Here’s a short history lesson on Memorial Day:

Formerly known as Decoration Day, it commemorates US men and women who perished while in military service to their country. First enacted to honor Union soldiers of the American Civil War, it was expanded after World War 1 to include casualties of any war or military action.

Memorial Day formerly occurred on May 30 and some, such as the Veterans of Foreign Wars and Sons of Union Veterans of the Civil War, and myself advocate returning to a fixed date so the significance is remembered. The public has a nonchalant observance of Memorial Day and the day should either be a real holiday or dropped completely.

Sadly the day has become a meaningless 3 day holiday weekend and a time for picnics, parties and family gatherings with a complete loss of the real meaning and what the day stands for.

USMC Logo Gerald RomineWhen I was in the the Marine Corps I was fortunate to have served with many veterans but my eyes were really opened when I was part of a select group tasked with going through Vietnam MIA (Missing In Action) files and selecting which ones could be declassified and available for public access.

There is no polite or politically correct way to phrase my thoughts on those MIA files. Imagine serving your country and being shot down behind enemy lines. Surviving the plane crash. Avoiding capture. Surviving alone in the bush for a week or more. In radio contact reporting on a schedule. Then being left to die because no rescue mission was ever attempted. I wish I could tell you such scenarios were rare… but I cannot.

As a veteran I understand casualties of war.

But Memorial Day has a special meaning for me because of the Vietnam MIA project. I’ve handled the military files and read the accounts, seen the communication logs, viewed the maps, and know the real story of many veterans who perished while serving their country. Men for whom no rescue attempt was made even when their location was known.

And on this and every Memorial Day I honor and remember the many men and women who have died serving their country. I hope this day has more meaning than a 3 day weekend with beer and a barbecue but I fear I am one of the few who understand and appreciate the real significance of Memorial Day.

In Memory Of Our Honored Dead,

Gerald Romine

Note: The Marine Corps Hymn is the song below.

I wanted to share a resource with you - Camtasia. If you’re not already using this wonderful screen capture software, a PC magazine in Britain recently published a link where you can get version 3 of Camtasia at no cost! It’s normally $300 so if I were you I’d jump on this pretty quick if you don’t own Camtasia yet:

http://download.techsmith.com/camtasiastudio/enu/312/camtasiaf.exe

What can real estate investors to do with Camtasia? One big thing you can do is record a Powerpoint Presentation as a video on how you buy houses, sell houses, what you do, etc and set it up on your website. Then, drive potential buyers and sellers to the video and let it do the screening and work for you.

If you have a webcam you can get fancy and record the Powerpoint and yourself at the same time. It’s a web world and you should get on board!

I hope you get some benefit from this resource.

Author: Gerald Romine

P.S. Have you tried out my new software yet? It’s available at Test My Software For 10 Days - Then Decide!

As my mentor, Dan Kennedy, used to say, “It’s the small hinges that swing the big doors.”

He was referring to little tweaks, habits or little things that make a profound difference. Quite frankly, having a system in place to quickly analyze and prepare all of the paperwork for real estate deals is one of those ’small hinges’.

It’s a little crazy how much time most of us WASTE every day.
(Trust me, I’m guilty of it sometimes too!)

Listen, it’s no secret we’re distracted, interrupted, and basically NOT focused most of the time.

How many times are working on something and then you jump around like a grasshopper on crack when you get a text message, IM or even a ‘ding’ in your email box? Or maybe there are 18 different items on your desk or on your ‘to-do’ list pulling you in 18 different directions?

If any of that sounds even a little familiar and you want to discover how to totally manage your real estate investing, time, productivity, energy and financial future - check out the Ultimate Real Estate Investing System. The special Test My Software For 10 Days - Then Decide! is quickly coming to a close

I have to say that most real estate investing software is junk because it does not focus on quick and easy deal analysis and getting offers made and accepted.  Charts and graphs are often used to make you fell good about a bad decision.  When you’re an investor it’s all about buying deals that make money today so you can get paid right away.

Anyway - check it out. I know that before I had a system it took me forever to put ONE deal together and now I can do a deal in literally 5 minutes.

Test My Software For 10 Days - Then Decide!

Now Go Buy A House,

Author: Gerald Romine

P.S. I have to tell you this story from Ronkonkoma, New York.

I was recently on a training call and John Pierro joined me and told me about his first deal using my software.  He bought a 2 family REO property that was worth $380,000 and the lender accepted his FIRST offer for $204,343. That’s $175,657 less than the current value!

That’s an insane discount!  But these are crazy times we live in and when you can justify an offer the way we do with UREI things like this happen.  These numbers blow me away!

I love seeing and hearing about real-world success stories of regular, everyday people. If you have a successful story please share it with me.

Why are bankruptcy’s so hot?

The truth is most people hear bankruptcy and because they do not understand much about the process they give up thinking it is too difficult or that they need a lot more knowledge to pursue bankruptcy investing. That’s BIG Mistake #1.

The second big mistake is people think that a bankruptcy real estate investor deal is a longshot deal because you have deal with the BK court, petition for releases, etc. While that can be true that IS NOT what Mark and Caryn do with BK’s!

Mark and Caryn specialize in Bankruptcy Properties that have just been released from bankruptcy and when you understand why they specialize it will make perfect sense that you do the same.

Here’s What’s Critical To Understand

When you do what Mark and Caryn do you are targeting specific properties that have been released from the bankruptcy and now the seller/owner is under the gun to get things done. Many of the properties will be lost to foreclosure in days or weeks and at this point the seller recognizes the bankruptcy game is over and they are either going to get something or nothing… but they do not have time to hold out and stall or they get the big goose egg.

Here’s The Best Part

This segment of bankruptcy property has virtually no competition! Think about it and it is easy to understand why. Just start asking the investors you know how many of them have bought a bankruptcy property and you’ll quickly discover it is a rarity. Not because it is hard but because virtually nobody understands what to do and how to do it.

So do it NOW!

Do yourself a favor and watch this video for the education. You’ll be glad you did.

Bankruptcy Secrets Webinar.

Author: Gerald Romine

The state of the country is in a real mess! Not because of the economy but because of the idiots running the country and blatant misrepresentation by the media. Here’s a reality dose for the whiners and people with their head in the sand.

News Headline: Consumers Are Downbeat On Economy

As I read this real “News” story it talks about “Consumer Sentiment” being at a 28 year low because of surging gasoline prices, falling home prices and a weakening job market.  Let’s see…. I’m a consumer and my “sentiment” is low?  Damn, I didn’t know my sentiment was low so now I’m worried. Does that mean I need to have my prostate checked or something because I don’t even know where my sentiment is located?

Are gas prices high? Yes, and  I don’t like paying anymore than you do but I count my blessings.  Compare our gas prices to Europe ($7.615 per gallon Sept 2007) and they are still a real bargain.  With gas prices surging out of control per the media  you would think everybody would park their cars and start riding bicycles… but that’s not happening.  Drive around on any Friday or Saturday night and notice the restaurants, bars, and hot spots are packed full!  Just last week I left a restaurant because I did not want to have a 45 minute wait!  And they say this country is in a recession? Seems like a lot of people have plenty of spendable income and Starbucks is still doing great charging $7 for a cup of coffee.

Let’s put you in charge of the oil companies… How much would your charge for gas?  $1 a gallon?  Not on your life.  It makes business sense to keep raising the price if gas until you have raised it so high that the loss in consumption equates to a loss in net profit.  And right now they aren’t even close to that amount and this is verified by looking at US consumption of gasoline.

But don’t worry because the government is doing their best to get your gasoline prices lowered.  That’s why we’re in Iraq, right? Or was it for weapons of mass destruction?   You have to realize that the government profits on every gallon of gasoline sold through gasoline taxes which nationally average 47 cents per gallon.  So if Uncle Same really wanted to lower the cost of gasoline they could just suspend gas taxes and we’d save 50 cents per gallon.  That would be fast and easy but it will never happen! Instead the politicians will talk about all kinds of things that need to be done yet refuse to do anything that does not line their pockets with profits.

Supply and Demand

When it comes to gas we’re in a very bad position because as a Nation we are dependent on the Middle East for oil/gas.  Supply and demand 101… they’re the only supplier so they control the prices.  This is really odd since we have so many oil sources much closer than the Middle East - Alaska, Russia, Central America, and South America come to mind.  Countries like Brazil are turning to ethanol as an alternative but here in the US there is no talk of using real alternatives.

History Fact: Henry Ford endorsed ethanol before the gasoline companies gave him financial incentive to switch to gasoline motors!

What do gasoline prices have to do with housing?

Supply and demand rules are the same for both.  With oil we are currently screwed for several reasons. First we have one supplier. Second, the government does your thinking for you so you have no control over getting another supplier. Third, the government profits from the sale of gasoline by the gallon. No matter what the cost of gasoline the only choice you have is it buy it or not to buy it.

You do not need to be concerned with gas prices or the economy because these are all things that are out of your control.  Focus on things you can control as individuals.Your life. Your finances. Your business decisions.

With the housing market sales are based on supply and demand as well.  New construction increased as the demand for housing increased to the point that the market was flooded with an oversupply of houses. New construction lags actual demand and as sales slowed more inventory reached the market as builders completed projects which worsened the situation.

Demand for houses is down and this is reflected in the low number of permits requested for new construction.  As the oversupply is sold, rented and occupied prices will stabilize and rebound.  The cycle will be reborn and as it gains strength there will be another rush to build houses. This cycle is never ending.

What we are experiencing now is nothing new to old real estate investors like me who used to watch a 7 year cycle in the markets. Prices will go back up and there are things that can be done to make this happen sooner rather than later.

If you are looking to buy a personal residence now is a good time and you can get a lot more for your money today then you could three years ago. Understand that buying a residence to live in is NOT an investment. Robert Kiyosaki 101 - investments pay you money… your house is a liability because you make payments.

For real estate investors the focus should be cash flow. I know, a mythical thing your grandparents may have told you about but trust me it really does exist and tenants can make you rich, filthy rich.

Tis all for now.  If enough people find value in this article and post comments then I will write more articles that talk about the big picture, success, and how to obtain it.

Author: Gerald Romine

hillside cape 1This could be the most important real estate tip you ever receive, and by taking daily action, you could change your financial life forever!

It is easy to claim to be a real estate investor. You can easily uncover whether people are truthful about this with one simple question. The question is:

“Are you a committed real estate investor?”

Commitment equals results. Generally, being a real estate investor means the result is making lots of money. Let’s assume that as a real estate investor you want to net $100,000 per year in cash.

How do you measure your own level of commitment? The first step is to answer the following questions honestly:

  1. What did you do yesterday to prove you are a real estate investor? Phone calls? Offers? Drive neighborhoods? Letters? Craigslist.com? Backpage.com? Ebay?
  2. What did you do last week to prove you are a real estate investor?
  3. What did you do last month to prove you are a real estate investor?

The second step is to analyze your own actions and ask whether those actions show commitment.

Make Money With Gerald RomineThe bottom line is that if you are not taking action on a daily/weekly/monthly basis then can you really expect six figure results? Of course not! Action equals results, and cash.

Author: Gerald Romine

The short answer is YES! You can, and should, borrow money to invest in real estate. However, let me clarify. Investing is where you have a realistic plan to make a strong return on your investment. The return is not based on appreciation of the property. It must provide a return on investment after allowing for costs, expenses, and an allowance for things that might go wrong.

When borrowing money to invest, here are 3 simple rules to follow:

  1. If you had the cash, would you loan someone else the money you’re asking to borrow against the same property? If the answer is, “No,” then you don’t have a great investment that you are confident in. Move on.
  2. Does the risk justify the reward? Are you making enough money to make it worth it, or are you getting involved because you want to be “in” real estate? The only reason for a business is profit. If there is not enough profit, move on to another deal.
  3. Is this a long term investment? If the answer is, “Yes,” then the next question becomes, “How much money are you making monthly?” If you’re not making money monthly, then you are speculating (hoping, not investing) for future profits.

Certainly there are exceptions to these rules depending on your financial position and your investing goals. However, many novice investors get sucked into buying properties. They believe, mistakenly, that real estate always goes up in value. They hope that history will repeat itself and they will become rich in the future from their property.

Smart and profitable real estate investors base investment decisions on instant profitability. You can’t go broke when you are making a profit from the beginning.

Author: Gerald Romine

I could not resist the urge to reply to a real estate agent that thought foreclosures and short sales would be the death of the real estate market and went on to beg everybody to vote for the President that would fix the mortgage mess. Just another example of somebody with a victim mentality wanting somebody else to come to the rescue.

Here’s my unedited response:

You’ve got the wrong approach there my friend. Short sales and foreclosures are not the death of real estate markets they are a result of the current real estate market.

The fact is if buyers must have 100% financing to get a loan then MAYBE they shouldn’t be buying! Here’s a revolutionary idea… how about if people started spending less than they make and saving money so they would have a down payment, rainy day stash, etc.

I get that bank financing is hard to come by for most buyers but where one door closes another opens. I have properties I’d like to sell but it is better to hold them now and be in the buying mode looking for deals.

And one does not need bank financing to buy properties. Alternatives include cash, subject to, private money, hard money, and owner terms.

As an agent a LONG time ago I remember simultaneous note purchases and this is still a possibility for owners and agents if they get creative. Have you ever carried a real estate commission in the form of a note?

Wake up, this is nothing new and some of us have been there before and could tell you some real war stories about 23% interest and banks offering financing like it was “you name your terms.”

Best thing for the market is if the government stays out of it and it is left to correct itself. And PLEASE, what could the President do to fix this mortgage mess? Throw more taxpayer money at it?

Gerald Romine

Today I had to be in the bankruptcy court because a seller wrongly included a property that was not longer theirs in a bankruptcy filing as a way to stay in the house payment free. A real sleazy thing to do.

So we show up to petition the court for a release and what a surprise, the seller doesn’t show up and the judge releases the stay per our request.

This is one example where the former owner was doing something very wrong… especially considering that they were hours from losing the home to foreclosure when they took out a private money loan in the first place.

That aside, there can be legitimate uses for bankruptcy and many real estate investors have decided that bankruptcy was the right tool for them to start over after having made some bad investment decisions.

How To Establish Credit After A Bankruptcy

  1. 1. Apply for a secured credit card. Forget the other advice because this will save you time and frustration.
  2. 2. Charge everything you can on the secured credit card without going over the limit. Pay the card off every month.
  3. 3. Open a savings account and set aside a certain amount into the account every month. Don’t touch this money… just let it grow.
  4. 4. Check out www.annualcreditreport.com. You’re able to get a free credit report but make sure you agree to see the report for 30 days or you may not be able to access the report later.
  5. 5. Find and dispute all negative reports online. State reasons and be sure to add personal statements whenever possible. Repeat every 20 days. Repeat challenges every 20 days!
  6. 6. Repeat steps 4 and 5 every 3 months until you have the desired results.
  7. 7. Simple as this sounds be sure to PAY your accounts on time.

Author: Gerald Romine

Gerald Romine’s Kick Ass Training Call For Real Estate Investors. The Easy Way To Profit With Real Estate Bankruptcy

Join us for a Webinar on May 14th

Frustrated with how much you’re not making as a real estate investor? Tired of trying to get a deal from the foreclosure list? Wishing you could market to sellers who are unknown by other investors?

That’s exactly what Mark Klee & Caryn McKinney discovered in the bankruptcy niche market. They’ve made a fortune in real estate investing through bankruptcies and you’re not going to want to miss this ONE time event where I bring in Mark and Caryn to our training call to show you how to take advantage of Bankruptcy Profits!.

Wednesday May 14, 2008
Eastern: (9:00-10:30 PM)
Central: (800-9:30 PM)
Pacific: (6:00-7:30PM)

Reserve your Webinar seat now at:
Kick Ass Real Estate Bankruptcy Webinar With Gerald Romine, Mark Klee & Caryn McKinney

Idiots surround themselves with idiots then have the audacity to wonder why they are not successful!

I’ve long understood the importance of surrounding yourself with successful people because our “environment” is critical to our success. For this reason I join mastermind groups to share ideas, network, learn, and to keep my real estate investing skills and techniques finely tuned. In addition to mastermind groups I love to hang out with like minded friends, and today my good buddy Stephen took me out to lunch so we could talk real estate and share war stories.

Stephen and I have been going out to lunch for years and we have a running competition to find dining establishments that are either a great value or a fine dining experience.

Don’t ask me how but Stephen found a Chinese place where we both had lunch and the total bill came to under $9.00 - and that included an appetizer! Cheap B@#$%@rd found a place that will be tough to beat! I’m thinking maybe Costco Dogs for $1.50 each with a churro should come in under $6 bucks. It’s just one of the ways we keep things interesting… and we’re also fond of good sushi and fine dining!

Next thing you know we’re trading war stories over lunch and busting each other’s chops on deals that have gone south, have an interesting twist, or required a court experience. The gloves come off and sometimes we come away with some useful knowledge. Other times it’s just fun to vent.

My fun deal of the week is I’ll be in the BK court this week because a rotten seller lost their house when they stopped paying a private loan. Should be cut and dry since the title to the house transferred EXCEPT they found some attorney willing to file Bankruptcy and include the house after the former owner was no longer the owner!

Even though the house was already forfeited and transferred via warranty deed it can be included it in the BK which forces one to petition the court to have the house released even when it should not have been a part of the BK in the first place. Crazy I know but trust me it’s real and while the entire game is going on no payments are coming in and the former owner is squatting in the house!

All the former owner is trying to do is stretch out the time they can live payment free in the house. It’s a sleazy thing to do but something investors have to deal with from time to time. It does set up the first lender for a short sale which could turn this into a real opportunity.

The good news for you is it is much cheaper and faster to learn from somebody else’s mistakes. In fact, if a real estate expert doesn’t have war stories and scars then it’s a good sign that they haven’t done very much in the business!

Stephen’s a sharp guy and he’s been around the block a few times and I’ve asked him to share a few words with you about what’s working for him right now in today’s real estate market. So here’s Stephen…

Author: Gerald Romine

“Success doesn’t come to you…you go to it.”

Those words were spoken by Marva Collins and I totally agree.

The other day I received the following email:

“I would also like to point out that people are not poor by choice, but by decision. They make poor decisions. If you were to hand a winning lottery ticket to a poor person they are not going to refuse it and say no, I prefer to be poor.I currently am effectively homeless and I’m having to sell my car to get food money. In your talks you casually dismiss the costs of promoting (cards etc.), you assume that a person has a phone and a home to put it in. It apparently is beyond your ken to understand that a budding investor may not have these ‘trivial’ things.

I wish you weren’t so damned high and mighty when it comes to money and so derisive of poor people. If it wasn’t for the poor you would be poor.”

Tony

Gerald’s Response: Listen, if you have a losing attitude things are not going to change. If you are in a bad financial position I would not be buying “cards etc,” I would be driving around neighborhoods (or riding a bike if needed) and making phone calls to MAKE things happen. These are two of the lowest-cost tasks you can do to find bargain real estate.

“Dismiss the costs of promoting?” Huh? I don’t get it. Real estate investing is a business and there are costs associated with all businesses. I haven’t found any other business with the income potential of real estate that can really be built on a shoestring investment. If anybody thinks money can be earned without investing anything to attract it, they are a fool!

“High and mighty when it comes to money and so derisive of poor people?” O.K., I confess that I had to look up “derisive” (means mocking). Anyway, money is nothing more than a tool and can be used or not used, for good or bad. Money doesn’t make the man (or woman); it only brings out what is inside of them. Poor people have poor beliefs that STOP them from achieving success. If that’s “derisive” then I’m guilty. I believe all people are self-made for good or bad, poor or rich. I’ve been there. I once was poor and made a choice/decision to become wealthy.

My favorite one was the closing line, “If it wasn’t for the poor you would be poor.” The writer just doesn’t get it. The best way to make it to the top of the mountain is by helping other people to the top, and then you arrive there by default. Bill Gates didn’t make money from the poor; he made money from people who wanted to buy Microsoft products. Bless him and his success.

How about a few motivational quotes:

“The waste of money cures itself, for soon there is no more to waste.”
-M.W. Harrison

“Do not value money for any more nor any less than it is worth; it is a good servant but a bad master.”
-Alexandre Dumas fils, Camille, 1852

Norman Vincent Peale ( May 31, 1898 – December 24, 1993) was a Christian preacher and author (most notably of The Power of Positive Thinking) and a progenitor of the theory of “Empty pockets never held anyone back. Only empty heads and empty hearts can do that.”
-Norman Vincent Peale

Author: Gerald Romine

IndyMac bank has adopted a new policy of charging $300 for real estate
investors to submit a short sale. This is absolutely insane for Indymac bank or
any lender to expect an investor to flush $300 down the toilet.

My conversation would be something like… “Let me get this straight… you want
me to pay you $300 for the privilege of you saying no and taking my $300. Do I
look like and idiot? Here’s something for you to think about. Right now I’m
holding the deed on the property in escrow pending our negotiations on a short
sale. How about if you pay me to release the deed to you won’t have to wait 3
months to file foreclosure, 3 months for the foreclosure process, miss at least
6 months of payments, and hope the borrower does not file bankruptcy which
delays your losses indefinitely all while the value of your security is dropping
like a rock. Did you want to review my short sale package or play or watch the
values drop on your security?”

Check out my video real estate tip for more information.

Are you tired of paying too much for homes with conventional financing?

Would you like a simple formula? How about a formula that 95% of real estate investors do not know, understand or use? A formula that will guide you to your own real estate riches?

Most real estate investors fail in business for a simple reason. Overcoming this common reason can easily turn a starving investor into a financial success. The difference is in understanding and learning:

The 4 F’s of Real Estate Investing

  1. Find them
  2. Fund them
  3. Fix them
  4. Flip them (or keep them)

Now the test: your answer to one simple question will tell me a lot about your current real estate investing knowledge.

Question: “Which F is the most difficult?”

1) The Common Answer: Beginners believe funding properties is the hardest part of the process. Beginners struggle to understand the money they want is readily available from others. When you find a great deal, there are people who will make loans secured by real estate. They agree that with your payments they get a set amount of profit, but if you don’t make the payments they take property and make an even larger profit.

2) The Correct Answer: Experienced investors focus their efforts on finding deals. Why? Because if you do not have the right deal then there is nothing to fund, fix, or flip. Spend your time on “Finding.”

The Magic Formula

First, focus 90% of your effort to finding deals.
Then invest 10% of your effort in funding, fixing or flipping after the deal(s).

Ask yourself, “Have you been putting in 90% of your efforts on finding deals?” If the answer is “No,” CHANGE IT.

Gerald Romine

A mechanic was busy removing a cylinder head from the motor of a Harley-Davidson motorcycle when a well-known heart surgeon entered his shop.

The surgeon was waiting for the service manager to take a look at his bike when the mechanic shouted across the garage, “Hey, doc, can I ask you a question?”

The surgeon, a bit surprised, walked over. The mechanic straightened up, wiped his hands on a rag and asked, “Doc, look at this engine. I open its heart, take valves out, fix ‘em, put ‘em back in, and when I finish, it works just like new. So why do I get such a small salary and you get the really big bucks, when you and I are doing basically the same work?”

The surgeon smiled, leaned over, and whispered to the mechanic, “Try doing it with the engine running.”

What does this have to do with real estate investors?

Many investors approach real estate deals like the mechanic. They try to solve problems with textbook answers and forget they are dealing with people.

As an example, assume your property meets my buying criteria. I’ll pay cash, or the only other way I can buy your house is to take over the payments.

While both options may be true and are good things to say when talking to the seller, investors should take the surgeon’s approach and realize they are working with real, live people that want (and need) to be heard and listened to.

Real estate is a great business that can be financially rewarding, just remember to put people first and you’ll benefit in more ways than you can imagine. If your only focus is the money, people will “sense” this and many will not want to work with you or sell you their home.

Author: Gerald Romine