You don't have to be wealthy to begin building a portfolio of real estate investments. Most investors start with a passion to build a better life for themselves utilizing the real estate vehicle as their transportation.
The key to a strong, successful real estate investing business is education! Studying the process as well as the market areas of investment are critical to maintaining a positive growth. Along with ongoing education is surrounding yourself with the right people to get the job done that you need done.
Contractors, electricians, plumbers, property managers, real estate attorney, insurance agent, and of course, a great Realtor that is well versed in real estate investing. Each of these people will play a critical role in the development of YOUR real estate investing business.
When presented with an opportunity to invest-employ your professionals to do their job and research the ups and downs of the specific investment. In other words-do your DUE DILIGENCE! Market and area research-comparable sales, rental income, home owner vs rentals, is the area in a special development zone, are there buyer subsidies for revitalization-this is all research that costs you nothing. This research could be done before you even decide to look at a property, so you can go in armed with information to make a solid decision whether a property could be a good investment or not.
Just like a stock broker-your Realtor should have this information in a short time. If a deal is good, time is of the essence, because other investors will be doing the same research. This makes a Realtor that is working FULL TIME with investors an invaluable resource.
Finding good investments can be a long tedious process, unless you utilize the services of others to keep on the lookout for potential properties. A Realtor that works full time with investors will generate an email list that automatically sends out any new deals that cross their desk. This is a great time saving tool and can make your job as an investor much easier.
I believe the biggest key to working with an investment Realtor is this: Investors who want to sell, many tmes will not list the properties MLS, they will just give the information to their Realtor and have them broadcast it to other investors. This means that these properties, which may be great deals, are NEVER PUBLICLY ADVERTISED!They will only go out to those investors on the Realtors broadcast list. I invite you to join my email list-so you can recieve the 1-100 property deals I send out each week! For now check out some of the listings I have for the rehab investor:
Outstanding Investor opportunities in Baltimore City!
If you are considering starting an Investment portfolio or are already a seasoned investor-let's discuss your goals, strategies, and portfolio. Call me and see how your business can growbigger and better!
Inventory is high, sellers are making concessions, money is available, and for the investor market there are plenty of deals to be had! BUT I have talked and worked with more "tire-kickers" than ever before. It seems that even in today's outstanding "Buyers' Market" more people are afraid to actually make a commitment to buy.
My investors list has grow exponentially as compared to actual buyers. I have spent more time this year researching and breaking down potential deals than ever before. My time driving, meeting potential clients, selling myself and my services to the investors market has been easier but more time consuming than in past years. Easier because I know and keep on top of my business segment-the investor-but more time consuming because there are so many "new" investors out there, thinking this is the way to eliminate all of there financial problems in life. (that's a course of study to lengthy for this post)
I spend much more time in the education of my clients-or in some cases-re-education. Clients that come to me directly from some of the more popular REI courses like Real Estate Riches and Trump University find my methods and practice very compatible to their growth. No, I have not taken these courses, (I started with Carlton Sheets course in the 80's-do you remember the 80's? I was getting great deals at 13-15% interest rates!) but they do teach a very solid understanding of the REI game plan.
Investors-you are not investors just because you took a class and call yourself an investor. Investors are strong and courageous-they are forward thinking and big picture oriented with a well detailed business plan. They are decision makers-ready to pounce when the prey peeks his head from under the brush. They are not dependent on others for their success-but do rely on the team they put together to get the job done right.
It is on that point that I wish to expand just a bit. NO ONE can be successful in this business without the strength and knowledge of a good team surrounding them. Look at some of the most influential people or groups.
Ronald Reagan-one of the most popular Presidents since FDR-He is not the know all of American Politics-but he was outstanding at building a team of like minded individuals to move the agenda forward toward his vision of a better Country.
Abraham Lincoln-Took office just before the outbreak of the Civil War. Probably the most turbulent time in US history, yet he built a team of Generals that would follow his command and lead their armies with firm hand to a victorious end. No other outcome was acceptable in his eyes.
OK maybe a little closer to the industry-what about the effects of Team Trademark of Charleston, South Carolina. From a small individual investor-Richard Davis-grew a team that is now in the process of expanding Nation wide through partnerships.
Maryland has its own-Investors United from Charles Parrish or Flipping Homes from Steve Cook. Both of these individuals started as small investors that grew into large teams that spawned their own training academies. whether it be a physical school or online and video course training.
These two men, along with the traits mentioned earlier, made the decision to be successful by actually buying properties when the numbers worked-not over thinking or second guessing but moving forward according to their plan. Much like President Lincoln-failure was not an option.
Oh, Yes, mistakes were made, I have no doubt in their humble beginnings that money wasn't lost on certain deals, but the overall outcome would move them one step closer to their ultimate investing goal. If a deal did not give the expected return or actually lost money-in the end it was not wasted money-it was money invested in a greater understanding of the ups and downs of the REI business. Mark it an educational expense!
Important to any REI Team is having a strong support person with their finger on the pulse of the local RE industry. Being a Realtor and Investor, gives me that unique characteristic that cannot be found in every Realtor. I have a keen understanding of what is happening in the local market and keep my eyes and ears open to the opportunities to aid the growth of an REI business. The investors that I choose to work with also realize that I always put their needs and wants in the forefront when representing them.
Investors finding their own deals know that I will be happy to do an extensive breakdown to figure cash flow or 1st year Return on Investment. This gives the investor an unbiased, professional 2nd opinion to minimize the amount or depth of mistakes that will be made. I emphasize "will" because no amount of research can insure that our speculative crystal ball is infallable.
The point of this post-Investors this is the time to solidify your REI Business Plan and move forward toward your ultimate Investing goal. As the market levels off and turns back toward the sellers-and it will-you will be in the position to capitalize and achieve your ultimate goals.
3 bedroom, 1 bath home on large lot ready for the new owner to move in!
Beautiful tree lined street, landscaped yard, screened rear porch, privacy fenced back yard all ready to allow you some quiet time in a serene setting.
This home has been well maintained and includes all appliances and 2 outside storage sheds. Lots of storage space inside and out!
Listed at just $215,000 and offering up to $5000 in closing help-this could be the first time home buyers dream!
Once again, I must give kudos to Brande Bradford! Her post Expired Letters has inspired me to post once again to the rookies of the group that are struggling since the change in market conditions. Many that follow my posts know that I moved 700 miles into a market where I honestly had no clue, no contacts, and no Sphere of Influence. I started my RE business in Baltimore just 3 short years ago.
I believed to get a stable foothold in the market, I needed to concentrate on a Farm Market andNetwork like a madman, but knew that with my years of experience in investing I would carve a niche in the investment side of the business.
My focus the first 1 1/2 years was just building a name and getting the needed sales to make a living. I did this through the concentration on the farm-mail, door knocking and going to any function that involved members of the community-as well as patronizing all the local businesses in and around the farm. This began to establish me as the local expert in the farm market, and I started receiving calls from buyers that wanted to live in or near my farm community. Not to mention seller calls that were ready for their next home.
The first year in business grossed about $179K per month in sales-a $2M first year. I was pretty happy with that and could pay my bills on the commissions earned from those sales. Through the first half of my second year, my sales were still maintaining pace with that of the first year, so I felt it was time to start focusing on my niche!
Heres where I made 1 fatal mistake! If I was already on pace to have another $2M+ year then I could concentrate on my niche, which was to grow my investor clients. HUGE mistake! Two things happened almost at the same time: I stopped my farm marketing (I broke my own rule about consistency for 3 years!), AND the market turned on a dime to a buyers market! My farm market dryed up almost instantly and my investor market was not growing very rapidly.
I had started a massive ad campaign for investors and was starting to get some calls, but no real sales. (You can't make $$ selling shells for $20K-unless you move a lot of shells!) I spent lots of time on the phone, computer and driving to meet with potential clients. I did a lot of non grata research to help potential clients make an informed decision. And sometimes I ended up not taking on the person as a client.
When working with investors, I have one very hard fast rule-If we don't click personally, I don't work with them. I have had some potential clients that I could sense they were looking for unethical Realtors-Ones that would help them through their deals even if the terms were a little-or a lot-shady. I even had a Realtor that asked me to change a listing to reflect a higher price so his buyer could get back $10K at the closing table! Of course it was going to the contractor to do work in the property, funny thing was it was a completely rehabbed property-NEW EVERYTHING! Oh well another story.
So what did I learn from this? I firmly beleive that focus is key-if you want to work strictly with buyers, first time buyers, sellers, investors, luxury, expireds-whatever the case-focus your efforts on that niche and build it. Become the expert in your niche, you will build long term success.
Do I still believe in the Farm? Absolutely! It doesn't have to be a geo-farm-it can be a niche farm. My mistake was changing drastically from my geo-farm to my niche. It's like building a new business all over. I should have maintained my farm presence while including my niche in the marketing activities.
I have returned to working my geo-farm as well as growing my business with investors. If you have read my posts about working with the Gray Manor Community & Business Group, or working the Community Yard Sale, you will see that I quickly placed myself back into the farm as the local expert.
My investor list has grown to well over 100 and I am consistently working with 5-10 investors at any one time. One investor has turned 3 single family homes through me in the last 2 weeks-all closing later this month. The $20K shells that were bought last year are now ready to sell or to rent. Investors are looking for their summer and fall projects and some are looking at expansion into larger projects.
I have two investment groups that are currently interested in different projects. One is a 20 unit apartment building listed at $4.5M and another is an 88 unit complex listed at $12M. Will they get to the closing table? At this point, we are just starting the negotiations, but it could make for a great end to my third year!
Doesn't it seem contradictory that my post is titled Laser Focus when I didn't do it! Or did I? Yes there were some mistakes, but overall my focus was always to be in the investment game. I put that focus on the back burner to make sure I built a solid income in my farm. Then I should have maintained what I had built while adding the focus on investors.
The farm market is almost on auto-pilot, so my concentration doesn't need to be with it-just maintain what I am doing. My focus is now very specific to investors and my list grows daily with new leads, prospects, and listings.
MORAL:Make a decision on your niche-although sometimes your niche chooses you! Focus your efforts, energy, and advertising to your niche market. Grow yourself as the expert in your field and most definitely Don't forget about your own education!
INVESTORS-look at the financial breakdownfor positive cash flow!Looking for your first or next home? Check my website for more details on this propertyor other great listings!SOLD!
OK so I learned a very valuable lesson today-at the point of a gun!
Previously being a Lieutenant at the Sheriffs Department in charge of a unit that specialized in reducing gang activity in the worst parts of the county, I am no stranger to the use of guns. But as a Realtor, this is one thing I really didn't anticipate dealing with.
I have a listing that The seller and I agreed yesterday to reduce the price, so I thought since I have to redo all my ads I would take more pictures to add. No big deal, I drove to the property and saw that the maintenance people had been there to do some yard work (this is an investors property)-Great, I thought the pictures will look nicer with the freshly cut lawn.
I put my sign back up that had been knocked down and proceeded inside. The house is a totally rehabbed 3 bedroom 2.5 bath that shows very nicely, so I wanted to get several different angle pictures to produce a video-Thanks Rich Schiffer for the Tech Tip.
I went through the front room, dining room, kitchen, utility room-all on the main floor- and took several pictures, then went upstairs to the bedrooms and 2 baths. When I was in the Master bathroom, I thought I heard someone say something downstairs-so I just yelled down "I'm upstairs!"
I didn't hear anything else so I thought I better head downstairs to see what-or who-made the noise. Upon rounding the corner at the top of the stairs-I look down to the bottom to see a 9mm handgun pointed toward me. Having been in similar situations, it still amazes me that you can see nothing else in the room when confronted. This small weapon is now front and center in your mind and has your undivided attention!
I immediately through my hands in the air to show I had nothing but a camera and heard "Baltimore County Police, Identify Yourself!" Whew what I relief-as I take a breath, I state back, "I am the Realtor" The officer, doing his job properly, didn't relax until the point that he was sure I was who I said. I pulled out my business card and ID and as he made his report we discussed police work.
So why was he there? The alarm system had been reset by the maintenance staff and I set off the alarm when I came in. I didn't have the code so I had to call the owner who gave me a code and I shut it off-she neglected to tell me that the system was still monitored!
So there are two lessons here that I walked away with today-1) Always secure the door behind me when I enter a property-next time it may not be the police AND 2) If theres an alarm-always get the disarm code-even if they say its never set!
Of course, I couldn't allow the officer to leave until we discussed his housing plans or needs! Althought he has no immediate needs, he does have a friend, so I may end up with a new client out of this on top of my lessons for the day!
Here is an Outstanding Dundalk Single Family Home listed at
$165,000
REDUCED $24,000! NOW $141,000!
Owner says SELL-Bring all offers! Everything is new-Kitchen cabinets, tile, all stainless appliances-Mba new whirlpool tub & sep stand up shower, tile floor. New windows, roof, HVAC, HWH, electric, plumbing. Property 99% complete needs some minor fixes to finish.
Stephen Luckett
Stephen Luckett
What an outstanding Rancher in Glen Burnie!
This is a short sale you have to see! Almost completed rehab ready for your finishing touches to your taste and liking!
Stephen Luckett
Great opportunity for investor or owner occupant that wants extra income to help cover mortgage!
Stephen Luckett
Here is an Outstanding Dundalk Single Family Home listed at 
Stephen Luckett
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