How to Be a Real Estate Investor

Freedom Mentor, Jun 11, 2012 - Business & Economics - 200 pages

America's most trusted real estate investing mentor and coach, Phil Pustejovsky, shows you step by step, how to be a real estate investor, regardless of how much money you have, your credit rating or your experience level. This book was created for anyone looking for a simple to read, easy to follow guide on real estate investment in today's market.

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Table of Contents

Introduction	7

Right about that time I had located a property well under value I had put it under contract to purchase for 30000 The value of the property could be ...	10

In fact he was so common sense intelligent that he made more than 180000 on his first real estate deal when he was only 18 years old He put a corner...	11

My mentor told me to offer 10 of 50000 or 5000 I took his advice but didnt think the bank would accept Sure enough they did The mortgage comp...	14

After pouring through a large number of callers who didnt fit that description I finally discovered someone who said they had 20000 to put down A ...	15

We arrived at the entrance to the driveway On one side of the road was an old half full completely dilapidated garbage truck The neighbor across the...	16

Each time I would be in an airplane I would see thousands of homes scattered in all directions On one particular flight this thought popped into my ...	20

I so appreciate all those students in the beginning who endured the kinks and glitches first hand Thankfully despite those initial growing pains my stu...	22

One last item to consider when buying property at foreclosure auction is that the previous owner may still be living in the home so you may have to ...	108

And this investor had based his numbers on what the property would bring as a residential property	110

1 year	113

The main drawback is that only a select few states have laws enacted making it advantageous for investors to focus their attention on right of redempt...	114

As the number of competitors increase youre chances of getting a great deal decrease Plus when a property goes on the MLS you are now in direct c...	117

Also during states of emergency HUD homes can be used to house emergency evacuees After Katrina all HUD homes in the Southeast were pulled o...	120

There are a few minor drawbacks though First the property is listed so there will be some competition Second there arent very many of these deals ou...	122

In some areas the city handles the foreclosure process and you can purchase the property at a tax deed auction With a tax deed sale the property own...	126

Why Be a Real Estate Investor?	25

With all the tax increases and unfair taxing rules why would the government continue to allow this deduction for real estate investors? The governme...	27

Real estate investing doesnt discriminate based on your age background or ethnicity Youre not too old or too young although you must be 18 years ...	29

Investing in real estate doesnt have to be a full time activity You can invest on the side in your spare time Overtime you may come to enjoy it so muc...	31

Investing in real estate requires patience We live in a world obsessed with instant gratification Real estate is not instant gratification Usually the efforts...	32

How to Think Like an Investor	35

To take the above example one step further the one action that was most outofthispersons comfort zone was talking on the phone to the property ow...	41

Extremely successful real estate investors have a unique attitude on life They view every experience as a test and then every result as a learning lesson...	42

Sam Walton the founder of WalMart the largest retailer in the world was quoted as saying Like every overnight success its usually 20 years in the ma...	44

Repetition is the mother of skill In order to get good at anything you have to do it over and over again Regardless of how well you think you learn o...	46

Humility also allows you to learn from your mistakes and to open your mind to new ideas It can be very difficult for someone who thinks they alrea...	47

Therefore as you begin this journey make sure you verify the credentials of whoever is trying to advise you on real estate investing If that person is n...	49

Thats how we built our apprentice program on mutually aligned interests My students split their profits with us 5050 When they win we win This ens...	50

Youll need at least one mentor and the time to begin searching for that person is sooner rather than later	52

Second you should partner with someone who is providing tremendous value The conflict that can most likely plague a partnership is when one part...	53

Real Estate Investing 101	55

Fast cash or making money now provides you with cash in your pocket For many people extra money is very important to them right now Wealth ac...	56

The foundation for successfully applying this investing approach is being able to find properties that can be put under contract at an amount substant...	59

Third the retail store sold you the exact same items they bought from the wholesaler for more than what they paid The retail store made their profit b...	60

That is where the word flipping got paired with illegal It was originated from dishonest people selling real estate to a buyer for far more than its true ...	61

A very common example of this technique is that of a builder The typical builder purchases a lot from a developer and then builds a property on that...	64

When in comes to deciding whether to make some money now or far more money later my philosophy is that a quick nickel beats a slow dime	66

An example of asking the barber if you need a haircut When attempting to resell a property to an investor buyer it is common for the prospective bu...	67

Real estate is not only a fabulous vehicle for putting money in your pocket now It can also create long term financial security In fact this is what real ...	72

The other issue investors have voiced as it pertains to buying and holding real estate is in being a landlord Some even associate unclogging toilets at ...	74

Enlisting a property management firm can be a wise decision They usually have a very good leasing system already in place on how to manage prop...	75

Buying and holding real estate differs greatly between different types of properties as well Single family homes can be very easy to resell if a tenant ...	77

Some experts have said that even if you buy real estate wrong given enough time even a bad investment can correct itself As you learned from the Y...	80

Real estate investors have strived to minimize the risks associated with traditional buy and hold investing while still sharing in the benefits In other wo...	82

With all of these benefits though there must be some drawbacks right? For die hard buy and hold investors they will argue that if you sell a property...	84

Advanced Investing Techniques	87

Why? First newer built homes for the most part lack enough equity to allow for a wholesaler to pick up a deal at 65 cents on the dollar because most ...	88

Always do the right thing in business and operate in such a manner that if your actions were ever recorded on the front page of the newspaper you w...	91

The retail wholesale is a phrase coined by our team to describe when you flip or wholesale a property to a retail buyer The traditional wholesale typic...	93

Pre foreclosures can offer tremendous investing opportunities Borrowers who are days away from a foreclosure date are typically left with very few ...	98

Some investors strictly focus on pre foreclosures and can make an absolute fortune while helping people at the same time	99

It was a no brainer for our student as well because the total out of pocket was only 5000 and he became the owner of a 140000 property with a loan ...	100

As stated numerous times already in this book you should always operate legally morally and ethically Further in some cases what may be legal may ...	101

Some investors are attracted to short sales because they can really help a borrower from the devastating effects of a foreclosure When all parts of a sh...	104

The key to the subject to is whether or not the seller is motivated enough to allow you to become the owner while keeping the loan in their name To t...	130

Other private money sources may include friends and family who have selfdirected IRAs or other liquid assets who are interested in what they consid...	145

Purchasing real estate the traditional way involves only two major components the purchase price and the funding source The first component is fair...	146

The only other major niche within the real estate investing world is the buying and selling of notes A note in this context is better known as a mortga...	147

Your Real Estate Future	149

Most successful businesses had a plan before they began On the other hand those who fail to plan plan to fail In order for you to be successful you n...	151

Your real estate investing plan should be deeply personal to you It is your plan and no one elses Just like you are different from everyone else your p...	152

Next prioritize these goals based on which ones generate the most emotions inside of you The way you ensure you achieve your goals is to anchor p...	154

A great example of this was expressed in the Charles Dickens classic involving Ebenezer Scrooge Scrooge was haunted by three ghosts the ghost of C...	155

If you could have a day to do whatever you wanted nonwork related what would be your perfect day of play? Where would you be who would you ...	157

Did your perfect day of work vision include real estate? Is real estate a means to an end or is it part of your end? Its OK either way you cant have a w...	158

Even if you arent flush with cash in a bank account right now do you have decent credit? Do you have a job that brings in steady W2 income? Do y...	160

If you have tried to invest in the past and failed thats an asset too Discovering what didnt work can be of great value What real estate investing experi...	161

Can produce fast and steady cash	163

Takes significant time to get paid but sometimes the payoffs can be substantially larger	164

For those who know people who have money they want to invest foreclosures can be accessible for them as well	165

Not a people business at all Strictly numbers	166

Several strategies involve the use of a traditional purchase include foreclosures rehabs and even sometimes short sales Typically a traditional purchase...	167

Significant level of risk since a property could go down in value or a tenant could inflict substantial damage as well as legal hassles	168

For those with tons of money but no time this can be a great way to invest in real estate Oftentimes people move some of their retirement funds to a s...	169

Take your time with this process Allow yourself to reflect and ponder Abraham Lincoln is quoted as having said If I was given 8 hours to chop dow...	170

Congratulations you made it to the end of the book That is a significant milestone You are a finisher in a world of starters	171

Appendix A Building Your Team	173

In this section youre going to discover who the most important team members are going to be for your real estate investing business In the beginning...	175

The right closing company is the most important player on your team If you have a lousy closing company creative real estate investing can be a nig...	176

Your closing company is the first place to start in finding the right real estate attorney In fact many closing companies either are owned by attorneys ...	177

Thankfully there is a gigantic short cut to locating a dynamite eviction attorney for each county and here it is Call or go in person to the court clerks ...	178

It may be extremely important that you build a relationship with at least one key real estate agent But it may not Because what you really need is not ...	179

The MLS is controlled by the National Association of Realtors NAR In order for someone to get access to the MLS in most cases the NAR requires th...	180

If you are a licensed real estate agent please dont take offense to what you are about to read The following is what we have experienced over a very l...	181

There are three types of mortgage people you will need for your team Although it is humanly possible that one mortgage person could fulfill all thre...	184

Some of the deals that you will come across may require the use of money in order for you to profit You may not need to use your own money but i...	186

General contractors also know other sub contractors and therefore if you have a specific need that the GC isnt suited for heshe will probably know so...	189

Finding a tax advisor that understands real estate investing can be challenging Most CPAs and other tax professionals have very little knowledge of th...	190

Appendix B Recommended Reading	191

Real estate can be a people business Knowing how to deal with people will make you a better investor Dale Carnegies classic after 70 years remains th...	192

About the Author	194

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Common terms and phrases

actually advice amount asking bank borrower build long term buy and hold buy real estate buy the property cash flow closing company comfort zone contract creative deal earnest money Empire State Building equity erty eviction attorney fast cash flipping foreclose foreclosure auction goals hard money lenders Hard Money loan income invest in real investor buyer license loan long term wealth mentor months mortgage companies Multiple Listing Service offer oftentimes option owner financing profit prop property owner purchase the property re-sell real estate agent real estate investor Real World Example rent REO agent requires retail wholesale right of redemption short sale simply single family homes someone strategy student successful investors successful real estate tax deed sale tax lien certificate team members technique tenant buyer tion traditional wholesale transaction typically usually wholesaling WISDOM KEY

About the author (2012)

Phil Pustejovsky is a best selling author, national speaker, accomplished investor and has been recognized as the leading coach and mentor in real estate. His works have been featured in CBS MoneyWatch, Wall Street Journal's MarketWatch and Yahoo! Finance. He frequently shares the stage with other legendary wealth experts such as Robert Kiyosaki, Robert Shemin and Peter Conti. Having been a part of more than 1,000 real estate investments himself, Phil is considered one of the most experienced investors alive. And for nearly a decade, Phil has been guiding everyday people to financial freedom though his innovative real estate investing techniques and strategies.

Bibliographic information

Title	How to Be a Real Estate Investor
Author	Phil Pustejovsky
Publisher	Freedom Mentor, 2012
ISBN	1475235216, 9781475235210
Length	200 pages
Subjects	Business & Economics › Investments & Securities › General Business & Economics / Investments & Securities / General Business & Economics / Investments & Securities / Real Estate Business & Economics / Real Estate / Buying & Selling Homes

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