Real estate and Global Resorts Network are major parts of our activities right now. The current turmoil in the United States, especially the southern states, has been of particular interest for us. Also, the GRN opportunity has come up, and we are actively mentoring people all over North America and expanding into Eastern Europe.
For interested people, we have started publishing a number of web-based articles on different listing sites. These articles are a combination of our real estate and online business insights.
Anybody interested in finding the articles, if they can't find them directly, can check us out at www.tatinvestments.com or email us at author@tatinvestments.com. We can't promise immediate response, but we try.
Suggestions for articles, or questions we might be able to answer, are welcome.
Cheers,
Mike Fears
Monday, March 31, 2008
Wednesday, March 26, 2008
Global Resort Networks – Making Money the VA Way
Global Resort Networks is a home-based business opportunity that many people are using to generate passive income. Individuals with little or no business experience can generate significant incomes in relatively short periods of time.
A key part of any Global Resorts Network (GRN) affiliate program has to be the sales support for you, the business owner. If you are considering a GRN affiliate system, this needs to be a top priority in choosing who your business will work with. It has a direct impact on your income.
Some programs funnel people through a series of websites. The idea is that the websites are designed by marketing professionals that will sell the end product for you. The problem with this is that it expects a lot from people – a ton of reading and filtering through websites, lots of sales pitches, and they usually have to go through a bunch of videos. People get frustrated or turned off during this process. In the end, you lose more than you gain.
Other programs require you to do the sales beyond a few pretty web pages. This is all right if you have a decent long distance plan and are a killer closer. It’s tough if you have to deal with folks in England and you live in Sacramento. And you can expect to get phone calls from curious prospects. Your business quickly turns into a j-o-b – it runs your time, your options, and essentially your life.
A third option is programs that give you the option to use their own professional sales team. We use one of these programs. It has Virtual Assistants – full-time professional closers that deal directly with your prospects and close your sales for you. And the great thing, you don’t pay for their services if they don’t sell. And they are available by phone, quickly. They also update you through email on their contacts with interested people.
Obviously, we prefer the third type of program for my Global Resorts Network program. We switched from one of the other two types and saw an instant change in our results.
If you are looking for a decent home based business through Global Resorts Network, check out the kind of program that we have tied in with. It adds value to your efforts and will definitely have a positive impact on your income.
Mike Fears is an entrepreneur, investor, and accomplished author. Based in Calgary, Alberta, he writes on topics related to real estate, stocks, and online income generation. Mike’s online opportunity can be found at http://tatinvestments.grnteambuilder.com or www.tatinvestments.com.
A key part of any Global Resorts Network (GRN) affiliate program has to be the sales support for you, the business owner. If you are considering a GRN affiliate system, this needs to be a top priority in choosing who your business will work with. It has a direct impact on your income.
Some programs funnel people through a series of websites. The idea is that the websites are designed by marketing professionals that will sell the end product for you. The problem with this is that it expects a lot from people – a ton of reading and filtering through websites, lots of sales pitches, and they usually have to go through a bunch of videos. People get frustrated or turned off during this process. In the end, you lose more than you gain.
Other programs require you to do the sales beyond a few pretty web pages. This is all right if you have a decent long distance plan and are a killer closer. It’s tough if you have to deal with folks in England and you live in Sacramento. And you can expect to get phone calls from curious prospects. Your business quickly turns into a j-o-b – it runs your time, your options, and essentially your life.
A third option is programs that give you the option to use their own professional sales team. We use one of these programs. It has Virtual Assistants – full-time professional closers that deal directly with your prospects and close your sales for you. And the great thing, you don’t pay for their services if they don’t sell. And they are available by phone, quickly. They also update you through email on their contacts with interested people.
Obviously, we prefer the third type of program for my Global Resorts Network program. We switched from one of the other two types and saw an instant change in our results.
If you are looking for a decent home based business through Global Resorts Network, check out the kind of program that we have tied in with. It adds value to your efforts and will definitely have a positive impact on your income.
Mike Fears is an entrepreneur, investor, and accomplished author. Based in Calgary, Alberta, he writes on topics related to real estate, stocks, and online income generation. Mike’s online opportunity can be found at http://tatinvestments.grnteambuilder.com or www.tatinvestments.com.
Sunday, March 16, 2008
Buying Real Estate in the US – Tips for Canadians
The recent turmoil in the US housing market has a lot of Canadians looking at the southern states. There are opportunities, but there are also major problems for the first-time investor. Here are a few things to keep in mind if you are looking to get that sunshine property.
Know what you want to do with the property. If you are going to “buy and hold” – find out how much that will cost in terms of taxes, insurance, utilities, maintenance, security, etc. Make sure you have a good idea of your expenses before you discover you have bought a money pit. If you are going to resell, make sure you can resell at a profit. The costs of buying and selling can vary a great deal between states and counties – do your homework – and not all markets are created equal. Know how much you can sell or flip a house for before you spend your cash. If you are renting it out, make sure you can rent it at a profit. If you are willing to take a loss in order to realize appreciation in the future, you are braver soul than I. I don’t do negative cash flow and don’t recommend it to anyone.
Don’t jump into a rapidly depreciating market. Most areas of the southern US are declining real estate markets. The number of houses and condos for sale in many markets is huge and growing daily. This only reduces prices for buyers and landlords. That’s one thing that you need to know if you want to rent out an income property – rents drop along with house prices. It’s tough to resell a house, for a profit, if the value keeps going down. Even though people tell you “it’s a buyer’s market” or “now is the right time to buy” – do your own homework. If the trend is down, wait it out a bit. You’ll protect yourself from losses, regrets, or both.
Confirm the information you receive from local realtors. Let’s be frank – realtors need to sell property and they want you to buy that property. They will tell you “the market is at bottom” and “this is an incredible deal” and “it won’t last long” – even when, in their hearts, they know better. You need to verify for yourself – is the market at bottom, really? Is the property really at its lowest price? We’ve dealt with good and not-so-good realtors. Even the good ones slide into the sales routine that we need to buy the wrong properties, in the wrong places, at the wrong prices – just because they need to sell something. With the current frenzy in the southern US, this is a real problem for new investors. Don’t get blinded by the “expert” opinions on local real estate markets.
Last year was great – so what? Our recent time in the southern US was spent listening to how many “deals” there were. Every realtor and asset manager told us how great this or that price was, what a steal a particular house was. It was constant, but it was all about last year’s prices. It had nothing to do with the price right now, what the property would be worth next month, and whether or not we (as investors) could make money at it. It’s important to realize that many areas of the southern US real estate market were very overpriced – the “deal” today is only a deal compared to yesterday. Based on today or next week, you might actually be paying way too much.
Costs will eat you alive. When you are buying – for yourself or as an investment – keep a close watch on your costs. Verify the taxes, insurance, maintenance, and all that stuff. Closing costs can exceed 10,000 in some areas, really throwing your budget into the dumpster. Make sure that special assessments, reassessments, and additional charges are disclosed or itemized so you know what’s happening. If you need to renovate – well, that’s a separate discussion on how to lose money in real estate. As a Canadian, the income you generate from rentals can be very heavily taxed in the US and in Canada. Get decent tax advice – it could be the difference between making and losing money.
Here are a few tips which I hope Canadians will take to heart before they jump into the southern US real estate market.
Cheers,
Mike Fears - www.tatinvestments.com
Know what you want to do with the property. If you are going to “buy and hold” – find out how much that will cost in terms of taxes, insurance, utilities, maintenance, security, etc. Make sure you have a good idea of your expenses before you discover you have bought a money pit. If you are going to resell, make sure you can resell at a profit. The costs of buying and selling can vary a great deal between states and counties – do your homework – and not all markets are created equal. Know how much you can sell or flip a house for before you spend your cash. If you are renting it out, make sure you can rent it at a profit. If you are willing to take a loss in order to realize appreciation in the future, you are braver soul than I. I don’t do negative cash flow and don’t recommend it to anyone.
Don’t jump into a rapidly depreciating market. Most areas of the southern US are declining real estate markets. The number of houses and condos for sale in many markets is huge and growing daily. This only reduces prices for buyers and landlords. That’s one thing that you need to know if you want to rent out an income property – rents drop along with house prices. It’s tough to resell a house, for a profit, if the value keeps going down. Even though people tell you “it’s a buyer’s market” or “now is the right time to buy” – do your own homework. If the trend is down, wait it out a bit. You’ll protect yourself from losses, regrets, or both.
Confirm the information you receive from local realtors. Let’s be frank – realtors need to sell property and they want you to buy that property. They will tell you “the market is at bottom” and “this is an incredible deal” and “it won’t last long” – even when, in their hearts, they know better. You need to verify for yourself – is the market at bottom, really? Is the property really at its lowest price? We’ve dealt with good and not-so-good realtors. Even the good ones slide into the sales routine that we need to buy the wrong properties, in the wrong places, at the wrong prices – just because they need to sell something. With the current frenzy in the southern US, this is a real problem for new investors. Don’t get blinded by the “expert” opinions on local real estate markets.
Last year was great – so what? Our recent time in the southern US was spent listening to how many “deals” there were. Every realtor and asset manager told us how great this or that price was, what a steal a particular house was. It was constant, but it was all about last year’s prices. It had nothing to do with the price right now, what the property would be worth next month, and whether or not we (as investors) could make money at it. It’s important to realize that many areas of the southern US real estate market were very overpriced – the “deal” today is only a deal compared to yesterday. Based on today or next week, you might actually be paying way too much.
Costs will eat you alive. When you are buying – for yourself or as an investment – keep a close watch on your costs. Verify the taxes, insurance, maintenance, and all that stuff. Closing costs can exceed 10,000 in some areas, really throwing your budget into the dumpster. Make sure that special assessments, reassessments, and additional charges are disclosed or itemized so you know what’s happening. If you need to renovate – well, that’s a separate discussion on how to lose money in real estate. As a Canadian, the income you generate from rentals can be very heavily taxed in the US and in Canada. Get decent tax advice – it could be the difference between making and losing money.
Here are a few tips which I hope Canadians will take to heart before they jump into the southern US real estate market.
Cheers,
Mike Fears - www.tatinvestments.com
Wednesday, March 12, 2008
Investment Gold - Success Comes From Your Exit
Probably the most educational experience of our trip (excluding our time with our mentor) was in a rental agent's office. We got to witness a new investor learn, in a heartbeat, how easy it is to self-destruct if you don't do your homework.
Our local realtor in Lee County operates out of an office that includes a property management firm and a title company. The property management firm basically takes care of rentals for non-local landlords - primarily students of a local investment guru. One afternoon we popped in unannounced and were waiting for our realtor to finish with a closing. Siting in the lobby, a young buck strolled in and wanted to talk to someone in rentals.
When the rental lady came out, this young man puffed up and declared that he had just bought two 3 bed/2 bath houses. He wanted to know how much he could rent them for. The lady told him that, sight unseen, they might be able to get 850 a month, maybe more if they were pretty good.
That young man turned three shades of white. And I'm pretty sure his mouth went dry since the humidity level in that office dropped about 20%.
This young fellow did not tell the rental lady how fantastic his houses were. He didn't describe their features, praise their locations, or brag about their upgrades. But he did ask one very typical question, for the current Florida market that is: "How much would they have rented for last year?"
And the lady told him about 1100 to 1500, but the market was crashing and rental values were still going done. (Note: this does not exactly match what our realtor told us earlier, but he was trying to sell us these depreciating termite mounds - this lady's job was to get the sales contract).
What was wrong with this scenario? Absolutely nothing. House prices crashing, rental incomes down, property taxes high (that place about 400 to 500 a month), no local industry to speak of, major bank closing branches and not opening brand new buildings just constructed - all normal in a recessionary downturn.
The situation was what it was - not good or bad, right or wrong. But that young investor really screwed up. He should have known what his expenses were before he walked into buying a house in that area - let alone two. He should have done his homework and had the rental rates mapped out in advance.
Big lesson for that young man. But will other's learn from it? I know we did, but physical proximity to disaster tends to catch your attention and fix your mind pretty quickly.
Know your exit strategy - run the numbers, find your buyers/renters/partners, etc. FIRST, know what the resale values are, and a ton of other tidbits too much to mention in this little space. And use real, current numbers. Don't rely on websites along. Talk to realtors, managers, landlords. And talk to the purchases or renters.
We pulled out because our exit strategy become compromised by conditions we didn't expect - particularly the heavy oversupply that wasn't apparent until we saw it first hand. Pricing was a problem, especially since the market is still in free-fall.
One big issue was the ethical side. We did have a solid exit strategy based on resale to a specific market and with a decent marketing strategy. But how do you sell a house, with a smile, that you KNOW is going to devalue another 20, 30, or 40%. Not going to do it. Not for this cowboy.
And all that's there is peanuts, because you have to buy and flip almost immediately - sight unseen for the end user in most cases. I can find better uses for my time and money.
Tuesday, March 11, 2008
Chasing Success - Our Florida Real Estate Experience
We were in Florida last month attempting to purchase some real estate we could cash flow. It was interesting, and good learning process for a market we hadn't visited before. We were actually poised to pick up as many as 1000 houses - and didn't end up buying a thing. I hope some insights from our trip may help you in the Florida market - or any other southern US market during this troubled time.
I'll be putting up several posts about our experience, but here's a few highlights of what we encountered:
Mike
www.tatinvestments.com
I'll be putting up several posts about our experience, but here's a few highlights of what we encountered:
- The Florida market was still in a massive slide with the bottom a long ways off. Many brokers, asset managers, and other investors kept talking about "what a great time to buy". This was at best wishful thinking and at worst complete lies.
- Exit strategies are king - ignore at your peril. For example, if you are renting, get your renters and costs lined up immediately and know it all before you buy. With housing prices, rental prices are also crashing. We were surprise witnesses to another investor's "moment of truth" after he purchased 2 homes.
- In Lee County (Fort Myers, Cape Coral, part of Boca Grande, Lehigh Acres) property taxes were out of this world, from our perspective. Average tax costs for a 3 bed/2 bath were around 400 to 500 per month. There there were special assessments.
- Some areas have greater potential than others - Orlando is a far better place to be than Jacksonville or Cape Coral. Having said that, I would rather be in Arizona or Calgary.
Mike
www.tatinvestments.com
Friday, March 7, 2008
Bold-faced, rotten to the core, and just plain dumb...LIES!
If you suspect someone's been lying to you abouthome business opportunities, guess what? You're absolutely right!
It's time you said, "Enough is enough" when it comes to misinformation, double talk, and yes, even LIES that are killing home businesses leftand right (and leaving you in a state of frustration or confusion!).
Instead of frustration and endless self-blame, get excited! You're on your way to the surprisingly simple solution to taking controlof your own destiny.
The TRUTH is helping business owners just likeyou achieve the most amazing triumphs over theirpeers. It's changing the way home business is done,with a method that is systematic, reliable, andrefreshingly achievable.
Frankly, the response this ebook has unleashed, both positive and negative, confirms it's reallyhit the bulls-eye with the "big guns."
There Are Those Who Would Love To Find A Way To Stop This Ebook From Being Published So Get Your FREE Copy Right Now!
http://tatinvestments.grnteambuilder.com/
All the best,
Mike Fears
It's time you said, "Enough is enough" when it comes to misinformation, double talk, and yes, even LIES that are killing home businesses leftand right (and leaving you in a state of frustration or confusion!).
Instead of frustration and endless self-blame, get excited! You're on your way to the surprisingly simple solution to taking controlof your own destiny.
The TRUTH is helping business owners just likeyou achieve the most amazing triumphs over theirpeers. It's changing the way home business is done,with a method that is systematic, reliable, andrefreshingly achievable.
Frankly, the response this ebook has unleashed, both positive and negative, confirms it's reallyhit the bulls-eye with the "big guns."
There Are Those Who Would Love To Find A Way To Stop This Ebook From Being Published So Get Your FREE Copy Right Now!
http://tatinvestments.grnteambuilder.com/
All the best,
Mike Fears
Subscribe to:
Posts (Atom)
