Anyways, all I can say, is man am I’m proud
to be a Texan, especially when the economy
is kicking butt like it is right now!

I just ran across a report on the Top U.S.
Cities for New Home Construction and Texas
had 4 cities in the Top 10…And Houston is
right at the top…Very Nice.

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But I guess some of you may be wandering
why I would care so much about new home
construction? Well, NO, Rent Ready is not
into building new homes, but this IS one
of the key indicators of a re-surging
flipping market.

When new construction is on the rise, it
typically indicates lending is loosening
up and the market is trending to support
people being able to actually buy these
homes after they are built. lol

Now for a bit of bad news: It’s hard to compete with new home construction.

It just is. Just think of the ‘new car smell’.
That is hard to compete with over a used car.
It’s not that totally remodeled flip houses won’t
sell, because they definitely will (if you rehab
them and price them right), but as more new homes
are built, it makes it more difficult as more
and more inventory comes onto the market.

So, Brant, what should I do about this?

Ok, have No Fear, I’m gonna help you out with this,
but WARNING: You have to be ready to take action.
The key here (in my opinion) is to act fast and
act NOW! You see, it’s going to take a while for
these builders to build all of these homes.

It can be a lengthy process for their entire
subdivision permit and ordinance process so it
gives us flippers a small ‘window of opportunity’
to ride the beginning of the wave of the economy
coming back…The key is to start now before the
market is saturated with new homes all over the
place and then you’re not only competing with new
home construction, you’re also be competing with
new home Financing. So that’s why the key is to
act fast.

Believe me, there are going to be some nice profits
made flipping houses in the next couple of years, but
I can tell you it will be the ones who take action
and don’t sit around on the sidelines.

The question is: Will you?

This reminds me of one of my favorite quotes:
“There are those who see and opportunity,
and there are those who seize opportunity”
Joanie Warren

*I should also mention for those of you in
other parts of the country where things
aren’t so booming right now. Well, always
remember the ‘ying and the yang’ thing, b/c
just because your market may still be down,
it doesn’t mean that you can’t be building
up your rental portfolio OR just use this
email as a reminder that you should do periodic
checks on some of these key indicators like
new home construction so you can be one of
the first in your area to time the market on
the beginning of its resurgence.

Here’s a link to that article I mentioned earlier:

The Top U.S. Cities for New Home Construction

Ok, so if you enjoyed the post, leave a comment
below, I appreciate your support,
Brant

For many of the ultra successful entrepreneurs, they’ve been able to achieve their success because they refused to let fear take over their decisions. Instead they view ‘failures’ as learning experiences and ways to go back and do it again, but even better the next time. During this video I share a quick lesson on expanding your comfort zone and breaking through to the next level.

During the video I mistakenly referenced Einstein for a quote, so I’d like to properly credit the author of the quote, it was Oliver Wendell Home who said “The mind, once expanded to the dimensions of larger ideas, never returns to its original size”.

Warren Buffett was interviewed by CNBC earlier this year and as a part of that interview, he talked about investing in single family homes.  He of course provides some great insight here, and for you on the fence who are still waiting to do your 1st deal or maybe you’ve been stagnant with your investing, you should definitely take the time to watch this video and start doing your own due diligence as to why/how real estate can help you out tremendously in the future if you take action Now.

You can watch it here:

*Take 2 seconds and leave your comments below…

My son has just started his 4th little league baseball season and since he’s been playing he’s developed a bad habit while batting. Almost 100% of the time, when he goes up to bat he’s almost certainly going to swing and miss at the first two pitches. Theres not a good explanation, I don’t know what it is, because he’s trying and he’s a very good hitter, but it’s like theres not enough pressure and he seems to just be going through the motions. But as soon as he gets that 2nd strike, his whole demeanor changes instantly. He gets a different look in his eye, his stance improves and he gets the laser beam focus going on, and then it’s almost guaranteed, he’s gonna get a hit.

It happened again this week, every time he was at bat. The last time he was at the plate, there were a couple of runners on the bases and his team had a 1 run lead, but of course they could use a few more runs on the board. So, as if it were ineveitable, it happened again. Strike 1. Strike 2. Then…(pause for effect), he entered his ‘Eye of Tiger’ mode and cranked one into center field and drove in both runs. It’s amazing what happens when we truly focus on the task at hand.

Now, I’m thinking more than a few of us can relate to this story. How many of you are just ‘going through the motions’ everyday? Or maybe you’re working on a goal, but you’re not really giving it your best?

I see it happening all the time, that is, until you lose your job, or a divorce or loss of a loved one leaves you unable to pay the bills, or some other life event causes you to really take action AND produce results. Because it’s different in life when there are 2 strikes against you. I’ve seen it alot when people are nearing retirement, or have a health issue arise that can be taken care of with diet and/or exercise, then they suddenly get real focused ON their retirement or health like never before!

Don’t wait until there are 2 strikes against you, instead, mentally prepare yourself to be ready to get that hit on the 1st swing.  Because sometimes when we do have 2 strikes against us, ~ we miss.

Live like there are 2 strikes against you…you will see amazing results

Brant

React Below!

It’s a beautiful Sunday morning so
I’ll keep it short.

I hope you can make time to watch
this video today  ===> Go Here

I know many of you have great credit
scores and access to financing, so
this won’t be for everyone and that’s
OK, but if you watch it and it makes
sense then put aside some time this
week to start working on cultivating
some private lender relationships
like Jim & I have done.

You’ll be amazed how easy it can be.

This really can take your investing
to an entirely new level like it has
done for us and many of our students.

~Brant

Watch this video today  ===> Go Here
PS:  I’m here to help, so when you
get started this week just shoot me
an email if you have any questions
on what steps to take to get started.

Although the tractor-driving vigilante landlord was sentenced to 180 days in jail, he served only two of them before his sentence was suspended. He still must pay more than $400 in fines and court costs. He claims that he tried to evict the tenants for 18 months; they claim that they had no idea he wanted them out or that he planned to bulldoze the property.
I’ve heard of landlords removing breakers from the electrical panel and even removing exterior doors claiming “I own those things so I have the right to take them”..Yea, I’m not sure that logic would hold up in court…lol.

Check out this article about evictions by Steve Crossland, a Realtor in Austin TX

What’s involved in evicting a tenant in Texas?
The following is an outline of the basic steps for eviction as I perform them. This is not legal advice, but an overview of the administrative steps and my personal experience. For legal advice, contact an attorney.

1) Make Sure You Have a Good Lease Agreement
It all starts with a proper lease agreement. A TAR (Texas Association of Realtors) or TAA (Texas Apartment Association) lease will properly protect your rights as a landlord and afford the necessary legal language. If you hire a Realtor to lease your property, you’ll have a TAR lease. You can join TAA as an individual, but many single-property owners find the dues to be high (though I’ve seen landlord boo-boos that would have paid 10 years TAA dues). Otherwise, have a good real estate attorney provide a lease for you if you are a do-it-yourself landlord. Why is this important?…

The worst lease I ever saw was an office supply store special that afforded the tenant a 30 day grace period to pay rent (because the owner filled “30″ days into that blank not knowing any better) followed by a 30 day “cure” clause (same thing, clueless owner filled in a blank with “30″).

This meant the tenant had to be 30 days late before a “demand to cure” (as the lease termed it) letter could be sent, then the demand letter had to give another 30 days to cure. After taking over that property from the owner, whom the “professional deadbeat” tenant was running circles around and was already more than two month’s behind in rent, I had to send the demand letter (which the owner had not done because she was afraid of conflict) and wait 30 days before sending a Notice to Vacate. It took another three weeks after that for the court date, and another 5 days which the court provides to appeal or vacate. Then the tenant finally vacated, leaving the home trashed with litter and junk furniture.

That owner lost a total of 4 month’s rent plus damages by the time it was said and done. How much do you think the owner “saved” by using that cheap office supply store lease and not seeking help from an attorney or a professional leasing agent? The owner also told ne that no credit report or eviction search or criminal background check was done on the tenant. “She seemed like a perfectly nice young lady” the owner told me. Deadbeat tenants are experts at seeming to be nice people, and they only seek rentals from do-it-yourself landlords who they know won’t check them out properly. But I’m drifting into another topic, tenant screening, so back to the eviction process …

2) Don’t delay taking action.
Every step in the eviction process must be preceded by another step. Dragging your feet or delaying any step sets you that much further behind in the following steps. Be diligent and don’t let the tenant slow you down with promises or stories.

Send the late notice immediately upon non-payment of rent. We mail late notices on the 4th of each month because the grace period ends on the 3rd. There is no reason to wait longer. Send it the very first day that rent is late. Not doing so is foolish and unprofessional. I’ve met and talked to many do-it-yourself landlords over the years who don’t treat their landlord activity as a profession. This is a mistake. Even if you own only one rental house, you are in the business of being a landlord. Act accordingly or it will cost you money.

3) Send the Notice to Vacate
If rent is not received immediately (within 5 days) after the late notice is mailed, send the Notice to Vacate for Non-Payment of Rent promptly, no later than the 10th of the month. Sticking to this time line is imperative. Don’t waiver, don’t listen to stories from the tenant about having the rent on the 15th, etc. This is how goodhearted landlords get led around by the nose by deadbeat tenants who tell good stories.

If the tenant contacts you wanting to work things out, let the tenant know that you hope an eviction can be avoided, but that the only thing that will stop the eviction process is full payment of the rent and late fees. Ask if they have family they can call for financial assistance, or if they have stuff they can pawn. Also, let them know that once you file with the JP Court, any further discussion will need to be in front of the Judge on the court date.

4) File the eviction at JP Court
File at JP Court immediately after the passage of the date given in the Notice to Vacate. Don’t delay or have further conversation with the tenant about it, just go do it.

Each JP Court has a set of written instructions they will provide, as well as a form to fill out. Follow those instructions exactly. You’ll need a copy of the Lease Agreement and the Notice to Vacate (some require two copies of each). Again, don’t delay. (Are you noticing a theme here with regard to timeliness of action?).

Once the eviction is filed, a constable will drive to the property to serve papers to the tenant. Once served, the tenant has 6 days to respond. If they respond, a court date is set fairly soon thereafter. If they don’t respond, you can contact the court to set a date for a “Default Judgment”, which grants you possession of the property plus unpaid rents.

5) Appear in Court
If your tenant shows up for the Court date, which often happens, that is the time and place to decide if their tenancy is salvageable. If they have cash or money order in hand, it’s best to see if you can work it out with them, but I do so only after we’re standing in front of the Judge and I receive a judgment in my favor.

What generally happens is that the tenant wants to tell a story to the Judge. Often this will include unflattering stories about the landlord, condition of the property, etc. Also there is usually a story or explanation about why they don’t have the rent, their car broke down, they lost a job, when they might have it, etc.

The Judge, however, will ask the tenant only two questions:
– Is your rent in fact unpaid?
– If so, do you have a legal reason for it being unpaid?

The “legal reason” never exists unless a landlord had neglected repairs and the tenant has issued proper notices, so I’m not going to explain that further. I’ve not once witnessed an eviction hearing where a tenant did have legal reason.

Once the Judge determines that the rent is unpaid, he will review the lease and the notices provided to the tenant. This is where it’s important to have a good lease and to have followed the notification steps properly. If all is in order, the judgment will be in favor of the landlord and the tenant will be told they have 5 days to appeal (which is really 5 days to move out). I’ve never had a tenant file an appeal because doing so requires payment of a bond equal to the unpaid rent. If they had the money for that, they could have paid the rent.

6) File a Writ of Possession
If, after the 5 days pass the tenant does not move out, you have to go back to JP Court and file a Writ of Possession. I’ve had to do this only 3 or 4 times in almost 20 years. But when needed, the Constable will set an appointment with you to come to the property while you have the tenant’s remaining possession set out on the street and have a locksmith rekey the locks. You’ll have to physically remove the stuff yourself or hire movers to do it for you.

That’s it. After all that, you have regained legal possession of your property. Fun stuff, huh? It can largely be avoided with careful tenant selection from the outset, but even good tenants go bad sometimes.

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What is your craziest eviction story?

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[1] http://realtormag.realtor.org/daily-news/2012/03/05/landlord-tries-evict-renters-bulldozing-them-out

[2] http://realestate.aol.com/blog/2012/03/01/landlord-wrecks-occupied-home-with-tractor-guilty-of-misdemeano/

[3] http://crosslandteam.com/blog/2008/03/29/tenant-eviction-in-texas/

I remember when I first began investing, I had a goal
to purchase 10 rental properties my first year.  Keep
in mind, at the time, my wife and I were still living
in an apartment and we were barely scraping by some
months just to make ends meet.  But it didn’t matter,
we were working towards a goal, so every time we’d get
another property closed, rehabbed and rented, we’d go
out to dinner.  It wasn’t much, but it was just a little
boost to keep us motivated and give us a chance to
reflect on the achievement, and more importantly,
discuss our plans moving forward.

And when I learned to flip houses, well, when we closed
a nice deal, let’s just say that we still went to
Dinner, but it was usually in Cancun! lol…

But it doesn’t have to be anything extravagant.  Just
setting out small goals that have a positive reward at
the end can give you that extra little boost to keep
looking for deals, making offers, raising private money
and striving towards your goals (and rewards).

When it comes to celebrating the successes, don’t over
think it and you don’t have to overdo it.  Just do
something you enjoy. Maybe go to a movie, or take the
kids out for ice cream.  It doesn’t always have to be
a vacation or getaway every time, remember, we’re
investing to get ahead financially, so I’m most
definitely not advocating you blow all your profits
before you can land your next deal!

I guess I should recommend keeping the reward in balance
with the achievement.  Let me offer some example formula’s
you may want to consider:

Offer Accepted = Pat on the back
Close , Rehab & Rent your 1st deal = Nice Dinner
Make $30k on a Flip = Weekend getaway
Make $50k+ on a Deal = Cancun baby!

I think it comes down to this, psychologically, if you
celebrate your wins, it gives you a little boost to go
the extra mile and reinforces good behavior at the same
time.  Instilling the mindset of incentivizing yourself
with a reward for the achievement of meaningful goals
can really keep you motivated AND more importantly, gives
you occasional opportunities to enjoy your success NOW
and not in 20 years from now.  Each success we experience
and each step we keep taking forward will keep us moving
closer and closer to our goals.

Whatever your goals are, be sure to pat yourself on the
back and reflect on what you did right, and stay focused
on repeating that positive behavior moving forward.
Believe me, if you hang around the investing business
long enough, you’re going to experience some lows and
losses on occasion, it’s inevitable, but the trick is
not to stay down very long and to get back up and chase
the ‘proverbial’ carrot, or whatever it is that will
keep you excited and moving forward.

You know, we all take an occassional peek
to look at tax records or Zillow to try to
figure out what a property is worth.

And we all know (especially in Texas) that
Tax Records (or Zillow) doesn’t even come
close to showing what a property is really
worth.

As a matter of fact, Zillow even admits that
in Texas, they have the LOWEST Accuracy Rating
(only 1 star) and should only be used as a
‘starting point’ to find a property’s true
value.

http://www.zillow.com/howto/DataCoverageZestimateAccuracy.htm

So, just keep that in mind next time your
finger starts typing in to look at Zillow
or Tax Records for your comps. Don’t Do it.

For me, the only thing I will use to determine
real value is recent Comps. Period.

*And if you don’t have access to the MLS and
getting accurate comps, I highly suggest you
begin to add some qualified realtors to your
team that can help you to pull comps on your
possible deals.
*But keep in mind, if you only abuse them
with comp requests and don’t occasionally
give them an actual deal, they will soon become
less responsive…then back to Zillow for you

Brant

Here are some changes you can make to instantly add some appeal and value without costing you big bucks and lots of time in the process:
1. Turn a extra room to a true HOME OFFICE.  We all know more and more people are working from home these days, so why not respond with what people need.  Possibly add some built in shelves and things to make it a true workspace.
2. Add Glass Fronts to a couple of cabinets. This is a very inexpensive touch of class to set your kitchen apart from your competition.

3. Turn a ‘plain white’ tub surround into an Upgraded Tub Surround by replacing 1 row of tile around to create a custom look..

4. Pendant Lighting…this can be very inexpensive depending on the layout of the kitchen/attic access.  And the material cost is very cheap, as little as $30 per light/cord.

5. Add some Slate to the front porch entrance.  If it’s not a huge area, this is very inexpensive (as little as $3 per sq ft) and many times, the front porch area is less than 20 sq ft. So think about it, not much money spent to create a great 1st impression.

Of course, I hope it goes without saying that these changes will only make an impact if you do the basics first: painting, flooring, general updating, but definitely keep these things in mind when you’re planning out your next flip project.

………………………………………………………………………………………………….
What changes do you like to make when sprucing up an investment property?
How about your own home?

I know, interest rates are at an all-time low and, as many are predicting that inflation is heading for the skies, many will agree that now is may not the time to pay off your mortgage.  But, in my opinion, that’s probably best advice for your primary residence (*That is, only if your wisely investing that additional money that would be going towards your mortgage and instead investing it and earning a higher rate of return, see http://missedfortune.com/)

Anyways, if you’re like me and believe that paying off your investment property mortgages is the best financial decision for you and your business, check out these tips to make sure that your money goes where you want it and does the best work possible on decimating your mortgage debt:

Look for Hidden Fees
You should know that if you don’t check with your lender first, your additional payment could go towards fees and NOT you principal paydown!  Some lenders charge some steep fees if you send in unscheduled payments (believe it or not!)

Track Your Payments
If you’re not paying the same amount every month, you need to make sure the additional monies you send every month is being applied toward your principal…

Annual Lump-Sum Payment
As we all know, Stuff happens.  So, may consider instead of paying off additional principal every month, to set that money aside and pay at the end of the year with one lump-sum payment. It doesn’t hurt to have that money in your reserves where you can get it for emergencies, just in case… BEWARE! Some lenders look at large, lump-sum payments to be subject to a prepayment penalty EVEN if you’re not paying off the mortgage in entirety.  So, just make sure…

So, what do you think?  Do you believe in keeping all the cash-flow you can, or pay off the mortgage and sacrifice a little of that extra cash every month?

Thank you for reading!

Your comments and questions are welcomed below.