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As a real estate lender and investor, I get asked the same question all the time:

What is a safe ratio for me and/or my real estate business?

One of the common misconceptions people have about private, asset-based lenders is that they only focus on the “loan-to-value ratio” of an asset, but a borrower’s personal financials still play a major part in qualifying for a loan, even when using private, asset-backed lenders.

It’s crucial to understand your debt-to-worth (aka – debt-to-equity) ratio to gauge the health of your financial situation and make a smart investment.

Investopedia defines Debt-to-Equity as follows:

A measure of a company’s financial leverage calculated by dividing its total liabilities by stockholders’ equity. It indicates what proportion of equity and debt the company is using to finance its assets.

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sell or rentWith the economy recovering from the recession, the housing market continues to get better and better. While it is quickly becoming a seller’s market, renting is also a popular, and sometimes smarter, option. If you are looking to move and wonder if you should sell or rent your current home, there are a few things you should take into consideration before deciding.

What Is the Condition of Your Home?

This is probably one of the biggest factors when making the decision to sell or rent. If your home needs a lot of expensive fixes or upgrades, it may be in your best interest to sell while the market is up and hopefully make a profit from your investment. [click to continue…]

The Art of Building a Buyers List (Pt 4) – Communicating With Your List post image

When you’re building a buyers list, it’s easy to get wrapped up in the task of growing your numbers and reaching out to new people, but when you’ve finally built up a sizable, captive audience…   then what? How are you supposed to work with these people and convert these relationships into real dollars?

If your experience is anything like mine, you probably know what it’s like to get BOMBARDED with an endless barrage of junk email that you never asked for. Let’s just be honest about this…   you and I both know how annoying it is to be an email subscriber.

The problem is that 99% of the email marketers in the world are horrible at email communication (how’s that for irony?). These people are failing to obey some very simple rules of email etiquette and as a result, they end up alienating those who matter the most.

The last thing this world needs is another clueless “email marketer” spamming the innocent victims on their list…  so in the next few minutes, I’m going to help you avoid this pitfall by giving you some basic ground rules to follow when you’re corresponding with the investors on your buyers list. [click to continue…]

The Art of Building a Buyers List (Pt 3) – Cash Buyer Postcards That Work post image

When you think about building a massive and engaged list of buyers for your real estate business – what do you think is the best way to get the job done?

As we talked about in Part 2 of this series, there are ALL KINDS of options to choose from – but in my experience, one of the most effective techniques on earth has been direct mail.

Before we go any further, let’s get one things straight – direct mail is not an idiot-proof strategy. To get great results out of a direct mail campaign, there are a lot of things you have to do right…   but if you take your time and think carefully about how you’re executing this process – you’ll see what I’m talking about.

Direct mail works and this is an undeniably effective technique that can get some serious results. [click to continue…]

The Art of Building a Buyers List (Pt 2) – 50 Proven List Building Strategies post image

If you’ve managed to stumble across this blog post without first seeing Part 1, I’ll start this off by explaining where you’re at.

This is Part 2 of a 4-part series of blog posts where we’re addressing the following steps on how to build a buyers list:

Part 1: Laying the Foundation

Part 2: 50 Proven List Building Strategies

Part 3: Cash Buyer Postcards That Work

Part 4: Communicating With Your List

If you’ve already finished Part 1 and put together your list infrastructure, you might find yourself asking, “Now what?”

It’s an important question, because Part 1 was just a small aspect of the overall equation. The REAL power of building your buyers list is in your ability to promote it. [click to continue…]