Monthly Archives: April 2010

Flipping Houses: How to Evaluate Any Deal In 10 Minutes or Less

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When you’re flipping houses, it’s critical to be able to evaluate deals quickly and effectively.

One of the most important characteristics of successful real estate investors is their ability to take fast – and massive – action. And the one thing that holds people back in real estate is FEAR of taking the wrong action! In the next step, I’ll cover how to create RISK FREE contracts 100% of the time that actually get accepted, so no worries there… but for now, understand that you have to be able to quickly evaluate deals or else someone else is going to snatch up all the really good deals before you have a fighting chance.

So, for right now, I’m going to cover Continue reading →

Before You File Your Corporation or Limited Liability Company (LLC): 5 Things to Consider!

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POINT # 1: Many investors believe that they can create a limited liability company (LLC) or file a corporate charter with the state and always have liability protection. This is SIMPLY NOT TRUE. The truth is that each of these business entities (the LLC, the corporation and even the limited partnership) require certain key steps after the structure is created. I always like to compare business entities to a fancy Italian sports car or a new baby…they WILL DEMAND PROPER CARE AND FEEDING!

They are fun on the first day, but you had better know how to maintain Continue reading →

Understanding Corporations, Limited Liability Companies (LLC’s) and Limited Partnerships

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The best way to understand a corporation, limited liability company (or even a limited partnership) is to realize that each creates a special legal relationship or privilege between the business owner(s) and the government. These areas of government include:

1. State Government (including state taxing authorities and the state court system)
2. The Federal Government (specifically the IRS and the Bankruptcy court system)

You may be saying, alright Darius, I still don’t understand what you mean by a relationship or privilege. The best way that I can put it is this:

A business entity is a legal relationship which allows for certain privileges. Continue reading →

Real Estate Investing Mistake #2: Inspections and Repairs

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The only real solution for real estate investing mistakes is consistent action! You’ve got to stick with it and realize that part of learning process. You WILL make mistakes… and you will continue to make them for as long as you choose to invest.

The key is to learn from each and move on. Add it to a policy and procedure manual so to speak! And avoid that particular real estate investing mistake in the future!

When I first started in real estate, I would document every real estate deal in detail. I would be sure to document: (1) What went well, (2) What didn’t go well!, Continue reading →

Real Estate Investing Mistake #1: Farm Area

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When I first got started in real estate investing, I was the poster child for mistakes! The one thing I did PROPERLY was that I took action. And success favors the people that take action.

The key is to keep moving and not dwell on each individual real estate investing mistake that you make, especially early on! Just keep on going… and take a few minutes to figure out what the lesson was, add it to your knowledge and experience bank, and move on to the next!

In this article series, I’ve highlighted 17 real estate investing mistakes that I made early on and share with you what you can do to avoid making the same real estate investing mistakes I made…

The first mistake new real estate investors make is always thinking the grass is greener on the other side! That “another” market will have better deals, more motivated sellers, and more qualified buyers. Once your business is established with duplicatable systems in place, it can be easy to expand into additional markets. But in the beginning, stick with your targeted farm area. Continue reading →

Real Estate Investing Mistake #7: Not Having Joint Venture Agreements In Place

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Real estate investing is exciting when you’re just getting started. Real estate is all you can think about and all you can talk about. Your enthusiasm rubs off on others and you instantly start attracting people that want to lend money on for deals, partner with you on properties, joint venture with you on aspects of your business, etc.

The problem is that when you’re so excited, it’s hard to imagine anything EVER going wrong. Why would you need anything more than a handshake and verbal agreement?

Sure, you may be laughing as you read this, but you’ll see… when it comes time to putting a joint venture together, you’ll be eager to get moving along and you just might make this critical real estate investing mistake… and it COULD wind up costing you tens of thousands of dollars, friendships, and worse. Continue reading →