Hollywood, CA

Thursday, August 11, 2011

Steve Dexter, real estate expert, successful real estate investor and co-author reissued classic, Buy and Hold Forever: How to Build Wealth for the 21st Century, has been urging his acolytes to seek out foreclosure properties for investment purposes. Then a recent August 4 front page article in the Wall St. Journal gave him even more reason to tout the strategy. The focus was major hedge, university endowments and other have begun investing in multiple foreclosure various companies around the country, and that this is saving the properties from destruction, allowing previous owners to rent the same dwelling and pump much needed stability and liquidity into the housing system.

Steve Dexter's "Smart Mind's, Smart Money" Newsletter article from August 11 gave some insight into what that Wall St. Journal article said and how Steve Dexter, who owns multiple rental properties, views the trend.

A great Wall Street Journal article is trumpeting what I have been telling you along. In 'Big Money Getting into the Landlord Game," we see large hedge funds specializing in "alternative investing" wanting to buy single family houses and rent them out. McKinley Capital and Och-Ziff Capital Management Group LLC, a New York hedge fund plan to buy at least 800 more foreclosed homes in the next year. I wish them well as this is the perfect time.

These homes will be rented to four classes of people that are flooding the market:

1. Foreclosed homeowners looking to stay in the same neighborhood

2. Renters who suddenly find out their landlord lost the house to foreclosure and now they renters got to move

3. A family is getting bigger and now they need more room

4. Workers want to move closer to their job or want a better neighborhood



These large investment firms would do well to read my latest book, "Buy and Hold Forever-How to Build Wealth for the 21st Century." You just can't go into a city and buy a bunch of houses, hire a property manger to watch over your investments and expect to do well. Let me illustrate.

Last week a tenant called me and said they were moving in two weeks. Go ahead and apply the last month's rent out of the security deposit, he said. NO, NO, NO. Those of you that have been to my college land lordship classes know that is verboten; no way will we tolerate that. The security deposit is just that- to be used as security against property damages.

I told him that and also how would he like to get 100% of his security deposit back? He said that of course he would and that most other landlord he had kept almost all of it. I told him the I LOVE giving all of the deposit back and I will show him how. I went over to his house the next day and went over in detail all the little things that I need to get the house rent ready for the next tenant. My aim is to get the next tenant in there the day he leaves.



My goal is the title of my next book, "No Days Vacant, No Lost Rent."

What did I accomplish?

1. Existing resident will spend his time and money getting the house rent ready

2. He agreed to show the house to people I send over

3. He is motivated to get the house rented quickly since I will pay him a little bonus if I rent to the person he shows the house to. He will want that house looking goods as soon as possible

4. No misunderstandings on who pays for what repairs and no discussions in what is "normal wear and tear"



Big hedge funds cannot do this. They will turn over the day to day stuff to a property manager who will limit their profit. Cash flow will deteriorate when tenants leave them dirty houses, skip out early and there will be gap on time rented when that house goes empty. Every vacant day is a negative income day and we cannot afford very many of those.

During the last decade 3 million new households a year formed while 2 million houses were being built. Now we are producing only 500k new houses a year so demand is getting pent up for well located rentals in high demand areas. Wall Street equity firms know:

1. Annual rent appreciation of 3-4% a year is likely to continue for several more years

2. Most of today's renters prefer single family houses

3. The quality of the renter pool is getting higher despite rising unemployment and stagnant incomes

If you know how to manage tenants and can pick areas they want, you will make a fortune in this perfect storm of No Days Vacant, No Lost Rent:

Property Management Anybody Can Do

Did you know that you can rent your house out in one day? Are you an accidental landlord? Did your house not sell and now you've got to rent it out? Tired of property managers ripping you off? Is land lording not as easy as you thought? Most people hate the idea of total strangers who are living in your property, who don't pay on time, call at 2 AM and trash their property.

It doesn't have to be like that, you can have residents who:

Pay the rent before it's due.

Maintain and even improve your property's value.

Get along with the neighbors.

Stay for a long time.

Sunday August 14th , 2011

Riverside Community College

4800 Magnolia Riverside CA 92506

Call to register 951-222-8093 or register online at

www.rcccommunityed.com

Thursday, September 8th

The Economy from The Landlord's Perspective

Southern California Real Estate Investors Association

Radisson Ontario Airport

2200 E Holt Blvd

Ontario, CA 91761

Saturday September 10th, 2011

Saddleback College

28000 Marguerite Parkway

Mission Viejo CA 92692

Call to register 949-582-4646 or register online at

http://www.saddleback-ce.com

Saturday September 17th, 2011

Irvine Valley College

5500 Irvine Center Drive

Irvine, CA 92618

Call to register 949-451-5555 or register online at

www.ivcc.edu

Saturday, September 24th, 2011

Cerritos College

11110 Alondra Blvd.

Norwalk, CA 90650

Call to register 562-467-5050 ext. 2521or register online

www.cerritoscommunityed.com

Buy and Hold Forever: How to Build Wealth for the 21st Century" is available at local book stores, Amazon.com or from the authors at www.schumacherenterprises.com and www.stevedexter.net.

For media interviews with Steve Dexter contact Promotion in Motion at 323-461-3921 or

brad@promotioninmotion.net

 

DAVID SCHUMACHER, PhD, was an investor, magazine columnist and college instructor in the field of real estate. One of America's premier experts, he was also a multimillionaire property owner. He parlayed a modest investment into property holdings worth $20 million, including houses, condos and magnificent oceanfront apartment complexes in Southern California. He also authored The Buy & Hold Real Estate Strategy and Buy & Hold: 7 Steps to a Real Estate Fortune.

STEVE DEXTER is the president of National Capital Funding, based in Laguna Beach, California, and an expert commentator for CNN/Money, CBS Radio and Fox TV. He is the author of Real Estate Debt Can Make You Rich and Beat the Banks: How to Prosper from the Rising Wave of Bank Foreclosures. He teaches at several colleges in Southern California and is a guest instructor at Harvard Business School, Harvard Law School and their Graduate School of Design

Brad Butler

Promotion In Motion

Hollywood, CA

323-461-3921

First Url: Official Buy and Hold Website

Second Url: Official Steve Dexter Real Estate Website