As investors after the thrill of seeing a property and you have come back down to earth then it is time to kick the tires. Many an inexperience investor has had buyer’s remorse and wish they had done their due diligence (due diligence another post) before purchasing a property.

We don’t have the space or time to go into prequalifying an income producing property properly here but I will try to give you an overview of the process.

First as always before you start looking for a property you must have a plan which sets limits as to:

·         What you are willing to invest in (Type of Property)?

·         How much you are willing to invest (Cash Available)?

·         How long you plan to keep the property (Time Horizon)?

·         Can you finance it or get it finance?

·         Who will finance it? (Bank or Hard Money)

·         What are the numbers that will fit my objectives (What’s my expected return on my investment)?

·         Are you willing to improve a property and if so what is my investment limit?

Once you have answered these questions then stick to them.

Since your plan is to purchase an income producing property then it is important to get actual numbers the same as if you were going to finance the property. Why do I say this? Because the lender is going to want to see actual numbers that can be verified by records that the sellers has.

If the seller can’t produce the needed documents then I have always found it is better to walk away with my wallet intact than be sorry with buyer’s remorse.

In later post I will go through the number process of prequalifying a income producing property since each type of property is qualified differently.

Remember! Success is achieved by those try and keep trying and where there is nothing to lose by trying by all means keep trying.

Curtis William Lee, Sr.
Mentor
Circle of Winners Master Mind Group

For more information go to www.cwlsr.com 

Or email me at cwlsr@cwlsr@cwlsr.com

As investors after the thrill of seeing a property and you have come back down to earth then it is time to kick the tires. Many an inexperience investor has had buyer’s remorse and wish they had done their due diligence (due diligence another post) before purchasing a property.

We don’t have the space or time to go into prequalifying an income producing property properly here but I will try to give you an overview of the process.

First as always before you start looking for a property you must have a plan which sets limits as to:

·         What you are willing to invest in (Type of Property)?

·         How much you are willing to invest (Cash Available)?

·         How long you plan to keep the property (Time Horizon)?

·         Can you finance it or get it finance?

·         Who will finance it? (Bank or Hard Money)

·         What are the numbers that will fit my objectives (What’s my expected return on my investment)?

·         Are you willing to improve a property and if so what is my investment limit?

Once you have answered these questions then stick to them.

Since your plan is to purchase an income producing property then it is important to get actual numbers the same as if you were going to finance the property. Why do I say this? Because the lender is going to want to see actual numbers that can be verified by records that the sellers has.

If the seller can’t produce the needed documents then I have always found it is better to walk away with my wallet intact than be sorry with buyer’s remorse.

In later post I will go through the number process of prequalifying a income producing property since each type of property is qualified differently.

Remember! Success is achieved by those try and keep trying and where there is nothing to lose by trying by all means keep trying.

Curtis William Lee, Sr.
Mentor
Circle of Winners Master Mind Group

For more information go to www.cwlsr.com 

Or email me at cwlsr@cwlsr@cwlsr.com

Marketing and how it is done has been one greatest question investors and real estate professionals have pondered upon and in the end still wonder about. Those who have tried to study the subject can still remain confused because so much has been written about it.

Like any business decision you should always start with a plan as in this case a marketing plan.

The Guru and Coach will more than likely tell you that there is strategic marketing and a tactical marketing. I will agree with them in this respect that you have to understand the concept but you will need real help in implementing them properly. The reason I say this is that markets are constantly changing. In the past marketers used regular mail sending letters and post cards. The generational changes that are taking place with the internet and programs like social networking will not work with younger generations.

As mentor I am weekly checking out new methods of marketing which will benefit the members of the Circle of Winners Master Mind Group.

In some ways marketing real estate is the same for both the investor and real estate professional in that they are both looking for either a buyer, seller or leasing tenant. However how you go about doing it is a completely different matter.

For more information about marketing go to www.cwlsr.com and the Ask a question” tab and I will be glad to answer your questions.

Curtis William Lee, Sr.
Mentor
Circle of Winners Master Mind Group

Last week I discussed the differences between the Guru, Coach and Mentor. We saw that the Guru and the Coach are money driven by the sale of their products while the Mentor is driven by your success.

For the next several weeks I will be addressing the important aspects of a good Mentor and what knowledge they should they be able to share when mentoring.

Here are a few of the topics that a good Mentor should be able to guide you through:

·         How to build a working business plan

·         What type of accounting and database management system you should use.

·         Marketing for the purchase or sale of properties (Marketing plans, Strategies & Implementation).

·         Prequalifying  income producing properties (It is more than NOI &DSCR)

·         Contracts and Agreements

·         Negotiating Contracts

·         Listing your property

·         Appraisals and Valuations

·         Real Estate Financing

·         Environmental – Phases I, II, and III

·         Due Diligence

·         Risk Management

·         Insurance – Type of coverage need for your business and properties

·         Real Estate Title and the Closing Process

Generally when you purchase training programs there is little or no interaction between seller and student. The cost is usually expensive and after a short time the student starts to lose interest in the program they have purchased.

It is different with the Mentor in that there is constant contact and an ongoing dialogue between the Mentor and student.

If you have an interest in being mentored at a low monthly cost of $38 per month ($456 annually) go to The Circle of Winners Master Mind Group.

Look tomorrow for “How to build a working business plan:

Curtis William Lee, Sr.

cwlsr@cwlsr.com

Guru, Coach or Mentor?

Recently I logged into a forum discussing Real Estate Guru’s. The idea was to debunk them as well as their material and the service that they provide.

The word intrigued me so much I decide to see what Webster had to say about it. Here is what he said about Guru, Coach and Mentor.

Guru – “An expert, a person with knowledge or expertise.”  (Buy my products and you are on your own)

Coach – “One who instructs or trains a performer or a team of performers.” (Buy my products and attend my seminars)

Mentor – “A trusted counselor or guide.” (No products or seminars to sell only there when needed)

When I signed up to become a member of the web site Bigger Pockets (www.biggerpockets.com) I had only one choice and that was to register as a Real Estate Coach. I must say according to Webster I don’t fit that definition. (Note: Bigger Pockets is a great site)

For years I have assisted others in business as well as in personal growth using the principals that I have applied in becoming a successful entrepreneur.

To be a successful real estate investor or real estate professional it is important to understand business principals as well as real estate. I am often asked questions about limited liability companies or what is the best management system or accounting system for my real estate business just to name a few.

I have always advised those whom I have mentored that it is important to work on your business instead of in your business. What I mean by this is if you are only doing the technical work and not equally doing the role of manager of your business as well as letting your creative juices flow as an entrepreneur you will be destined to almost certain failure as a business owner. (Remember whether you are a property owner or a real estate professional you are more than likely an independent business person or contractor.)

The Guru or the Coach will normally tell you how to do real estate whiles the mentor will not only tell you how to do it but will also show you how to do it. The mentor takes a personal interest in your success while the other two are usually product and sales oriented.

For those who are just starting out or not yet seasoned in the real estate arena I would recommend that you find a good mentor to work with you and personally guides you in your new venture.

Over the years I have been watching the cycles of the real estate market. In 1979 the interest rates went sky high and real estate took a real dive.

There has been other down turns in the real estate market since then and the same psychology seems to apply each time. Ride the wave while you can and not worry about the outcome.

Just at the start of the housing market boom my company bought a mortgage company which was doing residential mortgages and not commercial. With our business model we knew that the cycle would eventually turn and there would be a bust. So we changed the company to commercial funding.

Déjà vu all over again and now we are in an economic bust. So where do we look for the best long term investments that will provide a steady return on our investment with the least amount of time and energy? I believe it is the commercial real estate market for a few of the following reasons.

1.      If you invest in a multi-tenant property income producing property then you have spread your risk should you lose a tenant.

2.      There are always investors who are looking for commercial properties because when they sell they have to look for another property. These investors utilize a tax benefit called the 1031 exchange.

3.      In commercial investing there are fewer regulations dealing with tenants as opposed to residential in most states.

4.      When you look at the great wealth that has been accumulated in real estate in this county you will find that it has been in commercial real estate and not residential. Even Ray Kroc of McDonald’s fame said it best when he said that we are not in the hamburger business but in the real estate business.

These are just a few thoughts about the future and where you can be when the cycle starts it upward march. I believe it is time to start thinking and planning so you will be ready for the next boom.

Curtis William Lee, Sr.  www.cwlsr.com

I am proud to announce our new t v station that came online today. We have established new method of communications for our members.

Take a look at circle of winners

Yesterday in Orlando, Florida I presented a class on the Fundamentals of Commercial Real Estate.

The basics of Commercial Real Estate were covered in a three hour session to include the types of contracts used for commercial properties, industrial, vacant land and agricultural properties.

Also covered were Due Diligence, length of time to close a transaction as well as how to structure the sale.

The last hour covered how to prequalify commercial income producing property and finance it.

The students were residenial real estate professionals who wanted to know more about commercial real estate so they could expand their business.

The area of commercial real estate is wide open to those who want to become professional in this area of real estate. The number of professionals is limited but the opportunity to increase the personal income is much greater.

I enjoy very much mentoring real estate professionals as well as investors who concentrate on commercial properties.

To join my Circle of Winners Master Mind Group please go to cwlsr.com

I have found over the years that the majority of real estate investors have mainly focused on residential real estate. I believe this is due in part because of television ads that have promoted the culture of no money down.

Many have invested their money and not seen any results bacause they have not had a mentor or been a member of a specialized group to work with or learn from.

Investing in commercial real estate usually takes a larger investment and a higher level of knowledge to become successful. The return is usually greater than residential.

It is just as important to have a mentor that you can consult with and a group of like minded investors to share ideas with and learn from their experiences.

When to become a member of the Circle of Winners Master Mind Group you have the benefit of both.

I will be instructing a seminar in "How to Invest in Commercial Real in July. To find out more go to cwlsr.com . 

I am now offering a training class for investors so that they may do a preliminary prequalification of a income producting property

You can contact me at cwlsr.com 

On June 25, 2009 I will be instructing a class on the fundamentals of Commercial Real Estate. For more information please gp to the Emerald Institute for more information.

I will be announcing soon my next free online meeting where you can ask me questions

Curtis William Lee, Sr.

Join me by atttending the Fundamentals Class in Orlando, Florida on June 25, 2009.

Please go to: Emerald Institute to register.

Look forward to seeing you there.

Curtis William Lee, Sr.

Welcome to your blog. This is your first post. Edit or delete it, then start blogging!