Best Real Estate Directory

What a good feeling to finally see a healthy balance in the nest egg account. The emergency fund is funded, the bills paid down, and time to make some smart investments. You have looked around and real estate keeps coming up in conversations and articles. There is about $50,000 sitting in the account, and you are wondering – how can I make money with $50,000?  Is that enough to realistically invest in real estate?

Yes.

You can start investing in real estate with little money.  You have to do it carefully, with forethought, but it can be done. A number of different options are available as a means to do it, too.

Of course, not everyone wants to be a full-time real estate investor, nor should everyone become one.   I do think that you can benefit by allocating some of your wealth into a real estate investment or other areas it will work for you and grow, though.  The problem is – real estate is very expensive. Most people simply can’t drop a few hundred thousand and buy some rental property.

You have to learn about real estate investing

The first order of business that all the professionals and those who are actively investing in real estate will tell you is do the diligence and educate yourself. The recommendation is to spend six months monitoring markets, reading everything you can, learn the terminology of the industry, watching podcasts and reading blogs, and keeping an eye on trends. Real estate, while not as volatile as the stock market, still has risk and can be affected by the economy, politics, and world situations that come at us every day. You need to invest the time and energy to know the local market and community that interests you as well, so you know your investment money is going into a wise location.

Credit reports matter

Spend some time making sure your credit report is as clean as possible and up to speed. Your credit worthiness, along with the percentage you are willing to make as a down payment, both affect your ability to obtain a mortgage for primary or secondary property at a good rate of interest, if at all after the recession. It also affects your ability to qualify for FHA loans, if the property qualifies – the standards are fairly strict. Do not forget first time buyer, or VA benefits, or other potential programs to help bring the cost of borrowing that money, down. And, if all else fails, look for seller financing. Often they will work with particular issues on credit that a financial institution won’t.

I did a lot of research when I started to make good money in my lead gen business and wanted to find a source for second income.  There are different ways to invest in real estate, and you can invest $50,000 and make a return. I will touch on a few of them. If you are interested in how I made my extra cash to invest quickly in my lead gen business, you can click on this link and get some free information, no obligation  https://www.bestrealestatedirectory.com/lead-gen/

What is your real estate savvy and style?

How you choose to handle your $50,000 real estate investment depends on lot on your style, abilities, and time. Being aggressive or passive weighs things like your ability to do remodeling and repairs yourself, rather than hiring it out. (If it were me, I would hire it out and gain a lead gen client from the service provider. But that is just me.) Like to fix things? Like the challenge of remodeling? As an aggressive investor you can make a good return on the right property.  If you are still in a career and your time is limited, or you can not see every weekend swinging a hammer or pushing a paint brush, investing passively in a group or as a funding agent might be more your style.

Want to rehab or flip?

One of the most common ways to invest a small amount for real estate is to buy a property that needs repaired. This could be a distressed property, one that is older, or went through foreclosure and was damaged. The common term is a rehab or flip property. A flip often needs repairs, remodeling, or cleaning up, requiring time and money. Some people buy and flip, some buy, remodel, and rent out, referred to as a buy and hold, utilizing the rental income to pay the mortgage.

If you are a savvy shopper, you can watch bank repossession sales, quick sales, and as-is properties for a good buy. The general rule to make a decent return is your investment should target the purchase price, repairs, and other costs total no more than 80% of the value of the property. It is important to know something about the neighborhood or town, too, as issues ranging from annexation, tax base changes, large projects being built and affecting value, can all take place while you are fixing up a place to rent or sell. $50,000 can provide a down payment, money to repair, and enough equity to secure a hard money loan (HML) for about 75% valuation on the total price for a buy and hold, or up to 85% on a flip generally. If your credit is good, you may be able to score a 5% down, especially in a challenged area.

Where are the best returns on rental property?

Rental property returns best in a neighborhood where rents are fairly high, need for rentals is strong, and rental fees are higher than local mortgages and expenses total. While renting is a good long term strategy as the rent can hopefully pay the mortgage, a flip usually stands to make a higher percentage of return on your investment, especially if you did a lot of the work yourself and did not have to hire it out.  Flipping is riskier, though.  You never know if you are getting into much higher repair bills than appeared at first. Just remember that appreciation alone is not ever a good plan when buying property, especially single family residences, unless there is some inside information you have written in stone.

Renting works best when the property is a duplex, four-plex, or multi-unit, as it allows you to leverage your $50,000 investment.  You can live in one, and the rent from the other units pays the mortgage and hopefully at least a portion of your expenses. Some buy and hold investors also buy like they are going to flip, remodel/repair, then refinance the property to use the rental income to pay the mortgage, and the gained equity to invest in another property – the best of both worlds. Multi-units that are rental ready may prove easier to find than ones needing repairs, however. The later inventory overall is less, and they are snapped up quick.

Planning for emergencies and the unknown is a must

A word to the wise on renting out property – always have a cash reserve put aside to deal with issues that arise, because they will. Make sure you estimate expenses correctly, including vacancies, insurance, taxes, and any utilities included.  It is also smart to invest in either a management company handling the property, or at a minimum a credit and background service to check on potential renters. There are regulations and laws that strictly control access to that kind of information, so a highly rated company with good security is a must. Knowing who you are renting to can save many headaches, and hopefully provide a smother, consistent cash flow for your return.

One thing to remember, though, is planning on the increased value of property to be your ace in the hole is not a sound strategy in the long run. Property fluctuates with the economy, so your increase in value can just as easily become a decrease. Something that you can count on, such as rent, especially in areas where there is limited affordable housing, is a much safer investment plan. Finding a good real estate broker that is willing to help educate you and establish a long term relationship can be a valuable asset.

Live in Buy and Flips

A variation on the buy and flip is the buy and live in flip. You have to have a place to live, right? Maybe the house needs a bathroom and kitchen remodel, and you can do the work, and can also live with what is there while you do it. This can be a good way to build up equity in a property, and once the remodeling is done, list the house and use the added value to find your next house to live in. Each time you can go up in value, or use the extra cash to finance additional properties while living in the current project. This model also may have tax advantages if you stay in the house long enough, as profits usually are not taxable after so long a time of residency. Talk to your tax professional about your state laws and your particular tax situation.

Turn-key investment properties

If you are a passive investor and do not have the time or desire to rebuild a property, a turn key property investment may work well for you. Just like it says, the property is usually ready to rent. There are a few companies that buy the property, have you pay for it and the upgrades, and then manage it for you. Either way, someone else takes care of the hands-on part and you get a return. While less of a hassle, your return generally is smaller, and you also need to make sure to do your own investigation on the property and potential costs to make sure a good buy, is.

Turnkey properties and companies have caveats, though. There is a habit for properties to be higher cost than they should up front, especially for out of market investors who may not know the real prices and issues of an area. And, too often there are incentives for companies to have tenants come and go and repairs to be more than they should, since they make management or repair fees off them. If you decide to go this route, a lot of homework in advance is the only safe bet.

Is a real estate investment joint venture or group right for you?

Another real estate investment strategy growing in popularity is a network of seasoned investors working together in an investment group. Sometimes these are set up as joint ventures, or you can just write a loan to the group with the property as security.  This usually affords you a set return with regular payments. You can usually get involved either as an equity investor or straight out lender. Do not agree to too small a return on your money, such as single digits. It does not allow cushion or a sufficient return for the time it may take to get all your money back if the market shifts.

It is important to know who you are dealing with, especially if the investments are flip properties. Are they a seasoned investor who is willing to share their real estate financials with you?  It takes a lot of money pooled together from a number of sources to buy larger properties, making it sometimes more challenging to know who you are dealing with.

Most partnerships and projects are technically illegal to advertise for a partner. Ask around your network first who is looking for equity money.  Check into local investor groups.  Since new investors often can not qualify for larger mortgages, and often investment agreements involved higher ticket properties, such as syndications that buy apartment complexes and the like, your money’s safety often rests on the credibility and ethics of the other investors. Also, make sure that the division of profits is fair, and what fees will come out. Ask questions up front before you sign the check.

The new kid on the block is peer-to-peer or crowd funding real estate

One of the newest methods of investing smaller amounts of cash into property is crowd funding and peer-to-peer funding.  A big advantage to crowd funding is that the investors they work with are already vetted. You can also usually start with as little as $500 to begin the investment process, with $1,000 – $10,000 the average, and can spread out the amounts to different loans.  There are some fees associated with the accredited investors, and it does limit the investors you have access to, but generally, is safer.  Since this is a new form of grouping funds to make money, the list of crowd funding sites that will work with non-accredited investors (you when you start) is small. It is sure to be an area of growth in the future, and becoming accredited is gaining accessibility.

Last but not least is real estate investment trusts, or REITS. These funds are purchased usually through your brokerage account, and act like other funds groups. They vary tremendously by the initial investment amount, but most must distribute 95% of their earnings to shareholders.  They range from private to traded accounts, and fees vary and may be higher than other forms of real estate investment. Ask your broker for clarification and what is currently available as they tend to bury information in massive bulletins.  Know not all are liquid, so you may be locked into something you do not want to be in the future. Make sure to ask questions about fees, returns, values of the company, risk factors, and how they distribute.

So is your head about to burst from TMI?

I know mine was when I started looking into real estate investing when I had my first nest egg out of my lead gen business. I knew when I graduated from college that I had to find another means to put money away, so after starting the corporate grind for $35K, I looked into many money making opportunities, ranging from MLM and drop shipping to real estate. I did not have enough to invest in real estate at the time, so I hunted for a good business to do on the side. Since my background was in computers, I started there. I made a little, but the hours, along with the corporate job, were killing me. Rehabing real estate is kind of like that, every weekend spent cleaning, tiling, fixing, plumbing, painting, digging, pounding. Not the most fun. Especially for a 25 year old. We want to snowboard and party some!

I was making a little decent money and started looking at real estate investing with a small amount of money. I realized quick I did not have enough to make much return. While I was looking I ran across articles about digital real estate, in other words, owning things that lived on the web. That got my interest since my background was in computers. So much of the stuff I had investigated up til then had looked like get rich quick schemes.  Then I ran across an article about a guy named Dan who was building lead gen sites. Those are websites that hook up someone searching for a product or service and the company that can help them with it. And he was making killer money doing it.

There is an easier way to make great return than real estate on way less than $50,000

After a good amount of research, and finding out this Dan guy appeared to be pretty real, I signed up on this link https://www.bestrealestatedirectory.com/lead-gen/ for a call to discuss their business model and what the training cost.The call was free and there was no obligation, and no pressure when I talked to them. They wanted a good fit as much as I did, which I really liked. And I got all my questions answers, no avoiding stuff. That was super important.

So after the talk, I decided to pay the tuition and learn the model. Man am I ever glad I did. My little bit of nest egg more than paid for the tuition and getting my first site up, that I wrote while I was talking the training. It took me about six hours and this is it:

 

I still own this site and I hardly ever touch it. And I have made after expenses in the last 4 ½ years over $34, 600 in profit on it.  Seriously.  I rented it out the same week I wrote it to a business owner, who still pays me $750 a month and has for 4 ½ years and is thrilled to do it to get the business I send him. Nice profit for a not-quite 30 year old.

That first small win was followed by others. In just five months I was able to kill the corporate job, paying all my bills and building my business. And I have never regretted the decision. I love being my own boss, working when and as much or little as I want.

Yeah, it was scary at times, and it took some work, but since I had already been in business on the side, I knew any business, period, took work. I continued to build my websites and grow from my home. Today, 4 ½ years later and less than 8 after graduating from college, I am going to clear close to seven figures in profit this year, and I have not passed my 30th birthday yet.

How would you like to put in 5 months of work and in less than 5 years be making 7-digit profits on a business you own, control, working when you want to and for you, not someone else making a buck off your sweat?

This is one of the fastest growing, highest need and potential industries world wide in business right now. The potential is limited only by your working the plan. Are you interested in finding a way to actually have the money to buy property as a secondary income stream, and not have to worry about the economy, or a storm taking what pays your bills, out?

If you are ready for a real opportunity with no pressure, no obligation, no cost up front to get your questions answered, click this link https://www.bestrealestatedirectory.com/lead-gen/

In the six months it takes you to learn real estate jargon, you can be cashing in to invest in a real chunk of real estate, not just $50,000 worth.

 

 

 

 

 

 

Being in your 20’s is the sweet taste of you. It is dope to have your own place, car, job, and friends.  Being in your twenties means you are adulting, make your own decisions, and are still learning what you are about. We express fast and furious, in the moment. Multi-tasks? Normal.

Your 20’s are a great time to begin to invest for your future

Buying a house is an American dream for most 20-somethings. According to realtor.com, Millennials are being seen as a strong force in real estate these days, especially in the high ticket (think luxury) real estate, where they received 49% of those jumbo (over $417K) mortgages last year. It looks like that trend is going to continue for 2019. That’s fire.

A couple of things affect 20-somethings more than a lot of other generations looking to invest in real estate.  It can be one of the most expensive decisions you will ever make.  You have to be thirsty to learn the ins and temperament of real estate investing and maybe willing to put in some sweat equity, and a bit of luck blesses you, you might be able to find a piece of property you can responsibly afford, improve, rent or live in, and increase your equity.

So are Millennials broke or not?

Where are 20-somethings getting that kind of money?

It made me wonder as all I keep hearing is how hard it is to make rent.  Many of my old friends went home to live with their parents as they keep saying how hard it is to make ends meet.  Just graduated and a student loan debt hanging over their head, 20-somethings many times do not realize you can not invest your way out of debt or money management challenges. Many have not learned the discipline yet to control spending habits and stick to a budget. Many more have not had to face a car payment, rent and utilities, student loan repayments (which are no longer deferred once employed), health and auto insurance on your own.

My new friends from my lead gen business, well, they can qualify for those high ticket mortgages, straight up lead gen money. And yeah, a bunch of them are 20-something Millennials. They see the future in the Internet and helping businesses grow and get customers.

There is an old adage that compound interest is the most powerful force in the universe. That applies to money you have socked away for the rainy day, the bucket list, or simple survival. Real estate investing is hard to pigeonhole, though, as compounding your cash. It runs more like simple interest, a flat return on what you put in, in the form of a rent check, or the mortgage paid. That is, if the house does not need a new roof, the tenant’s kiddo did not decorate the walls, or the renter moves out and moves it all out.

Buying real estate requires resources – like cash

Real estate investing is a skill that requires resources.  It is considered a short-term investment that requires disciplining yourself to put money away. In Jeff Rose’s Jan. 19, 2019 Forbes.com article How to Invest in Your 20’s : Financial Advisors Share their Best Tips, Eric Jansen of AspenCross Wealth Management says truth – learn that “money is a tool, not a solution to your problems.” Jansen continues suggesting since you are trading your time (work) for money (pay), make conservative decisions for short term investments like saving for a house. He suggests money market, CD’s, or savings as safer and so you know your return.

Finding savings that pay above 1% can be very challenging, though. What you need is a return on investment, or ROI, that keeps up with inflation and also provides funds for reinvestment.

It is hard for me to wrap my head around 1%, since my lead gen business regularly slay 80-90% returns. A 1% interest payment, if I even could get that, just does not cut it for me any longer. I like those high double digits, and I make a lot more.

An easier solution is what I found. I earn my money firstin a high return on investment business I own, lead gen sites. I regularly earn 80-90% profit on them, and now make a tidy high six figure income, and I am not 30 yet. You can check out how I did it here: https://www.bestrealestatedirectory.com/lead-gen/

That way I am not paying interest and nothing goes to capital like it does in a conventional mortgage.

How to invest in real estate is a mind muscle

One of the most important things you can do is study and learn the what, where, and how of real estate investing in your 20’s. Nothing beats boots on the ground in terms of gaining a grasp of terminology, picking up a little wisdom on how real estate contracts read and function, and what all the hidden costs are to owning property. Owning your own home or even better, a rental property and your core home, sounds like blue sky and dollar bills, but there things like property taxes, home owners insurance, HOA fees, utilities, and plain old maintenance that lurk beneath the surface of every property.

Real estate is usually safer than the stock market

Smartasset.com in the May 2, 2016 article Top Three Reasons 20-somethings should invest in Real Estate, pointed out that real estate can be a hedge against the market as real estate is not as volatile as the stock market. Millennials are especially uncomfortable with investing in a roller coaster stock and bond portfolio, and often keep 70% of their assets in cash. Cash does not work for you a lot, though, when interest rates are so low. Real estate can be a more stable buffer with more ability to make a profit.

We hear from the time we are born that investing in real estate is the ticket to a financial future. The difficulty, though, is either getting together the down payment, often a required 20% due to age and lack of loan history, or even meeting the mortgage payments. It’s great to buy a rental property or even your own home, but with little loyalty by companies now, what happens when you get laid off and can’t meet that bill? The bank has anther property in their portfolio.

Real estate sometimes does not require a huge investment up front.

As a millennial, you may or may not have much credit history except student loans, a vehicle, and probably a credit card. Some mortgages can be written with 20% or less down with good credit and a stable employment history with a debt ratio low enough to show an ability to meet the payments. FHA’s can be written for 3.5% if the property, and you, qualify. There are programs to start you off investing in real estate with no money, such as Rachel programs, first time buyer, VA, or USDA loans, some which require no down payment. Most do require you to live in the house, though, for a set period before you can rent out the property.

Creative options are available for buying investment real estate

Some other options are out there, like private real estate purchasing, investment real estate which often requires sweat equity including flips and repos, investment clubs where you have little say in how the money is invested but can start small, and real estate crowd funding. Crowd funding lets you start investing in real estate with little money – at least of your own.

Real estate crowd funding is the new kid on the block. The FEC finalized Title III of the JOBSAct, making it legal for anyone in any financial posture to invest in crowd funded real estate. Often those “group shares” can be started for as little as $100. Remember that when a profit is made, it is divided amongst all the members of the crowdfund, so amounts usually are small.

A really big challenge for 20-somethings dealing with real estate investment is pure experience.

Few have rented or owned property previously.  Fewer still have maintenance knowledge, can effectively manage contractors and service providers, or possess the skills to negotiate with a financial institution for a loan with limited credit history. Utilizing a management company is an option, but they tend to eat away a lot of your profits.

You need to learn all you can about real estate and real estate investing, first

Learning all you can up front about how to invest in real estate for income, how to invest in out of state rental property (challenging when you are a newbie), or even how to buy your first rental property are all topics you need to become well acquainted with. Believe it or not, Zillow and Trulia are really good sources for education on a geographical area, what median sales prices are, crime statistics, school locations (a big consideration for resale on flippers), and other topics.

Beginner real estate investing books are also helpful, as are blogs and articles (like this one) that give you information and ins and outs of the industry. Due diligence and being a wary consumer are your best friends when investing in real estate, especially for properties requiring considerable remodeling, reconstruction, or at a low price point.

If it is cheap, there is a reason. It might be a good buy. It probably is not.

A positive balance sheet and savings helps a lot

The solid truth, though, is bumping up your cash flow will help your overall portfolio, balance sheet, and expendable income. You have to learn how to increase your cash flow in real estate so it does not choke you, or worse, foreclose on you.  While it is great to think about owning a house and renting it out, and realizing that rent as extra income, few 20-somethings are flush enough to pay cash for a property, even a flipper or rehab.

Truth is, there are repair expenses, mortgages to be paid, taxes, utilities, HOA fees, and other costs that cut the amount of extra income you really have access to put towards, say, your student loans, when you are dealing with real estate investments.  And a lot of times those expenses can not wait, so having a buffer set aside to deal with them is the best solution.

It does not matter commercial or residential, things like a renter skipping out or a leasee cancelling six months early can cause major panic about how you are going to make that mortgage payment? Sometimes hidden repairs, like failing plumbing, can lead to massive repair or replacement bills. Your investment monies you did put down are not liquid, either. It is in a fixed asset and pulling it out to make a major car repair just isn’t happening.

Wouldn’t it be easier if you started with the cash first? You can.

How about making the money first so you can pay cash for a house or investment property in your 20’s?

That is what I ended up doing after trying it the hard way.

Yaasss.  So much easier.

When I graduated from college and took my first corporate, $35K/yr job, I quickly realized that there were lots more expenses to being on my own than I had thought about. I know a lot of friends my age felt the same way. I knew I had to have more income if I wanted to have a decent life style, let alone buy a condo or house. So I started looking for a business I owned that could be done outside my 40+ job.

I tried multi-level marketing, and quickly alienated most my friends and family, as well as had a lot of money tied up in products, paperwork, you name it. I kept looking around and Amazon started taking over, so I tried reselling on their platform. I made some money, not a ton, but decent, but I also was working myself to death for a slim profit margin by the time I paid for the product, shipping, packaging, and listing and selling fees. I still needed something stronger with more potential and less overhead. I mean, life at 25 was not supposed to be so dang serious, right?

Owning a high profit business can provide resources to build your stable of properties

Then I ran into an article talking about the future of Internet marketing and lead generation. I kind of knew what it was, since I worked in computers, so it caught my attention. The article talked about this Dan guy who had written training from his experience in putting together lead generation sites. That was pretty interesting, especially when he started talking numbers and having a life again. He was working the business himself, every day, while making sure he made time for family, health, and some play. And he was making serious cha-ching.  I liked those ideas, but I am always a little sus, so I checked him out.

Dan checked out as the real deal, and I realized he was not much older than me. Talking to them was free, so I figured what the heck and clicked on this link for more information:  https://www.bestrealestatedirectory.com/lead-gen/

Prepared with a list of questions for the meeting call, Dan did not sugar coat anything. He was straight up, and I felt like he was making sure I was a good fit for their working group as well. I liked the fact he was concerned about who I was, what my “why” was, and my goals were. And he was set to break the Internet.

After listening and thinking it through, I could see the numbers were easily there with a little work, and a massive amount of potential existed. I already knew from my job that few businesses really knew how to market themselves, especially on the Internet. I also knew that giving more than you get, running an ethical business, was really important to me. It obviously was to Dan, too. So I paid my tuition, did my studying, and got to work.

I never regretted making that call.

While going through the training, I wrote my first lead gen site. It took me about six hours since I had little experience. It actually was pretty easy. I still own that site, and since its pics or it didn’t happen, here it is:

 

I followed exactly how Dan said to find a customer for the site and had one signed up within the week for $750/mo, renting him the leads. Leads are when a customer is actively looking for something on the net, and already wants what you have. I just make it happen, to hook people with a need up with people who can fix it for them.

I still own this site. See, that is the sweet part about lead gen. You own the sites, like owning real estate. Except the cost of acquisition is WAY lower and the overhead is too. The same customer still rents the leads from me 4.5 years later. After those six hours (I hardly ever touched it after that) I still get an automatic deposit every month, and after some small expenses, I have cleared over $34,500 on this site in profit for six hours of work. And the customer is thrilled with the results.

Do you really want 2 a.m. tenant calls?

Guarantee if you have ever had to rip out and rehang drywall on a ceiling, or retile an entire room, you know it takes a lot longer than six hours and you are not going to get back clear that kind of money every month off rent, anytime soon. Oh, maybe in 20 or 30 years after the mortgage is paid off. Of course by then you have had to replace the roof, some of the plumbing, painted umpteen times, remodeled the kitchen costing 10’s of thousands, snaked a toilet at 2 a.m. in freezing temps, replaced the HVAC unit (another 4 digits)….

Get somebody else to do it for you. You can afford to if you own the right business.

The best advice I can give someone in their twenties wanting to invest in real estate is this – make some money first! Then if you really love demoing and eating plaster dust, have at it. But pay cash for your property and use it to diversify your portfolio. The only way to truly make money on real estate is being able to afford to make money on real estate.

You are worth more than you think at 20-something, if you want to be

I have built a high six-digit lead gen business in 4.5 years. I walked out of the corporate job and was paying all my bills in 5 months, yup, 5. So glad I did.  Yes, I had to work, especially those first months. I had to get outside my comfort zone sometimes. I had to learn to prioritize, be organized, and be focused and persistent towards my goals. Humble brag but every word is true.

And you know what? I made it. My goals are now realities. I am investing in my business and new ventures to make even more money. I am comfortable. I can afford to buy a real estate investment property, travel, and take off when I want to. I am my own boss. I like calling my own shots and making more money than both my parents combined. And it all started with clicking on the link and making a phone call.

Haven’t decided what great experience I will do this year for my birthday. I turn 30.

End the fear and get out of your comfort zone like I did. It is free, no one is going to pressure you into anything. Your time will be respected, and your questions answered. I know that is a lot more than most of you are getting at your current job.

Freedom is a mouse click away.

https://www.bestrealestatedirectory.com/lead-gen/

When you hear the song “This Land is My Land”, a lot of people think of the vast resources and real estate in California. From the beautiful rocky coastlines to the deserts and mountain lakes and forests, there is something for nearly everyone in the Bear State. A big variety of real estate investment is available there, with just about anything you can imagine from residential to commercial to vacation home real estate investments

Is Real Estate Investing California Dreamin’ ?

At 770 miles long and 250 wide, California only follows Alaska and Texas in size. Believed to have been inhabited for over 10,000 years, over 70 native tribes inhabited the area when first visited by Portuguese explorer Joao Cabrilho in 1542, only 50 years after Columbus visited the southeast coast of the US.  Spanish missionaries set up residence by the mid-1700’s building a trail of missions near the coast stretching from San Diego to San Jose. An interesting fact is that even though explored and settled, European maps showed California as a massive island up until the 1840’s after cross continental routes were found by trappers in the 1820’s.

First a Spanish territory then part of Mexico, heck, California was even an independent country for a month in 1846 during the Bear Revolt.

California was part of the settlement of the Mexican-American War, and after gold was discovered in them thar hills at Sutters Mill in 1848, was quickly made a state in 1850. What was once a strong, well organized Hispanic and indigenous culture centuries old soon became overrun with miners, vagabonds, and those seeking fortunes. The rich, loamy soil of the Imperial and Central valleys attracted Chinese and Italian families concentrating on feeding the miners and growing western populations, and as the gold petered out, cattle, orchards, vineyards and crops took over as California’s #1 economic base.

California has a solid economy

Now at nearly 40 million residents, California is the most populous state in the United States – 18.7 million in the greater Los Angeles area alone. If it were a country, California would be the fifth largest economy in the world at 2.9 billion. San Francisco has the highest per capita income in the U.S. at $99,000/yr. That density lends itself to great amounts of real estate being transacted. It also means that property often is at a premium.  You may have to have deep pockets – very deep pockets – to invest in California real estate nearly anywhere in the state.

Some of the most expensive median priced homes by zip code in the nation are in parts of California. With three of the 10 largest companies by market capitalization in the world are based there, Silicon and Simi Valleys, a lengthy list of vacation spots, and every imaginable recreation, California offers a plethora of work opportunities. While shipyards and defense industries are not as strong as in the last century, manufacturing, business, finance, and professional services, and science, agriculture, global technology are. Real estate is big business here. All those people have to live somewhere, run a business somewhere. Seems like a ripe market for real estate investment.

Like most states, California has some challenges

Not without challenges, though, California continues to struggle with air pollution, serious potable water issues, migrant emigration affecting agricultural production costs, and adapting to climate fluctuations. True, California has gone to lengths to try and stem the air pollution issues caused by so many people and so many cars on so many miles of freeways.  Recent years have seen lengthy and costly droughts, multitudes of mudslides and flooding events due to over development, and disastrous forest fires. And always innovating, they are the first state requiring green technology and solar on new construction. Land in large urban areas is scarce, footprints tight, and not an inch is extra.

Each of those things can and will affect real estate prices in a particular area, and will challenge 2019 real estate values in some areas, particularly in fire zones after last year. The critical water needs of southern California grow worse due to dwindling aqua marching by pipeline over the mountains from the Colorado River. And economists will tell you that SoCal is the predictive stall and recession barometer for real estate transactions that affect other parts of the nation in the future.

SoCal real estate has been flat-lined for 4-5 months. In a market that has been stupidly overpriced for decades, buying now is not only risky, it may be fool hearty. How about investing in yourself and letting it dump, then buy your dream place for tens, if not hundreds of thousands, less? Click here to find out how https://www.bestrealestatedirectory.com/lead-gen/

Climate plays a role in property prices in California

Weather plays a big role in California real estate, because sans air pollution, it is nice. Southern California, known for warm temps and nice beaches, harbors the hottest and lowest place in the U.S. – Death Valley. As you head north, the humidity and cooler temperatures allows giant sequoia forests, the largest living organism in the world. Three mountain ranges – the Cascades to the north, Sierra Nevada to the east, and Techachapi in the south regulate weather.

Overall, California, even for its massive size, has some of the most temperate, even temperatures year around in the United States. Match that up with close proximity to mountains, forests, deserts, oceans, and everything in between being just a couple hours drive, and California truly has something for everyone. Including traffic. Lots and lots of traffic. If you want to live where there is work, you must live where there is traffic in California.

One thing I learned when I was looking at California real estate is despite rumors, California is not as regulated as many might think.

There are a lot of things like water and mineral rights you have to pay attention to, as well as previous lending against a parcel of property. I even ran into one the realtor had no idea there was a second mortgage against until the bank seized it mid-offer. So due diligence is super important when you are looking around. There are also deed and community restrictions you have to watch, and some areas even have restrictions on the kind of roof, power source, and fire setbacks that are needed. And property taxes are high, as are most other taxes.

California is not cheap to buy real estate

If you are looking for investment rental property in California, you better be prepared to shell out some money. With the California real estate market in 2018 hitting a flat line, but prices not going down yet, things are still really expensive. You have to check the price rent ratio to see if the purchase worth the trouble. Some of the leading news sources are saying that California homes sales are down as far as how many are seeing, by something like 20% in 2018 over the previous year.  They think it will be a continuing trend, too, as prices keep skyrocketing and interest rates, while still low and somewhat unstable by the Fed at this time, are going up most likely. Those things tend to chill sales. They also are indications, along with the slowing housing market spreading, of another recession, which a lot of economists are saying to start watching for in 2020.

I don’t know about you, but I will wait until prices settle then reduce before I consider investing in residential or commercial real estate in California. I can save a lot of my hard earned money that way. There will be a lot more short sales, REO property, and even some foreclosure bargains available then.

Real estate is in a flat-line currently in the Bear State

There are a lot of things the pundits are saying affects the real estate market, including the gross national product, how stable the jobs reports are, and other things. With the volatility of the scene changing daily based on who we are having a trade tiff with, it seems like there are a lot of eggs in one political basket if you ask me. Reports out of California, especially SoCal, are that house sales are pretty much flat lined and have been for 4-5 months.  If you check out the key places people refer for housing sales, like Zillow, Trulia, and Freddie Mack postings, you will find markets cooling off in their trends listings, too.

Many places around the nation are seeing housing pricing stabilize and valuations falling slightly, as much as double digits in a lot of places, in the last few months. And that seems to be across the board, whether single family, condo, townhouse, luxury, you name it. In California, this is in a housing market where thousands of people’s homes burnt to the ground and a place to live had to be replaced.  Prices of homes in California did not decrease, they increased. So, prices are still going up, and closings, down. That is an economic indicator of a buyer’s market overpriced with too many houses.

With mortgage rates increasing, the financial houses are telling us that only if lower price point buyers have larger down payments will the housing market stabilize. Like that is going to happen any time soon.

How expensive is a house in California?

One of the biggest challenges when investing in California real estate is how to pay the price, or even the down payment. NAR is quick to tell you that San Diego, Los Angeles, San Francisco, and San Jose have some of the most expensive average home costs in the nation. It is true, however, that San Jose and San Francisco lead with positive equity. But the median prices? Wow.

• San Bernardino – Riverside – Ontario — $399,950. Ok, that might be doable, except the 2-4 hr commute every day. Or more. Have you driven around L.A.? All 502 square miles of it?

 

• What about northern California where the girls are warm? Sacramento -Roseville – Arcade – Arden — $469,050.

 

• What about beaches, boats, and Balboa? San Diego – Carlsbad — $775,020.

 

• If you want to solve the freeway problem (you really don’t, you just trade inside the city dead stop for freeway dead stop), how about Los Angeles – Long Beach – Anaheim — $834,050.

 

• And if you really want to be a bay area real estate mogul – San Francisco – Oakland – Hayward — $1,000,015.

You can pay that baby off in 10 years plus interest with that $99K/yr job, if you don’t eat, walk to work, and never get sick.

Not sure about you, but those prices give me heartburn on my $35K salary I was making when I started to look. That is not even talking about a profit on the investment.  I just could not see my way to real prosperity through real estate. I am making 80-90% return on my lead gens. A lot less heart burn, a lot more happy dance.

There are much better ways to do it, people. Invest in yourself for once.

California real estate investment interested me early on, since it was a younger environment and there was work there in my field, computers. I looked around, but man, I simply could not justify the prices of residential real estate and really see it as an investment at the prices they were getting 8-9 years ago. Even after the recession and the housing bust in California with all the mortgage defaults, it still would have taken every cent I earned to pay a mortgage, if I could have even qualified for a real estate loan.

Rent was nearly as bad.

A single bedroom studio for a young man like me was running $1200-1700 a month! That was no utilities, either, and often no parking space. I knew I would most likely end up somewhere around Silicone Valley if I did move. It just was not smart or realistic.

So I looked around and found a corporate job where I could afford a place back home in the upper Midwest. I could afford rent on the $35K a year job I took after graduation, but quickly realized that I was never, really, going to get ahead. I wanted to be able to afford a place that I wanted, where I wanted to be. That was going to require a lot more income than I was making working 40++ hours on salary. So I began to look at my own business options for a second income.

I looked into MLMs, and spent some money on a couple. My friends and family soon disowned me.  I quickly learned only the top dogs make bucks. Then I looked at other web options, and started a reselling business via Amazon. I made some decent side money, not a killing, but the hours it took to do it and keep the 40++ going nearly killed me. I also had inventory in every nook and cranny of my already small place. Something had to give.

I needed a good business model to pay for a piece of real estate

I went back to reading and studying and hunting for a good business model.  I had already spent way into five figures on training and programs and was getting pretty frustrated when I ran across this guy, Dan, and his lead generation coaching program. That caught my interest. I knew from my work most businesses did not know how to leverage the internet to increase their sales.

After watching a couple videos and researching, it seemed this Dan guy was pretty legit.

He shot straight from the hip, and was working the same business model he had developed training for. Everything checked out about him. And when I researched the opportunity for lead gen on the net and the future, well, that was really impressive. So I clicked on this link https://www.bestrealestatedirectory.com/lead-gen/ and made an appointment to talk and ask questions.

There was no hard sell. In fact, Dan struck me as if he really was trying to weed out tire kickers and people who were only going to think it was easy. I knew already that owning your own business was work and required dedication, so that hurdle was done. Dan was really transparent. He told me I could find the stuff if I researched long enough, but he had been working the model for 6 years refining it, honing it, learning how to make it pretty bullet proof. I was impressed. I thought about it and said yes, paid for the tuition, and started to study.

And here is the simple, high income business I found to pay for it

The material was not hard and it was logical. It was very straight forward and well written, simply written, so anyone could understand it – something really rare in computer training.  It was obvious you did not have to be a geek to do it, either, even though I was sort of. I studied, followed the process to a “T”, and a within the first week had my first lead gen site up.  This is it –

I still own it.

I rented the leads right away, and to this day, 4.5 years later, I still have the same customer who pays me $750 direct deposit every month. It took me about six hours to build the site, and after some minimal expenses, I have cleared over $34,500 in 4.5 years from this one lead gen site. And I hardly ever touch it. The part about lead gen sites is you own them, virtual real estate. Sweet.

I worked and got a few more done.  I was still working the other job, which by now I really wanted to say bye-bye to.  Five months into the lead gen business I resigned the corporate job. Five months. And I was paying all my bills and had money left over to invest in my business.  I never looked back.

After 4.5 years and just under 30, I now have a high 7-figure income from my lead gen business. I average 80-90% return on investment, consistently. It is portable. I only work part of the week. I travel now. I have a life. And it is awesome.

Great property in California really is possible

I can afford the place I want now. It happens to be in California, and it is expensive. And I do not have to worry any more about eating and making the rent. I make way more than all of it combined, and now I can really look at California investment real estate, seriously, without having to finance massive chunks of money. Man that feels good.

It is so nice to be crossing things off the bucket list before my 30^thbirthday. Now I can plan some really nice, big, adventures.

How about you? Are you tired of the grind? Tired of all your money going for a huge rent check and insurance and not knowing how to meet the rest of the bills? How about investing in yourself for once and your future like I did?

Yes, it is some work, especially at first.

No, it is not free, but is was way cheaper than nearly anything else I got into.

Yes, you can work your job, go to school, take care of the kids while you get it up and running. It is so worth it to be your own boss, in control of your own destiny and finances. And you might just be able to afford to invest in California. I did.

Click here to find out how: https://www.bestrealestatedirectory.com/lead-gen/

There is no obligation, it will not cost you a cent to ask questions. No one will pressure you. What have you got to loose?

South of the Border Real Estate Investing is Hot! Hot! Hot! Or Not?!

Poncho Via. Visions of donkeys laden with produce, headed for the local market. A man in a sombrero playing his guitar at dinner.  A women in colorful native clothes with a baby on her hip pounding wash on a rock in the river.

Well, folks, that ain’t Mexico 2019. That is what we were taught in old history books, in stereotyped movies, and in our romantic imagination.

The modern Mexico awaits

Mexico is healthy, youthful world economy that has been growing by leaps and bounds, especially the last 20 years. A lot is broadcast about drug cartels and death in Mexico, and there are some issues, in small areas, and almost exclusive to drug gangs. Tourist areas and big cities have some violent crime – but hey, so do we.

39 million tourists came to Mexico in 2017 and the number keeps growing. Lots of somebodies are happily heading to Mexico.

Mexico’s is a major world economy and pretty healthy

Mexico is a major world economy, and it does not depend on us to be one. While the US is currently Mexico’s #1 trade partner, Mexico is the 2^nd largest location for US exports and the 3rd biggest trade partner.  It has trade agreements with 46 countries, a low national debt, has invested wisely, and is one of the only trillion dollar-plus economies in the world. A lot of work has been put into infrastructure, education, manufacturing, and foreign cooperative ventures. And Mexico is sitting on large oil, gas, mineral, and ore deposits. Their economy is healthy, and they intend to keep it that way.

Mexico can be a good place to retire on a budget

In many years past there used to be an ebb and flow of foreign nationals that moved in and out of Mexico every time there was a peso crisis. Not any more. Mexico has people moving in – to retire, to get a chance to work and improve their situation, to just go somewhere cheaper to live, including 1.5 million Americans (here-to-after referred to as expats). A lot cheaper, as in nearly 53% lower cost of living. Rent is 75% less in most areas (not the Mexican Riviera).  And Mexico is respected and holds sway in many countries around the world. They have a thriving health and science core, grow a lot of the produce and cattle that feed parts of the world, and are respected for their strong macroeconomic outlook.

Mexico ought to be a really strong contender for real estate investment, then, right?

Mexico is being lauded as the mecca for millenials’ bodies and money

Millennials are a big economic factor now, even in Mexico, because they now outnumber Baby Boomers. It is interesting that even for all the conversation about them being broke and unable to live anywhere but Mom and Dad’s basement, Millennials applied for 47% of the jumbo/high ticket/luxury mortgages last year. Millennials are looking at vacation homes and luxury condos in Mexico, as well as the Mexico version of what we call an REIT – Real Estate Investment Trust, known as Fideicomiso de Inversión en Bienes Raíces, or FIBRAs there.

They are known for modern design desires and that many have champagne tastes in properties, as they see it as an investment that got their parents well situated financially.  Some are arguing that Mexico real estate is a safer bet than the stock and bonds market for millennials, as it is a long term strategy without a huge investment and the unease or panicked stress response to its roller coaster nature.

Is Mexico a good place to invest in real estate?

What the investment houses are not discussing, is direct purchase must be weighed against a return based on what you could have saved and earned since childhood. For milennials, those savings ran about .025-.01 %. Americans are at the lowest rate of savings held in history, and it is pretty unlikely Mommy and Daddy put money away for them to go to college, let alone to move to Mexico. If that is what they are making comparisons to, there are some really slim, poor, profit margins in those numbers. I will not even settle on a lead gen site until it is making me over 80% ROI.

The investment firms want you to invest in FIBRA portfolios, a diversified fund of residential, condo rentals, commercial property, shopping centers, health care facilities. Wait a minute. Weren’t we just told the stock and bond market is unsettled and the reason to buy real estate is to lessen the stress? Isn’t portfolio a magic phrase for a stock or bond share?

One of the big challenges for millenials is a place to call their own, so to speak, in terms of career opportunities. There is a loud cry of “foul!” among them that boomers are staying longer in jobs due to the economic down turn, and opportunities for advancement just are not there. Couple that with high costs associated with education, home purchasing, and not everybody recovered from the recession, and they feel there is not a huge amount of blue sky in front of them.  A lot of millennials are seeing places like Mexico, with strong economies and progressive business policy, as a place they might have an opportunity to launch a successful career a lot faster. And Mexico is easy to move to and live, especially if you are bringing in skills that they need to continue their growth.

What if I told you there is an opportunity right here and you don’t have to move, you can be your own boss, and you can work as hard as you want and not for “the man” any more? With tons of opportunity? Check out this link, no cost, no obligation, of how I did it at 25 https://www.bestrealestatedirectory.com/lead-gen/

There is a lot being written all over the net about the ten best and worst and just about anything else you want to guess on real estate right now, especially dealing with retirement.  Millennials are not so ready to retire as invest in their future, and Mexico has some things going for it, including the strong U.S. dollar (dependent on oil prices and who we have a conflict with), easy access (well, maybe, that is to be seen), property values that will not depreciate (among the fastest growing economies in the world – which means that demand is far outstripping supply…which means overvaluation and inflation), and several other common threads I want to address briefly.

There is only one really big hairy problem…

A lot of the real estate investment groups will tell you to buy on the Mexican Riviera, the 80 miles along the Caribbean coast, and if you do, your return will be 8-14% profits.  There is a slight problem with that thought. There is this little glitch called a restricted zone.

What the heck is a restricted zone for Americans and Mexico real estate?

According to the Mexican constitution, the restricted zone is any and all land within 100 km of any of the country’s borders, and within 50 km of any ocean. It further says that no foreigner is allowed to purchase land within the restricted zone and get a title.

And that has been the law for decades. It actually was eased in 1973, because before that, you could not own, period. In other words, you want a place in the Mexican Riviera, you have to be a born Mexican citizen. Or use another option, if you are comfortable with it. It is called a “fideicomiso” or bank trust agreement.

All is not lost, though, as you can sort of “own” property within the restricted zones, but you cannot hold the title. It is held by the bank trust, and you act as a trustee.  And they usually do it for foreign investment companies. It is safe, legal, and common.

The bank has to do what you want, and you can transfer, sell, rent, as you please.  You can also list an heir or multiple beneficiaries. It is a method for bypassing inheritance taxes and probate – there at least. The problem is that the Mexican government frowns on you holding retirement property that you live in and run through an investment company.  Kind of protection for the money trail.

You can still own property and hold the title in the interior of Mexico. Be prepared to have the same responsibilities as a Mexican citizen, including taxes and annual fees, as well as a few challenges with local officials, haulers, and law enforcement who require “handling fees”.

Mexican Real Estate law is complete and detailed. It is designed to help both the buyer and seller be protected. It is, however, very specialized and different than in the U.S. or elsewhere. You simply cannot tackle it yourself, or even with a U.S. real estate attorney. Buying property in Mexico, especially beachfront or restricted property, has to be handled through professionals in Mexico that know every “t” that has to be crossed and “I” dotted so there are not problems or issues in the future. This is especially true if you are dealing in a restricted zone, which is where most Americans far prefer to live due to the available resources, shopping, climate, and infrastructure. And that is also where property has escalated the most in the past 15 years in Mexico.

Life in Mexico 101

Let’s touch on some of the realities of being in Mexico. Many people speak English there, some fluently. It is most common in the restricted zones, which area also the tourist and business centers for the most part. And it is understandable, since Mexico is the #1 U.S. foreign destination for vacations.  1.6 million Canadians also visit each year.  English may not be available readily in the interior, or many parts of Baja, however. And if you plan to build a home, well, speaking fluent Mexican Spanish is a must. You have to be able to understand what is going on no matter now much faith and trust you put in the contractor or architectural firm

There is the little problem called hurricanes along the Mexican Riviera, and more recently, central coastal Mexico, including the Pacific side. Mexican property insurance doe not work exactly the same as stateside, and especially for foreign, non-resident owners. It is expected if you can afford to buy a place in Mexico, you can afford to fix it.

Infrastructure is a big issue you need to look into thoroughly when thinking about buying a piece of real estate in Mexico. You might think it would be fun to “camp out” some, but try it in retirement and you will find it tends to not be nearly as enjoyable. And if you are looking at is as a rental or for investment value, there is not a lot of hope for most areas to improve quickly enough under their new president to make a difference.

One thing about Mexico, unlike the U.S., is that it is easy to get residency, or a six month visa for problem free stays. Mexico is encouraging people who want to come there and bring something to the table. You have to be able to guarantee your income, and can use your 401(k) in most cases to help substantiate that. Oh, you wonder if millenials have a 401(k)?

Let’s hope so.

Can I finance property or a house in Mexico?

It is true that from a cost of living standpoint, Mexico is a better value. Real estate transactions in Mexico have been traditionally handled in cash. Doing some fuzzy math, with the current exchange rate and figuring a 1,500 sq foot apartment in a moderate location, you are looking at right at $147,000 USD average price.  Taking that much cash in, or out, of a country creates questions and a great deal of planning. It might also raise some eyebrows and questions, since you are taking money into Mexico.

Some Mexican banks are now beginning to lend money to foreigners for real estate purchases, but it usually requires a large deposit on hold to secure the loan, and considerable background information. And some U.S. banks are tentatively adding in Mexican property loans, but they will take a hard look at you. You better have solid evidence of the use of the money, the market, and who is handling the purchase. And you better have a lot of collateral to back it or money in their bank. Foreign banks are not keen on holding titles in a foreign country on a real estate loan.

The wild card is how political stability and relations will affect that.

The changing of the guard has not been good for Mexico real estate

The political wild card is very important in any decision for investing in Mexico real estate.  Ever since the current administration took office, commercial investors have laid low, especially after NAFTA was threatened. Now it is the anti-business policies of the new Mexican President. First he cancelled the new Mexico City airport, something economists said was essential to continue to fuel the fast growing Mexican economy, and then an extensive country wide public works program. Mexico’s investment crowd is sitting pretty quiet and a bit stunned. While supply and demand is keeping rentals fairly full and rental prices up, there are growing concerns as the cost of borrowing money to finance real estate has gone up considerably, slowing the market.

There is no end in sight for the beating business is taking down there, either.

Another challenge to the investment game is after 2008, Mexico quietly put a number of economic regulators in place, allowing internal investing of pension funds into real estate in-country. I think it made them nervous that more than $10 billion was sitting in a REIT run by Prudential. And we all know the history of mismanagement at Prudential when it comes to investments from their life insurance debacles.  The uncertainty was enough that just in the first three quarters of 2018, investment in Mexico real estate funds was down 40%.  And those bank-trust-investment groups you have to put your restricted property titles into? The ones that invest in property? Some have devalued by 41% in the last two years. That does not sound like a good investment to me

Honestly, I can not figure out why somebody would want to gamble with their hard earned money like this.  The fact that the in-country investment houses are not investing, and are holding back and have for two years, tells me a lot. I can get a whole lot of bang for my buck reinvesting my profits from my lead gen business back into my business in two years. Since I average 80-90% profit margins, that give me a whole lot of capital to plug back into making me more money.

Sure, property in Mexico can be cheaper than in the U.S. or Europe. Taxes tend to be somewhat lower, and maintenance and upkeep cheaper since labor is cheaper. There are challenges though. Materials can be frustrating to come by. Local amenities may or may not be present. There are some areas where safety is an issue, same as in the U.S.  But one big thing is you have to know the area and if the infrastructure is present. Mexico is a very large country, something we forget up above, over two million square miles. That vastness and centuries of poor people and a poorer economy means Mexico does not have the transportation, utility, available materials, retail, or other structures in many areas to support you or your rental property.

I am SMH at why people would want to go through this. Yes, go down and live there and enjoy the beach. But tie up a bunch of investment money in a country known for long bureaucratic red tape, where pay-offs are nearly mandatory, and you have to find reliable, trustworthy attorneys, bankers, and local officials to get things done. Let’s just hope theirs have a better reputation than a lot of ours do.

It is really interesting that the investment companies are trying to push the millennial avenue. Most the millenials I know, except those around my business hang out crowd, gripe every time I see them about not being able to make ends meet with their college degree and two jobs. I was one of those a while back. Not anymore since I started my lead gen business 4.5 years ago after hearing about Dan’s coaching program.

And modern luxury condos on the beach?  The only millenials I know that can afford something like that are the ones I hang out with! Period. And it is because we all are making our own money in our own legitimate businesses helping businesses get more customers. And we are making good money. I will push 7 figures this year. Not bad for a not quite 30 year old who was making $35K a year working stupid hours four years ago while trying to run an at-home MLM and re-shipper business at the same time.

I regularly make 80-90% off my lead gen business. Let me explain some. I knew nearly as soon as I graduated from college and took a corporate job that I would never have anything but rent receipts if I did not get my own hustle going. So I started to research, trying to locate a good side business that fit into a 40-60 hr/wk schedule that I was already working (computers). I tried lots of things, and made some decent money, but not enough to really doanything. I wanted enough to buy a condo, or at least take a decent vacay without hitting my credit cards stupid.  I was getting really frustrated, burnt out, and exhausted, besides being really discouraged.  I knew I did not want to live like this.

One night I happened to run across a guy talking about the future of business on the internet. Well, I was already there, that was my job, and that was my second and third job. He started talking about how many small businesses had no clue and how much help they needed finding customers. I was intrigued. The guy gave a link to set up a meeting call about a training program for the lead gen coaching program he built.

I have to admit, I was pretty jaded by then. But there was no cost, the guy, whose name was Dan, came off as a pretty square shooter and he was working what he preached. That impressed me. It cost nothing but a little time, so I said “what the heck” and signed up for the call. When the call happened, I got all my questions answered, and I asked some tough ones.

All my questions were answered. No one tried to blow smoke up my skirt. They did not own a piece of me afterward I paid tuition, no commission, no nothing. Just lots of help and a free resources for help.  I did some digging around and found out that everything this Dan guy said checked out.  I signed up, paid my tuition, studied my butt off.  And I never looked back.

In five months I burned the J-O-B.  You read that right. Five.

I built my first lead gen site while going through the training:

 

 

Within the first week I had rented out the leads from the site. I still own the site, same company gets leads and pays me, for 4.5 years. I get $750 a month, direct deposit, rarely touch it. Once I take out a little for monthly expenses, and I have cleared over $36,450 profit on this site for about six hours of initial work. That is way better than not knowing if I even have a good title to a property in Mexico.

I continued to build sites out, and now, not quite 30, I am getting to what a lot of people would call really comfortable. I name my own hours. I travel when I want to. There are millions of businesses out there that need our help. I can only keep up with a handful of them, so there is plenty of opportunity to go around.

Yes, it is work, especially at first. Yes, you have to invest a little bit, but only a little bit, for the potential return. How much return are you getting from your 9-5? A watch in 25 years?   I do not have to worry about layoffs or my job being outsourced. And best of all, I do not have to drive through winter weather any more to fight traffic to get to the office. I get up, take a swim, and wander out to the deck with coffee and my laptop. Such a tough way to have to run a business.

Are you tired of the rat race? Would you like an honest, proven, solid track record business of your own that does not require a six digit franchise fee? Would you like your hard earned money to go towards something you can leave a legacy behind for your family? Help out special concerns? If you do, stop the noise in your head for a short call to explain what and who we are.  Click this link https://www.bestrealestatedirectory.com/lead-gen/ and sign up for a phone appointment.

There is no charge. We will not hustle you. You are free to hang up or say it is not for you at any point. And you will never, ever, hear from us again if you decide to do that.

When I think of Mexico real estate, I think of a nice cold beverage, the setting sun, and what club we are all going to go hit later, after a nice restaurant meal. Or maybe we will just stay here and have a heck of a fiesta in this gorgeous condo we rented for the week. Tomorrow is going to be tough day, we have to go windsurfing.

Tough to be your own boss sometimes.

 

Like everything, real estate investing in Texas is big.

I just recently got home from a whirlwind multi-state trip for my lead gen business, which included a stop in Dallas. Wow! Major city sprawled out for miles and miles. Not only is Texas big – 801 miles north-to-south and 773 east-to-west miles, but the cities are massive. Massive cities mean mucho people, and mucho people mean many homes, businesses, and properties that someone has to own.

There are real estate opportunities in Texas

Texas has, since the recession started to reverse in 2010, been seen as a relatively safe and healthy real estate market to invest in. The state, up 3.5 million people in that 9 year stretch, has seen more growth than either Florida or California by nearly a million people. Those folks have to live somewhere, and Texas real estate investment firms would like you to believe it is in needed 1.5 million new houses. Housing, after all, has been relatively cheap compared to places like Seattle where the average house is over half a million, or San Francisco’s median 7 digits.

There is something for everyone in Texas

There is a lot to be said for the diversity and spread out nature of Texas. Whether you want German food and bluebells in Fredericksburg, a cutting edge music, arts, and clubbing scene in Austin, or the most diverse school district in the nation in Houston, Texas has something for everyone. Industry, fishing, hunting, coasts, canyons, sagebrush, and the holy grail – Friday Night Football. And food! It does not matter if you want barbeque, seafood, the biggest juicy steak you have ever seen, Tex-Mex or kolaches, you can get them in some part of Texas.

Don’t like what you see or have to do? Start driving. It might take you a while, though, to get there.

North Texas mixes desert and plains, as well as rivers and small towns. East Texas is full of agriculture, backwaters, and refineries. Central Texas ranges from hill country to flatlands with cattle, big towns, and more cattle. Coastal Texas has long barrier islands and fantastic seafood. And if you like wide open spaces for as far as you can drive, just head west out of Dallas.

West Texas has more abandoned towns than Nevada does ghost towns from the gold rush. The reasons are economics, and resources. No jobs, little water. But if solitude is what you want, you can buy your own small town for next to nothing in many parts of West Texas. Just make sure you have a way to support yourself. By mail. 3 days a week. ‘Cause that is as often as the postman gets out there.

Texas has something for everyone and every part of the state is as different as if you went to another planet. Texas is, after all, larger than a lot of countries. They have even tried to become their own country. More than once.

Texas national pride. There is a reason they say “Don’t mess with Texas!”

They mean it.

Texans are not only proud of Texas, but look after their own

One thing about Texas unlike some places, Texans pull together. For all the stories you hear about tough State Troopers (true) there is one thing – Texans are Texans when it comes to natural or other disasters. There is not a state that didn’t learn a thing or two about humanity, inclusion, and caring for your neighbor like Texans did during Hurricane Harvey. Heck, Texas even reached out and took in tons of folks during Katrina, and they do not even like Louisiana. Just the way they are.

So where is the hottest real estate in Texas?

Texas is so big and spread out, how do you know what is a good investment in Austin, or where to look in Dallas or Houston? Are neighborhoods important? And where are the arroyos (river washes), an important consideration during storms for flooding issues. Texas is the only place I have every driven where there are flood depth markers under nearly every overpass, and most show over 10’….wow.

It is really nice that in my virtual real estate business, lead generation sites, I do not have to worry about flooding, the neighborhood, or the local economy much. I own the sites and it is all on the internet, so I can help anyone in any neighborhood make more money for their business. I do it from the luxury of my comfortable office chair in my own home. I make a really strong rate of return with solid customers, too. Check out this no cost, no obligation link to learn what I am into:  https://www.bestrealestatedirectory.com/lead-gen/

Is using a real estate investment club or firm a good option in Texas?

Back to Texas property, one option is a real estate investment club, where people pool their resources. Not being there can be a hindrance, though, since you do not know anyone, and Texans can be a little leery of outsiders. A lot of people turn to the advice of a real estate investment firm due to that.

Ask a Texas real estate investment firm, and they will tell you everything is hot. According to Dale King, realtynewsreport.com, in an October 22, 2018 article Commercial real estate markets prosper; Texas metros follow suit, says Avison Young Investment report, particular attention should be paid to Austin and Houston multi-family housing, and very large commercial properties. What he does not mention is who is paying for the property.

According Steve Brown, Real Estate editor for the Dallas News said in a June, 2017 article Hello, good buy: Texas’ commercial property a key target for foreign investors, 20% of the investment money for commercial properties, be it residential multi-family, warehousing, manufacturing, or whatever, came from China, Mexico, the United Kingdom, and Venezuela. China alone accounted for 17% of the closings in Texas. Texas only trailed Florida in how much foreign money flowed, snapping up real estate.

What is driving the Texas economy

Texas is a big oil and agricultural state, among many other things. Cattle are king in Texas and oil flows instead of blood in many Texans’ veins.

What a lot of people do not know is the oil market in Texas is primarily from shale extraction. Shale extraction is expensive, with a lower yield and higher sulfur content, which requires more refining. More refining means more pollution and toxic chemicals. Just ask the folks in Beaumont what happened during Hurricane Harvey – hhhmm, wonder if that has anything to do with their housing values going down?

The more demand for oil, and there is always an increase when the economy is growing, the more jobs Texas can gain. Wars are especially profitable for Texas as resources have to come from home instead of depending on foreign sources. Storms, especially those not hitting Texas Gulf platforms, also drive oil prices up.

Oil is also traded on the world market and is joined at the hip to world politics. Let there be a barf in Saudi Arabia or Korea or Russia or China and prices bounce all over the place. That said, Texas’s economy can fluctuate dramatically on the turn of a dime. I prefer to have a business like mine that is not blown around by political winds and is a lot more stable. Every business needs more customers, and that is what my lead gen business provides them – more qualified customers.

What they are not telling you is that many of those folks moving to Texas are coming to escape winter, economic hardships in manufacturing, and early retirement as baby boomers. Texas’s population is changing and becoming more diverse. A lot of Texans do not consider that a good thing. Texans are proud of who they are and like to keep it that-a-way.

Is the Texas real estate market hitting over priced range?

According to Inzo Winzer, president of North Carolina based Local Market Monitor and pundit of all things related to forecasting real estate investments, Texas can still be a good investment in a few areas. In the Feb. 8, 2019 Forbes.com article Investing in Texas real estate? Here are a few things you should know, Winzer breaks down what is going on in Texas by job rates, house valuation change, and income to house price rations.

Texas claims its good realty market is due to a growing economy and booming jobs market, since job growth has been around 4%, nearly twice the national average over the past year. Problem is, the wages and the job count do not coincide well.

While Dallas (+8%), Houston (7%), and Austin (7%) are all up in home values in the last year, you have to dig a little deeper to get the real feel for home prices versus the economic conditions of the area. When you look at home price versus income last year, Dallas is at -24%, Houston at -23%, and Austin at -31%. In other words, people lost that amount of buying power versus how much they make towards a home. Anything over 20% is considered an over priced market. The more over 30%, the higher chance of a crash in local real estate values.

Translation: people moving/living/transitioning there from elsewhere or within Texas can not afford a home on their salaries. I say within Texas (perhaps displaced by Hurricane Harvey) as a million of the 3.5 million population change apparently was from within Texas. Apparently if you come from another area of Texas, you are coming from a foreign country, or state, or something. But, like all things Texas, big. Just give or take a million. Or two.

Where, if any, are safe property purchase bets in Texas?

Winzer suggests that if you want safety in Texas, buy moderate residential properties near a major hospital complex. With some of the highest out-of-pockets in the nation, I am not convinced those would be good long-term investments. The paradox is to make money in the slow and low growth areas, like those hit along the coast, you have to buy higher end properties. Not sure I would want to pay for flood insurance in Beaumont or Brownsville about now, either, if it is even available since FEMA rewrote the flood zone maps after Harvey.

Of course, Texas being big has big college towns, like Waco, Lubbock, and College Station. Rental properties in college towns, as long as you rent to staff and faculty and not students, usually are pretty safe investments. But even these three towns had drops, up to 9%, in home values last year, and a mixed review of income ratio to home pricing. All had job increases. So where are they living if they are not buying? Rentals.

The rent situation is not a lot better, as rent in all three towns plus Ft. Worth averages over $1K a month. The major towns in Texas are growing and doing ok, but when you look at the Local Market Monitor for Texas’s top 15 metropolitan areas, there are a lot of areas that it is pretty obvious are not doing so well. Some, like Brownsville, Corpus Christi, and Beaumont, got hit super hard with Harvey and are still (and will be for a very long time) in recovery mode. While Beaumont and Brownsville both show valuations up, remember that most of that is due to lack of available housing that survived the storm.

Other areas like El Paso, while home values are slightly up, still have serious disparity with regard to wages versus home prices. You can tell a lot about the local area by how cheap rent is. Nearly all areas damaged by hurricanes are down in jobs. If they are in a building boom, that seems a bit strange. Even San Antonio, the state capital, is up on home prices, but down on employment and wages.

Currently the one exception where you can make a good real estate investment that is not a college town is Ft. Worth. Ft. Worth average rent is over $1,000/mo and had both an increase in home values and average income to home price last year. Demand is still good, since it is commutable to Dallas. So, investing in Ft. Worth can still provide a comfortable income. Kind of.

What kind of ROI are you looking for?

Since I make an 80-90% return on investment in my lead gen business, I was curious what the return would be on a Ft. Worth piece of rental property. Ft. Worth has an average home price of $255,000 for last year. Average rent is $1,032/mo.

Let’s do a little math.

That is a .4% gross return on your investment.

You take out taxes, maintenance, vacancy, you will be at probably 30% less than that. But, just for sake of comparison, let’s use the .4%. At those average numbers, it will take 247 months, or 20.6 years, for you to get your money back. That is not counting repairs, taxes, large expenses like appliances, roof replacement, or months you go without a renter. And heaven forbid you get a bad renter who tears the place up.

I did not even mention the 2 a.m. calls when the toilet leaks, or the threats from weather (Texas also has tornados that wreak havoc), or a gazillion other things that cause ulcers when you own rental property. It is so much easier and relaxed to just pull up my bank account online and see all the automatic deposits from my lead gen customers, every month, just like clockwork.

I average 80-90% ROI on my lead gen business. Seriously.

Let me show you what I am talking about with some facts.  Below is the first site I ever put up:

It took me six hours to build it and rented it within the first month for $750/month. It has been rented ever since. I do not have to touch it. My customers are thrilled with the results. Their payment automatically shows up the first of every month.

After expenses, I have made net profit of $32,400 on this site over the last 4 years. That is a killer return for 6 hours of work and a very little bit of expense every month.

Now that is Texas big and that is no bull.

Why are you telling me this Ippei? Do you want competition?

Honestly, I am not the least worried about competition. 2.4 million small businesses in the U.S. need more customers. There is plenty of room for good, hard working, honest business people to help them grow. Lots of room.

See, I got involved in lead gen after trying nearly every MLM, internet marketing, drop shipping, you name it business there was to make some extra money online. I had graduated with a degree and gone straight into the $35K/yr J-O-B, which I quickly came to loathe. I knew I was never going to be happy unless I worked for myself. So I started to look. I made some money. I was working stupid hours at my job and my other businesses, and still had no life. Then I read about Dan and his coaching program for building and owning lead gen sites.

After some research I thought Dan looked pretty straight up, a straight shooter, from the hip as the Texans would say. He was working his business every day, not just selling a bunch of fluff like so many others. So I signed up for a call to learn more. After talking I decided to sign up, pay my tuition, and get to work.

Yes, lead gen is work. Any business is. But it is way less hours and stress than I spent in any other business or at my old J-O-B. Oh, by the way, I killed the job in 5 months and never looked back. I am 29 and in 4 years I have a very comfortable 6-figure income, and I travel and have other ventures. And I work part-time now doing it.

I kind of like my 80-90% profit margin. I also like working for myself and not worrying about the company being sold and outsourced overseas. Or the oil industry dying, yet again, and again, and again.

If you are looking for a business you are in control of, that does not control you, provides a solid passive income, and is not tied to the world oil market, check out this link: https://www.bestrealestatedirectory.com/lead-gen/

You will not regret grabbing the bull by the horns, and that is no bull.

 

Florida Real Estate: Investing is Not Just for Snowbirds Anymore!

I am not old enough to remember the Florida Orange Growers Association ads with Anita Bryant telling people “Orange Juice! Not just for breakfast anymore!”. But there are a lot of people who wax nostalgic when they think of their parent’s station wagon loaded with vacation gear, headed down Hwy. 27 through the lush Florida Lake Wales ridge orange groves. The sand of the pristine blue Gulf was so close you could taste the salt. You could even stand your little sister’s pestering “Are we there yet?” as you watched first wide, Spanish moss covered oaks, then groves, then finally palm trees out the windows.

“Ahhh, Florida.” And now you finally get to be there 365.

Florida is growing up fast – really fast

According to the January, 2019 AARP The Magazine, baby boomers, now age 65 and being those born 1946 and 1964 are retiring at the rate of 10,000 per day. The boomers grew up in a time post world war showered in a land full of prosperity and abundance. The free love and hippy generations of the ‘60’s gleefully turned to prosperity, materialism, comfort, and self-indulgence, fueled and approved by parents who wanted it easier for their kids than they had it.

And easier is a key word for many boomers. That includes dealing with winter, not the thing most of them want to do.

They are headed to Florida en masse. Rust belt states are loosing population, and Florida has become the 5^th fastest growing state in population according to the January 3, 2018 Des Moines Register. Many boomers soon to retirement already own property in Florida while working their last couple years in the Rust and Snow Belt.

You have to put that in perspective, though, since the “official” population stands at 21.7 million, and does not count the millions of snow birds (winter residents) nor the dual property holding boomers, still licensed in their home states while finishing up their careers. That brings the state to a functional population of around 27 million, with an overall increase in state population of 11.7% since 2010. Some areas have seen in excess of 40% per year in the hottest properties in suburbs of Naples and elsewhere.

Interest is down, home values are going up – jump on Florida?

Boomers are planning ahead, too, trying to beat the real estate value increases in Florida while mortgage rates are still low. And because of that, residential property in Florida is booming. Trying to guess the emerging markets is the challenge, though.

Florida’s mortgage and real estate industries took a huge hit, 3^rd in the nation on foreclosures, during the recession post 2007’s peak. Part of the problem was a market grossly bloated by horrifically overpriced real estate that tanked far worse than most places in the nation, often loosing as much as 80%.

Much of that gross overpricing was due to market demand by the first wave of boomers heading down to retire.

But the hit did not last long. Florida’s building never really slowed down, at least around Orlando, Naples, most the Treasure and Sun coasts, and points in between. The builders were looking into their crystal ball, which showed more people retiring soon and wanting to shed their parkas for flip flops. The educated gamble worked, and their building binge has only increased, rental prices have increased, and so has traffic. After all, the boomers escaping snow had to go somewhere. Why not Florida?

So where is the best place to buy a house?

What does all that mean for investment property in Florida?

It means many of the flip houses that flopped during the recession – massive numbers of foreclosed houses were in every part of Florida – are gone and have been gone. Property has gone up, 7.9% last year, and a prediction of 4.9% by Zillow for 2019. Zillow only admits to a 20% drop in Florida values from the peak in 2007, but some areas like the Gold Coast and Daytona area saw up to 70% decreases. Those areas are up 25% or more in just the past 3 years and had already recovered some in the five years previous.

Orlando, according to Forbes Feb. 2018, “Best Buy Cities: Where to Invest in Housing in 2018” states Orlando was up 35% over 3 years, and considered Orlando the #1 hot spot. Why? Orlando is still 22% below national housing median costs. That is one reason the boomers are flocking. Orlando has a 3 yr population increase of 7.6% alone. Jacksonville stands at 5.9% in that same time, Last year Orlando averaged 9% increase in property values on homes. It is predicted to gain 21% by 2021.

Orlando has a few of serious issues, too – sprawl, resources, and infrastructure needs. So do Miami-Ft. Lauderdale-West Palm (South Florida), Jacksonville, and Tampa. Traffic is atrocious, air quality has become an issue, and crime has increased. Those issues face nearly all of Florida, were water, in particular, and infrastructure, such as roadways, police and fire protection, and local resources especially for seniors are often seriously lacking.

A right to work state, Florida has limited state and local resources. Water, sewage, brush and forest fire protection, are all very big issues. Forbes is also quick to say fast growth markets tend to be overpriced markets very, very quickly, making investment risky at best. Medium priced slower markets tend to have lower risk, reasonable returns and way less stress.

Boomers may find some future needs have challenges getting met

Programs for the elderly are lacking, health care needs such as primary providers are popping at the seams, and finding home health care is a big challenge and extremely expensive. And you might not find Florida the retirement bargain you once thought of, as cost of living has greatly increased. Long term average rental rates have outpaced Minneapolis-St. Paul.

So why isn’t this a paradise for investment?

Residential investment property has largely dried up

What Forbes is talking about is a working couple relocating and owning a home, not investment property. Most of the cheap houses, especially those coming out of foreclosure you can make good money on have evaporated, and inventory is very short even on fixer uppers and “as is” property. You have to be able to locate a decent property in a good school district (resale always has to be a consideration for down-sizing later) that you can afford, and afford to fix up.

And speaking of fixer uppers, you better be able to and have the time to do the work yourself. Trades are all short handed in Florida. It may take you quite a while to get everything done that needs done on a property, and Florida real estate tends to be somewhat seasonal. Miss the snow birds and you wait until next season. Rental property also is subject to a higher transient rate than nearly anywhere else in the nation.

Should I be looking for vacation rental property in Florida?

So if I were hunting good investment real estate, would I hunt residential in Florida? Or a vacation property like a condo? There are many horror stories about buying a condo to rent out in Florida, many of them revolving around Spring Break and the notorious damage done by students. (In contrast, Bike Week in Daytona has few issues other than traffic and people hitting motorcyclists.) Even Airbnb has people qualify their ages and what events they are coming for.

I mean, after all, Florida is about this, right?

Waterfront property is still a relative bargain

Florida might, however, be the one place you can afford to buy oceanfront property, as Florida is the lowest cost per foot average of waterfront property in the nation. It will still run you double what a standard house will, though. The next challenge is the availability of insurance coverage. Many areas find premiums the highest in the nation.

Why? Two reasons – hurricanes and sea level rise.

Florida has experienced three major storms in three years. They had 5 in 2004 which put many insurance companies out of business, leaving property owners hanging. According to the National Hurricane Center in Miami, hurricane strength and damage potential has increased and will keep increasing, due to global weather and ocean current changes, and warming oceans.

One of the best things to come out of 1992’s Hurricane Andrew was a vast improvement in building code. The Miami-Dade Hurricane Code has become required for most new home and commercial construction in all parts of Florida. The painful lessons learned from decades of shoddy workmanship and shaky inspections coupled with developer leeway via old boy politics came to an end with the most expensive storm the US had seen until Katrina, Harvey and Irma years later. Did I say there have been 3 devastating storms in three years? Two of which have been the two costliest storms in U.S. history?

What that means is you can buy a building or house with some assurance it will survive a major storm intact. That was not always possible in Florida. You might, however, want to build it on stilts.

What is going on with sea level rise?

Sea level rise, regardless of your opinion, is a real fact. The State of Florida has been quietly preparing for major socio-economic impacts within the next decade due to sea level rise. Miami, Ft. Lauderdale, St. Augustine, all the way to Brunswick, GA take sea water breeching the seawalls or backing up through city sewer and storm water systems every binaural, spring, or king tide day now. That translates to several days a month, and have been for a couple years.

There are communities in Florida like Edgewater below Daytona that are facing the entire town being flooded by 2030 with 11-30 inches of water per the State Consortium on Sea Level. Discussions have not even touched on all the areas off canals built from trenched marl, or blackwater swamp areas in Big Bend, salt marsh below Ft. Myers, or areas along the Intracoastal Waterway. Tallahassee has been real quiet as it is bad for business if they state the facts. They have been working on it for 8 years.

What does that tell you?

What about storm damage and insurance?

One of the biggest issues on oceanfront property is beach erosion. Often the beach is not the only thing to get destroyed, as storm damage, even high tides, can take out roads, utilities, and in some cases, wash out your septic system. Those are all reasons that insurance companies do not like to write oceanfront property and charge you accordingly.

The Miami Herald, Nov. 27, 2018 in “The Invading Sea: New Florida Governor Must Tackle Sea Level Rise and Climate Change” noted that not only was Florida having issues due to water and weather, but Florida had to also face flooding, increased fire issues, ground water contamination, rapid decrease in natural areas and species, fresh water springs in serious jeopardy, sewers, chemical dumps, the huge, and dying Indian River Lagoon, and even military ordinance issues within the state. Even those endorsing incoming governor Ron deSantis, such as South Florida’s Ron Bergeron, who headed the Florida Fish and Wildlife Conservation Commission for many years, wryly joke about the name given the study and used by the State – “Paradise in Trouble”.

On the good side, property taxes in general are slightly below national average, and Florida has no personal income tax. The state also does not have estate taxes nor intangible taxes. Homestead exemptions are liberal once you actually reside in state.

All that adds up to comforting reasons for baby boomers to be flocking to warm Florida winters and no snow to shovel.

What that means for an investor is you have to look and try and guess where they are next headed to.

You can buy “as is” property and do the refurb and hope for a modest profit after all that work. It is extra challenging since boomers are the key buyers, and boomers generally do not want a house or building that has maintenance if they can avoid it. They are buying new homes in developments with HOA’s and a golf course.

So what is the best kind of real estate to invest in?

Retiring means turning in the key, not having to hunt turn-key. It is supposed to be a lot easier, right?

How about digital real estate? That is what a lead gen property is, and most people run their business at home with a laptop and an easy chair. You get to name your own schedule, work as much or little as you want, at what times you want pretty much. A lead gen business is a perfect match for retirees not yet quite ready to retire. If you want something to make some decent $$$ and still get in a round of golf, check out this link https://www.bestrealestatedirectory.com/lead-gen/ about the fastest growing business on the internet in 2018 according to businessreivew.org.

When I am investing money, I do not want to have to wonder, dig, research for weeks, probably visit, and then second guess Mother Nature about my money being tied up in a property. I want a safer, surer investment. I would rather have my view be this

 

 

 

 

Or this…

 

 

and let someone else deal with the hurricanes and beach erosion.

I would rather be putting my extra money into my lead gen business where I know it is safe from predators, no matter how many legs they have.

 

Business and commercial investment property in Florida – what about that?

A lot of the baby boomers suffered significant losses to their 401(k)s during the down swing, and many of them are hunting for second income streams to offset those loses. There are a lot of businesses up for sale right now in Florida.

There are lots of companies out there ready to take your hard earned cash for a business.

Just make sure they do not take you.

Florida, sadly. has a long history of people taking people, be it property in a swamp or unscrupulous unlicensed contractors post storms or preying on the elderly. Due diligence and much caution are advised.

Any number of biz-you name its have sprung up trying to “assist” boomers in buying a business. Sellers are even utilizing Craigslist to avoid brokerage fees. Buying a business usually involves purchasing the good will, trade secrets, inventory, and other stuff that make the actual operation possible. A business also has to be somewhere, whether it be a room in the buyer’s house, or a commercial space to have all their “stuff”.

The old catch phrase of “location, location, location” really hits true in commercial property in Florida right now. Some areas are booming – such as Sarasota, Venice, parts of Ft. Myers, Naples, areas around South Florida, Orlando, and Ponta Vedra, SE of Jacksonville. And some of those same areas, plus many others – may as well have scabbies when it comes to off-loading tired old commercial buildings.

One only need drive down Hwy. 1 or get off 441 to see strip malls nearly empty, shopping centers with lots of large vacant stores, and free standing empty buildings. A few have sold and are being bulldozed for urban renewal – mostly multi-family housing, because rentals are getting scarce and expensive in Florida. A big challenge with commercial redevelopment in Florida is dealing with old boy politics, city and county councils, and infrastructures set up to make most of their money off impact and permitting fees. Commercial investors have deep pockets, right?

It is interesting when you try and find information, blogs, or articles on investing in Florida, all of them are written by commercial property investment groups. They try to convince you that Florida is tax friendly, has low unemployment (because so many of them are retired!!) is “relatively inexpensive compared to New York and Los Angeles” (well, what isn’t??) and is the #1 investment location for foreign capital.

So even if you get ahold of a decent little shopping plaza, what can you expect? 10.6%.

Great ROI, right? Not so fast. Over 20 years. And that is the national average per investopedia.com. Numbers for Florida are not so forthcoming. A lot has to do with so much excess property sitting vacant in places like most of Orlando’s suburbs, Daytona to Titusville to Cocoa Beach and south, large chunks of Jacksonville, vast expanses of the panhandle, and what little of the keys is still intact after Hurricane Irma.

You see, there is huge commercial property growth – a lot of it new construction – in high rent districts like Sarasota and Wellington – but not a massive amount of anything in the vast remainder of Florida.

I, for one, do not want to have to drop several million dollars to get a piece of commercial real estate that may have a 2-4% rental ROI. All I need is one vacancy and I have lost my shirt.

Besides, why if you are retiring to Florida do you really want a business to tie you down 24/7? If you do, are you already underfunded and need the cash flow? That is one reason there are so many business for sale in Florida. People coming down and thinking it will be easy. It isn’t. Running a brick and mortar is just as hard in Florida as anywhere else.

I am my own boss, on my own hours, kind of like being retired…

I would rather not have to play Russian roulette with my money. My lead gen business regularly returns 80-90% profit margins to me, day-in and day-out. I travel when I want. Let me explain how I got into this wide open, ethical, honest, business model.

After graduating from college with a degree and a new corporate $35K job, I quickly realized that if I really wanted to make money, it had to be doing something besides working for someone else. So I started to hunt. I tried MLM’s. I tried reselling inventory. I even tried online as an Amazon seller. I made a little, had a lot tied up in inventory, and worked a lot of extra hours. I had no life. I did this for several years, then I read an article about Dan and the lead gen coaching program he has written.

This business coaching program did not resemble anything I had seen

I have to admit, I was sort of jaded by then, but Dan came across as a straight shooter and hard worker, and he worked the business himself every day. I looked around for blog articles and information and was pretty impressed with what I saw. Since I was working 40+ at my regular job which I was learning to hate, and and another 30+ on my own pursuits, I thought “what the heck, nothing to loose.” I clicked on the link, signed up for a free information session, and the rest is history.

Dan did not promise me any pie in the sky. He said, and I knew, that owning a small business (well, I am not so small any more, I an way into 6 digits, pushing 7 this year) was work. Sometimes a lot of work. But I also knew that if I wanted freedom to be my own boss, make my own decisions and mistakes, that I needed to work. I was impressed. Having a background in computers, I knew the internet was the up and coming arena for all things business.

So, I signed up, paid my tuition, took my classes seriously, and dove in. I still worked my “real” job – for 5 months. I killed it in 5 months. Really. And I never, ever, looked back.

The very first lead gen site I wrote was this one.

and rented it right away for $750/mo, direct deposited to my bank account.

Not much compared to a rental, you are thinking. Not so fast. I have been making that every month for 4 years. My expenses are minimal. I have profited $32,400 on that site in the last 4 years, and I do not touch it. I am not even sure I have had to talk to the customer in a couple of years. Mailbox money with continual, stable, residual income.

Will your rental property or flip house do that? I doubt it. Let alone have an 80-90% return.

My retirement is set. I am 29. I do not play golf, but I have a lot of traveling I want to do, and outdoor activities I love. And I am getting to enjoy them and make a 6-figure income every year building my business. Oh, that is profit, by the way.

Do you really want to start a new career, or own a business you are married to, again? Or have to bust your butt repairing real estate destroyed by an irate foreclosed-on owner? Not me. I like the ease of my lead gen business. If you are looking for some of that comfort and self-indulgence, maybe you should consider lead gen in your future. The view is pretty darn good from where I work.

Check it out, no cost, no obligation. No irritating sales calls. No one pushing you to do anything you do not want. Just information. Click here and get some real retirement spending money https://www.bestrealestatedirectory.com/lead-gen/

And pass the suntan lotion while you are at it.

 

Michigan has a lot of diverse advantages going for it

Home always holds lure, and since I grew up in Detroit, I still have a big soft spot for all things Michigan. Michigan has a lot going for it – revitalizing cities, resilient farmers, great pro and college sports teams, and tons of outdoor activities. Michigan also is home to large and diverse manufacturing and commercial interests that range from mining to car manufacturing to agriculture to major tourist destinations in the UP. That is Michigander speak for the Upper Peninsula. You know, that thumb looking thingy above the mitten? That.

When my lead gen business starting very early giving me great cash flow, I looked at real estate to invest in

One of the challenges in Michigan real estate investment is the diverse types of property available, most requiring various amounts of rehab and renovation. Sure, you can buy a house to flip and fix it up pretty easy, and you might not sit on it for too long. But how long will you be sitting on a piece of commercial property or a farm?

Airbnb: a good way to invest real estate money in Michigan?

Residential property is always interesting when it comes to how people plan to get a good return on their investment. One thing being pushed by real estate investment groups for Michigan property right now is using homes as rental units through Airbnb. Heba Baker pushes that potential in Michigan Real Estate Market 2018: Can You Make Money Investing Here?, August 19, 2018 on mashvisor.com. Baker does a good job of hitting stats on the large cities including Lansing, Grand Rapids, Kalamazoo, and of course, Detroit.

Lansing stands out for really cheap median house prices in the market at $107K last year. Baker claims that you can get a rental return of 8.95%, making a return of over $2K a month. That does sound appealing, until you realize the occupancy is left out of those figures. Who goes to Lansing with any regularity besides for football?

Grand Rapids has a tight housing market, and outside Lansing, there is no city mentioned whose ROI is over 1.54%. That is, unless you are putting people up in $80-90K homes in suburbs of Kalamazoo that are sort of questionable. Then you might get 4-5%., maybe. If you are lucky.

The data does not support the Airbnb investment model

If you really want some techie data, Airdna’s Marketminder, the leader in plotting returns, occupancy, average rental night fees, and the like, can provide it. Take a look at Michigan’s famous north shore, nestled on Lake Superior. Even Airdna shows average occupancy of rental property running around 40%. So, take that $2040 per month “revenue” and not even taking out for housekeeping, taxes, upkeep, you name it, let alone the person that has to manage the property. That drops the “revenue” to $816 per month on an average. I make that much on one lead gen rental per month.

All this rental magic return talk never addresses once you buy the homes what you have to put into the homes to get them into rental condition. No information is shared about what is so attractive about Kalamazoo, Lansing, or Detroit. Sure, Wayne State is in Detroit, Michigan State is in Lansing, and Western Michigan is in Kalamazoo, but outside of freshman orientation and graduation and a few Big 10 games at MSU, there is not a lot of happening stuff going on here. Two weekends a year is not going to get you a return on your cash real estate investment.

I regularly have an 80-90% profit margin on my lead gen properties. Why would I tie up a couple $100K in a house in a who knows neighborhood praying someone needs a rental? That does not even compute with me. I like my 80-90%, direct deposited monthly, residual income off my “virtual real estate”. I own my virtual real estate, there are no property taxes, and I do not need its driveway plowed in the winter.

Agriculture is big in Michigan

It has been said if you want a real thrill, jump out an airplane. But if you really want an adrenaline rush glued to the edge of your seat, buy a farm. In Michigan. In the winter.

Agriculture is one of the top three industries in Michigan, along with manufacturing (obviously, autos leads that) and tourism (which we all know is “Up in the U.P.”) Michigan grows a lot of hay, sugar beets, beans, corn and wheat, and is one of the nation’s largest producers of Christmas trees. Now that is happening business for a return on your land investment, as in oh, 8-20 years to grow a crop of trees that can be destroyed by one heat wave shipping them south after cutting. Michigan also grows a lot of hot house bushes and plants, which actually account for 14% of their agricultural output according to netstate.com. Well, somebody has to grow all that stuff that freezes in the winter, right?

Choosing agribusiness investment property can be challenging

Back to the winter farm purchase, though. A little geology is a good thing here. Michigan, like other states around the Great Lakes, was pretty much formed out of glacial moraines pushed up during the last ice age. Put that in every day language and you are talking dirt and rocks pushed up together. Rocks. Lots of rocks. To rockhounds Michigan is a paradise of agates, copper ores, and other pretties of every color and pattern. To a farmer they are a nightmare.

A white blanket of snow is a realtor’s BFF to pawn off rocky, swampy, or poor quality farm land.

Buying a farm or any raw ground in Michigan should only be done when the snow is off. Period. That kind of limits looking around to four or five months, less mud season, so make it three or four. Any good farmer knows that if you are going to plow and plant even alfalfa the rocks have to go because even one good one will break a tine off your cutter and you are down for repairs. Meanwhile it rains on your hay, ruining it. And rocks, while there are machines that do some good, usually have to be picked. By hand. You get the ugly picture.

The poor land, the low swampy mucky clay clogged stuff, well, you can buy that all day long. Selling it is another thing, if you can find a sucker that can fend off the mosquitoes. And doesn’t mind rocks.

So once you have found the perfect piece of nice dark loamy soil next comes the sticker shock. Good Michigan farm land runs $5,000 per acre, and it rarely sold except when lost. Farming in Michigan is suffering the same fate as elsewhere, in that family farms, many held for generations, can not compete with agri-conglomerates.

Agricultural property is notoriously difficult to get banks to extend mortgages on, especially if you are not a farmer, as the failure rate without experience is high. They are not keen on investors, either. Insurance can be a whole different issue. Many farm structures are older houses, barns, machine sheds, pole barns, that fit into a different insurability category, if at all. Also, many farm policies require the property to be occupied. Do you want to deal with a renter calling about a frozen sewer line at 2 a.m. when it is -30 below?

Michigan is an outdoor recreation bonanza

Recreational property in Michigan is usually scarcer than hens’ teeth. Michigan has three main interests for tourist business – the lake shores, the hunting areas in the north, and the UP. (Going for a weekend in Detroit can be more like going with Xminks into Call of Duty, so we are not going to call that a holiday stop.) The challenge with recreational areas in Michigan is many of them have been settled and are in the same family ownership, or belong to the state. Lake cabins, fishing resorts, boating operations, up state hunting preserves, usually are limited, have high insurance, taxes, and very seasonal revenue streams.

Yeah, I know, some of them rent snow machines. You ever tried to keep a snow machine up and running? I would rather be sitting on a warm beach somewhere with my laptop and a cold drink working on my tan and a new lead gen property. No 30 minutes to put on enough clothes to keep from freezing in very sub-zero weather, and I am making money. Repairing snow machines does not.

The really good recreational areas are pretty much tied up or belong to the State

Really nice resort type property such as in on the Upper Peninsula, which you can only get from the rest of Michigan by boat (or a very long drive the length of the state, across northern Ohio and Illinois then up the length of Wisconsin…who ever divided this state like this anyway?) isn’t for sale. It has been in private trusts or state ownership since time immortal. They do grow some apples and some gourmet food up on the UP, but it is limited, expensive, and mostly goes to hoity toity restaurants.

The other great place is Mackinaw Island. It is only accessible by boat or ferry, too. It is a beautiful place with a grand historical hotel, which is wicked expensive to stay at. And only open about 4 months a year. The whole island is sort of a wildlife sanctuary, so buying property there if it ever came available is super expensive and has many rules like HOA policies except much tougher. Tying up my money to even be able to enjoy it for 4 months a year let alone not make anything on it and having someone tell me how to enjoy it seems a little lame.

So is commercial property the way to go for real estate investment in Michigan?

Commercial properties in Michigan come with some challenge. First is condition of the buildings, many not maintained for over two decades due to the struggling Michigan economy. Next, what liens and issues may come with the property? A lot of properties in Michigan come with more than back taxes or repairs. Some come with fines and EPA issues.

Flint everyone knows is tragic and may never recover from the environmental issues it faces. Many Michigan cities have environmental challenges, as manufacturing and industry were pretty lackadaisical about chemicals, leftover industrial waste, toxic cleaning materials, and the like just being dumped onto the nearest land or into the nearest water. Sometimes it was just left right where it landed on commercial properties. This means ground water and ground, period, on many properties face expensive clean up, disposal fees, inspections, and health concerns.

Chemical clean up and pollution is a vacuum for your dollars, if you go there.

Third, what is the tax base on the property, and last, can I even find a buyer or renter for it once I purchase it? Rehabbing commercial buildings is often a moot thing to do, as many renters or new owners will want to build out according to their needs.

Retrofitting commercial buildings is costly

Often commercial investment properties will require old equipment being torn out and hauled, as much of it is has no resale value, is worn out, is out of date, or is just simply too expensive to move and/or retrofit. It has to be done, though, to make the place rentable or salable. Tearing out and hauling large factory equipment is expensive, often 6+ digits expensive. Add that to the costs of acquisition, clean up, taxes (often back taxes), and commissions to handle both purchase and sale, you have eaten up a chunk of any money you might make on a larger commercial building.

Smaller commercial properties are more doable, if the building you are thinking of investing in does not require extensive repairs and updates to meet code. Many small business and commercial real estate owners lost their properties during the recession in Michigan. This is especially true in large cities like Detroit. Detroit, while making a comeback, has major neighborhood issues with many that will never recover. Is that small strip plaza in an area where people are actually rehabbing homes and selling at a reasonable profit, or is it in an area that looks like a bombed out war zone?

Lots of due diligence is needed in any city in Michigan, period, when you are putting money into either commercial or residential real estate, to see if there is any chance of a return on your investment dollars.

Detroit is recovering….maybe

On the topic of commercial business in Michigan, it is worth note that General Motors, GM, is the largest employer in the state. They are based in Detroit. Detroit is one of those areas the real estate investment companies keeps telling you is a great place to buy property.

USAToday reported on Nov. 26, 2018 that GM was preparing to close plants in Michigan, Ohio, Maryland, and Canada. That included the Detroit Hamtramck plant. GM is laying off 15% of their salaried work force, and numbers of hourly workers facing reduction is still being challenged by the unions. Then they got hit with negative sanctions for having to close plants.

It does not sound like Detroit is a sound place to invest real estate dollars now or for some time to come.

I would rather have some control over where my money comes from, and goes.

When I build out a lead gen property, I know from experience that I will see a very strong return on my investment. I own the property, and I make the decisions. I get to choose who I rent the leads to every month.

Let me explain about the return. When I built my first lead gen site

I spent about six hours doing it. I got it rented right away, for $750 a month, direct deposit into my business account. I have a little bit invested in monthly fees to keep the phones lines up and the website active. I have rented that site for 4 years, and I have cleared, in pure profit, over $32,400 on that one site. And I hardly ever touched it once it was up. Can you say you never touch your rental property? I bet your $750 is going for the mortgage and not into your pocket as profit.

Is Michigan real estate investing making money or a social gathering?

Real estate investment companies would like you to believe that buying rental property in Michigan is a strong, smart investment move. Areas like Detroit and Ann Arbor have real estate investors clubs popping up. Meetup has even jumped into the real estate investment parlor, with get-togethers matching up people with money and contacts from MREI as well as investment firms that specialize in Michigan real estate both residential and commercial.

Taxes in Michigan are a big problem for investing

There is another thing about real estate investing in Michigan. Across Michigan reported on patch.com, January 24, 2019, that a recent study by 24/7 WallStreet found that Michigan’s property tax rate is the highest in the nation. Above downtown New York City and Beverly Hills. Wow. Add that to 6% flat income tax, 6% state sales tax, and the fact that all pensions and retirement monies are taxable in Michigan and you have a heavy burden on people already praying their jobs do not go away.

I did a lot of investigating into both commercial and residential investment opportunities in Michigan when I started having real revenue and extra cash from my lead gen business. I kept hearing how good an opportunity it was with recovery happening. That was not what I found to be true. It just could not match my lead gen business.

After attending the University of Michigan and graduating to the $35K a year corporate gig, I knew early on I was not going to be happy punching the clock. It was drudgery and it was immediately obvious I would never make enough to have a life, let alone a lifestyle, like I wanted. So I started looking around.

I did a lot of research and reading, and got involved with several MLM’s and then drop shipping via Amazon. I was still working the 40+ hour job, too. I worked my backside off and made some money, but had zero life and was exhausted all the time. I made a little decent money drop shipping for Amazon, but it was killer to keep up with the time, tracking, and issues generated by such an enterprise. So I kept looking.

I knew in order to make a decent life for myself long term, I had to find something that provided residual income with the least effort to maintain. That meant whatever that business venture was, it had to be rock solid, streamline, and easy to learn, understand, and operate. I had a background in computers, so of course, I looked more toward online opportunities, as I simply could not deal with all the inventory and space many small businesses required, let alone the narrow profit margins and cost of acquisition, slow turn rates, taxes, and the like.

That was when I discovered the lead gen coaching program Dan has written and was working every day

It took a couple of years of looking, trying, and working myself half to death, trying to eek a decent profit margin out of the online models I was spending time and money on, when I ran into Dan and the lead generation coaching program he had put together. I regularly read entrepreneurial blog I followed., and there it was. Here was a guy like me, well, sort of, I had the college bills and he did not, but he was not much older than I was (I was 25) and he was making money hand over fist. He had a scalable business, with a very high return on investment.

And he had a life. That was really important to me after several years of 80-90 hour weeks. I needed a life. So I thought, what the heck, the call was free and no obligation, and I signed up for a phone conversation about his program. The same place I set up a call is right here https://www.bestrealestatedirectory.com/lead-gen/

I was impressed. Dan was a very straight shooter, obviously ran a very ethical business, and was positive and full of energy. Most important to me he was not trying to sell me somebody else’s stuff – his coaching program was his, he worked his business that he taught how to do every single day, had a family and was making serious money. He was not cutting corners to get, or keep, customers – his motto was always give more than you get.   And he was able to invest in other streams of revenue to create a legacy for his wife and children. Impressive.

I really liked what I saw and heard. I got all my questions answered straight up. So I signed up, paid my tuition, did the homework and learned the program. I saw that even though I had a computer background, it was obvious that anyone with only a little work could learn, easily, even if they had never been around computers.

I had to hang on to the corporate job for 5 months to cover my bills. I resigned to go full time in my business at five months. And met my bills. And I never, ever, looked back.

My business investments average 80-90% return. Consistently. For four years.

Was it hard work? Yes, at times.

Was it scary? A little. Any business you own is a little scary at first.

Was there a learning curve? Yup. It is the internet, it changes constantly.

Will it tap out? No. No. and No. The world is going digital, period, to find what they need, when they need it, for the price they need it. Successful businesses are learning that, and it is wide open for people like me – us – to help them grow.

How many of you can say you walked away from your j-o-b to your own healthy business with residual income that paid all the bills plus some in five months? Not many.

Would you like to?

Here is the link https://www.bestrealestatedirectory.com/lead-gen/  for more information and to sign up for a no commitment, no cost call to learn about the training and opportunities it can provide for you.

You will be so glad you took that first step to freedom. I sure was.

Or you can go shovel snow in Michigan to fix that broken sewer pipe.

Choice is yours.

 

Welcome to winter!

Many northerners are looking for somewhere warm to get out of the cold, dreary, long days of winter right now. I know winter is also a great time to check out those blustery locations for what is going on the rest of the year and how they look for investment, especially in real estate.

Growing up in Detroit, I tend to associate winter wind and cold with lake effect. There is no town that matches up with that better than Chicago. After all, they have been long known as the Windy City for a reason, as they are strategically located at the southwestern most end of Lake Michigan. And, if you are talking about real estate, one of the first tenets is “Location! Location! Location!”

Chicago is centrally located for the strategic movement of personnel and freight

Chicago has location going for it. And relocation. More corporate headquarters are moving to Chicago than any other major city in the U.S. Location is a major reason.

Located at the crossroads of the northern half of the U.S., if you are going most anywhere, you have to go through Chicago or around it. If you are driving, you hit the famous “Loop”, passing over many of Chicago’s traditional old ethnic neighborhoods. That diversity has been a strong point for Chicago since before Mrs. O’Leary’s cow kicked over the lantern, leading to the great Chicago Revitalization Project…urrr, I mean, Fire, that leveled most the city in 1871. Just about any culture you enjoy is available somewhere in Chicago.

When flying, you likely will transfer through one of Chicago’s two very busy international airports – O’Hare, or Midway. (Midway is also one of the busiest commercial freight airports in the U.S..) Over 102 million passengers passed through O’Hare in 2017 alone, and it serves as a major junction point for many international flights.

Chicago has a massive waterfront, and is one of the busiest commercial ports on the Great Lakes – in the entire northern U.S. for that matter. So busy it has several ports that function as a regional system connecting fresh water rivers with commercial shipping across the Great Lakes and then ocean bound via the St. Lawrence Seaway.

The Chicago stockyards and rail yards are some of the largest in the nation. Cattle, hogs, and other livestock pass through Chicago, most via truck freight and rail. The railroads still have major roundhouses and union yards in Chicago, and millions of tons of freight pass through there heading east, west, north and south every year.

All those things make a great combination for manufacturing and corporate offices where people and goods have to have great access to transportation and supply chain opportunities. And the greater Chicago area has the trained labor force to handle those transportation needs. That force is largely union.

Labor unions are cornerstone in Chicago industry and commerce

Unions are the backbone of the Chicago transportation network, as well as construction, manufacturing, education, and other industries. No fewer than 62 major unions are strong and competitive there. They exercise considerable control over the strategic movement of goods into, and out of, the Chicago docks. Supply chain managers have to deal with laborers who make a high wage – plus benefits and protections – thanks to the unions. Unions have had a positive impact on safety and conditions for over 100 years, but also add to the cost of the goods and services in the area. They also make for some very complicated and at times tenuous business requirements many companies would sooner avoid.

Chicago – The Windy City – the #1 U.S. corporate relocation spot

Corporate giants including GE, ConAgra, and Archer all moved major portions of their corporate headquarters to Chicago in the past few years. Many decisions were due to the ability to move people and goods easily and at lower cost because of Chicago’s centralized location. The transportation industries in Chicago have a long history of stable, highly trained workers thanks to many years of union labor dealing with the automotive, lighting, ore, agricultural, and manufactured goods that move through the terminals and ports of the region.

Real estate investment opportunities in Chicago should be strong, but are not

With all this business moving to town, it seems like real estate investment opportunities in Chicago would abound. Chicago was hit hard during the recession like all major metropolitan areas. Chicago business seems to be bouncing back and should present strong turnkey real estate investment opportunities. Why, then, has Chicago been the only top ten major U.S. city to loose home values? According to the S&P CoreLogic Case-Schiller Indices, Chicago home values went down 2.6% last year, and have languished near the bottom of home value increases year after year. Why?

There are a lot of reasons, and some of them not so apparent. Chicago has a number of issues. Property taxes have more than doubled in ten years. The housing market is very soft. Chicago has more under water homes, i.e. more owed than they are worth, to the tune of 135,000 at EOY2017, more than NYC and LA combined. A little perspective helps to see below the surface why investing in Chicago has to be done with extreme due diligence and a large measure of luck.

Frankly, I like safer investments like my lead gen business. I do not have to count on luck for revenue.

Workers are looking for flats and condos in Chicago, not houses

While Chicago has a lot of corporate headquarters moving to town, the workers are not buying traditional real estate. It might seem like a good time to buy a home in Chicago, but problem is, many of the corporate types, used to living in an airplane seat or working 60-85 hour weeks, do not want the responsibility of a large home or property to maintain. They just do not have time. Or the money. It is not cheap to live in Chicago.

Median income is $62,848, which sounds great, until you consider that rent in one of the safer areas of Chicago runs between $1300 and $2900 for a two bedroom apartment. The cost of living is 23.4% above the national average. So if you are looking for investment property, you truly need to gravitate to neighborhoods close enough to areas of employment that renters or buyers can afford a decent place and make a decent wage.

Chicago is the 14^th most expensive city to live and work in in the world

Most companies moving to Chicago are bringing staff or hiring into the area. The corporate workers moving to Chicago are opting for condos in towers or multi-family housing units, not turnkey investment properties. Nor are they buying the McMansions in Lake Shore, Highland Park or North Shore at 7 digits plus. There is no guaranteed loyalty or longevity any longer in business. You do not know when you are going to move again and have to sell, or even have a job to pay the mortgage.

That is another reason I am so keen on my lead gen business. I do not have to worry about the company selling, irate bosses, or meeting their bottom line. I meet my own.

The vast majority of jobs coming to Chicago are white collar and professional, and not located downtown

Chicago may lead the nation in corporate relocation, but those people are not the ones living in the neighborhoods where cheap property (i.e. investment real estate) can be had. The suburb of Englewood, for example, has had a nearly 75% decrease in population in two years from 2015 to 2017 due to lack of work and crime. Those houses average $20,500. White-collar folks coming to work at Archer, ConAgra and GE are not going to live in those rough neighborhoods and drive clear across town to work just to get a cheap place to live.

Traditionally ethnic neighborhoods around Chicago are emptying out, too, some rapidly. The Latino population, who moved into South Chicago heavily in the 1990’s, are leaving at a rate in excess of 10% in the first decade of the 21^st century alone. Other traditional cultural areas are seeing similar negative changes.

More people are leaving Chicago than are moving to Chicago

Private real estate is lagging, badly, on resale in Chicago. Chicago was the only one of the ten most populous cities in the U.S. for both 2016 and 2017 to loose population. Why? A lot of it is due to lack of long term resale value on homes.

That means a gut of houses on the market. Locals are not getting those new corporate jobs. And people are retiring, sometime early, due to work availability going from manufacturing to corporate. So Chicagoans are leaving. By the droves.

So who are you going to sell that fixer-upper to?

Baby boomers are retiring and leaving the winter, taxes, and crime in Chicago

The largest generation in U.S. history, the baby boomers, are retiring, en masse. And they are leaving northern cities – especially Chicago – and heading for warmer climates, like Florida. Property taxes pushed by massive city debt, cost of living, and crime are three reasons.

Winter is another.

The City of Chicago has some of the worst debt of any major metropolitan city in the U.S. 

And it affects real estate values

Michael Hicks, economics professor at Ball State and one of the most respected people studying Midwest economics puts it bluntly, “There’s a direct correlation in the declining demand for homes…In every region, affluent or not, demand is compounded by government that they’re doing their best to send Chicago off the rails.”

Chicago has only 9.5 billion in assets with a city debt of 42 billion according to statedatalab.org. And they have no way to pay it off. In fact, according to Kyle Gibson states in Feb 6 2018, “Chicago Ranks Second Worst of most populous U.S. cities for fiscal health”, Illinois News Network (Feb. 6, 2018),

Chicago has a debt of over 40 billion, which is $45,000 per person in the city. That is not including the $20,000 additional dollars per person it would take to cover the outstanding bills the city currently owes. And Chicago has no way to pay those bills except to push the debt out onto the taxpayers – i.e. business owners, and property holders.

There is a long history of excessive borrowing to cover city expenses to run Chicago.

There is also a long history of questionable accounting practices and management of that money.

Property taxes have more than doubled in Chicago in the past decade. A lot of that rise has been government trying to stem financial bleeding from running a town in a manner way over its ability to pay for services that notoriously stink.

And with boomers and ethnic groups leaving and property languishing, that means less money in the property and business tax coffers.

The elephant in Chicago’s financial closet is economic separation

Like many big cities, the Windy City is known for neighborhoods. Sadly, Chicago has also gained a reputation for some of the most dangerous hoods in the country. Gangs, drugs, violence, and shootings are on the news nearly daily, broadcast all over the country, about Chicago. Chicago is portrayed as having some of the highest murder rates and per-day shooting counts in the nation. People are afraid for their kids, and grandkids, in their own yards. They want out.

Admittedly, crime rate has improved to an all time low, and numbers are actually better than many metropolitan areas in the US. However, murders and shootings are up, accounting for half of the national increase in 2016.

A lot of the crime in Chicago carries the burden of its historical image, and “newsworthiness” fueled by what is controversial. Chicago has made a lot of effort to isolate and more carefully control perceptions in order to attract big business. Still, the south and west sides are kept isolated from the Loop and the downtown, lakeshore and north areas where tourist and business traffic in and out of the city are heaviest are kept under a close watch, and everyone keeps a zipped lip.

Education and judicial reform are critical for Chicago to rebound

According to June 21, 2016, Crain’s Chicago Business “16 Solutions to Chicago’s Most Vexing Problems”, 14% of the population of greater Chicago lives below the poverty line, virtually unchanged since 2012. The educational system in Chicago has many challenges, including underpaid teachers (everywhere) and lower expectation for quality in the classroom than many areas. There is little collaboration between schools anywhere in the district. This creates challenges in graduating qualified people to become the new workers to fill home town jobs.

Those issues, along with badly needed court reforms, are big stumbling blocks in an area where nearly universal business S.O.P. is refusing to hire convicted felons. With one of the highest perceived crime rates in the country, that is gasoline on a bonfire to keep entrepreneurial ventures out.

I don’t know about you, but this does not sound like fertile ground for my investment dollar. Why would I take the risks of this city situation when I am consistently making 80-90% profit on my lead gen sites?

Least of all, winter…

As trivial as it might sound, potholes are a big issue in Chicago.

Cursing the damage to your car is a reality in a city that does not have the fiscal where-with-all to fix the darn things. Another challenge is run-off and industrial pollution, both magnified in the winter-to-summer annual transition as salt and chemicals drain into nearby rivers, canals, and Lake Michigan. Clean water regeneration, invasive species brought into the ports that threaten commercial and recreational fishing, air pollution, and disposal of toxic waste are all big, serious local health and economic issues.

But winter presents other financial barriers.

Chicago does not have a market for vacation buyers or international real estate investors, and weather has a lot to do with it. Do you want to go “enjoy” Lake Michigan when there is a 50 below wind chill? Not me. I would rather be kicked back with a customary cool beverage of choice under a palm tree somewhere, laptop in hand, working on my lead gen properties.

Given all these factors, is no wonder, seeking warmer climates and wanting to snag a retirement home before prices in those areas go up even more, that baby boomers are leaving and heading south.

My lead gen business is a lot better investment than real estate in Chicago

Lead generation properties act a lot like real estate, except they are virtual. What I mean is, when I write a website to bring in business for a client, increasing their bottom line, I own that digital site. And I get paid every month. Well. Really well in some cases. And they are glad to pay me.

When I graduated from college and took the “normal” $35K j-o-b working for big corporate America, I was miserable. I knew I would not last unless I got out. So I started to look for an escape route.

I investigated every imaginable way to make money on line, since my background was in computers. MLM’s, while some were sort of ok, were a pain, and most died painful, expensive deaths. My friends and family had started avoiding me. (Now I have really cool friends who make as much or more than I do that hang out with me.)

Next I tried Amazon and other avenues to resell products, drop ship, you name it, I tried it. I was working crazy hours, making some decent money, but was exhausted and had no life. That was not why I went to college and sure not what I wanted in my life. So I kept looking. Then I discovered Dan and the lead gen business coaching program he put together.

I signed up for Dan’s training on how to help businesses grow, legitimately, ethically, and I never, ever, looked back. You won’t either if you decide to give it a chance. Check out how at https://www.bestrealestatedirectory.com/lead-gen/ .

Yes, I worked for a while and did both businesses – my job and my lead gen business. Was it hard? At times, yes, but most things worth having take some effort. I worked a 40 hr week and worked as much as I could at getting my business up and running. It did not take long until I not only had cash coming in every month, but my business was growing and I was getting referrals to other businesses that needed my services. Word of mouth from happy customers is the best free advertising you can get!

See, there is a really massive number of businesses that need more customers.

Something like 2.4 million small businesses that can use more business just in the U.S. That is a lot of potential customers. And every day more people go into business for themselves. Have you dreamed about it? Now is your chance. It does not cost you even a dime to listen. And I want you to ask questions. Anything you want to know. We will give you a straight answer, or find someone who can.

Dan showed me how to get my life back, be my own boss, and make money. And the best part, I was in control. I could work as hard as I wanted and actually see something for my hard work. I learned from my own mistakes. And I got to kiss the j-o-b goodbye in five months.

Yes. You read that right.

Five Months.

I really like the feeling of doing things to help clients prosper in their businesses, reasonably. Because when they prosper, I prosper. It is not just about the money, either. It is about doing something good for both of us in a positive way. And getting to work a short work week, travel just about anywhere I want, and doing cool things with friends does not hurt.

This is just one of the sites I put up for a customer –

 

I put maybe six hours into the site, one of the first I did. I get paid by automatic deposit every month, and have for four years at $750 per month. After expenses, because all legitimate businesses have expenses, I have made $32,400 the last four years off six hours of work and literally not had to touch the site again. Pretty great return on investment, huh?

Being your own boss running your own business is possible with some work and investment

Would you like to kiss your j-o-b goodbye investing in yourself instead of someone else’s profit share? Go visit this link to find out about our training program https://www.bestrealestatedirectory.com/lead-gen/ .

At 29 I have some disposable income to invest from my six figure income. That is why I looked at the Chicago investment real estate market. My lead gen business is a whole lot safer, surer, and less stress. I work when I want to. I play when I want to. And I do not shovel snow when I do not want to any more.

Check us out. There is no obligation and it does not take a lot of time. I can hook you up with a live person to get any questions you might have answered.

I knew I could not keep going in, day in and day out, to a job I hated. I had to do something for me.

Do you?

 

 

Do You Really Want to Invest in Detroit Real Estate? Thoughts From a Successful Local

So you’ve worked hard, squirreled some cash, and want to find a way to make it work for you…

You are getting tired of the grind and not being master of your own life. Everybody is an “expert” how to invest your money – stocks, muscle cars, crypto currency – but everyone eventually mentions real estate. You’ve done a lot of research and know there are towns post-recession ready to move forward to heal, grow, expand, and invite companies back to provide jobs and invest in the community.  Sounds like a win-win for you and real estate investment, one of the most lauded, tried and true methods to grow your money in a “safe” financial market.

Or is it?

Detroit MI is one of those “safe” real estate investment towns.

Detroit went through a direct ground zero hit during the economic downturn, barely weathering the recession of the decade. Massive layoffs occurred at the “Big 3” – Ford, GM, and Chrysler – starting post millennium. Things got a lot worse when the recession hit with more plant closing and layoffs. Desperate, Detroit finally filed bankruptcy, the country in horror this mega-size city had four out of ten zip codes with the highest foreclosure rates in the nation.

 

Detroit is being called a phoenix by realtors and investment firms alike.

In Crain’s Detroit Business’s 9/23/18 blog “Opportunity Abounds in Detroit – If You Know Where to Invest”, Brent Maxwell of IPS Realty – Detroit claims Millennials are flocking there for “out-of-the-box” careers.

Really? Millenials are all about lack of jobs and money. More likely they are looking for cheap housing.

Maxwell claims rightly that government is throwing money at Detroit.  Detroit has long had a serious slumlord problem, and they are now being ticketed for derelict properties.  With metro resources stretched to the limit and no relief in site, it is probably an effort to avoid the maintenance and safety issues run down properties bring to the city.  Maxwell closes iterating that only locals can begin to know safe or recoverable neighborhoods and it has to be a grass-roots effort.

Sounds like challenging investment, especially if you live in SoCal or Arlington, VA.

Real estate investing in Detroit looks like it should be a no brainer.

Lots – and I mean LOTS – of vacant and run-down houses. A trained out-of-work work force. Government incentives to bring companies back. Detroit has nowhere to go but up, right?

As an investor, I looked hard at the real estate market in Detroit.

After all, I am a homegrown son, having spent most of my life here with no intention of moving.  I am a successful business owner with dozens of lead-gen properties making me good, high ROI money every month and considerable disposable income.  You would think that flipping houses would be high on my investment list since it appears to be easy money right in my back yard.

Uh,  yah… Nope. I simply make too much money in my lead generation business, with far less risk and far less investment, and a lot less worry.

Let me explain. Detroit had a lot of cheap houses, but businesses are slower to recover than the housing market, due to capital investment.

 

You can make money on Detroit real estate – sort of.

Detroit’s housing median price in 2016 was $36,000 (yes, you read that right). There has been a 41% drop in foreclosure rates since 2016, according to the S&P/Case-Schiller Home Price Index quoted by HomeVestors Franchise in June, 2019. Many of the worst run down houses were bulldozed, others renovated, making available houses more limited.  Motivated sellers still in foreclosure may have a property worth looking at to rehab in neighborhoods that might recover in the future.

And you may not have to do the manual labor and hunt yourself. There are lots of large investor groups nation wide that would love to play with your hard earned cash.

Reality is, Detroit’s renaissance is contingent on a number of things

Namely, governmental decisions revolving around tariffs, incentive programs targeted for cutback, mortgage rates that are stalling, and rumblings of another recession.

Are your hard earned dollars really going to be safe invested in cloud-in-the-sky promises of urban renewal and mega-industry regrowth?  Ask GM.

I don’t know about you, but when I am investing my hard earned cash, words like “might”, “may”, “could” just do not provide me warm fuzzies.

Numbers warm my heart a lot more. Let me give you an example. My very first lead-gen web property I put up 4 years ago brings in $750 a month.  It took me about 6 hours to write and launch, and I have barely touched it in 4 years.

I rented it the first month. $750 x 12 months = $9,000/yr  x 4 years is $36,000.  This site has cost me about $75/mo – $75 x 12 x 4 = $3,600.  So I made $36,000 – $3,600 = $32,400 in profit.  I get a direct deposit every month of $750. How much is it going to cost you to remodel and bring up to code one of those derelict houses you paid a $1,000 or more that you are going to sell at $36,000 or maybe$50,000?

I am consistently making 80-90% profit on my lead-gen sites. How much is your real estate return on investment?

Another thing about my lead gen business is I work about 20 hours a week and make high six figure income, all doing something people need and want. Do you? Or would you like to and just do not know how to get there?  I can send you in the right direction.

 

I hate to say it, but I am leery of the economic future and its stability in an area so depressed.

I would love nothing more than to see Detroit rise like a phoenix from the ashes, but I am also a smart, shrewd, observant, successful business owner.  There are too many red flags and promises rather than realities in the chance of investment profit through the salvation of Detroit real estate. I would much rather reinvest my extra funds in my lead generation business.

If you are thinking, “Ippei, you are abandoning your home town” –  it’s not true.

My lead-gens, while now all over the U.S., started and still focus first on Detroit and the surrounding areas.  I help local businesses grow so they can stay open, provide more jobs, open second locations. I am nearly 100% guaranteed residual income while still helping local business owners heal and grow into healthy, positive cash flow entities that make Detroit the place you dowant to come back to for the opportunities.

It is pretty amusing to me that HomeVestors Franchise quickly points out in their June, 2019 article that:

When it comes down to it, Detroit’s real estate market is worth investing in. But, to have a good chance of  finding deals that can yield potentially great returns, don’t rely on fire sales or fireside chats. Rely on a property investor lead generation strategy that finds distressed homeowners of undervalued properties and leads them to you.

I want to be the guy who owns the lead generation machine,

not questionable real estate or the stressed out worrying about somebody I don’t know playing with my hard earned cash on “maybe” neighborhood recovery.

Sure, there are houses to be bought cheap – as little as $100 to get them off the city’s tax roles. But how do you know it is a house in a neighborhood that has any chance of recovery? Detroit is a city of neighborhoods – and hoods – and you have to know what you are getting into.  Maxwell openly admits that some areas are ripe for investment property and others will never recover and even the city does not want some to recover as they are too bad and hopelessly far gone.

Finding a fixer-upper is not a problem. Finding a good investment was, and still is.

Realtors in Detroit want you to believe that investing in run-down blocks of single and multi-family homes is the golden key to making a lot of return on investment – fast.

Really?

Detroit is vast – 136 square miles.  It is estimated there are roughly 1,000 out-of-town investors putting down $50K here and $100K there, picking out houses or even an occasional block to refurbish. But how do you pick what has potential or is hopeless and will never recover in Detroit?  You either have to be on site, or have someone you can trust who is very knowledgeable acting on your behalf who is not trying to screw you .

This is one arena where armchair internet investing is likely to blow a big, ugly hole in your wallet.

I like knowing my investment is safe, and growing not only for me but helping the business owners I work with.

When my customers prosper, I prosper.  And I like being my own boss – less stress, more time, pride of ownership. It feels really good.

When I graduated from MSU at 25 and jumped into the hated $35K/yr, I knew immediately I would never get ahead or be happy working for “the man”.  I spent a lot on every internet investment and business model golden egg you can name – drop shipping, Amazon, lots more. I knew I wanted to be my own boss and control my life.  Yeah, I made some money, but it was a lot of work, I still had no control over my time, the risk was high, and, I could not make enough to feel safe killing the 9-5.

 

Then I ran into Dan and the lead gen business coaching program.

I paid my tuition, took the training, and never looked back.

Five months later I was able to safely and comfortably kill my j-o-b.

Once in the training program for the lead-gen business, I got way more than I paid for – a coaching program, hands-on and personnel, 24/7 support, twice weekly exclusive trainings, tons of materials, forms, programs – all free.  A world-wide private work group where questions and challenges are tackled head on with professional, polite, expert advice, often in a spirit of fun.  And I made like-minded friends, many heavy hitters, who push me to be a better businessman and entrepreneur.

Are you going to get that dealing with contractors or a non-descript and non-explanatory property investment group?

I average 80-90% profit on my lead-gen sites, and have consistently for four years. I can put you in contact with the leadership of the group to schedule a no cost conversation to see if the lead-gen model might be a great match for you.

 

 

“Ok, Ippei, I get it, you like your lead gen business. Enough. Is it for real or is it another lead-on internet business where my money disappears?”

I will answer that with yes, it is very real.  You do have to put in some work and perseverance.  And yes, there is very real opportunity.  Last year 64% of all searches were on mobile devices. People looking for goods and services they already had decided to purchase or they would not be looking!

And, in case you are wondering, we are not some sleazy MLM.  There are millions of business owners who need our help and often come to us. The market will never be saturated.

In fact, this program was voted the #1 internet business opportunity of 2019 by businessreview.org and several other organizations.

 

See, lead gen sites are a lot like physical real estate.  

You own the property and what you do with it is your business.  If you are an investor, you build it up to sell or rent and make money.  When you build lead generation sites, websites that direct customers to a local, vetted business, to get services or goods, you own the online real estate.

 

Your customers get exclusive leads and you get quality customers.

You build a site – a property – that exclusively gives leads to one business in an area, helping them increase traffic. It also problem solves for the customer hunting someone to fix their furnace, tint their windows, or provide limo service for their daughter’s wedding.

It has cost you maybe a couple hundred bucks to build, not tens of thousands and tons of time to refurbish like a house.  And you rent business owners use of the space, providing them leads that only go to them, unlike other large referral services that send the leads to many, sometimes dozens, of companies vying to provide the low ball dollar quote – and often, lower quality goods or service.

 It was all there for me to grab ahold of my own future and destiny, responsible for my own business and motivation. 

I was 25 and still working 40+ when I started, and you can as well.  Four years later I make high six-figure income and take time to travel, enjoy outdoor activities, and build my business. It is easy to automate and scale the system once you get rolling.

You, too, can get set free.

Ask me how. It is painless and the phone call is free. Or go straight there at https://www.bestrealestatedirectory.com/lead-gen/

Believe in yourself and learn how to launch yourself towards freedom.  There is no time like right now.

 

Have you make the choice that you are going to give real estate a try? There are a few different things you need to learn before you dive right in though. I am hoping that this article will give you some helpful information. I’ve gotten my real estate license so I know everything that is going to need to go into it for you to be successful.

 

First Tip

The first tip and in my book is going to be the most important, is to stay true to yourself. You know yourself better than everyone. If something doesn’t feel right, don’t push it. You owe it yourself to do everything how you want to do it. In order to be successful in real estate, you are going to really need to push your boundaries. That is why I am telling you to be true to yourself. If you aren’t comfortable with stepping out of your comfort zone, then I suggest you find something else.

 

Real Estate requires more people skills than you could have ever imagined. You need to be able to adjust to different situations and go with the flow.

 

Second Tip

Tip number two. Real Estate is a very self centered thing. You are going to be running your own business so you need to be able to be the boss of yourself. That can be a really good thing and a really bad thing at the same time. Some people dream of being their own boss and others prefer to have someone that gives them guidelines.

 

If you can run your own business and have good people skills, I think that you are going to be really successful in the real estate business.

 

Your next step once you decide that you are going to pursue a career in the real estate business is to find a school to get your certificate from. This is a super important decision and might even be one of the biggest ones of your life. It is going to be the place that helps you learn to be a good real estate agent. In order to be a real estate agent, you are going to need the actual license.

 

I’ve done tons of research on this topic and I feel super confident in pointing you in a few directions. I think it is best to ask yourself questions when you are looking for a school so then you can get direct answers.

 

The first question or thing that I look for in a real estate school is going to be how long has the school been around for. The longer the school has been around for, the more reviews and information there is going to be for you. There are so many options in the state of California so you need to pick wisely. The schools with the most experience are going to know the state best and have the most accurate information.

 

The next question you need to look at is does the course have state recognition?

 

California has different awards for the schools that are able to put out good education. In order to get one of these awards, the state has to go through and make sure the course has everything that is needed for you to succeed. So I highly recommend that you find anything that the state says about the school.

 

Are you able to talk to other people that have been through the school?

 

I feel as though this is a really good question and resource for you at the same time. The more people that you can talk to about the real estate school you are thinking about joining, the more information you are going to get out of it. Ask around to find other information on the school you are planning to attend.

 

Who are the types of people you might find at this school?

This is kind of an awkward question, but sometimes it might help to find a school in which the people are similar to you. Whether that be age, or experience. The more you people like yourself you find the better off you are going to be.

 

These are some really good questions that should be able to help you decide if the school you are looking at is going to be right for you.

Rockwell

I now want to move into a school that I personally believe is going to be the best school in the whole state of California. This is a really good real life example of a real estate school that you can look into. This school is called Rockwell. It is very well known over the whole country and has a great reputation. Their real estate division is top notch and will help you prepare for the real estate exam.  

 

They aim for the bigger picture. You are going to learn how to be a real estate agent, along with learning how to prepare for the exam. I liked this school because you also get courses that are going to help you stay in the loop even after you are done with the course.

 

Rockwell is really helpful for people that are trying to maintain their current life while also working on their real estate education at the same time. They are very flexible and make sure all of the times work for both sides. Here are some of the features that you are going to get out of the course.

 

-Courses that work on YOUR demand. There are many different videos and other sources for you to use to help you study.

-Actually getting to learn in a classroom: The experience of learning in a classroom is really big for success. You need to make sure that you get all of the skills needed.

-Being able to study at home. You have the option to get textbooks to bring home with you and use them when it works best.

 

The first step:

The first step that you need to accomplish in order to get your real estate license is to find the program that is approved by the state. This is why I told you to try and look at Rockwell. They are one of the best ones in the state and are fully approved. Everything is written and designed by professionals. You can get your license no matter what you are trying for in the industry. They are one of the best options. Rockwell should be at the top because of all of the bullet point that I talked about above.