Real Deal REInvestor Network

As you are getting started in commercial real estate investing, or residential flipping, ask yourself, “Do I run a house-flipping business?  Or, is it a real estate business that flips houses?”  Are you working for tips? Let these commercial real estate investing tips help focus your approach to investing.

There are a few  key tips for you to consider as you are getting started in commercial real estate investing, or residential flipping.  Ask yourself as you begin, “Do I run a house-flipping business?”  Or, “Am I running a real estate business that flips houses?”  Do you see the difference? I can teach you how to do one deal, but what is that going to do for you? You just make one deal, right?  Let the following real estate investing tips help focus your approach to investing.   

 Create a Business with Systems:

 HIS Real Estate Network teaches creating a business that has a “system” that will generate residual income for you. That’s the difference. What I want you to start thinking about, the need for you to see residential and/or commercial real estate investing as a business. That’s what this is. You are not flipping houses; you’re in the residential and/or commercial real estate business.

 If you operate your real estate investing like a business, guess what happens? You don’t do just one deal a year or one deal a quarter; you do a lot of deals consistently. Why? You’re running it like a business. That’s the difference.

 Whether you are involved in residential flipping or commercial investing, it is important to know that you are running a business.  And, if you are focused on residential, you may want to look at the viability of adding or shifting to commercial ventures.

Determine your income needs to meet your obligations, reach financial freedom?

 Now I don’t know what your income stream is right now, if you make $4,000, $5,000, $6,000, $7,000, $8,000, $9,000, $12,000 or $20,000 a month in payments so that you can live. In other words, what amount of income do you need to come in every month so that you can pay your bills, and be free?

 If you just did a couple of deals and every month they were paying your bills, even if it was just $6,000 a month, would that be financial freedom? Financial freedom might mean you could just roll out of bed and be like well, “Today I don’t feel like working. It’s okay because my mortgage is paid, my kids have food, we’re going shopping and we’re going to Disney.” That makes a big difference.

 A residential business with solid systems can do a portion of that to a degree, which is one way to maximize the returns quickly because that’s what the vehicle is there for.  But, what we really want to do is take that money that we’re repeatedly making on the residential flips, and take a portion of that, right now, and put it to work for us long term.

Ask yourself if you are “working for tips?”

 Does anybody know why commercial is so sexy to us?  Money for trailing dollars… Passive income. Residual income. Commercial market crash. That’s definitely a door for it right?

 We used to just be residential and we had it down pat to a science. We could do a webinar and flip 20 properties in that webinar. It was good. We had the system down and I was bragging about it to some older guys who couldn’t stop laughing at me. 

I’m offended. I’m literally offended because I’m doing deals so I’m a player, and these guys are laughing at me. I asked, “Why are you laughing?” And, one said “Because you’re working for tips.” Think about that concept for just a moment. I’m working for tips. I’m making money, right? Yes, but the moment you stop working that business, guess what happens? You stop making money.

Then he said something that really hit me. “When was the last time you flipped a house and the house deal paid you every month after that?” I had no comeback for that. I just had to bow out, put my tail between my legs and say “okay”.

 Well, what happened was I saw the light.  I bought one commercial deal, I made money when I bought the deal, and I’ve been making money for the last 11 years as a result of that one deal.  You can’t compete with that. Do you follow? So the rate return may not be your 30 or 40% on a flip, but at the end of the day it’s an infinite return that’s paying every single month.  Do you follow that?  Every single month!

Now we are getting that residential income flow every single month. It only takes two or three deals before all the sudden you’re like hey, I can be picky now. I can relax because every month there’s a check coming in the mail. How many of you would like to do that? Absolutely! Me too!

So as you are getting started in commercial real estate investing, or residential flipping, be sure to run your investing as a business with systems, know how much income you need to generate from your system to reach financial freedom, and stop working for “tips” as you transition to commercial real estate investing, if you’re not already there.

Rick Melero

  P.S. If you’re serious about making money NOW in commercial real estate, while building long-term wealth, all by learning how to re-position yourself to achieve INFINITE returns then you must attend our next live educational online webinar with America’s #1 Real Estate Network™. Register here, right now as a guest of Rick Melero and unlock the secrets to 6-figure paydays and awesome monthly cash flow per deal:

http://www.hisrealestatenetwork.com/383

 

 

Hi everyone, I wanted to comment on the MP3 download I listen to within the last few hours on Jason Gilbert. He is a commercial real estate investing guru who focuses on Joint Venture Facilation (JVF) for land owners/developers and Master Lease Option (MLO) for income property. Jason says that these two techniques are rarely used in the commercial industry. Here are a few tips I took from the MP3 download: 1.) Target and locate properties in good condition but under producing or performing with poor property management, marketing or both. 2.) Lease property for the net income that the property is earning, then sub-lease each unit to the tenants that are renting the units. Then fix property management or the maintence problem. 3.) You pocket 100% of the new income by filling the vacancies, raising the rents, lowering the expenses or a combination of all three. 4.) One is creating tremendous value in the property by raising net income. 5.) Master Lease Option takes no money to enter into the lease and you have complete control of the property. A (MLO) is a try it before you buy it option, lease all units first then get massive cash flow but at a hugh discount. I hope this help out anyone that's interested in commercial real estate investing. Dara C

You won’t believe the number of our clients that have transferred their 401k or IRA into a Self Directed IRA. In fact, since the year 2000, the number of self-directed IRA plans has more than doubled. Why? Because Self Directed IRA’s allow ordinary investors to take control of their investments. People are tired of watching their nest eggs disappear due to mismanagement, corporate fraud, stock crashes etc.

Investors want to own hard assets that generate income every month with long term stability. Imagine purchasing a tangible real estate asset in a tax deferred or tax free environment. With the incredible real estate buyer’s market in both commercial and residential, many investors are doing just that. Have you made the leap yet?

If not, here are some benefits that I hope will challenge you to take control of your retirement funds.

1.A self directed IRA allows you to have complete control over your Individual Retirement Account funds.

2.Limited custodial Fees! When you take control of your retirement accounts you also lower the costs associated with managing those funds. The less you pay out, the bigger the ROI.

3.They offer great investment options. Since most traditional IRAs only permit investment options in approved stocks, bonds, mutual funds, and CDs. This type of IRA allows, in addition to the following investment types, real estate, notes, tax lien certificates and private placements.

 4.You can put your money to work with our complete turnkey commercial and residential investing operation. You can now grow your Self Directed IRA with both equity growth and a safe steady stream of income.

So if you have not done so already, what are you waiting for? Contact our office and we will refer you to some of the top Self Directed IRA companies that we work with. It is time to take control of your retirement funds and safely investment in cash flowing tangible assets. Don't gamble with your future! 

Rick Melero

(407) 490-2447

www.RealDealCommunity.com

This is another one of our Real Deal Commercial students that is TAKING MASSIVE ACTION. He is working with us through our Co-Sponsorship Program on a $2.5MM Commercial Project.

In Commercial Real Estate, the numbers are the key to establishing the value of a property. In the first stage of evaluation,  the investor will want to determine the Net Operating Income of the subject property. Now... You may be asking yourself... "What is the NOI?"

Here is a quick definition.

Net Operating Income. Is the income after deducting for operating expenses but before deducting for income taxes and interest.

Here is a quick break down of how you would arrive at the NOI.

INCOME

  Gross Scheduled Rent Income                
  + Other Income                
TOTAL GROSS INCOME     

- VACANCY & CREDIT ALLOWANCE

= GROSS OPERATING INCOME

- Operating Expenses :
  Accounting 
  Advertising            
  Insurance (fire and liability)  
  Janitorial Service
  Lawn/Snow
  Legal
  Licenses
  Miscellaneous
  Property Management
  Repairs and Maintenance   
  Resident Superintendent     
  Supplies                    
  Taxes
     Real Estate              
     Personal Property        
     Payroll                  
     Other                    
  Trash Removal               
  Utilities
     Electricity              
     Fuel Oil                 
     Gas                      
     Sewer and Water          
     Telephone                
     Other

= Net Operating Income

The NOI is  often viewed as a good measure of the income producing asset's performance. Many investors believe this figure is less susceptible than other figures to manipulation .

We talk in more detail about commercial investing in our Real Deal Webinars. Make sure to RSVP for our Next Call.

Regards,
Rick Melero
www.HisRealEstateNetwork.com/commercial

Wow, what a great time we had in Orlando this past weekend!  A group of us from the MMM Challenge team went to Orlando, driving and flying from far and wide- one even came from Singapore.  It was a great weekend of getting to know people in person who have been Skype, phone and email friends.  Rick Melero did an incredible job teaching us commercial investing from a building that he and his investing group are buying.  There is nothing like being there in-person, and being in an actual property that is part of a deal- working the numbers and learning how a commercial deal works.  There are a lot of theories out there about investing, and a lot of people with "head knowledge".  But it is a different thing to get your hands dirty and get into deals, and hear and somewhat experience the reality of one.  Rick Melero and Danny Welsh are both known for their generosity in sharing very solid investing/marketing advice, but they go beyond just giving information.  They really make an incredible effort to share things that will really help us succeed- cutting out the "fluff" and giving the tips that truly help.  Well, the weekend wasn't all numbers and classrooms- by the evening we got to head out to the Latin Quarter for dinner and some dancing...many really showed some serious moves, and some showed moves that may not be legal in all 50 states...but regardless it was a ridiculous amount of fun! By the last day we got some incredible tours and lessons in how to  work some great deals in luxury investing as well as affordable, and there will be some fantastic investing triumphs to come from it.  I can truly say that if you get the chance to learn from Rick Melero (and Danny Welsh, who we missed) then it is well worth the time.  He believes in pouring out his best for people, and really delivered.  Watch for videos of the event to come!

Today I had the opportunity to speak to a class full of 8 year old students about what I do as an investor. As you can imagine, I had an interesting time trying to teach them the concept of Commercial Investing. To watch the entire video of the presentation...


I hope this video will inspire and or challenge you to pass it on to your children. We can make a difference in our future by educating and loving them.

PASS IT ON!!!

Rick Melero
www.RealDealCommunity.com
www.HisRealEstateNetwork.com

I enjoyed this mentorship very much. Here is what Antonio had to say.

Tell us how your experience with your mentor was:

The experience was amazing. Rick is an excellent and knowledgeable Real estate investor and entrepreneur with amazing training techniques.  

 

What did you learn during your training?:

Short sales, joint ventures, wholesales, commercial rental, lease/option, body language, negotiation, credit improvement, contracts, and sales techniques.

 

Can you now see yourself investing with confidence using the strategies learned? Why?:

With my previous experiences and the knowledge absorbed from Rick’s training there’s no excuses and no reason why not to succeed and invest with confidence.

 

What can we do to improve our mentorships?:

Right now everything was perfect.

 

Antonio S  New York

 

These 3 day on-sight mentorships are so much fun!!!

 

Rick Melero

www.RealDealCommunity.com

www.HisRealEstateNetwork.com/commercial

 

The other day my partners and I met with an equity investor who is interested in one of our commercial projects. During this very interesting meeting, we began to talk about different players in our market place. Long story short... we had some friends in common. One of them was Mr. S (To protect his identity) who has been in business for well over 20 years now. He is very well connected in the US and Internationally. What this investor shared with us about Mr. S just floored us.

We found out that Mr. S has run several successful businesses over the years (Including commercial real estate) and closed deals that have ranged from $25M-$300M. That is not what impressed me though, what blew me away is that Mr. S can't read or write!!! That's right... he can't read or write and he has done $100M+ Deals.


I am so tired of people coming up with excuses as to why they CAN'T do something. Wake up!!! God created you with unique gifts and abilities. Stop squandering your gifts and start being a good steward. Here are three simple tips to help you get results.

1. VISION: The Bible says that people perish for lack of Vision. Vision must have a purpose that is bigger than you . If you are bigger than your vision you are missing the mark. Are you here to exist or to leave a legacy? You need to be crystal clear about the benefits and direction of your vision. So ask yourself these questions. 

What is my vision? and... Will people be blessed after I am gone?

2. NETWORK: History has proven again and again that the people who thrive are the people who work together. Did you know that most millionaires at one point formed an alliance with other people of the same vision to ensure their success.  You need to be a person of value which means that you offer value to others. When you become a person of value people want to help you succeed. Ask yourself these two questions.

Who have you formed an alliance with? and... Are you a person of value?

3. ACTION: Through out the years I have met many people who do alot of talking and never follow through. So why waste your time talking if you will never do something with it? I have also met with people who start to do the work but the moment a barrier pops up they give up and go home. Why would you waste your time talking about it and then starting something without ever following through to completion?
It takes consistent massive action to get to where you need to be. I can assure you there will be seasons full of turmoil and obstacles. This is the time when you have to keep Taking Action!!! If you are not willing to take action and follow through you might as well give up now. So ask yourself these two questions.

Are you ready to stop talking and start taking action? and... Are you willing to pay the price to fulfill your vision?


Mr. S reminds us that we have no excuses in this life, only opportunities. I pray that you would receive a clear vision, surround yourself with the right people and that you would stop making excuses and begin to see possibilities. Start believing in yourself and take massive action daily if you desire to reap the fruit of your labor. I believe in you, will you join  me and begin working towards creating your legacy?

Rick Melero
www.RealDealCommunity.com
www.HisRealEstateNetwork.com