Des Moines, Iowa -- RE Investor heaven?

Two Rivers REIA to host IA Lead Safety - March 22, 2011 - 6-8:30P - UGCC

Sat, 19 Mar 2011 15:08:41 -0700

Two Rivers REIA (Real Estate Investors Association) of Central Iowa holds its regularly scheduled meetings on the 4th Tuesday of each month, at the Urbandale Golf and Country Club. This month, our featured speaker is Jamie Papian, Lead Instructor with Iowa Lead Safety, to help our members and guests to better understand the requirements for renovations in Iowa, following the inception of new laws in April 2010.

Jamie is both the LBP certification instructor and a contractor, so he is not only knowledgeable of the text and testing requirements, but he's field savvy as well.

There is still much confusion in the rehab and construction industry regarding who needs to be certified, or at what point a Lead Certified Renovator or Certified Contractor needs to be involved in a renovation project. We expect that Mr. Papian will clarify and inform, thus putting much of this confusion behind us.

Please see the website and Calendar at Two Rivers REIA for more information.

Andrew Lietzow, MBA, CRS, GRI

Executive Director

Two Rivers REIA of Central Iowa, LLC

(Licensed to Sell Real Estate in Iowa w/CENTURY 21 Signature Real Estate)

Two Rivers REIA - 2nd Annual Convention - Mike Butler & Shaun McCloskey - March 12 & 13

Sun, 28 Feb 2010 06:39:50 -0800

Announcing our Two Rivers REIA "Anti-Gloom & Doom Convention", for 2010, being held March 12-13, 2010, at Connxions in Urbandale, Iowa on Friday, and the Marriott Hotel, Jordon Creek Parkway, West Des Moines, Iowa on Saturday. Mike Butler will be training on how to make deals - without Banks! - and Shaun McCloskey will be training on the intracacies of the Short Sale biz, with emphasis on training both investors and Realtors.

Check out the convention pages at the Two Rivers REIA website for all the latest info. Our headlining speakers/trainers are Mike Butler and Shaun McCloskey. The advanced training sessions start Friday.

I've made a video which tells a lot more about the event, and you'll find it here. If you are an investor in Iowa, Missouri, Kansas, Nebraska, Illinois, or Minnesota, you want to be there! It's going to be one of the outstanding events in Iowa for Real Estate Investors in 2010. 2010 is going to be a GREAT year for Real Estate investors, but only if you get the training, or have the knowledge, to make deals!

Mortgage Loan U/W requests THIRD appraisal for New FHA Loan - is this legal?

Mon, 17 Aug 2009 20:21:24 -0700

I'm having some trouble with this one, and wondering if this request for a THIRD appraisal may be illegal.

Scenario. I represent the Seller, who I sold this REO property to a few months back, as an investment property. Client is a full-time contractor/investor who likes to by, bust his tail and checkbook for a few weeks and does a masterful job at turning a sow's ear into a silk purse.

The house sold in two days from the date of listing. It sold for more than 100% over the most recent purchase price (what my client paid).

So, we have two FHA issues:

!) Seasoning - the offer and closing cannot occur prior to 91 days from the last transfer date.

2) The purchase price requires to appraisals, because it's less than 180 days since the purchase and the sale price exceeds 100% increase in value.

Today, the lender notified the Buyer's agent that the property would be subjected to another appraisal, #3.

Here are my problems with this:

First off, right away, I told the Buyer's agent that though my seller had agreed to pay up to $4,000 for the Buyer's CC's, this is not a usual and customary fee, and they should expect that someone else will need to pick up the tab on this $350 charge because it won't be my seller.

Second, they expect an extention of another day, without any compensation.

But third, and this is the part that I'm most concerned about -- this request for another appraisal; it's not required, supposedly, by FHA, so why is this transaction being singled out for discrimination, or at least exceptional scrutiny? What are they going to do, keep sending out appraisers until they get one that gives them the number they want to hear?

Has anyone had this experience lately? I did get the Buyer's LO to agree to foot the bill for the 3rd appraisal, but I'm curious to see if anyone else has run into this lately. Seems like it could be illegal, unless it's uniformly applied to ALL loan applications with purchases that meet this unique scenario.

Basic skills, for living life more fully

Fri, 03 Jul 2009 09:41:47 -0700

Here are some focus points which I use on myself whenever I need more discipline in my life (nearly all the time!).

I'll start with the premise that Marshall Sylver is 100% correct when he says, "we'll either have discipline or regrets, so we must master discipline". To accomplish big goals, we must convert them to plans. Here are just a few of the ways to discipline oneself, in business and life, given in the first person as positive affirmations.

1) I work hard to get my technology working.

As an abstract random person, I have more trouble with this because I am a cornucopia of exciting, fresh ideas. I am constantly seeking out new ways to work more efficiently and effectively. Unfortunately, this means that if I purchase a new gizmo to help me to do something better, I have to have the discipline to actually implement the tools I've invested in, or the company has invested in. We abstract randoms need the support of concrete sequentials, though we have lots of trouble understanding each other, so I have to force myself to finish what I've started to gain the efficiencies I

2) I like to use a vision/dream board to help me clarify what I really want. Again, Marshall Sylver recommends to not create goals, but to create plans. Plans are more concrete, and thus more motivational. Knowing why, what, and how are prerequisite to actually doing something, if we are to perform the task effectively and efficiently.

3) I let go of MWA's (minimum wage activites). I allow others the privilege of serving me with tasks that are not necessary for me to personally accomplish. I reduce my stress level by allowing others the to accomplish some of their goals, which includes helping others (i.e., me!) . When I let others do these jobs, I often find they are better at it than I, and this makes us both happy! I accomplish more when I let go of MWA's!

4) I've learned the six levels of deligation, and I am clear with those to whom I have deligated responsibilites. When I chose to deligate any authority, accountability, or responsibilities, I make sure we communicate well requiring expectations, so no one is disappointed. Sometimes, parents and even grandparents mess this up when they ask a child to do something then don't follow through with their expectations. That's a presciption for disasterous results in child rearing, and it is magnified in the work place. I accomplish much more when I make sure I'm clear with expectations and deligation.

5) Always be grateful and respectful of others. Be thankful for the clerk working the drive-up window at the fast food restraurant; and when they do a good job, I say, "thank you for being good at what you do" (and being thankful to God that they have a job, and that God has allowed me to have a different one!).

6) Be respectful of the earth. When you see liter in front of your path, stop and pick up a few pieces and be thankful to the God-given beauty that you're helping to restore. If you're a smoker, don't use the earth as your ashtray.

7) And, if you're a REALTOR, always give more in service than you receive in compensation. Don't just satisfy your clients, amaze them. Whenever possible, go the extra mile and you're never regret it. The referrals will just pour in to you and in a few years, you'll have a very solid client base which is continually growing simply because of how you've mastered the basic skills of good business.

Why Larry Goins is our Kickoff Speaker for Two Rivers REIA' 1st Annual Convention

Fri, 10 Apr 2009 16:45:39 -0700

Today's laskluster economy offers many significant opportunities for those who are willing to learn new ways -- new adaptions of old methods to a totally new set of problems. Larry Goins is just the man to bring that home to us at our 1st Annual Conference of the Two Rivers REIA of Central Iowa - May 9th, 2009 -- 8:00 AM - 4:30 PM.

As an example, I was speaking with a Realtor yesterday who was down in the dumps. Bumbed out about business being down and seriously considering leaving the business. Unfortunately, when I told her that my business was actually booming, that I was taking new listings left and right and have figured out a system that helps with short sales, I imagine that wasn't what she was expecting to hear. I felt bad for her, yet when she said she thought they were complicated, it made me wonder how much time does today's Realtor need to spend in training, in order to keep their "axe" of knowledge sharp.

At our Two Rivers REIA meetings, every two weeks we focus on a topic, network about general topics, and constantly work to add value through education about ways to do deals. Savvy investors know that to stay on top, they can't allow their knowledge base to fall too far behind the competition. In fact, life is just a whole lot better for those who choose to be proactive in their acquisition of knowledge.

Which brings to why we chose Larry Goins to be our Kick-Off speaker for our Convention. Larry is at the top of his game. He continually keeps up with technology, the challenging aspects of real estate investing he has learned to turn into opportunities; he runs three businesses, and finds time to be a good husband and a great dad.

I met him on the National REIA annual cruise and made a decision I should try to bring him to Des Moines. He was worried the venue was to small but we're busy trying to prove him wrong -- Des Moines DOES have savvy RE investors, and many who want to get better, to learn new techniques and stay on top of their game.

And in today's fast-paced, global economy, it's world its critical that Realtors and LO's frequently update their knowledge base, to meet the changing demands of an ever-evolving client base who desperately need the services of a business savvy real estate consultant.

If you're anywhere near Des Moines, spending the morning listening to Larry Goins on May 9th may be exactly what the doctor ordered to get your RE sales or investing efforts to bear fruit. Check it out here.

Larry Goins & Pete Youngs to speak at Two Rivers REIA of Central IA - May 9th

Sat, 04 Apr 2009 18:13:34 -0700

The Two Rivers REIA of Central Iowa, LLC is pleased to announce our 1st Annual Conference, to be held at the Holiday Inn, Airport Conference Center, on May 9th, 2009. Tickets can be picked up that morning at 8:00AM, and can be purchased at the door, although there are early registration discounts available at our Conference Registration page.

Larry Goins is a highly sought after speaker because of his unique methods in playing a winning game in Real Estate wholesaling, his background in rehabbing and mortgage finance, and because he is full of energy and wit. Those who attend his presentation will not be disappointed.

Pete Youngs is also making a name for himself through his detail oriented approach to teaching what he calls "Rehab 101". What he offers is not a lot of hype but a method of in-the-trenches cost analysis for what the Scope of Work will cost on rehab projects, both large and small.

Included in the conference is a luncheon and a bus tour which we're calling our "Ugle Ducklings" tour. There are only 47 seats on the bus so if you want to learn first hand from a pro, you'll want to register early!

Of course, the best part of the conference may just be the people you will meet who are fellow investors or investor wannabes from all over Central Iowa and beyond. We fully expect people will drive hours to see our conference because we're making it very affordable compared to having to fly to some boring location, like Las Vegas or Orlando. Instead, we're bringing the experts right here to beautiful Des Moines!

Hope to see you there!

Cathy Nelson - Red Maple Mgmt - to speak at Two Rivers REIA of Central IA

Sat, 04 Apr 2009 17:50:17 -0700

On Wednesday, April 15th, Cathy Nelson with Red Maple Property Management will be doing a presentation on the in's and out's of rental property management, or something along those lines for the Two Rivers REIA of Central Iowa.

Her presentation will be of particular interest to those who want to own property in Des Moines, Iowa (a very solid market right now), but who do not live here. Absentee landlords can enjoy the benefits of Real Estate ownership, without the headaches of landlording if, and only if, they have a good property manager to oversee the property for them. I'm sure this is a lot easier said than done.

Join us, at 900 Des Moines St., Des Moines, for our latest Wednesday night meeting of the season prior to our summer break. We will resume Wednesday night meetings again on September 19th, the third Wednesday of the month.

Success goes to the clear, decisive thinker in our TARP-dominated world

Sun, 29 Mar 2009 12:41:46 -0700

The first third of the last century was the "age of big business" -- the age of capital, conglomerates, monopolies, and steel trusts. In the US, many of the gigantic mansions, which we experience more often today as publicly owned museums, not privately-held personal residences, were built by industrialists who used the power of creative thinking and inventions to lead us out of the agrarian age, into the industrial age.

The second third (+) of the century was the "age of big labor" -- all the way from the great depression, through WWII, through putting a man on the moon, on into the quagmire that resulted from the Carter-Reagan exercise in contrasting approaches to excesses in governance. For over four decades, the middle class grew at an astoundingly fast pace, the US economy and the rise in GDP seemingly unstoppable. Indeed, there was a massive shift of wealth away from the steel magnates and industrial monopolies into the hands and networth statements of the common man; In the Clinton-era, it seemed nearly every citizen would be afforded the luxury of personal home-ownership, almost by right.

Yet, this period led to a time of great extremes; shortages in the supply of all kinds of raw materials - petrochemicals, agri-chemicals and fertilizers, copper, gold, water -- shortages of nearly every kind; in 1998, we had moratoriums on new developments unless they were all electric because of shortages in natural gas. This led to the Carter-Reagan era and to the deepest recession since the Great Depression. The last third of a century, then, saw the pendulum swing dramatically back toward capitalism; back to "capital" dominating "labor"; back to tax cuts for the wealthiest, hoping the crumbs from the table would trickle-down to the masses.

The debacle and excess of Carter-Reagan lead to the greatest losses of investment capital and tangible wealth since the great depression. And following 25 years of this, we saw instututions which had prospered for decades upon decades -- Lehman Brothers, Goldman Sachs, Washington Mutual, Merrill Lynch, etc. -- declare bankruptcy or be quickly sold to a supposedly strong suitor.

At the heart of it was the excessive greed of man. Not the self-preservationist, innately attractive greed factor which is in our being and causes us to seek a healthy increase; no, that is not the greed I'm referring to. This is the excessive greed that believes an $80,000 Hummer is a good little metro car, for mom to run to Starbucks and pick up a Latte.

The greed evident in Enron, a company which nearly cornered the electrical supply in California, bilking governments, consumers and their employees out of millions, and millions.

The end of that era came in 2006, with a shift of political sentiment back to a concern for the masses -- not so much for labor, and certainly not very much for capital. No, what happened in 2006, and in 2008, was an abrupt stopping of the pendulum such that the age of the consumer has passionately been embraced.

Some folks think of Governments as only bad. Certainly, excesses in Governments can be bad, yet it is the great stabilizer, which seeks to balance the interests of capital and labor, yielding a balance which benefits the majority, we consumers.

Now, with the recent 2008 election, we have ushered in the age of the consumer. The Bernie Madoff's of the world are being carted off to jail, the board meetings, stakeholder meetings; cabinet meetings that seemingly had to be held in secret will be exposed to more light. The complete exposure of how our Federal Government spends our money needs to become totally transparent. As a result, we'll see a renewed focus that government exists to benefit the vast majority of its citizenry, not merely the wealthy and the well-connected.

The question remains, however, how will Real Estate investors, be they owner-occupants or investors take advantage of this economic climate in a modern-day, TARP-centric world?

I propose that we'll do it by getting back to the basics. That 1st-time homebuyers will once again purchase ragged, old, fixer-uppers and REO's, planning to build sweat equity into this very first purchase; to engineer into their family's future a firm financial footing for their second home, their third, and ultimately for their retirement.

Banks will revert to their tried and proven mantra; "If you really needed money, why did you come here? We only loan money to people who don't really need the money". Or, they will again require a clear business plan or an adequate financial footing (FICO - 650+) for any would be home-owners; offering evidence they understand markets go down just as easily as they go up. Reserves for emergencies will once again be the norm.

In the end, what will transpire is the greatest shift of personal wealth to those who are clear, purposeful, decisive thinkers, since the great depression. Those who made loans on a whim, hoping to make exorbitant returns on the backs of the poor -- and taking risks that far exceeded the usual standards of any prudent business person -- will take their lumps, lick their wounds, and get back to the basics.

Those who speculated on wishes and hopes will either quickly correct course or see their wishes and hopes turn into deeds-in-lieu, or outright foreclosures.

If you live within a few hours of Des Moines, I invite you to a meeting of our Two Rivers REIA of Central Iowa, of which I am the founder. If not, then I recommend you visit a local REIA chapter meeting near you. The National REIA offers links to the 200+ chapters around the nation, here.

The seeds of success lie in the details of the "how-to" and in the "doing of a thing, in the certain way". Those who use the power of thoughts to control their actions govern those who refuse to apply adequate discipline to prevent regret.

3701 SW 4th, Des Moines, Iowa - South Side of Des Moines

Sat, 14 Mar 2009 19:16:40 -0700

Craftsmen-style, enclosed porch -- Some TLC and you've got a lovely home! Priced Accordingly!

3-BR, 1 Full Bath, Hardwood floors, 1,009 TSFLA. Quiet neighborhood of SW Des Moines - $62,500!

Needs work but there is lots of potential here. Would look totally different if the NFC $10,000 grant is put to work helping to bring this property up to its full potential. Should be worth 80-95K, rehabbed.

Call to get inside and see the potential!

108 E. Kentucky Ave, Indianola, IA - 50125

Sat, 14 Mar 2009 19:09:25 -0700

Spacioius 2-Story with a park-like yard! Comfortable living in Indianola!

5-BR, 1.5 Bath, 2-Fireplaces w/2-Car Attached Garage -- all on a park-like lot in Indianola - $180,000

Solidly constructed, this spacious 1,664 TSFLA 2-story offers 5-BRs, 1 Full bath with double-vanity, and 1/2 bath off the kitchen. Kitchen totally remodeled. Sliders to a large patio and extensive back yard. Has been a great home for children. Beautiful hardwood floors, two fireplaces and lots of room in the Lower Level for a rec room or informal family area (informally finished).

Call for more info!

3416 Twana Drive, Des Moines, IA, 50310

Sat, 14 Mar 2009 19:01:24 -0700

NW Des Moines is home to this solid, Reed Davisson Resale Ranch - Huge Garage!

3BR, 1.75 Baths, 1394 TSFLA (944 up, 450 down). Wood burning stove in LL. - $117,000

Built in 1958, could use some TLC and priced accordingly. Large wrap-around deck, nice over-sized garage and lots of room in the LL for a rec or family room. Could easily have a 4th BR down, with the addition of an egress window. Hardwood floors.

Give me a shout if you want to get inside. Owner says, SELL!

2119 NW 159th St, #34 - Clive, IA 50325

Sat, 14 Mar 2009 18:35:18 -0700

Modern-Style Condominium in Clive, Iowa - Waukee schools -- Come home to peace and quiet!

2 BR's, 2 Full Baths, Large Master w/generous, walk-in closet. Laundry in MstrBR bath area. -- $87,900!

Absolutely ready to move into. Trendy colors and freshly-painted walls. While this homeowner's association does not typically allow pets, if you have a pet that you need as a companion animal, please do not hesitate to consider this home -- we can get them to make an exception, if the case is warranted. (See HUD regulations on discriminatory practices).

Give me a call if you'd like to get inside for viewing, or click on this link for a virtual tour!

Andrew Lietzow and Sean Crow, Listing Agents

RE/MAX Real Estate Concepts - Des Moines, IA

Polk County, Iowa - Assessor's Comments for Revaluations - by Jim Maloney (for 2007!)

Thu, 12 Mar 2009 11:25:19 -0700

(This message is posted, in its entirety, on the Website of the Polk County Assessor, which can be found here). Please note, this is for 2007!!! The new notice was not yet posted, as of March 12, 2009. I'll add it here just as soon as it is available -- probably around April 1, 2009.

Iowa, and Polk County in particular, have not experienced the decline in housing values anywhere near as dramatically as many other parts of the country. While sluggish, the local economy is going though a period of correction in values, not a depression (of course, tell that to the guy who just lost his job and is losing his house to foreclosure. To him, we're definitely in a depression). Anyhow, here is the article from our very talented Polk County Assessor, who spoke recently at one of our Two Rivers REIA of Central Iowa meetings, along with LaRayne Riccadonna.

--------- Here is Jim Maloney's Message ------ Stay tuned for updates Around April 1! --------

Iowa has a biennial assessment system, and wholesale changes are normally made only in the odd number years. This is another one of those years.

For all properties except agricultural, we are required to assess property as of January 1st at its fair market value. The rolls mailed out on April 12th represent our best efforts to do that. The number and amount of increases this year surely surprise a lot of people. The press accounts of the falling real estate values across the nation have many believing the residential market has gone completely south.

It has trended down in Polk County, but only in the last five months of 2006, and only about 3% according to our statistical studies. And, since we set new assessments every two years, we have to look at the over all trends for the two year period which includes 2005 as well as 2006. And the net increase in residential values for that two year period is up about 6.9%.

Average per acre agricultural assessments went up but about 23%. Agricultural assessments are based a five year rolling average of crop prices and yields according to a formula mandated by state law. We had to drop a couple years when prices and yields weren't so good and added two more that were much better. Average values of farm land in 2007 will still be below what they were in 2003.

There is also a message from Rod Hervey, ICA, explaining our approach to commercial assessments , and Randy Ripperger, CAE, ICA explaining our valuation model for residential assessments . Also, there is a discussion by Jim Willet, RES, ICA, of the results of the 2007 Residential Revaluation .

We also have a number of other very talented and dedicated individuals that I am privileged to work with in this office. I think we can be justly proud of the work we have done and the efforts we've made to make the information we use in our assessment process available to the public. We also recognize that our models and the data available are not perfect, and expect we always learn more as we go through the protest period with the Board of Review.

We invite those who wish to check out their assessments on the internet. This year we are including a protest form with the assessment roll. After doing the research those who believe their assessment is incorrect should file a protest, but we want to discourage filing unless there is some reasonable basis to support it. Just because one thinks their taxes are too high isn't enough, by itself, to justify filing a protest. Frivolous protests will clog up our system and take time and attention away from those that really need it.

Those who do not have internet access are welcome to come to this office for assistance. We will do our best to be helpful.

Written by Jim Maloney, Polk County, Iowa - Assessor

The short sale phenomena and ... are you ready for the fight?

Thu, 12 Mar 2009 08:23:49 -0700

Kinzie - great blog entry! I'm glad I stumbled across your post! (Entry can be found here - http://activerain.com/blogsview/978465/Short-Sale-Discussion)

I am both a licensed Real Estate Agent, and an investor. I've been working short sales with others who were the investor, as the LA, but only recently made the decision to get involved in the process as the investor -- i.e. helping the homeowner to avoid the foreclosure by making an offer to purchase the home, and by seeking a new buyer who will purchase the home long before the foreclosure takes place.

One of the common traits of a pre-foreclosure client is they will be in denial for a goodly portion of the time they are falling behind in payments. Rather than taking charge and dealing with the problem head on, they just continue to deny that it's really happening, to them! OMG! There is a reason the house is going into foreclosure and they have to admit that they are a variable in the equation.

You quoted a statistic -- the 10% success rate -- which may or may not still be accurate, I don't know. Here's another I've heard recently which is surprising -- 50% of homeowners whose house goes to sheriff's sale, have NEVER contacted their lender directly during the entire process, not even once!

Nor have they contacted a consumer credit counseling agency, or an attorney. Many don't even contact their lawyer to "file a delay of sale" because of the hardship the foreclosure will cause them. It's ludicrous, but those are the signs of a borrower in denial.

Here's another. When I present my paperwork I use in the process to the homeowner, which shows them clearly how the process is going to work, they often say, "I want to run this by my attorney". I used to say, "no problem, that's fine". In the future, I'm going to try to really ferret out what their issue is with the paperwork -- their "objection" to simply sitting down and reading the docs themselves -- because once they contact their attorney they discover the attorney is nearly as confused about the process as they are!

The attorney I had on the phone yesterday didn't even know what a BPO is. How are these "legal eagles" really supposed to help them when they often don't understand the basics?

Here are a couple critical basics they often don't understand: 1) that you have to have an offer in hand before you can ever petition the lender to compromise the debt, 2) that one of the investors goals is to keep more liens off the house while the potential transaction moves forward, 3) and three, any investor who starts this process will definitely try to get a complete settlement of the debt, if at all possible, completely eliminating fears of any deficiency judgments. How one structures a deal to prevent these things can be a little complicated, to both the homeowner and the attorney they respect, whom they insist needs to approve everything they do all of a sudden.

I'm going to start asking them, "Well, did you have your attorney present, or even ask them to review your mortgage, prior to your signing on the dotted line?". Now that they are 3 months behind on payments, suddenly their attorney is called in to save them?

Working short sales is not for whimps. I've been beating that through my thick skull for nearly a year now, and thank God, I think some of that truth is finally starting to sink in.

That's why I believe 90-98% of Realtors should focus on finding the retail buyer and leave the SS negotiating up to an investor. That's probably why your 10% figure is not that far off the mark; a lot of Realtors aren't really ready for the fight. I'm ashamed to say, I used to be one of them!

All my personal and business best to you. Great post!

Are you aware of the Active Rain "Referral Exchange"?

Thu, 12 Mar 2009 07:51:53 -0700

This is a great resource for Active Rainers. I've only used it once, with an outbound referral, but I was very impressed. Within a couple of days, I had 5 responses when my daughter and son-in-law were seeking a home in Pittsburgh.

http://activerain.com/action/lead_referrals

I'm currently trying to review an agents qualifications in Albany, NY, and it occurs to me that I could probably find an excellent agent through Active Rain. What an excellent resource this community has become over the past few years.

Guess what web site I'll be siting in my write-up to my friend, who is seeking an opinion about her property in Albany? My hat is off, to the good folks who put this together originally, and to the community that has subsequently evolved.

Help your Buyers keep their emotions in check!

Sat, 28 Feb 2009 09:58:13 -0800

Jason Crouch makes a great point in his Blog. My-Plan-to-Change-the-Real-Estate-Industry-Forever-Sounds-Humble-Right.

He's right - it's hard working with owner-occupants, to get them to keep the emotions in check about a potential home for their family. Especially once you've been working with them for weeks, or months, and you finally run across the property that trips their trigger to make an offer.

What Jason is advocating is why shills at an auction have been ruled to be illegal. Yet, it's tough to catch a shill and it's tough to determine whether a listing agent is making stuff up. And, don't you just hate it when you're the only one who bids on the item at an auction? Been there, done that but at least I wasn't bidding against a phantom bidder! I'd at least like to think there was at least one other interested party who wanted to bid, but if there isn't really another bidder, I want to know that, too!

Listing agents want your Buyer to think there might be another interested party in the property. But if they cross over to egregiously lieing -- if they get unethical in their practices -- they are no better than a shill at an auction.

What they may be doing, however, is trying to help YOU get your offer up high enough that there is actually some hope that the seller will accept the offer! Sure it's unethical if they really don't HAVE an offer, so what they need to be doing is sharing with you hard facts, on what the status really is on the property.

How many showings have there been? Is anyone else currently saying they expect to be writing an offer? Is there actually an offer in the works? If they are not lieing about that, that actually works in a Buyer Agent's favor, doesn't it, to help them get their people off the dime? Who will they be mad at if they don't make the offer and later discover that was absolutely the best deal going, for the next year!

But lieing is what you're objecting to and I'm with you 100%. It's not a best business practice, even if it does get more money for the seller. LA's have a fiduciary responsibility to try and work for their seller, and the buyer's agent has the same responsibility to their client. The sad part is that when "Joe and Suzy Homemaker" let their emotions escalate their bid to the point that no legitimate appraiser would value the house at that price, or if they have a Buyer's agent who has not done a thorough CMA. That's the real crime here. Buyer's agents need to let the CMA speak for itself, though 50% of valuation is art, and the other 50% is science.

And that's what has gotten us into this economic mess. REALTORS, Appraisers and Loan Originators, not doing their job to help make sure the emotions of a buyer (who is obviously elated with a home), help the Buyer keep their emotion in check. We "professionals" should be keeping them from overpaying for a property.

Somehow, I think you may be shifting too much of the blame onto the Listing Agent, when more of it needs to stay with the Buyer, Buyer's Agent, Appraiser, and LO. You have to figure that the LA is going to say whatever he can to get the house sold, and unless you want homes to be sold on eBay without agents ... or as FSBO's... then full-service brokers are going to work hard to get their listings sold.

You're right, Jason. Agents like this give our industry a bad name. Honesty is always the best policy. If we've only had one showing, and I'm the listing agent, I'm working that showing for all it's worth! Nothing happens until somebody sells something!

National REIA Cruise was a hit!

Fri, 27 Feb 2009 18:45:05 -0800

Now that I've finally attended the annual convention of the National Real Estate Investors Association (NaREIA), I'm thrilled to say that not only is this a well run organization, the content and benefits that accrue from membership are awesome!

For a full week, from Feb 7-14, we were exposed to some of the best speakers in the country, and we had a chance to mix an mingle with like minded peers, while we ate and/or drank ourselves silly. Fortunately for me, I spent a lot more time in the bow on the 11th deck in the gym than I did at any bar or restaurant, but the food was outstanding and hard to limit myself. I was committed, however, to NOT put on any weight and I am glad to have realized that goal. It was, however, difficult. The Carnival Liberty has some excellent cuisine available and I will admit that I did not miss and meals. Food everywhere, all day long, so it was hard to believe there is any recession going on, at all.

In fact, the whole week was a festive one and I highly recommend it for any Real Estate Investors who would enjoy a chance to get away in the dead of winter.

Next year, the venue will be St. Maarten, St. Croix, and some other Saint ... Lucia? It doesn't matter. Wherever it is, it will be a LOT warmer than Iowa at that time of year, and unless I'm dead, I'm going.

Viva la National REIA Annual Cruise!

Cruising with National REIA - Education and networking at it's finest!

Sun, 22 Feb 2009 21:45:59 -0800

The 12th annual National REIA convention just concluded. Held February 7-14, starting the first weekend in February every year, this event offers a plethora of nationally recognized speakers with non-stop opportunities with Real Estate Investors from all over the country.

Those who work hard should get to play hard, and Carnival Liberty in the Caribbean was just what this cold Iowa boy needed. At my ripe age, I hate to confess that this was my first cruise ever, but I've already signed up for next year.

If you're into Real Estate investing, it doesn't matter whether you're a seasoned veteran, an investor wannabe, or somewhere in between, this is an event that will pay big dividends well beyond the relaxation of a mid-winter cruise. San Juan, St. Thomas, and St. Maarten were our ports of call, but even if we'd never gotten off the ship, it would have been a marvelous time.

Check out the link to National REIA from our Web Links and Sponsors page, then look for Cruise info.

Central IA Investor? - Mark your calendar! Two Rivers REIA mtg May 2nd, 2009!

Sun, 22 Feb 2009 21:30:46 -0800

While it's still tentative at this point, in just a few days I will know for certain whether we will have two nationally recognized speakers coming to Des Moines for a Rehabber's seminar and presentation that is going to be dynamite!

Because I haven't signed the final paperwork yet, I can't let the cat out of the bag, but for those into rehabbing, wholesaling, short sales, wholetailing, or wanting to sharpen their skills in just about any area of residential real estate investing, you'll want to block out 8:00AM - 5:00PM for a full day of education, networking, and even mentoring.

Most likely, the venue will be the Pappajohn Education Center, but we may have to move the event to a larger venue right away. Based on the enthusiasm I know this event is going to generate, we might not fit even in their largest room! Both of these speakers have never been to Des Moines and we're really blessed to be able to have them come.

So, for the moment, just mark your calendar, and send an email to info@TwoRiversREIA.org for more info. Better yet, go to the TwoRiversREIA.org website and click on the Contact Us page, to be added to our email list. That way, you'll be sure to receive notifications EARLY.

Incidentally, we have other great local speakers scheduled to present, as well. With this great market for Buying, shouldn't you be keeping your RE investing ax sharp all the time? Check out Two Rivers REIA for more info.

Matthew Smith to speak @ the Two Rivers REIA meeting, Mar 7, 8:00AM

Sun, 22 Feb 2009 21:12:11 -0800

Matthew Smith, of S & G Investments will be our featured speaker on March 7, 8:00AM, at the regularly scheduled Two Rivers REIA of Central Iowa, LLC meeting.

S & G has rehabbed over 200 homes in the Des Moines area since their inception in 2003. Together with Paul Gengler, S & G is one of the most active rehabbing companies in the city, and they work anything thing from "cosmetic only" to "gut to the studs and rebuild".

If you're into rehabbing, short sales, contract sales, interested in purchasing a fixer either as an investment property, or as an owner-occupied property with the chance to build some significant sweat equity very quickly, our March 7 meeting will be one you'll want to catch.

I expect there will be standing room only so get there early!

Guests are $10, Quarterly dues are $20, and annual dues are $75. Check out TwoRiversREIA.org for more info.

Joe the Plumber meets Joe the Hedge Fund Manager

Fri, 24 Oct 2008 21:08:04 -0700

Wouldn't that be fun to watch "Joe the Plumber" engaging in a serious debate with "Joe the Hedge Fund Manager" -- asking him questions like, "Why do the top 15 Hedge Fund Managers make an average of $870 Million a year". "How is it that your net after tax income, Joe the HFM, is a cool $1.5 Million PER DAY!, or $ 565 Million per year and I'm still paying any taxes, at all?"

I'll hope to add more to this later but for now, suffice it to say, while there are two Joe's in this story, only one of them is worrying about the level of his taxes and it ain't Joe the Hedge Fund Manager. Joe the HFM realizes he's lucky to live in the US of A, to be able to pay this much in taxes, and he's proud of it (for the moment, until we finally see some serious regulations installed to help keep his clients from losing their shirts). After all, if he weren't making money hand over fist, he might not owe any taxes at all and wouldn't that be a sad state of affairs.

In a progressive taxation system, until taxes get over 50%, the more money you make the more you get to keep! Usually, if you're paying more it's because means you're making more, sometimes, for Joe the HFM, it's a lot more.

I think Joe the Plumber is really an Obama man at heart.

Building "Sweat Equity" is the bomb! Check it out on November 1.

Fri, 24 Oct 2008 20:12:15 -0700

1st-time Home Buyers, and even 2nd and 3rd's -- take note! Building equity and looking at your home as an "investment" that should produce equity from day one has now returned into favor. Gone are the days when all people wanted was to step into the "good life" but mortgage their futures to a house payment that teetered on the ridiculous. Instead, what we're finding is people are ready, willing and able to build a little sweat equity into their property right upfront, with a little help from their rich Uncle Sam.

How? Through up to a $7,500 tax credit, and for certain areas of Des Moines, up to a $10,000 forgivable grant in exchange for buyer a fixer.

On November 1, at 11:00, the Two Rivers REIA of Central Iowa, LLC, will be hosting a seminar on "Rehabbing for Profit", hosted by Two Rivers and presented by David Seymour of the David Lindahl Group. David is originally from England but now lives in Boston and is on the road quite a bit, sharing his message about "Apartment House Riches" and "Rehabbing for Profit" -- two areas of RE investing that can makes investors, and even home owners, a lot of money.

If you're interested, check out the full story here.

Will your business thrive when you establish the "Speed of Trust"?

Fri, 24 Oct 2008 09:26:12 -0700

What is at stake in the current financial "tsunami" that seems to be an amorphous attack on the very heart of capitalism, is many people's livelihoods, their retirement savings, or worse, their jobs.

This is non-trivial stuff. The number of foreclosures and delinquencies, as of Sept 2008, continues to be on the increase. 2.75 and 6.41%, respectively, for a total of 9.16% -- or nearly 1 in 10 of the outstanding loans -- are in a default status. When compared to one year ago housing prices and transaction count are down, albeit less slowly in many areas of the country than the 27 states currently in recession.

And, every time I look at my previously growing nest egg, I realize foxes must have been left in charge of the chicken coop! That great big sucking sound I'm hearing is the Federal Gov't needing so much cash that they are drying up the available investment capital. This is causing my teenie stash of equity "assets" to have shrunk 75% in value in the last year! It's a good thing I'm not talking real money or this could be very depressing!

I thought I was saving for a downpayment to purchase some investment real estate, using equities as a "safe haven" that should return a little more than a simple bank savings account, but what a joke!

Our 401(K), IRA, Keogh and pension plans -- all sucking wind as the downward spiral continues, seemingly unabated. Now, we have Allan Greenspan admitting that he's over-stated the case, that capitalism would be adequately self-regulating? I thought you were in charge, and really knew what you were doing, Allan!

So what should a business person's response be to all of this? How do we get this downward spiral to quickly spin itself out so we can get started on a recovery? That's is the $64,000 question, Andrew!

FWIW, my 2 cents worth follows:

I think we're only going to get through this by re-establishing something Stephen MR Covey capsulizes on in his book "The Speed of Trust", and through the exercise of justice for perpetrators of white collar crime. It's not enough that we wake up every morning, committed to achieving goals, even using life-balancing principles. We must be part of an effort to get the justice department to say "no" to excessive greed and to the lack of accountability.

At the heart of a capitalistic society is the trust established with a handshake. And, at the heart of management is authority, responsibility and accountability. Scooter Libby justice is just not going to cut it! Kenneth Lay having control over pension plans, then renigging on the promises made to -- what, some 15,000? -- employees is not going to cut it! We need more government regulation because we cannot trust our leaders!

We must be able to trust our leaders, our financial managers, and our clients must be able to trust us!

If I tell my investor and owner-occupant clients, "I'm going to be looking out for your best interests", but neglect to tell them that all successful transactions end in a win-win outcome, I've missed the mark. I've set the bar only half as high as it needs to be. I'm not a lawyer looking to destroy my opponent, I'm a business person looking to facilitate a mutually beneficial transaction but some people think if they don't win and the other guy lose, they aren't being served well. Hogwash.

At the core of our economic problems is the fact that we've become this litigious society which is entirely too prone to resolve conflicts through lawsuits, instead of through exercise of fairness. Until we get a handle on this, perhaps making a significant step back toward the value of a handshake, we're going to continue to have this "economic Armageddon". We simply have to be able to trust the people with whom we would do business.

Without the "Speed of Trust", the whole world grinds to an economic slowdown, or at worst, a screeching halt -- and that's about where we are right now; 10% of the population not paying their mortgage payments and 100% of the financial institutions wondering, "Why?".

Seems like we're well on the way to a complete meltdown, with few signs of let-up in sight, so the next President of the United States -- our fearless leader -- will have his work cut out for him!

Immediately, the President and VP will need to begin reducing fear and rebuilding our basis for trust -- in our systems of governance and justice; in our multi-national corporations; and in daily business transactions -- we can't spend all of our time suing people or promising retribution but commuting sentences when they get convicted. And, if we want to hang terrorists but let those who would fleece our savings accounts and stash the proceeds in off-shore, tax-preferred, tax-sheltered, or even tax-free bank accounts, we'll never get back on the right track.

I'm not convinced that having the fox (Henry Paulson) guard the financial chicken coop will play out well, in either the short- or the long-term. What I do know is that we need leaders in charge who can exercise sound judgment and be more balanced in their approach.

Economies won't bring prospertiy if the only policy executed tilts heavily toward trickle-down. There has to be fairness and "spreading the wealth around" is the correct answer to Joe the Plumber. Otherwise, the only guy who ever wins is Joe the Hedge Fund manager. Catering to the needs of the latter is what brings the former to his knees, not a few taxes to that are collected then spread around.

To bring this closer to home, this principle applies to me in my business. No transaction can be all one-sided in its outcome. Can my clients really trust me, to be fair? Can your clients really trust you to not only represent them, but to represent fairness in the outcome of the transaction? (Or, for example, if you're a mortgage broker, do you fully disclose when they are receiving a "yield-spread premium" on the backend of a loan?).

Seems to me this needs to be a main focus for this precarious time we find ourselves in. We can't rely on the lawyers to solve this problem; all they know is win/lose. No, business people are going to have to solve this crisis -- we can't leave it up to the lawyers. Win-win outcomes, established through principles inherent within "The Speed of Trust" premise, is the only logical outcome that will allow us to survive, and to prosper as a capitalistic, but free, society.

Make yours a great life -- engage people with the "Speed of Trust". You'll never regret being honest to the core.

"Rehabbing for Profit" Seminar - Des Moines, IA - November 1, 2008

Sat, 18 Oct 2008 13:43:17 -0700

The Two Rivers REIA of Central Iowa, LLC will be hosting a "Rehabbing for Profit" Seminar, presented by David Seymour of the David Lindahl Group, on November 1, 2008 at 11:00AM. The location is the John & Mary Pappajohn Education Center at 1200 Grand Ave, Des Moines -- one block west of the new Public Library downtown.

Rehabbing for Profit is for both investors and owner-occupants, looking to build instant equity rehabilitating an ugly house. The seminar will be about 1.5 hours long and is preceded by a seminar on "Apartment House Riches", starting at 8:30AM.

Doors open at 8:00AM that morning, there will be a continental breakfast served. We have 10 Vendor Sponsors of this event.

See the Two Rivers website for complete details.

Two Rivers REIA reaches "critical mass" as an Association

Sat, 04 Oct 2008 13:41:38 -0700

It has been my pleasure to serve as the Executive Director of the Two Rivers REIA for two years this month. I founded our local chapter of the National REIA back in October of 2006 and, as with most associations, it takes a while to really get things rolling.

However, from day one, our focus has been on offering, 1) affordably priced education (and by that I mean TRUE education, without always having a vendor there pushing some kind of product), 2) networking opportunities, through which investors at various stages of their RE investing career can interface with like-minded peers, and 3) mentoring opportunities, by making sure that we provide some expertise from members who are RE investment savvy as much as we can, without charging for the privilege.

And over these past two years, we have continued to gain in our membership, such that as of this month, we have over 50 active members! I count this as a milestone only, for we've only scratched the scratch of what our potential is for Two Rivers REIA of Central Iowa group, but this achievement does allow us to take a breath for just a few seconds; to appreciate our members who are finding benefit through their membership and for these early ones, I am indeed thankful.

This is the primary objective of the Two Rivers REIA -- to make sure members are learning to find better deals, or learning how to manage properties better for a better return on their investment, or any one of a hundred different benefits that accrue from membership in a professional association.

My hat is off to those who have attended early meetings, become members, and continued to attend meetings to envigorate the discussion, possibly even giving something back to the group.

With several of the recent presentations, I think we're well on the way toward providing tangible benefits to members and guests. The upcoming meeting at the John and Mary Pappajohn Education Center, at 1200 Grand Ave on November 1, 2008, will be an introduction to expanding possibilities for our future.

If you've never been to a Two Rivers REIA meeting and you're within a few hours of Des Moines, this event should be a good one to choose! The admittance fee is nominal, and more details can be found here. The David Lindahl group is providing two presentations, offered by our featured speaker David Seymour, and I think it will be an event you won't want to miss! Interested in attending? Here is our online registration form!