This past week, one of my new clients asked me the following: “Peter, my entire business is focused on flipping houses, mostly to real estate investors. To tell you the truth, I don’t see how the internet is going to help my business?”
Here’s my answer to him and to anyone else:
The internet is a goldmine for such a business. Consider this . . . If you are a real estate wholesaler or flipper, then your main sources of end buyers are other investors including rehabbers.
Where could you find other investors and rehabers on the internet?
There are many sources for that, but today I would like to talk to you about one source, social media. In fact, BiggerPockets is one website where you can find thousands of other real estate investors who are looking for what you have to offer. Few other websites including Facebook and Twitter offer the same opportunities.
I’ve come across what was once a road-block and have created a workaround. With creative thinking there is always, and I mean always, more than one way to skin a cat.
This past week, my Re/Max broker gave me an award congratulating me for having the 9th most sales in the region. In order to achieve this, I had to sell over a million dollars in real estate in each of the last two months. And I can tell you… you have to sell a lot of condos at $30,000 to sell over a million dollars in real estate. This got me thinking a little bit about what am I doing right. I asked myself, “What am I doing that has afforded me the ability to sell so much real estate in what some call the worst housing market in our nation’s history? What do I perhaps do differently than the average Realtor, that enables me to do a lot more business?
An 
Many landlords are attracted to markets with a large institutional presence because they offer stability. Hospitals, universities and government agencies rarely make major cuts in employment, and they very rarely close. That means your prospective tenants are not likely to leave.
So, why does the IRS Section 1031 like-kind tax-deferred exchange exist in the first place? After all, doesn’t the government relish every taxable opportunity? While the government is certainly not adverse to taxation, they also use the tax code as a tool, encouraging or discouraging certain acts they deem beneficial or detrimental to the economy. As it turns out, the private sector is pretty darn good at providing housing to society (a lot better than the government). As such, Uncle Sam provides various benefits to real property owners (mortgage interest deductions, real estate investment expense deductions, ability to depreciate, etc.).
I purchased my first investment property in Victorville, CA. It was an REO that looked ok on the outside but I had no idea what I was going to find inside. When I opened the door to take a look inside I couldn’t believe anyone could live in such conditions. The place looked and smelled like a garbage dump. I am not kidding, it literally looked like one. Roaches would cascade down doors I opened them up. I think they were upset that I disturbed their sleep, lol. The previous owners pets no doubt had full range of the house, but especially in this one particular front bedroom. The smell of urine was so bad you needed a gas mask. Even though the property was in need of many repairs it was still a great investment.
There are some Real Estate Investors & Entrepreneurs alike who are wasting their time with Social Networking.
Diversification is the key to any good investment strategy. Parochial and or dogmatic mindsets will certainly catch up to any entrepreneur and be the kiss of death to his enterprise. Most real estate investors are aware this fact yet many stubbornly cling to a small geographical area. Despite the advice given by the great Andrew Carnegie who said, “put all your eggs in one basket… and then watch that basket,” I just feel a little better knowing that the total value of my real estate portfolio is not dictated by the fortunes of one town.
Joshua Dorkin
Our World Has Rolled Over
by Tom Koziol | September 11, 2009I realize I am not the only guy on this planet who reads the “news” as presented both in the newspapers and on the Internet. Even if I didn’t read the news, I’d get a good dose of what people are calling reality. That dose comes from the mix of clients our insurance agency serves. Lucky me…
Here are two sentences taken from two separate news stories:
Is it me or are these two sentences sending conflicting messages. If it is me, I apologize upfront. However, I don’t think it is me.
Failure Ahead
According to published reports, so far this year, 81 banks have failed. Last year only 25 went down the toilet while in 2007, if you’re counting, only three went south. These same sources project hundreds of more banks are expected to fall. The primary reason given is due to souring loans for commercial real estate.