Real Estate Investors of North L.A. County

Along with an informative presentation by our friends at Posted Properties, you will have the opportunity to bid on some excellent real estate study materials – for cheap!

See the following entry for more details about the Posted Properties presentation.

As for the silent auction, have a look a some of the titles up for bid:
- Lease Options – Ron LeGrand
- Assisted Living – Michael Warren
- Instant Offer System – P. Conti & D. Finkel
- and many more!

So bring your checkbook, or look
under your couch cushions for some loose change!
These wonderful books and classes will be sold cheap!

See the following post (below) for more details.

See you there!

Rene & Patty

This month, you will be introduced to a simple method of
buying investment properties at the Trustee Auctions held by
Los Angeles County. Many investors consider this the
absolute best way to acquire properties at deeply discounted
prices.

The speakers will be from Posted Properties – a
company that makes investing in properties at the Trustee
Auctions much more accessible to investors of all experience
levels, even beginning investors.

For those unfamiliar with investing at the trustee sales,
you should know the following:
- Up to now, this form of investing was recommended for
the experienced investor only!
- The reason being, it was so easy to make a mistake that
would cost you a bundle.
o A friend of mine went to an auction and thought
he had found a killer deal whereby he was buying a
house worth $150,000 for a bid of $15,000.
o He won the bid and was elated at his good fortune.
o Come to find out, his winning bid was for a note in
second position. Congratulations, you just bought a
headache, not a house. A headache that wasn’t worth what
you paid for it.
- It has always been rumored that there are
“regulars” at these auctions who control the bidding so new
players would be at a disadvantage. (Perhaps our speakers
can shed some light on this.)
o This made it difficult to win the bid on a real deal
for an inexperienced investor.
o With this limitation, how does an inexperienced
investor gain experience so they too can get in on the
good deals?
- Then there’s the issue of having to have cash for the
full purchase price before you can bid.
We all know this is an “All Cash” method of buying real
estate. Yes, there are deals to be had, but come with a
suitcase full of money.
o Posted Properties has solutions for this too.
- Inspection of the properties that actually make it to auction.
Two issues here really:
o How to know which properties will actually make it to
the auction, and:
o Physically inspecting the property to
get a feel of its condition and repair estimate.
o Have you heard about the guy who bought a house at
auction that he saw a bunch of good looking photos, ran
comps and felt it was a good buy, only to find out that
last week the house had burned down to the ground. Ouch!
• Sorry, all sales are final! Remember, you paid
cash for your investment!
o Did you know that a vast majority of the properties
that are on the list to be auctioned don’t make it to an
auction as scheduled? Most actually get postponed or
otherwise removed from being auctioned.
• How does one avoid wasting hours and hours (and gas)
driving around and seeing a bunch of properties that don’t
ever get auctioned? Our speaker will teach us about this
too.

The main point here is that while investing at the auctions
can bring excellent opportunities, one must be able to deal
with some of the issues associated with these deals.

Be sure to bring a pen and note pad to this meeting. You’ll
want to take a bunch of notes.

Mark your calendar! Meetings are on the 2nd Tuesday of every
month. Next meeting is: March 13th, at 6:30 p.m.

Rancho Village – Activities Room
39630 Fairway Drive
Palmdale, CA 93551
- 2 blocks east of the 14 Freeway at the
corner of Rancho Vista Boulevard (aka Avenue P)

Rene & Patty
www.REINLAC.net
661-456-0787
Google Map Link: http://bit.ly/REINLAC
P.S. If you’re thinking about going to the meeting, please
sign up at Our MeetUp.com Page and click the “RSVP” Button.

If you are to call yourself a real estate investor, you have
to feel confident in your ability to buy a deal. What if
someone you know brings you a deal that looks to be very
profitable? Would you be able to buy it? (Hint: If you’re
counting on a bank loan, the answer is probably “No”.) We
all know that banks aren’t making it easy to get a loan even
if you’re going to live in the property, have excellent
credit scores and have 25% of the purchase price in your
pocket! That’s just the way it is in today’s lending
environment.

Owner Financing – Make Bank Loans Unnecessary

The next meeting of REINLAC will take you deeper into the
skills of buying properties utilizing Owner Financing
techniques.

In the January meeting, we introduced the topic of Owner
Financing as a way to buy real estate. Banks are making it
very hard to borrow money, even for the most qualified
borrowers. We have solutions.

The February meeting will feature more in-depth instruction
on utilizing these techniques. Specifically, we will go into
the two easiest and most versatile – the Land Contract and
the Option.  So, even if you missed last months meeting,
you’re not too late to take advantage of these strategies

These alternative methods can be done with:
- Little or no money down
- Bad credit scores
- No qualifying on a loan
- Very little time. No waiting around for the bank to fund!

You will learn:
- What kind of deal would be a candidate for
a Land Contract? An Option?
- Where does one get the forms?
- Are there any pitfalls to these techniques?
o The “Sears Syndrome”
o The “Savvy Superior”

We’ll also spend a little time on how to find deals to apply
these principals.

We meet on the 2nd Tuesday of every month at 6:30 pm. Yes,
even on Valentines Day. (We will be bringing in some special
Valentines Day Goodies for everybody to enjoy.) The meeting
place is:

Rancho Village – Activities Room 39630 Fairway Drive
Palmdale, CA 93551 http://bit.ly/REINLAC  < Google Map Link
- 2 blocks east of the 14 Freeway at the corner of Rancho
Vista Boulevard (aka Avenue P)

Rene & Patty
www.REINLAC.net
661-456-0787
P.S. If you’re thinking about going to the meeting, please
sign up at Our MeetUp.com Page and click the “RSVP” Button.

To: REINLAC Members
Subject: Loan Request from Fellow Member

Dear REINLAC Member,

A member has requested that we send out a loan request to our members. This is the first time a request like this has come up. Since we are here to help, you are seeing this on the REINLAC.net blog. (The member who is seeking the loan wants their name withheld.)

Those members who are interested should email or call me.

Thanks,

Rene
661-456-0787
P.S. I’ve known and worked with this member for about 9 years.  My business dealings with him, and there have been a few, have all been positive.

Loan Request

Existing Management Company

• +/- 90 Single Family and small units.
• Includes 20 FNMA rentals.
• 1 of only 2 exclusive FNMA Management Vendors in Antelope Valley.
• Low overhead operation.
• Low fee loss from vacancy.
• +/- $9000/mo gross w/continued expansion of FMV and FNMA accounts.
• 2011 saw 50% growth in accounts and 50% revenue growth.
• Project continued 50% growth of accounts and revenues in 2012.
  

Seeking purchase financing for a competing management co. (Note: The subject company is the other FNMA vendor within the marketplace) FNMA accounts would be purchased under a separate agreement that would net Urban Resources an additional $1500 monthly.

The core business is:

• +/- 105 Single Family Homes
• Grosses +/- $11,000/mo.
• Business projects 40% account and revenue growth in 2012.
• Excluding projected growth, combined revenues for both operations would exceed $21,500/mo on closing date.
• Projected expenses are $5000/mo payroll; $2500 office expenses.
• The remaining $14,000/mo would be available for debt service.

Seeking these terms:
Loan amount:        $75,000
+ Fee (5 points):    $  3,750
Amortized:             24 months
Annual Interest:      25%
Monthly payment:  $  4,203

We would also offer expedited seizure and uncontested Trustee insertion in the event of a default.

REINLAC – The Real Estate Investors of North Los Angeles County
Empowering the Investor of North LA County Through Shared Knowledge, Instruction and Shared Resources

If you missed the last REINLAC meeting on January 10th, you missed a good one!

You can see the topic of discussion on the earlier two posts below.

The topics proved to be a whole new way of thinking about acquiring real estate for many of the attendees. Some people who have been licensed agents for years came with hopes of leaning ways to think outside-the-box. Others expressed doubts that some of these techniques would actually work in this real estate market of 2012.

As a result, there were many questions asked of the presenters, and many of the more experienced investors in attendance pitched in with their insights.

Perhaps the most important thing that attendees took away from the meeting is that there are different methods of acquiring real estate, if one is willing to learn those techniques, and to work harder than just looking in the MLS in hopes of finding a good deal.  We all know that the MLS is the “watering hole” that everybody goes to when looking to buy a property. If one is willing to work harder, greater opportunities may be unearthed.

Attendees also learned that the presenters, are planning to set up a company that utilizes these advanced methods of acquiring real estate and will be bringing those deals to members of REINLAC. Look for more news on that in the months to come.

Two of our REINLAC members went to Culver City and saw a
presentation by Bruce Norris on the future of real estate in
Southern California. Bruce does more research than anybody
else I know in order to determine his predictions, and many
investors have profited from his insights. Nannette Barrie has
agreed to brief us on the talk by Bruce, which I’m told was excellent!

This presentation is in addition to the one that Patty and I
will do regarding “Banks are making it tough for investors
to buy real estate. We have solutions!” See our MeetUp.com
page for more details.

As always, we meet at:
Rancho Village – Activities Room
39630 Fairway Drive
Palmdale, CA 93551
- 2 blocks east of the 14 Freeway at the corner of
Rancho Vista Boulevard (aka Avenue P)

Meetings start at 6:30 and end at 9:00 p.m. The next meeting
is tomorrow, Tuesday January 10, 2012.

Rene & Patty
www.REINLAC.net
661-456-0787
P.S. If you’re thinking about going to the meeting,
please sign up at Our MeetUp.com Page and click
the “RSVP” Button.

Thanks to the real estate melt down, it’s hard to get a bank
loan if you’re an investor. It’s even hard if you’re to live
in the property as your primary residence, have 700 FICO
scores and have 25% down!

Alternative real estate financing is a topic that all
investors should be familiar with, if not expert in.

At the January REINLAC Meeting, you will get an introduction
to some of the most useful alternative financing techniques
in today’s market. With this knowledge, you will be able to
acquire more properties because you don’t need a new bank
loan.

Owner Financing
-    Owner Carry
-    All Inclusive Trust Deed
-    Land Contract
-    Subject To
-    Wraparound Contracts

These are all tools that can be used to buy property with no
bank loan. They can then be used for your exit strategy when
you’re ready to sell. Let’s face it, there are way more
people who can’t qualify to buy your properties than those
who can qualify. In other words, if you can use creative
financing to sell your properties, you open your market far
beyond those who must qualify for a new bank loan. This
means more $$ profits $$ for you!

The presentation will be put on by Rene & Patty Caro. I
know, you’re asking, “So, why should I give up my Tuesday
night TV shows to listen to you?” Good question. Here are
some of our credentials:
-    Have been involved in about 75 real estate transactions
-    Owned 76 apartment units
-    Owned a trailer park with 46 stalls
-    Owned 15 single family houses
-    (Many were bought and/or sold using these techniques)
-    Licensed real estate agent since 2002
-    Licensed broker since 2009

Hope to see you there!

Rene & Patty Caro
www.REINLAC.net
661-456-0787
P.S. If you’re thinking about going to the meeting,
please sign up at Our MeetUp.com Page and click
the “RSVP” Button.