There are several reasons for this. While commercial buildings obviously mean bigger paychecks, in our current economy they also mean a lot more carrying costs and less cash flow unless you are able to turn them quickly. To be really successful in commercial real estate, you really need to be an expert and invest a lot of time in these properties. In fact Kathy Kennebrook knows of several investors who are “stuck” with commercial properties they can’t move in the current market.

Now Kathy does like to invest in storage units and small apartment complexes since these are much easier to manage and the cash flow is greater even in a depressed economy. Plus you end up with several rental units in the same location which makes managing them much easier and the cash flow even greater.

With storage units the “eviction” process is much easier and with small apartment complexes, even if you have one or two units empty the rest will carry your payments and continue to cash flow. To Kathy’s way of thinking this makes perfect sense.

While Kathy Kennebrook does not currently own any storage units, she has in the past and these buildings create really great cash flow and are very easy to manage, so if you are interested in commercial real estate this might be the way for you to go. Kathy Kennebrook’s greatest love still continues to be single family homes since everyone needs a place to live and these properties offer excellent long term benefits. Kathy currently lives in a smaller community and there just aren’t that many storage units or apartment complexes available for sale so Kathy is working primarily in the single family home market.

For more information on all the resources you need for your real estate investing business, visit Kathy Kennebrook’s website at www.marketingmagiclady.com. While you are there be sure and sign up for Kathy’s free monthly newsletter. When you do you will receive an additional 149.00 in relevant real estate information absolutely FREE

By Stephan Kasian, PHD

            If you haven’t been at least somewhat rattled by the major economic earthquakes hitting the U.S. and world economy in recent times, then you need to have your pulse checked. Let’s face it, these are challenging times. And you are not alone. Other entrepreneurs like you feel the pain, too. Just ask Kathy Kennebrook and she can share what she and her students have experienced.

            “The only constant is change,” said my father, a brilliant electronics engineer who retired handsomely from the military. This article will give you some eclectic tips to stay afloat to survive and prosper during these dramatic changes. These strategies come from my psychology background plus decade and a half experience as a real estate entrepreneur mentoring countless students and helping hundreds of clients.

1. Manage stress. “Stress will kill you,” says my mentor Dr. Bernando LaPallo, age 108, and alive and well. (And yes, he has been featured in the news; the media verified his age.) He is living proof of the longevity that proper stress management can bring, and reveals some of his secrets in his book Age Less Live More. The guy smiles and laughs at life and retains a positive mental attitude no matter what countless challenges he has faced—and breezed through. He lived through the Great Depression. It was his positive attitude that saw him through those dark times. This is not just lip service or New-Agey hype. Solid medical research proves this to be true. Some specific ways to manage stress for the busy entrepreneur: exercise every day. Even if its for 5-10 minutes of walking, calisthenics, stretching, or yoga. Do it daily. Your body will thank you – and you will be able to think more clearly because of it.
2. Eat properly. Don’t skip meals or overeat. I notice that when I am stressed out I lose my appetite and forget to eat. This bad habit can deprive your body of vital nutrients to stay strong and healthy. Conversely, when some people are stressed out, they overeat. Also eat the healthiest diet possible, minimizing caffeine, sugars, dairy. Stick with light, green, organic foods whenever possible.
3. Get adequate sleep. Most modern working professionals don’t get enough restful sleep. If you don’t get enough sleep, it affects your decision-making, and decreases your ability to manage stress properly. As all consuming as real estate can be, don’t let it ruin your sleep—you need proper sleep so you can stay in your optimum mental state to deal with challenges. Keep a regular sleep routine as much as possible.
4. Live in “day tight” compartments. Read Dale Carnegie’s timeless classic: How to Stop Worrying and Start Living (the companion to the bestselling How to Win Friends and Influence People). In it, he explains how the highest achievers don’t worry about tomorrow or fret over yesterday. They stay present in the moment simply focusing on doing one thing at a time, exceptionally well. Earl Nightingale in Lead the Field, said how each day, lived to its fullest, creates the successful foundation to a happy and healthy life. So, if you have a problem property or cash flow issue, do everything you can about it today, but don’t let yourself worry about what might happen. Also don’t let the concerns about your real estate business leak into and affect your personal, family, or relationship time.
5. Make a written plan and stick to it. Break down your plan into written steps that you can act on every day to get you closer to your real estate goals. For example, every day I strive to write at least 3 pages (credit Gary Halbert) to support my information marketing activities. I mandate a weekly staff meeting by phone to make sure we are moving forward on all our properties, and make myself available on a daily basis to check in on properties as needed. I know that this is a strategy that Kathy Kennebrook implements in her business as well.  A former client of Michael Gerber’s company, every day I engage in “e-myth” practices to better and better manage, plan, and track systems relating to the business to help it run more smoothly. I also do at least one thing a day to move forward on revenue generating, credit-line building activities. These daily practices all help me get closer and closer towards my strategic goals. Just ask yourself: what one thing can I do today to move me forward toward my goal?
6. Remain flexible and open to eclectic input. This is a suggestion offered by Dan Kennedy, a brilliant marketing strategist I eagerly strive to learn as much as I can from. In these times of constant change, you must also be willing to adjust your sails to any latest developments. For example, in the real estate world, you must stay open to new short sale techniques, to the latest technological advances, to the changing demands and budgets of the buyers. You even have to adjust to values increasing (or decreasing) in your neighborhood. But the quality of eclectic input means to allow yourself to have a variety of interests…go see a great movie, interact with people outside your industry, read a variety of articles about different topics. Any one of these sources can provide a creative breakthrough or much needed insight that could revolutionize your business—and multiply your profits. My publications and unique strategies give you unique perspectives that return many times your modest investment. Check them out.

In summary, to survive and prosper in real estate—or any other business you are involved in—during these challenging times, calls for more than simply running your business well. You must run your life well. That means managing stress, proper exercise and rest, and a proper philosophy of living in the “now”, following a written plan, and remaining open and flexible to the opportunities that change itself can bring. Be sure and check out Kathy Kennebrook’s website at www.marketingmagiclady.com  to find even more tips and tools to help you prosper on all levels of body, mind, and spirit.

One of the most important aspects to a marketing campaign that is going to work is to create a solid direct mail piece for your business. These are key points for creating a solid direct mail piece that folks will respond to no matter what business you are in including Real Estate Investing.

1. The first thing you’ll want to do is to “touch” your prospective customer or seller with “the dream”, or “the solution” to their problem. You’ll want to touch the basic emotions and the needs of your client or seller within the body of your letter, whether that is fear, relief, greed, pride or vanity.

2. Keep it simple. The grammar doesn’t necessarily have to be perfect. You want to reach this person at their comfort level. Keep your letter relaxed, personal and conversational.

3. Use simple language; don’t fill your letter with big words or technical words or “industry jargon” that your seller or your customer might not understand.

4. I also use paragraphs in my letters so that there is a specific break between thoughts and so the letter just flows better and is more pleasing to the eye.

5. Even though this is a personal letter, I still begin with a powerful headline or first sentence to make sure I have their attention so that they read the rest of my piece.

6. I also list the benefits to the seller of choosing to work with me the investor, as opposed to perhaps listing their home or trying to sell it themselves. You always need to list the benefits of whatever it is you are selling and why they should buy yours.

7. In any piece you send out you need to have your USP (Unique Selling Proposition). For the Real Estate Investor this is going to be the ease with which you can help the seller solve their problem and/or debt relief. For every business the USP will be uniquely different.

8. Always include a strong P.S. In my case the P.S. is “contact me immediately since we budget to purchase a certain number of homes each month.” This motivates them even more to contact me right away.

9. Create residual mailings so that your seller/customer sees your message over and over again. By doing this you create credibility with your prospect and when they need your services they will contact you first.

When you are creating direct mail pieces or letters no matter what business you are in remember to think about writing your letter as though you are writing to just one person.

For example, you wouldn’t begin your letter “Dear Neighbors” you would begin it “Dear Neighbor” or “Dear Friend”. Within the body of the letter you should write as though you are writing to just one person, so you wouldn’t say something like “all of you” within the body of your letter.

Always remember that if you are handwriting the letter make sure it’s easy to ready, printed might be best. If you are using a computer or printer generated letter be sure and use a font that is easy to read such as 12 or 14 point. And use a type set that is easy to read like Times New Roman.

These few points will help you to create direct mail campaigns that will continue to net you excellent results just as ours have over the years. For specific information on how to create direct mail campaigns to find motivated sellers visit Kathy Kennebrook’s website at www.marketingmagiclady.com

First of all, if you like to buy vacant land, it can be a real challenge at times. For example, many times the parcels you are looking to purchase will not have a street address, making them more difficult to locate. You will need plat maps and street maps in order to locate these properties. One advantage to buying in rural areas is that generally speaking the folks at the court house, the property appraiser’s or assessors office and the tax collectors office are usually easier to work with and very knowledgeable about the local area and property.

If you plan on buying vacant land, I would suggest getting a plat map book which shows the subdivisions and the properties in lot and block. The easiest way I found to do this is to go to the court house or property assessors’ office and ask if they have a copy you can buy. If this is not possible, find out if you can make a copy of the one they have. Sometimes they will let you borrow it, or copy it on the premises. This is another main difference when working in rural areas; they are much more likely to be very helpful to you. Having this tool available will make it a whole lot easier to locate the properties you are trying to buy. If it is possible, you may also want to purchase a computer program that shows this type of information so you have it at your fingertips. There are programs like Real Quest or Win2data available for this purpose.

The other thing you will also need is a street map of the community. Usually these street maps will also show subdivision locations. This also makes it easier to find properties. You can use the plat and the street map together to locate properties you are interested in making offers on.

If you are looking to buy properties in rural areas there are three main ways to find motivated sellers. One of those is to work with a local Realtor. Usually, they are much easier to work with than those in larger cities. They are usually willing to share information for example on why a seller needs to sell. If the first Realtor you talk to won’t help, find another. You do need to be careful in one respect when working in rural areas with Realtors. Many times the Realtors themselves are investors, so you need to make sure they won’t snipe deals from you if you ask them for help with comparables before you have a property under contract. Also make sure the Realtor you are working with has access to the MLS because many of them do not. Sometimes there are MLS listings in these rural areas that can produce good deals for you as well. Additionally, if you plan to list properties with a Realtor, you want to make sure they get listed on the MLS.

The second way to find motivated sellers is to simply use signage. Usually in a smaller community, the sign ordinances are not nearly as strict as they are in a larger city. When you put signs up in the ground or on poles, they are likely to stay there for long periods of time, so using signage usually works very well to find motivated sellers.

The third way to find motivated sellers is to do direct mail campaigns to non-homestead exempt or absentee owners. The program I use to do this is called Real Quest If you go to my web site at marketingmagiclady.com, you will find a lot more information on this company. This program can provide plat maps, sales information, property information, comps, and more. I personally use this program to find motivated sellers in the community I like to buy in.

Another way I use to find all the motivated sellers I need in rural areas is to send direct mail to owners of vacant land whose tax bill has not been paid. This is an easy list to get and can be obtained from the tax collectors office. Usually these are folks who have inherited properties they really don’t want or need.
There is absolutely a lot of money to be made in rural communities and people sell for a variety of reasons. I find the main ones to be estate and probate and pre-foreclosure. All of these situations create wonderful opportunities for buying properties well under their value. Just remember that you will have to be a little creative when you resell these properties since you are dealing in a very small market area. Usually I will advertise in the newspapers of bigger cities surrounding the rural area or work with a Realtor who can get these properties list nationally. There are lots of people who are looking for vacation properties in rural areas.
You will also need to set yourself up with a title company who understands your business, even if you have to train them yourself. I know that the first couple of deals I purchased into land trusts I had to explain to the title company. I even provided them with the deed that included all of the duties of the trustee. Once you have them trained, they can be a real asset to your business, especially when it comes to working with out of state sellers.
Buying properties in a rural area is a real learning experience, but I will tell you that if you take the time and the energy to do it, there is a lot of money to be made, and there is almost no competition for these properties at all.
For more information on finding motivated sellers in rural areas and the Real Quest program, along with all of the other tools you need to find motivated sellers, visit Kathy Kennebrook’s website at www.marketingmagiclady.com. Kathy Kennebrook is one of the top Trainers in the country with regard to marketing and finding profitable real estate deals.

Kathy decided to make a conscious effort to make the meal making process as easy as possible so she could strive to meet her family’s daily needs and develop a real estate investing business at the same time. So Kathy Kennebrook sought out solutions to assist her in providing her family with good nutritious meals that could be prepared quickly.

So one of the things that Kathy Kennebrook did since she loves to cook, was to come up with delicious recipes that were easy and nutritious, some of which she will share with you in other articles. She totally believes in the credo “quick easy meals so you can do more deals”. She also devised ways to make shopping a lot easier, quicker and more convenient, since grocery shopping is one of those chores that takes a lot of time and energy unless you plan ahead.

As you begin your real estate investing business and you start buying and selling a lot of properties, you will find that you can get really overwhelmed by responses from sellers, buyers, bookkeeping matters, closing deals, dealing with contractors and vendors and everything that goes along with running a successful real estate investing business. You always need to be careful to try to balance your business with your family life, and one way to accomplish that goal is to make sure you try to have meals together at least a few nights every week.

Kathy Kennebrook found a really wonderful company that can help you accomplish that goal and assist you with your grocery needs by providing good, quality products that are easy to prepare, and come right to your front door. In fact her groceries arrived while she was writing this article.

The company she is referring to is Omaha Steaks. They can provide you with all kinds of good food, including steak, chicken, pork, fish, veggies, and fully prepared meals and desserts. You can call your order in or simply order on-line and everything will be delivered right to your front door in a cooler with dry ice so everything maintains it’s freshness. Kathy Kennebrook has provided a link below for your convenience.

For more information on Kathy Kennebrook’s real estate investing products to find even more buyers and sellers, visit her website at marketingmagiclady.com.

This ridiculous idiotic law would have required landlords and business owners to file 1099’s for payments of goods or services $600 or more to EVERYONE AND THEIR GRANDMOTHER (except tax-exempt organizations). This would have included – Home Depot, Lowes, Staples, Orkin, Ace Hardware (or your local hardware), CPA’s, vendors, suppliers, construction companies, even if they are corporations (or LLC’s) and even if they are big corporations!

Good news – as a result of vigorous and vociferous protests from business groups – these knuckleheads in congress did listen and we are back to the way it was before. That is, no 1099’s to corporations or LLC’s. However, payments of $600 or more to unincorporated businesses or individuals still require the filing of 1099’s. (TIP: If you are paying an unincorporated business or individual on a continuing basis, get then to incorporate or LLC so you do not have to file a 1099 for over-$600 payments).
The Very Best

Al Aiello, CPA, MS Taxation, RE Investor
Author of the new home study system – The Renaissance Goldmine of Brilliant Tax Strategies for Real Estate Investors-at Kathy Kennebrook’s website- www.marketingmagiclady.com

_______________________________________
Albert Aiello, CPA, MS Taxation, RE Investor

Yes! But first, if you have not done so, set up a limited liability company (LLC). Then elect the LLC to be taxed as a partnership (with at least two members) so you have an LLC-Partnership which is both a legal and tax entity (with a low IRS audit profile) and the best entity for real estate. If you operate as one person, another member (to create the partnership) can be your spouse, other family member or even another entity you own such as a C-corporation. These can be minority low-percentage members so you can still have total control. Kathy Kennebrook would totally agree that an LLC is the way to go.

Now to the topic at hand. Properly structured, with the appropriate documents, an LLC can support expenses as tax deductions, many of which are IRS hot spots (discussed shortly) and typically would be more aggressive if taken as a non-entity sole proprietor (which is also very prone to IRS audits).

What to do: Use a properly worded comprehensive LLC Operating Agreement (OA). There are several important LLC legal documents. But the OA is the most important one.

The Operating Agreement is the nuclear, governing instrument…mandating LLC business operations. Simply put, it is the heart of the LLC!

The OA is also a private document, not exposed to the public such as the articles of organization. The OA used, should be a “Real Estate OA”, specifically designed for real estate investment operations.

A properly worded OA will contain legal provisions that document the LLC is a separate entity where the LLC affairs are separate from the affairs of the members. These legal provisions (along with entity formalities) will give its members limited liability protection, therefore making it difficult for a court to pierce the LLC entity veil (which would expose member personal assets to attachment). This is because the LLC would be separate and distinct from its members.

ALERT: Standard boiler-plate OA’s (which most are) do not do this, as well as not doing below.

Tax Deduction Support: A properly worded Real Estate OA also supports the multitude of tax saving expense/deductions (and strategies) that are available for the absolute best tax shelter – real estate. That’s why Kathy Kennebrook uses LLCs in her real estate investing business.

How Is This So? Because having the correct legal provisions in the OA (per the above) separates the LLC entity from its members, as a separate legal person. So given this, the statutory LLC entity (separate from its members) via this legal document (the OA), formally authorizes LLC members to incur expenses necessary to attain the specific business purpose of the LLC as provided in the OA (which purpose is: High-return, low-risk real estate investing). This is summarized below.

__The LLC Entity__ You as LLC Member
Gives legal authorization to incur expenses necessary to attain the LLC business purpose S
e
p
e
r
a
t
e With the LLC authorization, you incur the authorized deductible expenses, carrying out the LLC bus. purpose

This is powerful! You will feel much more assured and comfortable that your tax deductions are legally supported by this legal entity (LLC) via this legal document (OA).

IRS Hot Spots: This is especially so with IRS hot spots such as deductions for auto, home-office, entertainment, meals, travel to find property; and especially real estate education (seminars, home study courses, coaching programs) along with related travel to the educational event.

With the proper LLC documents, you can legally and fully claim such deductions, even if you do not yet own any investment properties and save thousands! This could be a very troublesome area with the IRS…but now can be resolved with a properly structured LLC entity with complete, correct documentation!!

Conclusion-Summary: Such proper documentation can therefore be an effective defense against any IRS attacks; or CPA’s trying to deny you of valuable deductions. Reason: This statutory LLC entity (separate from its members) via this legal document (the OA), formally authorizes these deductible expenses necessary to attain the LLC business purpose. You end up with legal tax-saving deductions and a more successful real estate operation…The best of both worlds.

The above are excerpts from The LLC Master Machine – The complete updated LLC system for real estate investors (including a comprehensive 121 page RE OA) by Al Aiello and Wm. Noll, Esquire. For more info go to Kathy Kennebrook’s website at www.marketingmagiclady.com

The best way I’ve found to “niche” market to motivated sellers and control the number of leads coming in is through the use of direct mail. The BIG secret to making direct mail successful is to mail the right letter to the right list; then mail to them over and over. As you will discover, given time, almost every potential seller’s circumstances change and make them more motivated to sell. You must let the world know you buy real estate. The best thing about doing direct mail advertising is that you can specifically target the types of sellers you want to reach and cultivate quality leads.

I also find these mailings to be very residual. These potential sellers will hold onto your direct mail pieces until their circumstances dictate that they contact you. When they are ready to sell, they will contact you first, especially since they probably haven’t had any contact from anyone else. Usually their properties aren’t being actively marketed; therefore there is no competition for these deals. In the meantime, you’ve gained credibility with these sellers by doing repetitive mailings.

I will take a moment here to mention that one of the reasons I personally love direct mail is because it is unique in that there is no other marketing technique out there where you have the kind of control that you do with direct mail. For example;

1. You can cultivate the exact type of lead you are looking for in the
specific area or price range you are looking for.

2. You can control the number of pieces going out, when they go out,
and specifically to whom they are targeted.

3. You can create a response mechanism within the body of your
letter so that you get the specific response you want from the seller or customer.

4. It is very easy to “crank up” your mailing machine or pull it back
depending on what your personal situation or goal is.

5. You can create more solid leads using fewer of your marketing
dollars thus leaving you more dollars for other marketing you might want to do.

6. You can create a solid successful direct mail campaign even if you have a very limited budget to work with.

7. It is very easy to track the success and response rate of the direct mail campaigns you have created.

8. These mailings are very residual, potential sellers or customers
will hold on to them until they need your service.

9. You will reach prospective sellers or customers who might not
ever learn about you otherwise.

For more information on using Direct Mail to increase the number and the quality of real estate deals you do visit Kathy Kennebrook’s website at www.marketingmagiclady.com  While you’re there be sure and sign up for Kathy Kennebrook’s free monthly newsletter.

While you are there be sure and sign up for Kathy Kennebrook’s FREE monthly newsletter and get 149.00 of additional marketing tools absolutely FREE as soon as you get signed up. See you there!!

Kathy Kennebrook successfully mails to the new list they provide every quarter and she gets consistant deals from these mailings using this list and her Marketing Magic Direct Mail Campaigns.

Lance and Terry have provided a quick note below that shows the value of persistence and consistency. If you have never tried their services you owe it to yourself to check them out. You won’t be disappointed. If you would like some more information, please give them a call at 866.711.1688 or visit www.usleadlist.com for a free quote.

Remember to mention the “Kathy Kennebrook” for a Special Discount she has negotiated for you off the retail price.

As Lance likes to say, “this is not 7-Eleven.” What he is trying to convey is that direct mail marketing is not automatic. You just can’t walk in and expect to buy a house with just any list. It’s just not going to happen and it may take more than one mailing to find those “special” deals.

Kind of an odd opening paragraph for a company that sells a very targeted list of “Inherited Properties” to real estate investors that can’t afford to take a misstep in their marketing. That is because our primary goal is to help make you successful in your business. We are not going to tell you that this is the magic bullet every time. We are going to tell you that we have 4 years of selling this list with a whole host of success stories.

We absolutely believe that this is the best list available for the real estate investor and the testimonials below bear that out. Take a moment and read through each of them. You will see that some profited with their first list while others had to stay the course and be consistent with their marketing. Which, of course, is the whole point — be consistent. It will bear fruit. We know that funds are tight so use them to the greatest potential just as Kathy Kennebrook teaches you to do.

Because ours is such a targeted list you reach sellers that are motivated and with equity and with less expense. That’s right. When you are using a directed mailing campaign you save on postage, letters and envelopes and the time and energy it takes to put it all together. We want you to succeed.

Here are the testimonials (All received this month and all are current customers):

I began buying leads from US Lead List a little over a year ago. I was extremely skeptical in the beginning, in fact I remember Lance having to follow up with me multiple times before I took the leap and purchased my first list. I did not buy anything off the first or even second list. I had to practice taking the leads and working with the homeowners until I had it down to an art. I continued to have faith and buy the list as I was getting a 4.5% response rate. I am glad I did since I bought 3 properties off this last fall list. I wholesaled two and put one into my permanent portfolio. I have now added additional counties from US Lead List and have started taking in leads from the winter list. These sellers are motivated and have equity—what else can you ask for?
Dan R.
www.HotHouseOK.com

Hi Terry and Lance,
Just want you to know that I had good success using USLeadList. I mailed out over two hundred letters and after a week I was receiving several calls a day.
I’m guessing that my response rate was around fifteen percent. I have a property under contract. The elderly lady is happy not to have to list her house with a realtor, and after some updating, I anticipate making a minimum of $30,000 flipping this property.
Thanks for all your help.
Emma (Her first list)

Terry & Lance -
Thank you for your excellent service and the personal attention you always provide. We have been using your list for almost two years with great results. It is an important part of our marketing efforts.
Linda T. & Pat F.

Lance and Terry,
We just want to say thank you for the incredible list you provide which allows us to buy an additional 2 to 3 houses every quarter. We’ll be honest, we were skeptical at first to try your list because of the price per lead, but now we realize that the cost of the list is nothing compared to the return we get. In 2010, we easily made an additional $10,000 every quarter because of your service. As long as you continue to provide quality leads, we will continue to purchase them every quarter. This is by far the best list we’ve ever used to purchase distressed properties and any person who is serious about buying houses needs to be purchasing leads from you. Thank you for your hard work and giving us the opportunity to become better real estate investors.
Eric B
My Fast Home Buyers, Inc.

What more do you need? Give us a call today at 866.711.1688 or visit www.usleadlist.com for a free quote or for more information. Make sure you mention Kathy Kennebrook so you received the Special Discount she has negotiated for you, her customers.

Regards

Lance and Terry
www.usleadlist.com
866.711.1688