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L.A. is on Sale! Why we are on an "Acre of Diamonds"

Hello everyone!  It has been a while since my last post and I apologize for that.  I have been extremely busy getting some deals going and opening my new Los Angeles Meeting & Event Center.  We have just been open for about a month and business is starting to boom!  Thank the Lord!  It can be a little unnerving to open a business in this economy - but as I suspected - just like people will always need to buy homes - they will also always need to have business meetings and celebrations such as weddings and parties!   Once again - let me hear it... AMEN!

Now - onto my other important business - Real Estate Investing!  Please join me for our monthly meeting which is this Thursday, July 11th ! 

Snacks & Beverages will be served!
6:30pm - Networking Begins
7:35pm - Tony Alvarez speaks for 15 minutes, Wants & Needs
8:00pm - Speaker Begins

TOPIC: Los Angeles IS ON SALE !
Learn why we are all on our own ACRE OF DIAMONDS!

My partner Gary Haddock and I will talk to you about why certain areas of Los Angeles (specifically South and Central LA) are going to make millionaires out of everyone who invests in those areas over the next couple of years! 

We will be discussing the area of interest, depressed prices in the area, and forces and issues specific to the community which are driving the opportunities. We will also be discussing the 'nuts and bolts' of some of the skills and services necessary to making these property investments a success, such as property management, rehabilitation work, City restrictions and the present political climate and driving forces in the area.

The presentation will not be 'hand waving,' but will include specific facts and actual plans for the area which are already approved and soon becoming reality, and amazing changes which have already taken place, and cautions on what to look out for in the areas.

This presentation is very important to all investors, and is the basis for future talks on the specific details of many of the key points presented.

Location:  Naked Real Estate Investors Center, 10601 W. Washington Blvd, Culver City, 90232

Please  visit our website for further inforamtion about the club and the event:

http://www.nakedrealestateinvestorsclub.com

Check your rehab DAILY... don't be stupid...

Or I should say - check it every morning - not in the afternoon.  Even check the end of day if you can.  This is even with good workers on your site!  I have pretty damn good contractors and things still can go down the toilet fast if you don't pay attention!  I walked on my site this afternoon ( yes... I was there yesterday as well and every day) and I noticed the weirdest thing: 

WHY oh WHY would we tear up the walk way in order to lay pour new concrete only to STOP short of tearing out the entire walkway up to the front door? 

Do you see this weird carpet thing here?  Do you see the tile in front of it going in the front door?  Why would you not hammer jack all of this out and poor new concrete up to the door???

We are carpeting inside up until the door opening (Duh)... so what the hell am I supposed to do with this weird entry before you walk in?  Really - this is the most asinine thing I have seen done on this job so far.   So now tomorrow - after the new concrete has already been poured and dried over night - we have to jack hammer the rest of this entry and pour additional concrete.  Is this a big deal?  In the whole scheme of things - no....  but this is mistake/misunderstanding/assumption #78 so far on this 30 day job.  They all add up and when we are trying to be completely done in 3 days from now - this is a really pain in the ass....

The moral of the story... the last week of your rehab - be at your job all the time.  Check on everyone, go over everything, watch it all...  that means go in the morning, afternoon and try to get there before the end of day...  (obviously if you have a mack daddy contractor who you have worked with for years and you trust more than life itself... you only need check on your job at least once a day :)  

No biggy... things could be a lot worse and again this is not a a dire emergency... I should consider myself very fortunate for this being one of the stupidest things that I am dealing with...

to twitter or not to twitter that is the question....

Listen - there is no way that I am here to say that we should not be "twittering" but common! Is there anyone else beside me who thinks that the @ responses are something that the whole world should see? 

Decisions, decisions, decisions.....always about money!

Well were are into the 2nd week of remodeling our Los Angeles Meeting  & Event Center and just when I think I am doing well with not spending very much money - WHAM.... I get a $17K quote for all the IT,  Networking, Computers & phone system....  CRY! 

It will cover: getting a phone system in, computers, server, networking,etc.  I think that it is a good price but daamnnnnn!  That's a lot of money.  Can't we get away with just one phone and a computer to start I wonder?  Do I really need a server - right now?  I am asking you - do I?   I don't know.  I will need a server - but do I need one the very first day we open?  Maybe not.  I need phones - but do I need a phone system?  Yes - I probably do need this.  But I really have to figure out how to cut these costs by half!  I am not made of money for christs sake.  Or rather - my investors will be grateful if I keep the costs low at the beginning!  After all - I do want to be able to sleep at night.  Well - I am not really sleeping now that I started this whole thing..

So the meeting space is moving along - and on schedule it seems - but I am just getting nervous about all of it!  It is really nerve racking to open a big business like this.  I mean - who the hell do I think I am?  Superwoman? What I do know is that this is an incredible business plan and great money maker if done right.

So -What do you think about our logo?  I am not sure I like it. I don't think i like the colors.   I think back to the drawing board.....

Our Meeting & Event Center project is under way!

Over a year ago I had this crazy (like a fox!) idea to create our own meeting space because it is so freakin hard to find affordable, clean and conveniently located meeting space.   Before opening my own real estate investors club last year (June will be our 1 year anniversary!!),  I ran the largest real estate investors club in L.A. (we're catching up!).  My biggest headache was finding affordable, clean, and convenient meeting space.  It was my worst time ever... enough to push me over the edge on many occasions.  

One day when I was working on the year end P&L I saw just how much money was spent on not only meeting space & office space... I nearly fell off my chair!  It as 6 figures!  This cost included all our meeting space, event space & office space!  Can you imagine spending that kind of money for something that you did end up owning?   Money down the toilet!

So my big idea was to create our own meeting & event space - then the days we were not using the space for our own meetings (we would only need it about 4-5 days a month) - we would rent it out as event space!  Duh!  Fast forward to about 6 months ago - I was talking one of my members - Gary Haddock and found out that he had huge experience with commercial investing!  I told him about my idea for a meeting center and he loved it!    We started developing the business plan and now today, 

                                                            We have our building! 

Can you believe this?  This is so crazy man!  As of last week - we have our meeting & event space business has been started! The remodel is happening right now!  We are using private money for the whole start up and have already brought in two investor partners with another two almost soldified  YAHOO!

This just goes to show you... if you have a good idea - and you work your ass off and surround yourself with people who are smarter than you - any crazy thing can happen!

The Los Angeles Meeting & Event Center has arrived!  

Partnerships, Equity Shares, LLC's or LLP's?

Is anyone else out there confused by how to put together a partnershp? I have to say that if I didn't have a very smart partner - who is great at this - I would be lost too!  And I am just talking about partnering on specific real estate deals.  What about raising private money and then giving some profit sharing to the private lender?  OY VEY! 

For instance - I have 3 different deals going on right now - all of them entail raising money.  If you raise money to do your deals - boy - you better know what you are doing and what you are offering.

For instance - first of all, I have a new business partner who I am doing specific real estate projects with.  He and I have our own seperate LLC's.  Now he and I are doing 2 specific projects together - now each of those projects has to have it's own LLC.  One of them is an income producing real estate deal and one is to buy, rehab, sell and hold SFR here in L.A.   NOW get this:

1)  We have a new LLC for our L.A. Meeting Space & Conference Center business and the private money we raise to get that project off the ground - those lenders will become partners in the business.  Why? As I understand it - since we are raising money from different sources for this one project -  in order to stay SEC compliant and not sell securities - the easiest thing was for us to bring in General Partners.  Now they are part of the business.  Also - we are not taking the money as capital contributions from these partners, but rather loans that will be paid back with interest!  Considering that they also get 10% share in the business this is a pretty good deal I would say! 

2)  Gary (my partner) and I are also buying REO's (and some subject t & owner financed properties) here in L.A that we will fix up and sell and hold.  We are raising a lot of money for these because we are going to buy small REO packages (about one million $).  So for this - we are actually creating a fund!  Oy vey - Gary is the one putting this together - and thank god for that. I have the experience in pulling people together and he has the experience in the legalities and paperwork.  He's the brains, I'm the brawn.  It's a winning combination!

All I guess I am trying to say is that there is a lot to know when it comes to creating partnerships like this.  I will be bringing in a lawyer to discuss all the different aspects about this in the next month!   If you are a Skinny Dipping or Streaker Member of my Real Estate Club - you can join our Members Only Tele-conference call to hear lawyer Kim Taylor give us an overview of the do's & don't about creating partnerships on Wed, March 26th at 7:00pm.

www.nakedrealestateinvestorsclub.com

Guru affiliate deals are over board!

What the hell is up with so many people in this business promoting the same real estate guru products or rather launches of "their good friend" so and so. (Damn! I wish I could just say the names of these people without getting into trouble... don't you?)

It is utterly nauseating to get so many emails from these people - especially since they are promoting (for the most part) stuff we don't need.  Listen - I am not saying that we do not need to buy education - of course we need to be educated.  I study from people all the time and I will promote certain educators all day long!  Why? Because they deserve it - because they are the best in the business and they are actually investors doing real estate investing - and they care about teaching you.

I don't worry so much for experienced investors and those who have been around the real estate investors "world" for a while.  Mainly I care about the newbies.  The wide eye, trusting newbies who believe that we real estate clubs, the real estate educators & the gurus are telling them the truth and that we do care about them doing well!

I have so many folks asking me advise on who's product to buy, who to trust, who to get coaching from, etc. 

Here's my opinion:

1.  Before you buy and product or coaching program - ask around!  Talk to other investors and find people who have bought their program or have been through their coaching.  Get referrals before you buy.

2.  Don't believe the "we only have 10 (fill in the blank here) left! so you must buy now!" sales techniques - believe me we can always fit another person in to a meeting or workshop.  (If an event or product actually does sell out - you will not be able to get it. This way you'll know if it's true)

Happy real estate investing everyone!  It really is a great time right now - but let's just be smart about what we buy and from which guru's.

Last nights Real Estate Roundtable was awesome!

Last night at our Anaheim meeting we had a Real Estate Investors Roundtable!  It was awesome to say the least! 

We discussed everything from Private money, how to raise it, legal issues about private money, selling your houses at aucton (that is the auctions that come to your property with bidders),  wholesaling, financing and more!  It was an amazing evening and I got 100% postive feedback from everyone! 

 

TOnight at my L.A, Meeting we will have LInda Pliagas the founder of Realty 411 Magazine speaking on creative financing techniques and Multi Family investing for about 45 minutes and then the last 45 minutes we will have another Real Estate Investors roundtable again!  

Please come and join us!

Visit our website for more information!  

http://www.nakedrealetateinvestorsclub.com

 

 

How do you raise private money for your deals?

JUST DO IT first of all.  Now I don't mean any disrespect to the members of my club and community - but I have to say that it's a tough nut to swallow when I get a call from an investor who has a deal and is wondering if I have any private money contacts.     This is just plain crazy unless they are planning on wholesaling the deal to me. 

Now I ask you - why would it be ok for me to do all the work on raising the money - by talking to people, sending out marketing, giving presentations and all the rest of the hard work, so that an investor can easily just call me up and ask if I know of any private lenders who would be interested in their deal?   Common guys -help me, help you...This is silliness.   After all - I am not a hard money lender. 

No my friends, in order for an investor to be successful in this market - you simply must must must learn how to raise private money.  

I had a private money mastermind group last night and the one thing that folks were doing successfully was talking to their warm leads.  Who are your warm leads?  All your friends and family and associates.

You need to talk to them about your deals and what you pay to a private lender.  Once you get good at this then you can start holding meetings.

If you don't think you have enough experience yet as an investor to show your track record to private lenders - then partner up with someone with experience for goodness sakes!  

Bottom line is - DO NOT, NOT go out and raise your own money for deals.  Don't give excuses that you don't know how, or that you don't have enough investing experience.  There is always a way to be successful!  You just have to do it!

Love you guys and don't mean to be harsh - but these are hard times and the best times to be an investor and there is no time for coddeling.

I am giving a presentation on How to be a Private Lender tonight in Culver City.  You are welcome to come on by and check it out!

RSVP HERE

Commercial Real Estate is going to be huge!

Hey everyone - I wanted to let you know that my real estate club meetings are this week and we are going to be learning about commercial real estate.  Why?  Because commerical real estate investing is going to be huge. There will be some excellent opportunites and frankly I'm looking forward it.  

The more I learn about commerical and the more I learn about the potential for what is coming - I get so excited.  My very good friend and new partner - Gary Haddock is going to be speaking.

I met Gary through my club and after getting to know Gary over the past 8 months, I have developed a new found love for commercial real estate, and creative real etate investing to boot!   Gary is one of the smartest and most experienced creative investors that I have met in my career as an investor!  And I have met a lot of people - so I don't say that lightly!  (Just take a look at his Bio below!)

His experience in both commerical and residential is emmence.  He has been a real estate investor for over 20 years and has gone through a couple of our "crashes".  Boy the stuff I have learned from him is priceless.  Just having daily conversations with him is like being with a real estate investing encyclopedia! 

Our first meeting with him will be at our February meeting! 

Wednesday - Anaheim meeting - February 11th
Thursday - Los Angeles meeting - February 12th
6:30 pm - Networking  -   7:30 pm - Meeting

For more information and location of meeting please visit our website!

www.nakedrealestateinvestorsclub.com

I hope to see you there!

 

To bulk REO or not to Bulk REO?

Well I haven't been writing as much as I would like, but the fact is, is that I have been extremely busy working on putting deals together and giving presentations on "how to be a private lender".  Here's the go:  I've been getting into raising private money more and more.  I want to get into the REO market and have no intention of using bank financing to do so.  I have partnered with a very experienced investor and we are creating an LLP right now. 

So - here we are - to bulk REO or not to Bulk REO?  That is the question.  Well - it depends. 

There are those who say - forgetta 'bout it.  Why? for a couple of reasons:

1.  Trying to put the Bulk deals together with the people who say they have the funds is like chasing feathers in the wind.  Those "big" deals don't seem to be happening.  A lot of hype. 

I think this has been true for a while now - however - it seems like I might be getting closer to these deals actually happening.  I will be able to let you know for sure over the next month or two. 

2.  Way too much work to get bulk deals.  Even if they can be "got" = there are too many houses, in too many areas, in too many states of repair, etc. 

I think this can be true to.  It just depends on how much work you are willing to take on.  I for one -  have taken a liking to putting the two parties together.  Those who have money and those who have the deals.

My bottom line for my personal investing business is to raise the money so that we can buy the REO's "individuallyally" (via MLS, Agents, Auctions). 

BUT - I like the idea of putting together those who have the money with those that have the deals!

No Money for Investors? What are you going to do about it?

I have been spending a lot of time over the last couple of months in the trenches of  “show me the money.”  Right now, there are no loans for investors with 4 or more houses - period.    I did find a bank that is still doing loans for investors with more than 10 homes… but what was the catch?  The laundry list of items that you needed in order to qualify left me shriveled up in ball in a dark room sucking my thumb - NAKED!  It was funny.  I was so excited and told my whole club that I found a bank!  Then I had  to break the bad news - unless you are God, you will not qualify.  Bummer dude!

So here we are. I have to tell you the truth - unless I know that I can sell a home to an end user and they are going to qualify and be able to get a loan - then no go.   I have money lined up to buy REO’s.  We have the 20-30% down and have the hard money all lined up… but we are still so sketchy to buy these properties!   It’s crazy.  I think we will feel way more secure if we were using only private money - which is our goal.   So this is the plan for us- forget the banks all together.  We don’t need no stinking banks.  We have moved away from using banks whats-so-ever and focusing on private money completely.

To finish reading my article please click here to go to Biggerpockets.com

Land Trusts Made Simple - FINALLY!

I have been waiting for 6 months to learn how simple land trusts.  As some of you may know, I am a great supporter of the NARS Land Trust model and have even had a mastermind group for it for many months.   Well enough of that for now - I am in a new phase in my life... to keep it simple! 

There are so many deals and opportunities out there!  Honesty - I don't know what to grab onto.  But what I do know is that keeping it simple is the most important thing.  Buying houses subject to and keeping the existing loan (if it is a good loan), in place is ideal.   But what about all those REO's?  Sigh.... what to do, what to do...  REO's good.  Not being able to get loans for them - bad.  Sigh... 

 I digress...

What was this post about again?  Oh yea,  Land Trusts made simple!  No matter what properties we are buying we need to hold them in a Land Trusts!  So Now I am bringing The Hughes Brothers in from Illinois to teach us how to do Land Trusts!  Or rather - learning how to do Simple Land Trusts. 

It all starts this week at my real estate club meetings.  If you are in Los Angeles or Orange County - then please do come and network with us!  If you are not - then no worries - we will be video and audio taping it! 

For more information on the meeting please visit our Naked Real Estate Investors Club webiste

Lets Network and have some fun people!

In Deeds We Trust!

Real Estate Trust Deeds are one of the safest investments available because the investment is not only secured by real property: land, homes and buildings, but is further insured by a title insurance company.  

What is a Trust Deed?

A trust deed (sometimes referred to as a Deed of Trust) is a document recorded with a county recorder’s office creating a  secured lien on real property to provide collateral for lenders and trust deed holders.

What is Private Real Estate Lending?

Private Lending, specifically Real Estate Trust Deed Investing, is when regular people like you and me invest our money in Real  Estate Trust Deeds.

Basically, private lending is your opportunity to become the bank and earn a much higher interest rate than a conventional bank pays on a CD or Money Market Account. Not only does it pay higher than stock accounts, it’s an alternative form of investment that frees you from the volatility of the stock market.

The security level of the loan is based on the loan-to-value (LTV) ratio of the property that it is securing. The lower the LTV the greater security the lender has against a drop in real estate values and potential loss.

What kind of interest do people earn as private lenders?

At this time private lender/investors are generally paid anywhere between 8% and 12%  interest per annum for the money that they lend. Payments are disbursed monthly, quarterly or at the end of term. Depending upon the type of project held as security, your return has the potential to yield even more.

The real estate market is down right now, why would I invest in trust deeds?

Most of what you’ve seen on the news is about foreclosures in the residential housing market. Our investors normally hold deeds to income producing properties, such as commercial property and apartment houses. These properties are not as vulnerable to the down turns that are experienced in the residential real estate market.

In addition, the borrowers of your funds are more sophisticated in real estate development and investing, and, therefore, are a better prospect than someone who wants to borrow money to rehab a house they believe to be a “great deal”.

What are other advantages of owning trust deeds?  

1. Trust deeds are liquid and can be sold rather easily to another lender.

2. A lender may borrow against them by using them as security. 

3. Real estate collateral is often viewed as more secure than stocks and equity investments, because its value can never diminish to zero.

4. The private lender isn't responsible for the payment of property taxes, maintenance, gardening, repairs or any other expenses connected   to the property. 

 Think of it as a cost and time effective way to invest in real estate without the tenants, toilets and trash. Private  Lending is a Win/Win for all.   

 

Don't get me wrong! You need to invest in Real Estate Education!

I have spent the last week studying from a new teacher (for me).  This time it’s for marketing, and several things have  occurred to me;  1) Yes, I have indeed spent more money on my education this month and 2) it also occurred to me that with all my soap-box rants against “guru pitch fests”, I may be sending out the wrong message to some folks.  Or maybe they are just hearing what they want (that - yes there is the golden egg, and all you need to do is buy one educational product and BAM - you’re a successful investor!). I can tell because the more I voice my opinions about those pitch fests, the more I receive emails from people asking “Rosie, please tell me the [one] product that I need”. 

Click here to read the rest of my article on biggerpockets.com!