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How Will the EPA’s Lead-Paint Rule Affect your Business?

Last month the EPA’s Lead Renovation, Repair and Painting rule governing the work of professional remodelers in homes where there is lead-based paint went to effect.   Those working in pre-1978 homes will need to be certified. Individuals are required to complete the application and will also need to complete a training course to be considered a “Certified Renovator." 

A host of organizations and private environmental companies offer the eight-hour, EPA-authorized certification course. You can find a list of authorized trainers at the EPA's Accredited Renovation Training Programs page.

Lead paint, which is now outlawed, poses a significant health hazard particularly to children and pregnant women. Lead poisoning is toxic to organs and tissues including the heart, intestines, kidneys and the reproductive and nervous systems, which can leading to permanent learning and behavioral disorders.

The training curriculum consists of an eight-hour class with two hours of hands-on training.  Check out the EPA’s link below for more details.

http://epa.gov/lead/pubs/renovation.htm#owners

How Online Scams Can Hurt Your Investment Business

If your business has an online presence, you may have been exposed to a website scam called “domain slamming.” As a real estate investor, you probably don’t have the time to research and determine if these emails and notices are legitimate.  But falling for these schemes can be costly and time consuming. We’ve investigated two such ploys to help you discover the truth behind the trap.

 

Domain Registry of America

Last month we received an official-looking letter, “Domain Name Expiration Notice” which looked exactly like a bill from a company called Domain Registry of America.  As a “courtesy”, they notify us that one of our domain names is set to expire in a few months.  They firmly advise us that we must renew NOW to retain exclusive rights. They ominously warn that not renewing may result in a loss of our online identity!  Naturally they offer their best savings when we switch our domain name to their company, which is triple the price of our current registrar, GoDaddy. 

So they mislead the consumer into thinking that it is a bill.  Many small business owners may have a friend or family member managing their computer related work because they are too busy RUNNING THE BUSINESS.  Or they simply don’t remember who their domains are registered with.  So this “bill” arrives and how many people simply pay it without researching first?  I bet quite a few.

 

 

Internet Trademark Scams

This other scam will be sent via email warning you that overseas companies are trying to register your domain with names ending in .cn, .com.cn or .asia.   Here is an example:

Dear Manager:

We are a Domain Name registration service company, which is a professional Internet Domain Name Registration and dispute resolution organization in China.  On January 31th, 2010, We received HAITONG Investment company's application that they are registering the name "WEBSITE NAME" as their Internet Keyword and "WEBSITE NAME.cn", "WEBSITE NAME.com.cn", "WEBSITE NAME.asia", "WEBSITE NAME.hk" domain names etc.  It is China and ASIA and HongKong domain names.  But after auditing we found the brand name been used by your company. As the domain name registrar in China, it is our duty to notice you, so I am sending you this Email to check. According to the principle in China, your company is the owner of the trademark. In our auditing time we can keep the domain names safe for you firstly, but our audit period is limited, if you object the third party application these domain names and need to protect the brand in china and Asia by yourself, please let the responsible officer contact us as soon as possible. Thank you!

Best regards,

John

Oversea marketing manager

Tel:+86(0)21 6296 2950

Fax:+86(0)21 6296 1557

web:www.ygnetwork.cn

These companies convince you to register Chinese and other Asian domain names, which is unnecessary unless you are doing business overseas.  The goal here is to force you to buy all those domain names at an inflated price.  This is spam and should be ignored.

If you ever receive anything regarding your domain name or hosting that you didn’t request or don’t understand, contact your provider and ask questions.  Many are taking it a step further and filing a complaint with the Federal Trade Commission.  You can use the online complaint form at http://www.ftc.gov/.

How to Grow Your Real Estate Investment Business with YouTube

We post videos on YouTube regularly to showcase our new wholesale and rehab properties.  It’s a great tool and offers investors a first glimpse of the entire property, warts and all.  But YouTube is not without its problems. Fortunately, it was just announced they are seeking feedback on site upgrades and design.   If you are an avid Youtube user like we are, don’t miss the opportunity to voice your thoughts directly to the source. And if you’re not using YouTube yet to advertise your properties to other investors – here’s how you can get started today:

1. Buy an inexpensive video camera.  We love the FlipMino
2. Create a YouTube account.  It's free and easy.
3. Film your video. You don’t need to be Martin Scorcese here. Keep it simple and within 3-8 minutes.
4. Upload onto YouTube.
5. Fill in the description and include a link to your website.
6. Email a link to the video to all your investor friends.

Do you use YouTube for work or fun?  Leave a comment about what you love or hate about YouTube.  And check out our latest video of a Woodbury three bedroom split level we just purchased last week.

 

 

Triplex for Sale in National Park

We reduced the price of our triplex at 5 North Grove in National Park.  This deal is a real money maker bringing in $1700/mo positive cash flow.  Each unit is separately metered and has its own heater and water heater.  The two 2 bedroom units are in rent ready condition. The 3 bedroom unit needs minor cosmetic work to rent.  Also needs a new roof.  Visit our website at http://www.sjideals.com for additional pictures or click here to view the video.  Call us directly at 856-979-3484 for lockbox information.

 

 

• Purchase Price: $125,900
• Rehab: $12,000
• Taxes: $6,666
• Rents: $1,100/900/900/mo.
• 20% down: $27,500
• Mortgage Amount: $110,400
• PIT - 30 yrs @ 6.25%: $1,200/mo.
• Positive cash flow: $ 1,700/mo.

How to Ensure Your Tenants Pay Rent on Time

I’ve been investing in real estate for over 20 years and I can safely say that I’ve seen and heard it all.  There was the renter who neglected to tell me her toilet was leaking for months until the $800 water bill arrived.  Or the 1:00am phone call from the panic stricken tenant complaining about the mouse terrorizing her home.   But one of the most important money-saving experiences I’ve had is learning how to manage those late paying tenants and the subsequent eviction process. 

First, you have to maintain detailed files on each of your properties so you can effectively track the rents and utilities coming in and going out.

Second, create a plan for handling when the rents are due and a process for following up when the rents are late.  And then enforce it.  For example, the rents on all 20+ of my properties are due on the first of the month.  If not received by the 5th, they get a phone call; if still no response by the 7th, they receive a letter.  By the 10th I start the eviction process.

This is the third and most important lesson: don’t make the common mistake of delaying the eviction process.  Starting early on is key.  You can always cancel the eviction but you can’t recover the time lost from waiting for that check to arrive in the mail.  It’s important to act quickly because it can take approximately six weeks to even schedule the court date.

Typically, one of two things occur when it’s your day in court.  Either the renter will not appear and you automatically win the case.  Or, you both show up and an arbitration hearing takes place with you, the tenant and the law clerk.  This is where you’ll cut a deal with the delinquent tenant, which is enforced and administered by the court.

This is never a pleasant process but it can be avoided by taking the time to put the right systems in place.  A few other helpful tips I wish I knew when I was a young investor:

• Make sure you provide a written policy to the tenant when they move in so there is no confusion. 
• You don’t need to hire an attorney to take a tenant to eviction court.  They’ll charge you anywhere from $500 to $1,000.  You can find all of the forms online and it costs about $50 to file the paperwork yourself.
• Another valuable resource that many landlords use is the tenant screening services. 
• Finally, as your investment portfolio grows, you may need to hire a dependable assistant to help manage this entire process. 

Next week we'll post the payment policy form we supply to new tenants.  Please leave a comment about your experience with eviction issues.

 

Experience is a good teacher, but she sends in terrific bills.

-Minna Antrim

The Right Way to Pre-Qualify Seller Leads

Hopefully you are using solid marketing techniques like online ads, bandit signs and letters or postcards to solicit motivated sellers.  But what happens when these homeowners get you on the phone?  Building a rapport with the prospective seller is of the utmost importance when screening leads.  These are real people with real problems and understanding the root of their phone call to you is crucial.

 

During the conversation you may be trying to work out the numbers in your head.  Obviously the numbers are important.  But always remember there’s a person behind those numbers.  Uncover the story and show some compassion.  This will help you determine the real situation as to why they are selling and also learn their level of motivation. 

 

I’ve found the most productive phone calls happen is when I really listen, don’t make them wait for answers and understand that every situation is different.  Attached is a Lead Form we use to help us gather information from prospects.  Feel free to download it and use it to pre-qualify your leads.  Leave a comment about your experiences working with sellers.

 

Download Lead Questionaire Sheet

Smart Real Estate Investing

Every good real estate deal represents thousands of dollars in potential wealth. Knowing about getting that wealth is the key to your success. Here's a quick joke to illustrate why you shouldn't believe everything you hear, even if it comes from a seemingly reliable source:

An elderly man stormed into his doctor’s office steaming mad.

 

“Doc, my new 22-year-old wife is expecting a baby. You performed my vasectomy 30 years ago, and I’m very upset right now.”

 

 “Let me tell you a story,” the doctor calmly replied.

 

 “A hunter once accidentally left the house with an umbrella instead of his rifle. Out of nowhere, a bear surprised him in the woods… so the hunter grabbed the umbrella, fired, and killed the bear.”

 

 “Impossible,” the old man said. “Someone else must have shot that bear.”

 

 “You got it,” the doctor replied.

 

There's an overwhelming number of systems, conferences, bootcamps and coaching programs available for investors.  So don’t be gullible!  Do your homework before making a sizeable investment in your real estate education.  Investing is not as easy as the experts claim.  Many so- called “gurus” prey on trusting novice investors who have cash to spend.  You too can be a successful investor if you work hard and stay focused.  Here are 5 steps you can take TODAY to build momentum in your investment business:

 

1. Go to a few investing seminars, but only a few.

2. Join a local REI club and get out there and NETWORK!
3. Get a mentor.

4. Identify your target market.
5. Put a marketing plan together.

 

Leave a comment about your experience with real estate education programs.  And don't forget to enter your email address above to subscribe to our blog.  You'll get all the latest news, tips and industry information on real estate investing.

 

Cherry Hill Major Rehab Part 3

Have you been following our Major Rehab Video Series?  If not, you're missing the complete overhaul of a Cherry Hill, NJ investment propery we purchased at the beginning of the summer.  Catch part one here and part two here.  The big reveal is coming soon, so stay tuned....

How to Cherry Pick Great Deals from Your Desk

The most successful investors sit in their desk chairs and "cherry pick" the very best deals from the very best leads that called them. They didn't chase after deals, they don't call agents, they don't call on FSBO signs – they relax, in full control knowing that their phone will ring several times each week with a great deal – worth $10,000 to $25,000 to them. How do they do it?  It's the secret "M" word that everyone says "oh yeah, I've heard of that", but rarely do investors do it well. The M word is: Marketing. Marketing. And more Marketing.

 

There are 3 simple key components to making your phone, or your answering service's phone ring with great deals. Every week.

1. Multi-prong approach. Diversify and have lots of small marketing techniques or campaigns going at once. For example, send out direct mail postcards, and do some bandit road signs, and do some doorknob flyers, a few small billboards, some Bankruptcy or pre-foreclosure leads and a newspaper ad. Do at least 2 or more of the above, so that when one technique slows down another is still bringing 'home the bacon'.

2. Have a lead script & formulas, so you can make a 'rough offer' right over the phone. You'll need a short script of questions to ask your incoming caller/sellers to figure out the details of their house & life situation. You'll also need some cheat sheet so you can make a quick guestimate of repairs and plug it into a proven formula to generate an approximate or rough offer—right over the phone. If the seller says 'yes or maybe', then go visit the house to firm it up and get the contract! If she says 'no', then try to overcome any objections OR move on to the next lead call – no time wasted on your part anymore, chasing bad leads all over town!

3. Repeat. Repeat. Repeat. Continue to implement your Step #1 stuff – repeatedly. Do your direct mail, flyers, signs, again and again and again. In the same areas.. Research has shown that it takes the average consumer 5 impressions, or viewing of your marketing before they start to feel as if they know you and trust you. That's when they'll call you with a slam-dunk deal, already pre-disposed to doing business with YOU!

Implement those 3 steps above and we guarantee you you'll have hot leads flowing right into your phone and you can make offers right back over the phone, so that you can cherry pick BIG money makers while you sit at your desk. This is how we bought dozens of houses without running ourselves crazy, and still having time for our family, friends, relaxing, vacations, etc. You can too!

Cherry Hill Rehab Project Part 2

Here is the second part in our Major Rehab series.  You can see the progress made in just a few short weeks...