Thing on My Plate

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The past couple of weeks, since the seminar and my determination to get this business going, have been CRAZY! On my list of things to do:

• Research, research, research!! Not only research the market, but also how to start a business, where to invest, what to invest in, hard money lenders, networking groups, how to obtain information, HOT spots, and as you can imagine a plethora of other topics.
• Learn. I've read two books since the seminar. Taken two online classes: one about foreclosures, and another about setting up a business plan.
• Get the biz set-up. This is perhaps the most difficult and perplexing thing on my plate right now. We live in Hawaii, want to invest in Utah, Nebraska, and Oklahoma. Which location do I set up the business? The place where I live now, the place(s) we'll live in the future (Utah and Nebraska), both locations? I don't know. I'm talking to attorneys and accountants in Hawaii right now, but when I go to Utah in a month and a half I'll be talking to attorneys & accountants there to figure out where we'll end up setting up the biz. Either way, we'll have to do business long distance.
• Set up my POWER TEAM! I need to ask around, find, call, interview, and research the following people to put on my team for EACH STATE we plan to invest in. Attorney, accountant, tax professionals, real estate agent or broker, mortgage broker, contractors, property management companies, commercial broker, insurance broker, appraiser, architect, environmental consultants, engineers. The most immediate and important at the moment being attorney, accountant, real estate agent, & mortgage broker. The rest I can slowly add to the team depending on what I'm going to invest in (most likely I'll need a good contractor and property management company soon).
• Network. I've already joined a couple of real estate investing groups online for both Utah and Hawaii, now I just need to go.
• Find funding. I don't even want to think of this one yet...but I am. Since I'm new and haven't done much networking yet, I don't know all the investors (let alone what to say to them or how to work with them). I also don't have a mortgage broker set up; really important for funding. Yikes!! I'll get it done, but for now it's a huge stressor.
• Find properties. This is mostly done online right now since our immediate investments are on the mainland (more affordable to get into in order to start creating cash flow and earned income). Also, what we are looking at right now is mostly research. Looking at the markets, then the properties available for those market, performance expectations for various areas, which locations are better for which investments, cap rates, ROI, REO's, pre-foreclosures, etc. I need to know as much as I can about these markets now, so that when I go there (in the next month or so) I'll know what's a good deal, what's not, what I'm looking for, etc. Basically all the facts so that when I find something I can hop on it, then bring it to an investor, or get the funding from a broker.
• Schedule. I need to, and actually have, set up my class and traveling schedule for the next couple of months. This is what I have so far. Sept 12th, Honolulu, Rich U class. Sept 25th, Wholesale class, Bakersfield. Oct 9th, Foreclosure class, Dallas. Oct 18th, Mobile Home class, Utah. Oct 30, Lease Options class, Denver. Nov 13th, Rehabbing class, Las Vegas. Dec 4th, Creative Financing class, Honolulu. Unconfirmed, Dec 11, Commercial Properties class, Atlanta. I'll also be in Utah, my first investment area, from Oct 12-Nov 11 (fly out and attend classes periodically). That's 8 confirmed classes with one pending. Not bad. Plus for much of that time I'll be where I want to invest. Awesome!

As you can see, I have a lot on my plate right now. I work every day towards my goals and cross off things every day as well. That doesn't, however, diminish the fact that I still have A LOT to do!!! Wish me luck, give me advice, give me a contact, or just read this blog.

Rich Dad Seminar

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Wow! Last weekend was more than information packed, but inspiring and life changing. Nick and I had the chance to attend a Rich Dad seminar in Honolulu all about the in's and out's of investing in real estate right now. I learned a ton, but I thought I'd share a bit about what went on.

Fundamentals & Rules of Investing

• You need to have an exit strategy planned and set up before you buy a property. Exit strategies can be anything from renting, re-selling, lease options, rehabbing, etc.
• In real estate you make money when you buy a property and collect when you sell.
• You buy and sell to create cash, buy and hold to create wealth.
• The more you KNOW, the more you BUY, and the more you MAKE.
• You need more skills in order to buy more expensive.
• DOVETAILING!!! In order to maximize income/profit you need to use multiple strategies for each deal. Example: buy WHOLESALE with OTHER PEOPLE'S MONEY, do a REHAB, then use a LEASE OPTION to sell. 4 strategies were used in this example. The more strategies you use, the more money you are likely to make.
• What you don't know WILL cost you money. For example, if you don't know how to use lease options and you rent or sell instead of using that strategy that would have made you more money, then you lost money because of lack of knowledge.
• If you want to be financially free you must first go into debt in order to get out of debt. Just play Kiyosaki's Cashflow game to get an idea of how that one works.
• Knowledge builds confidence and destroys fear.
• The value of a commercial building is directly proportionate to the income it generates.

Some of My AHA! Moments

• If you own both the land and building that a commercial property is on, lease the land and sell the building. You receive money from the sell of building and continual cashflow from the land you lease. It's a win, win situation.
• You can't make profit on a deal you don't do.
• Self directed IRA/401K's can be used to invest in Real Estate.
• Every time you use OTM (other people's money) and you profit, you're rate of return (ROI) is INFINITE!
• Over borrowing can be good. Over borrow to cover expenses on loans, mortgages, expenses, until you profit from a deal, then pay it all off and keep left over.
• Never pay off good debt in a lump sum! It pays itself off. Good debt is debt that makes you money. Example: a mortgage on an apartment building that brings in a steady cashflow after all expenses are paid is good debt. The investment pays off the mortgage and you still earn money. Bad debt is debt that does not pay itself off, but takes money out of your pocket. Example: you bought a new car; that car does not make you money, it takes money out of your pocket. Therefore it is bad debt. You can turn it into good debt by using the car as a company car, and a marketing tool by putting magnets on it to promote your business.
• When it comes to commercial deals banks look at the deal itself and not your personal income. If the deal sells itself and will bring in money.
• Contract Assigns: you purchase a property from an owner and have it say on the contract "and/or assign," meaning that you can assign the contract over to someone else (your buyer) and you don't have to pay a penny on it! You do, however, make money.

I did, obviously, learn a lot more at the three-day seminar, but these were some of the most eye-opening learning tools I gained. I am so excited to keep learning more about real estate investing. The more I learn, the more opportunities I see, the opportunities I see, the more money that can be made, the more money that can be made, the closer I am to living the life that I want.