By Pete Youngs (aka Mr. Rehab)

Whether we like it or not, ever since Covid came along the business environment has extremely changed for how real estate investors (as well as other businesses) have had to operate and adapt. In my particular case, not only was I investing in property, but I have been a national speaker for my whole career and do anywhere from 100 to 200 cities a year in live training sessions. Then, suddenly, it seemed as if the world closed down. People were not able to gather in groups of any kind, venues were closed, meeting spaces were unavailable and, in all honesty, my business was completely shut down.

After all, the essence of my business was face to face networking.  At a main event, we could have anywhere between 75 to 300 people as well as field trainings with bus trips handling roughly 50 people.  These weekend bus trips visited properties where I taught inspections, estimating, rehab costs and how to hire out contractors for about 50% off the regular general contractor rates. I was also stopped from doing my favorite and most popular things, such as my Mold Certification training and my Signature Home Depot Nationwide Store Tours that I originated over 20 years ago at corporate.

Now with live and in-person events put on hold during the pandemic (although I am happy they have since resumed), which no one could really predict how long they were going to last, changes had to be made.  I consider myself to be old-school and the people whom I had been speaking alongside of all these decades also needed to adjust how they were to stay afloat.

Originally, I was brought into the business by my brother, Tony Youngs, who is an expert in finding distressed and hidden market properties and I was the fix-up & rehab guy. Tony has set up with coaching calls once a week and one-on-one trainings for years – a smart move to have made. However, the pandemic opened up a whole new breed of people who took advantage of the limited face to face seminars and REIA meetings to those who were internet and tech savvy.

They opened up the world to online meetings – Zoom, etc.  Sure, most people were already there but not very many of us “career investors” were using these tools. So, when everyone found out that they could sit at home in a pair of pajamas and watch seminars without making the trip to an in-person event, a lot of them loved that concept. Even some of the REIA groups fell for the idea that their overhead costs would go down if they went that direction – room rental, food & beverage, speakers’ travel costs, etc.  However, many of the REIA groups who were not tech savvy lost their businesses, failed or even sold.

Now, I will explain my reason for sharing all this background. Recently, I adjusted to the market by changing my business plan.  My wife Barb and I used our IRA accounts with Camaplan, and started using our tax free and tax deferred plans (CamaPlan is a National REIA preferred vendor) to replace our incomes.  We bought two REIA groups that I run personally, North Metro REIA in Atlanta, GA and Metrolina Reia in Charlotte, NC.  We did this because live and in-person trainings are getting back up to speed. While most REIA’s are not back to full rooms, I can’t stress enough the huge advantage face-to-face and the in-person networking that goes on in REIA’s all across the country.

Attending meetings and swapping business cards with buyers, sellers, private money lenders as well as the education that is brought to you each month is really unmatchable – anywhere.

In addition, know that if your REIA is a member of National REIA, the benefits also include 20% off almost every paint in Home Depot and a 2% biannual rebate, cabinet and appliance discounts, as well as many other money-saving benefits from other providers.  You can see all of the member benefits on National REIA’s website.

But most of all please remember this;  There is no better investment than membership in your local REIA group (especially one affiliated with National REIA).  Where else for the cost of a nice dinner out can you improve your future? There are opportunities out there every day. There are those who sit at home and hope that some clearinghouse or lottery is going to deliver a life changing event to their mailbox and then there are people who realize that if you do not move, you never go anywhere.

That being said, my last thought to leave you with is this; Don’t let someone who gave up their dreams convince you to give up on yours… Think about that for a moment and thank me later.

Pete Youngs also known as “Mr. Rehab,” is a national speaker on rehabbing homes for up to 50% off.  He does seminars and bus trips promoting his training system called SWAT (Simple Ways And Techniques).  He has been a contractor/investor for over 30 years.  Learn more about him at PeteYoungs.com.

by Pete Youngs

One of the most common things I run across no matter where in the country our properties may be, is theft or vandalism. I don’t know any investor that has not faced this as sad as that may be. It doesn’t always have to be serious, but it is always inconvenient. From neighborhood kids tagging with spray paint to full blown breaking & entering and burglary, you will want to avoid this if possible. Here are my suggestions.

My first and favorite tip is to use regular car wax – yes, the car wax that you use on your car – on the windows so you can’t see in. It doesn’t matter if you use Turtle Wax from a tin can or Simonize from a squeeze bottle. All you need to do is take a sponge or rag, cover it with the wax, then wipe the glass windows totally to cover them up. When the wax dries, you will not be able to see inside the building. I do all the lower windows including the garage door windows. This way no one can see any tools, building materials, ladders, paint and such that someone might want to steal.

The benefits of using wax are that it covers lots of area inexpensively. Compared to installing an alarm system or hiring a security guard, this repels most unwanted visitors for literally under $10. No window shades or curtains are needed during fix up and clean-up is a breeze. Just wipe windows down with dry cloths and it comes right off – fast!  It also reduces fog and condensation on the glass. That’s cool, right?? The best part is that if your workers spray, brush or roll paint on the windows they will become squeaky clean after scraping the paint of the window panes after even brushing them.

You will also want to keep the place looking as if someone is there on a regular basis. This can be as simple as keeping newspapers and advertising picked up from driveways, doorknobs as well as regularly emptying the mailbox. Move things around, too.  If there is not a trash can outside, put one out there. Regularly move it from one spot to another.  Talk to the neighbors and let them know who you are and give them a contact number in case they see something unusual – especially people working when you’re not expecting work, such as late at night, Got it?

Keep the grounds spiffy by making sure the grass is cut. This is the most obvious thing that a house is vacant (tall grass, unkept yard, etc.) and will attract unwanted visitors. Open the upper story windows occasionally on the front of the house so it can be seen from the street. No one can see in the upper windows, but it does show signs of people being regularly at the house.

Never leave ladders and such on the outside of the house. Ladders give someone the option to see in the upper windows (unless you waxed them like I said). Never leave empty 5-gallon buckets around the outside as they can be used like a small step ladder to gain access. Always keep paint cans and buckets inside the locked house. Vandals that find paint outside can splash it all over the house, garages and driveway causing damage to your property.

As far as tools and materials are concerned, you should protect them the best you can. No one knows better than me that after 30 years in the rehabbing business, I hate moving all my stuff on every job. So, what I do is make a safe place for my expensive tools and equipment and leave my easily replaceable things out. This way if a thief gets in, they may settle for the “low hanging fruit” for a quick in and out without searching for my more expensive tools. I may lock up all my power tools in something referred to as a “gang box.”  It’s like a big tool box on wheels that locks up tight and is hard to break into. A gang box is also quite large and heavy meaning when it is full, you can’t lift it to put it in a truck with even two or three people. Therefore, they will have to make some serious noise trying to break it open and will be at a greater risk of getting caught than they will want to take,

As far as paint sprayers and pressure washers that you can’t put in a gang box, here is what I do; I find a good sized closet in the garage or a bedroom to store my bigger items and paints. Remember the widows are waxed so you can’t see in, but once I put my bigger items in the closet, I put a keyed lock and a deadbolt on the door making it a lot of trouble to get in. Plus, considering the fact that you can’t see in there, you might not risk breaking in.

Remember, an ounce of prevention is worth a pound of cure. You may choose to do this to a whole bedroom or downstairs area in the property if you need the space to store things.  Most people don’t know this so I will tell you; When you are putting in hardwood floors, you need to store the uninstalled flooring in the property for 5 to 7 days so the wood acclimates itself to the climate of where it will be installed.  NOT doing this will cause your floors to shrink after installation and leave cracks, gaps and imperfections. If your installer does not tell you this, TELL them. This is very important. Likewise, a locked room will stop your flooring from being stolen during acclamation process.

The above recommendations are just a few of the many that I make during my live trainings as well as in my S.W.A.T. training systems (Secret Ways And Techniques) and Rehab 101.

Pete Youngs also known as “Mr. Rehab,” is a national speaker on rehabbing homes for up to 50% off.  He does seminars and bus trips promoting his training system called SWAT (Simple Ways And Techniques).  He has been a contractor/investor for over 30 years.  Learn more about him at PeteYoungs.com.

By Pete Youngs

Beginners and seasoned investors alike are prone to making mistakes. Most mistakes can be easily avoided by just listening to people talking at your local REIA group or in meet up sessions.

Some mistakes are minor and have little impact on the end result of selling or renting your property while others can become nightmares. This will not be the only portion I write on mistakes, but this one I am sure will affect everyone at some point in time.

One of the most guaranteed things you will have to do in your own house or investment property is painting. If you do it yourself or hire it out, you MUST know and follow this advice. You cannot paint latex paint over oil-based paint at anytime. It will peel and flake badly within about 3 to six months. Also, the paint will easily chip and scrape off as latex paint does not adhere to oil-based paint. You can however paint latex paint over an oil-based primer. I always use an all-in-one oil-based primer and sealer, such as KILZ or ZINZER. This will prime, seal in any stains and can be painted over with any latex paint.

To know what type of paint you are painting over, there are a few ways to test the surfaces and paint over it correctly. You also may have heard of Goof Off, a canned liquid whose claim is that it removes dried latex paint. This costs about $5 in hardware stores for about 4 ounces. Squirt this on a white rag and lightly scrub an area on walls, trim, windows, doors and gutters or whatever you are going to paint. If it melts the paint on to the rag, its latex paint and you can easily just paint over it with latex, no problem. If all it does is clean the surface and no paint melts onto the rag, it is an oil-based paint and must be painted with oil again.

There is another way to avoid having to paint the oil-based paint. If you use an oil-based primer/sealer (like KILZ) to prime the previously painted surfaces, you can paint latex on top of the oil-based primer and from here to eternity you can just paint latex on you house. That is how you change an oil painted house to being the easier latex painted house forever. You may also use XYLENE or DENATURED ALCOHOL instead of Goof Off. This will ensure that your painted surfaces resist peeling away.

Another common mistake is how do-it-yourselfers and painters paint cabinets and paneling. The finished product can show runs, drips and brush marks making the job look shoddy.  To paint any stained surface, first wipe it down with white vinegar in full strength with a sponge or cloth. This will remove grease from cabinets and oils from wood stains and paneling. Then I apply one coat of KILZ oil-based primer. Before I apply the primer/sealer, I have it tinted to the same color I am painting the cabinets or paneling (usually a white color). With the white vinegar and the sealer/primer applied, I am positive that my latex paint will now stick. But here is the kicker !!! No matter what brand of paint you use (I use BEHR marquee from Home Depot) It MUST say “self-leveling” latex paint. This self-leveling paint is designed to dry smooth as glass and never leave brush marks or runs on the surface. Most people even professional painters, do not use my vinegar, sealer/primer and self-leveling paint techniques and end up with cabinets that have runs, drips and brush marks as well as paneling that will let stains seep through within a short time after painting.  Which will certainly look bad and need repainting.

I have hundreds more techniques like this to share that stop costly mistakes and I plan on writing about them all in the future.

Pete Youngs also known as “Mr. Rehab,” is a national speaker on rehabbing homes for up to 50% off.  He does seminars and bus trips promoting his training system called SWAT (Simple Ways And Techniques).  He has been a contractor/investor for over 25 years.  Learn more about him at PeteYoungs.com.

By Pete Youngs

Full-time real estate investors are always looking at any and all possibilities no matter where they go.  Keep in mind that you will never go anywhere in the world that real estate is not the biggest product for investment you will find. Done properly, every trip you take is a potential deal just waiting to happen.

On one of our cruise voyages with Carl and Vicky Fischer we, as always, looked at properties. With all the newest ways you can profit from real property and the fact that we are associated with many real estate investment groups nationwide, our buyer base is literally unlimited. Even if it is not something you would want to do personally, make sure you don’t pass up potential money-making situations.

We know people and groups that love the idea of Airbnb as this has become a world-wide opportunity.  During our recent cruise, we went to Oahu and Maui in Hawaii.  Wouldn’t it be great to own a place in paradise to rent out when you weren’t using it? But, think about this; I don’t always have to be the prime investor. Maybe it is not your dream to have property in Hawaii. But to a lot of people this would be very appealing and profitable. So, at one of our stops to eat lunch at a place recommended to us, we found that it was part hotel and part condominium.  After our meal, we inquired with the sales department about 1-, 2-, and 3-bedroom units. We gathered some written materials on price and layout and the views from each of the sizes available (very important).  Then, the next step was getting comparable sales, days on the market and a background of what the rise or decline of sales prices have been over the past year or two. Now, even if it doesn’t appeal to us, we have a network of buyers to pass this information onto and treat it as a possible wholesale deal where we can profit by selling the contract to an interested investor.

Yes, it’s true.  You don’t always need to be the end-buyer.  You can have multiple income streams by being the bird dog!  Keep in mind that the extra time it took to check out the condos where we had lunch anyway only took about 30 extra minutes.  Even if we don’t profit from a deal, we at least have the ability to possibly take the trip and the cost of lunch as a business expense. How would you like to lower you travel costs considerably by using common investment strategies that qualify as a tax deduction?  Your real estate attorney can quickly fill you in on what you can and cannot do.  Be sure to consult him or her before acting on this advice.

Our next stop was at a group of islands in Fiji. If you didn’t already know it, Fiji is a beautiful country and I always think of Tony Robbins and his motivational expertise as this area has memories of his of trainings.  While on an excursion from our cruise ship, we bypassed the onboard vendors and chose to hire our own private van & driver to take us to where we wanted to go. I have found that when I get a tour from the boat, we end up at tourist- and many times later find out that the driver received a cash kick back before leaving (I actually saw this) for taking the group there. I have also been told by independent drivers that most of the time, the contract drivers are related by family to some of the “STORES” where we stopped.

As we headed to some of our requested places we wanted to see, our driver told us of a place that had been damaged by a storm but since it was not a boat sponsored location, it was slowly rebuilding back to being a local favorite. I have found that cruise sponsored places receive help and money for repairs a lot faster so boats can resume making money from the excursions.  The place where we went had no such help. The main attraction were small to giant sea turtles that you could feed from the shore as well as swim with them in a lagoon. It was a very nice area but you could easily tell that it was damaged from strong winds. It also had some huts that were used for offering BBQ buffet as part of the experience. There were three buffet huts but only one was open. Then we saw the area had several shower huts and bathrooms along the 100-foot-wide lagoon, but only one hut was open. A little further walk revealed several varieties of sharks swimming in a protected area where visitors were allowed to feed them. This was exiting being able to feed, film and watch the sharks up close. We also talked to the locals working there and got a lot of background information about the area.

As I have been trying to point out, real estate deals pop up everywhere without warning. You never know when an opportunity will present itself, especially when you least expect it. None of us paid too much attention as we first entered the lengthy dirt road leading to the venue, but there was a “for sale” sign just outside three or four mediocre houses that were shrouded with line-strung laundry about a quarter mile before we arrived. As it turns out, the people selling the houses were also the ones who owned the property that operated the venue with the turtle and shark experience. The bad storm had knocked down the other for sale signs showing that the whole venue was actually for sale, as the owners did not have the resources to rebuild. They got the place up and running just enough to buy food and pay bills but were overwhelmed with the longer term prospect of fixing it back up.  Now their option was just to sell it all!

Obviously, sirens and light bulbs were going off in our heads trying to figure out exactly what these people needed in order for there to be a winning situation for both buyer and seller.  Investor mode had kicked in and ideas started running through our heads. So, we now know to get a plat of the land to see just how much there was.  There were at least 100 acres or more.  We also needed to find out if you can own property outright, lease it and/or what other restrictions there are for acquirng real estate in Fiji.

Now keep in mind that there are so many ways this can be investigated for different uses. Would this be something where investors just fix the venue and use it for a wildlife attraction? Most people don’t automatically think this, but it is potentially something to get under contract and maybe offer to a hotel chain, for example.  Do you get interested people to come in and build luxury houses or even a subdivision?  There are many options – hotels, condos, restaurants, shopping, retail, even mixed use.  Do you think that the distressed owners would see “the win” for both sides if they walked away from a tough situation with a life-changing amount of money that would take care them for the rest of their lives?

Now let me ask you this…Have I changed even just a little bit about how you may look at things on your next trip or vacation?  Do you see that opportunity is everywhere and most people walk or drive right by it never knowing your life could be changed in a glance of a hidden sign on a tree?  Remember, this was a chance-sighting based on the fact that we decided not to use a cruise ship excursion and went with hiring a lower cost local – who took us to places that were really exotic and not tourist traps.  I am writing this as we are still doing our due diligence, but I will definitely keep anyone updated who follows my writings and real estate techniques.  Though my primary expertise has always been in the fix & flip scenario, I have over three decades of real estate experience and it just keeps growing!  Remember, never stop learning and always keep an open mind – especially when traveling.

Pete Youngs also known as “Mr. Rehab,” is a national speaker on rehabbing homes for up to 50% off.  He does seminars and bus trips promoting his training system called SWAT (Simple Ways And Techniques).  He has been a contractor/investor for over 25 years.  Learn more about him at PeteYoungs.com.

Part of my real estate trainings of rehabbing properties is that I became an instructor for EPA lead-based paint, RRP rules and regulations as well as mold inspection classes for investors. The main point on asbestos, meth, mold, lead etc. is to clean or remediate the area while containing dust and protecting people. The best scenario is to always hire professionals for the job, however, these are the steps involved.

For properties that have tested positive for methamphetamine, care should be taken right from the start.  Meth residue in a property can cause burns and rashes as well as stomach sickness and much more. Some reactions can cause serious illness or even death!

No government agency actually regulates how to handle a meth house but the EPA does have a set of guidelines called Voluntary Guidelines for Methamphetamine Laboratory Cleanup (available at EPA.gov).  Be sure to check your state mandates, as well, to make sure your property meets their requirements to occupy.

As in most EPA related problems found in a structure, Personal Protective Equipment (PPE), should be worn during the inspection to plan the clean up as well as during the cleanup itself.  The standard is the Tyvek suit (white zip up cover) glasses, boots, gloves and a particulate mask. These are not expensive and are disposable, but they are absolutely necessary to wear. As in most of the other courses I teach, the heating and AC unit must be shut down and totally cleaned and not used until the environment has been cleaned. If not, you are just spreading the dust back inside and recontaminating the whole house. The last thing you want are toxic particles in the air. You should use blowers and negative air scrubbers to clean the air. They can be rented at most local tool rental places.

In my initial assessment of any property with a dust related problem, an air sampling machine is used to collect an air sample and then sent off to a lab that will tell you everything that is found in the air that is a contaminant.  I use a Zefon Bio-Pump with an air-o-cell cannister to collect the air sample and send it to a company called Pro-Lab. You or your contractor may differ.  Once the lab results come back (usually about 48 hours) then the scope of work can be planned.  It is best to do one room at a time instead of the whole structure at once. At this point you should know how bad each room is affected based on the lab results – as well as how many blowers and air scrubbers, the amount of cleaning materials, trash/debris removal and the amount of PPE that you will need.

After the lab results are back would be the best time for you or your contractors to remove all affected material. Certainly, any carpet & pads are “toast” and should not be reused. Curtains or any other cloth related items should be removed as well. Most hard items can be cleaned and not have to be replaced such as countertops, sinks, cabinets etc. All hard surfaces must be cleaned with a soap and water solution and dried.  Keep in mind that bleach and harsh chemicals (may) mix with some compounds left in the structure and could become toxic when mixed.

Once the material needed to be removed is gone and the hard surfaces have been cleaned you should ventilate the house for at least a whole day or more with the blowers and air scrubbers to eliminate anything the cleaning may have kicked up into the air. During the cleaning process a good quality shop vacuum equipped with a HEPA filter system should be used between all steps, changing the HEPA filter as needed. Pay close attention to cleaning anything with grooves, cracks, window panes, sills, or anyplace that dust could settle have settled and gotten overlooked.

Keep in mind that the heating and AC has been shut down and should be the last thing to be cleaned – by a professional. When cleaning any EPA type contaminant, you always start from top to bottom. Starting at the ceilings and lights all the way down to the floors and trim. Don’t forget any exhaust fans or vents.  Also remember that any materials that the previous occupants used (chemicals and debris) may have been disposed of in the sinks and toilets. It’s a good idea to have your plumbing scoped and cleaned out very well.

Next, you will want to test the air again by the same method as before and send it back to the same lab for comparison with the first test. It should obviously contain much lower numbers. Check these numbers against your state’s requirement to reoccupy and if it is still elevated, retrace all your steps and redo the procedures until the numbers are much lower. Do this until you have met your state’s requirements.

Pete Youngs also known as “Mr. Rehab,” is a national speaker on rehabbing homes for up to 50% off.  He does seminars and bus trips promoting his new training system called SWAT (Simple Ways And Techniques).  He is contractor/investor of over 25 years.   Click here to visit his website, PeteYoungs.com.

By Pete Youngs

1. How long have you been in business in this area? This is important because you want them to be established. In many cases, you may run into a company that is new and you will have trouble getting older references and such. If they have a good history in the area, you are less likely to have someone take your money and run. I like a 5 year history or more.
2. How many workers will be on the job daily? I want to make sure that there are enough bodies to do the job in a timely manner as well as not have half a crew on most occasions. If the job is small, it’s ok to have a couple of workers only. On bigger jobs, I want manpower as we know time is money. Also make sure who you are dealing with will be on the job too. If they won’t, they probably hired the work out to subs and are making money off you.
3. Are they licensed, bonded and insured? I do prefer that they have this in place however, I regularly hire small jobs that the individuals don’t have it. In my SWAT system (secret ways and techniques) as well as my famous Rehab 101 system I have a 225 document forms cd. In this, I require all workers to sign my Waiver Of Liability as well as my Lien Release form to protect myself against injury or property damage. Many times I will hire workers from new home construction sites to do “side work” for me. I know that if they work for a builder full time, they must have a license and insurance or they would not be hired by them.
4. Have they had any complaints locally or with the B.B.B. ? I will overlook a minor complaint or two provided that they have been resolved. When you file a complaint with the Better Business Bureau, they contact the party and give them the opportunity to make it right or work it out with the consumer and if worked out there is no need for alarm. If they have multiples and they are long lasting and not resolved, I will not use them.
5. Will they supply you with 4 to 5 references? This is important because everyone will have 3 good references to give but sometimes these are friends or relatives and will say good things anyway. I want number 4 to be someone that they went back after being paid to fix a problem or touch up. This insures integrity in the company or contractor that they stand behind their work. Number 5 is I ask them who their material suppliers are. I can call the paint store or material supply yard and ask them if they have had complaints there. Like if Sherwin Williams was a supplier, I would call and ask them about any complaints and also if they would recommend the contractor.
6. Can I use my contract or do they use their own? Once again, my 225 forms cd has all the contracts and such that it protects me as well as being fair to both sides. You want to spell out the pay schedule, such as paying as work is completed or “draws”. This way you are not paying for work that is not done yet. Do you need to pay a material deposit? Use the term Balance Paid On Completion to make sure all work is done. Hold back 10% until a punch out list is completed to your satisfaction. Otherwise you may end up with an unfinished job.
7. Will you supply me a written warranty for labor and also a copy of the manufacturers warranty from the materials? All materials such as paint, carpet, roofing and so on have written warranties on the labels or description. Make sure they will give you this info in writing as part of your contractual agreement so if anything goes wrong you are covered. Remember to put any and all details even if as an addendum to the contractors paperwork no matter how petty it may sound. Your contract is your protection as well as the workers proof that they should be paid for their work. It works both ways so pay attention to detail. You will see many more articles and advice if you keep returning to PeteYoungs.com and research My new SWAT system and award winning Rehab 101.

Pete Youngs also known as “Mr. Rehab,” is a national speaker on rehabbing homes for up to 50% off.  He does seminars and bus trips promoting his new training system called SWAT (Simple Ways And Techniques).  He is contractor/investor of over 25 years.   Click here to visit his website, PeteYoungs.com.

By Pete Youngs

When buying a property, sometimes it is better to use other people’s money (OPM) rather than your own. This is actually how a lot of successful investors got their start.  There are several different ways to do this, however the two most common are Hard Money Loans or Private Money Loans.

When using a hard money lender, you may have to pay points up front to get the loan, then a percentage rate of interest only payments until the property is sold or the term of the loan has been met. A typical example of this would be as follows. Using round figures, let’s say you borrowed $100,000 at 5 points and 13% interest for 1 year. You would have paid $5000 up front (5 points) and then 13% interest only payments until it’s paid off. Normally there isn’t pre-payment penalty for an early payoff. Also, the lender will typically only loan 65 to 70% of the Loan to Value (LTV) of the property to insure the money in case the loan defaults. The lender will loan based on the after repair value (ARV).

Private money loans are also based on about 65 to 70% of the properties ARV and, unless specified, will otherwise go for 12 months or less. These loans in my opinion are easier to get because more people can do private money than are in the business of hard money. Both hard and private money will secure a lien on the subject property to guarantee payment. While I said private money might be easier, let me share my opinion and clarify why.

Hard money lenders are “in the business” of loaning money and do it as a major income stream, and therefore charge points. A private money lender may do this less frequently and commonly charges a flat interest rate without points.  Private money can be a person loaning money from a self-directed IRA or 401k and do it for a tax-free or tax-differed return on their investment.

Private money lenders might use a flat rate as well, commonly being about 10% interest only.  This can build wealth quickly and at much higher dollar amounts than just your annual allowance.  If someone is making ½ to 1% interest on their money, then the opportunity to make 10% and being secured with a property is a very appealing prospect.  Private money may also come from other sources such as friends, relatives and business acquaintances.  The rules for using self-directed IRA and 401k funds are stricter, so be sure to do your due diligence and discuss these restrictions with your plan’s custodian before taking any action.

As far as information on using a hard money lender, my suggestion is to join your local real estate investment association (also known as a REIA).  They are the best source for new and seasoned investors alike and offer education as well as reliable contacts for hard money loans, mortgages, insurance, buyers, sellers, contractors and basically everything an investor on any level would need.

When choosing a REIA, I suggest that you find one that is a member of the National Real Estate Investors Association (National Reia). They are a nationwide governing body (a trade association) of investment clubs from all over the country. They make sure that all member groups meet strict ethical and moral standards – which in turn means that you are dealing with the best investor associations out there. I have been a personal supporter and member for over 20 years and attend their annual winter cruises (an vacation with an education…what a blast!) as well as the mid-year conferences to share new ideas and such.

They also provide benefits and discounts such nationwide groups as Home Depot, Office Depot/Office Max and many more.  Please visit NationalReia.org for more information.

Here are a few, but not all, of the requirements that need to be met to be considered for hard or private money loans nationwide:

Prospectus For Private Money Loans

1. You MUST have the property under contract before applying! Otherwise there is no deal for prospective lenders to consider.
2. The terms of the contract must be clearly stated in the offer. This includes purchase price and a specific closing date. Ex. 30 Days
3. The after repair value (ARV) must be documented to show profit. This includes comparable sales and days on market till sold.
4. If using a real estate agent, include listing document for details. Lender will need to know who pays commission affecting profit.
5. All lenders require that renovation estimates be submitted. Profit potential cannot be determined without fix up costs.
6. Our lender’s limit is 65% to 70% of the after repair value of house and is secured by placing a lien on subject property as collateral.
7. The interest rate they receive is 10% interest only paid monthly. Unless specified otherwise, principal to be repaid in 12 months.
8. The money used to purchase the property is sent to the seller. This is done to insure the money gets to the seller securing deal.

The basic guidelines above will give borrowers an idea of what they need before expecting to be considered for private money.

A common misconception is they hear “we loan money for deals” and immediately think it’s any deal.  You can’t just contact a realtor and say Hey send me some deals, I have a money lender.  First, we will but rarely fund properties listed with realtors. We buy wholesale deals not RETAIL. We focus on “fix and flip” deals so we get our money back quick and re loan it.

Always remember THE DEAL IS BASED ON THE INFO YOU PROVIDED before asking for a loan. The more you provide the better your chances.

Pete Youngs also known as “Mr. Rehab,” is a national speaker on rehabbing homes for up to 50% off.  He does seminars and bus trips promoting his new training system called SWAT (Simple Ways And Techniques).  He is contractor/investor of over 25 years.   Click here to visit his website, PeteYoungs.com.

Real Estate Cruises, My Favorite Networking

by Pete Youngs

Most any serious real estate investor will agree that one of your most valuable tools in being successful is the art of networking. In many cases the first thing I would advise is to join your local real estate investment club. This gives you access to many like-minded people who like you want to buy, sell trade and rent properties.

I look forward to the annual National REIA cruise and have been aboard for this networking cruise for almost two decades now. As a faithful follower of National REIA, I have become friends and established great relationships with the staff as well as the hundreds of attendees who flock to this unique event. If you have not attended before, you are missing out on loads of opportunities presented here.

Let me give you some benefits of a real estate related cruise that you may not have considered. The cruise is education based and packed full of real estate strategies for you to learn in a relaxed atmosphere. And, the event, if you care to keep receipts and records of meetings and such, is something that may be able to be written off as business and education expense on your taxes (please consult your accountant). There are many opportunities for you to network with others during lunches, dinners, breaks and the many social functions that are planned throughout the cruise.

Since you have all this information and personal contacts, you can easily prepare your years business plan based on what you learn here. I am a national speaker so I use this time to network with REIA clubs to have me as a guest speaker at events all over the country. I also make many priceless contacts to strengthen my wealth team. I find people to buy from, sell to, speak for as well as making lifetime friends at these events. This will lead to multiple business and friendly relationships, some of them will change your life.

My attending the real estate cruises has brought me some of the best friends I have in my life. Though I can’t list them all, or all their credentials, here are just a few of the life changing and lifelong relationships my wife Barb and I have built from people we met on cruises.

Carl and Vicki Fischer have become a big part of our investment team as well as travel partners. Carl is Principle of CamaPlan , a company that handles self-directed IRA’s and 401K as well as many more investment opportunities. They are partners of Barb and I in multiple ways and handle a portion of our portfolio. As friends, we also travel the world together exploring places we only dreamed of.

Mike and Beth Butler are also friends and partners of ours that we met while cruising more than 15 years ago. Mike is an expert on landlording as well as Quickbooks for real estate and has authored many courses and training materials on these topics and more. He also wrote best selling books on real estate related topics. Mike and Beth mentor me on aspects of my career in web design as well as marketing, planning and so much more. Mike and Beth also arrange mastermind sessions with Carl, Vicki, Barb, myself and the next couple I will mention at least once or twice a year so that we can all offer our clients the best and newest information available as we are all national trainers and Mentors.

The next I will mention (as there are so many over the years) would be another long -time relationship. Larry and Pam Goins. Larry is well known for his training courses such as “The Ultimate Buying Machine” and “Filthy Riches” just to name a few. Larry and Pam are also travel all over with all of us . We all enjoy sharing ideas and helping each others businesses grow so we can be the best at what we do. And how could I not bring up our other friends from the Goins Group, Matt and Kandas Broome. Both are great friends and have brought much insight to all we do. Kandas is almost magical at keeping us on top of our game and Matt is our sounding board. What a team!

As for myself, I am known as Mr. Rehab, a general contractor of 30 years turned investor about 25 years ago. I teach rehabbing properties for about 50% off regular contractor rates and give Home Depot tours, estimating property tours, bootcamps and speak for reia clubs nationwide. My latest and best training course is called SWAT. Secret Ways And Techniques. You can read about it at WWW.PETEYOUNGS.COM  But enough about me. My brother Tony Youngs brought me into real estate investing. Tony is a Master of Hidden Market properties and unlisted properties no one else can find. He also is one of the top rated one on one trainers in the country and his success rate from students is

Now that brings me to this portion of why you should choose to network all the time, anywhere and everywhere. Carl, Vicki , Barb and I are on a 21 day cruise from Seattle to Australia. And guess what??? It’s a write off !!!

First off, we are both clients of each other. This means that we are taking this as a business related trip and our purpose is real estate as well as investing. At all our dinners and lunches we are making contacts with people who have offered us places to stay for rent in Hawaii, Fiji and Australia as we are stopping at all of the areas. I am picking up the tab on a lot of my clients costs as well as him mine.

We are making contacts to broaden our portfolio’s buy seeking properties at all our stops. We are looking for vacation homes as well as rentals, commercial buildings business opportunities and such. Sure we are having a blast on the cruise and the foods great and the contacts are endless.

In a nutshell, it works like this. No matter what you are doing , make it about real estate or business. Our goal is to find properties in these very desirable areas so that we may use them as Airbnb. We are looking for any thing to build our business deals and our property ownership. Cruises are my favorite way to vacation. Now it is my favorite way to network. And If you can write it off as business with people you enjoy hanging out and working with, Its all good!!!

Pete Youngs also known as “Mr. Rehab,” is a national speaker on rehabbing homes for up to 50% off.  He does seminars and bus trips promoting his new training system called SWAT (Simple Ways And Techniques).  He is contractor/investor of over 25 years.   Click here to visit his website.

For more information about the National REIA cruise, click here.