passport and ssn card are in top drawer of FireKing fireproof file cabinet in Shamrock backroom.
5-july-2012 I wrote voter registration number (voter ID ) on a piece of paper and put it with my passport and SSN card. I needed it for TTV and called election commission to get it.
6-july-2012 Also copy of concealed carry permit renewal application which I mailed back to Tenn Dept of Safety today. Current permit expires 22-sept-2012.
Wednesday, December 28, 2011
Monday, December 12, 2011
Richard Scarbrough seminar
Sat 10-dec-2011 "Building Your Team" seminar with Richard Scarbrough.
MIG. Memphis Investors Group.
Don't lease to people with motorcycles or lawyers. If you want a female, give discount to school of nursing students.Richard concentrates his properties in Bartlett, Germantown, and Collierville.
4 Elements of cashflow:
1 monthly cashflow
2 tax savings
3 principal paydown
4 (soon) appreciation
A house is the only form a real estate that is sold RETAIL. All other real estate is sold on a cashflow basis to investors. Many end user house buyers, however, don't buy on cashflow and buy for many reasons not related to economics.
Banks figure:
10% management
10% repairs and maintenance
10% vacancies
So banks will lend less on your rental house than you might imagine because they are going to mark your rent down to 70% of gross for calculating the amount of income you will receive on rental house.
Your team should consist of:
1 system of getting leads on houses to buy (bird dog fees paid to person who tells you about a house, checking chandler reports or court house retrieval, hire and agent to look for you)
2 system of finding buyers or another way to dispose of property (MIG, advertising, wholesale it, rent it out, etc)
3 system of finding financing - hard money lender, bank, friend who wants to invest in real estate
Banks: Are they turning money into the FED each night? If they are that means that they have too much money and they will want to make loans. But tellers and even some VPs won't know what you are talking about if you ask them whether their bank is turning money into the Fed each night. You have to find a knowledgeable insider.
You want to use a REAL lender. There are 2 aspects to real lenders:
1 Real lenders lend their own money. Many banks get the money which they lend from other banks or other sources. You need to skip these banks and go directly to the sources that they go to.
2 Underwriter should be local. Don't use a bank where decision maker is out of town. You might want to sit down with underwriter face to face and make your case.
You want a plumber and HVAC and electrical guy who are licensed but who don't have an office and a fleet of trucks.
HVAC -- Al Scarbrough (Richard's brother) 834-3555
Electrican - Scott Banson 274-7936
Painting - Mid South Painting (in millington) 872-3517 Robert George
Roofer - Harold Hiatt 550-6212
Closing attorney - Doug Beatty 680-0888
Mortgage guy - Herb Hyman Iberia bank 759-4800
Richard said that Greenway Home Services was good.
Attorneys make money on closings 4 different ways:
1 doc prep
2 closing fees
3 attorney fees
4 title fees
Farrell Calhoun makes about 3 standard colors that they make in 5000 gallon batches. Use these colors. Bone white is one for walls. Bright white is good trim color.
Tenant's income should be 3 times the amount of his rent payment.
Use large type (like 16 point) on business cards and other stuff so people over 40 can read it without glasses.
Home Warrnty companies can be good. Don't get the standard plan, get the upscale plan. When they come out to repair some problem there will be some ancillary thing that needs to be repaired also - the upgrade plan will cover this too, the standard plan won't. Get the tenant to pay the deductible. Since he will have to pay that amount, he will not call nearly as often for repairs. Richard said plans are about $500 per house per year. Find out what the cash-out value of a problem is from the warranty company. If you can fix it for that or less, then do it yourself.
Other people in class:
Tom Elledge Jr 755-4425 (cell 849-8888) house investor in Cordova area. Seems like nice guy - knows a lot.
MIG. Memphis Investors Group.
Don't lease to people with motorcycles or lawyers. If you want a female, give discount to school of nursing students.Richard concentrates his properties in Bartlett, Germantown, and Collierville.
4 Elements of cashflow:
1 monthly cashflow
2 tax savings
3 principal paydown
4 (soon) appreciation
A house is the only form a real estate that is sold RETAIL. All other real estate is sold on a cashflow basis to investors. Many end user house buyers, however, don't buy on cashflow and buy for many reasons not related to economics.
Banks figure:
10% management
10% repairs and maintenance
10% vacancies
So banks will lend less on your rental house than you might imagine because they are going to mark your rent down to 70% of gross for calculating the amount of income you will receive on rental house.
Your team should consist of:
1 system of getting leads on houses to buy (bird dog fees paid to person who tells you about a house, checking chandler reports or court house retrieval, hire and agent to look for you)
2 system of finding buyers or another way to dispose of property (MIG, advertising, wholesale it, rent it out, etc)
3 system of finding financing - hard money lender, bank, friend who wants to invest in real estate
Banks: Are they turning money into the FED each night? If they are that means that they have too much money and they will want to make loans. But tellers and even some VPs won't know what you are talking about if you ask them whether their bank is turning money into the Fed each night. You have to find a knowledgeable insider.
You want to use a REAL lender. There are 2 aspects to real lenders:
1 Real lenders lend their own money. Many banks get the money which they lend from other banks or other sources. You need to skip these banks and go directly to the sources that they go to.
2 Underwriter should be local. Don't use a bank where decision maker is out of town. You might want to sit down with underwriter face to face and make your case.
You want a plumber and HVAC and electrical guy who are licensed but who don't have an office and a fleet of trucks.
HVAC -- Al Scarbrough (Richard's brother) 834-3555
Electrican - Scott Banson 274-7936
Painting - Mid South Painting (in millington) 872-3517 Robert George
Roofer - Harold Hiatt 550-6212
Closing attorney - Doug Beatty 680-0888
Mortgage guy - Herb Hyman Iberia bank 759-4800
Richard said that Greenway Home Services was good.
Attorneys make money on closings 4 different ways:
1 doc prep
2 closing fees
3 attorney fees
4 title fees
Farrell Calhoun makes about 3 standard colors that they make in 5000 gallon batches. Use these colors. Bone white is one for walls. Bright white is good trim color.
Tenant's income should be 3 times the amount of his rent payment.
Use large type (like 16 point) on business cards and other stuff so people over 40 can read it without glasses.
Home Warrnty companies can be good. Don't get the standard plan, get the upscale plan. When they come out to repair some problem there will be some ancillary thing that needs to be repaired also - the upgrade plan will cover this too, the standard plan won't. Get the tenant to pay the deductible. Since he will have to pay that amount, he will not call nearly as often for repairs. Richard said plans are about $500 per house per year. Find out what the cash-out value of a problem is from the warranty company. If you can fix it for that or less, then do it yourself.
Other people in class:
Tom Elledge Jr 755-4425 (cell 849-8888) house investor in Cordova area. Seems like nice guy - knows a lot.
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