is a 29 space parking lot.

All units have tenant paid heat.

_____________________________________________________________________

The following comments are extracted from a 2008 appraisal.

Changes made in the last two years, I noted after the comments.

EXTERIOR DESCRIPTION

  • Foundation: Concrete reinforced with steel with a small mechanical basement
  • Structural Framing: Masonry framing
  • Exterior Walls: Brick
  • Building Height: This is a three-story building with a maximum height of 36‘
  • Roof Cover: Rubber; twelve years old
  • Doors and Windows: Average condition; consistent with current market standards. There are nine entrances to the structure; including seven storefront doors and three separate, exterior apartment doors. Twenty-one interior doors are new. There are no loading facilities. There is one drive-in door at the rear of the structure. The front of the building has sixteen, large glass replacement windows.
  • Exterior Condition: Average
  • Special Features: Glass doors and large storefront windows on the seven commercial units; shingled roof overhang with mounted signage over the  commercial units; double windows in apartment units; fire escape at rear of building.
  • Comments: The front façade of the building has good architectural details which are visually blocked by trees.

 

INTERIOR DESCRIPTION

  • Fit Out: Studded walls covered with painted drywall and plaster
  • Partitioning: The apartment units are highly partitioned. The commercial storefronts have an open floor plan.
  • Floor Cover: Mix of vinyl and hardwood
  • Ceilings: Drop acoustic tile; painted drywall and plaster
  • Heating and Cooling: Oil-fired, hot water heating system with no central air-conditioning.

There is a 5,000 gallon oil tank. Twelve of the apartment units have heat supplied by the ownership.

  • Electrical: 100 and 200 Amp circuit breaker panels with adequate distribution; all units are separately metered.
  • Lighting: Incandescent and fluorescent
  • Plumbing: Fourteen full baths, five half-baths and twelve kitchens. The two efficiency units have no kitchen. The distribution is via PVC & copper. The floor coverings are vinyl. Most apartment units have clawfoot tubs. The sewer hook-ups have been upgraded.
  • Sprinkler System: None
  • Remodeling: Remodeling is on an on-going basis; two apartment units are currently being remodeled.  All storefronts have new gas meters.
  • Interior Condition: Average

 

Overall, the property has average functional utility and is competitive within the general market. The design is functional.

 _____________________________________________________________________

Since these comments were made on the appraisal we have made the following improvements;

  • Completely gutted and remodeled 2 units.
  • Switched to electric heat making it 100% tenant paid.
  • Re-roofed a large portion of the roof

 

Email me at realstreet@frontiernet.net for a complete cash flow pro forma. I am also available on my cell phone (717)951-0201 for any questions or to set up a showing (allow 48 hours).

Keep in mind that if this property is larger than you are looking for, my 4 unit may fit your portfolio. Click here to view.

Post Note: I being an owner, am also now a licenced Realtor in PA

Published in: on October 12, 2010 at 9:14 pm  Comments (2)  

Excuses, Excuses


by Dave Miller 

My readers, to you I do apologize for my absence. I sincerely want to write again and will. Another blog is forth coming. I ask that your forbearance endure a little longer. 

Excuses are like belly buttons, everyone has one and they are of little to no use. But I will give you one anyway; our family took a two and a half week vacation to the west, that and the catch up after our return has consumed an immense amount of time. When time is short we shift things. My blog drew the short straw. Maybe it is time for me to review my own advice by reading “A Kick in the Buttocks”.

As we traveled my wife was writing and an exhilarating writer she is. I hope that she will allow me to post some of her views on our excursion. 

I bid you adieu, till next time.

Quotable Quote; There is no such thing as a list of reasons.  There is either one sufficient reason or a list of excuses.  ~Robert Brault

Published in: on October 5, 2010 at 7:31 pm  Leave a Comment  
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