Time management and the Indianapolis real estate investor!

Lee’s notes: Jon and I were talking the other day about Pareto’s 80/20 rule, and motivation etc.. Not sure if that was his motivation for this post, but it’s all good….

Jon Zorrer takes a Cuzz, and talks about time, and how to manage it. Talks about Greg Clement from realeflow.com, and Jack Walker who are creators of the Smart Internet Marketing Solution System(SIMS). Talks about finding 40 new buyers a week with little to no effort. All the deals you can handle while buying, selling, and investing in homes in Indianapolis, or wherever.

Three types of days: focus days, buffer days, and freetime days. Focus days are where you concentrate on the 20% of things that produce revenue(Pareto Principle).  Buffer days are where you catch up, and do the 80% things that need to get done, but don’t necessarily produce revenue. Freetime days are where you do your best to complete no work whatsoever. Basically you take 24 hours to rejuvenate, rest, and regenerate.

Full time investors should be using a schedule of: Mondays are focus days. Tuesday is a buffer day. Wednesday and Thursday are focus days. Friday is a buffer day. Saturday and Sunday are freetime days(try to avoid work at all costs).

Thinking about having a first child?

Lee’s notes: We have 3 year old, but I saw this, and wow is it right on! Especially #2…

Preparation for parenthood is not just a matter of reading books and decorating the nursery. Here are 12 simple tests for expectant parents to take to prepare themselves for the real-life experience of being a mother or father.

1. Women: to prepare for maternity, put on a maternity shift and stick a 30 pound sack of potatoes down the front. Leave it there for 9 months. After 9 months, take out 10% of the potatoes.

Men: to prepare for paternity, go to the local pharmacy, tip the contents of your wallet on the counter, and tell the pharmacist to help himself. Then go to the supermarket. Arrange to have your salary paid directly to their home office. Go home. Pick up the paper. Read it for the last time.

2. Before you finally go ahead and have children, find a couple who are already parents and berate them about their methods of discipline, lack of patience, appallingly low tolerance levels, and how they have allowed their children to run amok. Suggest ways in which they might improve their child’s sleeping habits, toilet training, table manners and overall behavior. Enjoy it – it’ll be the last time in your life that you will have all the answers.

3. To discover how the nights will feel, walk around the living room from 5pm to 10 pm carrying a wet bag weighing approximately 8-12 pounds. At 10 pm put the bag down, set the alarm for midnight, and go to sleep. Get up at 12 and walk around the living room again, with the bag, until 1am. Set the alarm for 3am. As you can’t get back to sleep, get up at 2am and make a drink. Go to bed at 2.45 am. Get up again at 3am when the alarm goes off. Sing songs in the dark until 4 am. Set the alarm for 5am. Get up. Make breakfast. Keep this up for 5 years. Look cheerful.

4. Can you stand the mess children make? To find out, smear peanut butter onto the sofa and jam onto the curtains. Hide a fish stick behind the stereo and leave it there all summer. Stick your fingers in the flowerpots then rub them on the clean walls. Cover the stains with crayons. How does that look?

5. Dressing small children is not as easy as it seems. First buy an octopus and a string bag. Attempt to put the octopus into the string bag so that none of the arms hang out. Time allowed for this – all morning.

6. Take an egg carton. Using a pair of scissors and a pot of paint turn it into an alligator. Now take a toilet tube. Using only scotch tape and a piece of foil, turn it into a Christmas ornament. Last, take a milk jug, a ping pong ball, and an empty packet of Coco Puffs and make an exact replica of the Eiffel Tower. Congratulations. You have just qualified for a place on the playgroup committee.

7. Forget the Miata and buy a Taurus. And don’t think you can leave it out in the driveway spotless and shining. Family cars don’t look like that. Buy a chocolate ice cream bar and put it in the glove compartment. Leave it there. Get a quarter. Stick it in the cassette player. Take a family-size packet of chocolate cookies. Mash them down the back seats. Run a garden rake along both sides of the car. There. Perfect.

8. Get ready to go out. Wait outside the toilet for half an hour. Go out the front door. Come in again. Go out. Come back in. Go out again. Walk down the front path. Walk back up it. Walk down it again. Walk very slowly down the road for 5 minutes. Stop to inspect minutely every cigarette butt, piece of used chewing gum, dirty tissue and dead insect along the way. Retrace your steps. Scream that you’ve had as much as you can stand, until the neighbors come out and stare at you. Give up and go back into the house. You are now just about ready to try taking a small child for a walk.

9. Always repeat everything you say at least five times.

10. Go to your local supermarket. Take with you the nearest thing you can find to a pre-school child – a fully grown goat is excellent. If you intend to have more than one child, take more than one goat. Buy your week’s groceries without letting the goats out of your sight. Pay for everything the goats eat or destroy. Until you can easily accomplish this do not even contemplate having children.

11. Hollow out a melon. Make a small hole in the side. Suspend it from the ceiling and swing it from side to side. Now get a bowl of soggy cereal and attempt to spoon it into the swaying melon by pretending to be an airplane. Continue until half the cereal is gone. Tip the rest into your lap, making sure that a lot of it falls on the floor. You are now ready to feed a 12-month old baby.

12. Learn the names of every character from The Wiggles, Dora the Explorer, and Teletubbies. When you find yourself singing “Backpack” at work, you finally qualify as a parent.

Wendy Patton Speaks About Lease Options, Contract for deed(land contract), and marketing for buyers and sellers!

Great interview with Wendy Patton talking about lease options, land contracts(contract for deed). Lots of creative ways to purchase and sell real estate in Indianapolis with little to no money down. Also talking about different ways to market for buyers and sellers.

Wendy Patton started out investing in real estate in 1985. She started out using credit cards, and quickly learned that wasn’t the way to go. She has since published 4 major books about real estate investing, and understands how to buy and sell property in Indy with no money down.

Urgent Politcal Action Needed By All Real Estate Entrepreneurs To Defend Private Property Rights! HR 1728

Thank you to Dyches Boddiford, Elmer Diaz and National REIA for sounding the alarm and organizing vitally-needed action on this issue . . .

Pete Fortunato recently brought this Bill to my attention.

It has already passed the House of Representations and has been sent to the Senate. If it passes in its current form, it will restrict owner financing to once every 36 months (HR 1728 Sec 101(3)(E)). While this may not be much of a problem when we get owner financing from sellers, it severely restricts our ability to sell with owner financing.

Though the bill mainly deals with amendments to Truth-in-Lending for mortgage brokers and banks, this one section could reap havoc. This could limit not only your sales where you take back a mortgage, but _your lease-options and land contracts as well_.

Here’s the latest version of the Bill: http://www.govtrack.us/congress/billtext.xpd?bill=h111-1728

All owner carryback financing should be exempted from this bill. As one commentator noted, if this is left as is, it is a taking of private property rights. We can wait for someone else to fight it, but as for me, I am contacting my Senators today to let him know what I think. I suggest you do the same.

You can find and contact your Senators here: http://www.senate.gov/general/contact_information/senators_cfm.cfm Keep it short and to the point, but let them know your thoughts! Pass this along to your investor friends.

Dyches Boddiford

Can you use the 8k First Time home buyer tax credit as downpayment?

Lee’s notes: There is some new policies coming out that state you may be able to use the 8k first time home buyer tax credit as part of your downpayment on a new house.. Once again a first time home buyer is classified as someone who has not owned a home in 3 years, or ever. Found this article, and figured I would share.

FHA loans with no money down? You have to admit that HUD has an interesting idea.

On May 11th HUD posted an official notice for lenders saying that first-time borrowers could apply their $8,000 tax credit toward downpayments. This sounds good at first, but if you look closely at the policy it raises some complex questions.

HUD posted the May 11th notice and then withdrew it. However, everything online remains online eternally, so you can readily read what HUD had to say in Mortgage Letter 2009-15 because it’s been re-posted on a non-HUD site.

Given the current surplus of homes for sale — especially in California, Arizona, Nevada and Florida — any effort which is likely to reduce our bloated housing inventories should be welcomed. But while the thinking here is good, the complications are considerable.

New Policy

Now HUD is back with a revamped tax credit policy and a new 2009-15 mortgagee letter. What the policy says is very different from the original announcement. As HUD explains:

____”Today’s announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to ‘monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments.”

That sure sounds like you can use the $8,000 tax credit toward a downpayment. However, the very same release also says:

___”Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today’s announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate.”

Translation: You still need 3.5 percent down from savings or from a gift if your financing comes from a commercial lender, but if the financing comes from a state housing agency or a non-profit then you can apply the tax credit toward a downpayment.

I have great sympathy for what HUD. They get big credit for trying to help home sellers by making the loan process for buyers more attractive. There is an essential decency to this effort. That said, the idea of purchasers buying with no money down is a part of what got us into the mortgage meltdown in the first place — and that’s not comforting.

For specifics, please speak with lenders and state housing organizations.

The complete news release is below:

DONOVAN ANNOUNCES RECOVERY ACT’S HOMEBUYER TAX CREDIT CAN IMMEDIATELY HELP THOUSANDS OF FIRST-TIME HOMEBUYERS TO BUY A HOME

FHA plan will stimulate new home sales and help stabilize housing market.

WASHINGTON – Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration’s new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today’s action will help stabilize the nation’s housing market by stimulating home sales across the country.

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today’s announcement details FHA’s rules allowing state Housing Finance Agencies and certain non-profits to ‘monetize” up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA’s new mortgagee letter, visit HUD’s website.

“We believe this is a real win for everyone,” said Donovan. “Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation’s housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders. What we’re doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”

Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent downpayment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today’s announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their downpayments via secondary financing provided by the HFA or non-profit. In addition to the borrower’s own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the downpayment. Today’s action permits the first-time homebuyer’s anticipated tax credit under the Recovery Act to be applied toward the family’s home purchase right away. Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit.

According to estimates by the National Association of Home Builders, the Administration’s homebuyer tax credit will stimulate 160,000 home sales across the nation – 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first-time buyer purchased their home. Given FHA’s current market share, it’s estimated that thousands of families will be able to purchase a home by allowing the anticipated tax credit to be applied toward their purchase together with an FHA-insured mortgage.

Homebuyers should beware of mortgage scams and carefully compare benefits and costs when seeking out tax credit monetization services. Programs will vary from organization to organization and borrowers should consider whether the services make sense for them, as well as what company offers the most suitable and affordable option.

For every FHA borrower who is assisted through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.

How to make money and or buy properties at the Indiana real estate tax sales!

Lee’s Notes: This is another interview from Jon Zorer with Michael Keefe, a real estate investor near atlanta GA who specializes in buying and or investing in real estate via buying tax deeds or liens at real estate tax sales. 

Would you like to make high interest return or buy a property for pennies on the dollar? Michael Keefe talks about buying homes at tax sales. Each state varies on their returns, and timelines involved, but this is another highly creative way to get great returns on a real estate investment in Indianapolis or wherever.

The general principle is that you purchase the property at a tax sale. The owner has a certain amount of time to buy-back the property(1 year generally) with interest of around 10-25%. During this redemption period, you(as the investor) can’t really do anything with the property(put a tarp over a leaky roof maybe, but no renovations are recommended). If the owner doesn’t redeem, then you can file the appropriate paperwork(s) to get the deed in your(or your companies) name, and then that home in Indianapolis is all yours! This all depends on your local state laws regarding tax liens/deeds, but you get the picture. Definitely want to check with your local real estate attorney or another real estate investor to find out all the bonuses and pitfalls, but overall a great way to put your money to work for you!

How to make 2 million in commercial real estate investing in Indiana

Lee’s Notes: I am working with one of the top dog up and coming real estate investors out of New Jersey, and he and I are collaborating on some webinars etc. So I wanted to share some of his past video interviews with some of the big names in Real Estate Investing.

Would you like to make half million, million, or two million dollars in commercial real estate investing in Indianapolis or elsewhere? Now is definitely the time to buy real estate.

Peter Conti speaks about commercial real estate investing. Peter also offers 7 free videos at his website FreeCommercialMentor.com. Peter talks about gaining rapport with sellers.

“Commercial Real Estate Investing For Dummies” is Peters’ new book. Check it out at amazon.com or your local book store!

Whether you are looking to buy commerical real estate in Indy or elsewhere, it is a GREAT time to buy! Get in on the ground floor and get your life in order!