Des Moines, Iowa -- The most beautiful city in the World?

Two Rivers REIA Hosts members of David Lindahl Team - Sept 6, 2008 - 8:00AM

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Wed, 02 Jul 2008 21:01:19 -0500

The Two Rivers REIA of Central Iowa, LLC will be hosting a speaker, or a couple of speakers, from the David Lindahl team.

David Lindahl is a RE Mentor extraordinaire and he offers many workshops and programs that get to the heart of what RE investors need to know about flipping/rehabbing houses (for Cash NOW!), building a serious income stream through multi-family income property ownership (for Cash Monthly!), how to hire subcontractors, etc.

I'll have more details soon, but if you are within a couple hours drive of Des Moines, we're going to try to make your drive and time worthwhile! Drop me a note mailto:andrewl@remax.net if you have any questions! Be sure to save the date ... now! September will be here before you know it! (Bummer).

Two Rivers REIA of Central IA -- "Field Rehabber's Workshop" - Aug 2, 2008 8:00 AM

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Wed, 02 Jul 2008 20:31:23 -0500

Start the day out right! The Two Rivers REIA of Central Iowa, LLC will offer a "Field Rehabber's Workshop" to develop a Scope of Work Proposal for a selected property to be rehabbed, and to develop a hypothetical bid amount. This will be in a timed, contest format.

We'll meet at 900 Des Moines St, Des Moines, as usual, for some preliminary discussion, handouts of materials, a review of the rules for the contest, and then to break into teams. I hope each team will have at least three members. Last time we did this, we had six teams of three with a couple of groups that had four. This time, we might have 10 teams, I just don't know.

I'm thinking we'll have one group of "Mastermind Mentor"-types who will compile a standard for the other groups to try to "match to sample". I need to put together a better framework for the event between now and then, but if you have any good ideas, shoot them to me!

I'm thinking there will be some prizes for individuals in the winning group, and in the "Mastermind Mentor" group, and it won't just be a cup of Java at Zanzibars -- it will be something nice.

Building, Location, Demographics in RE Investing

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Fri, 20 Jun 2008 10:02:47 -0500

If there is one thing that we must constantly beat into our brains when making decisions about real estate investments, either for ourselves or our clients, it is this principle.

It's not only about the numbers, although these do have to be right; it's about building, location and demographics.

What condition is the building in? This information can easily be obtained by a thorough property inspection. I cannot emphasis enough how important getting a third party -- someone like my go-to-guy, Jamie Stoulil with National Property Inspections; someone who is independent -- to thoroughly inspect the building and its current condition.

Location is critical. Not that the property has to be in the so-called "best" location. To the contrary, what it has to be is a building that is in a location that you the investor, or prospective homeowner, really understands. You take some time to understand the advantages and disadvantages. Location can cure a world of sins, but not all. If that were true, millions of retail businesses would not fail every year, and 10's of thousands of foreclosures on the market today would not be happening. A property right in the center of an old city might be a better investment than one right next to the latest mall -- it's just that one must take the time to understand how the location is impacting value.

And finally demographics. This is not about discrimination; this is about the direction of the income for those living in the neighborhood. If the building is in an area of declining incomes, would it be worth more in five years, or less? If the building is a multi-family residential property in an area where most tenants have to pay their own heat, but for this property, the landlord pays the heat could this be a major competitive advantage to attract tenants to your new building? What is the rate of population growth or business improvements in the surrounding area? Places like Loopnet.com offer extensive demographic information on buildings, as will the local county assessor's map of recently sold properties in the area. If there have been a lot of recent sales, what does that mean? We need to take some time to understand the demographics.

So, it's the numbers, then building, location, and demographics. This is what makes for a sound real estate investment, be it for an owner-occupant or an investor. Shirk your due diligence responsibilities on any of these and prepare to accept less than an optimal return on your investment.

On becoming highly "referable"

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Fri, 20 Jun 2008 09:32:43 -0500

I hear an awful lot of emphasis placed on the value of building a By Referral Only business. And it is indeed a laudable goal.

Yet the emphasis is often on developing a system which will cause others to want to refer their friends, relatives and neighbors to you. In other words, to create a "By Referral Only" business, we're often trying to develop a system that will change someone else's behavior.

Let me ask you, "How effective have we ever been at actually changing someone else's behavior?". If you've tried that, as Dr. Phil would say, "How is that working for you?". For some, not all that well.

I have a different proposal.

What if we spent more time thinking about becoming that someone to whom people would automatically love to refer their friends, relatives and neighbors? In other words, to becoming tops in our respective fields.

Not that these other programs are ineffective -- many are worth the price of admission and more -- yet when we fall back into the same old rut after taking the latest, greatest whiz-bang "I'll turn you into a Real Estate (or Mortgage Lender, or Propery Inspector, etc.) Money-Making Machine" program, maybe what we are avoiding is making the changes in our own lives which would really make us "referable". (More on this in another blog entry).

I'm finding that the best teacher is often already within us. With help and guidance from people like Leo Weidner in his "Achieving the Balance" system, coupled with our years of life experiences (and the number of years isn't all that important because experience is often over-rated by old people who nod wisely and speak stupidly) we'll figure it out.

Now don't get me wrong, I have spent thousands on self-help programs and many have been very helpful. Yet what I'm talking about is, what if you've taken all of those courses yet you're still fighting daily to stay afloat, to build your business so it can one day create a "walk-away income" stream?

After all, isn't that what most of us are striving for -- to create a "walk-away income" -- one that will keep on paying dividends long after we're no longer fervently working the business?

So, for me, one of the major changes that has been working real well is to look at my process flow controls, to work toward refining those systems and to establish my personal "Life Creed" so that I am living my life in balance.

To look at areas of my business, and life, and finding ways to make a 1/2% improvement here, and a 1/2% improvement there -- with an overriding goal of becoming highly referable. If we are continually refining our processes so we can become the absolute best we can be, we are well on our way to living a fulfilling life. Not the best there is, not the richest there is, just the best that I can be.

The more I focus on making the appropriate changes within, the easier my chosen career becomes. This is an example of a "Life Creed" statement that will become a self-fulfiling prophecy, if we ask God to really work on our hearts and heads.

I love working with people to help them reach their goals, and people love working with me. Because I continually strive to be the best I can be, I make it easy for them to reach their RE investment or home-ownership goals and my clients make it easy for me to reach mine.

This affirmation is not "other" oriented -- I don't have to force someone else to change their behavior -- I keep my focus on my changing my own behavior. This allows each of us to be genuine in our relationship. I think people respect someone who isn't trying to manipulate their behavior.

Think of something you could do today that would make you more referable -- to make it so that people really love doing business with you -- then make the change!

The three critical elements of the Weidner "Achieving the Balance" System

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Fri, 20 Jun 2008 08:50:08 -0500

While I have seen a lot of benefit from the many courses one can take regarding improving our sales performance, yet I often find that within 90 days, I fall back into my old patterns and ruts with only minor benefits accruing because of my investment.

Accept with the "Achieving the Balance" system and the "Dynamics of Personal Leadership" program I took from Success Motivation Institute back in 1978. These programs are life changing programs, because they get us to break old bad habits and replace them with new good habits.

The three essential elements of the "Achieving the Balance" system are:

Writing and recording your own Life Creed
Journaling daily, or at least frequently,
Employing "the Byte" to break bad habits

Now, I wish I could say that breaking bad habits is easily accomplished; you just pull out your magic wand, wave it around yourself, and presto-chango, we're cured of whatever is holding us back from the success we desire. To the contrary; just because the process helps a person identify what is holding one back that does not guarantee that the habit can be broken. However, the system addresses this issue better than any program I have ever taken.

Now, I've got to do some journaling ... and I'll come back later to see if anyone else is familiar with this system.

Achieving the Balance - by Leo Weidner & Mark Kastleman

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Fri, 20 Jun 2008 08:41:41 -0500

I think this book, and the process advocated, may be the best program for self-improvement that I have ever seen.

I'd like to see if there are any others on Active Rain who are familiar with the book and the concepts of using a "Life Creed Statement" to direct your life.

Two Rivers REIA to tour Habitat for Humanity "Re-Store" July 12th, 8:00AM

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Thu, 12 Jun 2008 15:09:50 -0500

We'll meet there (2341 2nd Ave) then Beth Gibbins, ReStore Outreach Coordinator, will give us the low down on how to save money and find building materials to solve problems!

The selection has improved dramatically over the years. I think investors may be surprised by what the recycling-oriented ReStore has to offer.

For more info on the Two Rivers REIA (Real Estate Investor's Association) of Central Iowa, LLC, check out http://TwoRiversREIA.org

I'm not a religious fanatic, but Proverbs 1 speaks to me ...

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Thu, 12 Jun 2008 14:30:53 -0500

... I am a Christian, but I don't qualify as a fanatic.

Now and then, however, I do take some time to read the Bible, as most believers would do.

Somedays, the words just jump off the page into my contiousness -- the "mind" part of the mind/brain - and really mean something. Other times, not so much.

This morning, Proverbs 1-3 seemed to really speak to me. I'll post Proverbs 1 for any who have the time to read. Notice how in verse 20, Wisdom is referenced in the feminine "she". I think it's interesing how the qualities that would make one wise are being referred to as being feminine. I'd love to have people's perspective on why they think that is. I have my own hypothesis, but would be interested in any one elses.

1 The proverbs of Solomon the son of David, king of Israel:
2 To know wisdom and instruction,
To discern the sayings of understanding,
3 To receive instruction in wise behavior,
Righteousness, justice and equity;
4 To give prudence to the naive,
To the youth knowledge and discretion,
5 A wise man will hear and increase in learning,
And a man of understanding will acquire wise counsel,
6 To understand a proverb and a figure,
The words of the wise and their riddles.
7 The fear of the LORD is the beginning of knowledge;
Fools despise wisdom and instruction.

The Enticement of Sinners

8 Hear, my son, your father's instruction
And do not forsake your mother's teaching;
9 Indeed, they are a graceful wreath to your head
And ornaments about your neck.
10 My son, if sinners entice you,
Do not consent.
11 If they say, "Come with us,
Let us lie in wait for blood,
Let us ambush the innocent without cause;
12 Let us swallow them alive like Sheol,
Even whole, as those who go down to the pit;
13 We will find all kinds of precious wealth,
We will fill our houses with spoil;
14 Throw in your lot with us,
We shall all have one purse,"
15 My son, do not walk in the way with them.
Keep your feet from their path,
16 For their feet run to evil
And they hasten to shed blood.
17 Indeed, it is useless to spread the baited net
In the sight of any bird;
18 But they lie in wait for their own blood;
They ambush their own lives.
19 So are the ways of everyone who gains by violence;
It takes away the life of its possessors.

Wisdom Warns

20 Wisdom shouts in the street,
She lifts her voice in the square;
21 At the head of the noisy streets she cries out;
At the entrance of the gates in the city she utters her sayings:
22 "How long, O naive ones, will you love being simple-minded?
And scoffers delight themselves in scoffing
And fools hate knowledge?
23 "Turn to my reproof,
Behold, I will pour out my spirit on you;
I will make my words known to you.
24 "Because I called and you refused,
I stretched out my hand and no one paid attention;
25 And you neglected all my counsel
And did not want my reproof;
26 I will also laugh at your calamity;
I will mock when your dread comes,
27 When your dread comes like a storm
And your calamity comes like a whirlwind,
When distress and anguish come upon you.
28 "Then they will call on me, but I will not answer;
They will seek me diligently but they will not find me,
29 Because they hated knowledge
And did not choose the fear of the LORD.
30 "They would not accept my counsel,
They spurned all my reproof.
31 "So they shall eat of the fruit of their own way
And be satiated with their own devices.
32 "For the waywardness of the naive will kill them,
And the complacency of fools will destroy them.
33 "But he who listens to me shall live securely
And will be at ease from the dread of evil."

-----------------

Now I'm not for lots of judging of others -- I think that while Jesus may be the Way, the Truth, and the Life, there may be others in other major faith systems who also have keys to the kingdom. That's NOT why I posted this.

The reason I posted it is, no matter whether you ARE or ARE NOT a Christian, there is a LOT of good basic business benefit that will accrue to someone who has at the basis of their business practices the integrity that is recommended in Proverbs.

What does this have to do with Real Estate? Nothing, directly, but everything indirectly. More on that another time.

Sometimes, the best advice is ... free! (Of interest to RE investors)

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Mon, 21 Apr 2008 13:29:38 -0500

While I was poking around over at REIclub.com, checking out some of the free articles and audios, I came across an absolutely dynamite article about hiring contractors. This is particularly of interest for investors who flip, rehab or will eventually need to hire a contractor.

How many of us know what a joy it is to work with a good contractor? And vice-a-versa, how many know what a nightmare it can be to work with a bad one.

I like his statement that he hires "trades people" -- these are not just folks who work out of the back of their pick-em-up truck but have no integrity. Sometimes, those people do have integrity, but it's very rare!

No, what David Lindahl recommends is that one hire trades people with a commitment to their profession. But, I don't need to steal his thunder. Here is a link to his article, "How to Prevent Yourself from Getting ... " ( think we're supposed to fill in the blank with words like "screwed, bamboozled, hoodwinked, taken to the cleaners", etc.

This is just one of MANY resources available from the REICLUB.com website. And it's just one of the many reasons to attend your local REIA group meetings, like mine which is the Two Rivers REIA of Central Iowa.

Enjoy!

Andrew Lietzow, MBA - REALTOR

Two Rivers REIA hosts Michael Wrenn - Wrenn Insurance Companies - April 16th, 6:00PM

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Tue, 08 Apr 2008 16:52:13 -0500

Two Rivers Real Estate Investors Association (REIA) of Central Iowa will host R. Michael Wrenn, President and CEO of Wrenn Insurance Companies of Mission, Kansas.

Renovator's Insurance is a subsidiary and this company specializes in offering insurance for ... you guessed it! Renovators!

If you're a real estate investor in rehabs or flips, a general contractor or a subcontractor who works on flips, you might find this presentation informative.

Here is a quote from their website; "To the best of our knowledge, our program and how it is managed is unique within the insurance industry. Today we provide insurance for over 3,500 properties monthly..."

Hope to see you there!

Andrew Lietzow, MBA -

TRREIA, LLC - Manager

I want you to be my listing agent -- oh, and please lie to me.

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Tue, 08 Apr 2008 15:07:33 -0500

In very few other industries do we find this phenomenon.

When we ask a doctor for a medical opinion, we want the truth. Perhaps we're having some symptoms that disturb us, so we set an appointment to let our medical practitioner have a look. While we may not like the prognosis, or we may question it, our options are simple -- we listen and try to adjust to the prescription and treatment regimen, or we can seek a second opinion. But we never want them to lie to us even though it's our own body -- we want the truth, and the sooner the better. If they don't know, we want them to tell us -- but by all means, don't make something up just to placate us! Heaven forbid -- that's borderline malpractice, isn't it?

The same is true about seeking legal advice. If we have a small claims issue to which our attorney says, "you'll pay more in legal fees than the case is worth, and the probability of your getting adequate restitution is very limited. Just forget it and move on", we don't want them to instead tell us, "Oh, this looks like an easy case. You're clearly in the right and they are in the wrong. Let me get started on this to see if we can win a big settlement". We'd all much rather have the truth, if we trust our attorney. And if we don't trust them, why are we using them?

I'm running a number of other industries through my mind but I can't think of a single one where people really expect the professional practitioner to lie to them, or to soft peddle their advice. It just doesn't happen, except in real estate. (Can you picture the car lot where the owner of this old clunker says, "how much for my trade?", and the owner says, "Are you wanting me to give you money or are you wanting to pay me to take it off your hands?"). With resale houses, they really can be the pits and people still think they are market ready! It's bizarre!

So when we're working with most professionals, we want the truth, except with Real Estate. Here, it just seems that a lot of folks want us to soft peddle the answers; particularly, for sellers of their own residences but often for investors, too.

Why this is true probably has a lot more to do with psychology than I care to think about, but suffice it to say, people have a vested, emotional interest in their homes and their rehab projects. And, when we're on the listing appointment, part of the skill of a trained professional is to convey some facts, as well as our personal opinion, but to come away with the listing!

And at no time is our skill level in professional Real Estate sales tested through "trial by fire" than when we're having an economic slow down. That's when the industry weeds out the part-timers and the non-professionals (I'm hoping to find I'm not in that group! :^), and here is the reason why -- there really is only so much business to go around. Contrary to popular belief, there is not an infiinite number of houses that will sell this year, but fortunately for us, the market is huge.

In fact, the market potential within a larger metro market is virtually unlimited!

But what, you ask, does this have to do with, "I want you to be my listing agent -- oh, and please lie to me. ".

Case in point. Last weekend, I went to an open house. I don't personally have the listing, but the agent who does is well-respected agent in the industry -- a veteran, but the house has been sitting on the market for nearly a year!

It has many redeeming features but one of them is not it's condition, at least not at the market price they are expecting it to bring.

Let me get specific:

It's a 90-year old home, and in 90-year old homes in Des Moines, the basements are made of tile, or a hardened clay- or concrete-based brick. That's about it for foundation materials of that vintage. Often, these basements are treated with a concrete mortar-based "slurry" -- nothing real scientific about during it right but professional application methods are beyond the scope of this little article (IOW, I don't know how it's done but it does look better than the old tile and can look good for decades, when properly applied).

With older foundations that have not been slurry coated, there is often lots of effloursecence in the mortar joints. It's because the foundation is not water tight, and this telegraphs to the new buyer, "I am a maintenance intensive home!!! Don't buy me! Don't buy me!" So unless there is a large discount off the retail price, or a shortage of housing stock, this house will be on the market longer than a Ford Taurus with a crumpled fender at the used car lot -- all the while costing the current owners a mortgage payment, or at least the property taxes.

Here is what a good source says about efflourescence on mortar joints.

----- Efflorescence (skip to next "-----" if you're not interested in the detail)

Efflorescence is a crystalline deposit of water-soluble salts on the surface of masonry. Although efflorescence is unsightly and a nuisance to remove, it is not harmful to the brick masonry nor does it affect the structural integrity of the masonry. For efflorescence to occur, a number of conditions are necessary; there must be a source of water into the masonry, there must be soluble salts within the masonry, and there must be a path for the water to get to the surface of the masonry and evaporate.

Efflorescence occurs only occasionally and it is difficult to predict when it will occur. However, efflorescence is generally associated with wet and cold weather, and the early life of the building.

The source of the salts may be from either the brick or the cement and/or lime in the mortar.

Building Bloom: In new construction, efflorescence is referred to as "new building bloom," and the source of the water is the moisture within the building material during the construction period. Once the building is completed and the building components dry out to the ambient humidity level, no further efflorescence should be expected.

The removal of efflorescence is relatively easy. Efflorescence salts are water soluble and generally will disappear of their own accord with normal weathering. This is particularly true of "new building bloom." If more immediate removal is required, efflorescence salts can be removed by dry brushing or with clear water and a stiff brush. Refer to Cleaning Procedure "Plain Water Cleaning" above.

It is advisable to allow the brickwork to dry out completely before attempting to remove efflorescence. In extreme cases of efflorescence, a thin layer of poultice can be applied to the masonry surface after cleaning. This will draw the salts out beyond the brick surface.

Note: Power washing is not recommended as this process will drive additional water into the masonry and result in further efflorescence.

Note: If efflorescence occurs repeatedly, it is an indication of excess moisture in the brickwork. The source of this moisture must be identified and eliminated to reduce further problems.

Lime Weeping or "Bleed": This is a rare phenomenon. Unlike normal efflorescence, which is deposited as a thin surface layer, lime weeping builds up to form a thick encrustation in a localized area. It usually occurs at joints, cracks or base wall flashing level. Lime weeping is more difficult to remove. Contact Canada Brick for advice in removing lime weeping.

------

So all of this is just to say, why hasn't this experienced agent said, "you have to fix this or your house is not going to sell". Or, if the agent has said this, over the course of a year, why hasn't this been resolved?

Two reasons.

1) Unmotivated seller, i.e. the agent informed the seller, "You'll have to fix this or your house won't sell, at least not at a full-market price like what you're asking", or more likely,

2) The seller knows the agent fairly well and the agent thinks the seller needs them to "lie" to them, otherwise they won't get the listing. The seller wants to hear, "oh, you have a lovely home here", from the agent and many times they did have a lovely home, when their furniture was in it hiding all the imperfections, but now that the cover is all gone, the needed maintenance sticks out like a sore thumb.

So they want us to lie to them and tell them, "this house will sell ..." ("when pigs fly", which we mutter under our breath), and we hope the buyer's agent bales us out by blindfolding the buyer as they walk them through the basement.

Just who is kidding whom?

But you say, "I can't tell the seller everything or I won't get the listing!" This is 100% correct. They're not ready to listen to the real truth during the first listing appointment. Trust me, I know. I've reduced one gal to tears being a little too honest (she thought I was being brutally honest, and 10 months later, this house is still not sold -- it may never sell! -- at least not at the price they are expecting. People don't pay for other people's headaches.

Anyhow, we can't tell them the facts, just yet. We can hint at the facts ("We'll be monitoring buyer feedback all along and if we don't get an offer in the first 3 wweeks, I'll be getting feedback from agents, if we've had showings, and we'll see what the objections are". Hogwash! We don't have the time and that is a disservice to our sellers! So, we're in a conundrum -- damned if we do and damned if we don't.

How to cure this dilemma -- Don't tell the seller everything before you take the listing, unless you know the clients better than most agents do on the first appointment.

I've discovered that if you tell them everything you know, there is a high probability you won't get the listing!

What we want to do is set up an agent tour afterwards, and have the other agents tell the sellers' through your agent tour feedback forms (you do have those, don't you?) and then you'll look real smart but you personally won't be the barer of bad tidings. You'll still look like an expert, and their "friend".

So that was a long story, but the point is, our industry is very different. In my opinion, this skill is one of the more difficult to master. I think women do this a LOT better than men, and women relate to other women (who tend to be the decorators in the home) which is why they have a competitive advantage over men in this industry. Women are sensitive enough not to offend another woman. We guys tend to be clutzes on this stuff.

If you're a woman, however, don't let this go to your head. We're onto you gals and we'll make up for this advantage. How? Because we actually know not only how to say "efflourescence" many of us know how to cure it!

It's a man thing...

Two Rivers REIA hosts Chad Molde - Summit Construction & Development April 5, 2008 - 8:00AM

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Wed, 26 Mar 2008 14:56:55 -0500

We will meet at 900 Des Moines Street, as usual, and then quickly head out to the "field workshop" property, in Ankeny. If you live in Ankeny, let me know and we might save you the trip to Des Moines. I want folks to meet at the AAI offices because I'll have handouts ready for each team.

The Two Rivers REIA offers presentations on a variety of topics of interest to RE investorsm, through education, networking and mentoring.

Check out the Two Rivers REIA website for more details but meetings are open to guests for a nominal fee of $10, or $20 to join for a quarter (6 meetings in the winter season, 3 in the summer). Look for more meeting info at the Two Rivers REIA website.

April 5th Session is day number two on this effort and Chad Molde will be addressing the group on a specific property, providing his rational for what he is doing to the place, why, and whatever else he wants to discuss.

To learn more about Chad Molde, check out his website -- WeBuyIowaHomes.com Hope to see you there Saturday, April 5th!

Two Rivers REIA hosts Ken Tharp - Iowa Equity Exchange, Wed., March 19, 2008 - 6:00PM

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Thu, 13 Mar 2008 15:57:22 -0500

The Two Rivers REIA offers presentations on a variety of topics of interest to RE investors. This coming Wednesday, March 19th, we'll be meeting for networking, education, and mentoring and we'll be offering a timely presentation from Ken Tharp, of Iowa Equity Exchange.

We have been focusing on issues facing Flippers (the quick rehab variety) and we've recently started a contest for developing a "scope of work" (SOW) proposal on a flip candidate property. It's like going to a workshop, where we have six teams formed and each team's goal is to come up with a plan to rehab a property as though we were going to be applying for a loan (with nothing down) to a private money lender. But we won't be working on this for Wednesday's meeting. Instead, we'll be primarily listening to Ken tell us how to save tax dollars with the transfer of RE investment properties.

To learn more about Ken and Iowa Equity Exchange, check out his website. Hope to see you next Wednesday!

Point 2 Agent dot com or other Internet Marketing vs. "Service for Life(tm)"

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Fri, 29 Feb 2008 13:25:24 -0600

The world seems to be brimming with RE marketing gimmicks, many web-based, and all vying for mindshare of Realtors. Unfortunately, there are only 24 hours in a day and therein lies the rub -- what to spend our time on!

My mind, unfortunately, likes to do other things than just hammer on a computer all day unless I know in advance there is some hope of a benefit down the road, some long term payoff for my investment of time.

My mind is already full of bull -- overflowing, in fact -- and I don't need to implement more technology just for the sake of saying I know something. My goal is to get the technology to serve me, not for me to serve the technology!

With that said, I find myself doing a bit of a pull back from such sites as "Point 2 Agent", or even Realtor.com, though I always worry about missing out on something that should be a no-brainer.

Active Rain is one I would NOT want to miss out on. There has been some payoff, and I expect down the road, there will be more. But what about sites like Point2Agent.com, Homes.com, Reply.com, Homegain.com. A

Am I pulling back from these bells and whistles marketing gimmicks too soon. There are just so many of them, and my business plan calls for focus, not a short gun approach. There is only so much time in a day, and I have found that for 100 Internet leads, I'd rather have one good referral.

That's why I like my "Service for Life" newsletter, but do ya think I get it published and mailed, consistently?

Anyone else struggling with this High-touch vs. High-tech dilemma?

Looking for caravan/agent tour software

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Tue, 29 Jan 2008 11:34:03 -0600

Several of us in our company are wanting to find a software system that provides a database for agent tour or caravan scheduling. We need to be able to enter data from a browser that includes the MLS number, address, some description of the property, etc. complete with a date and time that the home will be open for inspection.

I have learned that our MLXchange system supposedly offers something like this but I wanted to see if any RE agents/brokers on AR know of such a software system.

I'd really like to have something that is an open system, like MySQL or similar, but don't want to have to reinvent the wheel if there is something available at a nominal fee.

If anyone has something, please let me know! Andrew L.

Two Rivers REIA hosts Attorney - Kristine Corcoran Frye - Dec 1, 2007 - 8:00AM

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Fri, 23 Nov 2007 21:22:04 -0600

Check out Two Rivers REIA for more a map to the location, and more info.

The Two Rivers REIA meets on the 1st Saturday and 3rd Wednesday of each month. We are an affiliate of the National Real Estate Investors Association, offering programs for a wide variety of RE investors.

Kristine Corcoran Frye is an Attorney-at-Law, specializing in corporate and RE law. If you're an investor located in or near Central Iowa, come join us for an informative presentation plus a Q&A time afterwards.

See website for more info including membership fees and guests charges.

Hope to see you there!

Andrew Lietzow, MBA

Founder

Two Rivers REIA hosts Blue Moon Capital Webinar - Wed., Oct 17th - 6:00PM

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Sat, 13 Oct 2007 09:02:04 -0500

The Two Rivers REIA offers presentations on a variety of topics of interest to RE investors. This coming Wednesday, Oct 17th, we'll be meeting for networking, education, and mentoring but we'll be offering a different kind of a presentation, from Blue Moon Capital.

Check out the Two Rivers REIA website for more details but meeting are open to guests for a nominal fee of $10, or $20 to join for a quarter (6 meetings in the winter season, 3 in the summer).

We have been focusing on issues facing Flippers (the quick rehab variety) and we're winding down on this by offering a presentation from a company that does flips on a grand scale, in several major metro areas around the country.

Anyone have any experiences to share about Blue Moon Capital, or companies like them?

John Sweeney, CPA - Senior Tax Manager, LWBJ - Speaks at Two Rivers REIA

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Sat, 13 Oct 2007 08:56:08 -0500

The Real Estate Investor Association, Two Rivers REIA of Central Iowa, hosted John Sweeney for a presentation to our REIA meeting on Oct. 6th, at 8:00-10:00AM.

Sweeny offered tips and insight into tax issues that specifically affect RE investors for buy & hold, flips, 1031 issues, with emphasis on cost segregation. But as we all know, just knowing how to do something, while important, is not enough. We have to DO it in order to really learn. When it comes to taxes, however, it's plan to see that hiring an expert does really cost, it pays.

On that note, I'd better scoot to prepare some more tax details to my tax preparation company, having made an active decision to farm this wonderful activity out. This leaves me more time to focus on the details of Real Estate sales, listings, and investments, and on growing the Two Rivers REIA to help investors to realize their goals.

The Two Rivers REIA meets the 1st Saturday and 3rd Wednesday of each month.

Shane Sauer, Flatirons Financial - to speak Aug. 4th, 2007 at Two Rivers REIA of Central IA

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Tue, 24 Jul 2007 12:27:37 -0500

"Real Estate Investing in Physically Distressed Properties" - As President of Flatirons Financial (Kansas City) and as a Professional, Civil Engineer with many years of construction experience, Shane and his associates will help us continue our indepth look at investing in REO's, foreclosures and distressed properties. Focus will be on developing the construction narrative and developing a detailed plan for project success.

The Two Rivers REIA of Central Iowa exists to promote education, networking, and mentoring for Real Estate investors with all levels of experience. As an affiliate of the National REIA, the Two Rivers REIA is dedicated to helping investors steer clear of pitfalls and roadblocks so the experience in investing can be a more enjoyable adventure.

Note that Flatirons Financial is a Vendor Sponsor of the National REIA. For further information, contact Andrew Lietzow through this email link info@TwoRiversREIA.org.

The operating agreement for a TIC offering

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Mon, 09 Jul 2007 20:22:34 -0500

I'm looking for prototypes for an operating agreement for a RE TIC. I know there have to be some out there in the Real Estate world. Anyone know of any other books beside Gene Trowbridge'?

The primary need is to have buy/sell provisions, a mandatory sale on irreconcilable differences clause, and provisions for what constitutes grounds for termination of the current property management company, but I'm sure there are a whole lot of other requirements.

Sources?

Restrictive Covenants against Tenants in Townhomes, condos, co-ops, etc.

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Sun, 08 Jul 2007 18:02:54 -0500

We had a co-op apt down the street that sat on the market for over a year, at what seemed like a give away price. Unfortunately, it was in a very old, three story building and you have to walk up to the third floor! Yikes! That was a tough one to sell even at the seemingly bargain basement price.

They also have a restrictive convenant about not allowing owners to lease out their property and this was a deal killer. Would have sold in a month, were it not for that clause. Unfortunately, the poor owners were med students, bought the place thinking it made good business sense to invest in a home for the four years of med school; they couldn't even sell the place to a small business that wanted to have an art studio there -- not to have a retail store, but just to have a place to work. Seems much too restrictive to me.

Craziness and all in the name of "protecting" values? If these units would allow investors to purchase, the units would get some much needed repairs, and they would actually go up in value! Of course, these provisions are there because tenants can be very rough on a property. It's a real delicate matter yet it does seem a bit extreme to restrict from leasing completely.

Maybe Homeowner's Associations could have some rule like no more than 25% of units could be leased at any one time?

Building your BNI Referral Chapter - How I recruit new members.

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Sun, 08 Jul 2007 17:44:51 -0500

I was invited to a chapter's "Visitor's Day" in late 2006. It was quite a drive to this chapter's meeting location, so I vasilated as to whether I should join this chapter. There had been 4 Realtors at the meeting that day, so my being hesitant cost me the slot -- someone jumped in ahead of me. That same day, I made the decision that I'd try to start a chapter, closer to my home. (After consulting with God, and the Exec Director for our State, I felt like I had the "GA" signal).

I knew of a few others business people whom I thought might be interested, and I followed up with other visitors whom I had met on that visitor's day. I wanted to see if they were going to join this other chapter (the longer distance one) or whether they might like to be in one a little closer. Both efforts quickly netted two interested parties, but only our original P&C fellow panned out (so he and I blazed the trail). We met a couple of times and stared across the table at each other. Not too exciting but you have to start somewhere!

Being the bright fellows we were, we knew that wasn't going to bring us much business, so I kicked it into high gear to continue to invite people. Fortunately, our Executive Director had the name of someone who wanted to join - a CFA, and he quickly joined. Then I got busy and found an accountant and a lawyer. (As a Realtor, you probably want to find people who you know you can work with and are friendly to you and your business. This is one of the reasons, IMO, that Realtors make good founding members - they already know a lot of different business people). Within a couple of months, we got to our core of 6.

Then, we had our Kick-Off meeting. Everyone worked hard to build their list to 20 to invite. Something like 100-120 letters were sent. I think we had 15-20 show up, and 6 or 7 of those joined -- it was a very satisfying effort and our members felt rewarded for their effort, but better still -- the new members had found an energized Chapter to join! We had pushed our numbers up to 13, and we've added a couple since then, so we're currently at 15. Not bad for our first 6 months effort.

We'll have a visitors day in late September, to try build to 25 members by the end of September, yet we continue to invite guests all the time. Would that we could just add one or two a month -- so we could have time to get to know each other -- yet we've made a decision that building it slowly and painfully is not the way to go.

One hint; the primary founder - the one with the burning desire to start a Chapter - must commit to being the primary recruiter. You cannot add a couple and then expect everyone else to do the work. No, you have to set goals for yourself (my current one is that the next person we add will be a Florist!), and then set your sights on finding that person. I call, then go out to the businesses, hand the owner/manager an invitation card, and try to meet them one on one. I want to invite a couple in the industry, but I think the face-to-face meeting is critical. People have to know that you're committed, and enthusiastic. Maybe there are other ways to get it done, but that's how I work it.

We hope to finish our first full year with 30 members. I'm 100% committed to reaching that goal. Might cost me some real estate business this year, but in the long run, I know it will pay off.

Hope this helps anyone who is planning to start a new BNI Chapter. Your mileage may vary, but that's how our group has gotten rolling. And now, we're large enough that others have some of the burn to invite members, too! Very exciting for this ol' boy to see that happening!

It's a Whole New Business - Gene Trowbridge -- book review

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Sat, 07 Jul 2007 21:28:23 -0500

For those interested in group sponsorships of RE TIC's, or even securitized TIC's, this seems to be the current definitive text on the subject. A little spendy at $295, but most likely worth it. I'm only half way through but I know I'm going to get a lot of bang for investment.

It's certainly making me think through some of the conflicts of interest issues for a REALTOR who wants to create a TIC offering on listings and then to place the offering with investors, one of whom might be yourself. I'm still plowing through it and I'll provide an update when I am finished.

What's the best software for Property Management?

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Sat, 07 Jul 2007 20:39:46 -0500

I've evaluated Tenant Pro v7 and I'm very impressed. Looks to be very good for residential investment property, and might even be appropriate for commercial, yet I wasn't evaluating with that in mind.

Before I spring for a live copy -- $395 for base level, supporting up to 25 tenants, plus the mandatory $200 for an annual contract, and possibly add-ons of Video Training ($300) and accounting Integration($150), totaling $1045 -- I thought I'd ask what others are using.

I need something that will provide accounting reports for multiple owners of a single property (as in Partnerships or TIC's) and I'm fairly certain that Tenant Pro 7 will provide those capabilities, while integrating nicely with Quickbooks.

Any thoughts?

Two Rivers REIA (a Central Iowa Real Estate Investors Association) Grows!

Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts) — Wed, 04 Jul 2007 09:57:13 -0500

Founded in October of 2006, the Two Rivers REIA is dedicated to helping RE investors navigate through the trecherous waters of Real Estate investment and to emerge a winner. We've held approximately 15 meetings. For many of those, we have featured a speaker who sheds light on various aspects of RE investing.

For Des Moines Real Estate Investors, all of Central Iowa and Northern Missouri, these meetings are both affordable and valuable. Our current membership includes seasoned investors, investor wannabees, short-salers, wholesalers, flippers, mortgage professionals, and other housing industry related professionals.

Whether your goal is to get the best deal you can get on the buy side, to optimize the cash flow during the holding period, or to maximize the return on your investment as you exit, networking with liked-minded investors can help you to more quickly reach your goals.

Check out the site then, visit a meeting!