Nov_F1.pub Records 1 - 10

Metropolitan Real Estate Investors Association
7+(0(752
Volume 2 Issue XI
November 2003
MREIA is a member of National Real Estate Investors Association
Special Points of
Interest
x Education w/
Vacation
OUROUR
NEXT
NEXT
GENERAL
GENERAL
MEETING:
MEETING:
MONDAY,
MONDAY,
NOVEMBER
MAY 19th 17th
PRE-MEETIN GS BEGIN AT 6:30 pm.
Discussion groups for beginners and advanced members. Bring your questions!
x Spring 2004 Cruise
ANNOUNCEMENTS BEGIN AT 7:15pm.
Inside This Issue
Tell us if you are looking for a partner, money for a good deal, a tenant or a property
to buy or to sell. Vendor members will also explaining about their services/products.
Seminar on
Saturday
3
General Meeting: 7:30 p.m.
No Equity = Big
Bucks $$$$$
4
Our Featured National Speaker:
Dwan Bent-Twyford, Short Sale Specialist
Property
Management
6
Environmental
Problems ??
8
Real Estate
Education
11
Cruisin’...
12
Wholesale
Contract
Language
14
Upcoming
Events
16
Friends Helping Friends
How to Make Foreclosure Fortunes Through “Short Sales!”
Dwan Bent-Twyford learned the “foreclosure” business the old-fashioned way, by
knocking on doors. Her motivation to become an investor came out of sheer desperation.
She went through a divorce and found herself a single mom not wanting to raise her
child in daycare. Dwan needed a career that would allow her the freedom of working
from home and raising her daughter at the same time. Investing in foreclosures was the
perfect solution. She made $22,000 on her first deal and never looked back!
Now Dwan successfully handles every aspect of buying, rehabbing, marketing and financing
foreclosures and distressed properties. In a business dominated by men, this amazing woman
quickly learned how to apply her unique experience to create win-win situations when buying
property. Because so many folks asked, “how can I learn this business?” Dwan developed a
complete training series as well as a four day “boot camp.” She now enjoys traveling and
sharing her vast knowledge with new as well as seasoned investors. DON’T MISS THIS
INCREDIBLE PRESENTATION!
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Learn what it means to SHORT SALE a mortgage.
Learn the SIX STEPS to successful short sales.
Learn how one student got the bank to accept a $70,000 short sale.
Learn how another successful student got two properties in his first
week.
Learn who to call and what to say to get your short sales accepted.
Learn how to get your phone to ring off the hook with motivated sellers.
Learn inexpensive marketing techniques.
ALL THIS AND MORE!!!
MREIA MEMBERS
BECOME SUCCESSFUL
BECAUSE OF MEMBERS
LIKE YOU!
If you can help other
members and would like
to contribute your ideas
and experiences, please
feel free to contact your
Board Members and let
them know how you can
help.
General Membership Meeting
MREIA meets every third Monday of the month
at the Kenilworth Inn, just off Exit 138 of the
Garden State Parkway. The Inn’s billboard can
be seen as you approach the exit. We urge our
members and guests to come early, and meet
with the other members. Our Doors open at
6:30 pm, and the meetings begin promptly at
7:15 p.m.
Please bring your membership card with you, for
faster check in.
Annual Membership Dues are $125, including
spouse (plus an additional $35 for a secondary
membership). “Guests” pay $20, which will be
credited towards the annual dues if decided to
join at the conclusion of the meeting. For more
information, visit www.mreia.com.
Members are invited to remain at the conclusion
of the meeting, for an opportunity to share their
experiences with others, while making valuable
contacts for the future.
WELCOME
New & Renewing Members
I would like to take this time to welcome all new members. I would like to
thank all renewing members. It is your
membership and participation, which
makes “ US” strong.
Frank Barillari
President
Yo u r Bo ard Me m be rs
Board Position
President
Vice President
Secretary
Treasurer
Membership Chair
Editor/Ads
Web Design
Web Master
Past President
Legislative Liaison
Sergeant at Arms
Member at Large
Member Name
Frank Barillari
Dan Schwartz
Nick Zampetti
Bob Lee
Ginny Condello
Dan Schwartz
Vince Condello
Roger W. Faulds
Dave Corsi
Dave Corsi
Ron Dittman
Cindy Ziemba
Telephone
(732) 240-2050
(201) 791-4639
(201)343-8629
(908) 272-9491
(908) 454-1176
(201) 791-4639
(908) 454-1176
(732) 831-1879
(732) 923-1410
(732) 923-1410
(732) 257-3562
(732) 605-0237
Email Address
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
About MREIA
We are a not-for-profit real estate educational and motivational organization and a member of the National Real Estate Investors Association. The
Board of Directors and appointed officers are non-paid volunteers.
DISCLAIMER
We do not render legal, accounting, tax, investment or other professional services or either through the Metro or at general meetings. We
disclaim all liability for actions (or inactions) taken as a result of any communications between the Board of Directors, appointed officers and the
membership.
We do not officially endorse any product, project, person or organization. Before making any investment decision, you are urged to seek advice
from qualified and competent professionals and to use due diligence before using any product, services or ideas presented in the Metro or at
general meetings. At times the Board may take particular positions or points of view on matters regarding the real estate industry. Said positions
do not represent solicitations.
Our speakers are permitted to sell any products or services they may have to offer our members or guests.. The opinions expressed by the
speakers and writers do not necessarily reflect the opinions of the Board of Directors or appointed officers.
Volume 2 Issue XI
2 of 20
November, 2003
SATURDAY, NOVEMBER 22, 2003
An All Day Seminar Sponsored by MREIA
Featuring …. DWAN BENT-TWYFORD!
THE FORECLOSURE SHORT SALE
Where: Kenilworth Inn, Kenilworth, NJ
Cost:
Off Exit 138, GSP
MREIA & Other REIA Members………….$29.00 each
Non-Members………………………………..$49.00 each
Time:
8:00 a.m. to 4:00 p.m.
Further Info: (732) 240-2050 or (201) 791-4639
What You Will Learn From Dwan In The Morning
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18 proven methods for finding foreclosures that will have distressed property owners
calling YOU.
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Three options you have when you find a property:
1. Keep it for long-term investment, rental, lease, etc.
2. Rehab it and sell it for a nice profit.
3. Wholesale it and make some quick cash (never owning the property).
What Dwan Will Teach You In The Afternoon
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How to turn a $10 investment into $10,000 quick profit.
How to wholesale bank owned properties.
How to get Realtors to give you more bank-owned properties than you can handle.
Short Sales taught in detail:
1. What to say to the bankers.
2. How to get your offers accepted.
3. What to do when the bank says “no.”
Volume 2 Issue XI
3 of 20
November, 2003
DEALING WITH BANKS
NO EQUITY = BIG BUCKS!
By Dwan Bent-Twyford and Sharon Restrepo
Turn A "Nothing Deal"
Into A "Something Deal"
Just By Picking Up The
Phone!
Anyone actively investing
in foreclosed and distressed
property has no doubt come
across one major problem:
finding deals with equity!
Trust us, this is a nationwide
problem. There are so many foreclosures out there. Unfortunately
most of the homeowners owe what
their property is worth. We find
that most investors walk away
from deals with no equity. They
either don’t know what to do with
a no-equity deal or they are unwilling to put forth the effort necessary
to make the deal work.
In a situation like this, we
discount the mortgage. “What
is discounting?” You ask. Discounting a mortgage means
getting the bank to accept less
than what is owed as payment
in full.
There are several steps that
will ensure your success when discounting mortgages. First of all,
you must have the homeowner
“ under control.” Many investors
are under the misconception that
they can buy the property directly
from the bank while it is in the
foreclosure process. Not true! The
bank does not own the property
until the moment of the courthouse
sale. You can buy the mortgage
and finish the foreclosure process,
but you cannot buy the property.
You’ll have to work hand-in-hand
with the homeowner if you plan to
Volume 2 Issue XI
discount a mortgage.
Here is how it works:
A homeowner calls you and
tells you he is in foreclosure; he
owes $95,000 on his property; it’s
worth $100,000 and he is eight
months in arrears. He wants to
move on with his life but can’t sell
his house because he owes what it
is worth. Here is where you come
to the rescue. You meet with the
homeowner and have him sign an
“ Authorization to Release” form
(this gives the bank permission to
speak with you about the account)
and a sales contract for the amount
you are willing to pay for his property. In this scenario, we are going
to offer $50,000.
Next, you call the bank
and ask for the Loss Mitigation Department.
This is the department that
handles properties that are in foreclosure. Tell the person handling
the account that you are trying to
help Mr. Smith with his foreclosure and you are willing to buy the
property from him. However, due
to its poor condition, you are only
willing to pay $50,000 as payment
in full. Fax the sales contract for
$50,000; comps in the area; an
extensive list of repairs that are
needed to bring the property up to
marketable condition; a net sheet
(a title company will help you with
this); and some really bad pictures.
The bank will then review the
information and make a decision.
Let’s say they counter at $65,000;
you counter again at $55,000; they
accept! It’s that simple! We discount many, many mortgages
every year. Banks are not in the
4 of 20
business of owning properties.
They would rather discount a
mortgage than go to the courthouse
steps.
We’d like to share an incredible deal one of our Foreclosure Fortune Hunt graduates put together.
Her name is Cathi Dubois.
Cathi was helping some friends
look for a home in which to live.
They came across a distressed
property valued at $200,000. She
contacted the bank and began the
process. Her first offer of $50,000
was laughed at. She was asked to
make a higher, more realistic offer.
After several phone calls, the bank
agreed to accept $130,000 as payment in full. That is a $67,000 discount!! With the new payoff of
$130,000, she then “ flipped” the
property to her friends for
$140,000 and made a smooth
$10,000 in less than a week!!!
Personally, we think she
gave the property away too
cheaply (smile).
This is a typical case where
having a firm grasp on creative
real estate enabled Cathi to turn a
“ nothing deal” into a “ something
deal” just by picking up the phone.
She made money (and a lot of it)
on a deal most investors would
have passed on. The bank was
happy with the discount, Cathi
made $10,000, and her friends
bought a home with $60,000 equity!
November, 2003
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Having Trouble
Insuring your properties?
John D. Haslach
“Hard to Find” Insurance Specialists
Inner Cities Suburbs
Certified Public Account
Phone (732) 566-2849
Fax (732) 556-6691
Email: [email protected]
Specialization in Real Estate Taxation
Armor Insurance
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Manrico “Manny” D’Anatasio
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Life-Commercial Auto-Health-Home-Commercial
Bus. (856) 829-7375
Fax. (856) 829-3962
Broad & Garfield Street
P.O. Box 33
Palmyra, NJ 08065
Volume 2 Issue XI
x
x
5 of 20
FREE – no charge, no obligation Telephone and email consultations
for MREIA members.
Preparation of all personal, partnership, corporate and trust returns including all state returns.
Choice of entity analysis – decide
what form to own and operate your
real estate investment business.
Real Estate investment and planning
strategies.
November, 2003
PROPERTY MANAGEMENT
MRLANDLORD.COM ON MANAGEMENT
By mrlandlord.com
LOCAL ZONING MAY
PERMIT YOU TO
INCREASE YOUR CASH
FLOW.
My wife and I are always
looking for opportunities to increase the cash flow value of
our rental units. We once purchased a duplex and realized
that this duplex would become
more valuable with the passage
of time. But we were impatient
investors. We wanted more
positive cash flow and we
wanted it now, not several
years from now. We checked
with the local planning and
zoning department and discovered that we could legally
change this property into a
three or four unit building.
Since we were short on cash,
we simply bought a small refrigerator and a hot plate and,
by adding these two items, we
created a small studio apartment out of the downstairs area
of one of the two units and increased our cash flow.
NICHE MARKETING
The first person who responded to our recent newspaper ad and rented one of our
units unit was a young police
officer. At first, we didn’ t realize the significance of this. We
now know that one of the greatest blessings a property owner
can ever enjoy is to have a police car sitting outside of their
property all night long. So if
you should ever find yourself
Volume 2 Issue XI
with an empty rental unit, contact your local law enforcement
agencies and offer any of their
employees incentives (like rent
discounts) if they will move
into your unit. Do what is necessary to make your units attractive to them, even if that
means customizing the apartment or lowering the rent some
more. Your primary objective is
to get a lot of police officers
and their cars hanging around
your units.
BEING PRO-ACTIVE
HELPS RETENTION
My strategy involves keeping the good residents I have. I
maintain communications. I
send out periodic newsletters
reminding the residents to
check smoke alarms, change A/
C filters etc. I encourage them
to contact me early if a problem
exists, either mechanical or financial. I make rounds to check
on properties and promptly notify residents of unacceptable
situations that need their attention. Being a hand-on landlord
has advantages.
DON’T BE QUICK TO ACCEPT PARTIAL PAYMENT
In many states if you accept
partial payment prior to your
court date, it will waive your
right to an eviction. While it is
laudable to resolve your dispute
before you get to court, unless
your agreement as an enforceable clause to the contrary, taking a partial payment may re6 of 20
sult in you having to start the
eviction procedure all over
again, meaning your resident
will be permitted to stay in your
rental even longer even though
they have not paid the full
amount. If that’ s OK with you,
by all means, make an agreement and cancel your court
date. Better still, make your
agreement in court!
These tips are shared by
mrlandlord.com rental owners
and reprinted with permission
from MR. LANDLORD newsletter.
For a free sample, call
1-800-950-2250 or visit our
web site at
www.mrlandlord.com
to register to win a free
landlording book.
ARE YOU MOVING?
Have you already moved?
Please send your updated information to:
Membership Chair
MREIA, PO Box 322
Cranford, NJ 07016
or e-mail to:
[email protected]
(Ginny Condello)
We will need your new address,
work and/or home phones, fax
number and e-mail address.
We do not want you to miss
ANY issues of the Metro!
THANK YOU!
November, 2003
Sell Your Deal For
$2,500 – $10,000
Attention Beginners, Realtors, Investors, Rehabbers...
Call or e-mail us to receive our wholesale criteria package!
iWholesale / Referral Lead Form
iCriteria For Rehab Deals
i13 Potential Monster Problems – Checklist
iProperty Inspection – Checklist
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Call 1-800-808-6465 ask for AL
Or E-mail: [email protected]
Become Part Of Our
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Www.PeakPropertiesOnLine.com
www.StopForeclosureN J.com
Volume 2 Issue XI
7 of 20
November, 2003
ENVIRONMENTAL PROBLEMS
Cleaning Up Heating Oil Discharges
By NJ Department of Environmental Protection
Editor’s Note: The article below is an excellent reason why every property should be inspected to determine the existence of an underground oil tank, before purchasing the property.
Storage tanks containing home
heating oil-whether they are located underground, above ground
or in the basement – can rust and
leak over time, posing a number of
environmental and health risks. In
the event of a storage tank discharge-where heating oil comes
into contact with soil or ground
water-New Jersey requires homeowners to take prompt action to
minimize those risks.
The minimum work requirements for cleaning up affected
properties are defined in the regulations entitled Technical Requirements for Site Remediation
(N.J.A.C. 7:26E et seq.). You may
visit the DEP’ s web site at
http://www.state.nj.us/dep/srp/regs
/regs/htm. The environmental contractor you hire for your cleanup
should be familiar with and follow
the above regulations. This guide
is provided as a supplement to help
you better understand the cleanup
requirements. It should not, however, be used in place of the Technical Requirements.
How Can I Tell If There Is a
Problem?
The following could be signs of
a leak in your home heating oil
tank:
1. Any unexpected/unexplained
fuel oil consumption increase
that doesn’ t appear to be caused
by additional use of your heating system (such as during prolonged periods of cold
weather).
Volume 2 Issue XI
2. Water in your underground
storage tank.
3. Consistent problems with your
4.
5.
6.
7.
8.
oil burner.
Changes in or loss of vegetation
in the area over and around the
tank.
Oil odors in areas other than
around the oil burner (typically
located in a basement or utility
room).
Tastes, odors or other problems
with your drinking water (if
obtained from a well).
Staining on basement walls or
floors adjacent to the tank.
Presence of oil or a sheen in the
basement sump or French drain.
Oil or sheen in any nearby culverts, drainage ditches, storm
drains, streams or ponds.
For 1, 2, and 3, first contact the
company that services your heating
system to rule out a maintenance
problem. To determine whether
any of the above problems are
caused by a leaking fuel oil storage
tank, contact an environmental
contractor. Your local health department also may be able to provide you with guidance in determining the source of the problem.
What Do I Do If There Is a
Leak?
If some type of heating oil discharge has occurred at your homeregardless of the quantity-you must
report it to the N.J. Department of
Environmental Protection (DEP).
Call the DEP’ s toll free 24 hour
8 of 20
Environmental Action Hot Line at
1-877-WARN DEP (1-877-9276337) as soon as the discharge is
detected. You will be sent an information package that describes in
detail your responsibilities, what
must be done to clean up the spill
and DEP’ s oversight role.
Next, if the source of your discharge is a leaking tank, contact
your fuel oil company and ask that
all residual fuel oil be pumped out
from the tank. Be sure to ask if any
of the oil is reusable. You should
also contact a qualified environmental contractor to perform the
cleanup.
How Do I choose a Contractor?
Environmental contractors are
listed in the telephone book’ s Yellow Pages under Environmental
Services or Tank Installation and
Removal. If you need help in
choosing a contractor, consult with
your attorney or local health department for recommendations.
The DEP cannot recommend contractors, but provides general guidance on how to select one in its
brochure called Choosing an Environmental Consultant for Cleaning
Up Heating Oil Discharges. A free
copy is available by calling (609)
584-4150 for the southern field
office or (973) 669-3960 for the
northern field office.
(Continued on page 9)
November, 2003
ENVIRONMENTAL PROBLEMS
Cleaning Up Heating Oil Discharges
(Continued from page 8)
As with any other contract work,
you should obtain cost estimates
from two or three contractors and
request references. You may contact the Division of Consumer Affairs at (973) 504-6200 to determine if the contractor has a history
of complaints. Make sure that the
contractor you select is familiar
with the Technical Requirements
for Site Remediation. If a contractor does not have a thorough
knowledge and understanding of
these regulations, it will almost
certainly result in project delays
and additional costs. Remember
that the lowest bidder may not always be the most qualified contractor.
Unfortunately, since contractors
cannot guarantee certain aspects of
cleanup activities-such as whether
contamination will be found and, if
so, to what extent-it is difficult for
them to accurately predict the cost
of a total project. Generally speaking, contractors bill on a time and
materials basis, and the amount of
time required will vary with every
project. Because it can be difficult
to determine if costs for a cleanup
are reasonable, you should take
particular care in selecting a contractor. If contractors require that
you sign a contract for the work
with specific clauses, you may
wish to consult your attorney to
ensure that the contract protects
your rights. Remember, the contractor is working for you; don’ t
hesitate to ask specific questions
and seek justification for any costs
that seem unreasonable or unnecessary.
What is the State’s Role?
Volume 2 Issue XI
Under state laws, cleanup activities must be conducted for discharges of fuel oil; cleanups may
take place with or without state
oversight. However, to obtain final
state approval of a cleanup, a “ no
further action” letter is needed
through the DEP’ s Voluntary
cleanup Program. This letter increasingly is required in real estate
transactions .If you require such a
letter at closing, ensure that you
leave ample time to complete the
cleanup and gain final state approval.[Editor’s Note: it could take
as long as six months for the DEP
to issue said letter. Regarding the
sale of a property, it may be necessary for money to be held in escrow by an attorney or title company until the “no further action”
letter is issued. However, as a
buyer you could be in a very
strong position to ask for concessions because the seller usually
cannot sell the house until the contamination issue is resolved]
The program provides for state
oversight through a Memorandum
of Agreement in which the homeowner agrees to perform the
cleanup and pay DEP oversight
costs. The DEP receives no state
funding to cover costs for this
oversight; costs must be porne by
those who require the service. The
DEP, in turn, reviews cleanup activities and provides final approval
at the conclusion. Under the program you will be assigned a case
manager. If you have questions
about any aspect of the cleanup,
your case manager will be available to assist you.
A property owner may choose to
perform a cleanup without partici9 of 20
pating in the Voluntary Cleanup
Program, but the matter will remain an open case until the DEP
can review the cleanup. Reviews
of cleanups conducted outside the
program are conducted on a priority basis, with those sites posing
the greatest environmental risks
addressed first. A “ no further action” letter, however, is available
only through the Voluntary
Cleanup Program.
What Are the Steps for
Cleanup?
Following are some of the steps a
contractor will take to clean up
fuel oil contamination. All cleanups will differ depending on individual circumstances. The steps
described below are to help you
better understand the general
cleanup process:
x The tank will be thoroughly
cleaned and properly disposed of
or recycled at a scrap metal facility.
x If the storage tank is underground
and must be removed, it will be
removed according to local codes
and the American Petroleum Institute’ s recommended practices.
Local construction permits will be
required from your municipality.
x Once the tank has been removed,
the contractor will excavate from
the area any soils believed to be
contaminated above the DEP’ s
cleanup criteria. Soils over the
tank may be separated from the
contaminated soil and used as fill
material, which will save on disposal and fill costs.
(Continued on page 10)
November, 2003
ENVIRONMENTAL PROBLEMS
Cleaning Up Heating Oil Discharges
(Continued from page 9)
x Once contaminated soil has been
removed, soil remaining in the
excavation site will be sampled to
document the effectiveness of the
cleanup. A certified laboratory
will analyze the soil samples, and
the results will be compared to the
DEP’ s soil cleanup criteria to
determine whether additional
cleanup is needed. Soil disposal
may represent the largest part of
cleanup costs. Therefore, it is
important that your contractor
accurately determine which soils
are suitable for use.
It should be noted that if Total
Petroleum Hydrocarbon Compounds (TPHC) concentrations are
detected in excess of 1,000 parts
per million (ppm) in the excavation, the soils must also be tested
for Volatile Organic Compounds
(VOC) using the appropriate DEP
or USEPA test method. The VOC
test will be required on 25 percent
of the samples with the highest
TPHC concentrations exceeding
1,000 ppm of TPHC. Concentrations in excess of 10,000 ppm must
be remediated. Concentrations below the 10,000 ppm may be below
DEP soil cleanup criteria, and may
not need to be excavated.
What occurs during the tank removal will determine what additional work, if any, will be needed.
If ground water is encountered
during the excavation and there is
fuel oil or a sheen floating on the
water, the floating fuel oil should
be recovered, and a ground water
investigation or ground water
cleanup will be necessary. If the
above situation arises, the cleanup
may become more complex. You
may want to contact your DEP
case manager once ground water
Volume 2 Issue XI
contamination has been confirmed
so that they may assist your contractor in this complex stage. If
you have questions about any aspect of the cleanup, contact your
assigned case manager or the duty
officer at the Bureau of Field Operations at (609) 584-4150 Southern, or (973) 669-3960 Northern.
ble, contact the Division of Responsible Party Site Remediation
at (609) 633-0719.
Reprinted and Edited from a
flyer issued March, 2002, no
author listed, by the NJ DEP Site
Remediation Program, PO Box
434, Trenton, NJ 08625-0434
What Are the Cost Issues
Involved?
Homeowners should be aware of
the following cost issues as they
relate to cleanups:
Insurance
You should file a claim with
your insurance company as soon as
evidence of a leak is discovered.
Most policies require “ prompt”
notice of a claim, as well as your
assistance in providing information
the insurer. Insurance coverage for
cleanup contamination from leaking residential tanks depends on
the language of the individual policy and its interpretation.
Financial Assistance
Grant and loan programs are
available from the State to provide
financial assistance for cleanup
costs. To find out if you are eligi-
Volunteers Needed!
Membership in MREIA has increased
dramatically in the last few months. The
Board would like to expand our member
benefits and services such as offering
discounts on products, expanding our
web site, offering special workshops,
creating subgroups and mentoring sessions. All members of the Board are
volunteers.
If you have a special talent or ability,
PLEASE contact any member of the
Board to offer your help. We can only
continue to grow if more members become involved.
By the way, volunteers will receive credits toward their membership dues for the
following year.
Harry Frieland
Levitan & Frieland, P.C.
Counselors at Law
26 Columbia Turnpike 111 E. 35th St.
Florham Park, N J 07932 N ew York, N Y 10016
(973) 966-0153
(212) 432-3800
10 of 20
November, 2003
REAL ESTATE EDUCATION
Get an Education With a Vacation...On a National REIA Cruise
By Don Beck, National REIA Cruise Chairman
If you are a real estate investor, landlord or
property manager, National REIA’ s annual cruise
in February 2004 is literally an event you can’ t afford to miss. When you attend you’ ll meet folks
who are just getting started in their careers and
people who have been financially independent via
real estate investing for years. Some specialize in
buying and holding properties, others buy and sell
and still others lend money to investors. There will
be over 40 groups from 20 states represented; truly
a diverse group of real estate pros.
If you have never been on a cruise, you’ ll be
amazed at all the great activities available for you
and your family. Whether you like dancing,
karaoke, fine art auctions, bingo, casinos or just
hanging out by the pools and Jacuzzis, there’ s
something going on all the time. For the kids,
there’ s organized activities, video games, treasure
hunts and much more. You can work out in the
weight room, run/walk on the upper deck, read in
the library or get a relaxing massage in the salon.
In short, there is no end of fun things for each
member of the family to do.
you get a great vacation and a great real estate conference, all in the same place and all for the same
great tax deductible price?
Make the decision NOW to join over 400 fellow
investors from 40+ cities as they spend a week
having fun in the sun and learning how to get
richer at the same time. Take the next step by completing the cruise flyer registration form in this
newsletter or call Cruise Chairman Don Beck tollfree at (877) 542-9804 or e-mail him at [email protected] for more information.
MREIA is a member of:
One thing everyone remembers about a cruise is
the food. World-class chefs prepare meals to your
specifications or choose to dine informally pool
side. Free room service and 24 hour pizza and ice
cream round out the dining options.
Free Classified Ads
Let’ s not forget about the ports of call. Warm
climates, beautiful beaches, friendly people and as
much bargain shopping as you can handle… plus
snorkeling, fishing, diving, horseback riding, and
land and sea tours. Watch the exotic wildlife or get
a little wild yourself at the local nightclubs.
Got a House/Apt to Rehab/Remodel? Call
Roger at Storm Contracting at (732) 2641813 or email to: [email protected]
Each year National REIA invites the top experts
from all over the country to give presentations to
our attendees on topics including landlording, tax
savings, nothing down deals, asset protection, buying and selling mortgages, foreclosures, renovations, and dozens of other topics. Where else can
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CONTRACT LANGUAGE: WHOLESALING
“And Or Assigns”
By Mike Jacka
Recently I have had a lot of
new investors ask me about using "And or Assigns" after their
name on the purchase agreement. While that does give you
the ability to Assign a contract,
I don’t recommend using it. In
fact, what I have been telling
them is:
"Get that term out of your
vocabulary!"
All contracts by their nature
are assignable, unless they state
otherwise. If you are making
an offer to a bank on a foreclosure property, the banks contracts are NOT ASSIGNABLE.
And if you put in "And or Assigns" after your name, it would
supersede the written version of
the non-assignment of contract.
However, the banks will more
than likely reject your offer
simply because you included
"And or Assigns" after your
name on the Purchase Agreement.
You see, the banks and financial institutions have been run
through the ringer by new investors who have no intentions
of closing on the deal. They
know the investor is planning
on selling the contract. And if
the investor can not find a
buyer, they will simple walk
away from the deal and lose
their Earnest Deposit.
That causes the banks a lot of
Volume 2 Issue XI
problems. First, they lose the
time that the property was in
escrow. What’s even worse is
how the other investors or prospective purchasers view the
property.
Let’s say that you put the
property under contract and the
MLS shows the property as
"Pending", meaning it is under
contract and waiting to close.
Then you try and find a wholesale buyer with cash, but are
unsuccessful. At the last minute, you back out. The bank
has lost time and incurred additional holding costs and liability. They then put the property
back on the market.
What do you usually think
when you see someone was going to buy the property and then
the house is back on the market
about a month later? Most peoples reaction is usually: I wonder what is wrong with that
property? Did the other person
have an inspection and found
something wrong with it? I
wonder how the foundation is?
Do you see how this can devalue the property in your
mind, as well as in other peoples minds? When in reality,
the whole problem was the person that put the property under
contract was an unseasoned investor and did not have the
means to come up with the cash
because his/her attempts to find
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a wholesale buyer "in time"
failed.
Most peoples reaction to this
situation, if they are even interested in the property after it is
back on the market is to make
an even lower offer than they
might have if the first investor
had not even been involved
with the property in the first
place.
This has happened all to often
to the banks and they have
stated in the Purchase Agreements that the contract is not
assignable. And if you submit a
contract with "And or Assigns"
after your name on the purchase
agreement, the banks will
probably reject your offer, even
if it is full price, and you provide them with proof of funds.
Realtors hate "And or Assigns" as well. They know
what that means, as well as the
banks do. And if they are representing an individual seller,
they might have a tendency to
suggest to their seller to reject
the offer for the same reasons
as the banks would.
And what about FSBO’s (For
Sale Buy Owners)... How do
you explain to the sellers that
the name of the purchaser is
(John Doe, and or assigns)?
(Continued on Next Page)
November, 2003
CONTRACT LANGUAGE: WHOLESALING
“And Or Assigns”
(Continued from page 14)
How does a confused mind
naturally react?
If you cannot give the seller a
convincible answer, they will
probably back away from the
deal.
Ok Mike, you have convinced
me not to use "And or Assigns"
in my contract, but what if my
intentions are to wholesale the
property? Then what do I do?
I am glad you asked me:
First of all, if you are working
with realtors and banks, there is
not much you can do about
that. However, if you are working with FSBO’s, you can have
this statement printed or written
somewhere in your Purchase
Agreement:
ASSIGNMENT: This Purchase Agreement is assignable.
When I wholesale a property,
whether it is bank owned or individually owned, I use a simultaneous closing. I am not going
to get into the details of a simultaneous closing right now,
but I will give you a quick
overview.
A simultaneous closing is
when you have a property under contract and you find a
wholesale buyer to quick-turn it
and you close both transactions
at the same time. The buyer
brings the cash to closing. You
Volume 2 Issue XI
close in one room with the
seller and 5 minutes later you
close in another room with your
buyer. The seller walks out of
there with a check, the buyer
with the deed, and you with the
difference between what you
bought it for and what you sold
it for.
There are many courses out
there that teach you how to
wholesale properties using a
simultaneous closing. Ron LeGrand has a great book and
workshop about that subject.
You can get the Book (Fast
Cash with Quick Turn Real Estate) and 6 audiocassettes of the
recording of his all day workshop in his CashFlow Generator
course for only $49.95 - Click
Here for more information:
The best thing about a simultaneous closing is that no one
but you and the closing agent
needs to know how much you
made on the deal. Where as, if
you assigned the contract, the
buyer would know how much
you made because they would
be paying you your profit to
buy the contract.
After your first deal, you
should start building a list of
wholesale CASH buyers. That
way, when you have your next
wholesale deal available, you
will already have the buyers
lined up with cash to close.
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Happy Investing,
Mike Jacka
www.realestatepromo.com
** Attention **
Experienced MREIA
Members
We would love to interview you
about your investing and landlording experiences, both successes and nightmares!
The interview will be brief and
published in the Metro.
Please call 201-791-4639 or email [email protected]
Do you have a service
or product
(that might be of interest
to our members?)
E-mail Dan at
[email protected]
for information about our
three affordable
packages.
Please list phone
numbers where you can
be reached during the
day or evening.
November, 2003
UPCOMING EVENTS
Upcoming Events in the World of Real Estate
By MREIA Editor
Editor’ s Note: If you have any information on other events being presented by national speakers not listed
below, please e-mail to [email protected]
DWAN BEN T-TWYFORD AN D SHARON RESTREPO (Registration: 303-838-5532)
“Short Sale Secrets Boot Camp”
Dec. 6
Seattle
LOUIS BROWN (651-779-7355) Street Smart $ecret$ of Buying, Selling, and Holding Property
Nov. 23
Minneapolis, MN .
JACK MILLER www.cashflowconcepts.com (888) 282-1882
Nov. 14-16
Tampa, FL: Advanced Trust/ Corporation/ LLC Strategies
Learn how to combine corps, trusts and LLCs for maximum profit, privacy and
protection.
Dec. 7-14
Tampa, FL, 7 Day Caribbean Seminar Fun Cruise
JOHN SCHAUB
Nov. 7-9
(In 2004)
Jan. 16-18
Apr. 16-18
www.johnschaub.com
Newport Beach, CA. Making it Big on Little Deals (single family homes)
Sarasota, FL. Making it Big on Little Deals
Sarasota, FL. Grad Class: Asset Protection & Financial Privacy, Options, Notes,
Corporations, LLC’s, Trusts, and Roth IRA’s.
MR. LANDLORD ANNUAL LANDLORD CRUISE www.mrlandlord.com (800) 881-4561
Dec. 6-13
Caribbean Cruise: Albert Aiello, CPA, Lonnie Scruggs, Jeffrey Taylor, Wright
Thurston, and Troy Titus, Esq.
PETER FORTUNATO www.peterfortunato.com (727) 397-1906
Dec 5, 6
Tampa, FL: Paper Course [Dec 7, 9-noon with Jack Miller]
REAL WEALTH EXPO (800) 684-7788
Nov 14 - 16
Dallas TX. Robin Thompson, Louis Brown, Bill Gatten, Robert Shemin, Al Aiello, Jeff
Kaller, Donna Bauer, and Kathy Kennebrook.
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Volume 2 Issue XI
Please Let Us Know
If you have any suggestions as to how
we can improve your organization,
whether it be the website, the newsletter,
events, or anything else that you believe
would help us to better support you, please
feel free to email us at:
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[email protected] (newsletter)
[email protected] (website)
November, 2003
Volume 2 Issue XI
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November, 2003
NEW AND RENEWING MEMBERS
Please Extend a Warm Welcome to Our New and Renewing Members
Olv Adebanjo
David Brous
Edward Brzyski
Steven Buch
Gregory Carafello
Michael Conway
Natalynn Dunson-Harrison
Paul Eggert
Frank Flandinette
Glen Golden
Lucy & Yuliya Gringuaz & Maksyutinskaya
Karen Henderson
Sarah Hotaling
Sandra Hunte
Benny Jones
David Kernowski
Jason King
Miguel Kubes
William Lee
John Lutz
Thomas Mannaro
Aliza Mattenson
Jane O-Connell
Patricia O’Keefe
Glenn Pennett
Howard Perry
Timothy Piso
Joe Sinisi
Carol Sloane
Mark Stabile
Mark Tarby
Gerry & Christopher Vittitoe
Constantine Vivian & guest
Stanley & Sharonda White
MEMBERSHIP APPLICATION FORM
Send $125 (plus an additional $35 for an Associate Membership for another person living in your household) to:
METROPOLITAN REAL ESTATE INVESTORS ASSOCIATION PO BOX 322, Cranford, NJ 07016
Disclaimer
The information and news presented in our publication and at meetings or other events is not to be construed as legal or accounting advice, which
should be obtained through a qualified real estate attorney or accountant only. The M.R.E.I.A. , Inc. does not exist to render, and does not give
legal, tax, economic or investment advice, and disclaims all liability for the actions or interaction taken or not as a result of communication from or to
its members, officers, directors, employees or speakers/presenters. Each individual should consult his/her own counsel, accountant or other advisors as to legal, tax, economic, investment and related matters concerning real estate and other investments.
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Volume 2 Issue XI
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November, 2003
Volume 2 Issue XI
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November, 2003
Share Your Ideas With Us
If you have any thoughts or ideas on how to
improve MREIA, or topics you would like
to see discussed, please contact any officer
or the Metro editor. Your input matters
greatly to us.
Upcoming Meetings
December 1st Holiday Party
January 19th Brookview Financial: Rehab
Loans
February 16th Working with Realtors
Your membership in the Metropolitan Real
Estate Investors Association gives you the
chance to meet and learn from experienced
investors when you are starting out. Once
you have started, membership presents the
possibility of your becoming a more professional Real Estate Investor, Property Manager or both. In addition, the following benefits are available: Admission to all monthly
MREIA meetings, special workshops and
convention, subscription to the Newsletter,
and access to the classified ads. Discounted
business services are available to our members at P.C. Richard and Son, Sherwin Williams Paints, and Sears.. Please support our
Corporate Sponsors because they support us!
Our Meetings are held at
The Kenilworth Inn
Exit 138 off the Garden State Parkway
Doors open: 6:30 p.m.
Meeting starts promptly at: 7:30 p.m.
For Further Information Call:
(201) 343-6829
Or Visit us at our website: www.mreia.com
MREIA
P.O. Box 322
Cranford, N J 07016
Change Service Requested
Membership Number: 2825
Courtesy Copy #1