Amazing New Strategy to Create Business

We just got back from St. Thomas and had an amazing time. Nothing like a little 85 degree weather to get you completely rejuvenated. While we were gone we sold 2 of ours deals and have another investor interested in the other 2. It seems like when we go out of town, business explodes. Murphy's Law never seems to fail. The best part of the trip was that we thought we were going to have Internet and email, but when we arrived we had no Verizon signal. We checked our email twice while there (on the resorts dinosaur of a computer, I think it was actually dial-up) and had no phone service. We got back Thursday night, sorted through all the messages, wrote the contracts and now have decided to leave again.
I just booked 4 nights in Panama City Beach for Christmas weekend and then booked 3 nights in Myrtle Beach for New Year's weekend. I know we'll have phone and Internet in those places, I pray for the same results. It never seems to fail. We get so busy when we go away. I told Christa that we need to commit to going away on short trips more. So that's what we are doing.
With Real Estate investing, all you need are deals. Once you are in control of the deal, all you have to do is market it. You can market it from pretty much anywhere in the world. You can even sell it from anywhere in the world. The attorney closing these deals has my wire information and we can sign the docs via email and overnight them back. We don't even attend closings anymore. The 2 deals we made are closing on 12/30, we'll actually be in town on that day, but I still won't go to the closing. I'd rather print the docs and overnight them back, then check my bank account from the comfort of home.
Working smarter beats working harder any day! Christa and I both work very hard and are dedicated to doing the best we can, but there's no need to reinvent the wheel and make life any more difficult and stressful than it already is. For the rest of the day today, I'm looking at the kids 2010-11 school calendar and planning all the 3 and 4 day weekend trips I can. My goal next year is to travel every opportunity we have. There's something about being out of town that just feels good. When you're making money at the same time, it feels GREAT!
I hope everyone has a Merry Christmas and Happy New Year. My next post will probably be from Myrtle Beach in 2010!

I'm in Atlanta, but my mind is in St. Thomas!!

I just sat down trying to figure out what to blog about today, but can't seem to get my mind off the weather. Today is cold and rainy in Atlanta and I cannot wait to get on a plane on Sunday and fly to St. Thomas. There's nothing like the beach and I definitely need it. I'm recovering from Bronchitis which has since been diagnosed Pneumonia and need some sunny warm weather.

I really appreciate being able to take trips like this. Real Estate Investing has been a Blessing to my family. It's been rewarding financially and personally in that it allows me to travel freely without being tied down to a 9-5 job. My goal is to get out of town with the wife and kids every 5-6 weeks or so. It doesn't matter how long the trip is, it's always good to be able to just pick up and go. Last weekend we went to Pigeon Forge, TN to see the Christmas lights and shows at Dollywood. We ended up getting snowed into our cabin and just had an amazing time with the kids sledding and having snowball fights. Fortunately the cabin didn't lose power and we had heat, food, Internet, even a hot tub and a pool table. The cabin was amazing, I couldn't imagine being "stuck" any place better. We didn't make it to Dollywood, but it was a fantastic trip regardless. We're unpacking the cold weather gear and digging out the beach gear.

The best part of getting away is that we still were able to check messages and email and conduct our Real Estate business. It doesn't matter if we're home or in Orlando or in St. Thomas, we can work from anywhere. All I need is Internet access and I'm home free. There's not many resorts around that don't offer Internet access. Being in this business allows me the freedom to set my own schedule and earn the money my family deserves.

Even when I'm home I sometimes feel like I'm on vacation. Let's look at what I have done so far today. Today, I woke up, got the kids out the door for the bus at 7:35, had some quiet time reading Scripture with my coffee. I then checked email, posted some Tweets and was at the kids school by 11 to read to my son's first grade class. I had lunch with my second grade daughter then went to Chile's with my wife (I don't really eat lunch with my daughter, just sit and talk to her while she eats). I got back home around 2:30, checked the mail and am now writing this blog post. It's 3:37, the bus just pulled up so the kids are home. They'll sit down, do their homework and then I'll do something with each of them. I think Preston wants to put together another one of the Star Wars Lego's he got for his birthday, not sure what Peyton wants to do. After that, we're having my parents and Christa's grandparents over for dinner then the wife and I are going to see a movie (I think the new one with Sandra Bullock in it).

I used to get up at 4am to deliver potato chips. My life was scripted by my job. Not anymore! We make more money than we ever have (there are always Real Estate deals in EVERY market) and pretty much work less. I don't see why more people don't do what we do, it boggles my mind. There's nothing holding you back but yourself. Stop making excuses and take your life back.

Go to our website, www.richandchrista.com, check it out. There's a ton of free information there to sift through. Educate yourself and then make a deal. We don't sell anything except deals. Most of the Real Estate "Gurus" sell products, that's how they make their money. We make our money doing the deals they talk about. I'm not going to try and sell you something you do not need. I make money when you make money. The more deals we all do, the more money we all make.

As always, feel free to comment or shoot me an email. I look forward to helping you reach your goals.

Positive Housing Numbers Don't Mean Recovery Anytime Soon!

I read article after article about how home prices and sale numbers are rising. These numbers are great and encouraging, but do not necessarily mean the Real Estate Market is on the path to recovery. I live in Georgia, and I see no residential construction happening. Companies that built 400-500 homes per year are out of business. Completely out of business. Everywhere I go I see vacant developed lots sitting. I could only guess as to how many there are, the number is staggering though. These lots that were selling for $35-60k are now available for $5-10k. The banks are practically giving them away. If there were ever a time to build it would be now. With lot prices so low and lumber companies begging for business, home builders should be able to build a very affordable product, right? So why aren't they?
Several reasons, first and foremost the banks won't lend the money for the construction loans. Regardless of what President Obama, Tim Geitner or Joe Biden are saying, there is practically no lending going on right now. Why won't they lend? Good question, that leads to reason number two. Banks won't lend because there is still way too much inventory on the market. Foreclosures and distressed properties (Short sales) account for around 30-35% of all current sales. In addition to that inventory, the banks know that they have over 500,ooo foreclosures that they have yet to put on the market. If there was a recovery in sight, the banks would be doing construction loans. When there is an opportunity to make money again, they will be the first to jump back in.
The final obvious reason is that first time homebuyers cashing in on the Homebuyer Tax Credit account for more than half of all sales. What will happen when the Tax Credit goes away? Everyone is sitting on the fence waiting to see what Uncla Sam does. That is the biggest problem when the government gets in the way, they do not realize that these programs do not sustain growth. Look at the Cash for Clunkers program. Auto sales were awesome in August during the program, what were they in September and October? These government programs artificially boost numbers. That's why you cannot let these numbers fool you. The Housing market is going to be in the dumps for several years. We have to clear all the distressed investory out before any consistant level of home appreciation will occur. We also have to start building homes again. That's not going to happen until banks start lending money again. Regardless, we have a long wait in front of us. Bad for the economy, good for Real Estate Investors. Real Estate Investors will continue to have unprecidented opportunity to cash in and get rich for awhile. That's why we are sticking to the Real Estate Investing business for now.

Atlanta's Real Estate Market's on Fire!

I've heard so many agents and brokers complain that 2009 was a horrible year in Real Estate. 2009 has been an amazing year in the Atlanta market. If you are flexible, you can always make money in Real Estate. So many agents are too slow to react and too stubborn to change their business models. If you follow the market trends you will always make money. I told agents three years ago to begin developing relationships with banks and to start doing BPO's. The agents that listened are making record commissions this year. The money is in the foreclosures and will be for a couple more years. It's really not too late to start getting a piece of this business. Whether you work for the bank or for the investors, there's plenty of business to go around.
I choose to work with investors. The way I see it, I'm working with the party that is happy and making money, not the one giving their houses away. My investors are from all over. They come from California, New Mexico, Texas, New York, Florida and Georgia. They are successful because they have a couple things in common. The first thing they have in common is that they all pay cash. Cash is king when buying in this market. The banks know it and when you make a cash offer it gets priority over the others. Where they get the cash differs. Some get it from their Self-Directed IRA'S and 401k's. Some get it from Private sources, they borrow it from others in order to invest. Some just have it or get it from equity in other properties they own. The key is that they have it, and are getting amazing deals. They can afford to pay 8-10% to use someone else's money to make these deals.
Another thing they have in common is that they have an open exit strategy. Once they acquire a property, they give me time to do several things with it. We first try and wholesale it to another investor. That's how you can make the quickest money with the least amount invested. We just did this in July, August and even this month in September. We bought small brick ranches and immediately wholesaled them. They were all aquired for between $13,000-$14,300 and all sold for at least $23,000. One sold in 7 days, the longest took 15 days. The investor (actually two different investors) made a total gross profit on these four wholesale deals of $44,000. Not too bad, we turned $55,000 into $99,000 just like that.
Time to get the kids in for the night, I'll pick this up next time. There are several other things my investors have in common that I'll share. Every one of these traits make them successful. The key for you is to copy these traits or find clients that have these traits. There is a ton of money on the table right now, you need to reach out and grab your share.

In the meantime, you can go to www.richandchrista.com and find a plethora of free reports, lists and various other tidbits that will help grow your business.

Continued Success,
Rich Reynolds
Virtual Investor Agent

$8000, Going Once, Going Twice, Sold!

I cannot stress enough how quickly 12/1/09 is approaching. It will be here before you know it and just like that, the $8000 Tax Credit will be gone. If you are looking to purchase a home and qualify for this money, act now. Today is 9/17/09. It takes longer than you think to buy a home, unless of course you are paying cash. There are many obstacles that go along with getting financing these days that can drag the whole process out. In my personal experience, the appraisal has been the biggest issue. I have found that once the lender receives the appraisal, they then order a desk review of it, then if any questions arise they require a second appraisal be done, then order a desk review on it. Appraisal issues have delayed closing for more than 30 days. It really is unbelievable.
There is less than 75 days before the program will expire. Interest rates are so low and there are so many amazing deals to choose from. This is the best buyers markets we have ever had, and getting the $8000 is icing on the cake. I would be doing everything in my power to buy a home before 12/1/09 if I qualified for the rebate. Do yourself a favor, contact a lender today and get qualified. Find out what you qualify for and how much your payment will be. Ask for a "Good Faith Estimate" so will will know how much to ask the seller to pay in closing costs. Once you know what you qualify for, find a Realtor and begin the search. There are so many good Realtors out there waiting to find you your dream home. It should take you 2 or 3 weeks to find the home of your dreams and then take 30 days to close. You still have time to get it done so don't delay. It would be horrible to find that dream home and then have something pop up to delay the closing and miss out on the $8000. There are no exceptions, you must own the home by 12/1/09 or you will not be eligible for the money.
Another thing I am doing to help people get the money is offering all my tenants the opportunity to buy the home they are renting. Thats right, if you like the home you are renting now, why don't you ask your landlord if you can buy it from them. We are offering owner financing to our tenants to make it as simple as possible for them to be a home owner and be able to take advantage of the $8000 Tax Credit. You might not even have to move to get the money! How good of a deal is that! You most likely will lower your monthly payment, not move, own a home and get paid $8000 by Uncle Sam. Sounds like a deal of a lifetime to me.
What are you waiitng for?

My New 2.5 Million Dollar Retirement Strategy

I don't think most people understand the power of compounding interest. Anyone that has a mortgage or has actually looked at their Truth in Lending Statement should know. Banks make a ton of oney from mortgages. I've decided to become my own bank. I want to use the same strategy the banks use to make all that money. How can I do this? I need to own a home free and clear without a mortgage. I have an IRA. Can I use my IRA funds to buy an investment property? Yes, if you make your IRA self-directed.
There is the key. Most people do not know they can self-direct their own IRA's. Here's what I've decided to do. I am a Real Estate investor, I'm going to find deals that I can invest my IRA into and have my IRA act as the bank. I have 3 children and the fourth due any day. I want to retire in 17 years. How do I get there.
I'm going to take $180,000 of IRA funds ($90,000 from mine, $90,000 from my wife's) and invest in six rental properties. Affordable housing is always in demand, I can find brick 3 bedroom homes in Atlanta for under $20,000, add in the rehab and I can be in ready to rent for right at $30,000. I find deals like this every day. Most people do not believe me, but they are there. These homes will rent Section 8 for around $850 per month. After taxes, insurance, property management and vacancy I will cash flow approximately $600 per month per home. That money goes directly from my property manager back into my IRA. Once in the IRA, I reinvest the money into a growth mutual fund.
How to we get to $2,500,000? We're investing in the homes for $30,000. These homes sold for between $80,000-$120,000 5 years ago. I look 5 years back, because that is before there was any talk of a "bubble." I think it is a fair assumption, that in 17 years from now they will be worth at least that, we'll use $100,000. Six homes 100k each, we'll sell the homes for $600,000. What about the monthly rent we've been investing in the growth mutual fund? Historically these funds average 12% growth per year. I've decided to be a little conservative and go with 10%. We've invested on average $3600 per month ( 6 homes with an average cash flow of $600 per month). Over 17 years, assuming the 10% growth rate, that would be $1,926,684.28. Add the two together and presto, $2,526,684.28. Properly invested with a conservative return of 5%, that would produce around $126,000 of income annually. I would be able to live with that.
Keep in mind, I've assumed rent will stay the same and also assumed the homes will only be worth what they were 5 years ago. Rent typically goes up, and historically home values will rise over time.
For comparison, if I left the $180,000 in the IRA's, assumed a 10% return over the next 17 years, it would grow to be $909,804.65. That is a good amount as well, but I would rather have the 2.5 mil.
Why wouldn't you make this kind of investment? In this scenario, we are taking advantage of the depressed Real Estate market and using the cash flow from it to invest in the stock market. Your retirement will be growing in Real Estate and stocks. Traditionally both have performed very well. There is a great opportunity to to really grow your wealth in today's market. Those who take advantage of these investment opportunities and properly leverage their cash flow will be sittng pretty in years to come.

IRS Tax Code Cracked, Reserve Your Free Sneak Peak

The First time Homebuyer Tax Credit in the Recovery Act is huge. I'm shocked not that many people have explored everything it offers. Buyers can get up to $8000 to buy a house. That 8k opens up so many opportunities for buyers, sellers, agents and investors.

I can show a buyer how to convince a seller to owner finance a deal for them.
I can can show an agent how to get up to 10% more for their listings in a down market.
I can show a seller how to find more buyers for their homes.
I can show investors how they can get deals turned for retail prices in 90 days or less.

I've done extensive research into all the IRS rules and regulations regarding the credit. What I found was so profound, I've decided to team up with another seasoned expert and create an information series on how to take advantage of this amazing opportunity. This Tax Credit creates a win-win for everyone involved in the deal. The buyer wins because they get the home they've been dreaming about and can also get their credit repaired at no cost to them. The agent wins because this opens the door for them to close 10 times the deals they are closing now. The seller wins because they can get a qualified buyer for their home and get up to 10% more for their home in a buyers market. The investor wins because he can leverage his money into a position that turns his money in 90 days or less. These are unheard of opportunities in this market.

If you thought that the only way to make money in today's market was with foreclosures, you're wrong. We discovered ways to get retail buyers into homes at retail prices. This is the first step to stopping the declining home values found across the Country. We cannot do it single handedly, that's why we are working relentlessly to get this information series put together and ready to be put in your hands. If you want to be one of the first to get this amazing information, go to www.virtualinvestoragent.com and opt in now to get on my email list. In the meantime you will receive free information from me on how to make more money, with less risk and no sweat in Real Estate. No obligation, no commitment, no subscription, Nada. Free from me to you.

Make sure you go to www.virtualinvestoragent.com now, do not miss the chance to be one of the first to get this ground breaking information. This information will change the way you buy, sell or invest.This material is time sensitive, do not wait. Once the government pulls the plug on this program it will be gone forever. Don't be one of the ones who regret not being able to take advantage of this once in a lifetime opportunity.

Getting Back to the Basics.

What made the United States great? Pretty good question. It seems like President Obama forgets what made us great. He can't stop preaching on "change" and "reinventing." Why do we have to do that? Why can't we just get back to what made us great? We've become a nation of consumers rather than producers. We need to begin producing again. The problem with that, is it cost too much for a lot of companies to do business here. Plus, who would want to do business in the United States when the President himself calls out any company that is profitable and portrays them as greedy and evil. I certainly wouldn't. The President obviously doesn't have an Economics degree or he would know that companies exist to make a profit. Profitable companies employ people, are innovative and spend on research and development. Profitable companies are needed to support a strong and healthy economy.
What are we doing to encourage companies to come back to the U.S.? The President is supporting the Cap and Trade Bill, which basically translates into the largest tax increase in U.S. history. The President supports taking over Health care, which would force businesses to provide Health Insurance for employees or pay a penalty (tax) to Uncle Sam. The President supports taking over and dumping taxpayer money into businesses that have failed. How would you feel (Ford, for example), if you did everything in your power to conduct your business to make a profit, and your competitor who has failed to generate a profit gets bailed out by the Government. Hmmm, get rewarded for failure, seems like a fantastic idea.
How does anyone expect new businesses to want to be here? The deck is stacked against them. They have higher costs of doing business, get demonized if they earn a profit and have unfair competition against Government owned and subsidized companies.
We need to get back to the basics, get back to producing goods. The only way we are ever going to get there is for the President and Congress to step back and get out of the way. We need them to have as little involvement as possible so the Economy can revitalize. We need less Government and more entrepreneurs. Lets get some legislation passed that would actually encourage business, rather than chasing it away. Lets applaud successful companies rather than make them the villain. Exxon/Mobile has been crucified the last couple years for making record profits. Do you realize, they also paid record taxes. Do you also realize it is a publically owned company, what about all the American share holders who benefited. They invested in a company that did what it was supposed to do, EARN A PROFIT!
America doesn't need to reinvent itself, it needs to elect some politicians who understand what kind of environment business needs to thrive.

My Momma Even Said it Was Too Good To Be True!

Actually my mother-in-law, it sounds better saying momma though. My mother-in-law approached me in May looking to invest $100,000. She had the money in a CD and uses the money to pay for her monthly health insurance premium. The CD rates had dropped dramatically and if she renewed she wouldn't earn enough to pay the premium. She's on a fixed income and has to earn at least 3% on those funds to have enough to pay the bill. She asked me what to do. How bad is it when you have to scramble to find an investment paying 3%?

I explained to her what we did and how she could earn at least 8.5% on the money or could use the money to do wholesale deals. Initially she was thrilled because she would be more than doubling what she made last year. Then the inevitable occurred. She started asking family and friends. They acted predictably, just like the media. They told her that it was too good to be true. They told her that it was too risky. They told her that there was no money in Real Estate and that she'd be making a huge mistake. She ended up investing half the money in a CD and the other half as an unsecured personal loan at 6% to, of all people, one of the family members that said the Real Estate (which, by the way, is a secured investment) option was too risky. Unbelievable!! She'll most likely never see that money again. I pray that when that time comes, I will be compassionate enough not to gloat and say "I told you so."

Back to the deal I had found for her. I found two brick ranches in Metro Atlanta. One was a 3 bedroom/ 1 bath, the other a 3br/2ba. We found another investor who decided it was an amazing deal. He purchased the homes for $14,300 and $14,742. He choose to have us try and wholesale the deals rather than rehabbing them and renting them. We ended up selling both homes for him in less than 30 days. The sale prices were $24,000, the other for $24,375. That would be a gross profit of $19,333. I'll admit, it does sound too good to be true. But it is not. We find deals like this every day. We had a bit of luck, being able to sell them both in such a short span, but it is not that uncommon. Most of our investors choose to do the rehab and rent the homes. Those homes would each rent for at least $900/month. One of the homes had around $15,000 in rehab, the other around $9,000. If the investor chose that route, he would have had $53,042 invested total in the two homes, generating around $1800/month cash flow. Not too shabby. Considering the homes will most likely be worth $90,000 in 3-5 years, I'd say a very smart investment.

Moral of the story, DON'T BELIEVE THE HYPE! These deals are real and are out there. Those who take advantage will be reaping the benefits, while everyone else will be scrambling to earn their measly 3% in a CD. I hope you will be one of the few that get in the game and take advantage of these amazing deals.

Where are all the good deals?

Over the weekend I gave some thought to where to find all the good deals. I've found that all the best deals we find come from the MLS listings. People are telling you to go after short sales, go to auctions do this do that. Blah, blah, blah, blah. I don't understand why you would do any of that. The deals we are buying and finding are bank owned properties. It doesn't get better than that. If you buy from the bank, you are buying from the source. I see short sales listied in the MLS everyday. They are still priced high. I've gone back and done property history reports on deals we've purchased and found that most of the ones we've bought were once listed as short sales prior to being foreclosed. We just made an offer on one that expired on July 1 and was listed for $89,900 as a short sale. We're getting it for $24,900 as a foreclosure. That is quite a difference, wouldn't you agree. What can you do with an extra $65,000 in your account? If you follow my advice, you can invest in two or three additional deals.
My experience with banks is horrible. Have you tried contacting them these days? I have, and I've waited on hold for hours trying to get through. We own a dozen rental properties which we've aquired steadily over the past nine years or so.We buy and sell as the market dictates. We have several right now that we are upside down in because of the falling house values in the market. I've attempted to reach the Lender with the intention of doing a short sale. I've had absolutley no luck. My intent is to sell these and use that money to get into better deals. We have homes that have $125,000 mortgaged against that rent for $1100 per month. Great deal at the time. Now that is a horrible deal in this market. In the Metro Atlanta market, we're gettting deals under $45,000 that all rent between $900 and $1200 per month. The point is that, the banks do not have the man power to handle the flood of calls they receive each day. They get calls from people wanting to modify their loans, do short sales, make payment deals, you name it. You wait on hold and finally get someone who can't help you. The banks have no choice but to foreclose because they cannot properly assist their customers. Thats why the foreclosure, bank owned REO is the only way to buy these days.
I suggest, you find a good Realtor in your market, tell them what you are looking for and buy some deals. Tell them to stay away from short sales, you don't have the time to waste dealing with these. Tell them to stay away from auctioned homes, they have the prices artificially inflated because all rookie investors bid on them. Most of these auctioned deals get put back on the MLS anyway because they winning bidder typically cannot close. You get a rookie investor bidding these deals up, who think they can go get a loan and buy the deal with no money out of their pocket. Not in this market! You need cash or funds from your IRA or 401k. We'll get into that in another time. The point is that we see deals go off the market and at some point they come back. We just saw one that we lost to an auction in April. It was listed in the MLS for $34,900. We offered $29,000 for it. Didn't get it, the listing agent told me it had been moved to an auction site. Guess what, it came back on the market last week. It wasn't listed for $34,900. It was newly listed for $24,900. We bid and got it for $21,000. The banks have no clue what they are doing. If you are patient and don't get personal with these deals, you'll come out ahead. We got that particulat deal for $8,000 less than we committed to just 3 months prior.
This market is amazing and will continue to be for awhile, not forever though. There are many fortunes that will be made here during the next 18 months or so. I hope you "get off your Donkey" and get in this game while you can make yours.

Cash Flow is What Matters

I had a nice chat last week with one of my investors from the Midwest. He invests in Atlanta and has many associates who only invest in their local markets. I had to ask, WHY? If you are a Real Estate Investor, why would it matter where you invest. Shouldn't you be looking at cash flow, cap rate, equity, stuff like that? He told me that they felt they had to be able to put their hands on it and touch it. That concept confuses me. Why would you want to do that? We hire property managers to manage the properties. We have contractors to handle any maintenance issues. We have video to be able to see the property. If you own stock or a mutual fund, do you go to the front door of the company to see it? No, you look at the prospectus and look at quarterly reports. You're only interested in the bottom line, is the fund or stock performing. That is the same way to look at Real Estate. It is an investment, you invest because you expect it make you money. You do not invest so you can drive by and say "look, I own that." I see investors every day looking at deals in California or New Mexico spending $150-250k on deals that rent for $1200-1500 per month. They look at these deals because they feel comfortable because they know the street the home is on and live in the area. We have deals in Metro Atlanta that are literally $35-55k that rent for $900-1100 per month. Do the math. You can triple your cash flow by simply investing in the Metro Atlanta area. I urge you to treat Real Estate Investing just like any other type of investing you may do. Look at the deal. Look at the numbers. If you do that, take the emotions out of it, you'll make a ton of money and be successful. There's never been a better time to get in the game and expand or start your Real Estate portfolio. Find an experienced agent to find you deals and get started. We find money making deals everyday. They are definitely out there waiting for you to pull the trigger and start making money. Good luck and please feel free to contact me with any questions you may have., I'd love to help you.

Obama

So much has been said about Obama. I sense that many that got duped into voting for him are starting to realize the mistake they made. I believe he was elected for a reason. I believe the reason is to open our eyes before it is too late. Maybe God wanted this so we can step back and take a look at the direction the Country is headed. We need to get back to our roots. This Country was founded on Freedom. This Country was founded as a Christian Nation. It seems that with everything that is going on, we are headed in the opposite direction of both. The purpose of our Government is not to own companies like General Motors, not to run our Health care System and not to control over 50% of the GDP. Government, Federal Government was intended to be small. Instead of being small, Obama seems bent on making it as large as possible. He wants Power and Control of as much as he can get his hands on. Why do you think he always attaches a dire sense of urgency to everything. He wants legislation passed without it being read. He got away with the Stimulus being passed that way, I pray that will be the only item passed that way. Thank God some Democrats are actually beginning to see where he is trying to lead us. We are on the verge of bankrupting the United States and he wants the Senate to pass the Cap and Trade and wants to commit Trillions more to Health care reform. We do not have the money to do it. When Obama urges citizens to tighten their belts, he should include the Government as well. Our deficit this year is going to be more than quadruple what the previous record was. Quadruple. That's right, it is projected to be over $1.4 Trillion. Do you know what a Trillion dollars amounts to? We need to cut the budget, lose all the Pork. We need to cut taxes and encourage small and medium businesses. All these bailouts have amounted to nothing but wasted tax payer dollars. Let capitalism work. When a company fails, let it go away. If there is a need for what they provided or produced, another company will jump in and take its place and operate more efficiently and be profitable. The Government does not need to waste taxpayer money on poorly run companies. That is how capitalism works, supply and demand at its best. Survival of the fittest, not survival of who gets the most Stimulus money. The Obama administration is trying to make companies that earn a profit look like the bad guys. Are you kidding, where would we be without profitable companies? Profitable companies create jobs, they spend on Research and Development. Profitable companies are what has made this country great. Why would we want to make the Government any bigger? What has the Government ever been in control of that has been run efficiently? The IRS? The United States Postal Service? Medicare? Social Security? Everything they have their hands on is a financial mess. If anything we need to get rid of some of the things they have control of. I think UPS and FEDEX would be more than capable of delivering the mail. As far as the IRS, can you say Fair Tax. That is an entirely different issue. With all the issues we hear about Medicare and even the VA hospitals, why on Earth would we even consider a Government run Health care System? How stupid does he think we are? I like it the way it is. Don't get me wrong, it may need some tweaks here and there, but those tweaks need to be in the form of legislation, not control. Legislation directed at Insurance Companies may be what is needed, not the creation of a Federally controlled monster.
I do not see how small businesses can be expected to provide Health Insurance to all their employees. Most small Mom and Pop businesses have a hard enough time keeping their doors open at all. Minimum wage just went up to over $7 an hour. I used to own several small businesses and I'll tell you first hand, payroll is a killer. Add benefits on top of that and what's left? If Obama had his way, everyone would work for monster companies like Walmart, GM, Bank of America and Home Depot. They would all belong to Unions, all be on Federalized Health care and all be as dependant on the Government as possible. He doesn't want entrepreneurs to be successful. He wants us to be like Europe. Look at Europe. They have no population growth, they have no religion. Their centralized medicine has not worked. Heck, look at Canada for that matter. Canadians cross the border to get the medical care they need. They come here, why would we want to create a system like they have? It makes no sense. We need to change our focus. Our Economy will only thrive if fueled by low taxes and interest rates. We need to trim the deficit and cut spending. We need to pass smart legislation that helps the private sector, not that tries to destroy or control it. The Middle Class needs to stand up and demand this from Government. The Middle Class has the Power to elect Candidates that share their ideals and will represent their best interests, not the best interests of a large Government. I pray we take a hard look in the mirror and open our eyes before it is too late. It's not too late, we've already seen a glimpse of hope in the response to the Health care debate. Let your voices be heard. Your elected officials will listen if enough speak out.

5 Great Investments Other Than Stocks????

I just read an article that suggests five investments other than stocks that the author considers great. She thinks that junk bonds, commodities, currency, hedging Treasuries and cash are great investments. What is her definition of great? These all seem like safe investments to me. I don't think you can expect any double digit returns from any of those any time soon. Cash is paying what, 2.5%? Last year commodities rose only 5.8% despite corn and wheat setting record prices. Currency trading is very risky and very complicated, something I would not recommend to a novice investor. Besides with all the government bailouts we're seeing worldwide, how is money a good bet. These governmennts are going to print more money, whenever that happens you can bet inflation will follow and your money will be worth less. Junk bonds, hmmmmm, we've been there before. All the government stimulus/spending will not make a bad company into a good one. I'd stay away from junk and municiple bonds, too risky for me. To me the only Great Investment out there right now is Real Estate. She does mention Real Estate in the article but says it is too risky because she thinks there are too mnay homes on the market right now. That is why it is such a great investment. Prices are so low due to all that is on the market. People need to live somewhere. We find deals every day that have over a 20% cap rate. When you can get in for around $40,000 and receive over $1000 a month in rent, isn't that a great investment? What is it going to take for these people to realize that this is the best Real Estate market for investors that we've seen, period. You can buy for pennies on the dollar and the rents have not gone down. We rent section 8 all day. We get paid by the government direct deposit every month on time. What else could you ask for? Invest in Real Estate today, you won't regret it. It really is the only GREAT Investment out there right now, especially in Atlanta.

Questions to Ask Your Investor Agent, Part 1.

There are many things you should take time to ask your Investor Agent. Investing in Real Estate can be a complicated endeavor if you choose to do it on your own. Take the guess work out of it and hire yourself an Agent. The first question you should ask is one to ask yourself. Should I use an Agent? Sometimes Realtors get a bum rap. Most of these situations arise when you do not have your own agent or you choose an inexperienced agent or maybe just a bad agent. That is why it is so important to take time and due your due diligence to choose the right agent for you. My question to you is, why wouldn't you hire an agent? Did you know that the seller pay all the commission. The seller pays the same commission whether or not you are properly represented. Using a buyer's agent is free. If you choose not to use one you are paying the Listing Agent double. They love customers like you. By doing this you are definately at a disadvantage. Who do you think would have your best interest in mind? The Listing Agent? Guess again. The Listing Agent has a contractual agreement to work for the seller. They sign a legal document called a Listing Agreement. Their duty is to get the seller the best price in the least amount of time for their property. How can they do that and at the same time get you, the buyer, the best price? It doesn't work. Never go into a subdivision or an open house without an agent of your own. You are putting yourself at a distinct disadvantage by doing that. If you were going to court for whatever reason, would you use the same attorney as your opponent? Of course you wouldn't. This is the same thing. Have a professional on your side with your best interest in mind. Best of all, remember that it is FREE! Using a Buyer's Agent is the best deal you can find anywhere. It could end up saving you thousands of dollars in the long run.

What to do with your 401K?

2/9/09
I just read an article that completely shed light on why more people aren’t using their IRA/401K money to invest in Real Estate. The article was from MSN Money and was titled “Lost Your Job? 5 Things to do with your 401K.” The author goes on to suggest five options for your 401K money. Not one of them is to roll it into a self-directed IRA and invest in Real Estate. This just shows how afraid people are of the Real Estate market today. It blows my mind. A favorite quote of mine, I believe it is Warren Buffet, is “when people are afraid, millionaires are made.” This is so true today. There is such an amazing opportunity out there and the few that take advantage now are going to be filthy rich. I know that for a fact. I plan on being a part of it. Christa and I already rolled our IRA’s, 401K and Roth to Equity Trust and have three separate self-directed accounts. We have several properties under contract and have partnered with another seasoned investor to take advantage of all the phenomenal deals out there. The 5 options the author suggested were not mind boggling. He suggested first to cash it out and take the 10% penalty the IRS will hit you with when you do. His thought was that you might need the money now to pay for your mortgage or utilities. That could be true, but it wouldn’t be the most prudent move you could make. Another option was to do nothing. Once again, probably not the most prudent move. You have limited investment options, and a lot of times when you are no longer employed the company will require you move the money out. Third option was to roll it over to a ROTH, take the tax hit now and keep it in Mutual Funds. Not a bad option, probably the best one he gives. Problem with it is that so much has been lost over the past year in most people’s accounts that it would really take years of double digit returns to just gain back what was lost. It could take 10 years just to get even. That’s the reality of where the market is and what to expect it to do in the future. His other option was to roll it over to a traditional IRA, once again depending on your age maybe not a bad idea, but expect a long wait for it to regain all its losses. The final suggestion was to roll it into the new employers 401K, assuming you find a new job, that would be an option just like putting it in a Roth or Traditional.
My suggestion is to roll it to a traditional self-directed IRA and invest in Real Estate. In today’s market Real Estate offers the best bang for your buck. Using your IRA allows you to invest in this amazing market without capital gains. Talk to your CPA about all the tax advantages. We plan on taking some of the gains we make in Real Estate and then reinvesting in the stock market. If you do that, you can take advantage of the great real estate deals and also get back into the market when it is low. I always suggest to diversify, just do it the right way. All the money that is in the market now has already taken a huge hit, its time to get it out now and find ways to recoup it. Once you start seeing results from your Real Estate deals, then slowly and methodically (dollar-cost averaging) get back into the stock market.
Let’s invest wisely and make some real money! Do not rely on the crooks on Wall Street or the government. The government wants you to believe it is the end of the world so they can spend more of your money for you. Wall Street cries for bailout money then they pay themselves Billions of dollars in bonuses for being failures, all with your hard earned money. I’d like to have that job. Can you believe the moxey of these people. They lose a ton of money, and then reward themselves with bonuses. I thought a bonus was for a job well done. The only job well done they have accomplished was convincing the government to bail them out. It’s unbelievable. I’ll stick with Real Estate. You buy a home severely undervalue . It is tangible, you can touch it. You can rent it out and have positive cash flow (remember you paid cash for it with your self-directed IRA, there is no mortgage). Since you bought it undervalue you have an equity stake in it, plus when the retail Real Estate market rebounds you should have significant appreciation. To me it’s a no-brainer. I hope the light clicks on for you too.