Deals...Even in Michigan!

Just got this email from SecretsOfRealEstateMillions.com member, David, in Michigan. David's a dentist and just reported...

"Jerry
My brother and I just closed on a house in Bay City Mi. we profitted about 15K on a 30 K house. What a learning experience...We sold it with a bout 20k in equity for the owner (young family which we wanted to help them, figure win win for all, we profit and so do they) Now looking for the next deal, just taking it slow here in Michigan. Sign me up for clearpath soc"

By the way, info on ClearPath Society is available at http://www.JerryJonesDirect.com or http://www.ClearPathSociety.com

There's deals out there! Jerry

Real Estate Education & FREE Information for Busy Dentists - For more information visit http://www.SecretsofRealEstateMillions.com

Ugly Commercial Market Ahead - GREAT OPPORTUNITY!

Just read this interesting article about Commercial Real Estate. If you want the most up to date articles, check out news.google.com and type in "Commercial Real Estate Foreclosure Rates"

What does this mean to you? Great bargains! You'll actually be able to buy stuff based on cash-flow model!!

http://www.bizjournals.com/denver/stories/2009/06/22/daily43.html

Real Estate Education & FREE Information for Busy Dentists - For more information visit http://www.SecretsofRealEstateMillions.com

Ron LeGrand EXPOSED

A really great video from the "master" you gotta see!



Real Estate Education & FREE Information for Busy Dentists - For more information visit http://www.SecretsofRealEstateMillions.com

Where else is Jerry?

If you're wondering where I've been lately:

You can check out my other blog over on Wordpress.com

It is: http://www.jerryalanjones.wordpress.com

Also, be sure to visit my newly re-vamped and simple site: http://www.jerryjonesdirect.com

You can follow me on Twitter, too. I post some hilarious stuff!

http://www.twitter.com/jerryajones

And finally, if you're on facebook, add me as a friend!

http://www.facebook.com/profile.php?id=843408129

Adios, Jerry

P.S. I have an announcement I'll likely make mid-February about my activities right NOW in real estate investing. I'm working through the bugs on a brand-new investment vehicle that has shown a few of my friends a nice 45%+ return in their IRAs using small dollar amounts! I can't wait to proof it out and share it!

Real Estate Education & FREE Information for Busy Dentists - For more information visit http://www.SecretsofRealEstateMillions.com

Sir Richard Branson on Economic Recovery

I thought you'd appreciate Sir Richard's outlook. I think he's right
on target.

Once again, it's up to us "little guys."

Let's get it done...Jerry

Branson on Business: It's up to all of us entrepreneurs

http://www.openforum.com/finance/video_bransonclip_financialcrisis.html

A message we should listen carefully to?

Hey,

Check out this story:

http://www.contrarianprofits.com/articles/commercial-real-estate-the-next-show-to-drop/9049

If you're buying properties, they better be cash flowing.

If that message hasn't sunk in by now, then you're doomed to get into trouble.

With the rush of people from residential to commercial (developers, builders, investors), there's bound to be a mess made soon enough.

The patient will win at the slaughter!

How to Handle an Un-Motivated Seller in this Market

Believe it or not, there are a lot of sellers out there that reality
has yet to hit.

House prices are still high in many areas; but time and an increased
need or perceived need will soften the beach head.

In the meantime though, it can make buying or making offers frustrating.

There are two ways you can handle sellers like this:

1) wait for time and circumstances to change their mind or their
lives; or,

2) go on to the next seller.

If you choose #2, be sure to go back on occasion and check in on the
seller you skipped.

Because, when time and circumstances change, you want to be there for
them.

Adios, Jerry

Success Magazine Article

Check out page 86 and 87 in this month's issue of Success magazine. It's the one with Donny Deutsch on the cover (The Next Big Idea guy).

Great and short article on Real Estate Investing right now - plus, there's a tie in with the last post I made on depreciation.

Is there really a better investment than real estate?

Yes. There is. But, the answer may surprise you.

I'll reveal it in my next post. One you WON'T want to miss.

Adios, Jerry

Real Estate Education & FREE Information for Busy Dentists - For more information visit http://www.SecretsofRealEstateMillions.com

Depreciation - How to use if to your almost unfair advantage

The last couple of posts I've written, I've talked about depreciation some.

You know what BAD depreciation is (see last two posts). 

So what is GOOD depreciation?

Answer: The kind that is associated with Real Estate Investments!

OK, so smarty, here's the real definition for Depreciation associated with real estate investments...

Checking my handy-dandy Barron's Real Estate Guide, here's what if says:

"Realty that is subject to deductions for depreciation. Depreciation here, is allocating the cost of an asset over its useful life."

What that means is that every year, you get to DEPRECIATE your property and take a DEDUCTION OFF YOUR TAXES for this depreciation.

How cool is that?

I'll tell you...but you have to wait for the next BLOG post. But, trust me, you'll like it even more, and then, all this depreciation stuff will tie in together.

Oh, BTW, if you've bought a new car in the last 2 weeks AND have been a  reader of my Blog, SHAME ON YOU!

Adios, Jerry

Follow-up to last Blog Post...BAD Investments

So what is the definition of a Depreciating Asset?

In my last blog post I mentioned them.

To define, let's first define 'Depreciation.'

1) Depreciation in accounting terms means, "allocating the cost of an asset over its estimated useful life."

2) Depreciation in tax terms means, "an annual tax deduction for wear and tear and loss of utility of property."

3) Depreciation in automobile terms means, "a decrease or loss in value due to age, wear and tear or market conditions."

Believe it or not, there are more definitions. Would you believe it also means, "an instance of disparaging or belittlement?"

OK, so what are we talking about?

For the conversation yesterday, let's focus on #3. 

Do you have a new or newer car?

In the last 5 years, I've had 6 new (to me) cars. The cheapest one, a new Dodge truck, cost just under $40,000. I owned if for 3 years. I just sold it for $21,000. I put 39,000 miles on it. Can you believe I spent, after tires, maintenance, insurance, etc. are considered, over 70 cents a MILE just to look cool and feel good?

I just bought back a 2004 Lincoln Navigator I originally bought new for $59,000. I sold it for about $28,000 after 2 years. I just paid $13,000 to buy it back. It has only 72,000 miles on it and is in great condition and runs very well with a 2 year warranty remaining.

In an estimate of fast math just now, I figured I have spent over $250,000 on worthless sheet metal with motors and brakes attached in the last 5 years. 

If I had that invested in 12% student loan notes which my dental assisting school sells, any idea how much I'd have made over a period of just 24 months? A lot.

The lesson here: DO NOT BUY NEW CARS. Stupid people with small brains and a personality disorder buy new cars. I can say that because I am a reformed New Car Buyer. If you're buying new cars, THINK before doing. THINK about your kids or grandkids or spouse or favorite non-profit...heck, even your retirement plan!

Instead, buy used. 2 year old or older. Let some other moron swallow the depreciation. 

You know, I even KNEW I was the moron at one point, but my ego didn't care. 

Financial literacy, as Robert Kiyosaki says, is the beginning of your wealth education. Get literate. Figure out what terms like DEPRECIATION mean and USE that to your advantage.

Next Blog Post: Depreciation and USING it to your practically UNFAIR advantage in... REAL ESTATE Investments!

Adios, Jerry

The Worst Investment Every Dentist is Guilty of...

It's been too long and I've been too distracted with other 'stuff' to BLOG, but now I'm back.

I know, I know, you're so excited you can hardly keep yourself from hitting DELETE.

But, hang on...The next couple of BLOG posts will be well worth your time, especially in THIS

economic climate.

Why?

Well, because now seems like an appropriate time to mention the worst investment ever:

It's not necessarily stocks. It's definitely not real estate (contrarily, now is

about the best time EVER to be an investor).

It's NOT your home.

It's not your ex-wife. (Although some clients I know have no choice!)

Quite honestly, it's...

Vehicles.

Yes. Cars. Trucks. SUVs. (Note: I am not talking antiques.)

Most of us are involved in this really, really stupid trap.

And, I'm super guilty.

We buy depreciating assets, like cars.

You know: Crap that devalues the instant we take possession.

Granted, sometimes it can't be avoided.

However, my experience tells me most of time it can be.

Where does the problem start?

Simple. MOST folks out there don't understand the word 'depreciation'

nor do they understand how to COMBAT it.

My next couple of emails will speak to both these subjects.

We'll get into what depreciation can mean (bad and good).

And, I'll hit the easiest things you and I can do kick the crap out of it.

After all, it's robbing us blind; most of us ignore it. Smart people USE it to their advantage!

Adios, Jerry

Best Advice for ANY Business...Not Just Crabbing

I'm a huge fan of Discovery Channel's Deadliest Catch. 

Capt Sig Hansen is the owner of the Northwestern and one of the show's main characters in the REAL real life drama.

In a live chat back in 2007, he gives some great advice we should all think about:

Ttommy farrel: How do you always catch the most crab?

Sig: We've been fortunate the last few years. One thing I've noticed is that if the fleet hear of a hot spot, they tend to huddle together and fish that area the next year. We've been sly in venturing in the opposite direction and finding crab elsewhere. I think a big advantage in doing that is even if there's less crab per pot, there are less pots to compete with. That makes your average better and you can fish in an area longer, hopefully having a better season in the end.

So...The deal is: Are you following the rest of the fleet? Or, are you going against the grain?

Trump...To the Rescue!

Thought you might find it interesting that even Trump deals in Foreclosures on single family homes:

http://www.dallasnews.com/sharedcontent/dws/ent/stories/DN-peolede_0816gl.ART.State.Edition1.4dcbf31.html

Geez, and I thought the market was terrible...Ha!

Real Estate Education & FREE Information for Busy Dentists - For more information visit http://www.SecretsofRealEstateMillions.com

LeGrand, my mentor, Throws FREE Event

You know, I thought my mentor and friend Ron LeGrand(R) had done a wonderful job in the past with his amazing customer appreciation events...I mean, 5 days and an endless array of entertainment, prizes, and some of the best trainers in the country. But this time, he's gone WAY over the top...Imagine: real estate training AND entertainment from the likes of Jay Leno, Henry Winkler, Terry Fador...and MORE

Click here to get the details. I hope to see you there!

http://www.cac08.com/jones

Adios for now, Jerry

Real Estate Education & FREE Information for Busy Dentists - For more information visit http://www.SecretsofRealEstateMillions.com

Why Raw Land is a Great "Niche!"

Raw Land is a great "niche" within real estate investing. Why?

There's little if any cost in pre-screening properties and once you do a few pieces of raw land in a given area, it just gets easier and faster the more you do.

 

Since the investment is mainly in time, one of the things I like is I can squeak it into small time blocks I have or in the late evening or early morning hours whenever it's convenient for me.

 

Just these couple of aspects makes Raw land one of my favorite "niches," if you will, in real estate investing.

 

But, there's even more!

The reasons are many:

1)   No physical improvements to inspect

2)   You can see if it's in an area of potentially increasing value or in the "Path of Progress"

3)   You generally can have a clean slate to work with

4)   There are a multitude of Exit Strategies and options to include staggered options

5)   There is a definite amount of work you know that has to be done to get it to the point of being developed, as far as the land is concerned (irrespective of local or state government requirements which can change and are numerous).

6)   It's generally easy to see what you are getting

7)   You can sometimes slice and dice; buying it by the gallon and selling it by the shot

8)   It's usually easiest to get seller financing when purchasing and, when structured properly, you can offer seller financing when you sell, too.

The Art of Pre-Screening Raw Land

I conducted a one-hour training today for Platinum Members of the SOREM community (SecretsofRealEstateMillions.com) and it turned out quite well.

I've included the first few of my 17-item, quick-prescreening checklist:

I. Location in relationship to assumption you know marketplace. Everyone knows the axiom: Location, Location, Location. Dunes Landing property is good example.

II. Price – High, low, similar. If high or low, why?
a. If low, could be problems, looking for fast sale,
b. If high, may have a plan in place, entitlements, approvals, due diligence you need only verify
c. Ask Questions when you get to that point.

REMEMBER: You are looking for CLUES that lead you to believe there is a distressed property, unsophisticated seller or motivated seller!

III. Motivated Seller – How is it advertised, wording, offering creative deal structure.
a. Motivated Seller!
b. Seller Financing!
c. Seller Leaving State
d. Must Sell This Weekend
e. Partnership Problems!
f. Foreclosure!
g. Bank REPO/REO
h. Owner Will Carry
i. Kick me I am down!

Anyway, there's the first three things I analyze when beginning to look at different raw land properties.

Later this week, I'll post the big reasons WHY RAW LAND is a great niche in real estate investing to be involved in!

Go Make an Offer!
Jerry

Real Estate Education & FREE Information for Busy Dentists - For more information visit http://www.SecretsofRealEstateMillions.com

What's next for the economy?

The reality is, no one knows. What I do know is that residential real
estate values here in my town, Salem, Oregon, are plummeting. And,
very quickly.

Houses in OK neighborhoods that would have sold for $200K+ last year
are now selling in the high $160s!

What that means for us as investors is that have to continually buy
better and better (translation: pay a lower and lower amount below
the ARV, or the quick re-sale value) to protect ourselves. This isn't
the time to run and hide! It's the time to get some incredibly great
deals!

Not sure or don't have a full grasp on what's going on in your area?

You need to. In fact, if there's one thing you should ALWAYS stay up
on it's your local market.

A great place to learn more: www.realtytimes.com and click on Local
Market Conditions.

Plus, subscribe to a local CCIM's newsletter (visit www.CCIM.com and
contact a local CCIM agent near you to ask if they publish one - a
state of the market type publication). I know our local Coldwell
Banker or Prudential (sad, cannot remember which one) puts out a
quarterly report on the local commercial real estate, which from my
view, is incredibly over-valued in our area.

Tom Cowan, my partner on several projects, and contributor to my
regular Raw Land and Commercial Property LOS Program Newsletter, has
created an incredible Special Report on the economy a few weeks back;
much of what he reviewed and talked about in his report is already
coming to fruition.

LOS Members/Subscribers will be receiving this report in the mail
over the next few weeks.

Get a handle on what's going on locally. You can't predict the future
but you can follow trends, look for signs and invest strategically
for the long haul!

Now, Go Make an Offer!
Adios, Jerry

How to Get Apartment Owners Calling You!

If you have apartment owners or other land owners calling you and asking you to buy vs. you calling them and asking to buy, who's in the better position?

Who's seeking who? Is it better to be sought after then seek? In this case, yes.

I've been a student of direct mail advertising for over a decade. I've generated millions of dollars of sales...through the mail.

There are tricks to the trade, formulas and writing styles all to be considered yet, none of that matters if you don't have a list of people you can help.

I've developed a system that is still in the beta test stages that I am using now to get local and out-of-state apartment owners calling ME so I can take their problems off their hands.

It's NOT just a series of letters and postcards designed to get motivated sellers to call; it's also educating and positioning and more!

Anyway, I'll be talking more about this amazing tool and how it's working for us in the coming months.

Adios.

Real Estate Education & FREE Information for Busy Dentists - For more information visit http://www.SecretsofRealEstateMillions.com

You want to Wholesale? Part II

Ah...So today is strategy #2, and it's a more advanced strategy than driving areas you want to find deals in.

SO here we go:

#2 Mail postcards (see http://www.JerryRecommends.com for the best source) to areas you are currently driving. If owners are not at the address, the mail can be fwded to them. The best place to get this list is either via MelissaData.com, InfoUSA.com or, do what I did and contact our local county assessor's office and ask what types of variables you can request mailing lists under. I like SFR (single family residential), non-owner occupied, delinquent on taxes and if possible, code violators. These are all signs of potentially motivated folks.

And, most importantly, do NOT mail these folks one time. I've bought many houses after mailing to someone 2, 3 and even 4 times before they called me. Since their situation changes, you have to be in front of them when it does, offering to take a headache off their hands.

In a future post, I'll cover How to Snag All the Wholesale Buyers you'll ever need!

Now, Go Make an Offer!(TM)

~ADIOS, Jerry

Real Estate Education & FREE Information for Busy Dentists - For more information visit http://www.SecretsofRealEstateMillions.com

So you want to find WHOLESALE deals, eh?

One of the fastest (However, most saturated) places to make money fast in real estate quick-turn investing ala Ron LeGrand(R) is the ability to wholesale property.

Wholesaling is when you find and sell quickly, a house that needs repairs, that is under market, and generally at the local area's median price or below. The Buyer is generally a landlord-type, or a rehabber-type.

Sometimes, depending on your area, you can find REOs (real estate owned or Bank Owned) properties that fit this bill. You simply buy direct from the Bank via their agent/broker and make offers on as many houses as you can using, as a purchase price minimum guide, Ron's time-tested formula of MAO=70% of the ARV minus repairs. Or, if you want to get modify that to MAO=ARV-Repairs times 70%. You'll get two different numbers. The second scenario gives you a $9,000 difference.

There are two possible strategies.

#1 Drive areas where you want to buy and look for vacant and/or neglected houses. No garbage cans in my area is a good sign. High grass, roofs in poor condition, etc., are all tell-tale signs. Then, you get in contact with the owner. Via letter or phone call.

#2 - I'll save this for the next post.

Until then...Go Make an Offer!
~Adios, Jerry

Real Estate Education & FREE Information for Busy Dentists - For more information visit http://www.SecretsofRealEstateMillions.com