This site is dedicated to the real estate investor. If you’re searching for real estate strategies, tools, news, and real estate lessons, you've come to the right place. Why should you take the time out of your busy schedule to read my blog? My resume includes successful “subject to” investing, short sales, mobile home flips, and bird-dogging. And I’ve done all of this as a part time investor. The website's theme is "how to invest part time and get out of the rat race." I chose this theme because I believe the majority of investors fall into this category. Realistically, if 100 people take a real estate course, maybe 30 will use it for 30 days and hopefully 1-2 people will actually buy a house. Once in a while one investor will breakout and figure out the “systems”. I want you to be one of those that break through. I will disclose all I’ve learned since I got started in real estate investing, post pertinent real estate articles, reveal my secrets on how to begin, discuss market conditions, suggest buying strategies, point you to free downloads, and more!
Check out my REI Analyzer!
March 1st, 2008
I’ve been getting a lot of positive feedback on my REI analyzer. Its a great tool to evaluate properties quickly so those offers can be sent out! Check out the link above. It sells for only $9.99!
Still on the sidelines….
March 1st, 2008
Wow, It seems forever that I’ve been on the sidelines.. I think in mid-2008, I will looking at addition properties. In the meantime, I will carefully be looking for the right opportunites.
There’s no rush! So, far all of my existing rental properties have been performing as planned. Its been 3 years since I picked up my first townhouse, and so far no evictions with many more units!
By the way, I am still supporting my REI software, the feedback has been very positive. Check out the link above!
On the sidelines…
July 29th, 2007
Its been almost half a year since I’ve made my last post. Its amazing how time flys (especially as a person grows older). In the last six months, I’ve concentrated more on family than real estate. At this time, real estate is a second job, however, I am pleased with all of my investments so far. They have been working very well. No evictions, no missed payments for any of of my rentals/notes.
What I have been doing is keeping a sharp eye on the real estate market here in Tucson. Conclusion, its a great time to buy! I haven’t see much pain in this area, the banks are not giving away properties, and there’s a LOT of listings that are still over priced. I bet my pre-foreclosure business plans would be working great in 2007.
I am glad I didn’t listen to my investor friends that said sell everything you’ve got in your portfolio! I’m riding this one out just fine, and in the long run, I’ll be making a killing.
I still have not sold any of properties. I still have single families, condos, and tri-plexes in the portfolio.
I am waiting for a land deal to hit that will position me for an apartment/commercial project. I think from here, that is the way to go. Now, if I can only find that motivated seller!
By the way, my REI analyzer has had great reviews and I use it all the time to check cashflow. Its been a great tool to get to the bottomline. Its only $9.99 (Check the link above)
5 Things you probably didn’t know about me.
December 29th, 2006
I got tagged from Trisha’s Blog to play a little game of “5 Things you probably didn’t know about me.”. Thats cool, this actually gets me started back writing on my blog. I haven’t submitted a post in over a month, call it an extended “Blog vacation”.
Here goes:
1) I’m a cancer, so the topic of money is near and dear to my heart. I talk about real estate and money so much, my wife just rolls her eyes when I bring it up!
2) I was raised in smaller towns, so you will never see me living in L.A. or New York! I like a slower pace in life and enjoy a lot of outdoor activities such as fishing and hunting. For example, I got drawn for a coveted Buffalo tag in Arizona and got one!
3) I am a part time investor. I am also a engineer working in the defense industry.
4) I treat myself to a “cafe mocha” once in a while. Kinda of like Casey Serin, only, I have a budget for it. Eating is one of our past times, and its been tough not to pig out during the holiday season! I’m only about 10 lbs over weight, however, keeping good health is one of the most important things we can do. Doesn’t matter if you have several millions in the bank if you don’t feel good.
5) I would like to invent a doodad to get out of the rat race, however, I feel its going to end up being several commercial properties.
My son is tugging at my leg right now, so I’ll have to re-post my victims on passing this thing on!
Looking for a quick/effective way to analyze rental properties? Check this out!
November 30th, 2006
I’ve been analyzing rental properties for years and the “number #1 “ time consuming activity is running the numbers and making offers.
The most important lesson I’ve learned is creating systems to run your business more efficiently. In evaluating rental property, this spreadsheet is a must have!
Using my Real Estate Rental analyzer you can determine in minutes the “maximum allowable offer” (MAO) you can make on a property that will allow you to reach your cash flow goal.
Why is this spreadsheet so effective?
I know how to evaluate rental properties from the many years investing in real estate. I’ve included all the pertinent equations that you need to quickly assess the deal. Starting with an assumed monthly cash flow, the spreadsheet calculates the following:
- Max Allowable Offer (MAO)
- “Built in” Equity
- % of Loan to Value
- Capitalization Rate
- Rent Multiplier
- Average cost per square foot
- Return on Invest (ROI)
Don’t understand all of these equations? No problem, I include a manual that clearly explains the numbers. For the beginner, this is a perfect learning tool. For the intermediate and expert, it’s a fast and effective tool to get to the bottomline so you can make more offers in a timely manner.
Promotional price of only $5.99. For more information, Click here
Good investing!
Tip #7 Don’t over price your rents!
November 23rd, 2006
Easy enough to say, but for some landlords, the greed in squeezing out an extra $50 dollars can be costly!
Tenants know the “true” market value in rents. If you price it jsut $50 dollars over, its amazing how hard it is to get applications.
I’ve been watching a house in my neighborhood for about two months now. Its real nice and its exactly the same floor plan and square footage as the house that I am currently living in. If you remember, I am under contract on new construction and plan to close in January, so I’ve been using the house down the street as a data point to compare. However, I fell off my chair when I found out that they trying to rent it out for $1350 a month! I priced my out at $1050, maybe $1100 on the high end. And sure enough , its been months, and this place is still not rented. It appears that a professional company is advertising. If I was the owner, I would not be happy.
Setting the right price can be a art, however, my investor friends rent their places using rents in the lower range. Why? They want them rented out quickly! If you lower your rent by just $50 a month ($600 a year), it might save you a rent payment because you will find a tenant quicker. Scan craigslist, newspaper ads, and call local rental signs for data points.
I’ve been using craiglist as a feeler to price out the market, and I know my price range is more reasonable than the other house. At that price, the house will sit for months and the owners will just be frustrated. Maybe I’ll make an offer? 
Buy in “good” locations to hedge price drops..
November 1st, 2006
In the last week, I’ve been real interested in absorbing the latest real estate news from local news papers, real estate bubble blogs, business websites, the personal investor magazine (just came out), and Arizona paid subscriptions of market analyses.
One observation I’ve made is that you need to be very careful interpreting market “averages”. The bottomline, real estate markets are local, not national, and prices can/are strong in some cities, but will be weak in others. One source said, “If you have your left foot in freezing water and the right one in boiling water, on average are you comfortable? ” Of course not!
What not to do..
October 28th, 2006
Poor Casey Serin A 23 year old ambitious investor that broke every rule in the book and is paying for it!
I posted his link for several reasons.
1) To remind us that you can lose in real estate.
2) In all of his posts, I didn’t see any sort of plan or analysis. If you don’t write the numbers down (all of them), how can you expect to be successful?
3) This blog has whats called “resonance”. He took a blog that he started only months ago and is now ranked just over 28,000 (out of over a miilion) at technorati. Thats amazing!
Moody’s Economy’s price forecast for major real estate markets
October 17th, 2006
I am trying to avoid posting “doom and gloom” real estate articles because there’s a lot of blogs doing this which will ultimately turn off a lot of investors. As far as I’m concerned, real estate is one of the best investing vehicles and you should be always involved and not be on the sidelines.
However, understanding your local markets is critical to select the right buying and selling strategy to maximize profits. I want to pass on this article from the CNN finance website
These studies never provide the details you really need to determine how confidence level of the numbers, but the results are based on experts in their field and you cannot just ignore the data. After looking at the numbers, you can see that Arizona and Nevada will be hit the hardest in terms of percentages. California will still have the largest price drops because the median home prices are so high!
In my town of Tucson, they are predicting that the low won’t be in place until Q2 2008 with a 13.4 % reduction in price. Last year, we had an approximately over 20% appreciation, so we are going to give some that back in the next year or so. This is interesting, they don’t see the correction taking place within one quarter (more like 2 years) and if you think about the duration of the up cycle, this is probably reasonable.
What does this mean? It means you have some time to get ready to pounce on the market! Use strategies to leverage yourself. Example, right now is a good time to look for new construction. Interest rates are still low , rents are increasing, and prices are dropping. Remember, the numbers need to work!
At the Builder’s mercy..
October 15th, 2006
I hate being on the short end of the stick when doing business. Buying a new construction house makes YOU be at the mercy of the builder and you will not be in control.
I want to lock in as soon as possible for my new loan. The inhouse lender says that I can lock up to 60 days from closing. Ok thats fine, the building says that we should be closing at the end of December. The problem is , the “official” closing date is provided to the buyer after the kitchen cabinets are installed. Is this at the 60 day mark? Probably not. So, the lender won’t work with unless I get an official date.
This leaves me hanging on my interest rate, if the market turns for the worst, I’m stuck, nothing I can do. If I’m a lucky man, interest rates will drop. We’ll just have to wait on see!
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