When you meet with a motivated seller to negotiate a deal there are five specific steps you need to take to get him to say "YES!" to your creative offer. 1. Ask the seller to show you the house Your Goal: To establish rapport with the seller. In its simplest form,...

There are seven simple truths in the world of the real estate investor. Just seven. Learn about them, understand them, and you'll start out head and shoulders above every other seminar graduate on the planet. Make them a part of you. Observe them in action. Understand...

I've just finished reading a book called Magic Words That Bring You Riches, by my good friend Ted Nicholas. Ted has sold over 200 million dollars worth of information products worldwide by direct marketing. Over the years, he has put together a collection of "magic...

Note: If you're not paying attention, you can and will get creamed investing in real estate. Here are the Top 10 Ways... 10. Operating without a game plan It is pure lunacy to undertake any sort of investment activity unless you have a firm grip on exactly what it is...

Many real estate investing courses and books (mine included) tell you to find a motivated seller. That's where you get your good deals. As a rule, that's true. The higher the motivation, the more likely you're going to get a good price, good terms, or both. But...

As a real estate investor working with tenants, you must be very familiar with the laws of your business. These laws apply whether you own a property and rent it, or you do a "sandwich" lease option. An eviction proceeding, usually called a "summary proceeding" or...

A column on the front page of The Wall Street Journal titled "Real Estate Takes on an Unaccustomed Role," written by Dean Starkman, provides food for thought. I love the first line of the article: Commercial real estate has a reputation for being the drunk driver of...

In 1999 I attended a free real estate investing presentation promoted on late night TV. Since I had been successfully buying and selling property as a full-time real estate entrepreneur during the previous three years, I was curious to learn some new ideas--maybe a...

Is your real estate investing bringing you enough monthly cash flow? Is landlording draining you of energy? Is property maintenance depleting your bank accounts? Are you open to new and safe methods of bringing huge annual returns on your cash? If you answered "Yes"...

In recent years, some lenders have been placing "seasoning" requirements on loan transactions. This has caused some grief to investors that do "sandwich" lease options. [Note: A "sandwich" lease option is an arrangement where an investor leases a property with an...

The way you conduct yourself in negotiations can dramatically effect the outcome. I've been teaching business leaders throughout North America how to negotiate since 1982, and I've distilled this down to five essential principles of negotiating. These principles...

[This article is excerpted in part from Roger Dawson's book, "Secrets of Power Negotiating." ] Power Negotiators know that you should never say "Yes" to the first offer (or counter-offer) because it automatically triggers two thoughts in the other person's mind. Let's...

Finding and keeping a good long-term customer does more for your financial wealth than a "one shot/one profit" deal. If you do one cash deal, you get one check. But a long-term, good-paying customer will make you payments for many years. So regardless what business...

This article is an overview of exchanging. Before you actually put one into motion, you should get a qualified attorney and/or CPA to complete the deal. The regulations sound complicated, but once you cut through the mumbo-jumbo, the basic requirements are pretty...

As April 15th approaches, real estate investors, as most Americans, will come to a universal conclusion: We pay too much in taxes. Real estate investors can reduce their taxable income by taking advantage of government sponsored retirement plans for self-employed...

I was just reading some of my notes and quotes that I've complied over the years and thought I'd share some of them with you. Most were obtained from various speakers, teachers, and writers of motivational tapes, books, and seminars etc. Hope they have the same...

A number of interesting questions have come up about tax-free real estate deals. Among them are the question about doing too many of them in your Keogh or IRA (also known as the "Dealer" issue); what is the difference regarding transactions in a Roth IRA versus a...

The best way to begin your career in real estate is to come up with a good, small, older apartment building--well located, and at a low price, with a small cash down payment. There are several ways to find this type of real estate bargain. I will begin with the most...

Making money is why you're here. I want to offer my original money-making warnings. I hope these ideas will irritate you, stimulate you, and cause you to think--maybe even to send me an angry letter. Here they are: 1. Best-selling business books are generally stupid...

What's a motivated buyer? Well, you're looking at him. I'm a motivated buyer, and I'm not ashamed to admit it. That means I spend my time tracking down and meeting with motivated sellers who are eager to sell me their houses, condos, and mobile homes. Soon enough,...

Not so long ago, credit scoring had little to do with mortgage lending. When reviewing the credit worthiness of a borrower, an underwriter would make a subjective decision based on past payment history. Then things changed. Lenders studied the relationship between...

Talking with sellers on the telephone is something I do all the time. On a busy day, that can mean a dozen or more telephone conversations with people who have properties for sale. Typically, they're calling on my ad or a postcard I mailed, and I'm on the phone with...

Real estate, like any other commodity, is bought and sold every day of the week. Many people become real estate agents because they know a small piece of a large pie means big bucks. Agents help facilitate a sale by finding a willing buyer for a willing seller,...

(Published February 2000) With interest rates headed upward yet again because of the latest round of belt tightening by the Federal Reserve, and the stock market falling with no bottom in sight, many people are crying doom and gloom. I hear talk of watching for a rise...

[Author, Ray Alcorn has written a 3-part series on Commercial Real Estate Due Diligence. Read: Part 1: Financial Due Diligence] Commercial real estate properties are a completely different animal from residential properties in regards to assessing value. That may seem...

The Fair Debt Collection Practices Act (FDCPA) was enacted to prevent abusive practices by bill collectors. The Federal FDCPA, as well as its state counterparts, may apply to landlords, investors, and note buyers. The FDCPA applies to anyone who regularly collects or...

Everyone has a comfort level in which they live and work. It is determined by several factors and can be changed with practice and time. We have a choice of what we do each day, how we spend our time, and how much money we make. This may come as a surprise to some...

Consistently putting deals together is easier than you think. Really! Making things happen and making serious money as a real estate investor doesn't require luck or extraordinary negotiation skills, and it doesn't take talent or money or a masters degree in business....

The most common stumbling block to investing in real estate is not having enough cold, hard cash to act quickly to snatch up the hot deals. What if you could create a hassle-free, never-ending supply of money to do all the deals you want? What if there were no red...

Alexander Burnett is very good at what he does. He buys and sells houses. Realizing the potential profits that could be made by investing in mobile home parks, he began a lengthy search for a small park he could buy. Eventually, he found an eighty-space mobile home...

Just how much money can you make on one old mobile home? I don't know, but I've got one that won't go away. It's like a perpetual money machine. Every time I think the loan will be paid off, something happens and I get the home back and sell it again. I bought this...

As Lonnie Scruggs says, "The opportunities are everywhere. There is no reason to be poor unless you choose to be." So, why do some educated, hard-working people always have to struggle to keep up with their bills? And why is it that everything some people touch seems...

The most frequently asked questions relate to doing transactions which are prohibited or self-dealing. What is self-dealing? Remarkably, the tax code makes some sense in this area. The concept of self-dealing within the context of an IRA is easy: Your retirement plan...

You can't buy a parachute after you jump out of an airplane. Likewise, jumping into real estate investing without the proper education can be a more costly real-life "seminar" than the one you chose not to attend. Some may say, "The seminar is too expensive." I say,...

Well, we're now into 2000, the world didn't fall apart, the lights are still on, my mail carrier is still delivering checks, and my bank is still cashing them. And regardless what all the doom and gloom and negative minded people say, I'm convinced that 2000 is going...

By now you've had time to: Locate three or more rehab investors to flip contracts to; have your contracts ready and thoroughly understand them; and know which title company or attorney you will use to close that first deal. If not, take time to complete these steps in...

If you're just getting started in real estate and need to build your confidence and knowledge before moving on (but still need to make some extra cash), I suggest you start with flipping contracts (house flipping). By flipping houses, you'll be able to earn while you...

Last week I was buying a dishwasher with the tenants for one of my rentals. We went to Sears. Could we have gone to Best Buy, Home Depot, or Circuit City? How about Pete's Previously Enjoyed Appliances? Sure, but we went to Sears where the tenants can feel like I am...

This article will suggest the most creative way to buy real estate with discounted notes. It is a wonderfully intriguing method. Even if you cannot do this exactly, you will still have the very real possibility of trading notes you bought at a discount for full face...

When I started investing in real estate in 1982, I thought you had to have money. I was working a job and was broke. Since then, I have learned that you don't need money, credit, or a steady job to do this type of investing. Of course, having a little cash wouldn't...

Would you rather work a job every day in order to get paid or have someone else work a job and pay you? The answer should be a "no-brainer," but I'm surprised at the number of people I meet that can't understand the logic behind that question and just keep on working...

After forty years in this business, I still enjoy solving problems. What I enjoy most is helping others succeed when faced with the challenge of acquiring a problem property and making it profitable. One of the best examples we have seen was a mobile home park in...

I was sitting in the back of a Chicago cab discussing business with Ray Rach. Upon overhearing our conversation, John, the cab driver, interrupted and began telling us his experiences with real estate investing. It seems he had bought a house a few years ago and...

Let's clear this up once and for all. There is only ONE way to determine the market value for single-family houses: Comparable Sales. Let me repeat: The most accurate way to determine the market value of a house is to use actual comparable sales. Comparable sales are...

Seems like there's always somebody telling us we should get a physical checkup every year or so, but how about a financial checkup? Ever had anybody call wanting to schedule you for a financial checkup? If you haven't had your financial checkup lately, then it's time....

There are some interesting and lucrative advantages of using lease options as both an optionor and optionee of real estate. Generally speaking, option money is not taxable to the optionor until the option is exercised, expires, or is abandoned. I.R.C. Section 1234...

Flipping houses to fix-up guys or retailing houses in better condition to people who are looking for a place to live is a solid plan that can generate an excellent, consistent income. If we're smart, we can take that income to another level without getting involved in...

After so many years in the mobile homes business and many killer deals, I keep thinking it can't get any better. But it seems like there's always somebody who comes along and proves me wrong. I have to share this recent deal with you...it's too good to keep to myself....

You've pre-qualified your prospects. They look good, and you've made an appointment with your lender for the formal loan application. You're feeling good about yourself now, because as far as you're concerned this house is sold...or is it? Don't spend your money...

It's easy to fix up your properties if you have unlimited cash. However, you need to keep your repairs to a minimum to stay profitable. You also need to keep your properties in good shape to attract tenants or buyers.There are the basic improvements, such as carpet...

The number one way real estate investors make money is through negotiation, period. Or did you forget that? If negotiations skills aren't somewhere near the top of your list of things to learn in order to become successful in this business . . . then you need to start...

The manufactured housing industry is making it possible for millions of families to buy their own home for less than they would pay in rent. A few people have become wealthy by showing them how. It isn't necessary to quit your job or profession to start a profitable...

I came across some interesting figures put out by the Bureau of Statistics and the IRS. Thought maybe some of you would find them interesting, too. Twelve percent of Americans over sixty-five are living, or trying to live, on incomes of less than $5,000. Only four...

In my early real estate days, I'd walk through a house for sale and point out all the defects to the seller (as if he didn't already know about them). We'd then engage in a sort of tango where I'd say, "It's a big problem that'll cost $5,000 to fix." And he'd say,...

We all have choices in life. We can spend our lives making a living or we can choose to make some real money. Unfortunately, most people choose to make a living. They don't take time and spend their lives walking over the dollars to get to the dimes. Most real estate...

If you're running short of money, maybe it's because you're not asking enough questions--especially when it comes to asking for discounts when you buy something. It's amazing what results you can get sometimes by simply asking a question. Let me explain what I mean by...

My 3-Star Program is an excellent way to encourage residents to stay with you a minimum of three years. You enroll tenants in a 3-Star Program at no charge. It's just like the local grocery stores where I am enrolled in each of their "special" programs. At one store...

[Editor's Note: Although John Beck limits his discussion to the State of California, contract law is fairly uniform among the 50 states, and this is fairly basic contract law.] I recently came across this question: I am in a conflict with a seller, and I have no...

Are you a burned out landlord like I am? Someone who is just plain sick and tired of dealing with tenants and rental properties? If so, let me share with you how we've been able to eliminate tenants, management, and maintenance, yet still get a check (actually two...

Here's the big question that confuses many: Can you have real estate investments in your IRA or Keogh? YES. You can. So that was easy, now what? The next question arises about leveraged real estate and how is it done. Yes. You can leverage real estate in a retirement...

A new law, effective on January 1, 1998, has definitely changed the opportunity for real estate investors to effect tax free income in the future. By now, everyone has heard of the Roth IRA. The Roth IRA is intended to stimulate savings among Americans in a new...

The headline is absolutely true! I made $20,000 cash in six months on one real estate deal with $100 down, no bank qualifying, no brokers, no risk and no liability. I have done (and I continue to do) many deals just like this one and so you can you! We've all seen...

Lease option deals can be excellent for profiting on rehab properties. Many "junker" properties can be bought cheap, but this requires cash. If you obtain a bank loan, you will be required to put more money down, especially if the property is in serious disrepair....

Probably the question I hear the most when I offer to finance the sale of mobile homes is, "Suppose they stop paying?" Hopefully, the following story will answer that question and explain what really happens in most cases. If your buyer pays as promised, you make a...

Many years ago, I made an important discovery: The most important thing we can do to improve our income, net worth, and our lifestyle is to do things today that will result in an income stream for several years into the future. When money is received in a lump sum,...

Remember, the key to successful real estate investing is motivated sellers. In How to Find the Motivated Sellers (Part 1), we discussed several ways to find motivated sellers. Let's continue. FSBO signs It is amazing how many people do not advertise their home for...

Motivated sellers are the key to all good real estate deals. Read this sentence again and impress it on your memory forever. Whenever you remember it, you will increase your potential profit, make better deals, put more cash in your pocket, and save valuable time. One...

With the wealth of information available to the average cat today, it becomes increasingly difficult to determine where you should start in this business. In fact, the more you study, the more confused you can become. It has happened to me, and I'm sure it has...

Still looking for properties? Not me. I've given up "looking for houses." Yes, I've just flat out kicked the habit and no longer have any interest whatsoever in that sort of thing. There's a better way to get those bargain properties into my hands, and it doesn't...

Fred was like most investors and entrepreneurs; he had no idea that mobile homes could be a good investment and a good money maker. What little he had heard about mobile homes wasn't very flattering. But he had read a book about how you could make money with them and...

How should I buy and sell real estate? What entity gives the best tax benefits? How can I limit my liability? These are common questions posed by both beginning and experienced real estate investors. Here are the answers to common questions about maximizing profit and...

The most important thing we can do to improve our income, net worth, and our lifestyle is to do things today that will result in additional income in the future. Indeed, fortunes are being made by those who recognize needs when they exist--and then go about finding...

Most rental residents treat their dwellings like renters, not home buyers. That's because rental residents "think" like they are renters, in almost all cases. I've found it is to the landlord's advantage if tenants think like future home buyers. Residents who think...

Answering machines, ugh. The worst part about calling sellers on the phone is that more often then not, there's nobody there to answer the darn thing and we're left dealing with their answering machines. Hmm... It occurred to me one day that I ought to figure out a...

It seems that our school system teaches everything except how to go out into the real world and survive. How many high school graduates do you know that can balance a check book, or understand anything about money and financing? Some can't do simple things like make...

Subordination and substitution of collateral are two fancy real estate techniques that can be used to raise huge sums of cash from real estate. In order to understand subordination and substitution, you must first understand the basics of mortgages. A mortgage (also...

On Tuesday, August 1, 1995, I took a group of investors to a monthly Bexar County (the San Antonio metropolitan area) tax sale to teach them how to research properties coming up for sale and to provide them with an opportunity to bid on and, hopefully, buy a property....

Let's start with the basics. The concept of a "Buyer's Briefcase" is to have the right forms necessary to "sign up" a transaction at your fingertips at all times. It's kinda like a salesman with his order pad. When someone wants to give you the order, you need to be...

It happens all the time. I'm driving down a road I haven't been on in months, turn the corner and BOOM. There it is--a vacant house. Hmmmmm....this could be interesting, but I'll need to do a little checking before getting my hopes up. My first stop is the tax...

How many times have you heard someone say, "It takes money to make money"? I've heard that saying all my life, and I still hear it today. And there was a time when I didn't know any better and believed that saying. Thankfully, I learned many years ago that you don't...

Why is it so hard for some people to ever get started investing and improving their financial position, while others can attend a seminar, read a book, or listen to a home study course and jump right in and do something? For some people, there is never a right time...

Why is it so hard for some people to ever get started investing and improving their financial position, while others can attend a seminar, read a book, or listen to a home study course and jump right in and do something? For some people, there is never a right time...

Real estate paper investors can obtain well-secured high yields by investing in tax lien certificates and their Texas and Georgia counterparts, deeds with a right of redemption. Interestingly, tax lien certificates are not only extraordinary paper investments, but...

Interest rate yields are up from last year--slightly. Last week Friday, August 8, 1997, Three-Month Treasury Bills were yielding 5.14%. One year ago, the yield was 5.00%. Six-Month Treasury Bills were yielding 5.21%; one year ago, 5.11%. Stretching it out, Ten-Year...