The Renegade Real Estate Investing Newsletter
"Cutting Through the Real Estate Investing B.S."
This FREE Real Estate Investing Tips newsletter is your window
into the world of real estate investing. You will never get closer
to the real action than learning straight from two Canadian brothers,
Tom & Nick Karadza, who are actually implementing the strategies they
In this weekly publication you will get access to our real world guides,
trends, tips, strategies and "how to" information that is being implemented
"on the streets" with real people, right here in Canada.
To access the full list of articles visit: www.TheRealEstateRenegades.com or check out their new blog: Blog.TheRealEstateRenegades.com
It is published every Thursday, if you have been forwarded
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Thursday May 8th, 2008
In this Issue:
- Renegade Commentary: "Remember The Fundamentals"
- Featured Article: Pearls of Wisdom From George Ross
The next FREE Real Estate Training Workshop
Our next real estate training class is on Saturday May 24th, 2008
at 10am in our Burlington, Ontario offices. In this class you will learn how to profit
from Real Estate without having to rehab and renovate distressed
homes and create steady monthly income for yourself.
You'll also learn about actual real life success stories of investors doing
this right here in your own backyard. To get all the location details
and hold your spot (because we regularly fill the class!) visit:
"Remember The Fundamentals"
In Real Estate a deal is a deal right?
Wrong! You knew that.
Recently there's been a slew of real estate "opportunities" that have come by our desks. This week in particular there's been more than usual. A tidal wave of 'em.
They fall into a couple of categories:
1. U.S. real estate "deals" that have sketchy details.
2. Canadian "flips" that don't have enough room in them to make any profit, and may even lose you money.
When looking at anything presented to you in the U.S. you really need to have local, "on the streets", knowledge of the area.
The media has done such an excellent job of convincing people that all real estate south of the border is depressed that I think a majority of Canadians believe any U.S. opportunity presented to them must now be a great opportunity. Wrong, very wrong.
When the numbers on a specific property look interesting you must still buy it with a complete picture of the neighborhood you're buying into. Does the person selling you the "deal" have local stats, local and up to date rent rates, local rental demand, local property managers, local economic data?
You must focus on fundamentals where ever you invest. Population, employment, transportation developments etc.
And if you want to get an idea how skewed some of the media gets when reporting about U.S. real estate read this article very carefully.
The second situation that has been popping up is where someone has found what they think is a deal. A piece of real estate they can buy for 20% under market value and they hope to sell it for a profit right here in their own backyard.
I can tell you from experience that when doing a "flip", where you buy and then sell a home, you will often need more like 35% or more to make a profit that is worth your time and effort.
If you think you'll need $25,000 and 3 months to fix up a property and sell it for a profit, plan for $50,000 and 6 months. If the numbers still work then you may be on to something. But realize that in this situation you are speculating...you are "hoping" for a profit.
Here's how dictionary.com defines it:
speculation: engagement in business transactions involving considerable risk but offering the chance of large gains, esp. trading in commodities, stocks, etc., in the hope of profit from changes in the market price.
Now having said all this, is there money to be made in real estate? Yes, there is. Get some education, find a mentor, use a system and you'll stay on the right track.
I happen to know someone who's been through a real estate deal or two. He'd make a great mentor. George Ross is Donald Trump's right hand man and still actively manages many of Trump's deals.
I recently heard him speak live and he shared some great insights. He's the focus of this week's featured article below.
Until next time...be a Renegade!
Tom & Nick Karadza
"The Real Estate Renegades"
Real Estate Investing Step-by-Step:
To learn more about our investing approach and the system we use
with our members you can request a copy of our FREE Report to be
mailed to you. In it you will learn:
- How you can turn 3 Single-Family homes into 24 homes without
investing any additional money by having homes buy homes. EASY WEALTH!
- How you can create Income for Life in just ONE hour of spare time
a day! This means NO FIXING UP DISTRESSED HOMES!
To request your own complimentary copy of our investing in "Nice Homes
in Nice Areas" report go to www.LeaveWorkOneDay.com and fill out the form
at the bottom of the page.
Pearls of Wisdom From George Ross
Any Canadian real estate investors out there not know who is?
He's Donald Trump's right hand man and his "go to" lawyer who handles many of Trump's legal activities still today.
We had the opportunity to spend some time with him and hear a live chat he gave that seemed to be pretty spontaneous in its content.
We even snapped a couple of pictures with him.
One of the most interesting stories he shared was how you can never lose focus when negotiating a deal. He was down south somewhere and someone was trying to sell his wife a blanket for $30 on the beach and he offered $12.
This goes with his #1 piece of advice and magic phrase he uses in all negotiations, "You've got to do better."
Based on the sheer amount of time he spent explaining the power of that line it's obvious he's used it very successfully over the last few decades with Trump.
I'm sure Canadian real estate investors can do the same. I've been testing it out lately with everything and it works. The dry cleaners gave me a 15% discount just for blurting it out (I was smiling as I said it :)
Anyway, he spends a full day going back and forth with the beach blanket guy and ultimately lets the deal fall away over 50 cents. The guy selling the blanket came down to $15 but George's final offer was $14.50.
He explained how he regreted losing that blanket and blames it on his lack of focus.
He was more interested in "winning" and not giving that last 50 cents than actually getting the blanket for his wife, which was the actual goal of the process.
Here are few other little gems for Canadian real estate investors that George shared:
1. Always find common ground when negotiating. If the guy on the other side of the table plays golf then you love golf.
2. You must do your homework. Knowledge is key in complex negotiations.
3. Ability to organize information is a critical component to his success. He shared how when he started with Donal Trump he noticed that Donald kept a spiral notebook on his desk to track everything. He immediately started doing the same.
For the full article click here to continue reading...
Exposed: Successful Canadian Investors "Spill the Beans"
My son came up with the idea of having some of our real estate investing
clients "spill the beans" on a teleseminar call. He thought it would
be a great idea if you could hear from others how they are creating
wealth for themselves. Well, we couldn't agree with him more ;)
We did it and even helped him set up a website to share it with you.
If you want to eavesdrop on how people are making money in real estate right
in your own backyard visit www.MyDaddysTeleseminar.com and
you'll get instant access to a recording of the call right now!
About The Real Estate Renegades
Tom Karadza & Nick Karadza are authors of the book "Income For Life for Canadians",
available on Amazon.com by clicking here (not Amazon.ca just yet!),
and work with a select group of real estate investors throughout the Greater Toronto Area.
They actually do what they talk about it.
They have been called 'Real Estate Renegades' because they are implementing
real estate investing strategies that were once thought to be impossible by
many 'industry professionals'. They are part of several mastermind groups in Canada and in the USA.
They also offer real estate investing classes, reports, coaching
and mentoring, and other resources to help both beginner and experienced
real estate investors achieve ultimate success. Learn more now at:
You can meet them in person at their next FREE Real Estate Investing Class, "How to Invest in Nice Homes in Nice Areas" by signing up here: www.CanadianRealEstateTraining.com
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