The Power of Building Emotional IQ

I listened to episode 380 of Lifetime Cashflow through Real Estate and here is some of what you I learned:
• Being aware of my emotions
• EQ vs IQ
• Empathy and EQ
• Ability to be self aware
• Knowing myself is the beginning of all wisdom

You have to have IQ, but that isn’t what will get you over the finish line. EQ or Emotional IQ is what gets you to your goals. EQ manages your social connections, empathy, and self awareness. It is the ability to self actualize. It allows you to manage your own emotions which isn’t something that everyone can do.

“The strength of character and the emotional intelligence to face your failure and learn from them are at the very core of success” – Robert Kiyosaki

This summary was written by Casey Ryan Richards.

Note Investing

January 31st, 2019

Think Realty Radio Podcast Review

On today`s episode of Think Realty Radio host Abhi Golhar interviews Bill Mincarow of PaperSourceOnline.com and the basics of note investing. This is a summary of that interview.

Bill Mincarow bought his first note in 1980. He also invests in single family rentals and farmland. He started Paper Source Online as a way to teach people how to invest in notes. He doesn`t sell notes or have any sales pitches.

* The Basics of Note Investing – What is a note?

A note is an IOU in its most basic form. With real estate this refers to the mortgage that is paid on a property. As a note investor you take over the role of the bank. In exchange for loaning money (or more often taking a delay in payment on a property you are selling) you collect payments and interest just like the bank.

* Benefits of Note Investing

The biggest benefit of note investing is that there are no tenants. When you own the note you don`t own the property which means that you don`t have to deal with tenants calling you in the middle of the night for maintenance issues. You have no responsibility for the property or repairs.

Also, notes give you higher yields than single family rentals. This is because notes don`t appreciate like houses do. Therefore, investors require more yield on their investments. In many cases the returns will be in the double digits.

Unlike ownership, there is no liability with note investing. If someone slips and falls on the property they sue the owner, not the bank. As the bank you have nothing to worry about.

Finally notes are easy to sell. Much easier then selling a house. You can even sell parts of a note.

* How is Note Investing Different from Stocks?

Notes are similar to stocks in how the interest rates effect value. If you have an 8% note, and rates go up to 12%, the value of your note goes down. Likewise, if rates go down the value of your note goes up.

When investors purchase stock they are third in line for repayment if something goes wrong. First comes the bond holders, followed by preferred investors, and finally the stock holders. This isn`t the case with notes. All notes are secured by property and note holders are the first to be paid off. Property owners even take out insurance that pays you back in case of loss!

* Buying Real Estate from a Distance

Buying single family rentals from a distance can be troublesome. Driving to meet people doesn`t work when you live far away. With notes you can be far away because you don`t own the property. Instead, you simply have an appraiser look at the property. Next you verify the Property, Paperwork, and Payer. After this you just collect checks in the mail. If you call a note a stock, suddenly you stop caring where it is located.

* Note Investor Yield vs. Debtors Interest

A common misconception about notes is that because you are earning a high percentage, that must mean that the buyer is paying a huge percentage. This isn`t the case. “The less you pay for a note, the higher your yield” says Bill. “When a note is created, it is created at a certain interest rate”. When the note is sold nothing changes with the rate the borrower pays. The discount that the investor receives on the note will determine the yield, but the interest rate to the borrower never changes. For example, the interest rate can be 1% and the yield 15% if the note is purchased at enough of a discount.

* Regulations

“Note investing is virtually unregulated” says Bill. It is not regulated by the Federal Government or 95% of the states. One notable exception is California, but it is important to remember that note investing is not lending. No money changes hands during seller financing deals. Instead you are simply delaying payment for the property you are selling.

Bill suggests taking his free e-course online at PaperSourceOnline.com

This summary was provided by Casey Ryan Richards. My website is http://www.CaseyRyanRichards.name/
I am a real estate investor and trader. I currently live in Rutland, Vermont with my husband Max. We maintain this blog as a collection of our notes from various Real Estate related podcasts. We have not visited any of the websites mentioned

Housing Inventory Crunch

November 6th, 2018

Think Realty Radio Podcast
Summary by Casey Ryan Richards (http://www.CaseyRyanRichards.name)

On today`s show Abhi Golhar interviewed Greg Rand of OwnAmerica.com on the real estate market. They discussed how the housing market is going through an inventory crunch. Buyers have started to get fed up with never ending property value increases and interest rates are making those properties less affordable. As a result, houses aren`t selling as quickly. As this occurs, values start to decrease slightly or slow their rate of increase, but this isn`t a problem. If you have a 20 year time horizon it doesn`t even matter and could be a good time to buy.

The market shift is leading to a more even handed market. Now sellers and buyers are on an even playing field. Inventory is staying on the market longer and opening up more options for home buyers. As wages go up, people will be able to catch up with the raising interest rates and home affordability will start to come back into line with incomes.

Greg also mentioned that for those out there trying to find a deal a great option is Huntsville, Alabama. It is a sleeper city that is positioned for great appreciation in the future. It is in the popular southeast region, has the perfect red state/blue city combo, and has auto industry jobs increasing. Plus the lower price of houses in the city will lead to higher yields for rental investment properties.

Abhi was also curious about retail trends affecting the return on real estate investments. Greg`s answer was Yes. Amazon is taking over the last mile. It used to be that you would pick up that last mile product from the store, but now you just order it online. Buying single family rentals near Amazon will probably end up being a good strategy, but investing in retail store fronts will be a loser.

The show is posted at ThinkRealtyRadio.com

Charles Sells Interview

October 29th, 2018

Think Realty Radio Podcast Review
by Casey Ryan Richards (http://www.CaseyRyanRichards.name)

On today`s episode of Think Realty Radio, CEO Eddie Wilson interviewed Charles Sells of Platinum Investment Properties (PIP) about his real estate investment strategies.

According to Charles, he earns an average of 16% return on real estate investments without the same level of risk as the stock market. They achieve this by being selective in the markets which they invest in. For example, they used to be in Atlanta, but as Atlanta became oversold they moved into Charleston. They are now buying in Augusta and Savannah.

At PIP they use data to determine the best places to invest. They are interested in area with strong economic indicators. For example, Augusta is strong because the Army has been moving jobs there. When the next market turndown occurs, they think Augusta will avoid the pain.

Charles says that the next turndown in coming as soon as 18 months from today. A bubble is forming similar to what we saw in 2006. US Home prices are at an 11 year high and in San Francisco alone properties appreciated 18% last year. That is unheard of. What the data says being the scenes however is that foreclosures across the nation are up 44% as of July. He sees a downturn soon.

Investors that don`t know what they are doing could be in trouble. With over 9,300 people attempting a flip last year, real estate investing is hot. However, more than 87% of those people lost money. This is what isn`t reported on HGTV shows. PIP attempts to provide people with a passive form of investing to avoid these pitfalls.

What they do is buy Tax Deeds. In GA they earn 20% on a tax deed for the first 12 months. If they person doesn`t pay, they can foreclose. This gets them a property at 20-30% of fair market value. This is the best way to get a property in any market. They fix it and flip it to their investors providing turnkey options. Everything is passive.

Charles can be reached by emailing Charles@Sells2000.com
Casey can be reached at http://caseyryanrichards.caseyandmax.com Eddie can be reached at http://www.thinkrealtyradio.com

Four Markets Ripe for Guts Jobs

October 11th, 2018

Think Realty Radio Podcast Review

On today`s show host Abhi Golhar interviewed Carol Ellis about an article from Think Realty Magazine called “Four Markets Ripe for Gut Jobs”. I had already read the article, so the podcast wasn`t much of a surprise, but it was still an interesting conversation.

Gut jobs will cost you at least $100,000 in almost any market and could cost $150,000 or more. Carol suggests finding a mentor if you haven`t done a gut job before.

The four markets best for gut job properties were:

1) Chicago – The age of the housing stock in Chicago is over 40% older than 1960. That is useful in finding old houses to flip and those properties can be purchased for 79% less than fully renovated houses. Zombie foreclosure and vacant homes are available at auctions in Chicago making properties easy to come across.

2) Detroit – Everyone knows Detroit has lots of homes needing flipping. It is also the location with the lowest retail value after repairs in the list with an average sale price of $261,000. Half of Detroit`s homes need help however and can be purchased for 59% of the after repair value.

3) Baltimore – As a native to Baltimore this one doesn`t surprise me, but the fact that anyone would want to live in Baltimore does surprise me. However, with a nice old inventory (40%) and strong home appreciation, this is an up and coming city worth looking at.

4) Houston – This is the only city on the list where the opportunity is limited. There are still tons of houses needing gut jobs from the hurricane and if you can get in now, you could make a healthy return.

Just remember, when going into a total gut job the budget is important. You won`t have the option of not finishing once you get started, so make sure you get the numbers right.

Casey Ryan Richards
http://www.CaseyRyanRichards.name