Creative Real Estate Investing: Happy Thanksgiving

On behalf of myself and everyone at Gage Consulting Group http://www.JGage.com , we wish you a Happy Thanksgiving to you and yours.

James Gage

Creative Real Estate Investing: The Economy & Leveraged Real Estate Investing

National Radio Debut

"The Economy & Leveraged Real Estate Investing"

Event Info

Host:	Brian Higgins & James Gage
Type:
Network:	Global

Time and Place

Date:	Saturday, November 29, 2008
Time:	9:00am - 10:00am
Location:	XM Satellite Radio Channel 169

Description

Hello All:
James Gage here, with a quick note to invite you my national radio debut on " The Economy & Leveraged Real Estate Investing" - the details are below...

See ya there.

Saturday, November 29, 2008

XM Satellite Radio Channel 169

"Mind Yo Business Radio Program. AKA MYB Talk w/ Brian Higgins"

Time : 9 AM, EST

Topic : " The Economy & Leveraged Real Estate Investing "

Real Estate: Thanksgiving & Real Estate Marketing

James Gage here with Gage Consulting Group hoping that this e-mail finds you and yours in good health, and wishing you a Happy Thanksgiving.

So what does Thanksgiving and real estate marketing have in common? If you don’t do it the right way it won’t come out with the desired results!

If you're like most real estate investors your head is probably still spinning from the state of the real estate market and economy – you’re not alone…
You may be asking yourself how the heck can you make money in business, or for that matter as a real estate investor in these troubled times. Well, here is the “Magic Bullet” answer!

Knowing how to market! Sounds like a no brainer- right? Wrong ! Marketing is like opinions, everyone has one. As many of you know I called this market melt down both in real estate and the financials some 24 months before it happened in Falls church, VA at Frazier O’Leary’s REI group.
As you also may know my approach to real estate investing is with a 3 prong attack plan: 1. know the strategy you will use to control the property 2. know how to negotiate like a seasoned pro, and 3. know how to “Fusion Market”.

With real estate investors running scared and real estate buyers at a stand still, with limited amounts of qualified buyer’s to buy or lease option your deals, it is now crucial for you to take your marketing skills to the next level!

That being said, you won't want to miss out on "Real Estate Marketing The Fusion Way!"

Before I let you go to read over exactly what these CDs contain, many individuals have called me and ask if I would put together a step-by- step CD series on "Real Estate Marketing The Fusion Way!" well your wish is my command. I have put together a 2 CD

Set on that very subject please visit the following link for more information :

http://www.jgage.com/real-estate-marketing.htm

but it doesn't stop there!

Normally priced at less then a 1 trip to your local gas station at $37.00, it is a great value if I do say so myself. But for the next 3 days (Nov 23 - Nov 26 ) I am extending to you, my newsletter subscribers the astonishing price of only $18.50!

That's a whooping 50% off my normal website store! Enter promo Code 555 on you order/check out page to receive your discount.

After Nov 26 it will return to the normal price of $37.00. You maybe asking why am I doing this? Simple, I am committed to getting this information into as many investors hands as possible, thereby getting our properties sold or under control; not only does that increases our bank accounts $$, but it will also help our economy hopefully stabilize.

So please visit the link provided for more information on this jam packed 2 CD Set :

http://www.jgage.com/real-estate-marketing.htm

Don't forget promo Code 555

To your success,

James A. Gage

www.jgage.com

With theses 2 jam packed informational CDs you will never have to worry about marketing again!

What you will learn on this powerful 2 CD series:

Create winning and effective awareness campaigns that attract qualified buyers overnight!

Learn how to ignite real estate sales and increase commissions overnight through innovative marketing techniques that James Gage — who has made a killing throughout his successful
investing career in niche markets such as lease options, short sales and probate homes — will reveal during this special 120-minute 2 CD series.

James will teach you how to become an "outside of the box real estate marketer," blending various strategies — traditional and new — to create winning campaigns in 24 hours or less. It's all about "fusion" to gain exposure — the more eyeballs you can attract to your listings and services the more money you will make.

And with repetition comes recognition, which is paramount in a market starving for buyers and agents and brokers fighting over scraps. The time to change is now ... the calls, emails and inquiries will start pouring in tomorrow.

Here's just a sample of what you will learn on the 2 CD Presentations:

• Old approach vs. new technologies

• Effective marketing on a shoestring budget

• What works in different market cycles

• How to get winning campaigns up and running in 24 hours

• Should you have a website?

• Marketing strategies & techniques your competition is not using!

And of course like all of James's products you will receive much

more.

Click here to get your copy !

http://www.jgage.com/real-estate-marketing.htm

Creative Real Estate Investing: Guess who is looking for more money?

I hate to tell you I told you so, but I told you so! If you remember I posted on my blog back in September that this 700 billion bailout ( more like 2-3 trillion) was a joke, and that they, the government, would come back to us looking for more money or stating that they mismanaged the funds that they were entrusted with.

Let’s take a look at what Motley Fool got from Mr. Paulson, AKA “Boy Wonder” speech today:

“Treasury Secretary Henry Paulson's recent comments about his shifting strategy for tackling the financial crisis have made many people wonder whether they're being robbed blind -- and, adding insult to injury, whether the perps are kind of clueless, too. In addition, he opened the door for the possible need for another cash infusion”.

This is too funny, if it weren’t so sad. You can’t make this stuff up!

To profitable deals,

James Gage

Creative Real Estate Investing: Foreclosure News

Hello All:

Here is a small sample of what’s happening around the country with foreclosures as of November 2008.

Florida: Foreclosure filings up three fold over last year at this same time! October new and existing filings totaled 20,703 !

Georgia: At least 350,000 Georgia homeowners fell at least 60 days behind on their mortgage payment since the beginning of the year.

New Jersey: State officials have begun to roll out a program requiring mandatory mediation on certain foreclosure proceedings; this is the latest effort by local government to deal with a growing tide of foreclosures.

California: A new law mandates California lenders to notify a homeowner before filing for foreclosure.

Texas: Delinquent payments have led to a total of 11,526 foreclosure filings this year. Foreclosure filings are up 21 percent over the same time last year in the state of Texas, including the once hot market of Austin!

Wisconsin: Will receive an estimate $39 million from the federal government to stabilize neighborhoods and assist with the housing crisis.

Short Sales: How to Influence a BPO (Brokers Price Opinion) Ethically!

What Exactly Is a BPO?

Broker's Price Opinion (BPO). A BPO is the opinion of property value given by real estate agent or broker. The BPO is an estimate of the selling price of property based on condition of the subject house, selling prices of comparable homes in the area and other conditions. This process is often used in the place of a full appraisal when a property goes into default and considered for loss mitigation. You must understand the BPO is an art and not a science so values can vary hence the reason for influencing a BPO. As an investor you want the BPO to be reported to the servicer as low as possible.

Comparable's - must be within 1 mile radius or less of property being valuated and typically sold within the last 6 months.
Comps are based on square footage, lot size, condition, bedroom/bathroom...which are graded on a plus or minus scale. If the comparable home has a garage and the subject property does not the subject property is less valuable the price to add a garage

The BPO always indicates if the property is vacant or occupied. If vacant the property must be secured with or without homeowner valuables inside the home.

There are 3 subject properties used to indicate property value. The BPO contains photographs of the property usually front, sides, street scene backyard and inside pictures if not a drive by BPO, if there is physical damage it.

What to expect during a BPO:

The agent will take pictures of the surrounding neighborhood, subdivision, or area, and make the following observations – they will :
Inspect the overall condition of the home
They will Estimate the cost of repair
They will walk the property and move quickly typically have a full day of reviews so in a hurry a few days later they Submit a detailed report of their research to the lender.

How to Influence the BPO

When speaking with the lender always request a Full BPO or Appraisal, explain the inside of the house is in worse condition than the outside and to get real value the agent needs to go inside. Give the lender your phone number as the contact number and explain to the lender that the homeowner is not available and there is no lock box. You have to let the agent in the house. You have to be flexible because they set the appointment and want to get the request out. Be sure to run low comps, high repair costs and any other flaws in the property or information about the neighborhood that will justify a discount and have available a list of negative factors, including a list of sexual predators that may reside in the area.

You need to be very familiar with the property and arrive early to do a last minute run through to familiarize yourself with conditions again. Be sure homeowner is not available for the BPO. The BPO agent will ask questions to homeowner and disregard your opinions and information. Be sure you are thorough with repair values and be very close with estimates. As the agent walks the house follow the agent very closely and highlight defects and give history of the house including what you are doing and what price you need in order to buy the property. Ask the agent if they have the same opinion of the property value. Be sure you are not too intrusive and let the BPO Agent be in charge and thank them over and over again for their time. You need to be the expert on the neighborhood so the BPO agent will trust your opinion.

Note: More and more banks and mortgage companies are using appraisers rather then real estate agents to do BPOs. However, the above tips would still apply none the less.

Creative Real Estate Investing: Get Rid of Bad Tenants; Find and Keep the Good Ones

When you're a landlord, most of your time is spent dealing with maintenance and tenant issues. If you're lucky (and you've done your homework), your tenants don't cause too many problems - and the problems that do crop up are minor.

However, despite your best intentions, the person who looked like a great tenant on paper can become the tenant from hell. Bad tenants cause real headaches, for a number of reasons:

• Evicting and replacing them is aggravating, costly, and time consuming
• Their disruptive and noisy behaviors can drive out your good tenants
• They can cost you big money if they damage your property

Before I give you my hard-earned advice about how to find and keep good tenants, let me first describe the four types of bad tenants.

Deadbeats - Simple - these are the people who don't pay their rent.

Demanders - These types of tenants drive you crazy with their incessant demands. On the other hand, demanders are usually the best bad tenants to have because they have high expectations for themselves as well and are usually well-behaved and neat.

Disrupters - The worst kind of tenant: These people drive everyone else in the building crazy by playing loud music, arguing, or exhibiting other disruptive behaviors.

Destroyers - Not to be confused with a renter who accidentally breaks something, destroyers are the type that repair their motorcycles on your new carpeting or get drunk and break your windows.

So how do you weed out the deadbeats and destroyers? In addition, how do you work with the demanders and disrupters so they don't drive you and everyone else insane? What follows are my six tips for finding and keeping good tenants:

1. Check all references

As with job references, a prospective tenant's previous landlord won't give honest feedback because they're afraid of being sued. When conducting your reference checks, instead of asking questions regarding a prospective tenant's character (e.g.: "Was this person a good tenant?"), ask questions based on facts that can be documented.

You can ask, for example, if the tenant paid his rent on time each and every month and whether he had any late payments. You can also ask for any incidents of property damage or disruptive behaviors.

It also pays to verify job and income history to ensure your potential tenant can pay the rent each month.

While still useful, a credit check is less important. Due to divorce or medical issues, people find themselves having to sell the family home and become renters. Such events can kill someone's credit in the short-term - which is why it's much more important to verify job and income history. A person who is working and making good money will often be grateful for the opportunity to help put his life back together by being a good renter.

2. Set clear expectations from the get-go

Many tenant problems can be traced back to the landlord's failure to set clear rules and consistently stick to them. In addition to stating when the rent is due, the lease should also state any rules about modifying the property, acceptable noise levels, any building-wide rules (e.g. no on-property vehicle repairs, no pets, etc.), and contacting the landlord.

During the lease signing, you should go over these rules and expectations in detail to be sure your tenant understands them.

3. Learn how to "read" potential tenants

As with anything, you cannot pre-judge people based on appearance. One of my best tenants had long hair, biker boots, and tattoos when I was landlordind. One of my worst tenants was a gentleman in immaculately pressed slacks, tassel loafers, and a designer polo shirt. When meeting potential tenants, watch for the following:

• Over-eagerness - Your landlord "antennae" should be humming if someone wants the place right away - like now. This could mean that they need to get out of their current situation fast.
• Lateness - If a potential renter shows up to the appointment late, doesn't return calls, or seems unreliable, pay attention. Usually this type of person will be unreliable in terms of paying the rent, too.
• General weirdness - Always pay attention if someone makes the hairs on the back of your neck stand up or if he or she just seems "off" in any way. Often times we dismiss our suspicions, only to find out later that we were right about our instincts.
3. Turn "bad" tenants into good tenants

As I said, demanders are the best type of bad tenant to have - they demand things because they have such high expectations, which means they want to keep a property looking nice and well-maintained.

To keep demanding tenants at bay, especially those who expect you to rush out at midnight to fix a broken light switch, give all your tenants a cell phone number they can call to report any problems, rather than your home phone or business number. Let them know what hours they can expect to reach you, then be sure to check for messages regularly.

Give disrupters the benefit of the doubt at first. People used to living in detached homes forget how noise travels through the walls of apartment buildings, so they may not be aware that their loud music or late night guitar playing is bothering others. Often, just asking them to turn down the volume is enough, but if the problem persists, they've got to go.

5. Enlist the help of tenants you can trust

As a landlord, you want to know immediately if there's a real emergency with your building - for example, if it's on fire or a water main is busted. However, you don't want to give out your home or business numbers on the lease - because then you have those pesky demanders calling you night and day.

In this case, you'll want to find the most reliable and trustworthy tenant you have and give him or her your personal phone numbers - with instructions they're to be used for emergency purposes only.

6. Be a great landlord

The best way to minimize bad tenant problems is to be a good landlord to begin with. This means staying on top of things and keeping your promises. Be proactive about maintaining your property, promptly fix things when they're broken, and ensure contractors and repair people arrive when promised.

In short, treat your tenants they way you would want to be treated. You wouldn't want to sleep in a bedroom with a broken storm window in the middle of winter - and neither do your tenants.

Finding and keeping great tenants takes some time and due diligence, but your efforts will pay off. State your expectations and rules up front, conduct full reference and job/income checks, and maintain your rental properties as if you lived in them. Your tenants will thank you.