Living in Contra Costa County

Real Estate Investing in Contra Costa County - The Cult of Real Estate

For those of us in California we study the Gold Rush of 1849 in school as it is a significant part of our heritage. One of the truths of the Gold Rush is that although some did get rich most did not. For many the Gold Rush was personal tragedy and failure. For others it got them to California where they found our real prosperity was our abundant natural resources and entrepreneurial spirit. (Oh How Times Change.)

However, there was one group that in general did very well in the Gold Rush. People selling things to the Gold Miners; two that jump to my mind are Levi Strauss and Wells Fargo. (Yes Blue Jeans owe their origin to California Gold Miners and the fact the Levi Strauss found that once people got to California they no longer had a need to buy his Wagon Covers – so he turned them into durable pants.)

Others merchants made a fortune selling dreams and expectations – many of them not reasonable. This pattern has repeated itself a number of times in history. Seattle made itself selling supplies to those on the way to Alaska.

Sadly for many of these dreamers the more they invested in the dream the harder it was to walk away. Many never could and poured their entire lives into a false dream.

It seems on a regular basis I get a call from someone wanting to invest in Real Estate and they have just finished a real estate seminar of some sort that they have paid good money for.

There are some things all these courses tend to have in common:

1. The initial promises is easy riches with little or no money out of pocket.

2. They teach realistic things that can happen but are not likely to happen. For example we have all heard about the divorcing couple that sell a home below market value, real quick and carry the note. Getting an option from some unsuspecting seller and doing the double close. Perhaps you have done one of these things or seen them happen. But they do not happen easy or often and there are no lots of people fishing those waters.

3. They are often encouraged to borrow money from family or friends to get these investments. Sometimes this is combined with Hard Money Loans for Buy and Flip scenarios. I wonder if the sellers of the program are tied in with the Hard Money Lenders?

4. When the initial success does not come or is not as big as expected they are sold another seminar-program- or class.

5. When things do not work they are told to be patient and work harder.

6. They are encouraged to get friends and family to buy into the program. They might even be offered discounts or cash to get others to buy into the program.

7. Frequently they are taught to disdain or undervalue Real Estate Agents. Partly because a quality agent will tell them why the system they are trying to work is not working. And because they can often get for free from a Real Estate Agent what they are paying others to give them.

8. They will keep selling you until you are broke.

9. Many of these “investors” are so committed to the system (and Gold and Sweat they have put into it) that they cannot admit they have made a mistake.

These pedlars of “Real Estate Success” are not making money buying and selling real estate. They are making money buying and selling Real Estate Systems – often bad ones.

For Real Estate Investing success get The Free Book of Real Estate Investing.    

Are Real Estate Investments a Good Way to Go?

People often ask me if Real Estate Investments are a good way to go. Of course I tell them yes and I often write and do video talking about why.

But I am not the only one that thinks so. Per the Wall Street Journal Wall Street Investors are moving to REIT's.

Now what I do is help people skip the middle man and own their own piece Real Estate Investments with personal investments or part of an LLC.

For more information on Real Estate Investments Get the Free Book of Real Estate Investing.  

Why Real Estate Investing?

Here is a great Video on Why Real Estate Investing! If you have ever wondered if Real Estate Investing is for you here are some things to consider.

If you are not into Video you can just go get the Free Book of Real Estate Investing to find out every thing you wanted to know about Investing in Real Estate.

Below the video is a number of properties. Just click on the slide show below for more details and to do your own search.

The Top Rule when Investing In Contra Costa County Real Estate!

If you want to Invest in Real Estate you will want to Watch this Short 2 minute Video and Get the Free Real Estate Investing Book. This is one simple lesson of many about Real Estate Investing. There are many things to learn about Real Estate Investing. Subscribe and watch up coming videos, order the book, or give me a call at 925-260-4321. 

Investment Properties Available Now!

Antioch California Real Estate Investors - What Do Water and Real Estate Investments have in common?

Well there are three things they have in Common:

1. They can both Slip through your fingers.  If you are not prepared to move Real Estate Investments can disappear.  When a good one comes along jump on it.
   
   
2. Sometimes they are hard to find without the right help.  Work with a good Realtor to find the right Real Estate Investment for you. 
   
   
3. Water and Real Estate Investment (Cash) will all flow to a common point. 

This 3rd point is the primary point of this post.  Water flows down hill, it follows the path of least resistance, and it gathers at the lowest point.  Real Estate Investors all look for the most profitable Real Estate Investments, they want to make the most money with the least amount of risk, most all of the Investors end up looking at the same pool of Investment Properties.

Now it is not a perfect analogy.  But as water gathers in one place it fills up the lake, pond or other body of water.  The level of the water begins to rise.  With Real Estate Investments as more and more Investors come into the market the prices on Optimum Investment Properties begins to rise.  Even with the water level rising the body of water is still the lowest point.  As Real Estate Prices rise that particular market can still be the best Investment and a good place to Investment Money.  

Now when a lake or pond gets to a certain point it often finds the low point around the rim and the water tumbles out down to another low point.  With Real Estate Investments as prices rise eventually a superior type of Investment Property will start drawing buyers.  

What should Real Estate Investors keep in mind when considering an Investment:

1. Even in an otherwise falling market the cost of Investment Properties might be rising.
   
   
2. Although we tend to (and should) compare this months Investment Property to last months this should not be the primary way to evaluate the investment.  Take a look at the Cap Rate or better yet the Return on Investment (or Rate of Return) and compare it to other possible Investments.  If it measures up well Buy that Investment Property.
   
   
3. There is some wisdom in focusing on a particular niche when purchasing Investment Properties you should also be attuned to what the next Optimum Real Estate Investment Market might be and be prepared to get into that market at the lowest point - ahead of the rest of the Real Estate Investors.  

I work with Real Estate Investors all the time Helping them to find the Right Real Estate Investment Properties.  For a good understanding of Investing in Real Estate that explains a lot of complex terms and tax issues in an easy to understand manner get my Free Book of Real Estate Investing; including the Free Investor Calculator.

The Most Profitable Minute In Real Estate!

I am Not Smooth, I am Not Pretty - But the Money is Really Sexy!

Watch this 60 Second Video (or read the Text Summary Below).  Then Call me at 925-260-4321!

You Should Also Request My Free Book on Real Estate Investing!

Right now I am working with a lot of buyers on the hottest thing in Real Estate - Investing.

My clients are buying homes with CAP Rates of 14% or more and a Return on Investment of over 15%!  Not only that they are getting these homes with fixed 30 year loans.  

Most of their cost are now fixed, but rents and property values will go up over the years.  Real Estate is the absolute best investment anyone could make right now.

It is even possible to get some of these investment properties with only 10% down; in which case in some situations I think a person could get a Return on Investment of 20% or more.  

You are not going to get this kind of return at the bank or in the Stock Market; at least not set year after year.

Real Estate is a dynamic field - The market and the loan market are always changing; that is why savy investors are getting in now!

Investing in Antioch Real Estate!

This writer makes a great point about buying a home with Good Resale Value.  When Investing in Real Estate I stress the same thing.  In the Antioch area I try to get Buyers to buy homes with at least 3 bedrooms, 2 bathrooms, and a 2 car garage; 4 bedrooms are even better.

Investing in Real Estate is very profitbale right now.  Go Here and get my Free Real Estate Investing Book with the Investment Calculator.

Real Estate Investors

This post basically describes what I see in successful real estate investor clients. 

If you want to find out about Real Estate Investing get my Free Book of Real Estate Investing. 

Real Estate Investors - If you are looking around and cannot figure out who the sucker is . . . . . Well it is probably you.

Recently an Investment Property came on the market at an incredibly low price.  This home is ripe for a buy and flip.  My number one Real Estate Investor and I brought the contractor out and went over it and submitted an above asking price all cash offer with 7 day close.

Well of course it comes back that there are 13 offers to date and 12 of them all cash.  We were given a very lengthy 48 hours to put together our highest and best.  So out to the Investment Property one more time to really get our numbers together.

Honestly there are no great comps.  Fantastic home on a somewhat busy street surrounded by nice but older homes.  The home was the nicest one (or would be) in the neighborhood.  We looked at every angle to cut repair cost and keep the quality up and the appearance up.  How to market it.  We kept running the numbers.

Finnally I said, "Well there are 12 cash buyers and one of them is probably going to over bid it.  But if we get it we will spend all of our time wondering what issue we missed."  We found ourselves being optomistic in all our assestments - Well if we can get this repair done for this - If we can get an offer for this - etc. . . you get the picture.

Finally the Real Estate Investor decided not to bid this one up.  We made a good offer we could make a profit on and do a good job with the home.  I hate loosing a sale (and the listing that would have followed) but I understood and I was not going to lead my Real Estate Investor (or anyone) down the wrong path.  He has bought homes from me and will buy more in the future - we have other things going right now.

I see lots of homes around here that "Real Estate Investors" have over paid for.  Many set for months with no offers, others are poorly repaired (but look good), and sometimes I see Real Estate Investors loosing money big time.  I know one luxury home in the area the Real Estate Investor would be happy to take a loss on if he could just get rid of it. 

Real Estate Investing is a great opprotunity especially right now.  However, you have to be careful and be realistic. 

Click here For a Free No Obligation Book on Real Estate Investing. 

Real Estate Investing - How to Get the Best Deals!

Every one is going to think I am going to give an easy answer or some simple formula.  Well it is easy and simple to say, but it takes dedication to do:

Be in the Right Place at The Right Time!

Now before you get mad at me for stating the obvious I want to point out it is not so obvious.  Real Estate Deals (and by deal I mean excellent opprotunities) come to people that position themselves in the right place, the right time comes when it is ready.  You cannot do much to make the time - You can anticipate and pick the place!

For those that read my post a lot you know I like to watch my son Corbin play baseball.  He is an Allstar first basemen, center fielder, and pitcher.  There is no bigger thrill than watching him make a great play in the field.  But for him to make those great plays he had to practice, he made a lot of bad plays first, and he spent a lot of time standing around in the field doing nothing - just being in the ready position.

A couple of months ago I was at one of his travel ball games.  The coach had him playing shallow in center field.  The ball was hit hard way over his head; as soon as the ball was hit he turned around and ran towards the wall,  he looked back and tracked the ball,  he stuck his glove out in front of him and lunged, the ball hit his glove  and bobbled around and then he caught it, and turned to make the through without falling down. It was the most amazing play I ever saw him make - and no I don't have it on video.

The point is a lot of failure practice and waiting around went into that play.  More than just what we saw.  People like to brag about the good deals, they never talk about the average deals.

My sons coach made a decision to play him in center field, he apologized to me for not giving him more time at first base (where he is also very good) but went on to tell me how Corbin was the best person for that position.  In fact he is the best outfielder they have - he can make the plays.

Well in Real Estate you need a team, Realtor, Lender, Inspectors, Termite Company, Repair people, property management people, Title and Escrow Company.  If you were the owner of that team in most cases the Realtor would be a Player/Manager.  You might pick some of the players or you might be trusting the managers expertise, but that team needs to practice together and with you to make great plays.  Be loyal to the people you work with and learn to trust them, at the same time teach them your expectations.  When the deal comes along you will be ready for it.

Now from the agents perspective I am the Manager and I have a number of Investors in my Bull Pen.  I see a great opprotunity come up.  Who do I call?  Who is number one on my list?  It is the Investor that has been loyal to me, worked with me, that I have mutal trust with, and I know that can close a deal?  You bet it is!

If I know what an investor is looking for I can help him to jump on those sorts of properties.  I invest a lot of time in finding good transactions; I want to show that to the Investor that is not wasting my time.

When most investors brag about a great deal, they have a number of other good deals they have done (and maybe a few that are not as good), but they were in the game and in the right place to get the great deal.

To learn more about Real Estate Investing get my Free Book of Real Estate Investing!