As you may know, in the Real Estate Investing business, You've got to Buy Low ("DEALS") and Sell High (the closer to Perfect you Fix-up the Property, the better you're able to enter the Retail Market (MLS) of highest sale prices).

You can Buy Distressed Property or find a Distressed Owner. Then Fix-up the Property and Sell or Rent it.

To be Successful you've got to keep finding these "DEALS" otherwise it's like you're treading water. OK to tread in a Lake but this business is more like a River so Treading ends you down river, breaking even or losing money.

One way to fill your "Pipeline" with Deals is with the Marketing Magic from National Expert Kathy, who'll Teach us How YOU can be Successful with that "PIPELINE" of opportunities! Tuesday, January 28, 6:30-9pm & Saturday, February 1, 10:00-3pm2025.

Another way for finding DEALS is Tony Youngs Hidden Market techniques. Tony shared page 1 of his Goals on his Thursday (1/2/25) evening webina
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The Wall Street Journal (re-posted on Realtor.com) is reporting that home insurers are pushing for big rate increases along with weakened consumer protections.  In addition, the WSJ says they are increasingly getting what they ask for.  According to their report, state regulators across the country appear to be adhering to industry demands, fearing that insurers will exit their states.

States are also giving home insurers almost everything they ask for on rates, an analysis conducted for The Wall Street Journal suggests. The average state-approved increase since the start
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There are 3 figures that go hand-in-hand when trying to determine a commercial/apartment property's value. They are; Net Operating Income (NOI), Cap Rate (CR) and Asking Price or Purchase Price (PP). If you know 2 of the figures you can always figure out the third.

I will be talking about the NOI of a property. More specifically, how NOI is calculated as it relates to an apartment building.

We are going to start with a simplified version of how to arrive at the NOI of a property and then expand each category. Basically, the formula is: Income -Expenses (other than debt service) = Net Operating Income.

INCOME:

First thing, I determine the income generated by the property. I start with the Gross Potential Rental Income (GPI) or Scheduled Gross Rental Income (SGI). Both terms are used interchangeably within the industry. The GPI assumes that all apartments (100%) are rented at full market value even if some are actually vacant or discounted.

For our example, I will use a 30 unit apartment building that has all 2 bedroom, 1 bathroom units with market rents of $600 per month each. Th
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As you can imagine, I meet a LOT of real estate entrepreneurs every year.

And something that I’ve noticed about many of you, including newbies and old pros, is an energy you give off that I can only describe as clenched-upness.

Even folks who are excited, on the surface, about starting or expanding their real estate businesses are often simultaneously radiating a sort of anxiety about the whole thing.

Yes, I understand that what I (and your sellers and buyers and private lenders, by the way) am really feeling is your underlying fear.

Whether it’s a fear that you’re being sold a bill of goods by all the folks (like myself) who tell you that there’s unimaginable money in real estate, or a fear that it works but you can’t do it, or a fear that you WILL succeed and then be judged because you have money and your friends and family don’t, it’s definitely there—at least in most people that I meet.

But there are others, and some of them ARE brand new, who are JUST excited, because (sometimes in the face of all evide
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Fannie Mae and Freddie Mac: Cornerstones of the U.S. Housing Finance System

Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are pivotal entities in the American housing finance system. Created by Congress, these government-sponsored enterprises (GSEs) ensure liquidity, stability, and affordability in the mortgage market. Let’s delve into their roles, functions, and impact on housing finance.

Key Functions of Fannie Mae and Freddie Mac

1. Providing Liquidity to Mortgage Markets

Fannie Mae and Freddie Mac purchase mortgages from banks, savings institutions, and mortgage companies. By doing so, they provide these lenders with cash, which can then be used to issue new loans. This cycle ensures that lenders have the resources to meet the ongoing demand for home loans.

2. Packaging Mortgages into Mortgage-Backed Securities (MBS)

The GSEs package the purchased mortgages into mortgage-backed securities (MBS), which are sold to investors. By guaranteeing the principal payment and interest on these securities, Fannie Mae and Freddie Mac attract investors who might not traditionally invest in mortgages. This process:

• Expands the pool of funds available for housing.
• Makes the secondary mortgage market more liquid.
• Lowers interest rates for borrowers.

3. Stabilizing the Ho
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I remember when I attended my first seminar back in the 80’s the speaker said you have to have a system and discipline. I knew what the system was because he was teaching it. But I did not know what the discipline was until I began to apply the system. The discipline is that you have to take the action to make the system work properly. Through months and years of trial and error, I now know what he meant by discipline. I had to discipline myself to always take action, even when I didn’t feel like it. Despite all the easier softer ways of doing things today, I still sometimes don’t feel like it. But I force myself to take action.

Many years ago, I found something on the internet that I printed and framed and it is on my office wall. It’s called, the “7 Excuses”.  I can’t do it, I’m not feeling it right now, I’m too busy, I’m too tired, There’s no guarantee it’s going to work, I’m not good enough, and my luck sucks. I still to this day do not know who the author is, but I read that from time to time to keep me motivated. I always check to see if I’m making excuses. Let’s break it down.

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A sale-leaseback is a unique real estate transaction where a property owner sells their assets to a buyer and then leases it back from them. This arrangement allows the seller to continue using the property as a tenant while the buyer becomes the landlord. Sales leasebacks are particularly useful for businesses and individuals looking to access liquidity without sacrificing operational continuity.

Let’s explore the details, benefits, and drawbacks of sale-leasebacks.

How a Sale-Leaseback Works

1. Sale: The property owner (seller) sells the property to a new owner (buyer) for cash.
2. Leaseback: The seller becomes a tenant, leasing the property back from the buyer, who now owns it.

Benefits of a Sale-Leaseback

1. Access to Capital
   The seller can convert an illiquid asset (the property) into liquid capital immediately. This is particularly advantageous for:
   • Paying off debt.
   • Investing in growth initiatives.
   • Funding operational expenses or acquiring new equipment.
2. Continued U
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How Sweat Equity Can Boost Your Property’s Market Value

Introduction

When it comes to determining a property’s market value, factors like location, size, features, and age come into play. While you can’t change some of these aspects, others are within your control – and that’s where sweat equity comes in. Instead of paying for costly upgrades, you can increase your property’s value through hard work and hands-on improvements. In this post, we’ll explore what sweat equity is, how it works, and how you can leverage it to build real estate value.

What Is Sweat Equity in Real Estate?

Sweat equity is the increase in property value generated by your own physical labor and improvements. Unlike hiring contractors, sweat equity involves taking on tasks yourself, from small fixes to major renovations. Not only does this approach save money, but it also creates a tangible investment in the property’s overall worth.

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