The Most Incredibly Highly Effective Habits of Successful Real Estate Investors Cont'd Part 7

Budgeting Revenue

We have finally arrived at the last incredibly effective habit of successful real estate investors; budgeting. WOW! This is a tough one ladies and gentlemen. I think it is common to forget, but we all know in the back of our heads that if we do not budget, we are sitting in a sinking paddle boat.

I wanted to share some quick tips on budgeting for your real estate investing business. Enjoy.

• Create a worksheet using your bills and payouts for the last two to three months so that you can effective monitor the expenditures.
• Make room on your worksheet for rewards for great investing days, weeks, or months.
• Go through the books/records and calculate the gross average of income.
• For each of your expenditures, determine an amount that realistically reflects your actual expenses and then set a spending level that allow room for saving some of that income.
• Subtract the total expenses from the total income to arrive at your net income.
  
• If the number is negative, your expenses are greater than your income. Your situation can probably be greatly improved by changing your spending habits of your real estate investing business.
• If you have a positive net income, transfer most of it to a savings or investment account at the end of each month. Extra cash left in a business checking account has a way of getting spent.
• After you've tracked your actual spending for a month or two, analyze your spending to identify where you can comfortably make cuts.
• Once you've got the budgeting process in place, take an in-depth look at your largest spending categories, brainstorm about ways to reduce spending in specific categories, and set realistic goals.
• Update your budget and expenses monthly.
  

Budget...Budget...Budget!!!


Blessing to your Real Estate Investing Business,

Milton B. Yates
www.miltonyates.com

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The Most Incredibly Highly Effective Habits of Successful Real Estate Investors Cont'd Part 6

Business Partnership

The second to last incredibly highly effective habit of successful real estate investors is having a business partnership. A partner is defined as a person who shares or is associated with another in some action or endeavor. They are a sharer or an associate. A partner is a person associated with another or others as a principal or a contributor of capital in a business or a joint venture, usually sharing its risks and its profits.

It is very important that this person is chosen wisely. A business partner should be like minded and have similar entrepreneurial goals. Here are some major reasons why having a business partner is important:

• With a partner, there is more than one brain in operation to discuss and make business decisions.
• Great partners are able to share the load and permit you to take personal time needed for family, vacation, or otherwise.
• Your partner should be able to compliment your skills. Whatever your weakness within the business, your partner should be the strength in that area.
  
• They also must be able to share in the MAJOR risks when the unplanned occurs - because in any business it always does.

This incredibly highly effective habit can MAKE or BREAK your Real Estate Investing Business. Trust Me. Take your time and choose carefully. A business partnership is JUST LIKE A MARRIAGE. Wins, Losses, and Ties fall on all parties involved. I was fortunate enough to choose the right partner in Valarie Jacobs and together we have become the #1 Real Estate Investors in DC, Maryland, Virginia, and Dallas, Texas. Our company, A.S.A.P. Community Solutions, Inc. has become a powerhouse in real estate investing and looks to move to wherever the market permits. We both are coaching both newbee and veteran investors in their real estate activity and gained a great bit of experience through successes AND failures. So much so that we share them with our students through "the What and the How."

“The What and The How”™ of A.S.A.P. Community Solutions is an educational company that teaches wealth building strategies primarily through real estate investment. The company offers learning opportunities for real estate investors around the country through various on-site seminars, coaching programs, teleseminars, and an interactive membership website. Milton B. Yates and Valarie Jacobs pride themselves in giving both the WHAT and the HOW in creative real estate investment education. Their students and coaching clients have experienced extraordinary success through their mentorship, interactive training, and hands-on approach to teaching the principles of real estate.

Now get out there...and find you a good partner!!!!!


Blessings to your Real Estate Investing Business,

Milton B. Yates
www.miltonyates.com

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Overcoming Location Drawbacks with Pre-sell Changes DC/MD/VA/DALLAS

The right house in the right location 

is the combination that sells. But 

what happens when the right house is 

in a location that isn't perfect?  As 

the seller, you might be able to 

overcome some location problems with 

pre-sell fixes. To the right buyer, 

a perk here and there could make your 

property very attractive.  The main 

thing to remember is that you can't 

change some location problems. You 

can't do anything about the school 

system, the distance from the closest 

grocery store, or the city's street 

signage.  Still, some location problems 

can be minimized.

If recent changes to traffic flow have 

created street noise around the property, 

you might be able to create landscaping 

that minimizes the noise and distracts 

the eye.  The house itself can overcome 

location problems if it is the best in 

its price range.  The seller should take 

extra steps to make sure the house is 

perfect, with new flooring or carpeting, 

fresh paint, sparkling windows, and 

gleaming fixtures. Perfection paired with 

price is an aggressive and successful 

combination.  A great deal on a great 

house can make a buyer overlook a lot of 

location problems.

With the right combination of perks and price, 

the seller puts himself in the position to find 

the right buyer, someone who isn't sensitive to 

street noise or doesn't mind a drive to the 

grocery store.

Blessings to your Real Estate Investing Business,

Milton B. Yates

www.miltonyates.com

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The Most Incredibly Highly Effective Habits of Successful Real Estate Investors Cont'd Part 5

Continuing Education

In the real estate investing world; techniques, loopholes, and strategic secrets almost change by the week. Although it is unquestionably imperative that you follow a system or model of conducting business, you must also consistently press to learn new information about your industry. As quickly as the mortgage rates change by the day, the negotiation method that you used to close a deal last month is not working for investors anymore.

Remember that "what you have now is only a result of what you have done. If you desire a different result, you must change what you're doing."

Continuing Education Ideas:

• Find a local REIA, real estate networking society, or other type of group where you can learn through conversation. Anytime you get a large amount of real estate investors in a room, the conversation is all about the most creative deal that investor has done up to that point. You can engage in conversation or you can decide to be a sponge-fly on the wall and soak all the good information in.
  
• Enroll in specialty real estate investing courses. These courses can potentially help you pin point where you may be missing it. Deals are lost and won in the details.
• Sign up for as many different real estate investing newsletters and blogs and look to hear the difference in strategies from investors all across the world.
• Plan to read at least one book per month related to real estate investing. The newspaper does not count and will trick you into not investing at all.

Try these tips and see how far you can get. Only the most incredibly highly effective real estate investors will even apply this knowledge.

Blessings to your Real Estate Investing Business,

Milton B. Yates
www.miltonyates.com

Learn Real Estate Investing in DC
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The Most Incredibly Highly Effective Habits of Successful Real Estate Investors Cont'd Parts 3 and 4

These next two most incredible highly effective habits for successful real estate investors hits home with just about everybody I come in contact with. There is no real estate investing business that can survive the times with them. It is impossible, yes impossible, to sustain the decline of retail buyers, wholesale buyers, and investors without a very strong Buyer’s List and a very strong source or many strong sources for Private Money.

Build a Buyer’s List

I am pretty sure that if you’ve been following along you may have run across my article that touches on how to effectively build a buyer’s list through free ad sites. I can’t say enough about the importance of “THE LIST.” If you do not have anyone to sell your properties to and you do not plan on holding these deals yourself, why are you going out and securing contracts. I really want you to play close attention, however. There are some extremely large buyer’s lists that you can either buy your way into through education or that you can buy online through different list brokers. Although you need to get a buyer’s list, the size does not matter. You want quality, well educated investors who can close the contracts you present to them. It is very clear to see who is buying and who isn’t if you look at affiliations and the contract assignment fees of aggressive wholesalers. If you have 25 legitimate buyers, you are ahead of the game. There is no use in having a list of 800 people if they don’t buy.

I have one more note about the buyer’s lists; you need 3 of them. When you do ads and different solicitations of buyers and investors, you need to make sure you are targeting buyers with different interests. There are retail buyers who are usually possible owner occupants. There are investors who generally need to purchase at 65% of market value less the repairs needed. The last group is the wholesale buyers who are looking for anything that they may be able to hold to rent or lease option for a number of years. In our market, this is the smartest investor. Make sure to change your titles and ad (solicitation) content to appeal to those different groups. Even if it is the same house that you are marketing to attract these buyers. I guarantee you won’t have any trouble building a quality list with this highly effective habit.

Solicit Private Money

Ever since my business partner and I ever got into real estate investing, the first thing we were told to do was to solicit private money to use on our deals. I don’t think we really understood how important it was until we started getting deals and started getting stuck. The rules of the most incredible highly effective habits of successful real estate investors requires that there should be an ever-constant pursuit of private money. You can never have more than enough available to use on transactions of all sizes and terms. I have definitely shared with you a few effective ways to solicit private funds but once again I would say that the free ads sites are one of the best ways to find private funds. Private investors comb the internet looking for the best ways to use their idle funds.

You just have to let people know that they aren’t alone in their frustration with low returns on your investment dollars. And in response to that problem, you have created a solid program that will eliminate the low returns that they are now receiving, and pay them a passive, predictable 10% to 12% interest from real estate notes. It will work, I do promise. Just make sure you never touch the funds. Always have private funds wired to the title company you are using for the transaction and secure all monies with the actual real estate being purchased. This avoids any claims of fraud or theft. Private money is certainly a most incredible highly effective habit of successful real estate investors.

Get with the program!

Blessings to Your Real Estate Investing Business,

Milton B. Yates

www.miltonyates.com

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Warning: Don’t Even Think About Investing Until You Understand the 7 Habits of Highly Effective Real Estate Investors - Part 1 and 2

Time Blocking

One of the most important keys to successful business (whether it be real estate investing or not) is the process of time blocking. This activity requires setting time aside for high priority tasks. Time blocking should take place in both your personal and business worlds. A great way to gain ground on your adversaries is to block time for activities outside of your primary business. These activities way include exercise, vacations, and even spa days. Personal time creates a renewed self and should be very high on the priority list for any business person. When you’ve set aside this personal time, you’ve created an extraordinary edge. Every business person must then turn around and block time for the tasks that a day cannot go without. In the real estate investing world; running comps, making follow up phone calls and sending emails, going on appointments, and marketing are the major functions of a principal of any investing business. Just as the personal time should be distributed, the blocking of time done for your business should be carried out without interruption. You are simply creating mini appointments with yourself that you should honor as if they were with others. This 1^st habit will certainly turn you into a Highly Effective Real Estate Investor.

Proficiency in Property Valuation

If you are a plain Jane investor who wishes to know exactly what you should offer on a property, you are ahead of the game. A lot of investors fail to use formulas when they calculate whether a real estate investment lead is actually one at all. Calculating the amount of equity in a deal is futile if your percentages aren’t correct.

What to offer: On a standard cash purchase an investor should be looking to spend no more than 65% of the value less the repairs needed - based on the sales of the homes in the same subdivision with the same specs. Homes that exist amongst new construction and shopping areas must still prove their worth through SALES. There will be no question whether a lead is a good deal or not. If you are having problems with Property Valuation, visit www.RealEstateCompRunners.com, they can definitely help you. This 2^nd habit will put you in another league of Highly Effect Real Estate Investors

Blessings to Your Real Estate Investing Business,

Milton B. Yates

www.miltonyates.com

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Tax Deductions for Real Estate Mortgages Using Interest

The interest you might pay on either a primary residence or a vacation/getaway home (secondary residence), is fully deductible. There are some very stiff limitations on these
deductions, however.

Let's first clarify the difference between an acquisition loan and a home-equity loan. An acquisition loan is simply monies borrowed for the purpose of purchasing a property. Deductions
for acquisition loans can be made for up to $1,000, 000. A home-equity loan is a credit line that is solely secured by the equity the borrower has in a particular property. Deductions for home-equity loan can be made for up to $100,000.

It is imperative that an acquisition loan be used to buy, construct, or significantly improve a property. If you refinance your property for more than the outstanding debt you owe, the excess must be used to improve the home for the loan to qualify as an acquisition loan. If the excess monies are not used for this purpose, it is counted as a home equity loan.

I think an example is fitting for understanding this concept. Let's say you want to take advantage of low mortgage rates and refinance your existing $250,000 loan, you do not plan to use any of the money for home improvements, and your house is assessed for tax purposes at $750,000. Based on your credit and the equity in your house, your lender is prepared
to give you a mortgage loan of $500,000. Because your "acquisition" indebtedness is $250,000, you will only be able to deduct interest on $350,000 of the loan, that is, the acquisition indebtedness plus the maximum $100,000 home equity. The remaining interest is treated as personal interest and is not deductible.

The IRS has ruled that a homeowner does not have to take out a separate home equity loan to qualify for that aspect for the tax deduction.

Blessings to Your Real Estate Investing Business,

Milton B. Yates
www.miltonyates.com

The Auto-Response of the Century for Real Estate Investing...DC, Maryland (MD), Virginia (VA), Dallas, Texas

If you have been keeping up with some of the articles and blogs I have posted around the web, you would have noticed that I spend a bit of time on the four pillars of success: personal development, business systems, direct response marketing, and real estate investing.

In my real estate estate investing business, my partner and I use several auto-responders through our website to grab the attention of both motivated and unmotivated sellers. These automatically generated messages are sent via email and our personalized to the prospective seller. I wanted to share with you one of the messages we send our clients that gets the very best response. Wherever you see my company's name put your company name in. This is a MAJOR freebee. Take Advantage, Copy and Paste.

___________________________________________________________________

Hi (Sammy Seller),

Milton and Valarie here again, the home buying
Wise Guys with 3 simple steps to selling your
home FAST!

Step 1:
>> Make up your mind to sell
your house FAST!

Just because you're reading
this email means you've
contacted us and that puts you
into a group of people called
'doers'!

The next step is simple to make
up your mind your going to DO
this thing called selling your
home FAST

Step 2:
>> Call 'Wise Guys Buy Houses' at
202.327.5435

... today, right now while it's
still on your mind.
You'll get one of us

Wise Guys on the phone and then
and we'll ask you a few simple
questions (the whole process is
TOTALLY easy and painless - We
promise)...

Step 3:
>> Kick your feet up on the
table and wait while we dig
deep into our 'super-house-
buying-wise' knowledge to come
up with a way to quickly solve
whatever house selling problem
you're having right now ...

... come up with a way for
EVERYONE involved -- YOU, the
new buyers of your home, and
Wise Guys buy houses -- to benefit
...

And We'll make you an offer on
your home!

Then your home can be sold and your
Stress relieved in as little as 9 days!
All you have to do is take three little
steps!

We know you can do it -
the Wise Guys are standing by!

Talk soon,


mv@WiseGuysBuyHouses.com
202.327.5435

P.S. We just wanted to make sure you
didn't forget what that number was,
it's our private office number - simply
call:

===> 202.327.5435 <=== And we'll get things started fast! _____________________________________________________________________ I promise you this will have sellers calling you all day long.

Blessings to your Real Estate Investing Business,

Milton B. Yates
www.miltonyates.com

Learn Real Estate Investing in DC
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What's New in Real Estate Investing in DC, Maryland (MD), Virginia (VA), Dallas and More

Investors that have been looking for one of the hottest new ways to get involved in a lower risk real estate investment opportunity, I have some great news!!! Major Builders around the country will sell you, the investor, the model homes they occupy and they will pay you rent! Model home leasebacks are rare opportunities where you can buy the Builder's model home and then immediately lease it back to the builder for a secure cash flow until the community is built out. The builder is the actual Tenant! Many times they lease the model homes back up to 5 years! Model home leasebacks are one of the most secure investments you can own, and as a result, are also one of the most sought-after investment opportunities in the country.

The builder leases the home back from you at closing! There is a written lease that spells out all terms including a 6 month move out notice! The builders will even help you sell it or rent it before they move!

Investment Example A $200,000 Model Home with 10% down leases for $1,583.33/mo with all the POSITIVE CASH FLOW benefits below! Taxes Paid by Builder HOA Fees Paid by Builder No Property Management Fees Maintenance Paid by Builder Repairs and Upkeep Paid by Builder Immediate Long Term Tenant! Reliable Rent Payments Fully Loaded Home at Today's Prices Homes are Meticulously Cared for at No Cost to You Excellent Cash on Cash Returns Easy Resale - A lot of Buyers want the Model!

The properties have prices ranging from the low $180's to the low 300's. All will cash flow with as little as 10% down and should be an excellent long term investment opportunity for those that can act quickly and are qualified. Blessings to your Real Estate Investing Business, Milton B. Yates www.miltonyates.com Learn Real Estate Investing in DC Learn Real Estate Investing in Maryland (MD) Learn Real Estate Investing in Virginia (VA) Learn Real Estate Investing in Dallas, Texas

Classifieds for Real Estate Investing in DC, Maryland (MD), Virginia (VA), and Dallas, Texas

I wanted to take a few moments and give some quick pointers on placing classified ads in local newspapers. Every "serious" real estate investor should have a classified ad in the daily paper 365
days per year. There is no question that this ad will pay for itself. If you know how to qualify the leads generated and structure sound deals, your ad will pay for itself 100 times over! There are
some key things to observe when running ads to get better results.

• Ask your local newspaper/periodical about a yearly contract rate. You can get as much as 25% off by agreeing to run your ad for one full year.
• Run the ad under "Real Estate Wanted" or a similar column in your newspaper.
• Try using both a one step ad and a two step ad to test which is more effective in that particular periodical. A one step ad is where a prospect seller calls you directly. A two step ad is where your prospect sellers call into a toll-free number of sorts and receive a recorded message. The toll-free phone service then tracks that number and you are able to call them back and offer your assistance.
  
• If you're using a one step ad make sure a live voice answers the phone, not a recorder.
• As long as you are receiving at least 10 calls per week, your ad is working.
• You will not be successful running ads only in the Sunday paper in an attempt to save money. It will cost you 100 times what you save. You should run your ads daily.
• Find out what it takes to get your ad at the top of the column. It usually produces more calls. If all you need is to begin with "A", simply add "AA" in front of the ad adn leava space before the first word.
• Check your ad weekly for mistakes, omissions, and placement position.
• Contact other investors that are advertising in the same newspaper and network with them. Ask them if they are interested in buying houses wholesale from you or selling you their excess inventory.
  

Blessings to Your Real Estate Investing Business,

Milton B. Yates
www.miltonyates.com

Learning to Build a Real Estate Investing Team in DC, MD, VA, and Dallas, Texas

Successful Real Estate Investors and those who are
looking to build a largely successful real estate investing
team must first understand and internalize the Law of
the Bench. Famous author, motivational speaker and
team-builder, John Maxwell spends a great deal of time
engaging his students with this same Law of the Bench.

I can tell you now that the New England Patriots have
this Law down to a science. We all understand
that the depth of any team determines its success, it is
clear why the Patriots have been a huge force in the NFL
regardless of whether they win the Superbowl in 2008
or not. Our real estate investing teams must seek similar
depth if overall success is the goal.

The future of any real estate investing team can be
determined by 3 major things:

1. Recruitment - Who is the joining the team?
2. Training - Are you developing your team?
3. Losses - Who is leaving the team?

Today's bench could be tomorrow's stars. The success of a
support member can multiply the success of a primary member.
There are more bench players than starters. A bench player
correctly placed will at times be more valuable than an primary
player. A strong bench gives a leader more options. Usually, the
bench is called upon at critical times for the team. Make sure to
keep all of these factors in mind when choosing your supporting
cast.

Here are a few questions you may want to ask your prospects,
your team, and yourself.

1. What are some ways that you can come off the bench?
2. Why is it important to focus on the support player?
3. If this is the most critical part of the game for your real estate
investing business, are you playing to your fullest potential?
4. What does playing your role feel and look like for you?
5. How do you see yourself on this team?

Remind all of your colleagues, associates, and team members that
"Whether you prepare or not, you are preparing. Lack of preparation
leads to destruction. Lack of preparation gives failure permission. If
you are not preparing, you are preparing to fail. Either way you are
preparing for something. If you consciously are preparing for more
success, you find it." Real Estate Investing is about thinking outside
the box. Success in this industry has nothing to do with Ability and
everything to do with Will. There is absolutely no success or victory
without a risk of some sort.

I leave you with a great poem by one of my favorite authors,
Rudyard Kipling:

[IF]

If you can keep your head when all about you
Are losing theirs and blaming it on you,
If you can trust yourself when all men doubt you
But make allowance for their doubting too,
If you can wait and not be tired by waiting,
Or being lied about, don't deal in lies,
Or being hated, don't give way to hating,
And yet don't look too good, nor talk too wise:

If you can dream--and not make dreams your master,
If you can think--and not make thoughts your aim;
If you can meet with Triumph and Disaster
And treat those two impostors just the same;
If you can bear to hear the truth you've spoken
Twisted by knaves to make a trap for fools,
Or watch the things you gave your life to, broken,
And stoop and build 'em up with worn-out tools:

If you can make one heap of all your winnings
And risk it all on one turn of pitch-and-toss,
And lose, and start again at your beginnings
And never breath a word about your loss;
If you can force your heart and nerve and sinew
To serve your turn long after they are gone,
And so hold on when there is nothing in you
Except the Will which says to them: "Hold on!"

If you can talk with crowds and keep your virtue,
Or walk with kings--nor lose the common touch,
If neither foes nor loving friends can hurt you;
If all men count with you, but none too much,
If you can fill the unforgiving minute
With sixty seconds' worth of distance run,
Yours is the Earth and everything that's in it,
And--which is more--you'll be a Man, my son!

--Rudyard Kipling

Good Luck Building your Real Estate Investing Team,

Milton B. Yates
www.miltonyates.com