The Real Estate Sage at The Real Estate Investment Institute - REII

Pcanalyticalconstrictus

William J Archambault Jr (The Real Estate Investment Institute ) — Thu, 20 Nov 2008 08:06:44 -0600

This vicious reptile lurks in the media, slithers from computers, flourishes in the internet, and hides in volumes of paper camouflaged in numbers, and appears spiting facttoids.. It's attack can only be detected by it's symptoms. It's victims should get very excited by each new opportunity, but instead procrastinate and over analyze until they are convinced that each opportunity is a bad deal.

The cure read some thing positive about real estate like, "One House At A Time! / Finding And Buying Single Family Rentals" avoid negative third parties and those with volumes of analytical papers, take two aspirin and call me in the morning!

Once it's caught you if left untreated this vicious constrictor will surround you and squeeze your financial future out of you!

I originally wrote about these insidious constrictors more than four years ago. It's now November of 2008. We're in the most sever financial crises since the great depression of the 1930's! Regardless of the cause Pcanalyticalconstrictus arrived in the US like the Brown Tree Snake did in Guam. Starting as a minor nuisance it's numbers multiplied exponentially. Fed by sensational journalism, political expediency and corruption, nurtured by public ignorance and gullibility, this slithering evil has taken control of our National and many personal economies. The original cause may well have been innocuous, but the crisis has become very real!

Your continued success and that of your clients depends not on the actions of the constrictors, but rather on your actions! As a child I was taught "when the going gets tough, the tough get going." As a Marine, I was taught that "when things get tough, the tough get tougher!," Expletives deleted. As a salesman I was taught that "when things get tough, the tough go back to basics!" Platitudes, yes, but all very true!

Those that look at homes and see only, over priced, upside down, devaluating houses and those that look at real estate investing as only for appreciation, have sadly have forgotten they're the people business! In their delusion they forget that shelter is a basic human need! Shortly after air, water, and food people need shelter! If you check the census and birth records you'll find that the population keeps growing!

Those of you strictly in real estate as apposed to the people business have a major problem, real estate isn't the same as it was less than two years ago, but people still need shelter, they need housing! More than any time in recent history true professionals are need, consumers need more help than ever! This is your Daddy's, more likely your Grand Daddy's real estate. Opportunity abounds for those in the people business, who can solve people problems. Sellers aren't going to get top-dollar, buyers face an uncertain future, they all need your help.

There are those that will dismiss my approach to real estate, those who will sincerely tell you it can't be done, they're right! They can't do it! Then there are those, mostly politicians, that have a vested interest in your failure. The former are ignorant, the latter evil! It's been so easy for the last decade or two that many have forgotten and most never learned basic people oriented real estate. To survive you're going to have to learn or relearn the wisdom of our Fathers.

If you read no further understand this: Any thing is possible in the people business if the deal is good for everyone! Good in the face of reality means better off than they are. It's not easy, but it's that simple!

Bill

William J Archambault Jr

The Real Estate investment Institute

Freedom Of Movement / Rambling

William J Archambault Jr (The Real Estate Investment Institute ) — Sun, 16 Nov 2008 19:54:58 -0600

Brenda and I were out driving as we sat at a stop light we noticed the sign said $1.790 per gallon, I remarked "now it's only $1.50 high." I got to thinking about all that people especially young people are missing.

Born in the first half of the last century, I didn't grow up rich. I did grow up privileged.

New years morning 1957 found my brother Jack, our sister Shirlie, and I at my Aunt Marge and Uncle Jim's home our parents were with other relatives across the state. My Aunt and Uncle were acting strange, my Uncle took my three cousins into his den and closed the door. When they came out, they were acting even stranger. After a big breakfast my Uncle took Jack, Shirlie, and me into his den, we'd never been in there before! My Uncle's stammering would have scared us if we hadn't been 8, 7, and 6, he started out saying "there was an accident last night, no, no, your parents are ok! There was a fire last night. About midnight there was an explosion and your new home burnt down. I've talked to your parents and they can't get back here until this evening. Billy your Dad ask me to go look at it, he suggested I take you along so you can talk to Jack and Shirlie about it,"

I was the oldest. I'd known Uncle Jim all my life and yet this was the first time I been alone with him, and until we lost him nearly 40 years later it was to be the last time I'd be alone with him, sadly I remember nothing of that very long 3 mile trip.

Everything we had burnt that night except 3 or 4 changes of clothes we had with us. All I really remember was seeing my bike it's frame sagging after melting in the heat, it's big balloon tires now two streaks of soot against a brick wall. That's the only image I have of that bike.

That bike that had meant freedom! That bike that had opened the world to a boy, like all boys, living on the edge of suburbia.

It's hard to imagine the freedom of movement that bike granted a kid. Times were different, kids were safer than today, traffic was the only real danger, pedophiles were few and far between. Kids, old enough to find there way home, could be safely let out. Yes, I was privileged.

That bike wouldn't be replaced for another year. Little did I know just how much freedom that year and the next would bring. We moved to the farm just before school started the next year, that spring I got a new bike for my tenth birthday in April. Shortly there after my farther brought home my first horse! Goldie was a small Arabian grade mare, palomino most of the year, in the spring she'd show a dark brown pattern similar to chicken wire. Goldie was to change and dominate my life for the next twenty years. It took a year for me to control that horse or more correctly for her to train me. By the next spring Goldie and I had a fifty mile range on any given day, I had freedom of movement, I had independence, I had responsibility!

I was a happy kid, I was lucky, and grateful.

By that second spring, Jack and Shirlie now had horses of their own, but lacking Goldie's speed and incredible endurance, they lacked or failed to utilize their freedom of movement. We grew up so much alike, but o'so different!

I have to thank bikes and Goldie for a lot of my independence, but I can't forget gasoline! Gas and I go back even farther than Goldie and the bikes. My Father and both my Grand Fathers were fisherman, being the oldest boy (on my Father's side) I started fishing long before I was out of diapers. I learned to fish, but never really liked it. What I did love was being with those three men and their friends and a never ending love of the water.

By two I would sit in Grandpa's boat tied to the dock by a 100 or so feet of rope and row around the world, well my little world. By three I could start Grandpa's "Mighty- Mite" outboard, Mother panicked. Grandpa bought a stouter rope. By four I was allowed off the rope, I could take the boat 4 or 5 miles across the lake to my Aunt Teen and Uncle Bernard's house! Uncle Bernard taught me to drive his speed boat at 8 so I could tow my two older water skiing cousins, but the next summer Bonnie like her older sister Beth discovered boys, and they didn't need or want me around to drive or chaperone. So began my life long love affair with gasoline.

I learned to drive farm tractors and pick-ups, but that was work. For fun I built a cart to tow behind the walk behind garden tractor, that Christmas I got a set of good ball bearing wheels and an axle for my cart. Come spring with my new wheels installed I experimented with different pulleys and added considerable speed to my contraption. Dad was real proud of me until he found me going down the road at 50 mph! You see there were no brakes except the soles of my shoes. It was back to the garden for the little tractor.

We left the farm 5 years later, Goldie went with us. I was 15 when Dad replaced the car we'd rebuilt for Mother. (See: Dad's Shop) They wanted something newer for me to learn to drive in. Dad got us a Ford station wagon, a truly great choice for his family now with five kids. I finished drivers education shortly after my 15^th birthday. My permit in hand and 10 months to go before I could get my license, Dad made sure I drove when ever the family was together, by my birthday I had driven well over 10,000 miles on roads, wet and dry, ice and snow, towing trailers with and without live stock. If I went there with Mom or Dad I drove. April 16, 1964, "free at last, free at last, thank God Almighty, free at last." Mother took part of the afternoon off, picked me up at school and took me to the Sheriff's office, 30 minutes later I was a licensed driver! I took Mother back to work. According to Mother it was 3 hours later when they spotted me driving down the street with my arm around a busty blond. It's not true! Sunny was busty, but never blond.

They spotted me because while it was my birthday, Mom got the present, they picking up a new car for Mom, all to herself. (It was too, until Jack got his permit 3 months later.)

Until I finished school two years later they never asked for the keys to the station wagon. When in January 1966 I bought my own first car, Mother objected, no child of hers would have their own car until after they finished high school. Mine sat in the yard until June. Mother wanted control. She never exercised it, but it was her car and she could say no! From license to graduation that car got a lot of use, my Grandparents and grade school friends were 150 miles north, my best friends and I would often take $5 each and take off Friday nights, we saw a lot of Southern Michigan, Northern Ohio, Indiana, and even Illinois. That car was handy with the back seat down you could and we often did, seat 16 high school kids in the back, plus 3 up front. As long as we stayed out of trouble we could do just about anything, that didn't mean we didn't have problems, one Friday night 18 of us were out at the local radio station, on the air with a friendly DJ until the station when off the air at 2am, the gas tank was full, every one had chipped in a quarter to fill the tank. We were the last ones out of the building and as we were loading our friendly DJ drove away. I then backed over a rock poking a hole in the gas tank, I called Dad. Dad made 4 trips to get all those kids home, just before sunrise he came back for my best friend and I with a chain. We towed the car home, the next morning all he said was you'd better fix that tank. It's been 44 years and I'm still excepting the other shoe to drop.

I commuted to collage, 30 miles each way, five times a week. I dated two girls 150 miles apart, for 6 years. I traveled. In the six months Brenda and I were engaged one of us traveled 60 to 80 miles each way almost every night. How different life would have been with out freedom of movement.

Brenda and I continued to travel. She bought me an airplane, I learned to fly. We got a camper trailer when the kids were young. We parked it next to my horse trailer and our boat trailer. My first partner had two planes, our ability and willingness to travel made us a very valuable two some. My real estate has taken me from all over Michigan, south to Florida, west to Texas, Nevada and California.

I've had some very interesting cars over the years, but what I remember is what I did with them and with who. Where are people today going to build such memories? Where are they going to learn independence? Where are they going to learn responsibility? How are they going to take advantage of opportunity, if it's to far to walk? Are all those electronic pen-pals to remain unmet? Is the incredible beauty of Northen Michigan or Lake Tahoe to remain unseen. Are campers to be relegate to the very rich. Little cars can't tow trailers, are hobbies and sports to be restricted to what will fit in a small car? Are distant jobs to be restricted to a very select few. Is the wonder of flight to be limited to commercial planes? Is the pure pleasure of time on the water to be restricted to sail boaters?

Are we to become Europe? Or maybe Japan? Are we to become totally urbanized? Are we to live like rats in a maze? Are we to give up freedom of movement? Are we to accept a lesser life style? Is lack of free movement any different than being surrounded by chain-link and concertina wire? Are our Grandchildren to ever know the freedom we experienced? Are we to be ashamed for enjoying life?

Bill

William J Archambault Jr

Real Estate Gurus Doxology

William J Archambault Jr (The Real Estate Investment Institute ) — Wed, 12 Nov 2008 07:43:37 -0600

Praise tenants from whom all blessings flow;

Praise tenants all landlords here gathered;

Praise tenants above free loading in-laws;

Praise father, mother, and six screaming brats.

From all that dwell in houses of mine;

Let my guru's praise a-rise;

Let my cheap decorator's name be sung;

Through every land in every tongue.

Eternal are thy monthly tidings;

And truth eternal it is thy poverty;

Thy praise shall sound from month to month;

Till rents shall rise beyond thy ability;

At which time I'll evict thee.

The praise tenants above home buyers;

Initial praise cause fortunes to arise;

Then praise thy tenants forever more;

Sing of rents rising in the sky and fees acuminating.

Praise tenants from whom all blessings flow;

Praise tenants all landlords here be-low;

Praise tenants above free loading in-laws;

Praise father, mother, and six screaming brats.

Amen!

Bill

William J Archambault Jr

The Real Estate Investment Institue

Pity The Pacifist

William J Archambault Jr (The Real Estate Investment Institute ) — Tue, 11 Nov 2008 06:03:55 -0600

Today is set a side to honor the veterans, it is also a good day to pity the pacifist.

Pacifist cower in fear, hoping against all reason that the bullies leave them and their's alone.

Pacifist have nothing so important, no passion, no belief worth dying for. Yet surely they will die many times before they're dead.

Pacifist have no belief, no one, no spouse, no child worth fighting for.

Pacifist incite violence, encourage war, enable despots, and depend upon the selflessness of those they despise for their continued existence.

Pacifist suffer from a mental defect, no matter how bright, no matter how educated, they fail to learn from history and nature.

Pity the pacifist, for they are in deed contemptible.

Honor the Veterans

, for while they fear, they never cower. Some have been beaten but never broken.

Honor the Veterans,

they know what's important, they know passion, they are comforted by their beliefs! Veterans die, but once.
Honor the Veterans,
they know love and devotion. Veterans love totally, with a passion that makes their love ones, their faith, and their country more important than themselves!
Honor the Veterans,
they abhor violence, and loath war, but draw a line in the sand, announcing they will be subject to no despot, no bullies, no tyrants and they will personally defend themselves, their's, and your's!

Honor the Veterans,

they know from history and nature, only the strong survive. Strength encourages peace. Once broken only strength can reinstate peace!

Honor the Veterans,

everything you have or hope to have, every aspiration, every passion is your's because Veterans fought and died to persevere your rights.

Semper Fidelis,

Bill

PS: Let us not forget those Veterans who while conscious objectors, still knew the passion and risk their lives as medics, unarmed, protected only by GI khaki and their faith.

Let us not forget:

I pledge allegiance to the Flag
of the United States of America,
and to the Republic for which it stands:
one Nation under God, indivisible,
With Liberty and Justice for all.

Semper Fi / Today Is The 233 Birthday Of The Marine Corps

William J Archambault Jr (The Real Estate Investment Institute ) — Mon, 10 Nov 2008 12:21:16 -0600

Today is the 233 birthday of the United States Marine Corps!

The smallest of the military services, and the least understood, the Marines exemplify service to God and Country. Traditionally first to fight, the Marines protect our sailors, our embassies, our very way of life, and it's said the streets of Heaven.

There is no greater patriot, no greater symbol of all that's good and great with America than the men and women of the United States Marines!

I'm honored to speak from first hand knowledge.

Semper Fi!

Bill

Taking Control Of Your Destiny

William J Archambault Jr (The Real Estate Investment Institute ) — Mon, 03 Nov 2008 12:44:47 -0600

I've read that 401k's have lost 20% in the last year. Wow! I wipe my bough and think, We're self employed small businesspeople, we don't have 401k's we've got IRA's. We're safe! It's amassing, how comfortably reassuring, being ignorantly uninformed is!

Most professionally managed IRA's are invested in the same faltering stocks and bonds as the 401k's!

Most professionally managed IRA's are losing just like the 401k's!

Most professionally managed IRA's are a placebo, allowing you to feel you to feel the same misguided comfort that your salaried brethren so foolishly depend on.

It's time for the eligible to take control of their destiny and switch to self-directed IRS's!

It's time for real, real estate people to get into real estate! It's time to invest! REO properties are priced so low compared to their penitential as rentals that you can't afford not buy.

We don't yet know if we've reached the bottom of the market, but can you afford to wait?

Investment rentals purchased with an eye on positive cash flow will build your portfolio regardless of where you buy. Since these are long term investments if values continue to drop, with in reason, so what? You're going to hold them until the value returns. With many good, very desirable properties now being sold for half or less than their recent high values it's likely they'll appreciate soon. In the mean time that positive cash flow, and the amortization continues to accrued tax deferred!

But, you say! What if they never go up, or continue to depreciate? Again I ask so what? These are long term investments, if they are never again worth what you pay for them, thanks to the amortization the property will eventually be free and clear! But, I can't wait 30 years to retire! Again, so what? Have your loan amortized over 25, 20, 15, 10, or even 5 years.

But! Some always have a "but," if I invest I need can't afford to put all of the cash flow into my retirement account! So customize your investment entity, your IRA can be a partner in an LLC. Your investment real estate should be titled to an LLC, owned by a well planed trust, anyway.

You have two choices: sit around and vegetate while complaining about how bad thing are, or you can rush to work each morning knowing there has never been nor is there likely to be a bigger opportunity that what we have now!

Bill

William J archambault Jr

The Real Estate Investment Institute

Pragmatic Voting / Again Damn It

William J Archambault Jr (The Real Estate Investment Institute ) — Mon, 27 Oct 2008 13:11:12 -0500

Pragmatic: in it's simplest form: "dealing with things in a practical rather than theoretical way" according to my WordPerfect 12's built in dictionary.

It's time to vote and again there is no good choice. No clear cut convective. No one promoting the American Dream. No one that believes in our Constitution. No one that excepts our children and Grandchildren to be better off than their parents and Grandparents. No one that puts principle above personal power. No one that holds good over evil.

No one that understands that compromises, enable evil and are there for evil themselves. No one that understands that racism is racism regardless of who hates who.

Again the logical voter has to make a practical choice.

That's a lot to except in a society that has allowed hate to replace logic, under-educated ideologues to teach our children, and demigods to run our government.

The only sure thing is that as a society we'll get what we detersive! If you don't vote, you'll deserve what you get.

Bill

If A Tree Falls

William J Archambault Jr (The Real Estate Investment Institute ) — Wed, 08 Oct 2008 11:36:18 -0500

If a tree falls in the forest

and no one hears it

did it make a sound?

If you post a blog

and no one reads it

did you express yourself?

If 50 will get you 200

and 1 get you 25

did you improve your self?

If written babble equates

with contemplative thought

does it really matter?

If you sincerely believe

if you truly care

if you have something to say

do you share?

If you blog for the masses

if you regurgitate the PC

do you matter?

Bill

Networking Allows The Impossible

William J Archambault Jr (The Real Estate Investment Institute ) — Tue, 07 Oct 2008 16:09:41 -0500

Responding to More Thoughts On Networking my friend Bill Roberts wrote: "That was the same methodology we used as Exchangors back in the '70s. Most of the younger people in this business get very defensive when you ask questions about their clients. I guess they don't understand that in a "normal" market the property isn't going to sell itself. A little "creativity" is called for if we want results."

He's right, that's where and when I was taught, five days a month networking, one on one and in selected groups

Networking one on one, or in groups allows you to do things that you could never do on the MLS. Back in the 70's commercial brokers faced the same kind of fluctuating unstable market that residential salesmen are facing today. Values and asking prices often had little or nothing in common. Traditionally, you determined the value of a property, listed it close to that and waited for a buyer. Often waited and waited and waited and waited. Waiting was all right for some. Many even list at outrageous prices and simply wait for their ship to come in.

Today home owners find themselves waiting and waiting, not only has their ship not come in, it sank at sea!

What those commercial brokers did together, was to over look asking price and look at the seller's problem. No one really wants cash, they want the benefits cash can get them. We forget this! We also forget we're in the people business! Marketing houses has gotten to be like selling new cars, you want a red Ford there are 57 of them on role 93 section G, go get one.

At a time when asking prices, values, and mortgage balances, again have little in common, it's time to take another look at solving the people problem.

What I learned so long ago, was to do the impossible. They taught me how to sell a two percent return!

So how do you sell a two percent return? You find someone making one percent and double his money. Today like then, you need to solve the people problem!

So what does all this have to do with professional networking? You can't explain your clients problems on the MLS, at least you shouldn't! So networking with other real estate people allows you to get help. Solving the problem requires two people and having them both in your own office is even less likely than selling your own listing!

I hope to see you at the Barcamp in Houston October 22!

Bill

William J Archambault Jr

The Real Estate Investment Institute

More Thoughts On Networking

William J Archambault Jr (The Real Estate Investment Institute ) — Mon, 06 Oct 2008 12:04:49 -0500

There are things you can do at a networking session that simply can't be done on the MLS or in an open forum. Most of this I published 3 years ago:

Back in 1974 I went to my first meeting with Chapter Number One of the Farm and Land Institute a division of the NAR, now called the REALTORS® Land Institute. At that time they were the dominant commercial arm of the NAR, Unlike the better known and better educated CCIMs these were people, people. They taught me was you don't need to talk about the property, leave that to the CCIM's!

Yes, I did say that you don't need to talk about the property!

At FLI marketing sessions we rarely talked about the property we talked about solving the people problem! It's not that we don't need to know about the property we do, but facts are facts, put them in writing. Print a flyer, a hand out sheet, a copy of the MLS print out. Don't except us to take sufficient notes about the property to sell it to our investors when we get to a phone or back home!

Here we are thirty-four years later and that's still great advice, but what does it have to do with networking?

Networking gives us access to people like those old FLI brokers who can help, people with hard earned experience, people that will with-in reason share freely. Give them the facts about the property in writing, so that they can have them in hand while discussing your problem. When talking we're going to look for solutions which more often than not have much more to do with the buyer and seller than the property.

If you're looking for help, be prepared to discuss both of your clients needs wants, desires, and assets, because that's where the solution lies.

One more thing remember that "within reason" there is a point after which we should be paid.

Often, problems really only needed an idea or a simple referral.

Networking allows you to solve the people problem!

Bill

William J Archambault Jr

The Real Estate Investment Institute

Isn't It Convenient

William J Archambault Jr (The Real Estate Investment Institute ) — Mon, 06 Oct 2008 10:23:38 -0500

Yes, it' convenient that every one has determined that besides the evil bankers, it's the poor who are causing our current financial debacle!

The poor, poor, poor, poor! Where are these right wing talk show host living? I've seen a lot of foreclosures in the last few weeks in both Las Vegas and Houston South to what remains of Galveston. With a few notable exceptions these REO's were never owned by the poor! Working middle class yes, but not the poor.

But, I keep hearing these talking heads spouting about, lying poor buying houses they should never have been allowed in, except as domestics! I can understand the "left" they haven't told the truth since Roosevelt The Second. It's the "right" that concerns me, these fools must never have seen an REO! They must be wearing blinders!

Even using the infamous "Option Arm's" negative amortization these homes were never owned by the poor.

No one seems concerned about facts. No one questions the explanation "du jour!" There are problems with the CRA, Community Reinvestment Act, but it's not our current problem! Simply put the majority of foreclosures and the REO's are not in areas involved in the act.

Bill

William J Archambault Jr

The Real Estate Investment Institute

My Ultra-ego Avatar

William J Archambault Jr (The Real Estate Investment Institute ) — Fri, 03 Oct 2008 13:29:27 -0500

Some of you have ask about the Avatar that I've been using to promote the Upcoming Barcamp in Houston, October 22. I'm using an online subscription service called SitePal. You can find it at: https://vhost.oddcast.com/admin/index.php?q=login

I'm editing the sound through Audacity which is the free shareware program I use to repair my pod-cast at: http://www.realestatesage.info You can get Audacity at: http://audacity.sourceforge.net/download/

I've been trying to make my bloggs look more interesting and it was either a new photo of me or this talking caricature. I'm open to suggestions as long as they're anatomically possible.

Those of you without speakers or head-phones will never know what you're missing!

Have fun with the program!

Bill

William J Archambault Jr

The Real Estate Investment Institute

How Not To Lose A Million Dollars In Real Estate

William J Archambault Jr (The Real Estate Investment Institute ) — Tue, 23 Sep 2008 22:58:23 -0500

I first published this in 2005, despite everything it's very relevant today. Don't let the changing nature of the current market distract you,! Be careful of hucksters with new words IE: short sales, REO's and real estate auctions confuse you. The only things that have changed are the prices (there better), the opportunities (there is more opportunity today than there has been in our life time), the increasing masses of uninformed and deliberate misinformation. It's a buyer's market and a great time to buy! Seller's it's a great time to be a buyer, sorry.

How Not To Lose A Million Dollars In Real Estate

I saw an article "How to lose a million dollars in real estate" what a great title! Then I saw the author Verna Jones-Cox (real estate short sale expert) no wonder it had a great title. I met Verna about two years ago and I would have expected no less. So with my apologizes to Verna, your title was
to eye catching not to play on.

My first book "One House At A Time / Finding and Buying Single Family Rentals" is directed at real estate beginners and burnt out students of TV real estate gurus, the very people that can't afford to lose money. These are also the very people that are most likely to lose money, especially when miss lead as so many are.

"One House At A Time" is subtitle "Finding And Buying Single Family Rentals" the key words are "Single Family" most people should stick to what they know! Single family homes whether rentals or flips are just like the houses most of us have lived in all of our lives. Maintenance, improvements and day to day upkeep are the same as you've been doing ever since your mother first noticed you were big enough to push a broom. Buying and selling them is just like your own home.

New real estate investors have enough to learn, single family rentals are simple to maintain (just like your home), but you have to deal with tenants, rental laws, and contracts. Flips require different decisions retail or wholesale, paint or paper, landscape or simply clean, etc . . . Sticking to what you're familiar with will ease the learning curve and most new investors will make money, if only because it hard to make a big mistake!

Rule # 1. To make money expand upon what you know!

On the other hand even if a person has lived in an apartment for 30 or 40 years, walked on land, shopped in stores and worked in an office every day of their life there is very little relevant experience to owning and managing them! I attended a meeting of would-be real estate investors, a group I knew well. Their Guru (with little experience but more money that his audience) spent more than two hours urging the audience to liquidate their single family homes to buy into commercial projects! It wasn't until the very end that we learned he was pimping a $5,000.00 week end book camp on commercial investing! Most of these peoplehad not yet mastered single family rentals! Some didn't yet have a home of their own. The only thing this program was offering was a chance to lose $5,000.00.

Rule # 2. Avoid pimps!

Most of you reading this don't yet have a million dollars! Your losses will accrue from inaction, delay, and procrastination. In today's real estate market most of you will not lose a million dollars. You will lose several million dollars!

Rule # 3. Buy houses! Now!

"NO!" That's the advice most often given if you foolishly ask anyone if you should do anything. There is never a risk telling you "NO." If you ask a friend should I and he says "yes" and you fail he lost a friend! If a friend says no and you succeeded anyway "you got lucky" everyone wins. If you lose, there's great bounding in commiseration, and great satisfaction in "I told you so!" You'll get the same "NO!" from your attorney or CPA, but they will send you a bill for bad advice. Strangers will say "NO!" because they don't want you to succeed. Family will say "NO!" because they don't want you to get hurt.

Rule # 4. Avoid third party advice.

Some people will advise you to "do it." They're the ones who get paid! We all know what you call someone who "does it" for money.

Getting paid is good, I'm a mortgage broker I get paid when you "do it" just like your real estate agent. I'm also a Guru. Be careful, good advice is worth paying for, but whores are whores!

Rule # 5. Avoid Whores!

Bill

William J Archambault Jr

©WJA/REII 2005/2008

Real Estate Development 101

William J Archambault Jr (The Real Estate Investment Institute ) — Sat, 06 Sep 2008 22:55:54 -0500

So you want to be a real estate developer!

Are you out of your mind?

Seriously why? Why do you want to develop real estate?

There are lots of good reasons to get involved in real estate development, some even make sense.

There is no more important question, before you commit several months to several years of your time and large amounts of your or your clients money than: why?

What are your goals? Many look at Donald Trumph and realize they are as bright or brighter and want to make a billion or two, or maybe a trophy spouse or two. Real estate development is like baseball, just step up to the plate and swing at the opportunities! Unlike baseball your hits have to come at the beginning! Only the superstars, the Trumphs can afford mistakes!

Lets consider the most common reasons for getting involved in development, regardless of weather it's for yourself or a client:.

Vanity, ego, conceit, self gratification (Yes, self abuse, financial masturbation.) Or maybe you just want your name on a building, subdivision (You get to name the streets, too.), factory, a shopping center, or two. Actually, if you can afford it, vanity is not that bad a reason to get started in real estate development, a name everyone sees everyday is great advertising.

Vanity projects should not be confused with personal use projects.

Personal use projects are the reason most people get involved in development. A custom office building, shop, factory, retail store or even a home are the most common developments undertaken by beginners. These projects are not only the most common first projects they are the most common final project!

Need! Recognizing a need and filling it is the best and most profitable reason for developing real estate.

Many developers start with a piece of property they or their client already owns. Whether your trying to produce a cash flow or just make a property more saleable careful development can often turn a sows ear into a silk purse. This type of development can often be as simple as subdividing a lot. (Not that there is anything simple about subdividing!) This type of project leads to more mistakes than other projects because it reverses the order of development. Instead of recognizing a need and finding suitable real estate to fill the need. This type of projects starts with the real estate and looks for a need to fill, this leads to more compromising than would normally occur.

Taxes! Not the incentive it use to be, but still a major reason to develop real estate. When we had huge marginal tax brackets and accelerated deprecation new construction, especially new rental housing was almost mandatory for high income investors. Taxes are still a good reason to develop real estate, but today the projects cash flow must support it and make a profit to make sense. Today taxes, most often tax abatement can provided great incentives for owner occupied development.

"Build to suit." We've all seen the signs. "Will Build To Suit" most often on partially built shopping centers. Building to suit is a great way to get into real estate development, with little risk and someone else's credit. Lenders will often be more interested in your tenant's credit than your own, and will demand an assignment of rents as part of the security. How would you or your client like to own a Post Office, DMV Office, State and Federal governments agencies request bids for their real estate needs all the time. You may not be able to build on main street in your own town, but who cares? With a long term (Frequently 40 year) triple net lease, it can be anywhere! leases with little or no management provide all the benefits.

Speculation! Speculative development comes in two forms, for sale and for rent, and hundreds of sub-forms. Spec-homes for sale are the most common form of single family development. Apartment development is speculating for rent. The biggest difference between for sale and for rent development is the taxes on profits. Profits on the sale of new properties will normally be at ordinary income rates, it is after all inventory. New rentals on the other hand when put to use and held long enough normally will qualify for capital gains and/or 1031 tax deafened exchanges.

Shopping centers with a major anchor. combine the build to suit, for the anchor, with speculative rentals surrounding it.

Being practical! I got into development because there was no money available to satisfy my clients needs with existing projects. I never take no for an answer, I believe those that say it can't be done are right, they can't do it! I never let others, self imposed limitations restrict me! Development can be a practical way to solve your or your clients problems.

Why do you want to develop real estate?

What ever the reason you need to define it, establish your goal, and start learning, then get to work.

Bill

William J Archambault Jr

The Real Estate Investment Institute

©WJA & REII

NOTE: This is a series that I intend to publish. Unless your comments state other wise I will assume permission to included them with your name with the publication.

Real Estate Devolvement 102 will be about land control for development.

One final thought, my real estate development projects have provided more personal satisfaction than any other real estate I've done.

Why?

Trekking / Further Adventures In Life

William J Archambault Jr (The Real Estate Investment Institute ) — Sun, 24 Aug 2008 12:47:17 -0500

Time is getting short! Very short! No, no, no Brenda and I are fine, but some time in the next 24 hours we're leaving permanently for Texas. Some where between Conroe and Galveston. I'm not being evasive we've been looking at houses in a wide area. Like all good treks we have only the vaguest of plans.

We've been talking about this for several years, but business and family kept us in Las Vegas. In early 2005 we sold our condo and went on tour for two months among other things looking at homes in Galveston. Weather couldn't have been worse, or so we thought, that "big one" hit shortly after we left. Had it occurred 10 days earlier we'd have been their, had it occurred 14 days earlier we'd have been in New Orleans! Business required us back in Las Vegas just in time!

Family and friends think we are out of our minds, but we're originally from Michigan, we've survived blizzards that had to be experienced to be believed! That's not to mention tornados. Before coming to Nevada, we spent a decade in west Texas one eighteen months. We had a very large mobile home park and you guessed it not once but three times tornados hit the park, It also flooded several times, they hadn't had measurable rain in years, it also snowed, first time in 30 years. We're not going to worry about the weather just prepare for it!

Long term boaters we'd like to get 5 to 10 years ocean experience before we retire. We have additional treks planed for the future. So anywhere near the gulf is good. It helps that Amy lives in League City and practices in Houston.

We don't know what we're going to do yet. Brenda has some offers and I'll continue with the Institute. It's been 23 years since I qualified as a Texas real estate broker, I've never done mortgages in TX, but a mortgage is almost a mortgage. I'm always looking for opportunities to speak and teach. I'm revising "Get The Money" to "Get The Money 2009" and ‘09 will be here fast! I might finish "Counting On Your Fingers" that was to be my first book, now it will be may be 14.

So I won't be answering the e-mail from 8-25 to 8-29. My phone 702-334-0174 will remain the same until 8-29 or 30, then I'll post the new number.

If you see a gas guzzling SUV with two people and a cat, towing a small trailer all with Nevada plates be kind, wave hello and pass us carefully. I'll be driving and thinking about my next bit of spontaneous, instantaneous, brilliance for my next blog.

Talk to you'al from Texas.

Bill and Brenda

Convoluted Thinking

William J Archambault Jr (The Real Estate Investment Institute ) — Thu, 21 Aug 2008 16:20:15 -0500

North Carolina has ban Yield Spread Premium, YSP!

According to an article in Originator Times, http://originatortimes.com/content/templates/standard.aspx?articleid=3438&zoneid=1 Today, North Carolina, has become the first state to ban YSP's. Thumbing there noses at consumers and potential home owners, while telling them they are protecting them!

Eliminating YSP will effectively force small mortgage companies acting as mortgage brokers out of business. It force mortgage rates and cost up due to lack of competition and lack of disclosure.

The larger mortgage originators will simply operate as mortgage banks. The mortgage bankers will be able to charge higher fees, due to lack of competition and they will receive the lions share or the remaining business.

That individuals could even propose such ideas is beyond belief! That the majority of North Carolina's legislators went along with it defies expiations!

I'm possibly a bit naive. In a country that accepts atrocities, as long as its for "their own good" it seems any thing is possible. Janet Reno and the FBI incinerating 96 men, women, and children to protect them comes to mind. Or may be executing a woman holding a dangerous baby to her chest while hiding behind an open door. I guesses that would be home owners and mortgage brokers should be glad that they are being protected, and surviving!

Harsh? Extreme? Politically Incorrect? You better believe it! If you've spent your life financing and selling real estate, helping people obtain and seceded with the "American Dream" there is a target on your back. We're going to see more of this non-sense in the next four years no matter who we elect! If we elect the "perverted compromising suito conservatives" it's going to be bad enough! If we elect those that hide their hatred of the "American Dream" and all it implies, God help us, and don't gather in large combustible buildings.

Bill

William J Archambault Jr

Congress in there wisdom

William J Archambault Jr (The Real Estate Investment Institute ) — Wed, 20 Aug 2008 18:45:23 -0500

Congress in there wisdom has seen fit to bring an end to DPA

, Down Payment Assistance as we know and hate it. For certain there must be a better way to put people into homes with little or no money than the current program of Non-profit fiascos.

Please consider the following, it was originally my comment on a friend's rant about the current slight of hand necessary to do private DPA.

The problem is with the FHA/HUD bureaucrats,

their charter doesn't call for a no down payment program so they came up with this DPA nonsense! To get around the rules.

If FHA/HUD were honest they would either offer no money down or direct seller help. But, no by playing this game they can claim they had a down payment from a disinterested third party. If they were honest, think how much easer it would be if to finance a $100,000 purchase it simply required a $103,333 appraisal!

The problem is not with the PDA's, they saw a need and helped a lot of good people get in to and succeed with their own homes. They are often though of as "charities" but they're not, never have been! They are "non-profits" which has to do with their management and tax structure. Non-profits are normally mistaken to mean charity or low cost neither is necessarily true, their employees and directors are often extremely over paid! Twelve years ago Elizabeth Dole was making over $3,000,000.00 as head of that "non-profit!"

Bill

William J Archambault Jr

The Real Estate Investment Institute

Allowed, Allowable, Not-Allowed, Ambiguity, To Thine Own Self Be True

William J Archambault Jr (The Real Estate Investment Institute ) — Tue, 19 Aug 2008 18:05:05 -0500

Allowed: Following the letter of a law or regulation. The safest of mistakes for the uneducated and/or timid.

Allowable: Stretching the law or regulations, based on known case law and common practice. Most often a better approach, but requires an extensive knowledge of the subject.

Not-Allowed: Breaking the law or regulation. It matters not your intent, ignorance is no excuse.

I've included not-allowed only because it is so easy for some to pass from "Allowable" to "Not-Allowed" through foolishness, ignorance, stupidly, or larcenous intent.

Ambiguity: A total lack or statutory or moral guidance.

I wish to discuss dealing with the grey areas between strict compliancy with the "Allowed" and using the "Allowable" and beyond both in dealing with "Ambiguity!"

With out going into a long dissortation of my own let me quote an old tormentor, William Shakespeare.

When in doubt: "To Thine Own Self Be True..." In other words, do what you believe is right, so long as you avoid the "Not-Allowed" Whether going from "Allowed" to "Allowable" or in the face of "Ambiguity" always do what you think is right! "And it must follow, as the night the day, Thou can not then be false to any man."

"Boldness be my friend." But, "Mind your speech a little lest you should mar your fortunes."

"Be not afraid of greatness: some are born great, some achieve greatness, and some have greatness thrust upon them."

"No legacy is so rich as honesty."

If I some time appear harsh please remember: "...oftentimes excusing of a fault doth make the fault the worse by the excuse."

"If it be a sin to covet honor, I am the most offending soul."

For certainly: "The golden age is before us, not behind us." "What is past is prologue." "What's done can't be undone."

Bill

William J Archambault Jr

The Real Estate Investment Institute

With a little help from William Shakespeare

and http://www.brainyquote.com/

Are Old Words Old Fashion?

William J Archambault Jr (The Real Estate Investment Institute ) — Fri, 15 Aug 2008 13:42:59 -0500

I keep telling people that I'm not that old,just delapidate. But, lately I've begun to question my age. It's not a health thing, in fact I've been feeling pretty good, all things considered. My problem is not my age, chronologically or physically, my problem is my vocabulary! Most of our words are old if not ancient, so it's not the words. My problem is that my meanings have become old fashion.

I'm finding that my expectations are exceeding my grasps. I love dealing with people especially when dealing in real estate and mortgages. I lust for the deal! I start each day with great expectations and a firm belief in people! I believe we find what we seek and I seek the best.

I've been actively dealing, long distant with a lot of real estate agents in the last few weeks. While it's easy to find people who loudly profess the same things I so profoundly believe in, it's the same words, but not with the meanings I grew up with!

Words like:

Service,

Common Courtesy,

Knowledge,

Professionalism,

Ethics,

Client,

Customer,

Agent,

Integrity,

Fiduciary!

May be the confusion is to be expected, from people that grew up with leaders that questioned the meaning of "is" and limited the meaning of "sex!" There was a time when no one questioned "is" and while we couldn't mention "sex" with out blushing we certainly knew what it meant.

You may add to the list, or you could define selected words for us.

Do these words still have meanings?

What should we expect when we see them used to promote an individual or company?

Is it fair for some one who grew up in the fifties and sixties to except the meaning to be the same as when he learned them?

Bill

William J Archambault Jr

The Real Estate Investment Institute

Is what this kid learned now obsolete?

HELOC Insecurity

William J Archambault Jr (The Real Estate Investment Institute ) — Wed, 06 Aug 2008 10:23:12 -0500

Checking the Drudge Report http://www.drudgereport.com/ this morning I came across an article on Morgan Stanley freezing thousands of Home Equity Lines Of Credit, HELOC's. http://www.bloomberg.com/apps/news?pid=20601087&sid=afQ0PVYvOgzI&refer=home

Home owners still owe the outstanding balance, but they will no longer be able to use the open ended feature to draw more useable cash from the loan. For most this is only an expensive inconvenience. For some a major financial setback. For those fools that strictly follow the "money merge" philosophy face financial disaster!

I've been a long time advocate of Lines Of Credit, both secured and unsecured and remain so. When the HELOC's came along opening the LOC's to the average person I became a major advocate of these useful tools for my real estate investment students.

But, the problem with HELOC's or any other loan is depending on it! Until you have the cash in hand even an open LOC of any kind, secured, unsecured, or even your credit cards are subject to many problems beyond your control! Morgan Stanley's freezing draws on HELOC's has nothing to do with the individual credit or collateral! This is just the latest freeze!

Bill

William J Archambault Jr

The Real Estate Investment Institute