This week, Larry talks about knowing where to find properties that you will want to buy to make the most properties. The Multiple Listing Service is not usually the best option; mainly because it is difficult to get your offer in front of the seller. If you are not direct to the decision maker, it is quite possible the “gatekeeper” will not do as good a job as you can pitching your offer.
Attorneys can be a good source of leads for investors because they often deal with sensitive issues that require homeowners to liquidate those assets. As an investor, if you maintain a stellar reputation of being a person who does what they say they will do you might find this method very successful.
CPA’s are also a good resource, they often run into taxpayers that are on the verge of financial difficulty. If you maintain a good relationship here, leads can come to you this way all year long.
Larry likes to focus on free and clear non owner occupied properties. He finds that these properties are much easier to buy on terms from the owners as compared to those that have existing debt. These sellers also may be facing a taxable event by selling their home, by offering terms, Larry give the seller an opportunity to reduce their taxes that year according to current tax code. (Check with your CPA regarding IRS Section 121 and Installment Sales Agreements)
Investors often get caught up in price or value or compare that to the profit in a deal. The value is subjective, and actually is in the eye of the beholder. Depending on the type of buyer the value can swing wildly. Here is an example a rehabber might value a $100,000 house at $50,000 because he has to invest $20,000 in repairs, spend more money to sell the home and pay taxes on the capital gain. A Buy and hold investor might value the same house at $80,000 because it will bring $1,200 in rent as it sits today in its current condition.
Have you ever considered a trade for something? Remember as a child, trading a couple sticks of gum for a baseball card? You valued the baseball card more than the gum, and the card owner valued the gum more than the card. Real estate is no different, people trade houses for all kinds of things that they value more than the house. An example would be trading for a motorhome; the seller takes your motorhome in exchange for the equity in his home. In this example the seller wants a motor home more than the equity in his home. In this example, price really did not matter, it was a trade of one tangible item for another, its that simple.
Notes on the other hand, provide a catalyst to make a deal work. More often than not, a note is valued more than the actual real estate to many people. It is important to consider many options when making an offer, don’t assume its just cash that the other party wants.
Have you ever attended LArry’s never Step Into a Bank Again course? You can read more about this course at www.LarryHarbolt.com
In this week’s episode, The Real Deal explains that today, many young folks feel that because they have no experience, that they need a partner. The problem with that logic is that often the partner has little to no experience either. When choosing a partner in a deal, that person should have quite a bit more experience than you do.
Instead of jumping right into a partnership with someone on the same level as you, perhaps it makes more sense to educate yourself, and then make an arrangement that makes sense with a “financial friend”.
It is critical to do the right thing when you take on a financial friend, no matter what, that friend needs to be treated fairly, and must be paid, before you get paid. Don’t fall into the trap of believing that just because someone has a few dollars that they know anything about real estate investing. It is critical to set boundaries up front, and to clearly define each other’s duties and responsibilities.
Larry also discusses being “hands on” with your rehab jobs and how that can work against you. Commonly, newbie investors feel that they are actually “saving money” by doing the work themselves. The actuality is that you can negotiate that savings when you buy, instead of trying to sort it out when you sell. Larry goes on to explain his “white shorts” theory that helped him get his “hands out of the dirt” so to speak.
Have you visited the new and improved LarryHarbolt.com website? Check it out and get ready to launch your investing career today!
Do you want to be able to conserve what cash you have? In this episode Larry will explain how to never miss an opportunity to negotiate for a better and more profitable deal. Larry explains how experienced negotiators look at any situation they find and see ways to maximize their profits.
Negotiating a great deal begins with knowing what the costs of holding the investment are and what can be structured to allow for a predictable return of profit from that investment. Listen in as Larry breaks this down in an easy to understand manner.
Have you signed up yet for Larry’s lessons by email? Text “Larry” to 773-770-4377 to sign up.
There are no lack of opportunities if you have the specific knowledge that allows you to recognize deals other investors can't see.
In this episode, I teach us how to learn the difference between general knowledge and specific knowledge. Many think that its specific knowledge that gets the deal done and discount or overlook the benefit of general knowledge.
Today, I also discuss how to know the difference between a good deal and a bad deal because of your specific knowledge. There are many factors to consider which I cover in this episode.
Investors often tell me there are no great deals anymore. I assure you that no matter where you live you can be assured that there are many great opportunities just around every corner once you know what to look for.
The Strategy of “Subject To” is becoming more and more popular every single day. Basically, this strategy works as follows:
When you find a property that has an affordable mortgage in place, it is possible to take title to the property subject to the existing mortgage. The term subject to is meant to state that the current mortgage remains in place, even though the deed transfers to the new owner.
Many notes these days have what they call a “Due on Sale” clause, which basically means when the property is sold, that the note must be paid in full. Larry discusses how this is not a law per se, yet agreement between lender and borrower. In many cases, the bank will allow the transfer to happen, especially when they fear the current owner may default.
There are other instances where the banks will not allow the transfer of deed to occur without calling the loan due. When a bank calls the loan due, they demand the full balance be immediately paid to the bank to satisfy the mortgage.
One of the benefits of attending Larry’s Never Step Into a Bank Again Bootcamp is that you will learn how to avoid using the bank at all. When you avoid the banks, you can do more deals, with less headache and more profit. Want to learn more? Go HERE
This week on the Real Deal Podcast, Larry Harbolt discusses the importance of financial discipline. Larry tells the story of “Take a Millionaire to Lunch” where he does just that. It was out of the box thinking such as this that helped Larry learn the skills necessary to be successful as an investor.
Larry discusses taking the time to build a relationship with those who are more successful than you and by doing so be in a position to ask them question that will help you learn. It has been Larry’s experience, that if he simply asks, others will simply capitulate by answering his questions.
Time is a precious commodity, when taking the time of those more successful than you, be respectful of their time, being sure to be on time, and keep your phone OFF. There is a difference between being appreciative and being overbearing. When the other party is speaking, you should spend most of your time (70-80%) listening, and only the remainder talking.
It is meetings like these, that can become the most important meetings you will attend during your investing journey. Be sure you bring a notepad to keep notes, and be sure to pick up the check!
It is important to think like the rich think. “Money” is simply a tool, nothing more, nothing less. Just because a bank is willing to make a loan, does not mean that the loan makes sense for the investment you are considering. Take the time to calculate the costs, in addition to the interest rate and never forget to understand the terms and how it will impact your investment.
Have you ever wondered why some investors are successful while others struggle to make money from the deals they do?
Their secret is knowing how to analyze every deal to separate the good deals from the bad deals. In this episode of The Real Deal Podcast Larry Harbolt discusses the how and why of breaking down the deal.
This week, Larry "The Real Deal" Harbolt lays it all down when talking about who you should be taking your advice from.
In the real estate world, we often get handed lousy advice from those who are not in the business; but also are clueless about it. Larry gives tips on how to choose which educational systems you should focus on and who you should consider getting advice from.
Later, Larry addressed the topic of being in a rush to buy a bunch of units or do a bunch of deals. This type of "rushed" behavior leads to almost certain financial disaster. Tune in and learn from the best, Larry Harbolt.
Listen in this week as Larry Harbolt, a/k/a The Real Deal talks about the most popular lies that investors are told and believe. Larry really peels back the onion to discover the mistruths, misconceptions, and flat-out lies that many new investors are led to believe.
This episode should be required information for anyone who ever considered getting started in real estate investing. Realtor must take notice, there are many valuable lessons packed into this episode that will help you make extra money this year if you apply the skills discussed right away.
Do you have specific topics you want to hear Larry weigh in on? If so reach out to Larry one the all new podcast page found by searching for "The Real Deal Podcast" page.
Direct mail is a means of advertising to attract motivated seller leads to your investing business. Gurus teach unsuspecting students that trickery or bait and switch tactics are a good way to conduct business.
In this week's episode, Larry covers the exact direct mail strategy he and his wife have used for many years. Larry uses very targeted mailing lists for the best results which are also covered in great detail during this episode.
Location, Location, Location is what we hear in the real estate industry and that still rings true today.
This week, Larry discusses the importance of buying rental property in neighborhoods where people want to live. Too often, new investors are so excited about "getting a deal" that they buy in undesirable neighborhoods.
In order to keep vacancy loss at a minimum, we should always try to buy in desirable areas where families want to live. This simple idea helps reduce and in some cases eliminate vacancy loss.
This week on The Real Deal Podcast with Larry Harbolt, he gives the audience a look inside his past deals and discusses the lessons learned from them. This episode is packed with tons of stories from over 37 years in the real estate business.
Larry acquired most of his assets using creative means and very little money or credit. Listen to Larry discuss several great ideas that stand the test of time and are still applicable today even in our current economy. The lessons learned in this episode are sure to inspire.
Larry discusses many reasons why it is not necessary to pay cash or use bank loans when acquiring investment properties. Seller financing or even "split funding" is a great way to help sellers out of tough situations and reduce their tax obligations upon the sale of a home.
In this episode, Larry discusses many options that investors can use to effectively structure and negotiate great deals. When a win / win scenario is created between buyer and seller negotiations become not only friendly but fun!
Want to learn more about how to structure seller financing deals? Visit LarryHarbolt.com for details on his next seller financing boot camp.
Negotiating has become a lost art; although it is one of the most important keys to success in real estate . The negotiating table is where an investor's profits are found
Building rapport with the other party is most likely the most important step. Far more important than fancy words and forked tounges! Larry takes time out to discuss many of the tips and tricks he uses to negotiate great deals for him and his family.
Want to learn more? Go to Larry Harbolt.com to begin learning today!
Many would be investors never get started because they feel they do not have enough cash to get started. Larry teaches that many things can be utilized instead of cash.
One of the examples he uses is to pay a seller's debt for them, after first negotiating a lower payoff.
Using trades of labor, materials, or other goods is a great way to avoid having to use cash as down payment.
Real Estate "Guru's" will try to convince you that you can buy 100 houses in a year!
In this episode of the Real Deal Podcast, Larry Harbolt discusses why this goal does not make any sense.
Taking on more than you can handle, can destroy an investor's business. Listen in as Larry shares his 37 years of knowledge to help you stay profitable.
LarryHarbolt.com is your one-stop resource to obtain the education you need to be successful as an investor.
Ever wish you could be a skilled negotiator? Wish you knew the deal breakers that even experienced investors encounter? This episode of the Real Deal Show with Larry Harbolt these very topics are discussed in great detail.
Learn and listen as Larry digs deep and covers many of the mistakes he has made over the years and how he has overcome them.
Want to learn more from Larry? Visit LarryHarbolt.com to start learning today!
In this episode of the Real Deal Real Estate Strategy Show Larry talks about the foundational information a new investor needs to proceed smartly into real estate investing.
Exit strategies must be determined before you buy and Larry discusses how to determine just that. This is a Don't Miss episode!
Want to learn more? Visit LarryHarbolt.com and launch your investing career today!
This week on the Real Deal Show, Larry Harbolt discusses getting started as a real estate investor.
There are many things to think about when diving into real estate investing, this episode helps to make it easier for you to get focused on how you should proceed.
Many people think you can simply buy any house and then call themselves an investor. Others think that those at meets are already successful.....nothing could be farther from the truth.
Join Larry as he continues to teach us how to become successful as a real estate investor so you too can become "The Real Deal"
Want to learn more? Visit LarryHarbolt.com and begin learning how to be a successful investor today!
Mistakes are common, and something that is necessary in the learning process. In this episode Tyler Sheff of CashFlowGuys.com and Larry Harbolt discuss many of the common mistakes that investors make (including us)
#1 Being in a rush to make money fast / get rich quick:
Making money in real estate is a time tested way to build wealth, however it is far from a “get rich quick” scenario. Larry discusses when you build a house, you don’t begin with the roof, you begin with the foundation. Niche methods are fine, however the investor must have many tools in their toolbox to acquire properties.
#2 Over Analyzing / Analysis Paralysis:
A successful investor takes the time to decide what their profit margins needs to be. If the “deal” does not fit the numbers then you have two choices….negotiate to structure the deal so the numbers work or pass on the deal. By first figuring out what your needs are from the investment, you can then build a template to use in order to quickly analyze deals.
#3 Inheriting someone else’s nightmare:
Just because the seller says “yes” or makes it “easy” to buy their property that does not necessarily make it a worthwhile investment. Don’t be in a rush to just “do a deal”
#4 Getting caught up in bidding wars:
Cash buyers often get caught up in bidding wars…99% of the time this results in the buyer overpaying for the property. Avoid bidding wars at all costs. Instead, focus on finding problems, not properties. To us that means looking for properties that are not necessarily “for sale”, this alone helps eliminate the competition.
#5 Getting a real estate license to gain MLS access:
The MLS can be a great tool…for those that sell houses for others. As an investor, it helps to instead focus on opportunities that are not “for sale” whenever possible. The Multiple Listing Services are simply a tool, however similar services are available that provide the same information for about 75% less cost than having a real estate license.
#6 Being sucked into the “Guru Hype”:
Real estate is not easy, and its NOT a get rich quick scenario. There is no secret sales script, no secret formula. There is no single course or software program that will “do it for you”. Instead it takes hard work, self discipline and determination.
This week Larry Harbolt discusses the many differences between good deals and bad deals and how to make your deals better. Knowing more than one way to buy a property is critical in maintaining profitability. Larry discusses his many ways of breaking down a deal and then constructing a new deal where it creates a win / win for both buyer and seller.
In this episode of The Real Estate Strategy Show, Larry dives deep in discussing the types of rental houses you should consider for your rental portfolio. Larry covers the details needed to make an educated decision and tips on what to avoid and why.
As a real estate investor, you must be skilled in developing your criteria and then sticking to it. Although it takes analysing many deals, there is no sense in looking at every house, instead focus on the ones that meet your needs and are most desireable as a rental property.
Interesting in learning more? Visit LarryHarbolt.com to get started in Real Estate Investing Today!
Larry discusses a critical component of investing that pertains to the houses you don't want as an investor. Being armed with this information allows you to determine your exit strategy much faster and therefore begin with the end in mind as Larry teaches.
Interesting in learning more? Visit LarryHarbolt.com to get started in Real Estate Investing Today!