The Secret of The Real Estate Flixer Technique

Since we have worked together before, I would like to share with you an investing process that is unfamiliar to most people. Most real estate investors are familiar with Flips and Fixer-Uppers. However, the new process that I am referring to is a hybrid of Flips and Fixer-Uppers. I call this technique a Flixer.

By definition, a Flixer is a property that you buy low, sell high and make 60-75% of the potential Fixer-Upper profit by doing one of the following:

1. Act like you are going to do the fixer-up work, but then sell the opportunity to someone else.

2. Begin the fix-up work, but then sell the opportunity to someone else who will finish the work for a discount on the finished price.

3. Start and stop the fix-up work anywhere during the process to sell for a discount on the finished price.

The Flixer technique is all about finding properties, identifying their best uses, exposing others to those best uses through great marketing, and profiting by selling the property to the next owner.

As we talk about the potential uses for property, the main question that always comes up is, “What is the property’s highest and best use?” Most people are not aware of the many uses that are available in the property.

A recent poll conducted by Mike Watson Investments revealed that the average investor guesses there are 5-7 different uses for a property. However, research shows that most cities and counties offer well over 100 different uses for properties.

These findings emphasize an important point: people are either unwilling or unable to be creative when it comes to optimum property uses. Therefore, being able to see properties for what they can be instead of what they are right now is a very lucrative skill to posses.

Flixers are great because you can make profits in the short term. The only time required for ownership is the time necessary to market the property and sell it to the next owner. Flixers are also good for getting the property under contract and assigning it during the contract time to another owner for an assignment fee. This allows you to profit without property ownership. You can then do more deals with fewer resources because you don’t have to close on some of the properties.

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Happy Investing,

Kendall E. Matthews, CRMC
Phoenix, Arizona Investment Real Estate

P.s. Get my new e-book “101 Legit Tips To Boost Your Credit Score” Click Here to learn more.

P.s.s. Click here to receive my Free mini e-course for new and experience real estate investors. “7 Steps To Better Real Estate Investing.”

Get Virus Protection Before A Major Meltdown

NOTE: This article was not written to scare you, but rather to inform you of the dangers of getting a virus. Although it is unlikely that you will ever experience one, the risk is certainly there – we have had many experiences ourselves! Therefore, it is important that you take a moment to learn exactly how to prevent an infection before it occurs!

When it comes to computers, there are two words guaranteed to get a reaction from people … the first is crash … and the second is virus! In fact, people work themselves into such a panic when faced with the possibility of a virus, you would think they had been exposed to Eboli!

We’ve already taken some time to discuss how you can protect yourself against hard drive crashes, so now it is time to tackle the dreaded virus! You see, although computer viruses can do damage, they are not life threatening – there are steps you can take to protect yourself against them!

First, let’s make sure we’re all on the same wavelength by taking a moment to define what, exactly, a virus is! Viruses are programs that infect other programs by replicating themselves within the other programs. Like their real world counterparts, viruses can also mutate as they are passed from one system to another.

Many viruses don’t do a heck of a lot … or they are so poorly designed that they are almost immediately caught by virus detection software. For example, there are some viruses that are designed to send email to all of your friends saying “Hi!” or “Merry Xmas”. That’s all they do. They are a virus… a pretty stupid virus… but they do not do much more than cause people to panic!

The panic is caused by the fact that people do not understand what the virus is doing. They imagine all kinds of horrible things including dead and eviscerated hard drives! So, even though some viruses are not intended to do damage, they are still malicious because your computer and your computer programs are being tampered with – without your knowledge or permission!

In some cases, even these so called “harmless viruses” can still do damage because they are often poorly programmed by people who do not fully understand how software and hardware interact. Because these novice virus makers do not know any better, they can potentially do incredible amounts of unintended damage.

However, the really dangerous viruses are those that are purposefully programmed to do damage to your computer! For example, some are programmed to overwrite the files on your hard drive. With these kind of viruses, panic is justified!

Some viruses are programmed to become active when you launch a program … or on a certain date … so it not surprising that there were all sorts of nutcases out there who tried their hand at creating a nifty Y2K virus! Other trigger dates are Friday the 13th, Christmas, birthdays of famous people, etc….

Viruses fall into one of several categories, depending on how they are spread.

1. Boot Sector or System Sector Viruses

These viruses attach themselves in your computer’s system sectors. System sectors are areas on your hard drive that execute when you boot your computer. These sectors are important for the overall functioning of your computer.

Viruses are passed by infected floppy disks, not by sharing programs or by executing files. One of the ways you can tell whether or not you are infected with this type of virus is to run “Scandisk” (which is a windows based drive integrity program). Scandisk will scan your entire hard drive (or drives) and notify you if there are any “bad sectors”. Multiple bad sectors can mean that you either have a virus, or that your drive is getting old.

2. File Viruses

This is the most prevalent type of virus, usually infecting common files ( .exe, .com, .sys, .dll, or .bin). When a program is started, the virus begins replicating itself and attaching itself to other programs. The easiest viruses to detect are those that overwrite program files. However, the deadlier viruses are those that slowly alter files, making changes to programs over a period of time.

3. Macro Viruses

Macro Viruses attack the templates of your various computer programs. For example, Microsoft Word contains a number of useful templates for resumes, fax cover sheets, etc. The virus is designed to infect the template so that any document created using it will be damaged and infected. As a result, Macro viruses can spread very quickly, as most people do not realize that documents and spreadsheets can be infected.

Of course, there are also some other pretty nasty little things that people mistakenly believe to be viruses. These include:

1. Logic Bombs

In real life, bombs are not considered to be a threat until someone triggers them. Logic bombs work much the same way… they can sit in your computer for years, twiddling their fingers until something sets them off. This “something” can be a date, the number of times a program is used, the deletion of a particular file, etc. When the bomb is set off, it does something really nasty… it may change bits of data… or delete entire files!

2. Worms

Worms can do a great job of gumming up multi-unit networks because they are designed to multiply themselves, using up more and more space on your hard drive… until it’s completely full!

3. Trojans

In order to wage battle upon the city of Troy, Odysseus hid his Greek troops inside a hollow Trojan horse. The Trojans took the horse as a gift, not aware that it was filled with warriors. This same technique is used by “Trojans”, which are usually given to you, disguised as something useful like a program. However, when they arrive on your hard drive, they proceed to declare war!

There are also a number of other things that people blame on viruses… even though a virus was nowhere in the vicinity of their system. These fall under the following categories:

1. Faulty software

2. Faulty hardware

3. Faulty users (AKA people!)

Most people are totally intimidated and mystified by viruses – they do not understand how you can get them … or how you can’t!

Here’s how you can’t get viruses:

1. From your toilet seat.

Just kidding! What are you doing with your computer in the bathroom anyway? Some places are sacred, don’t you know!

2. By reading a web page.

There are definitely security issues while on the web, but you cannot get a virus by simply viewing a web page! The way you could get a virus off the web is by downloading a program or file and then executing it. If you download anything from the web, scan it for viruses before you open it!

3. By simply opening your email.

You cannot get a virus by simply opening and reading your email. The danger is in the file attachments! There are many email programs that automatically launch applications such as Word, WordPad, or Access when an attachment is received. Although this feature is intended to be “helpful”, it can actually be quite dangerous and should be disabled! (The “Help” file of your email program should provide instructions about how this can be done.) You should always be sure to scan any attachments that you receive before opening them – attachments are quite possibly the biggest threat when it comes to viruses! Always be extra careful opening attachments from people you do not know.

4. Downloading files.

You will not get a virus by simply downloading a file. However, opening the file or executing a program might! Once again, always be sure to scan anything that you’ve downloaded into your system. That way, if your anti-virus software says that the file contains a virus, you can simply delete it! No problem!

So by now, you might now be wondering about how you CAN get a virus!

So happy you asked ….

1. Executing programs that you have downloaded, borrowed, and sometimes even purchased! As I mentioned above, this is by far one of the most common ways to become “infected” with a virus. However, people do not realize how easy this is to prevent! All that you need to do, in order to fully protect yourself, is run a virus scan on any program that you borrow, download or purchase. (Yes, unfortunately, there are some very shady people who sell programs with viruses in them! It is rare, but you need to be aware that it DOES happen!) There is more on what virus protection software you need below.

2. Inserting a CD. This is also uncommon, but possible. The popular virus scanners will be able to pick this up and stop the virus in its tracks!

3. Opening files that arrive as email attachments, as downloads, or on floppy disks. As I’ve mentioned above, these are the kind of file that you want to scan for viruses BEFORE you execute them!

We’ve talked about how you can and cannot get viruses. Now it’s time to discuss your protection options. It’s pretty scary to think that you can get a virus simply by opening a funny email that a friend sent you… but it does happen! However, if you protect yourself properly, it is unlikely that you will ever have this problem!

The best way to prevent viruses is to install virus detection software. However, do not just install it and forget about it! New viruses are created every day, so you need virus detection software that will automatically update itself on a regular basis. Once a week, if not more frequently, is usually the best.

Virus Protection Software

There are dozens of packages available from your local software dealer … or through Internet downloads. Be sure that you can get regular updates for the package you choose. Some even offer versions that will automatically update themselves every week by logging online, protecting you against the multitude of new viruses that are created every day!

The following is a list of the most popular Virus Protection software (though it is by no means comprehensive):

McAfee has a very nice virus section on their site. It includes virus alerts … a useful section explaining what to do when you have been infected by a virus … and regular updates to their anti-virus software for both PCs and Macs. This is the software we use and rely on to defeat any virus threats. We simply could not survive without it. It has been very reliable and we would not trade it for the world.

Integrity Master from Stiller Research offers a 60 day free trial.

Symantec’s AntiVirus Center also has virus alerts and regular updates for both PCs (Norton AntiVirus) and Macs. I do not find their virus section to be as well organized as McAffee’s … but all the information you will need is there!

You can also take a look at Dr. Solomon’s website and software. They cater to European markets and have software in a variety of languages including French, German, Italian, Spanish and more.

Virus detection software is your BEST defense against the malicious damage viruses can do to your computer and your software programs. If you don’t already have software in place, NOW would be a good time to get some! I cannot stress this enough – you should get software that will automatically perform updates! You should not need to do any work other than the initial scheduling, and even that should be simple. Although Symantec’s site is not particularly well-organized, it has the easiest and most user-friendly update system I have seen.

If you want to find out about computer hoaxes and myths visit kumite.com.

You can’t buy “disaster insurance” for computer viruses or for hard drive crashes. However, you can get insurance in the form of anti-virus software… and by backing-up your data on a regular basis! If you are not already using anti-virus software, NOW would be a great time to start!

Don’t wait for disaster to strike… be prepared!

ABOUT THE AUTHOR: Internet marketing expert Derek Gehl specializes in teaching real people how to successfully start, build, and grow their own profitable online businesses on small budgets. To get instant access to the step-by-step strategies, tools, and resources he’s used to grow just $25 into over $60 Million in online sales, visit: Online Marketing Tips 

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Happy Investing,

Kendall E. Matthews, CRMC
Phoenix, Arizona Investment Real Estate

P.s. Get my new e-book “101 Legit Tips To Boost Your Credit Score” Click Here to learn more.

P.s.s. Click here to receive my Free mini e-course for new and experience real estate investors. “7 Steps To Better Real Estate Investing.”

Mortgage Interest Rate Real Estate Articles

CNN Money, August 13 – Mortgage borrowers look for stability
Freddie Mac said refinancing borrowers are choosing fixed-rate loans, not adjustable-rate ones.
http://money.cnn.com/2007/08/13/real_estate/more_fixed_less_ARMs/ 

MSNBC, August 13 – High-risk mortgages turning into toxic mess
Experts believe the biggest problems will emerge during next 16 months
http://www.msnbc.msn.com/id/20216643/from/ET/ 

CNN Money, August 13 – Mortgage meltdown contagion
A grim forecast has economists more pessimistic over how far the collapse will spread to the rest of the economy.
http://money.cnn.com/2007/08/10/real_estate/mortgage_meltdown_crushing_other_markets/index.htm 

CNN Money, August 11 – Who can’t get a mortgage now
Buyers with good credit and a down payment will make out well – all others, prepare to pay.
http://money.cnn.com/2007/08/10/real_estate/mortgage_rates/index.htm 

Market Watch, August 7 – Steady Fed sees risks to growth but keeps focus on inflation
The Federal Open Market Committee voted unanimously on Tuesday to sit tight on interest rates and keep its focus on inflation, but at the same time acknowledged there were downside risks from the recent turmoil in financial markets.
http://www.marketwatch.com/news/story/steady-fed-keeps-inflation-focus/story.aspx?guid=%7B8B817A77%2DB337%2D4B51%2DBB96%2D592430BDEDED%7D&dist=SecMKTW 

Market Watch, August 7 – Alt-A mortgage-backed securities in firing line
So-called Alt-A mortgages, which were considered higher quality than subprime home loans, are also suffering from rising delinquencies and the harsh scrutiny of rating agencies such as Standard & Poor’s and Moody’s Investors Service.
http://www.marketwatch.com/news/story/alt-mortgage-backed-securities-firing-line/story.aspx?guid=%7BA1B91AAA%2DCD87%2D45D5%2D8814%2D5BBAE12D50E4%7D&dist=SecMostMailed 

Nation’s Building News, Week of August 6 – Mortgage Interest Rates Drift a Bit Lower
Mortgage interest rates declined slightly last week for the second week in a row, according to Freddie Mac’s Primary Mortgage Market Survey, and the company’s chief economist, Frank Nothaft, said that he was beginning to see at least an inkling of good news, with some signs of market stabilization.
http://www.nbnnews.com/NBN/issues/2007-08-06/Economics+%26+Finance/index.html 

Market Watch, August 3 – Mortgage crisis may prompt Fed to cut rates
The mortgage crisis that’s shaking capital markets could encourage the Federal Reserve to cut interest rates, economists said this week.
http://www.marketwatch.com/news/story/mortgage-crisis-may-prompt-fed/story.aspx?guid=%7B34328864%2DDF32%2D4FA9%2DB68E%2D70DB7074F33A%7D&dist=SecMKTW 

Nation’s Building News, Week of July 30 – Mortgage Credit Standard Tightening May Be Near an End
The worst of the tightening of credit standards for home mortgages resulting from the emergence of problems in the subprime market early this year may be drawing to an end, NAHB Chief Economist David Seiders told reporters in a July 25 teleconference on the mid-year outlook for the housing industry.
http://www.nbnnews.com/NBN/issues/2007-07-30/Front+Page/index.html 

Reuters, July 23 – U.S. mortgage rates unchanged on Monday – BestInfo
The average rate on a 30-year U.S. mortgage with no upfront points was unchanged at 7 percent on Monday, according to BestInfo Inc.
http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2007-07-23T200126Z_01_N23575528_RTRIDST_0_USA-MORTGAGES-BESTINFO.XML 

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Happy Investing,

Kendall E. Matthews, CRMC
Phoenix, Arizona Investment Real Estate

P.s. Get my new e-book “101 Legit Tips To Boost Your Credit Score” Click Here to learn more.

P.s.s. Click here to receive my Free mini e-course for new and experience real estate investors. “7 Steps To Better Real Estate Investing.”

The Truth About Real Estate Fixer Uppers

 

How would you like to use fixer-uppers as a means of creating and enhancing equity in your investment opportunities? While it is possible to find properties under market and then resell them at a higher price, creating and enhancing equity makes potential properties even more profitable.

Fixer-uppers are a valuable component to any investor’s arsenal of profits. Most people think that fixer-
uppers are a process of finding distressed homes, adding new carpet and paint, and then selling for a profit. While this is true, it is also a very limiting view of an amazing process. Once you understand
what fixer-uppers are in their glory, there is so much more you can do.

A fixer-upper by definition is anything you do to a property to make it more valuable. You may ask, “What is the formula for a successful fixer-upper?” and “What are all the things that I can do to properties to make them more valuable?”

To answer the first question, the formula for a fixer-upper is very basic and simple. First, add the acquisition cost to the cost of fixing up the property. This gives you the fixed-up cost. Then, subtract the fixed-up cost from the future value to get your profit or equity position. The formula reads:

Future Value – Fixed-up Cost – Acquisition Cost = Profit or Equity.

The answer to the second question creates quite a list of opportunities. You can create value by:

Cosmetically improving the property
Adding bedrooms and bathrooms
Adding a flag

Zone changes or variances
Adding apartments to existing units
Adding parking or storage for income
Tear-outs and new builds
Condo conversions

Improving the floor plan

Finishing space such as attics or basements

Subdivisions

Planned unit developments

Changing the property’s income

Special use permits

Platting & entitling property

All of the things mentioned above can help you take an existing property and make it more valuable. You can make some of the changes with no physical labor at all! I would love to teach you how to change properties for a profit. Learn how to fix up your life by fixing up properties!

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Happy Investing,

Kendall E. Matthews, CRMC
Phoenix, Arizona Investment Real Estate

P.s. Get my new e-book “101 Legit Tips To Boost Your Credit Score” Click Here to learn more.

P.s.s. Click here to receive my Free mini e-course for new and experience real estate investors. “7 Steps To Better Real Estate Investing.”

Online Map Tool For On The Road

I’ve been doing a lot of traveling lately… so I’ve been dealing with all kinds of problems – big and small. In my experience, the BIG problems always consist of a pile of smaller problems. How to run a business while on the road is a GIANT problem! Sure, there are laptop computers which are theoretically supposed to solve a lot of problems… but theory always sounds better than it works!

For example, at home and at the office I am automatically connected to the Internet – a click of the mouse downloads my email and another click has me surfing. When I go on the road, however, it’s a different story! Getting a dial-in account is only one step. I need to remember to take along local access numbers… and then, of course, there is always the problem of making the physical connection with a phone line! So the process of traveling means that my staff and I always need to be thinking ahead, making sure that communication will be possible.

One of the biggest hassles of traveling involves finding your way around in a new place. How do you get from the airport to your hotel? How do you get from the hotel to the conference or meeting facility? I normally rent a car, but the maps that the car rental companies give you are almost guaranteed to get you lost!

So how do you prevent this? How do you make certain that you know how to get to where you need to go? Simple – online maps! I’m serious! Really! They actually do work and are a thousand times more accurate than the directions you’ll get from the desk clerk at the rental car company!

Let me give you an example of exactly how powerful online maps can be!

Let’s pretend that you are traveling in a foreign country, and that the majority of the people do not speak English. Hmmm… let’s use Norway as an example! Okay, so you start off in LA. You know how to get to LAX, so you have no problem there… but how do you get from the airport in Norway to your hotel?

In the past, you would have rented a car at the airport, praying that the desk clerk would be able to give you directions. Then you would have wasted valuable time, getting lost on the way to the hotel.

Now, however, you have a better option! Online maps are a great solution! Try the following….

1. Go to one of the “Electronic Map” sites out there. For this example, we’ll use Map Blast
2. Select “Drive” (I’ll explain the other options later.)
3. Enter the address of the Airport and select the country.
4. Enter the information for your hotel.
5. Click on “Get Directions”.
6. Breathe a sigh of relief and know that you have great, accurate directions from the airport to your hotel!

You’re probably thinking “It can’t be this simple… can it?” You bet it can! This service will give you step-by-step directions, easily getting you from point A to point B.

Although we did not actually get directions in Norway as the example described, we thought it might be fun to find directions from our current address in Blaine, WA to our old address in Ogdensburg, NY. When we put the information into Map Quest, we expected to get a totally confusing and bogus response. Instead, we got back directions that would get anyone (even a novice) right to the front door of our old building!

Pretty great, isn’t it?! Imagine how many less headaches you will have traveling, knowing that you are not going to get lost. Of course, we can’t make any promises about your luggage….

Now you’re probably saying to yourself, “Sounds good Corey, but how exactly can I improve my business with this?”

Good question!

Imagine this: I have a friend who runs an employment agency. Her problem? Many of the people whom she sends out on job interviews arrive late for their appointments because they get lost en route. Not only does this upset her clients, it makes her and her business look bad.

Now imagine what would happen if she created and faxed maps to each of her clients, giving them detailed, accurate directions from their homes straight to the location of the interview. Wow!! Imagine how much happier her clients would be! Imagine how great this would make her business look!

But it doesn’t end there!

Now let’s imagine that you run your own legal firm and that you are located in the corner of a rather large town… very out of the way! Instead of crossing your fingers and hoping that your clients will arrive… or trying to give them directions yourself over the phone, you can fax them a step by step map! Not only will you save them time, your clients will arrive on-time for appointments, and your company will look prepared and professional!

When I discovered the power of online maps, I knew that I had to share this information with you. I’m really excited about the incredible potential of this service! Online maps can instantly make your life easier, both at home and on the road!

This is why I am constantly excited about the new possibilities and services to be found on the Internet! I think this is a great example of technology being used for something that is totally useful and practical. What a cool service!

So try it out – I know you’ll love it!

MapBlast is great. In addition to providing driving instructions and maps, they also allow you to email maps or even download them into your PalmPilot or WinCE device. You can also print the maps in color, gray scale, or as a line map.

I was able to get directions for US and Canadian cities, but when I tried Sydney, Australia, I could not find detailed information. Of course, where there’s a will, there’s a way!

Yahoo Maps

The problem is that Yahoo Maps works only in the US right now. At their site, they have indicated that their service will be expanding to other countries soon.

I also looked up a few other services that might help if you are traveling in other countries….

Concierge.com bills itself as “The Travel Supersite” and frankly, after using it, I would agree. I found all the maps I needed for Australia … and Sydney! Although they don’t have a driving direction service, you CAN find street addresses for the US, Canada, and the city of London … and maps for just about anywhere else you can think of.

A friend of mine is talking about visiting Marbella, Spain. From his description, I knew it was near Gibraltar … with the zoom in feature of the interactive maps, I was able to find Marbella right down to the street level. Cool!

You never have to be lost again! You never have to worry about not having a map … or about giving people directions to your place! You can simply access maps and directions from one of these sites … and you’re set! This is Internet technology at its best – saving time, money , and your sanity!

ABOUT THE AUTHOR: Internet marketing expert Derek Gehl specializes in teaching real people how to successfully start, build, and grow their own profitable online businesses on small budgets. To get instant access to the step-by-step strategies, tools, and resources he’s used to grow just $25 into over $60 Million in online sales, visit: Online Marketing Tips 

Click Here to Send This Page to a Friend

Happy Investing,

Kendall E. Matthews, CRMC
Phoenix, Arizona Investment Real Estate

P.s. Get my new e-book “101 Legit Tips To Boost Your Credit Score” Click Here to learn more.

P.s.s. Click here to receive my Free mini e-course for new and experience real estate investors. “7 Steps To Better Real Estate Investing.”

Real Estate News Articles

Nation’s Building News, Week of August 13 – Age-Qualified Adult Housing Has Some Growing Up to Do
The aging of the baby boomers and the rising share of the U.S. population comprised of people who are 55 or older suggest room for significant growth in age-qualified active adult housing, but so far that segment of the marketplace hasn’t reached its potential, according to a special study by NAHB housing analysts Paul Emrath and Helen Fei Liu.
http://www.nbnnews.com/NBN/issues/2007-08-13/Front+Page/index.html

Seeking Alpha, August 12 – Home Price Indexes Showing No Signs of Recovery
S&P’s recent home price data indicates the continuation of bleak conditions in the real estate market. With May 2007 data available, the S&P Case-Shiller Home Price Indexes marked their 18th consecutive decline in annual growth rate; the trend has persisted since December 2005.
http://seekingalpha.com/article/44222?source=i_email&u=36629

San Fransisco Chronicle, August 12 – Storm Clouds for Builders
For California’s home builders, it has gone from a perfect storm to a pathetic one.
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/08/12/RET6R9MD4.DTL

The Arizona Republic, August 9 – Foreclosure notices in Gilbert take 240% leap
Foreclosure notices in Gilbert and Ahwatukee Foothills jumped 240 percent in the first six months compared with the same period a year earlier, as more homeowners struggle to afford the higher-priced homes in these communities.
http://www.azcentral.com/news/articles/0809gr-foreclose0809.html

East Valley Tribune, August 8 – Housing dip triggers Agritopia price cuts
As Gilbert’s Agritopia community nears buildout on its first phase, even the niche subdivision is feeling the recent housing-market downturn.
http://www.eastvalleytribune.com/story/94707

Fox11AZ.com, August 7 – Some outer suburbs in metro Phoenix hit hard by foreclosures
Most of the foreclosures in metropolitan Phoenix are in the farthest flung neighborhoods where buyers had gone to get the most house for their buck.
http://www.fox11az.com/news/topstories/stories/kmsb-20070806-apjc-hithardby.9e0d45e.html

East Valley Tribune, August 6 – Queen Creek, Pinal hit hard by foreclosures
Most of the foreclosures in the Valley are in the farthest flung neighborhoods where buyers had gone to get the most house for their buck.
http://www.eastvalleytribune.com/story/94584

Arizona Daily Star, August 6 – Luxury home sales healthy despite real estate downturn
Much of Tucson’s residential real estate market might be in the doldrums —but the view from the top looks just fine, according to local industry observers.
http://www.azstarnet.com/business/195182 Seeking Alpha, August 1 – A Look At U.S. Home Price Performance in 20 Markets
The S&P/Case-Shiller home price indices have quickly become a go-to guide for residential real estate valuations across the country. We’ve been covering the indices over the past few months, and below we have updated our data to include the most recent numbers (May ‘07) released today.
http://usmarket.seekingalpha.com/article/43181The Arizona Republic, July 31 – Ellman buys 1,860 acres in Goodyear
Valley developer Steve Ellman bought 1,860 acres in Goodyear, picking up a multimillion-debt for infrastructure that the seller could not pay.
http://www.azcentral.com/business/articles/0731swv-ellman0731-ONL.html

ForeclosureS.com July 2007 Report: Houses Lost up 27% Over June
Mortgage defaults and foreclosures continue at an alarming rate nationwide, swallowing up home ownership dreams for tens of thousands more Americans every month.
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070806005310&newsLang=en

Seeking Alpha, July 31 – U.S. Foreclosure Filings Shoot Up – RealtyTrac
U.S. foreclosure filings surged 58% in H1 2007, with California skyrocketing 170% and Florida up 77%, according to foreclosure data company RealtyTrac Inc.
http://seekingalpha.com/article/42905?source=i_email&u=36629

The Arizona Republic, July 31 – Foreclosures soar in Arizona
The fallout from the country’s real-estate slump continues to reverberate in Arizona and across the nation as more homeowners and lenders turn to foreclosure to solve their financial woes.
http://www.azcentral.com/arizonarepublic/business/articles/0731biz-foreclosures0731.html 

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Happy Investing,

Kendall E. Matthews, CRMC
Phoenix, Arizona Investment Real Estate

P.s. Get my new e-book “101 Legit Tips To Boost Your Credit Score” Click Here to learn more.

P.s.s. Click here to receive my Free mini e-course for new and experience real estate investors. “7 Steps To Better Real Estate Investing.”

The Proven Formula For Creating & Enhancing Real Estate Equity

I would like to tell you about another valuable step to investing in real estate: Creating and Enhancing Equity. During this stage, I buy the property and do things to make it more valuable. Then, I can sell it for a profit or refinance and keep it with an equity position and positive cash flow.

There are actually three different techniques to create and enhance equity: flips, flixers, or fixer-uppers. Today I will focus on flips. There are two premises to flipping a property that make this a valuable program.

The first premise is to buy the property for less than its appraised market value. I can teach you how to find properties at a discount below their market value. Three situations enable you to buy below market: distressed sellers, distressed properties, and cash.

First, find distressed sellers. Sellers become distressed in various situations. Divorce, property management issues, bankruptcy, foreclosure, death, health and job loss can all result in discounted sales prices. Finding distressed sellers is an extremely productive art that I would like to teach you.

Second, find distressed properties. Distressed properties exhibit any or all of the following characteristics: poor landscaping, bad structure conditions, holes in the house, broken windows, piled up newspapers, trash and debris in the yard, notice stickers on the windows and doors, boarded up windows, broken-down vehicles, blinds always open or shut, missing parts or holes in the roof and appliances in the yard. I can show you how to turn these distressed properties into real investments!

Third, use cash. Cash allows you to have a quick closing and more earnest money. Cash can also help you avoid appraisals, remove financing contingencies and make the seller feel very secure. Cash purchases have allowed me to have some of the biggest discounted sales prices in my career. Again, call me and I will show you how to become a cash buyer!

The second premise of Creating and Enhancing Equity is to sell the property for much more than you purchased it. If you put an assigns clause in your purchase agreement, you can even flip the property before you own it! I always recommend that you look for properties that are discounted at least 20% below the appraised market value. This price allows you to sell the property for a handsome profit or keep the property with an excellent equity position.

Finding discounted properties gives you many options. Call me soon to set up an appointment to look at properties that you can buy under market. Then, leam how to sell the property for a profit or refinance for an equity position. The possibilities are endless!

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Happy Investing,

Kendall E. Matthews, CRMC
Phoenix, Arizona Investment Real Estate

P.s. Get my new e-book “101 Legit Tips To Boost Your Credit Score” Click Here to learn more.

P.s.s. Click here to receive my Free mini e-course for new and experience real estate investors. “7 Steps To Better Real Estate Investing.”

Internet Information

A short while ago I was giving a presentation in Las Vegas. One night, after several hectic days of seminars, dinners and shows, a friend of mine and I shared a couple of cokes and a bag of chips while talking about one of the shows we had seen the night before.

As we both got another coke from the in-suite refrigerator, our conversation turned to upcoming applications of information technology. The hotel suite that I was staying in was already equipped with a refrigerator and snack bar that “knew” when I removed an item such as a coke or a bag of pretzels. The items were automatically added to my bill … and the housekeeping staff was automatically informed, so that they would know what items had to be replaced! Cool!

The refrigerator and snack bar are connected to the hotel’s “Intranet” (note, this is not the same as “Internet”) … an internally operated computer network. Each can of pop, each liquor bottle, each chocolate bar, each snack item has an electronic sensor under it. The electronic sensor is programmed so that it knows that a 5-oz bag of potato chips is sitting on it. If you lift an item off the sensor, it is automatically billed to your account. This way, the hotel staff knows exactly what they need to replace before they even clean your room after you check out! You are informed of this when you are given the keys to your room, so that there are no misunderstandings later.

We both thought this was a neat use of available technology … and we got to talking about what other uses the same technology could be put to. Just think about the kinds of data and information that a “smart room” could be programmed to collect! Sensors could be attached to doors, light switches, phones and TV sets … so that hotel management could figure out how much time people spent in their rooms … how much time they spent watching TV … and how much time they spent talking on the phone, and when.

Why would they want this information? What would they do with it? Well, in Las Vegas, hotels are often connected to casinos … they don’t WANT you in your room. They want you on the gambling floors, or attending their concerts. So the hotels could experiment with a number of different models – all aimed at keeping you out of your room and in the casinos. They could lower the room rates … and then charge you to watch TV, or they could entice you down to the gambling floors with free gambling chips or vending machine tokens.

Within a few days, the hotel could then compile statistics to see what worked and what didn’t. In addition to their information on room usage, they would have backup data in the form of their gambling revenues … which would confirm if their strategies had worked or not.

Going a step further … what if the hotels gave you a door card (card key) that acted like a tracking device? They would be able to track your movement around the hotel … and even off the premises. They would be able to tell what you were doing and when, and figure out where you were spending your money. That kind of information would be worth a fortune!

Now, don’t get me wrong! I’m not saying there is some kind of conspiracy theory out there … nor am I saying this IS going to happen. Many people will say this is a gross invasion of their privacy … and true to form, many others simply won’t care. What I DO want you to be aware of is that the technology for doing this kind of information gathering is already here! And in the next two to three years, it will be getting even more sophisticated!

Knowledge of what is coming in the near future could have positive influences on the way you develop your business … and your career. Job analysts say that the people who know how to design, implement, and use this kind of information and technology will be rare (and therefore desirable) commodities in the future! By knowing where technology is heading, you will be able to position yourself and/or your company for a bright and financially lucerative future!

Here’s another example of what is happening right now. One of the major soft drink manufacturers is experimenting with a temperature based pop machine. It adjusts prices of the pop based on the temperature outside. The hotter it is … the higher the price! Basically this is “demand” based marketing. Right now the pop machines are stand alone machines … but in the future, they could be connected to the Internet. Someone at the manufacturer’s headquarters could literally adjust prices based on things like special events, temperature, and other such factors – driving the price of pop up or down accordingly!

Additionally, the vending machine companies could do all their trouble shooting over the Internet. Say the change maker malfunctions … the repair department would immediately be notified and they could send a technician out immediately… instead of waiting until people have kicked the machine to death! Ditto with refilling the pop machine. Right now, the pop machine guy comes by on a regular schedule. He has to open the machine and check it out. Sometimes it is still full, and other times it has stood empty for days! (Lost revenue!) But with an Internet connection, the folks back at pop central would know exactly how many cans of pop were in the machine. Instead of sending a guy out on a regular route … they could just send him out to the machines that need refilling. Talk about a super efficient use of human resources!

This market driven model of pricing, service and repairs is not too far off in the future! In fact, right now in Norway, the Nokia phone people are testing various add-on features to their cell phones. In parts of the country, the beta testers can walk up to a pop machine and dial up their account code for a “pop” … the pop comes out and the price is added to their phone bill.

Unless you were born on January 1st, 2000 you may have noticed how fast the world is changing. The only way to cope with the change is to embrace it! Accept the fact that change is going to be a permanent part of our lives … and use information and predictions about future technology as a guide to building your business. Predictions for changes on the Internet are plentiful! Here are some of the things you will be seeing in the not so distant future.

• You will be able to surf the web from your airplane seat in the next year or so. Telecommunications is exploding and soon we will sit in our airplane seat, surfing the web at a cost that will be affordable to many … just as sky phones are an affordable and justifiable expense to some people. Surfing from your airplane seat will start off as a high cost luxury … but you can be sure that the cost will steadily decrease as the demand for the service increases.
• At this very moment Internet pioneer Leonard Kleinrock, a scientist at UCLA and owner of a company called “Nomadix Inc.” is developing “smart space” technology. When you walk into a room, it will know you are there … and you will be able to “talk” to it and get the information you want. Sound like Star Trek? You betcha! Communication devices called MEMS (micro electromechanical systems) will be embedded into desks, rooms and even shoes! The device will be able to recognize different people and deliver up their preferences. Kleinrock predicts that Internet technology will be invisible, will be capable of following you around … it will be available anywhere! Kleinrock also predicts that we may start using some aspect of this technology within three to four years.
• Within two to three years we will start seeing high definition screens on cell phones that will allow us to view Internet content. Because navigating the web using cell phone keys is highly impractical, users will be able to surf the web using voice activated technology.
• Major car companies have embraced the Internet wholeheartedly! In the near future we will be seeing totally integrated communication systems in new cars. Internet access, voicemail, fax machines, and email … you won’t have to wait long!
• Within months, some of the first Internet-enabled vehicles will be available! GM is gearing up to equip vehicles with “OnStar”, a satellite service that will act as a mobile Internet service provider. They are taking this very seriously and are predicting over a million subscribers to the service within the next year!
• GM is already using the Internet to involve its customers in the designing of new vehicles. Within five to ten years you may be able to order up a vehicle custom designed to your specifications!
• And more Star Trek devices will appear every day. Right now we have Global Positioning devices installed in boats, planes and automobiles … well, in the near future you can join Kirk, Picard and Janeway with your very own wireless badge that connects you to a satellite GPS and keeps track of your location. Now my staff will not only know WHEN I’m goofing off, but where I’m doing the goofing!

The development and appearance of these amazing new Internet technologies and products will only accelerate in the years to come. By knowing what the future will bring, you can position yourself and be ready to profit when it does “become public”. Get ready for the new century! 

ABOUT THE AUTHOR: Internet marketing expert Derek Gehl specializes in teaching real people how to successfully start, build, and grow their own profitable online businesses on small budgets. To get instant access to the step-by-step strategies, tools, and resources he’s used to grow just $25 into over $60 Million in online sales, visit: Online Marketing Tips 

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Happy Investing,

Kendall E. Matthews, CRMC
Phoenix, Arizona Investment Real Estate

P.s. Get my new e-book “101 Legit Tips To Boost Your Credit Score” Click Here to learn more.

P.s.s. Click here to receive my Free mini e-course for new and experience real estate investors. “7 Steps To Better Real Estate Investing.”

The Opportunity: “Pontiac”

 

This is a deal where we are changing the use of a large single family home to an income property to house up to 11 college students.   We are adding 3 bedrooms and 1 bath to make this a 6 bed/5 bath property.   All leases are separate, signed by student and co-signed by parents.     First, last and deposits are already paid with signed one year lease agreements (yes, a full year lease for college students).  This cash flows nearly $1,300 a month NOI.    All utilities are paid by tenants except HD cable and high-speed Internet.    This results in a positive NOI with a 6% CAP rate valuation of $1,265,663 after refinance.

Information provided by our friends at Higher Investment Strategies, LLC. Only Qualified Principles may contact us if seriously interested in becoming involved in our real estate capital investment opportunities and developments.  To schedule a private and confidential phone consultation call 1.888.462.3771 ext. 543.

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Happy Investing, Kendall E. Matthews, CRMC, future Certified Commerical Investment Member
Phoenix, Arizona Investment Real Estate P.s. Get my new e-book “101 Legit Tips To Boost Your Credit Score” Click Here to learn more.P.s.s. Click here to receive my Free mini e-course for new and experience real estate investors. “7 Steps To Better Real Estate Investing.”

Why It Now Makes Sense To Look At Real Estate Potential Uses

I would like to talk to you about a topic that is unique and exciting to real estate investing in your area. Once I purchase a property, I immediately put the property up for sale again. I then market its potential and future value. This method distinguishes my program from other real estate investment programs.

When I purchase a home on a property that has development potential, I list the property as a development in the works. I advertise the property for what it can be, not for what it is.

If I purchase an apartment complex that I want to convert to condominiums, I would list the property as condo-conversion for someone to finish. My price would reflect the value of the finished product. I would also offer handsome discounts for anyone who wanted to do the work.

For example, an associate of mine recently purchased a 4-plex for $400,000. We decided to begin a condo-conversion with the city. We hired an attorney to draft Covenants and Restrictions for the property and an engineer to draw a site plan for the new Homeowner’s Association plat. Our work cost us under $10,000. We put the property up for sale for $520,000 as a condo-conversion in progress and got three full-price offers the first weekend!

The key is realizing the potential that the property has and understanding how to make the changes to harness that potential. Most people are accustomed to seeing property for what it is – how it presently exists only. Seeing potential is tough, but not impossible to leam. Call me now and I will show you how to see potential in your investment deals.

Once the potential or “highest and best use” is uncovered, it can then be marketed for a profit. If it does not immediately sell, I begin the long-term goal to change the property to the “highest and best use.”

These two options can literally create a short-term profit or a long-term asset on every deal. The results are a steady flow of profits in the short term and an increasing net worth in the long-term.

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Happy Investing,

Kendall E. Matthews, CRMC
Phoenix, Arizona Investment Real Estate

P.s. Get my new e-book “101 Legit Tips To Boost Your Credit Score” Click Here to learn more.

P.s.s. Click here to receive my Free mini e-course for new and experience real estate investors. “7 Steps To Better Real Estate Investing.”