Circle of Winners

Prequalifying a Income Producing Property

As investors after the thrill of seeing a property and you have come back down to earth then it is time to kick the tires. Many an inexperience investor has had buyer’s remorse and wish they had done their due diligence (due diligence another post) before purchasing a property.

We don’t have the space or time to go into prequalifying an income producing property properly here but I will try to give you an overview of the process.

First as always before you start looking for a property you must have a plan which sets limits as to:

· What you are willing to invest in (Type of Property)?

· How much you are willing to invest (Cash Available)?

· How long you plan to keep the property (Time Horizon)?

· Can you finance it or get it finance?

· Who will finance it? (Bank or Hard Money)

· What are the numbers that will fit my objectives (What’s my expected return on my investment)?

· Are you willing to improve a property and if so what is my investment limit?

Once you have answered these questions then stick to them.

Since your plan is to purchase an income producing property then it is important to get actual numbers the same as if you were going to finance the property. Why do I say this? Because the lender is going to want to see actual numbers that can be verified by records that the sellers has.

If the seller can’t produce the needed documents then I have always found it is better to walk away with my wallet intact than be sorry with buyer’s remorse.

In later post I will go through the number process of prequalifying a income producing property since each type of property is qualified differently.

Remember! Success is achieved by those try and keep trying and where there is nothing to lose by trying by all means keep trying.

Curtis William Lee, Sr.
Mentor
Circle of Winners Master Mind Group

For more information go to www.cwlsr.com

Or email me at cwlsr@cwlsr@cwlsr.com

Marketing Real Estate - Investor and Real Estate Professional

Marketing and how it is done has been one greatest question investors and real estate professionals have pondered upon and in the end still wonder about. Those who have tried to study the subject can still remain confused because so much has been written about it.

Like any business decision you should always start with a plan as in this case a marketing plan.

The Guru and Coach will more than likely tell you that there is strategic marketing and a tactical marketing. I will agree with them in this respect that you have to understand the concept but you will need real help in implementing them properly. The reason I say this is that markets are constantly changing. In the past marketers used regular mail sending letters and post cards. The generational changes that are taking place with the internet and programs like social networking will not work with younger generations.

As mentor I am weekly checking out new methods of marketing which will benefit the members of the Circle of Winners Master Mind Group.

In some ways marketing real estate is the same for both the investor and real estate professional in that they are both looking for either a buyer, seller or leasing tenant. However how you go about doing it is a completely different matter.

For more information about marketing go to www.cwlsr.com and the "Ask a question” tab and I will be glad to answer your questions.

Curtis William Lee, Sr.
Mentor
Circle of Winners Master Mind Group

A Investor's or Real Estate Professional's Database Management System

Every successful investor has what is called a data management system. The system can be as small as Quicken® or Quickbooks® which will track your expenses and income.

There are other programs that can be added to a contact management system which will give you the flexibility to integrate with Quickbooks and are usually used for email and contact information such as Microsoft Outlook with Small Business®.

For the small investor this is usually sufficient to manage a relative small number of properties with a small number of tenants.

For the investor who has a large number of tenants such as multifamily properties should look for a CRM property management system which includes accounting, billing and different forms of communications. (I will address Risk Management at a later date)

If you are a real estate professional and are planning on setting up a data management system there are some first steps that are important to take.

Take time to set up a plan for your desired data fields and how you will use the contact data in marketing.
Look at protecting your contact and prospect data,
Categorize your data in order to make its use easier and your daily activity planning more successful.

A selection or poor design as well as setup can result ina real estate contact that will at best be minimally helpful and, at worst, fails completely with loss of all your contact data.

At the Emerald Companies we did a lot research and had broader parameters before making a decision,

To find out more go to the Circle of Winners Master Mind Group.

Curtis William Lee, Sr.
cwlsr@cwlsr.com

Guru, Coach or Mentor - Who can write the business Plan best

As a mentor and venture capitalist I require every business that I invest in to have a comprehensive business plan.

There a many types of business plans and how they are structured are determined by their purpose and use. For example if you plan to borrow money the lender expects to know what your plans are and how you are going to pay them back.

Today I want to address two types of plans which can directly impact the real estate investor or real estate professional.

A plan is like a journey and is ever evolving and must be updated on a regular basis. Since you are going in business or already in business here are the standard questions you should ask yourself.

Plan I

Who (Who is going to be responsible for the business)
What (What business am I really in?)
When (Is this part time or full time?)
Where (Location, location, location)
How (How much do you understand the “What question?” How do I gain more knowledge?)
How Much. (How much money am I willing to risk? How much time is it going take?)

These are the basic questions every entrepreneur should take several days to ponder before attempting to create a business plan (Road map for success).

There is an old adage that has been around ever since I can remember.”No one ever plans to fail but fails because they fail to plan.”

Plan II

A good plan should have a minimum of following elements:

Executive Summary

Your objectives

Keys to your success

Company Summary

Ownership
Start-up summary

Types of property

Property description

Target market area

Market

Availability
Trends

Investment objectives

Management Summary

Management team
Job descriptionFinancial Plan

The business plan just described is not a complete business plan and is shown only to give you an idea of what one may look like.

Should you desire to create a personal business plan and would like assistance. Go to Circle of Winners Master Mind Group or email me at cwlsr@cwlsr.com

Guru, Coach or Mentor? Part II

Last week I discussed the differences between the Guru, Coach
and Mentor. We saw that the Guru and the Coach are money driven
by the sale of their products while the Mentor is driven by your
success.

For the next several weeks I will be addressing the important aspects
of a good Mentor and what knowledge they should they be able to
share when mentoring.

Here are a few of the topics that a good Mentor should be able to
guide you through:

·         How to build a working business plan

·         What type of accounting and database management system you
   should use.

·         Marketing for the purchase or sale of properties (Marketing plans,
   Strategies & Implementation).

·         Prequalifying  income producing properties (It is more than
   NOI &DSCR)

·         Contracts and Agreements

·         Negotiating Contracts

·         Listing your property

·         Appraisals and Valuations

·         Real Estate Financing

·         Environmental – Phases I, II, and III

·         Due Diligence

·         Risk Management

·         Insurance – Type of coverage need for your business and
   properties

·         Real Estate Title and the Closing Process

Generally when you purchase training programs there is little or no
interaction between seller and student. The cost is usually expensive
and after a short time the student starts to lose interest in the program
they have purchased.

It is different with the Mentor in that there is constant contact and an
ongoing dialogue between the Mentor and student.

If you have an interest in being mentored at a low monthly cost of
$38 per month ($456 annually) go to The Circle of Winners Master
Mind Group. www.cwlsr.com

Look tomorrow for “How to build a working business plan:

Curtis William Lee, Sr.

cwlsr@cwlsr.com

Guru, Coach or Mentor?

This post is from my two other blogs "Cirlce of Winners" and "CRENewsWire."

Guru, Coach or Mentor?

Recently I logged into a forum discussing Real Estate

Guru’s. The idea was to debunk them as well as their

material and the service that they provide.

The word intrigued me so much I decide to see what

Webster had to say about it. Here is what he said about

Guru, Coach and Mentor.

Guru – “An expert, a person with knowledge or expertise.”

(Buy my products and you are on your own)

Coach – “One who instructs or trains a performer or a

team of performers.” (Buy my products and attend my

seminars)

Mentor – “A trusted counselor or guide.”

(No products or seminars to sell only there when needed)

When I signed up to become a member of the web site

Bigger Pockets (www.biggerpockets.com) I had only

one choice and that was to register as a Real Estate

Coach. I must say according to Webster I don’t fit that

definition. (Note: Bigger Pockets is a great site)

For years I have assisted others in business as well as

in personal growth using the principals that I have

applied in becoming a successful entrepreneur.

To be a successful real estate investor or real estate

professional it is important to understand business

principals as well as real estate. I am often asked

questions about limited liability companies or what is

the best management system or accounting system for

my real estate business just to name a few.

I have always advised those whom I have mentored that

it is important to work on your business instead of in

your business. What I mean by this is if you are only

doing the technical work and not equally doing the role

of manager of your business as well as letting your

creative juices flow as an entrepreneur you will be

destined to almost certain failure as a business owner.

(Remember whether you are a property owner or a real

estate professional you are more than likely an

independent business person or contractor.)

The Guru or the Coach will normally tell you how to do

real estate whiles the mentor will not only tell you how

to do it but will also show you how to do it. The mentor

takes a personal interest in your success while the other

two are usually product and sales oriented.

For those who are just starting out or not yet seasoned

in the real estate arena I would recommend that you

find a good mentor to work with you and personally

guides you in your new venture.