Real Estate Investing Weekly Wisdom #293 - Market Crash!

Happy Father's Day wishes to you! Brianna did a fantastic job with the camera!

Will definitely ck out the questions.

Karen

Happy Father's Day to you! It is the most important job in the whole world, & it is the most fulfilling! Karen you're right, she has one steady hand!

Happy Father's Day to all the men who take on that role. We need you and appreciate you. Thank you for all that you do. And thank you Dean for your wonderful message to Fathers.

Happy Father's Day Dean and all the DG Fathers.
I did my part, my questions have been picked.

Talk about market volatility,
Ironically, just the other day, I too converted my stock holdings out of the market and into a real estate related product. When I spoke to my adviser, the market was up and doing well so the anticipation was that it was a good time to sell. Between the time I got this advice and the actual time of the sale the same day, the value dropped $900.00 between all the sold items. And that was in an UP market! Thankfully, I was still ahead of the game from the buy price but that was enough of a lesson. No more S & P for me, just some R. E.

Have a great week, I know I will now!

Andy Sager
DG's AndyS
CFIC & IE member
2013 & 2014 EDGE attendee

because of my job cuts (-60%) i now have 0 cash flow...!!!
what do you recommend is the best way to invest (time/internet) to achieve a self/sufficient cash flow with investing in real estate?
this might just be another way to ask how to borrow real estate investment capital?

Happy Father's Day Dean and all DG men. Hope you are having a great day.

To all the fathers out there. I hope this day was a great one for everyone. The world is and will continue to be a great place because of the values that Dads help instill in their children.
I am looking forward to finding the investors that are ready to invest in RE through me. Thanks for the heads up Dean. Also, what a great job Brianna did with the camera.
Amanda

I was recently turned down, for the first time in my life, for a loan on a property I want to acquire as my own new residence, using my VA Loan privilege as on my current home, but with much eligibility remaining. I know the reason was due to excessive unsecured debt incurred during a short-lived, mid-life second marriage.
Question - Would it be prudent to first become more proficient at Wholesaling, as my preferred DG strategy, for purposes of cash flowing vs. cash flow, to pay down my unsecured debt in larger chunks?
Secondly - if it is wiser to balance-out my real estate portfolio by adding some Buy & Hold, Tax Liens, and Trust deeds, does anyone on your staff know how to secure VA funding by demonstrating rock-solid tenants and property management in place?

I am so proud and humbled to be a father, I love my children with all of my heart. Dean you are absolutely right about the stock market, get out now and go liquid. I have been out of the stock market for weeks.

Briana great job at filming your dad. My oldest child, is Briana, It's a very special name.

Dean, doing exactly what I've been taught, working Full Time as a electrical design engineer for Boeing, most importantly a Full Time REI. Closed on the 1st one last week, fire damage from the real estate attorney, for $15,000, rehab will be approximately $25-$30K and I'm managing the project for my partner splitting the profit 50/50. Also managing the rehab project for a Duplex one block from the college. Bandit signs in the front yard brought me the 3rd property, Put under contract (PA) for $10, closing next week, purchase price $22K (Building is 40' X 90', 3600 sq ft) will convert to at least a 4 plex. Managing 2 rehab crews. Myself and contractor friend removed asbestos Siding shingles on the duplex today for $200, would normally cost at least $2000.

Putting together a proposal to purchase 68 condos of a 110 Condo complex to take control and get rid of the useless HOA. All the owners of the 68 units are ready to sell and the bank is willing to lend. I'm so busy right now doing my Full Time REI it's awesome. Almost no time for my real job. Ha! Ha!

One last thing, put in an bid and won a HUD auction home (3BR/2Bath 1800sqft 3 car attached garage and swimming pool for $59,500 with an FHA 203k Rehab loan of $25,000 for a total loan of $83,500 ARV is $115,000 low, $125,000 high. When the home rehab is complete I'll be renting the 2 bedrooms each at $600/mo or $1200/mo. A total positive cash flow of $400 + per month, just from 2 roommates.

This is the one day of the year where I get to sit on my throne. I'm not talking about the one we are all familiar with, but the big chair in the living room, or the one on the deck or porch. This is the day when the kids give us our props and I am all about enjoying the heck out of it. It's short lived but I am enjoying it.

Tomorrow it's back to the norm but for now, I'm the "King of the Castle." Loving it.

Anyway, thanks for the message concerning the stock market Dean. My focus is on REI and will continue to be so in the coming years.

Thanks again. I will fill out the questionnaire ASAP.

Valiant

Your daughter did a great job, with the camera. Thanks for the information on stock market,I will do the survey, Carol In Texas

Dean, if you had not mentioned it, I would have thought the camera person to be an experienced adult. "Good job Brianna! You should hold the camera for your dad more often."
Q: How does a Canadian get to refi property from US banks?

Best regards,
Dan

Happy Fathers Day to all men and thank you Dean for the stock market information.

Gildardo

Thank you and happy Father's Day to all in the Graziosi family and to all fellow DG family members. Brianna great job manning the camera.
As far as issues, we are one big family, yet I still can't seem to overcome anxiety of talking to others about lending me cash for a deal. Aside from going to real estate meetings what are really good techniques for building self confidence and instilling trust to total strangers. All I need to find is that one person who can push me to the next level. Thank you Dean for all you do for us.
Michael Woode

Yep, yep we are cashing more stock OUT and buying more houses! Ya baby.
You look cute without glasses
Brianna did great!

whats up Dean, thanks for the message. I posted a question in your list which I assume will not have to many votes. As i continue to do more real estate activity, more offers, more agents more things to keep track of. I seem to be getting stuck handling and managing information. I find myself more busy with spreadsheets and creating back end systems to keep myself organized. I know this is to some extent necessary but sometimes I feel I spend to much time on it. If you happen to find yourself with nothing to do and time to answer a 3 fold question, what key tasks do you ensure are done each day? Which do you do personally and which do you delegate?

Thank you for the call to action! I need to buy more houses and make more deals! I'll send you my questions shortly and great job on the camera work Brianna!
Make it a great week!
Thom

Thanks Dean, I will send you 5 questions?

Happy Father's day Dean, I will check out the questions and choose 5. More money coming into the real estate market, I'm excited!!!

Dear Dean, you are precisely the reason we left the stock market and went to the "Real Estate
Market". We are very gratefulfor having found you.
Thanks Again,
Kevin

for the heads up! As always, you keep us current, and motivated!!
You definitely got me agitated with this Weekly; I have been buying and holding, but I wish I could buy FASTER!!!

thank you! Stocks out, more real estate in!

Brianna did awesome with the camera! Thumbs up for her!!

ValerieFB9K6

Hope you had an amazing Father's Day !! I am continuing to acquire and seller finance homes as you suggest. Every one is one step closer to " freedom". I am sure glad to be in the right place at the right time !!
Jay

And Brianna should do the next eDGe 2015! That was really really cool Brianna! Will watch over and over, thanks for the encouragement DEAN.

Hi Dean,

Happy Father's Day...... another weekly wisdom that makes us pause a minute and step back, and think...

I took the survey and asked a question in the " Other "

btw......I thought you said that the we need to stay away from all the negative news....isn't that's a newspaper you are reading?...hehe, just kidding....

Thank you for all you do......XO

Have a great week........

Regards,
Sharon

Hi Dean Adamina here, I hope you had a GREAT FATHER'S DAY as everyone else in this place.
CONGRATULATIONS TO ALL OF YOU!!!!!!

I did my DUE DILIGENCE (LOL) and sent my questions, but now I have a question for you:

WHEN AND WHERE ARE WE SUPPOSED TO FIND OUT THE ANSWERS? will it be here or on a SPECIAL WEBCAST? PLEASE LET US KNOW.

Some of those questions a lot of us know the answers as we follow you and all the coaches here at DG and IE too on regular basis; but there are some newbies that have just begun this journey and I bet you they are anxious to find out the results.

I wish there was a way to communicate with you by PM or something because it will make us feel that you are nearby to advice us, of course in a general way if I may say so, I understand there is a way to check some questions and answers but sometimes we have some other issues that cannot be expressed as a public message and we cannot do anything. Believe me there is a lot of people that has this concern.

Thank you in advance.

Adamina.

Really liked your message this week Dean. I would add this... This side of February '81 when interest rates hit 18.5%, not since then have I been caught in a Black Tuesday or Thursday, etc.. I've missed every crash. The closest I got was still being in the markets 14 weeks before the Dot.Com's failed. Usually I'm all cash 4 months or longer. How do I know? Simply put, I follow "the big boys" and some of them are as smart as you are in what they do, as you are in our Real Estate Investing Business. Myself, I watch the California Unified School District and when they start getting out to protect those pension funds... I'm gone like the wind! I've been trading my own accounts since 1980. I can read a chart at a glance and I task my Investment Team on a variety of investment areas. I've got a company to run and before I can give over to others making certain decisions, I must know we are on the same page for one, and that I am being very clear about what I do and do not want to invest in. And I still cannot time the market downswings... They say anybody can get into the markets, but only the smart ones know when to get out! Since I figure I'm not that smart, I just watch what those that have proven themselves do... You are so right about hard assets... Even Warren Buffett just bought Burlington Northern Railroad and all of their assets and more & more/... Of course R/E! But like the companies you invest in, one needs to know their real estate market(s) and do ones homework!

Loved the warning Dean. Thanks!

Your adorable daughter did great with the camera too.

Take care,
Brenda Boyd

Hi, I just learned about this from Matt Larson in The Edge 2014. He explained all about why wholesaling is your best strategy, liquidity & also how to deal with banks. He is on day 1 part 2. I also recommend that you listen to Ali - He's the very 1st presenter. I learned so much from these two presentations - If they were all that I received, it would have been well worth the purchase price of The Edge 2014. Hope this helps you!
Penny

Sorry y'all. I thought I was responding to a specific comment with my above post. Anyway - Hi Dean, Happy Fathers Day! Thanks for the daily wisdom. I need info/education (detailed) on using savings, IRA's, 401K's ... for RE Investing. I want to be able to educate my buyers/potential buyers. I know you have to have the education some place. I am an IE member & also have the Edge 2014. Where can I find this education/info?
GREAT JOB BRIANNA!!! Move over camera crew!

Thank you again for keeping us going in the right direction & motivation as always:)Awesome Nuggets
Happy Fathers day to all !!
Sent my questions also ,
Thank You Dean for always sharing
TO ALL OUR SUCCESS!
Darren from Calif