Leasing Fixers For Income And Profit

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Topics: Options

When financing dried up and the market slowed, I found myself with an inventory of Options and no money, so I began to combine Options with leases under the terms of which, I had the right to sublease the property until it sold so long as I paid all property expenses and mortgage payments.  Bear in mind that I did things differently from most people.  Instead of leasing a property and then trying to negotiate an Option, I Optioned a property, then tried to negotiate a lease.  This grew as a natural progression to my Options.

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Fasten Your Seat Belts, It’s Going To Be A Bumpy Ride

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Topics: Market Trends

Jimmy Walker once said that voters always get the politicians they deserve; and so we did.  Obama’s new programs create additional government bureaucracies staffed by thousands of employees that will initiate and supervise uncounted new regulations that will make doing business much more difficult and less profitable.  And you can bet that when he says “we’re all going to have to sacrifice”, he means we are going to pay higher taxes!  None of these changes will take place in 2008, but many new tax rate increases on both business and individuals will be put in place.  These could be made retroactive to January 1, 2009.  The point is, that if you want to take advantage of the current tax rates and benefits, you’d better do it before year’s end.  After that they could be gone forever.

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Why Private Financing Is Smarter Than Institutional Financing

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Topics: Financing

Over time you'll find it much more profitable to stop applying for conventional institutional loans. You'll go a lot farther, faster if you try to borrow from private investors who understand your problems rather than banks. This might require a shift in your thinking. Who owns the money that you've been borrowing? In the vast majority of cases, it won't be the agency who lends it to you. Instead capital is owned by investors who buy bonds, open accounts in banks, stock brokerages, thrift institutions, IRA's, credit unions, etc,

By locating a few of these people and offering them a better deal than that offered by institutions into which they've been depositing funds, you will have access to financing that is far superior to those nosy and gossipy institutional credit sources which you have been accustomed to using.

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Getting The Best Deals By Zigging While The Competition Zags

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Topics: Investor Success

Will Rogers said that the key to catching fish is to go where they're biting. He should have added, to fish where the other fellows aren't. Generally, avoiding competition is a vital fundamental key to profits. Despite their pay-loads, airlines haven't been very profitable because of ruinous price and route competition. Daimler-Benz's corporate motto is "Defiantly Different". That's a good motto for real estate entrepreneurs too. Working in a niche market, and deliberately doing things in a different way avoids competition that would rob you of opportunity and profit.

The single factor that most enables one to rise above mediocrity in real estate is....

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10 Tips To Avoiding Credit Traps, Tricks, And Travesties

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Topics: Financing

A lender's fantasy is to have thousands of borrowers, up to their ears in debt, who transfer a major portion of their earnings to him each month in the form of interest and charges. On the other hand, this scenario can be a borrower's worst nightmare. Indiscriminate use of credit has brought even the biggest real estate moguls low. Between them, Bill Zeckendorf, Donald Trump, and Bill Levitt lost $billions because of debt. Using credit can become a habit that's very hard to kick.

Lack of financial discipline is what creates "Money Junkies" who can't get through a month without a credit "fix". Here are 10 tips to help avoid becoming one:

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Negotiations Makes The Difference Between Profit And Loss

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Topics: Negotiating

The starting point for all negotiation is knowledge of the facts and circumstances surrounding the deal. The more you know about the product, and all the people involved in any particular negotiation, the better. One of the reasons that so many pages of the book were devoted to goal setting was so you would know what benefits you expect to get and what you would be willing to sacrifice to get them. Usually, this boils down to financial terms and timing, but it can also include the amount of work you are willing to do to make a deal.

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Negotiating The Best Deal

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Topics: Negotiating

Raw greed only kills deals. The key to negotiation is to start with a well-defined goal and to know what you're willing to sacrifice to reach it. Gathering information about the true state of affairs, the property, mortgage and tax details, the urgency of the situation, and the cost to the other party of not making a deal is critical. You must invest time in patient questioning and listening to the answers in order to separate what the other party wants from what he perceives he needs. Fulfilling his needs is your currency in the transaction.

Think of it this way....

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Buying Properties Out Of Your Geographic Area

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Topics: Investor Success

When it comes to investment, absence doesn't make the heart grow fonder. Somehow, we are prone to think that the grass is greener in the other fellow's yard. The problem with trying to achieve something outside your own area is that there will be competitors waiting there to guard their territory.

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