Creating Wealth Through Real Estate

It has been way too long since my last blog post and I apologize as I have just been swamped with work. So this post is to sweep the dust off my blog and also update you all on our Granada Hills REO flip.

We had multiple offers in the first three days several of which were over asking price. We accepted one at $485k (ask price was $480k and started a 30 day escrow with our conventional buyer who was placing 20% down. After approximately two weeks, just shy of the 17 day inspection/appraisal contingency expiration, the buyer's appraiser came back with the figure.

To our dismay, the buyer's, the buyer's agent, and us, the home was only valued at $450,000! This comes after showing evidence of true and real comps (within 1/2 mile, most within the same subdivision), all within the last 3 months, that the value was indeed in excess of the $485 offer price. Again, we have an able and willing buyer wanting the home at that price and the damn HVCC steps in with their overly conservative appraisers who just don't get it and through out a number $30,000 lower.

Since we were very confident that the appraisal would come in at least close to the offer price, we did allow the contingency. Now we had three choices. Let the buyers walk, have them come to the table with $30k more to cover the difference (which they were not willing to do), or start negotiating.Now the negotiations re-started between us (the sellers) and them (the buyers) To start over and go to the next buyer and start a new 30 day escrow would have wasted another 3-4 weeks, so it was in everybody's best interests to resolve the issue. The result was that we were to reduce the purchase price to $477,500 and convert the front two bedrooms into one master suite. I agreed to do this, take the hit, and just move on.

We did have the room in this deal because we bought right, did a lot of the work ourselves, and were able to control the repair budget and keep it lower than most could do for the work we did. The place was a palace in case you didn't see the videos.

This decision was also based on the concept that by taking less profit now, we could get our money back out of this home and into others which would yield more income. Starting over may have got us a higher ask price, but we would still end up with a potential appraisal issue again (which would be resolved by not allowing that contingency), and we would lose out on another 3-4 weeks were are money was earning nothing.Let this be a lesson to all in this ridiculous appraisal market. Make sure you either do not give the appraisal contingency, or limit it to only 5-7 days, or have in place a stipulation stating that no matter what the appraiser come back with, the buyer is responsible for any difference. This could in fact reduce your buyers pool, but then again, it is such a large pool these days that it appears to be worth it so far.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including REO rehab flips. Join his next "Make Me An Investor" program by going to www.nationwidepropertyinvestments,com/education and start your journey to creating wealth through real estate!

We completed almost two dozen interviews for potential candidates interested in our Make Me An Investor Program which begins in one week. This will be round two of the program. The program is an intensive 8 week, hands on educational experience which teaches the students how to buy REO properties, rehab them and sell them for maximum profits, just as we do.

Every detail is covered and all of the strategies we use to succeed or divulged to the students. Most importantly, we teach them not only the how, but the what to do, what to say, how to do, how to say, down to every last detail. Then we make them do it and report back. This form of education has proven to be most valuable to our first round of students.

Don't forget to watch our video series available here on this BP blog as well as on our website. We look forward to reporting back this round of students' experiences and progress as they go through the program which covers the following: 

-     Finding The Deal Before MLS Listed
-     10 Biggest Rehab Mistakes
-     Building Your Team
-     Raising Private Money
-     Calculating Repair Costs
-     Working With Contractors
-     Liability Protection & Insurance
-     Exit Strategies - including Wholesaling

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including REO rehab flips. Join his next "Make Me An Investor" program by going to www.nationwidepropertyinvestments,com/education and start your journey to creating wealth through real estate!

Part II of my Negotiations educational series here on BP Nation. Please provide any comments or questions you may have.

Negotiations are often all about compromises but should never be the goal itself. It is only a negotiating tool to use if and when you need to. When you are attempting to get something you need and the other party is not obliging, often you can turn to a compromise to get what you are looking for. In other words, give them something small to get something that is necessary or important to you. You should also find commonality with those you negotiate with. As stated in part I, if the other party tends to like you, you will be a more successful negotiator.

 Mirroring and matching is also an important tool for usage in negotiations. This requires you to use the same words your opponent uses, the same rate of speed at which they speak, and the smae volume at which they speak. Match their body language and their gestures and always match the same eye contact they give you. This process does not mean that you are not being yourself as suggested you do when starting off negotiati9ons, but it is adjusting your physical gestures, approach, eye contact, etc. to match your opponents'. 

Here are some questions to ask yourself BEFORE you begin negotiations: What is my desired outcome? How do I stand to lose if I don't get the desired outcome? What is the other party's motivation? What is my walk away point? Are my expectations realistic for this situation? What support material can I gather and use? What list of alternatives or concessions am I willing to use? What compromises am I willing to give? Knowing the answers to these questions is imperative to better prepare you in advance for the negotiations.

In Part III, I will discuss negotiating tips, don't miss the next blog post!

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including REO rehab flips. For all short sale and REO investors, Will can provide your transactional funding needs. Contact him by email today for more details.

Negotiations has been brought up several times in forum threads and I felt it was important to blog about them so here it goes, Part I of several:

Treat negotiations as a game, remember, it is business, it is NOT personal! Never take negotiations personally. Allowing your emotions come into play during negotiations can give your opponent the edge they are looking for.

To be a great negotiator, you must be a great problem solver. Find out what your adversary's problems are and deliver solutions to those problems. You can not come into a negotiation stating "This is what I want!" You need to present in such a manner that by your opponent giving you something, it solves their problem.

Another important aspect of being a good negotiator is to start off by being yourself. Establish a rapport and utilize good people skills. These are essential elements to becoming a good negotiator. If your opponent likes you, you will have much more success in the negotiations. Coming across as arrogant or selfish will hinder your chances of a successful negotiation.

Always listen to what your opposing party wants. In many cases, their most important needs are mentioned right off the bat. Having this information and knowing what is most important to them will help you in your negotiations. Remember the 80/20 rule during negotiations. Listen 80% of the time and speak 20% of the time.

Part II of this series will include compromises, body language and gestures, stay tuned . . . .

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including REO rehab flips. Join his next "Make Me An Investor" program by going to www.nationwidepropertyinvestments.com/education and start your journey to creating wealth through real estate!

I hope you all have enjoyed our videos as much as we had producing them! They were a lot of fun and hopefully eye-opening for you.

Nationwide Property Investments has a new hands on program called Make Me An Investor which is an 8 week program teaching students EXACTLY how to maximize profits on REO rehab flips. Our next program starts soon, so take a look at our final video right here:

It is no secret that REO investing is one of the most viable strategies available to investors during these current market conditions. If I asked 10 investors how they were acquiring their REO properties, I would get 10 different answers, however, part of the answer would be the same (or very similar). The common response would be, "well, I make a lot of low ball offers and eventually get one accepted." I have stated several times that while this is certainly a way to go, I don't believe it is the most effective or efficient means to acquiring REO properties.

I have also stated many times that the best way to do so, is to get the properties under contract BEFORE the public knows about them. This eliminates your competition, eliminates the common place bidding wars in many areas of the country, and reduces the amount of paperwork and leg work for both the investor and their team members (specifically their agents). Let's face it, agents want to make the most money with the least amount of effort! Don't you!

REO investing is NOT a simple or easy process. It requires a multitude of abilities and knowledge, of course, experience never hurts either. Generating creative means to acquire these properties prior to public knowledge is one of the "real hidden secrets". Yes, I said secret, because if you don't know how, it is certainly a secret to YOU! I am by no means claiming to be the inventor or founder of these strategies, but I certainly know how to get them done which is how and why I am a successful REO investor.

A very valuable piece of information I can share with you is this: Relationships, relationships, relationships! We have all heard the similar statement about location, but the true key, as far as REO investing is concerned, is relationships. You must form these with REO brokers, and lots of them. A strong network of relationships in your corner is a true key to being successful in the REO investing business.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including REO rehab flips. Join his next "Make Me An Investor" program by going to www.nationwidepropertyinvestments,com/education and start your journey to creating wealth through real estate!

We are now under contract on our Granada Hills home! Listed on MLS Monday and agreed purchase contract just three days later! Not too shaby!

Buyer has 17 days of contingencies and then must close or lose the EMD (earnest money deposit). It was difficult, to say the least, to inform the now back up offer buyers that they are not getting the home. They loved it and are quite dissapointed.

Competition is certainly fierec in our market and the back up offer buyers agent eluded to that fact by explaining they have been second best several times. I feel bad as I understand their position.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

Our Granada Hills REO rehab flip went very well and we just put it on the MLS late Sunday night, so Monday was the first work day that the agents could see it. We had 5 showings on Monday, plus two walk-ins. On Tuesday, we had 9 showings, and today, my phone keeps ringing from agents who want to show the property!

I alsready have three offers in, and they are very strong offers indeed. One is above ask price with 20% down (not too shaby!). I am telling the agents today that they are more than welcome to show the property, but their clients had better get there fast and write an offer tonight, as tomorrow will be too late. Looks like I have the offer I want, but will give it one more day to see what else comes in.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

After only one day on the MLS, we have received a very strong offer from a potential buyer which will be scrutinized closely. We have had 7 showings from RE agents in just one day and have been informed to expect another offer which is to be all cash!

This is great news for us and was to be expected as the low inventory levels and all our other due diligence pointed to this result. The offer (which can not be discussed at this time) is very strong, conventional financing and I like the buyer. The buyer has a very strong credit score and history. We have until tomorrow to respond/counter and I will update you all on the outcomes.

As I type this blog post, I just answered another call from an agent who will be showing the property and has a very strong buyer with a large downpayment. We will see what the offer comes in at.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

We have completed the rehab in Granada Hills, CA and it now awaits a buyer, We have pre-marketed the property and it just now hit the MLS. It was a lot of work and we put more into it than originally planned, but we are very happy with the results and all potential buyers and agents have loved the home and complimented on the quality of the workmanship.

If you would like to view it on the MLS, you can by searching the MLS # T09089044 and you can also view it both on our wbesite and on realtor.com  All agents are encouraged to bring their conventional (or all cash) buyers as we do not expect this georgeous home to last long.

I will update you all on the progress of the sale as it happens and post any details that occur. Be sure to keep an eye out for our next video and if you are interested in doing what we do, then you must join our next make me an investor program which is a hands on educational experience lasting 8 weeks and no details are left out. We are accepting requests for interviews as not all candidates will be accepted. Contact us by email with any questions or for an interbiew request.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

Time is running out! If you want to learn EXACTLY how to profit from REO properties in this market and stop wasting time with the other unsuccessful methods, then contact us immediately for an interview. We will review each candidate for entry into our program and there are limited spots available. Send an email to info@nationwidepropertyinvestments.com for details and an interview request.

Our Granada Hills, CA rehab project is near completion and we are offering all agents and buyers a preview of the home BEFORE it goes to the MLS. If you are an agent or buyer, contact us via email to express your interests.

The minimum price that will be accepted is $480k and the buyer must be conventional (no FHA). The home is a 4 bed 2 bath 2307 square feet wih 2 car attached garage. It has a pool, spa and bonus room with office, room for pool table and built in bar area. This home has been completely remodeled with new stucco, new paint in and out, new windows and sliders, new kitchen appliances, pool was re-plastered, travertine tiles in bathrooms, granite countertops, new carpet, new ceiling fans in each bedroom, and much more.

This is a must see and due to the very low invesntory on the market, this equity sale will go FAST! Get your preview and have the opportunity to submit offers BEFORE competing with the MLS buyers.

10564 Collett Ave, granada Hills, CA 91344.

Previews will start This Friday, August 7, 2009 and you must contact us for a showing.

Today was a very productive day at our Southern CA rehab project. While I had to deal with some quality control issues on one end which set us behind on our time line, I was productive in other aspects.

Cleared the pile of scrap in the backyard and tossed it into the dumpster, went to my second home (Home Depot) and picked up some sheets of 5/8" plywood to lay down as flooring in the master bedroom (the floor level in this room was 5/8" below the hall and other bedrooms and needed to be raised so the carpet had no transition problems once it is laid), the toilets for the two bathrooms, some misc. supplies, and materials to build a small fence around the pool equipment.

The flooring in the master bedroom (plywood purchased) was installed and screws were used to keep in place, the bricks and mortar were completed in the front entryway (they look great), and I repaired several of the broken fence pieces in the backyard. It was hot today (not quite as hot as the previous few days) so I jumped into the pool to cool off towards the end of the day as I have the previous few days. What a life saver this pool is!

 I was not satisfied with the texture coating and paint job in the bedrooms so I had the project coordinator come to the job site to talk about my concerns. He will have the workers sand down the texture and repaint the areas so that the quality meets my standards and I was happy with the implementations he instructed the workers to perform. Tomorrow, I will again check the quality of the work to make sure it is to the standards our potential buyers would expect in a home of this quality and cost.

This set-back is a perfect example of why it is so difficult to perform and manage a rehab project form out of state and why I will not do so again. All of my rehab projects are and will be local, and when the time comes that the market is not condusive to this strategy, I will adjust and adapt as I have always done.

We had the livingroom fireplace completely refaced with red brick (the existing brick was old and ugly, and some were missing or broken) and it looks fantastic. It really makes the room and since we removed the ugly 70's style wood paneling on the walls in the living room and dining room, the new look will dazzle the potential buyers who see it. I am very pleased with the outcome (although it was an added cost not factored initially, the expense will be re-couped in the sales price).

Looking forward to what tomorrow brings!

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

As most of my blog readers know, my most recent REO purchase was made in Granada Hills, CA for the very low price of $312,500. I have since put $42,000 into it in rehab expenses and it looks like a brand new home! It will be sold to an end buyer for at least $485,000 which will give a gross profit of $130,500. After holding costs and re-sell costs, the net profit (pre-tax) will be over $90,000 on just one deal!

Follow our video series on this rehab project and watch how we do it. We have several students in our "Make Me An Investor" Program and they are in their 5 week of the 8 week program. They are doing fantastic and are learning the process in a hands on fashion, getting all their questions answered, and travel with us to potential rehab projects, to our current rehab project, as well as listening to actual phone calls with agents and service providers.

We are announcing the second round of our Make Me An Investor Program today and invite each of you to contact us by email for an interview request. As in the first round, not all applicants will be accepted. We are looking for dedicated and motivated people who want to learn the right way and who are truly committed to success! In doing so, our student success rate will be second to none. Getting the tools and contacts necessary is only one step in this process. The other is up to you! You must do the work as the profits will NOT just fall into your lap. Our program is not a get rich quick scheme or some bogus means to artificially excite you. You WILL be required to put forth the efforts required to be successful and those who do not show the qualities to do so will not be allowed into our program.Limited spots will be available so contact us ASAP for an interview request.

If you had an interview for round one but were not accepted or did not enter the program, we may require you to re-interview so please contact us by email to check in. We can take both local or out of area candidates. The local candidates have the advantage of personally visiting our rehab projects, but our out of area ones are certainly invited to do so and we also have many videos and visual aids to make you a success.

Our 8 week program will teach you exactly how we locate, negotiate and close REO properties at steep discounts, rehab them, and then re-sell them for maximum profits. The program includes building your team, funding your deal (includes locating private funding), dealing with contractors, exit strategies (including wholesaling), market and financial analysis, calculating rehab costs, and much more! No stone will be left un-turned and ALL of the strategies and techniques we use for success will be shared with our students for this money making investment strategy.

All candidates are required to interview for a spot in the program. You may do so by sending an email to us at will@nationwidepropertyinvestments.com expressing your interest in entering the program.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Follow his new video series on buying, rehabbing, and flipping REO's for maximum profits at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

We just completed part IV of our Make Me An Investor Video Series and are very pleased with it. It has been a lot of fun doing both the rehab on this project and filming the videos so that you all can follow along with us.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

Today, the pool was replastered at our Granada Hills, CA rehab project and it looks great. The pool will sparkle now once the water has filled. (Can't wait for the pool party!) The tile in the entry way, dining room and kitchen was picked up today and our crew got a great jump start on the install of it. It really looks fantastic and will be a warm and inviting experience for potential buyers.

The roof repairs were also completed today and the two bathroom remodels are done except for the vanity installs (all the travertine is installed and the walls are all done and repaired). I spent a few hours cleaning up the scrap from the back yard and front yards and tossed it in the dumpster, watered the lawn in the front and cleaned up the front appearance as we get closer to having potential buyers look at the property now that it is close.

Monday or Tuesday will be the day in which the interior walls get texture coated,  the remainder of the baseboards installed, and then the painting. The exterior is mostly complete other than a few touch-ups and the front elevation, which has been dramatically changed, looks fantastic! The before to after pictures of the front elevation are going to show a dramatic improvement, so much that it will look like two different homes. Of course the interior has some dramatic and fabulous changes as well!

We also had another conference call with some of our students today going over the weeks work as well as the past two weeks. It was another great session and our students asked some great questions. Next week they hit the streets again and get some offers made. We look forward to seeing their first deal contracted!

Stay tuned for our next update as well as the next video in our Make Me An Investor Video Series.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

Welcome back to our updates on our new investor program called, "Make Me An Investor" It is all about teaching our students EXACTLY in full DETAIL from start to finish, how to buy REO's, rehab them, and re-sell them for maximum profits. Our current students are doing great and are loving every minute of the program. We are real educators teaching othres what we do, as we do it!

Take a look at our video series, part III.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

Part III of my 3 part series on tenants.

Always inspect your properties regularly whether you own it, lease it, lease-option it, have a property manager managing it, etc.  Try to see your property as often as possible.  Just be sure your lease makes it clear that you will be coming in regularly with 24 hours notice during regular business hours or whatever is convenient for the tenant to inspect for repairs and maintenance.  While at the property check the air conditioner, change the air filter, check the smoke alarms, change batteries, etc.  Just be sure to always contact the tenant before entering.  It’s their home and you can’t just show up and expect to get in.

Until the tenant gives up 100% control of the home, it is still their home by law.  You can’t enter it unless you’ve given them written notice.  Some tenants won’t pay the rent and will just move out before you need to evict them.  If they’ve left things behind you may think that they’ve moved, remove those items, and get the property ready for the next tenant, only to find out that they say they didn’t actually move or give you permission to enter their home and discard their personal property.  This could leave you open for a big lawsuit.  If you find yourself in this situation be sure to contact your local attorney to see how to best handle things if it appears the tenant has moved out before you needed to evict them and things were left behind.  You don’t want to move other tenants in only to find out the original tenant shows up saying that they didn’t relinquish control.

Sometimes there is nothing you can do except wait out the eviction process but I believe that tenants need to be held responsible for their actions.  When they are finally out, if they’ve destroyed the property or haven’t paid the rent, when I get a judgment against them I will go after them.  I make sure that the money they owe me and the eviction shows up on their credit.  It may even cost me more money to do this but I think it is important that there is a record of how they have behaved so that others can steer clear of them.  Otherwise we could all be renting to tenants with very bad pasts and no record of it to help us keep them out of our properties.  I’ll also contact a good collection company or collection attorney to go after them.  They take a percentage of what they collect; nothing up front.  It may take some time but you very well may get paid what you are owed.  Your local apartment association or real estate investors association can usually refer you to some good collection attorneys.

As stated in the beginning, you can make great money in reale estate simply by buying and holding.  Think about what real estate cost 20 years ago and what it may cost in 20 years.  Purchase a number of homes, let your tenants pay your mortgage, and you’ll not only get the monthly cash flow, and annual tax benefits, but you’ll also get all that equity down the road when you either refinance or sell.  It’s a great way to make money, and the process will be much more enjoyable if you take the time to do your due diligence on every adult before allowing them in to your property. 

As a wise man once said, “don’t wait to buy real estate, buy real estate and wait!”

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

Part II of III in choosing and managing tenants:

When tenants move into the properties, have them sign a damage disclaimer in addition to the lease.  The disclaimer says, “you and your guests are responsible for the damages you cause.”  Discuss this with a local attorney for help creating this simple document.

Advertise a program that rewards good tenants to attract them.  The program states that if they stay in your property two or three years, pay the rent on time, and don’t do any damage, you’ll give them an incentive like a cash bonus of say $200.  Or you might offer to do an improvement on the property like clean the carpets, add a new ceiling fan, etc.  Let the tenant pick form a list that you provide.

When tenants say they are moving ask them why?  Sometimes you may find that they’re unhappy with something about the house.  It may be an easy fix, so find out what it is and take care of it if it is resonable to do so.  The cost will more then likely be much lower then the cost of an empty unit while you make the property ready and market for the next tenant.  Maybe it’s a neighbor issue.  If so encourage them to solve it by contacting the neighbor or the local authority that can help resolve it.  Many times helping them solve their issue may keep them as tenants and save you money. 

Other then trying fix any problems that could be causing your tenant to move, also outline all the expenses and hassle they will incur in moving.  Costs include packing supplies, the hassle of packing, moving and unpacking, new utility deposits, new rental deposit, moving truck, loss of work, etc.  Add up the total potential cost and send it to them.  They may reconsider the move.

Usually the most serious complaint tenants have about landlords is that the landlord doesn’t make repairs, or if they do it’s not in a timely fashion.  To help get tenants and have an edge in the rental market, offer a 3 to 5 day repair guarantee.  Use this repair guarantee as part of your marketing.  When the tenant moves in, give them the written guarantee signed by you.  The guarantee says that if the tenant calls about a repair and we’re responsible for it, we’ll fix it within 3 to 5 days or we’ll give them their daily rent back in cash for every day it’s not fixed.

Stay tuned for part III of this topic on tenants.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

A lot of money can be made in real estate with the buy and hold strategy.  The downside is the fact that you have to deal with tenants.  Although this can be a hassle, the benefits of owning real estate far outway the problems associated with tenants, especially if you do it right.

To begin with, you must do your due diligence on all potential tenants.  If you have a property manager instruct them as to what you expect them to do when qualifying a tenant.  Then all documentation must come to you for your final approval. Remember, it is YOUR business and not the PM's so lay down the laws and make sure your PM enforces them.

Always do a credit and background check on each adult that will be living in the property.  Of course most tenants will have less then perfect credit so don’t expect it to be perfect.  Verify that there have been no evictions.  You’ll want to verify their income and expenses to be sure they’ll have enough money each month to pay the rent.  You’ll also want to call their last 2 to 3 landlords.  Many times their current landlord will tell you anything you want to hear just to get the tenant out of their property because they’re lousy tenants.  They’ll lie to you so that their tenant becomes your problem, and no longer theirs.  The landlords before their current landlord will be much more honest with you.

If I have a property manager I still usually like to talk to potential tenants.  I introduce myself and ask a few questions.  Of course never give them your full name or the state you live in.  You don’t want them contacting you directly.

·       Ask “why are you moving?” a few times.  Asking this question a number of times over the course of the interview will give you a better chance at the truth.

·       How long did you live in your last residence?  How long in the property before that?

·       Inform them that you will be doing a credit check and a background check.  Ask them “what will I find?”  See if they’re honest.

Rent is due on the first, late after the third; and eviction starts on the fifth.  Evict immediately.  It doesn’t matter what the excuse or situation is.  You are not a welfare source.  They either pay or they are out.  You must have a very strict policy or you will be taken advantage of.  Of all the tenants I’ve had over the years, to date I have not found one that has been honest with me.  Unfortunately, they’ve all turned out to be liars, and very convincing liars at that.  There are honest tenants out there, you just never know which ones are so keep the same policies with all.  Make policies and no matter what you are told stick to them.  Tenants, like children, will push the envelope to see what they can get away with.  When they see that they CAN’T get away with ANYTHING, they will be much better tenants.  Just remember, that if your tenant can’t pay one month’s rent, they probably won’t be able to pay two months’ rent.

More to follow in my next post on Tenants.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

Today was another very productive day at our Granada Hills, CA REO rehab project. The plumbers put in the new pipes and fittings for the bathrooms (shower, bath, and sinks) and got rid of some of the old piping that was no longer used and just in the way. The master bath shower is completely framed in and the hot mop guys came out and did their thing. (Dang does that stuff smell!) After they completed the work, the shower was filled with water and then it will be checked tomorrow to be sure there are no leaks.

I went to our tile suppliers today and picked up some great looking travertine tiles that are 18" squares. They will go into both the master and hall baths for the floors and shower and bath. I got a smoking deal on these and when the buyers walk through this home, they will be very impressed indeed!

The finishing crew has all the new door jams and doors hung and the door moldings have been installed. Some of the baseboards have also been installed and it all looks great. Most of the paint prep is complete and the walls are ready for painting but that can not start yet until some other items are completed, such as the tile installation in the bathrooms and some electrical work in the bedrooms (ceiling fans and wiring install) as well as some other minor items.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

Today was a very productive day. Almost all the 6 panel interior doors were hung (they look great), much of the drywall and paint prep is finished, and the floors in the bathrooms that were bad have now been replaced. The master bath shower has been re-framed and the layout of the lighting and fans for the bathroom and shower are now confirmed.Tomorrow, I will go back to Home Depot and get some more electrical supplies and lighting fixtures and then install them so the finishers can complete the drywall and prep in the master and hall baths.Today also marked the first phone conference with our "Make Me An Investor" students and they had many great questions. The phone call went very well and was most productive. I felt very excited as if I was learning for the first time again! I enjoyed all the questions and hope that our students equally enjoyed the answers. I am very confident that with hard work and perseverance, each of our students will reach success!

Until next time, stay tuned. . .

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

Part II of our video series is now released. Today at our rehab project in Southern CA, we had some surprises in the bathrooms, completed all the demo work, got a great start on the drywall and paint prep, and even had one of our students present on site! He was able to walk the entire project with us, asked many questions and went back home with a greater understanding of how this business works.

Watch our newest video right here on our BP blog as well as on our website at www.nationwidepropertyinvestments.com/videoseries

Today, I had two crews working on the balance of the demo today on our Southern CA REO rehab flip. The bathrooms are now gutted and the walls are knowcked out in the areas needed where we will be re-arranging some items. I personally did the demo on the tiles in the family room where I will be changing the flooring to carpet to warm up the place.

The second crew finished the rest of the baseboard and door casing removals as well as the balance of the interior doors and jams (all will be replaced new). They also scraped the hallway ceiling where the acoustic was and the bonus room was prepped for painting. Tomorrow, the bathrooms will be looked over by myself and my contractor to decide exactly how much tile and other materials are needed.

I went to Home Depot again today to pick up the panel boards for the new skirt around the spa I wil have built as well as the cast iron tub for the hall bath. Unfortunatley, the trip to HD tok longer than expected, so by the time I got back, all the workers were gone, so I could not unload the tub out of the truck on my own. It remains there now as I had to leave it in my truck (no harm, no foul).

Today marked the start of our "Make Me An Investor" program and our students received the first weeks information to get started building their team. A phone conversation is set for Wednesday to go over in detail everything that is needed to accomplish as well as answer any and all direct questions our students may and will have.

What is even more exciting is that our students have been invited to the rehab project to see first hand the process in action. Not only that, more filming will be done on the project and any students present will have the opportunity to be part of the videos. There will be more opportunities for the students who do not make it to the job site tomorrow, as we will make sure each of them get first hand experience. Stay tuned for our next blog post which will update you even further on the process and the exciting things that are to happen!

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

Today was major interior demo day! I did much of the work myself, for one to keep costs down, and for two, it is great anger management! There are so many ways to release aggression doing demo work, and best of all, it is productive.

I took the sledge hammer to the bathroom countertops, shower tiles, and vanity. The only thing left in the hall bath is the toilet and the tub (my crew will get that on Monday). In the master bath, more of the same, but the shower is not finished with the demo work as we are moving some walls and re-arranging the layout.

The floor tiles in the living room were pulled up as well and the dumpster received lots of action today! My pool guy (also a very good friend of mine) drained the pool and cleaned it out. It is now ready to be re-plastered next week. It will look great when done and really add value to the home. My bathroom remodel crew starts Monday and they will finish the demo work, finalize the material order and start the rehab.

Stay tuned for the Monday report on this exciting rehab project and we should have more videos for you soon.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

We have finished the filming and editing of part one of our new video series, "Make Me An Investor" and you can watch the video by following us on twitter. Just go to my profile and click on the twitter link, "what am I doing right now"

As soon as I figure out how to embed the video right here on this blog, I will do that as well. If you know how, feel free to comment here with instructions. I appreciate any time saving assistance I can get!

As we work through this particular REO rehab project in Southern California, we will be filming the progress and posting the videos here on our BP blog as well as on our website at www.nationwidepropertyinvestments.com/ourblog so be sure to watch it. It will be a great learning experience and lots of fun too!

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

Our Granada Hills REO rehab project is moving along. Today, I took delivery of the roll-off dumpster for all the trash and demo debris. We also started the demo work on both the interior as well as the landscaping. Trees were trimmed back, bushes removed, etc. On the inside, we took down the pony wall in the living room, removed the old style wood paneling in the living room, and started the demo on the bedroom walls where we will adjust the closets (details to follow. Much of the demo work and debris was hauled into the dumpster which was placed in the front driveway. We are off to a great start!

I also finalized the timelines with the contractors as well as lined up some electrical work/planning to be done on Friday. My partner and I took a break for lunch and met a couple of fellow investors for lunch at the Bear Pit which is right around the corner. I have met several investors there, including one from BiggerPockets (You know who you are). Boy do they have great BBQ! Anyways, one of my friends we had lunch with was Rosie Nieto who runs a great real estate investment club in Los Angeles called the naked Real Estate Investors Club, "The bare truth about RE investing". We had a great time and she confirmed us as her guest speakers again for this August's meeting. All you local CA investors should come and check out her club and us speak! Her last meeting was a blast!

The best part about today was the video filming started and we got many great shots and footage which will be professionally edited and completed by Thursday, and then posted here and on our website shortly after. Let the videos begin!!!!! Stay tuned for my next post on this rehab project, as it will have real life videos of us in action.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

I was scheduled to close today with the Granada Hills, CA REO Rehab flip, as all the funds have been wired into escrow (last week), and all the documentation has been signed (no loan docs as it is all cash). Unfortunately, the people working for this bank and their escrow company have their heads up their (well you know the saying). My broker just emailed me the HUD which he JUST now received (we have been requesting it for a week now) and stated that in ALL his years dealing with REO's, these people are the biggest idiots he has ever come across.Oh well, guess we close Tuesday (I hope).

So I planned on doing some of the exterior demo today but could not as I don't officially own it yet, but I went there anyways to get a head start. First thing I did was water the lawn (on the banks dime!) and then I started cleaning off the roof which was full of leaves and pine needles that appear to have been up there for several years. I used a large push broom for some, but the best was the blower which blew that crap right off the roof. It was kind of fun, but dusty.Next, I trimmed the many tree branches which were hanging down over the driveway, over the roof, and over the front yard. They were low enough that you could hit your head on several of them. After that, I cleaned up the area, stacked the branches in a nice pile and filled up the trash cans with the debris. I spent about 2 1/2 hours there all together and the end result was a much more appealing look from the curb. You now have a clear view of the house from the street, as before, the view was blocked by the low hanging tree branches.

Assuming we close tomorrow, & it does not rain, I will start ripping off the wood paneling on the house in the back yard and hopefully get to the front as well. Once complete, the window installers go first, then the stucco guys go next. The two front windows facing the street are going to be ripped out and I will have the areas re-framed to hold a 3' X 5' replacement window rather than the long vertical existing ones. It will make for a much better curb appeal from the exterior and more wall space in the two bedrooms on the interior. I also will have the roll-off dumpster delivered so that all the demo trash can be tossed into there for easy storage and haul off.If it does rain, I will start on the family room wall demo work & the dining room wood paneling removal to get a head start on the interior. If I have time, I will also start on the bathroom demos which will involve removing the shower doors, removing the tub, removing the existing floor and tub tiles and removing the existing old and ugly cabinetry/sinks.

Photos and videos to follow. The video footage starts tomorrow. I am very exited about that. Videos will be posted here on my BP blog as well as on our website/blog - stay tuned!

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

I just announced a new program in which 4 individuals will be invited to learn right along my side as we invest for profits in real estate. I will turn 4 newbies into actual investors within a short period of time while utilizing some of the strategies which have made me successfull!

I thought it would be fun to blog about the progress of these individuals once they have been chosen so that everyone could hear about their upcoming success stories. Stay tuned as my BP blog will divulge the upcoming events right here and announce the lucky 4 individuals (code names may be used for their privacy if they choose)

Most of us know about the value of private lending and are always in search of more. Now more than ever, we need to utilize these types of funds as the traditional mortgage industry has been turned upside down. Banks and lenders are asking for ridiculous criteria and holding on to their funds rather than lending. While this can not continue forever, it makes it very difficult to do deals right now with the lack of liquidity, assuming you utilize leverage.So the questions become, how do we find more private funds, how do we market to them, how do we negotiate the terms and conditions, and how do we make sure we protect ourselves and the private investor from risk, loss, or legal issues. The answers are not easy, but can be done properly with the proper professional assistance, marketing plan, and having a prepared and professionally put together presentation.We at Nationwide Property Investments, LLC are aggressively looking for additional private funds so that we may take advantage of the best buying opportunity in our lifetime. If you have or know someone who has liquid funds to invest and are looking to earn high yield and safe returns, please contact us right away. The stock market is dropping dramatically, reducing most portfolios by over 35% this year alone. Get out now while you still have a portfolio and hedge against further losses.If you are currently wanting to use private funds and need assistance on accomplishing this, please contact us as well. We can answer your questions, get you started, and keep you within the legal aspects of this venture.

Nationwide Property Investments, LLC is a Real Estate Investment Company, investing in nearly every aspect of real estate. They educate others and bringing sound investment opportunities to their investors. Join the investor list at www.nationwidepropertyinvestments.com as well as their "members only" opportunity.

We now have our real estate investment system in Las Vegas, NV ready for our investors. This is a new and innovative program Nationwide Property Investments, LLC has developed for their investors. You can pick an area, pick the size, pick your price points, and pick all your criteria, then we go get it for you at extreme discounts and in many cases, for less than you could buy at REO listings. You NEVER pay more than your max price point and the property must meet all the criteria before we buy it.

This system has proven to be a valuable asset to a select number of original participants and is now available to ALL of our investors. Join our investor list on our website and email us the criteria and specifications you are interested in. This system is in place in other areas as well, so contact us with your questions or criteria.

We have the entire team in place including, but not limited to, lenders, property management, appraisers, title companies, handyman services, contractors, other service providers, and home inspectors.

www.nationwidepropertyinvestments.com or call 800-469-2260

Here is an article I thought was of vital importance to our investments in the Metroplex. It is one of many professional articles providing documentation on the large growth of population, the strong economy, and the rapid job growth experienced in Fort Worth. These are the main reasons why we at Nationwide focused on this area for our investments and believe you should to!

Editorial of the New York Sun, July 25, 2008

As the Congress considers whether to follow President Bush's lead in repealing the decades-old moratorium on drilling for oil on the Outer Continental Shelf and in the Arctic National Wildlife Refuge, it might want to take a look at what's happening in the Barnett Shale region in TEXAS. The recent history of the Shale, where innovative energy companies have turned a once impenetrable rock formation into the most important natural gas source in America, provides a testament to the professional competence of the engineers and geologists who find and obtain the energy resources that make America's economy possible. It also illustrates just how irrational the Congress's persistent opposition to drilling has become.

In addition to being the largest onshore natural gas field in America, the Barnett Shale sits directly on top of the Dallas-Fort Worth metropolitan area, which is home to 6 million people. Companies are drilling for natural gas underneath schools, underneath the Dallas-Fort Worth International Airport, and underneath residential communities, and the process so far has been a resounding success. The Shale is producing at rates that have exceeded all expectations, and it's being done in a major American city without disturbing the residents who live there. Surely the reindeer in the Arctic National Wildlife Refuge, on whose behalf much of the resistance to drilling in that area is based, are as amenable to the process of drilling for resources as the citizens of Fort Worth.

Meanwhile, the Shale's economic impact on central Texas is a reminder that oil and natural gas are not just fueling energy addiction and pollution; these resources also create wealth. While the national economy is suffering, central Texas is experiencing a veritable boom. The annual economic impact of the Shale is $22 billion, according to a study by the Perryman Group. The Shale has also generated nearly three-quarters of a billion dollars in local and state tax revenues, and has created nearly 100,000 jobs with more on the way. It's made a few billionaires, more than a few millionaires, and lifted thousands of fortunate men and women into sudden affluence. Would not a rational Congress rather these rewards accrue to Americans rather than our enemies in the Middle East?

Only a few years ago, drilling for the gas in the Barnett Shale was considered virtually impossible. "It is far more complicated to extract natural gas from shale than from other sources of natural gas, like sandstone," a spokesmen for Devon Energy, Chip Minty, said. Devon Energy has been active in the Shale since 2002, but until recently other companies have shied away from the area. Exxon Mobil, for instance, was late in buying an interest in the Barnett Shale even though its global headquarters is only a few miles away. Geologists and energy companies have known about the vast natural gas deposits in the Shale for decades, but the tight, almost impermeable nature of shale, a black rock formed from organic deposits 300 million years ago, made drilling there economically infeasible. A few decades of trial and error and a couple of visionary technological innovations later, and the Shale has become the most important natural gas field in America. The history of the Shale, Mr. Minty said, "shows the potential for energy resources across America."

Will Barnard - Managing Partner, Nationwide Property Investments, LLC

The “American Dream” is and has been to own your home free and clear without any mortgage payment.

If this dream is still valid today, how can it be explained that thousands of financially successful Americans, who have the funds to pay off their mortgage, choose not to. The American Dream has been passed down to us by our parents and grandparents alike. Many Americans fear a home mortgage, particularly when they are at retirement age. This way of thinking is very outdated, although valid back in the 1930’s. During the great depression, banks were legally able to call a mortgage loan due in order to receive a much needed cash infusion. The stock market had lost over 75% of its value, un-employment was at an all-time high, and real estate values were falling dramatically. Many homeowners lost their homes because they did not have the funds to pay off their mortgage and they could not sell the home because there were no buyers at the time. Due to this horrific situation, a new way of thinking was born. “You should own your home and never carry a mortgage”. This way, if the economy dropped suddenly and you lost your job, you would at least have a roof over your head. Since then, laws have been past that make it illegal for banks to call your mortgage loan due.

Today, it is no longer the case that we will live in our homes for 30 years and keep the same mortgage for 30 years until it is paid in full like our grandparents did. Today, the average person lives in their home for only seven years and according to the Federal National Mortgage Association, the average American mortgage lasts for only 4.2 years. People are moving to larger homes in better areas as well as refinancing for a better rate or to pull equity for home improvements and other expenses. These statistics show that it makes little financial sense to pay down your mortgage by applying additional principle payments and to have large amounts of equity in your home.

Ask yourself these two questions: What rate of return do you receive on the equity sitting in your home? Would you burry $100,000 cash in your backyard? The answer to the first question is 0 or nothing! For question two, most people would answer NO, however, a vast majority of home owners across the US are basically doing just that by leaving the equity in their homes.

Rather then allow your cash to remain dormant, pull that equity out and utilize it in any number of great investments. One option is real estate. You receive tax benefits such as depreciation, cash flow and property appreciation. Another option would allow you to invest those funds as a private mortgage loan secured by real estate and earn double digit returns on your money collateralized with real estate. Both of these options make you money! Isn’t that much better then having the equity sitting in the walls of your home making you nothing?

Even if you were to pull $100,000 of equity from your home in the form of a Home Equity Line at an interest rate of 7% ($7,000 annual cost) and placed those funds in a safe interest producing asset which produced a return of 7% ($7,000 annual gain), would you be exactly even at this point? The answer is NO! The interest you pay on your equity line is tax deductible (mortgage interest is 100% tax deductible in most circumstances) therefore, the true cost of the 7% loan is actually only 4.55% (assuming a 35% tax bracket). It is not difficult at all these days to find an investment vehicle which produces a 7% return.

Another problem with all that equity sitting in your home is that if sued you risk losing it. You want to look cash poor when an attorney looks at your assets. If liens show up against your homes and it appears you have very little or no equity then it may keep you away from a lawsuit. Most attorneys won’t work for free. If they can’t find a way to get paid through your assets then they won’t file the lawsuit.

In closing and most importantly, it is a very wise decision to separate the equity from your home to prevent losing it. If you have an equity position in your home and the home values in your area decline, you will lose that equity. If you separate it from the home, via an equity loan for example, you secure the equity by converting it to cash which then may be used for safe & conservative investments. According to a recent study, 67% of Americans hold the majority of their net worth in personal home equity. If we were ever taught to diversify our investments, this statistic shows a failure to practice that advice.

Retirement planning can be a bumpy road. Without the right investment vehicle, you may outlive your savings or suffer a lower quality of life to make ends meet. The government doesn’t make it easy, either. Taxes, Medicaid, estate planning, and a variety of other factors add to the uncertainty, putting your financial security in question.

Retirement is your opportunity to live your dreams. Don’t spend it on a modest income or, even worse, burdening your family financially. With the right assistance and vehicle, you can guarantee income for the rest of your life, so you can enjoy your golden years without worrying about the finances.

Finding the right advisors and vehicle to provide a secure financial future for retirement isn’t easy. However selecting competent and proven professionals for your team is a must. A word of caution on this subject: financial advisors are not legally obligated to place your interests ahead of their own. Simply put, it is not illegal for an advisor to put you into a fund that pays a higher commission to the advisor rather than a fund that produces better results for you.

It is hard to believe that our government would allow an opportunity for financial professionals to take advantage of the investor, but make no mistake, the opportunity exists. This is not to say that all of these advisors would operate in this matter, but simply to inform you of the risks. There are ways to reduce this risk by educating yourself, interviewing advisors, asking specific questions, and investigating their credentials.

Let us take a look at what the majority of advisors suggest you do with your retirement funds:

IRA’s and 401k’s Invested in Stocks or Mutual Funds:
A $250,000 IRA account receiving a 10% rate of return from stocks or mutual funds would yield $25,000 of income and subject to taxation when withdrawn. You would also incur fees from your fund manager or stock broker thus reducing your profits. If your account had a bad year and lost 10% of its value, you would have to gain slightly over 11.1% just to recover the loss. Investing in the stock market can produce positive returns and build wealth for your retirement, but it should not be the only vehicle used.

Mutual Fund Payouts for Retirement:
Placing your retirement on the guess work of a fund manager is not our idea of a sound investment strategy. Retirees must also choose which funds to withdraw and at what amounts. If you live longer, you could run out of money. If the market crashes, your payouts would be reduced. You also may be in trouble if you under estimate how long you need the money. All withdrawals are also subject to taxation.

Annuities:
These accounts give you guaranteed income streams lasting as long as you do, however, they are very costly and lock you into a contract. In addition, if you are passed a certain age, you may not have enough time to fund the annuity.

Now let us take a look at what the wealthy and informed do:

Your retirement accounts are NOT LIMITED to stocks, bonds, and mutual funds. You may “self-direct” your retirement accounts giving you 100% control over your financial future. You may then invest these accounts in real estate and loans secured by real estate.

Real Estate:
Purchasing real estate provides monthly cash flow, annual tax benefits (outside of an IRA), and appreciation. Real estate also provides a much higher return on investment (ROI). When you consider the ability to leverage your retirement accounts with non-recourse bank loans utilizing a self-directed IRA, your retirement account will grow much faster and can continue to grow while you take withdrawals after retirement. The same $250,000 IRA account referenced above but invested in real estate could receive over twice the return at half (5%) the rate utilizing leverage. A large majority of this return could also be tax deferred or tax free when withdrawn by using advanced legal tax strategies.

Non-Recourse Loans:
This is a loan in which you do not personally guarantee. Only the investment property itself secures the loan. In other words, the lender may only look to the property alone for repayment and not your personal assets such as your home, car or credit. When utilizing leverage in your IRA, you are not allowed by the IRS to personally guarantee the loan, thus, standard mortgage loans are not permissible. These loans require a minimum of 30% down on rental properties and may require more depending on the condition of the property and the cash flow.

I encourage you to maximize the earning potential of your retirement account by placing funds into a self-directed IRA. Then invest those IRA funds in real estate and watch your nest egg grow giving you the retirement of your dreams.

With the lending market pulling tighter and tighter on the reigns, or more accurately, eliminating most available funds for lending, it is necessary to look at other avenues for investment funding. One of the most common and widely used is private mortgage lending. This is where an individual with liquid assets takes the place of the bank and loans their funds to another in order to purchase real estate. These loans are secured by the real estate purchase, in the same fashion as a bank would do so (lien on property, named additional insured on hazard insurance policy, etc.)

   We at Nationwide have utilized private funds since we started in this business, and today are looking to increase that usage. In most cases, we are willing to pay an individual more than we would a bank, for the convenience and availability of those funds. Many investors are interested in real estate investments, but do not necessarily want the responsibility of the management and ownership of the property itself. Investing their money in the loans makes sense for them and they receive a set rate of return on their investment, unlike the stock market where you can not only reduce the return, but also lose some or most of the principle investment. The volatility of the stock market, particularly in recent months, is enough to scare away even the most sophisticated of investors. We welcome you all to the private mortgage lending arena with open arms and show our gratitude by delivering handsome returns for the investment.

   If you are interested in receiving double digit returns on your investment, secured by real estate, with no management responsibilities, no costs, no brokerage fees, and no worries, contact me immediately. Your funds may be cash, CD's, money market accounts, 401k funds, IRA funds, lines of credit, home equity, and more. I have current investment opportunities available now in a variety of different projects we are working on.