Rolling With the Opportunities
Issue #2132
- WEALTHY: Break free of real estate bubble markets for 6-figure profits (Justin Ford)
- HEALTHY: Winning the biggest battle of the bulge (Craig Ballantyne)
- WISE: Heraclitus on change
ALSO IN THIS ISSUE:
- A mistake I make all the time (Michael Masterson)
- Become part of your prospect’s "in group" (Bob Bly)
- It’s Fun to Know… about doping at the Tour de France
- Add "preternatural" to your vocabulary
An Exciting Opportunity To Take Advantage Of A Trillion-Dollar Industry
Of the many paths to wealth, there is only one that Michael Masterson most consistently recommends to his closest friends and relatives.
It has all the advantages you want if you’re starting from scratch: simplicity, an extremely low entry cost and a huge and growing potential for wealth-building.
Here’s what I am talking about…
- Patrick Coffey
"Everything flows and nothing abides, everything gives way and nothing stays fixed."
Heraclitus
Rolling With the Opportunities: How to Bank $111,237 While Others Cry "Bear Market"
By Justin Ford
Fourteen months ago, I bought a four-plex for $265,000. Yesterday, I sold it for a $111,237 profit.
Why do I tell you this? Because I live in one of the worst real estate markets in the country.
I’m in Southeast Florida. That’s an hour north of Miami, 20 minutes south of Palm Beach, and about as far away from economic reality as you can get in the real estate market.
Up until the hurricanes of 2005, everybody was a speculator. Flipping homes replaced stocks as the hot topic at dinner parties. Real estate licenses became more common than drivers’ licenses. If you said "cash flow" or "fixed-rate mortgage," it was like you were speaking Elizabethan English - using quaint terms that no longer made any sense.
Today, it’s a different story.
Property prices have fallen, while insurance, interest rates, and taxes have gone up. Ask people down here how they feel about real estate, and they’ll look at you as if they just ate bad fish.
And yet I was lucky enough to bank another six-figure profit during the worst period in many years for real estate. Plus, I now have another four-unit property on the market, bought last year, that should also bring in about a $100,000 profit.
What’s the "secret"? Whether you’re in a bull or a bear market, you have to buy right.
A Recipe for Success in Any Market
First, don’t get caught up in the hype. Learn how to find motivated sellers and buy at prices under market value. And make sure you have the right financing. Whether you’re using private money or bank financing, fixed rate is usually better than floating. Also - if you want to reduce risk and create passive income at the same time - only buy undervalued properties that cash flow.
Then, realize you don’t have to be locked into a bubble market. No matter where you live, there are markets around the country that are in cycles very different than yours. These are areas that offer great value and where jobs, population, and property prices are steadily rising… yet the prices still make fundamental sense.
It’s precisely in this kind of market where I did the deals I just mentioned. These happen to be in the western U.S., but there are many great value markets. In the past year, I’ve also done very well investing in cash-flow properties in value cities in the mid-Atlantic states… and even in value areas of my own state, a few hours from where I live.
In fact, the very existence of the bubble markets is fueling the growth in many of the value markets, as hundreds of thousands of people flee crowded and expensive areas and move to calmer, greener - yet often very sophisticated - areas.
These are places where you can get two or three times the property you’d find in a bubble market for one-half or one-third the price. And you’ll pay a lot less in taxes, insurance, and general cost of living at the same time.
It’s an undeniable trend that will persist for years as millions of boomers move into retirement age and as many young people who can now tele-commute head to more affordable pastures.
So how do you do it? How do you invest from afar?
I cover this in my "Secret Sunbelt Cities Report," and I’ll be going over it in detail at our Real Estate Wealth Builders Summit November 16-18 in Miami. But here’s the gist of it…
Look for Value, Growth, Economic Stability, and Quality of Life
Focus on areas that have good characteristics for value, growth, economic stability, and quality of life.
For value, look for communities where the median home sells at a low or reasonable price relative to (1) the median household income and (2) median rents for that type of house. For example, a community where the median home sells for 20 or 30 times cash flow won’t offer many cash-flow opportunities and is likely near the peak of its cycle and ready for a correction.
For growth, look for communities with above-average job and population growth. Immigration from other parts of the country is usually a strong plus when coupled with good value characteristics.
For stability, look for a diversified economy - not just a one-trick pony dependent on the oil industry or movie industry or automobiles. Towns driven by single industries are very vulnerable to downturns in that business.
For quality of life, look for lively "second cities," especially towns with universities. A university is not only a good economic anchor but also tends to lead to a wide offering of cultural activities. Also look for towns that have walkable downtowns… with festivals, live shows, sidewalk restaurants, etc. The "new urbanism" tends to attract retiring boomers as well as young families looking for an affordable but interesting place to live.
Finally, look for cities that stack up well in all these areas. And then, if you want to turn very good profits into grand-slam profits, learn how to execute value plays in the best value-and-growth markets.
For instance, if a property is vacant and in need of repair, you may be able to buy it very cheaply and sell it much higher if you know how to contract for the repairs and leasing. Similarly, if a property is rented out at rates far below market, that is often a great opportunity.
That’s precisely what happened with the four-plex I just sold.
I found a local partner in a value community who was very sharp. She found a four-plex in a great area that was rented out at lease rates 30 percent below market. It also had some foundation problems that put off many investors, but the problems were very fixable.
The property was listed at $280,000, while rehabbed properties in the area were going for the mid 300s. We bought at $265,000 after concessions (including having the seller pay for foundation repairs). We then put about $18,000 into it and raised the rents for the two-bedroom/one-bath apartments from an average of $550 to $750. Today, 14 months later, they’re at $800… and we just sold the property for $394,000.
The moral of the story is that value - and opportunity - flow from one market to another. If you know how to invest with the flow, you can consistently put yourself in the path of substantial profits.
[Ed. Note: Justin Ford will share his value-investment techniques and his five favorite U.S. value cities at the 2007 Real Estate Wealth Builders Summit to be held at the 5-star Doral Golf Club and Spa Resort November 16-18. Justin will be joined by "Apartment House King" Dave Lindahl, private money expert Alan Cowgill, commercial property mogul Toby Unwin, "Queen of Short Sales" Dwan-Bent Twyford, and five other top investors. To secure a 100%-satisfaction-guaranteed spot at an incredible savings, click here.]
They’re Making Money in Real Estate Right Now… And You Can, Too!
The country’s top real estate investors don’t seem to have noticed all the recent news about the housing market. That’s because they’re busy doing 6- and 7-figure deals.
I’m getting together with nine of the best later this year, where they’ll reveal their secrets for making a killing in today’s markets. This exclusive, closed-door meeting is still a few months away, but you can get a sneak preview on August 29th absolutely free.
Click here to learn how you can get a first look at the profitable strategies they’ll be revealing.
Sincerely,
Justin Ford
Moneymaking Deals That Should Be Avoided
Multi-partner deals can be great. Friends can be employed. Colleagues can be connected. Additional income can appear from the most unlikely places.
And if you’re lucky, all of those things may happen. But when there is a conflict at the core of the business relationship, it’s only a matter of time until things start to unravel.
Partner A doesn’t like Partner B’s idea for a new advertising campaign. He thinks it will get them both into trouble. Partner C doesn’t think it’s fair that A should get compensated for writing the new promotion, since it was clearly based on an idea he gave to B. But B credits it to an idea he got over coffee with someone new, who turns out to be Partner D (since B has cut him in for use of his good idea).
It’s nerve-wracking. It’s frustrating. And, in the long run, it’s usually counterproductive.
Resisting such conflicts requires the ability to say "no" when offered the opportunity to be a partner in one of these complex deals. ("That sounds great, Jeff, but I’m already involved in a similar business with Karen.") It feels as if you are giving up something valuable when you do it - and perhaps you are - but you won’t have to suffer through the complications later on.
When all is said and done, you are usually better off sticking with one thing at a time. Work it hard. Let it change and evolve. But don’t let it get too messy.
Does this mean that you should never get involved in complicated deals? If I followed that rule, my life would definitely be more serene. But it might not be as rich. (Not money-rich, mind you.)
Maybe the lesson is this: Ultimately, we are all tethered to our DNA. Our strengths and weaknesses are intricately bound to the same instinctive thread. Mine inclines me toward complications, so my life keeps getting complicated. For you, it may be different.
So know yourself. Understand and appreciate your fundamental nature. Recognize the advantages and dangers of your natural disposition, and use discipline to mediate between them.
[Ed. Note: Michael Masterson and his team of business-building and marketing experts will be revealing their strategies for getting a brand-new business off the ground… and making an existing business grow like crazy. Reserve your spot at this fall’s Info Marketing Bootcamp - Making a Fast Fortune on the "Other Side" of the Internet - today and save $200. But hurry. Our $200 Early Bird Discount ends this Friday at 5:00 p.m.]
Are You Like Me?
By Bob Bly.
One of the easiest - and most effective - copywriting techniques for bonding with your reader is to show that you are like him.
For instance, you can simply begin the sales letter: "Are you like me?" And then list the things you believe you have in common. Another method: Have the person signing the letter be in the same group as the person reading the letter. For example, when writing to doctors, have an M.D. sign the letter.
Why does this work?
Because people like, feel comfortable with, and respond to people who are like them. Conversely, they don’t like, and want to avoid dealing with, people they think are fundamentally different.
You know this to be true. Conservatives hate liberals… poor people hate rich people… the elderly dislike the young… and vice versa.
Proof: According to a CBS News poll cited in The Week, 43 percent of Americans ages 18 to 44 were rooting for Barry Bonds to break Hank Aaron’s career home run record this season. But of adults 45 or older, only 27 percent wanted Bonds to succeed. These older fans were rooting for the older guy precisely because they, too, are the "older guy."
Is there any other way to see it?
Have you ever had success in marketing by doing anything other than empathizing with the prospect - and showing that you understand him, are on his side, and are even like him? I’ve seen it done. But it’s pretty rare.
[Ed. Note: Master copywriter and best-selling author Bob Bly is the editor of ETR’s ETR’s Direct Marketing Masters Edition. a program to help you start your own successful direct-mail business. Sign up for Bob’s free monthly e-zine, The Direct Response Letter, and get more than $100 in free bonuses.]
Extreme Weight Loss
While most people struggle to lose those last 10 pounds, some folks are fighting a bigger battle against the bulge. Nearly 119 million Americans are overweight or obese (that’s 65 percent of the entire country!), and many of them need to lose 100 pounds or more.
But can such a drastic weight loss be accomplished without intestinal bypass surgery? The answer, according to scientists from the University of Kentucky, is yes.
One hundred and eighteen people were able to lose over 100 pounds during a 9-year period at the university’s clinic. Not surprisingly, the program the subjects followed was intensive and comprehensive, employing diets, classes, and training in recordkeeping and physical activity. Consistent weekly assessments also helped keep the patients on track.
And huge benefits were attributed to the weight loss. The researchers reported that medications were discontinued in 66 percent of the patients (with an average savings of $100 per month), and they significantly decreased LDL cholesterol (-20 percent), triacylglycerol (-36 percent), blood sugar (-17 percent), and blood pressure (systolic -13 percent and diastolic -15 percent).
Though the patients gained back a few pounds after five years of achieving peak weight loss, the bottom line is that an intense, multi-discipline weight-loss program can work with severely obese men and women.
(Source: American Journal of Clinical Nutrition)
[Ed. Note: Craig Ballantyne, an expert consultant for Men’s Health magazine and the creator of Turbulence Training for Fat Loss, is a contributing writer for ETR’s brand-new weekly natural health e-letter. Sign up today for practical strategies and real-world scientific discoveries that can help you melt off the pounds, pack on muscle, and eliminate the underlying causes of disease.]
It’s Fun to Know: Doping at the Tour de France
At this year’s Tour de France, as has been common in recent years, doping allegations and scandal once again took center stage. But you may be surprised to know that up to the mid-1960s, performance-enhancing drug use was commonplace and openly admitted to by riders and overlooked by organizers. It was not unusual for riders to drink alcohol, as well as use amphetamines, cocaine, opiates, and other substances before, after, and during the race to combat pain and fatigue.
(Source: The New Yorker)
Turn A Single $100 Investment Into A $2,000-A-Week Profit Machine
In the next seven days, 4,589 people will leave their jobs, never go back… and have all the money they will ever need.
I would tell you that these people are “very lucky,” but the fact of the matter is that there is no luck involved.
It’s happening everywhere. Ordinary people - including people who never finished school - starting their own businesses…and making in the neighborhood of $40,000… $60,000… even $100,000 or more a year.
Even though all these people are “ordinary” in some ways, one thing is certainly “out of the ordinary” about them:
Many used the same secret to start a business on less than $100. You can do it, too. Here’s how.
- Patrick Coffey
Word to the Wise: Preternatural
Something that’s "preternatural" (pree-tur-NACH-ur-ul) - from the Latin for "beyond nature" - is extraordinary, surpassing the usual or normal.
Example (as used by Gerald Jonas in The New York Times): "Advances in computer technology and bioengineering have made it possible to create human beings of preternatural strength and agility."
[Ed. Note: Become a more persuasive writer and speaker … build your self-confidence and intellect … increase your attractiveness to others … just by spending 10 VERY enjoyable minutes a day with ETR’s new Words to the Wise CD Library.]
Michael Masterson
Copyright ETR, LLC, 2007