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Fortune Builders Mastery Coaching Mastermind

April 28, 2013 by Leave a Comment

After being with the Fortune Builders Mastery program since the very first class, both of us are blessed to be a part of their coaching community. And a couple of times a year the coaches will all get together to learn from each other, and get better at real estate, and coaching real estate.

Erik Bee Crushing the Fortune Builders eventThis year the Fortune Builders Mastery coaches mastermind was held in San Diego, CA at the FortuneBuilders training center.

We had 2 days of learning, and even some fun on a catamaran. Yep! Paddleboard races, tug of war, and some dancing may have been involved…

But back to the learning. We talked in-depth on how to better inspire the students that we work with on a daily bases, and how to make their experience second to none. Sometimes it’s as simple as the words that you use as a coach that makes the difference between a student taking action, and creating success, and doing nothing.

This can also be true with the words that we use when talking to ourselves. Our internal voices.

Words can make all the difference.

Overcoming Fear

We also did a cool exercise on overcoming fear. Here’s how it works… You take a mouse trap (yes a real mouse trap), you set it. Then you close your eyes and have someone coach you into dismantling the mouse trap with your eyes closed. This is actually pretty nerve racking. At first I thought, “no big deal,” but once you close your eyes, some fear kicks in. You start to wonder if a little mouse trap could actually break your finger.

With my eyes closed, I let my coach tell me exactly where to hover my hand over the mouse trap. Once I was about 2 inches above the trap, my coach told me to slap my hand down as fast as I could. When I did this the mouse trap couldn’t slam closed because my hand stopped the trigger. From there you lift your hand quickly, and the trap slaps closed without causing you any harm.

This exercise was designed to simulate the same fear that you feel when trying something new. Maybe starting a real estate investing business with the Fortune Builders… In reality the feeling was pretty close to what I remember when I was first making phone calls to investors back in New Jersey. I got that same dropping feeling in my stomach. The feeling of the unknown.

The Fun Stuff

To conclude the weekend we all jumped in vans, and were shuttled to the water where we boarded catamarans for a day of sun and fun!

Joe Bauer & Than Merrill paddleboardingWe took the catamarans to a private beach where the boat anchored about 100 yards from the shore. We then formed teams, and had paddle board races. The team that shuttled everyone to the beach the fastest won! We won!

Once at the beach, each of the six teams competed in tug of war contests. This one we didn’t do so well in. I think it had to do with us having 2 members less than the other team. But I could just be a sore loser… :-)

It was an awesome day with great people, and fun activities. We all came together to learn how to get better ourselves, and how to help the people we coach get better.

I believe that it’s not about how well you do yourself in life, but how many people you personally help do well in life that really matters. I feel like the Fortune Builders are a group of individuals that feel the same way.

To get involved with the Fortune Builders Coaching program click here

Fortune Builders boating

Filed Under: General, Real Estate Education Tagged With: , , , , ,

Why you shouldn’t buy Seattle real estate

April 25, 2013 by Leave a Comment

seattle real estateThis sounds crazy, right?

I know, I know.

What I’m really saying is: you shouldn’t be buying rental real estate in Seattle.

Here’s why…

Seattle real estate prices are too high for rental properties to make sense. You’ll realistically have to pay over $100,000, in a not-so-great neighborhood to find anything that will give you cash flow.

Even if you can find a $100,000 rental property, you’ll only be looking at a few hindered bucks a month in cash flow. Remember any good rental owner accounts for principle of loan, interest of loan, taxes, insurance, property management, vacancy fund, and repair fund. If you think you can skimp on any of those items, you’re in for a rude awakening. And don’t even think about managing your rental properties yourself. You’re not looking for another job, are you? You better not be. Rental properties should be cash flow producing machines that you don’t have to think about. They should be little banks that produce money into your pocket every month.

Now if you shouldn’t be managing your own rental properties because you want to be on the beach somewhere collecting checks, and not fixing leaking toilets, then it shouldn’t matter where your properties are, right?

Right! So what you should be doing is figuring out where in the country you can be buying turn-key cash flowing rental properties. Turn-key implies that the seller of the property has purchased the property, done any construction needed, found a renter, and has a property manager already taking care of things. You simply have to verify the numbers, the neighborhood, and do your research on the seller. This day and age, all of this is easy.

Where can you start…
We’ve partnered with a company called The Passive Income Club. What they do is find the locations around the country that have the best return on investment available.

The really cool thing about The Passive Income Club is they aren’t looking to simply sell you properties. They are looking to help you reach your financial goals.

You’ll have a call with them to go over a of your goals, and talk about how buying rental properties can help you meet those goals.

The typical deals that we see from The Passive Income Club are between $50,000 and $80,000, in good neighborhoods, that cash flow $200-$800/month (yes, this is after all of the expenses listed above).

If you’d like to see how fast you can reach your financial goals with the help of The Passive Income Club (like we have), fill out the form below.

Remember — this is a legit path to reaching your financial goals (retirement, cars, houses, boats, shiny things), so if you’re just looking to be a landlord, and have a rental property, this isn’t for you.

Filed Under: Buyers, General Tagged With: , , ,

When you shouldn’t Use a Realtor

February 11, 2013 by 1 Comment

7We know that buying and selling a house is a scary prospect. Where does the money go? Who should you be dealing with to get paperwork signed? Which house is right for you? Who will buy your house (if you’re selling)? These are all important questions you should ask a realtor, but there are times believe or not, where you do not need a realtor to buy and sell a house. If you’re a motivated seller (i.e. circumstances have changes, your job has transferred you out of town etc. etc), you shouldn’t use a realtor and instead sell to an investor. Surprise surprise, you don’t necessarily need a realtor for every transaction involving your house. Motivated sellers should look into selling their property to an investor and here’s why:
1) Speed
The first and most obvious reason why you should sell your property to an investor is speed. Simply put, there is no other option you’ll have that will help get your home off the market and cash in your pocket. Investors typically know what they’re looking for, their price point and can give you an offer immediately. Usually, investors pay in case, or have worked out their funding weeks ahead of time so there’s no waiting for someone’s house to sell or for a buyer to collect a down payment in time. Working with an investor, you can see things finished (keys transferred and a check made out to you) within two weeks.
2) Convenience
As mentioned, investing in houses is their job. They see buying your home as an investment and a service to you, so they are willing to work with your schedule. You don’t need to stay close to your phone or worry about missed messages, or even have to worry about leaving your house to get out of the way of potential buyers who have come to see the residence.
3) Guaranteed Closure
Investors aren’t purchasing your property to live in, so you won’t have to worry about a sudden pullout by the investor and lose your income. Investors are generally investing in multiple properties at one time, so there is no emotional connection to the house, or to another house if an investor finds something better. If an investor demonstrates interest in your property, listen to their offer! Again, since they’ve figured out their financing ahead of time, you don’t have to worry about a sudden pullout due to a lack of money.
4) Selling your property as is
A huge advantage to selling to an investor is being able to sell your condo/house in the as-is condition. This means your workload is reduced substantially. There is no need for you to repaint the house, re-carpet the living room, or re-tile the kitchen. What your house looks like is what the investor is going to purchase. Whatever issues that come up during inspection, the investor generally takes care of whatever pops up. Putting a house on the market can be very expensive. Thousands in repairs are sometimes needed (all the stuff that piles up over the years) to get your house up to the condition of similarly priced houses in the area. Even after making your repairs, it’s not always a guarantee that your realtor will be able to sell your place. Investing in your house is a time consuming endeavor, so it’s important to take stock of what repairs or repainting your house will need before you consider selling. Investors don’t think of such things when purchasing – they’re more concerned with location, history of the neighborhood and city and overall condition of the house. If your house is in decent condition, you should be able to find an investor fairly quickly.
5) Investors are adaptable
The best reason to use an investor is because of how flexible they can be during the buying and selling process. They are generally willing to structure the deal in any way that you’d like and are amenable to the changes you want most of the time. Since they won’t be living in your house, some investors will even allow you to stay a few extra months while still being interested in purchasing your property. If circumstances change for you suddenly (new job doesn’t transfer you after all for example), there isn’t any lost money – no fees or transaction have occurred so everyone gets to walk away happy. Something that’s very helpful for you and incredibly common with investor bought properties is the investor purchasing the property and then renting it back to you while you find a new place to live. Communication is important in any real estate deal (with a realtor or no), so make sure you keep the lines of communication open at all time between you and your potential investor.
6) Save money
Without a realtor involved in every single aspect of the transaction, you will not have to pay closing costs and the realtor’s commission. When the transaction is completed, you’ll have a check for the agreed upon amount without a huge bite taken out by a realtor. This above all else, is the best reason to sell to an investor.
Investing in real estate (especially after the financial crisis) has become very common over the last few years. Housing markets all over the United States have begun signaling that housing markets are bottoming out and investors are paying attention. The old adage with investing is “Buy low, sell high” and right now prices won’t be going any lower. This means that investors are looking to great places to buy before prices begin to climb back up. There is a lot of money still out there in the housing market, and by choosing the right investor for your property, you can grab some of it for yourself!

Filed Under: Buyers, General, Real Estate Education Tagged With:

Why Real Estate Investors in Seattle Should Look Out of State for New (and Profitable!) Opportunities

January 29, 2013 by 3 Comments

1Since 2007 and the burst of the housing bubble, one of the toughest industries to make money in was real estate. Many people lost incredible amounts of equity and found themselves deep in debt for a property that wasn’t worth what they paid for it anymore. The sudden loss of huge amounts of wealth for the middle class stopped the housing industry and real estate from being a good place to invest your money. Traditionally, real estate has been one of the safest investments you can make. It’s a great way to make a long term investment in your future and build a portfolio of stable income generating properties for investors. The Seattle housing market is no exception to this and over the last few years, thanks to the strong rebound in Washington’s robust economy. The tech industry is expanding in Seattle when in most other markets, businesses were closing down.

Over the last few months, there have been several very strong indications in many markets that a recovery has begun. In many of these markets, savvy investors can find amazing deals on rental properties and places to invest your money. Seattle investors who are looking to make a move into creating channels for passive income can make find some great deals that can mean great profits for you.

Las Vegas

Las Vegas was one of the hardest hit by the housing bust. When you have an economy based on people’s disposable income, it’s very easy for the wheels to come off when a recession hits. This particular recession hit Las Vegas the hardest as many projects (including several casinos that were about to be built), were cancelled due to lack of funding. Apartments, houses, retail space – no one was left unscathed in Las Vegas.

But as quickly as the money disappeared in Las Vegas, it’s beginning to return. There is still a glut of inventory on the market, but the market has bottomed out there and savvy investors who are looking for good long term investments to flip or create rental income from can pick up a lot of amazing deals that can lead to big money later on down the road in five to ten years from now. Las Vegas also has learned the lessons of depending on tourist dollars as their sole source of income and has diversified their economy greatly including health care, biotech and publishing.

Phoenix

Another city that was hit hard by the recession, Phoenix suffered from an overabundance of inventory and a high unemployment rate. That unemployment rate fell to 7.1% last month, so you can expect this market to begin to heat up in the next few months as people become more confident with their financial situation and begin to think about buying a house again. In the meantime, savvy Seattle investors can pick up rental properties to create a passive source of income for those people in Phoenix who aren’t quite ready to buy a house yet.

Memphis

Memphis was a great example of the problems with the housing crisis. It looks like Memphis still might have a little way to go before the prices truly bottom out, but it’s close – waiting for the market to completely bottom out might make you miss out on great opportunities right now on places that might become highly profitable in a year or two. Memphis is still the fourth lowest performing housing market, so that means that prices are still falling. Memphis has a strong economy, but their unemployment rate still stands at 9.4%, so Seattle investors may want to look into rental properties as a way to recover their investment. People aren’t quite ready to buy a house in Memphis, but, they still need somewhere to live and rental properties are a great way to supplement your income.

St. Louis

Low prices and low mortgage rates make St. Louis one of the most attractive markets for Seattle investors to look into as a place to put their money.  July of last year saw an increase of 25% for home sales year over year in the metro St. Louis area. St. Louis’s housing market hasn’t just hit bottom, it’s already in the middle of a strong bounce back meaning it’s a great idea to get in on St. Louis Real estate now for a quick turnaround on your investment. The St. Louis corridor’s median price for a single family home was $213,000 still fairly flat since 2011, but these low prices are making the St. Louis market very attractive to investors and much of the extra inventory is being snatched up. St. Louis is a great market for those investors who are looking to make a decent return over the next two or three years in flipping their house. St. Louis’s unemployment rate is still a fairly high 8.8%, but the strong market recovery indicates an undercurrent of recovery that hasn’t quite surfaced in the lagging indicator of unemployment.

The Seattle housing market still has some great opportunities for investors to make some money – however, the incredible opportunities available in other markets like St. Louis, Memphis, Phoenix and Las Vegas offer investors opportunities for higher cash flow potential and better returns on you initial investment. As it is with many other things in life, research is key. Be prepared to visit the markets and check out the properties in person, whatever small amount you may spend on your research will pay back huge dividends when you find the right place. If you buy the wrong place that has a lot of problems that you need to work on, that investment can quickly turn into a money pit that even Tom Hanks and Shelley Duval can’t save.

The housing market is a great way for investors to make investments for their retirement or create a source of passive income that you see every month. There are many opportunities out there, it’s up to you to find them!

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Queen Anne Real Estate

December 27, 2012 by Leave a Comment

queen anne real estate

When you pull into the Queen Anne neighborhood, you can see immediately why there so many people would want to make their home there. Sitting on a hill just above downtown Seattle, Queen Anne real estate is one of the most sought after places to live because of its convenient proximity to downtown and the unbelievable view of the Seattle skyline.

Bordered by Belltown on the south, Lake Union to the east, Magnolia on the west and the Lake Washington Ship canal on the north, Queen Anne was originally settled by Seattle’s early cultural and economic elite. Here, they built their mansions – many of those in the style where the neighborhood takes its name from. Queen Anne real estate has always been a big draw for the residents of Seattle because of its easy access to downtown and other economic centers of Seattle.

Queen Anne real estate is unique in that it is also the highest point in the city. This means plenty of steep slopes for drivers and pedestrians both (in fact Queen Anne is home to seven of the twenty steepest streets and 120 pedestrian staircases). So, if you are used to a more level surface when walking down to the local grocer, you may not find Queen Anne real estate to your liking. Fortunately, steep streets seem to be the biggest problem for this neighborhood.

Queen Anne offers residents an inviting community where you’ll always find something good going on. You can find a great slice of urban nightlife down on Lower Queen Anne Blvd, or a nice coffee shop where you can enjoy a good book and a cup of your favorite hot beverage. There are also some great options for the family on a Saturday afternoon if you want to visit Seattle Center or participate in the Experience Music Project.

Despite its name, Queen Anne isn’t a place for old fuddy duddies – in fact less than ten percent of the residents in Queen Anne are over the age of 65, the median age of a resident there is 33 years old. Queen Anne is also an incredibly well-educated neighborhood as most residents have at least a Bachelor’s degree or higher. This has contributed to an incredibly low rate of crime and a collection of both excellent public and private schools. There are four private schools available for residents including The Queen Anne Community School, St. Anne School, Seattle County Day School, Seattle Waldorf High School, and even a private university – Seattle Pacific University. With such an emphasis on education, it’s not surprising so many residents have a higher education degree.

If you are looking for the perfect place to build a home for your family, you won’t find anything better than Queen Anne Real estate. With inviting and safe neighborhoods, easy access to the rest of Seattle and a view that can’t be beat, after a brief tour, you’ll see why thousands of people love to make Queen Anne home.

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