Are you an Entrepreneur?  When did you realize it? Early on, my guest Adam Cohen, recognized an opportunity others did not. This is a Special Side B, addition to my interview with Adam Cohen.  If you have not yet heard the first interview, I encourage you to check it out.   http://jdarringross.com/real-estate-investor-instinct-trust-gut/ At the age of sixteen, Adam had what every sales person or business owner dreams of.   Unlimited demand and no competition.   Subscribe: itunes   blogtalk radio Adam was one of the first to have a cell phone.  When they first came out, everyone wanted one, but did not know how or where to get them.   Since Adam had one, everyone asked him to get them one.   When asked how much, he threw out a price that was ten times his cost, and nobody flinched.  The phones cost him £500, and people were willing to pay ten times that: £5,000.   Before long, Adam had a closet full of cash and a curious father.  Soon he opened his first store, against the recommendation of friends who thought he was crazy.   Crazy like a fox.   This was the beginning of Adam’s recognizing what others do not,  And most importantly, acting on his gut instinct. Adam sees things differently.   He has the ability to see things differently.  To go in when others say it can’t be done.  

His instinct told him to put his hand up at a real estate auction.  That’s when Adam S Cohen became  Real Estate Investor. He knew the street and what recent sales prices were, and rolled the dice.    Subscribe: itunes   blogtalk radio Instinct is something you have or you don’t.  Adam has it.  He has a sense of things that are not learned in a book. Investors know, there are lessons you learn only after you jump into a deal. Most beginner investors spend days, weeks and more trying to figure out the numbers and if they can make money.  Adam has the ability to see the opportunity and act.  This ability has enabled him to see the situation for what it is.  He identifies who needs to get out and a way for them to get out with some dignity a way for Adam to win.   Lesson he learned; don’t use all of your cash to get into the deal. You need leverage to grow. Initially , Adam acquired properties in smaller coastal towns with few buyers and desperate sellers.  This marketplace provided almost unlimited opportunities for Adam.  Half of the asking price was a typical offer from Adam.  The majority of these were accepted.   Today, Adam prefers dealing in US primarily markets; Los Angeles, Miami, New York & Chicago.  Reasons to stay in these markets include; higher caliber tenant, built in demand for both tenants & buyers.  He likes flips, and buy & hold. For more information go to: http://westoneinternational.com

Real Estate Negotiations are involved.  Negotiations in a Sellers Market can test even the best salesperson.  Unlike a market with a similar number of buyers and sellers, a hot market with more buyers than sellers drives prices upwards to points beyond reason.    Subscribe: itunes   blogtalk radio When a marketplace turns irrational, superior negotiation skills are required to gain a favorable outcome for your client.    Leonard Atlas with Mission Profitable Inc is an experienced Real Estate Sales trainer who helps salespeople focus in order to put the majority of their efforts into the opportunities most likely to close.     As a teenager in his family business, Leonard observed that salespeople can use very different techniques and be similarly successful. I had the privilege to speak with Leonard and go through his “How to be a Better Negotiator in a Sellers Market” presentation.   You can download your own copy of the presentation  Knowing your limits ahead of time allows for the opportunity to stop the process with dignity, leaving the door open for a future deal. For more contact Leonard Atlas at: www.Missionprofitable.com

Beginner Real Estate Investors Jake Stenziano & Gino Barbaro grew their Multifamily holdings to 675 units & $32 Million in 3 years. The first property taught them how to: Collect rentCreate systems necessary for scaling upAdapt quicklyScale upProfessional upAsk the questions to help them buy the property right The property had multiple issues: Weekly rentersNo leasesVacanciesRegular visits from local police The turnaround took almost a year, but the efforts continue to be pay dividends.  The problem tenants are gone, the tenants that stayed are grateful they have a safe home.  The mail lady is no longer afraid to deliver the mail.   Jake and Gino found that the real acceleration for growth comes from networking.  Relationships are  the keys to getting the first look at deals from Commercial Real Estate Brokers.  To establish this relationship, they first had to prove themselves.   The only way to prove yourself in Commercial Real Estate: get the first deal done.   Once you have proven you are a buyer, and are clear on what you are after, brokers recognize you as a buyer and will bring you deals that fit your acquisition strategy. The Keys to their success: Buy RightManage RightFinance Right.   These are the principles behind Wheel Barrow Profits, their number one book on Amazon.com. Value of partners: allows scalability, and the opportunity to get into bigger properties and be more of an Asset Manager than a Landlord. Strategy they use for real estate investing: Value AddBe CreativeLook for stale listings To contact Jake or Gino go to: Jakeandgino.com  

Why do Landlords not require tenants to carry Renters Insurance? SURVEY; APARTMENT FIRES To get a License, you have to have insurance.To get a loan, the Lender requires that you have insurance.To lease a commercial space, the LandlordTo rent an apartment, the Landlord? Why have Residential Landlords, Investors and Property Managers allowed Tenants to go without Renters Insurance? Multiple surveys of Renters confirm that somewhere between 56 to 72% of Renters DO NOT purchase Renters Insurance.  I have asked multiple insurance adjusters and firemen what they believe the number is as high as 95% go without insurance.   Renter myths on why not purchase insurance: Myth #1: "I don't have enough stuff to need insurance coverage."Myth #2: "Since I am a renter, my landlord will cover property damages."Myth #3: "Renters insurance only covers my personal belongings."Myth #4: "Renters insurance is too expensive." *(US News & World Report) What happens when you have a fire? If your tenant has Renters Insurance, and the Rental Agreement holds the tenant responsible, the Renters Insurance will pay for repairs to your property.If your tenant does NOT have Renters Insurance, you will have additional costs: DeductibleIncreased cost of Insurance due to the claim. If you own multifamily property and do NOT require Renters to carry insurance, I believe you need to ask yourself why. For information on an easy solution.

Communication changes.  What are your Commercial Real Estate Communication Options?continue to change.  Until recently, if you wanted Telephone, TV & Internet, you might have had three different providers.  Now all three can be provided by anyone of a number of different companies throughout the world.  Today, most homes have more bandwidth coming into them than the SUM of bandwidth NASA had twenty years ago.   Recently I spoke with Jon Arnold of JA Communications Group Inc about the current and near future for Communication Options in Commercial Real Estate. Cell phones and wireless devices can confuse consumers to thinking there is not a need for a connection to a landline.  However the volume of data that is transmitted is continuously increasing and demanding faster transmission rates for more volume, requiring bigger solutions.   Communication sales are provided one of two ways: Direct through a provider sales force Through an Agent representing multiple communication companies.  The Agent model provides the same cost to the consumer as the direct sales model.  The Agent has access to multiple communication companies which allows the agent to assess the client  needs and offer a communication company that is a best match. Options for communication connections and bandwidth include: Non-Guaranteed bandwidth provides for only a “best effort “ amount of bandwidth: DSL Cable Guaranteed bandwidth, guarantees the amount of bandwidth provided.   Before selecting a service, it is best to have an understanding of what your needs are. CLICK here for the Benefits of working with a Telecom Agent for your CRE.

When you invest in Real Estate, you know that when you sell, you have to deal with Capital Gains Taxes. Traditionally, there have been three options: Sell & pay the Capital Gains Tax Do a 1031 Exchange Do Nothing Rising Real Estate values have compressed Cap Rates, ie 3% or lower.  If a seller wants to sell while prices are high, but is unable to find a suitable option for a 1031 Exchange, there is another option: Deferred Sales Trust The Deferred Sales Trust provides the opportunity to Diversify your portfolio Take advantage of record sales prices Convert the real estate into other investment Richard Hershey with WeReduceTaxes.com explains how a Deferred Sales Trust provides an alternative for Real Estate Investors, The Deferred Sales Trust process works similar to a 1031 Exchange with the use of a neutral 3rd party intermediary. There are 3 steps to the process: 1) Buyer & Seller come to agreement on the sales price. 2) Seller transfers the property into the Deferred Sales Trust. 3) The Trust Sells the property to the Buyer. The Benefits of the Deferred Sales Trust: Ability to Sell Real Estate Investment at record highs. Diversification; opportunity to invest in alternative investment vehicles Different life style; ability to get out of the property management business If the property has been owned for a long time, it is conceivable that the property is fully depreciated, and in need of significant capital investment For your FREE copy of “A Way Out Article”for additional information on how this works. For more to to: www.WeReduceTaxes.com

Alternative Financing is not just for the desperate.   Alternative Financing comes in many flavors and forms.  Alternative Financing, outside the box - where conventional financing stops, Alternative Financing begins. My guest Brian DeLucia with Arrivato LLC, provided a look inside the world of Alternative Financing provided through private lenders that fills the gap created where Conventional Financing stops. Where does Alternative Financing capital come from? Private funds raised through Ultra High Net Worth Families and Family Offices looking for a return greater than that available through conventional markets and old school brokerage opportunities. Does Alternative Financing equal “hard money”? Not Necessarily. Hard money is typically associated with rates far above the advertised rates, 10% and more.  Alternative Financing is often referred to as “semi conventional” with rates between advertised and Hard Money rates.   Additional opportunities for Alternative Financing might include: Recent credit challenges of the borrower, if the property is considered stable.   Type of property; construction, location, or limited usage.   Hospitality properties that have lost their flag and need to update the property Quick closing, ie: within 2 weeks Unconventional / acceptable tenant This type of situation is an excellent opportunity for an Alternative Financing.   For more information, goto: http://www.arrivatollc.com/    

The first deal is the toughest.  Nobody wants to do your first deal.   Do you know what you are doing?  Nobody including you know, and nobody wants to find out. So what if you don’t have experience in Real Estate, have no deals under your belt, and still want to get in what do you do?  If nobody will give you a chance, how do you get the first deal done?   Everyone knows someone in Real Estate and has heard the success stories, and thought, "I need to do that".  But who knows the hard work it takes to get in, find capital, find a deal and make it happen?  How many have done their first deal? To hear how Jonathan Twombly made it from an unhappy New York Lawyer through his first deal and now a successful Real Estate Asset Manager, check out my interview with Jonathan Twombly of Two Bridges Asset Management. Strategy: Who to work with:  Jonathan’s relationships lead him to multiple partnerships enabling him raise capital, find the professionals that lead to the off market opportunities that are saved for proven investors.   Where to invest:  Knowing the data can go a long way to minimizing the risk involved.  Is the area population growing? What to invest in:  A, B, C, D class real estate? What  are the new projects for working class housing, class B & C? Check out Jonathan’s  blog: http://www.themortarblog.com/ & get  "The Ultimate Guide: Newbie to New Pro in Just 21 Days!"

If you are currently required to purchase Flood insurance, listen and you will like what Steve Gill with Flood Risk America has for you about how to save on Flood Insurance.   Flood is excluded from any standard property insurance policy.   Flood Insurance is a requirement of any mortgage against a property located in the 100 year Floodplain, if the property has a finished first floor is below the base elevation.    The Flood Insurance Reform Act of 2012 required that the Flood Maps be updated in an effort to address areas of repeated flooding, and provide an accurate assessment of the risk and the premium needed to make actuarially certain that premiums were adequate for the risk. This new information has placed many properties that were previously above the base floodplain elevation are now under the base floodplain.  The change in elevation is resulting in significant increases is Flood Insurance cost to the property owner. Per Steve Gill, owner of Flood Risk America, as many as 50% of the maps inspected by Flood Risk America are inaccurate regarding the building’s first finished floor elevation at the address.   When the maps are wrong, providing a Letter of Map Ammendment, LOMA, to FEMA can reduce the Flood Insurance cost as much as 80% or remove the Building from the Flood Zone. Flood Risk America charges a fee equal to 50% of the first year savings.  The savings for the property owner continue for years after a successful challenge.     SPECIAL OFFER for CREPN Listeners Steve Gill of Flood Risk offering a discount of 20% off the normal fee.  To receive your FREE analysis and 20% savings, click the link.