Master Real Estate Course

Lesson #3 Collect Municipal And Online Information

Objective:

• To familiarize yourself with the considerable government information available for your specific investment area.

1. Buy six properties. 2. Love your tenants. You buy a property and you pay off the mortgage. Then you enjoy the income. Then your children enjoy the income. Then your grandchildren enjoy the income. Your great-grandchildren will enjoy the income. When does this end? Now, you know why real estate investing is so great because it never ends. In a hundred years, your offspring will be saying, "Thank you great-great-great-great grandpa or grandma!" Start your family dynasty. This is beyond the comprehension of average people. You can do this. You deserve this.

Background:

Remember this important fact from Lesson One: after a few months of research, you are going to know much more about property values in your specific investment area than most real estate agents. Next, consider that most buyers and sellers will invest hundreds of thousands of dollars on the flimsy advice of these agents. This will NOT be you. When the time comes, you will negotiate from a base of strength, based upon your research and not wishful thinking.

   You will be strong.
   Your competition will be weaker.
   Therefore, you will win more often than you will lose.
   When you win, you will stand to earn tens of thousands of dollars.
   When you lose, you walk away losing nothing but your time.
   You will take your ball and start a new game.
   Is this a good game with good rules or what!

There is a wealth of free public information about your investment area at your local government office and on the Internet. Be prepared for success by gathering and studying all the government material related to your area. As your marksmanship instructor taught you, "You've got to see before you can shoot." You must have a familiarization with the properties and the players within your small specific investment area before you'll be ready to attack and win. Your confidence builds with research, training and practice. Don't talk about doing something, do something.

In the beginning, gathering and absorbing all of this general information will seem like a daunting task. You have time. Be patient. Take one step at a time. The average person is going to dismiss the research as non-essential. The average person is poised to flee at the thought of this work. They are going to take flight with the thought, "But, no one else is doing this work; why should I?" Yes, they are correct that most of their average friends are doing nothing and it is this work avoidance and self-doubt that makes them all collectively average.

You are not average. You are special. You are a Master of Success. You don't quit. You are going to come up with the good ideas which lead to good deals and, most likely, these opportunities will present themselves while you are working hard.

Research, training and practice will also pay dividends when your offers are rejected. Be assured that most of your offers will be rejected. Ninety plus percent of your first offers will be rejected. Your research and experience will help you to learn from these rejections. If your offer is reasonable and the seller is unreasonable, you move on. There will always be new opportunities for you as a knowledgeable active investor looking for them. The Master of Success understands that this is business and in the real estate business you will find all sorts of people; from the knowledgeable to the clueless; from the motivated to the unconcerned. Yes, on occasion, you will shake your head because some people do not even act in their own best self interest. This is them. This is not you. You can't change them. You are not a psychotherapist. Be the Master of Success. Smile gently and move on.

As a Master of Success, you are fluid and flexible but you are focused on your objective. In your twenty years of investing, you don't have to make thousands or hundreds of deals. You want six solid properties which you own free and clear of debt. You only have to buy and sell until you achieve this objective. Take a deep breath. Your war is over. You win. Go and enjoy the spoils.

Average people are raised to avoid all confrontation. Average people are passive and reactive. They find blame and quit. Average people whine and complain and take rejection personally. They get angry at sellers when they don't get their own way. "But, doesn't everybody love me?" The answer is, "Sorry. No." This is not Meet and Greet Night at the local peace hootenanny. This is business. It's handshakes not hugs. Everyone is not going to be your friend. This is the real world and you've got to cover your own butt.

Some will, some won't, so what, next deal.

Yes, the seller was probably a greedy jerk. Forget it and move on.

Yes, the seller's agent probably was obnoxious and a know nothing. Forget it and move on.

Yes, on some deals, you do not have the fire power, the money, or the inclination to prevail. Yes, on some deals, like with some battles, your opponent is planted on the high ground and has the strategic advantage. Your opponent can win by telling you, "No."

Average people freak out. Master investors will smile, bow, wish their opponents well and move on.

You are rejected. The world doesn't end. Success without rejection is almost unthinkable. You stumble forward. You regain your strength.

You may prevail tomorrow or the day after tomorrow or next week.

You are a Master of Success. You have persistence. You will prevail. You will find order within the chaos. The battle may be theirs but the war will be yours.

Get out of your comfort zone. Challenge yourself. Keep strong. Keep it simple. Research. Train. Persist. Victory is at hand.

Listed below are examples of some of the information you should be able to obtain and some of the issues that may affect your decisions.

Keep repeating, seeing and believing, "Most people are doing nothing." What makes Spec Op troopers "special?" Yes, they are doing what others can't or wont. What is going to make you "special" in your small specific investment area? Yes, you will be doing what others can't or wont.

In Many Areas, Public Records Are Available Online

Mayor's Office

Is the mayor or town manager pro-growth? Is affordable housing a local issue? What are the real estate issues in your local investment area and what positions has the Mayor taken? Ask in the office. Ask around town. Check your local newspapers. Are there any major road or construction projects planned that would have spillover benefits to abutters? How can you profit?

Town Clerk

Ask for the Annual Town Report. The Annual Town Report is usually published in book form and sent to every taxpayer in the town. The Annual Town Report lists the revenues and disbursements for each department in the town. Where and how is the money being spent? Where are the improvements being made? Are there trends to improvements being made in specific parts of the city or town?

Building Department

What are the rules and regulations regarding building and improvements in your area? Can you obtain a copy of the building codes or find out where a reference copy is available? What are the hours the building department is open? Will they answer questions over the telephone? Do they answer email? Will the building department recommend or discourage you from using certain contractors? Are there any local, state or federal grant programs to encourage construction, renovation or restoration of certain types of property?

The Health Department

What are the sanitary codes for your area? Are there specific regulations regarding apartments or commercial property? How is trash pick-up handled? Are there guidelines, regulations or laws pertaining to the number of inhabitants per dwelling unit? Are there rules for pets? Are lead paint laws enforced? Are any lead paint or asbestos abatement programs available? Is leaf or trash burning permitted? Are there any requirements regarding architectural barriers? Are handicapped bathrooms required in commercial establishments?

The Police and Fire Departments

How are crime statistics handled for different areas? How is this information disseminated to the general public? Can you do background checks on prospective tenants? Will the police handle noise complaints, tenant disputes, the towing of unregistered cars? Who is the contact person to report suspicious activity? Will police officers also act as constables and deliver legal papers?

Does the fire department perform regular inspections of fire alarm, sprinkler and smoke detector systems? Can homes or apartment buildings be wired directly to the fire station? Is there an annual charge? What are the regulations for smoke detectors in homes, apartments and commercial buildings? Who is the contact person at the fire department for code enforcement? Can you hire police officers and firefighters for private duty work?

Zoning Board

The Zoning Board determines what types of properties can exist in certain areas. There will be a zoning map for your area. Can you have a copy of the map or can you draw your own? Is there a booklet available describing the zoning code?

Using The Zoning Map For A Treasure Hunt

Analyze the zoning map for your investing area. On the zoning map, you'll find every single-family house, duplex, apartment building, shopping center, office building, and industrial building in your investing area. You'll see every open field, forest, park, road, street, highway, river, and lake. The zoning map lays out your entire investment area - from an aerial perspective! To make your "aerial survey" even easier, most zoning maps are shaded to represent different allowable usages: residential, professional, commercial, and industrial.

Remember, you also have Google Earth and Microsoft's Virtual Earth as references.

The zoning map gives you a creative tool to research and identify new investment opportunities. The following is a list of a few profitable possibilities your zoning map investigation may uncover.

The Zoning Treasure Map

   Sites for single-family residential construction or expansion
   Sites for multi-family construction or expansion
   Sites for condominium development
   Sites for commercial construction or expansion
   Sites for office/professional construction or expansion
   Sites for rehab/improvement in historic areas
   Sites for industrial construction or expansion
   Sites for cluster development
   Sites for recreational development
   Sites amenable to subdivision
   Sites with conversion potential due to non-conforming use
   Sites abutting a zone line with rezoning potential
   Sites owned by the municipality, which can be purchased
   Sites in the path of anticipated development

Your investing area is changing. It has always and will always be changing. Active investors with imagination will look at a site or building as is and envision a higher and better use. Does your investing area look now as it will look in five, ten, or twenty years? The zoning map can lead you to investment treasures. Why not take an aerial view and together re-explore your investing territory?

Board of Appeals

The Board of Appeals grants variances to the zoning code. How easy or difficult is it to obtain a variance in your area? What are the procedures for applying for a variance? Pose a hypothetical question to off-duty board members. If I own a two-family house and want to convert it to a three-family house, what are my chances for success? How often have these type of variances been granted in the past? Don't be afraid to ask questions, because it's this kind of information you're going to need to become an effective decision maker. Then, when a seller or realtor represents a conversion possibility or splitting off an extra lot as no problem at all, you'll have an idea whether they're talking fact or fancy. Be prepared. Study your zoning map and know the past history of your Board of Appeals. Know the names of the attorneys who most frequently succeed with appeals. If this board is elected, determine if it is in your interest to financially support winning candidates.

Assessor's Office

The primary source of revenue for most municipalities is the property tax. It is the job of the town assessor to place a value on every taxable piece of real estate in the town. The assessed value of a piece of property is usually much lower than the current market value. However, you can use the assessed value as a basis for comparison with other similar properties in the area. Are they comparable and if not, why? You can also use the assessed value to determine the property tax for the real estate.

Property taxes are usually stated in a dollar amount per thousand dollars of assessed value. If the property tax is $26 and the assessed value is $200,000, the tax would be $26 X 200 or $5,200 per year. With knowledge of how the property tax is calculated, you can look at a real estate listing sheet and if the tax figure is old, the rest of the expense figures are probably also outdated.

Is there an assessment book printed? Can you obtain a copy of the assessment book? How is assessment information filed? Is the information available online? Will the Assessor's Office give information over the telephone? When was the area last assessed? Are there plans for a revaluation?

Housing Authority

The Housing Authority will handle any state or federal rent subsidy programs for your area. What are the eligibility requirements for these programs? What type of applicant screening does the Housing Authority do? Is the Housing Authority currently short of units? What is the rent range paid for various size units in your area? What are the names of the people responsible for tenant placement? Are there special programs for the elderly or the handicapped?

Planning Board

The Planning Board makes decisions regarding the future and growth of the area. What are their plans for specific areas? How is Planning Board information disseminated to the public? How does the Planning Board view the housing situation in your area? Is the area population increasing or decreasing? Is industrial and commercial growth promoted? Is the sentiment of the Board to increase or decrease certain types of property?

Do you want to hear all the gossip and rumors and wild speculation? Yes. Do you want to rub shoulders with the millionaires who already own a lot of the income producing property in your area? Yes. Do you want a quiet place to push your next proposal with appropriate politicians and town officials? Yes. Do you want to buy a beer for the head of the sanitation department or the town surveyor? Yes. Being a social person, an extrovert, can pay dividends. Join the Rotary Club or the Chamber of Commerce or the Country Club. Go to the bars and social clubs and coffee shops where the power elite meet. Remember, you learn when you are listening and not when you are talking.

Story:

My Big Mouth

In my early twenties, I owned a few residential properties and I wanted to diversify. I don't know why I wanted to diversify except that I had read somewhere that it's safer to have a diversified portfolio of residential and commercial properties. I was on book 12 of 40, so I still had a lot to learn.

I was working part-time in a small real estate office situated in a strip of eight stores. I worked for old man McQuade who managed the stores for a wealthy absentee owner, Mrs. Talanian. One day, old man McQuade asked me what I thought the strip was worth. He had to do an appraisal for Mrs. Talanian who was thinking about selling. In passing, McQuade commented, "If you're still looking to buy commercial property, I've been here for thirty years. This is a good investment."

Okay, here was old man McQuade asking me to help him put a value on a property that I should buy. I could set a price on a property that I was going to buy and collect a commission that I could use as the downpayment. This was great. Naturally figuring the most advantageous scenario from my personal perspective, I told McQuade the stores were worth $45,000. Correctly, he said that my estimate was very low and that the stores were worth at least $50,000. I wanted the stores so I asked McQuade to tell Mrs. Talanian $45,000. He did.

I was so smart. I started telling everybody and everybody's brother about my great deal and how I was going to buy this block of stores. I visited the other seven stores and told the owners about my pending acquisition and my plans for upgrading. Of course, the tenants understood that my saying "upgrading" was really code for rent raising. I even talked with two local banks about a mortgage. Then, I went back to McQuade and asked him to present my offer to Mrs. Talanian but I asked him to tell her that we wanted a 10% commission. He did.

Less than a week later, without a response, I asked McQuade to call Mrs. Talanian. Mrs. Talanian told McQuade that she was waiting for his bill for the appraisal. She also mentioned in passing that she was selling the property for $40,000 to Nate Shulman who owned the paint store across the street from the block. Being a very quick student of fifth grade math, she realized that our appraisal minus the commission equaled Shulman's offer.

Furious I confronted Shulman who feigned ignorance. He told me that he had heard that the property was for sale from several different sources. He simply called Mrs. Talanian directly, heard the price and agreed to purchase the property for the full price.

Bill, keep your big mouth shut. This is the real estate business and everything in real estate has to be in writing or there is no deal.

Thirty years after this botched sale, I heard that Nate Shulman had died and the block was again for sale. I heard the price was $800,000. I called the son who told me that his father never forgot our fight. I admitted to the son that I was a jerk back then. The son agreed with this and told me that he had several other buyers interested in the property. He basically said, "Don't call me. I'll call you." I am not waiting by the phone for Nate Jr.'s call.

Persistence is a masterful trait. You will do the research. You will know the facts. You will make offers and most of your offers will be rejected. Still, you will believe in your ability to find quality properties and you will keep to your program. You will find new opportunities and you will make new offers. Your persistence will reward you and, in real estate, when you are rewarded, it is usually in a meaningful way.

Donald Trump's Seven Rules for Success

1. You have to be born with enough brainpower.

2. Once you have that, you have to love what you're doing. I've never seen anyone succeed who didn't love what they were doing.

3. You cannot stop. If there is a concrete wall in front of you, you have to go through it. You can never, ever give up or even think in terms of giving up.

4. Confidence is a very important thing. But confidence isn't something you just develop by saying "I'm going to do this or that." You really have to believe it.

5. I love pitting people against each other. My whole life is based on that. It brings out the best in people and the worst in people. If the worst comes out, you don't want them working for you

6. You have to remain cool under fire and let criticism roll off you. Good leaders handle conflict easily and bad ones are eaten up by it.

7. You must work well with others and be loyal to your team. Disloyalty is the worst of all traits. I seldom use the words "You're fired!" in business, unless somebody is really scum and stole from me.

Library

Investing in Real Estate, Andrew McLean

Financing Secrets of a Millionaire Real Estate Investor, William Bronchick

Buy Low, Rent Smart, Sell High, Scott Frank

Buy It, Fix It, Sell It...PROFIT, Kevin Myers

Property Management 101

If you think you are being a good person by not raising rents, you are wrong. Raise rents as the market allows. You need your rental income to keep your properties in prime condition and to pay off your mortgages. This is your plan to reduce your mortgage debt to zero and retire rich.

Play favorites. You can give long standing quality tenants a break on the rent. You can give people who will sign leases rather than tenant-at-will agreements a break on the rent.

Make life easy on yourself. Have all rents due on the first of the month. If necessary, you can pro-rate the first month's rent.

Be smart. Write all of your leases to end during your peak rental period, which is usually August through October. If necessary, there is no law against writing seven months, seventeen month or any month lease terms to make this happen.

When you acquire a new tenanted property, you must provide tenants with the following information in writing: your name and contact information, the name to whom checks should be written, the status of the tenant's security deposit and/or last month's rent, your rent collection expectations and procedures to report maintenance issues.

Operational Limitations:

If you are going to be special, you can't be like everyone else, you can't be average. You must be different. Research and more research will make you special. Knowledge, along with your masterful willingness to take decisive action, will be your edge.

Your town research is not a one-time investigation but a continuing endeavor. Laws and ordinances change. Personnel change and different people may emphasize different aspects of their jobs.

Play to the winners and cultivate political friends while staying as independent and neutral as possible. Be careful not to step on the toes of those out of power who may return one day to positions of influence.

Sometimes in politics you can't talk directly to the guy but you have to talk to the guy's guy. If the path to acceptance of your proposal is to deal with a subordinate, don't be offended; deal with the subordinate. Complete the mission.

Jargon:

Amenity - A feature of real property that enhances its attractiveness and increases the occupant's or user's satisfaction although the feature is not essential to the property's use. Natural amenities include a pleasant or desirable location near water, scenic views of the surrounding area, etc. Human-made amenities include swimming pools, tennis courts, community buildings, and other recreational facilities.

Appraiser - A person qualified by education, training, and experience to estimate the value of real property and personal property.

Asset - Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).

Binder - A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate.

Closing - A meeting at which a sale of a property is finalized by the buyer signing the mortgage documents and paying closing costs. Also called "settlement." At this meeting, ownership of the property is transferred from the seller to the buyer.

Common area assessments - Levies against individual unit owners in a condominium or planned unit development (PUD) project for additional capital to defray homeowners' association costs and expenses and to repair, replace, maintain, improve, or operate the common areas of the project.

Conventional mortgage - A mortgage that is not insured or guaranteed by the federal government. Contrast with government mortgage.

Down Payment - The part of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage.

Homeowner's insurance - An insurance policy that combines personal liability insurance and hazard insurance coverage for a dwelling and its contents.

Homeowner's warranty (how) - A type of insurance that covers repairs to specified parts of a house for a specific period of time. It is provided by the builder or property seller as a condition of the sale.

Non-liquid asset - An asset that cannot easily be converted into cash.

Power Of Attorney - legal document that authorizes another person to act on one's behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time.

Servicing - The collection of mortgage payments from borrowers and related responsibilities of a loan servicer.

Title Insurance - Insurance that protects the lender (lender's policy) or the buyer (owner's policy) against loss arising from disputes over ownership of a property.

Question and Answers

I've been bankrupt can I still invest?

Don't hide from the truth. You made financial mistakes. Lots of people including Donald Trump, have gone bankrupt – almost - and made financial mistakes.

Be proactive. Be brave. Ask past creditors how you can make amends. Talk to a credit counselor. Talk to bankers. Do what you need to do.

Yes, this may require some humility. Yes, you may have to cut up credit cards and drive an old car. Yes, you may have to put yourself on a strict budget. Yes, you may have to work extra hours. Yes, you may be disappointed when you first try to buy property.

Others have gone through what you are going through and much worse.

If you follow the Military Action Principles^™, ultimately, you will come back strong and you will win. You are a Master of Success. You are tough enough to face reality.

I have to admit that I'm kind of skeptical of this system of making low offers. Frankly, I don't see this happening very often and aren't you only going to make yourself look foolish and get the seller and the agent angry with you?

This system is not about making low offers or winning popularity contests. This system is about buying six properties and owning them free and clear in twenty years. If you are buying a property, aren't you entitled to get the property at the lowest possible price? You make an offer. Based on the seller's needs, he or she can accept the offer, reject the offer or make a counter offer. You don't need your service revolver or special op back-up to proceed.

Here is a success formula to remember SW3/N which means that some will, some won't, so what, next.

In the martial arts we say that you can never be a black belt if you think you look funny wearing a gi. Well in real estate, you are going to be successful if you aren't looking at properties and making offers. To win the game, you have to be in the game.

If you make a first offer on a property of $300,000 and that offer is immediately accepted, how do you feel? Yes, you're thinking, "I should have offered $280,000!"

I work as a physical therapist at a veterans' hospital. I am keenly aware that many of my patients have housing issues. What would you think about my idea to combine my career interest in rehab medicine with real estate investing?

Do your research. There is a lot of material available online. You can start at a site such as http://www.abledata.com.

Start talking and listening. You may have political support and financial assistance available for your projects.

You might also find that there is a commercial real estate component to explore. Can you buy a commercial building and rent clinic space to fellow therapists?

You have a great idea. Go for it.

I wanted to buy a two-family but the bank's appraisal of the property came back too low. I tried to negotiate a new deal with the seller based on the lower appraisal but he refused. The seller told me that it wasn't his problem that I didn't have more money to put into the deal. Was this fair and realistic on his part?

Some will, some wont, so what, next. The seller is free to sell or not sell you the property. Perhaps, you could have tried another lender. Perhaps, you could have suggested that the seller consider a small second mortgage. Don't worry. Keep looking because there will always be new deals for active master investors who are looking for them.

How should I begin my investment program?

You should begin your investment program by identifying a specific investment area of approximately 25,000 people. A specific investment area of 25,000 people will give you enough homes and condos and apartments to make this buying and selling and investing system work – in this size area there will probably be a about 6,000 – 8,000 properties. Since the average person moves every 7-8 years, your specific investment area should average 400 – 800 real estate sale transactions per year. If you are involved in several of these transactions each year, a wonderful thing will happen to you – you will get rich!

What is a purchase money mortgage?

A purchase money mortgage is a second mortgage that a seller gives to a buyer. It never hurts to ask a seller, especially if the seller is an investor, if he or she would be interested in participating in the financing. The seller may like the income from a mortgage and it may help with his capital gains situation. As a buyer, if you have to put less money into the deal, you will have more money available for the next deal.

Remember, you can buy one house and be smart or you can invest in six properties and become a multi-millionaire. Your wealth will make you extremely popular with your spouse, your children and your grandchildren.

I'm ex-Navy – nothing glamorous, I'm a plumber and work in four different towns; do you mean I should choose one town and not invest in all of them?

Yes, that is exactly what I mean. Choose one of them. The most important reason to deal in a single specialized investment area is valuation. Real estate values can change from one section of town to another; from one street to another; from one end of a street to another.

Being able to write a certain zip code on your letters or being able to send your children to a certain elementary school or being able to walk to public transportation can be worth tens of thousands - you've heard that the three most important words in real estate are "location, location and location." Through your extensive and ongoing research into real estate prices in your specific investment area, you will know all of these various value factors and you will use this knowledge to get very rich. The smaller the specific investment area you choose, the easier your research task will be and the greater likelihood for your success.

In the past, you've said that it's even good to buy ghetto property if the deal is right. Is this really good advice?

The point is to get a good deal. The point is not to buy property in questionable neighborhoods. A savvy investor has to know his or her small specific investment area. If you are buying property today to resell tomorrow, your concerns are different from a long-term investor/manager. A businessperson concerns are different from the concerns of a social activist.

Here is the safest advice: investors should not buy property in any area that they'd be afraid to visit 24/7.

My mortgage company told me that I had to spend five hundred dollars on a title search and title insurance. I know that the bank's attorney gets a kick back from the title insurance company. Isn't this all just a scam?

A title search will check title records to ensure that the seller is the legal owner of the property and that there are no liens or other claims outstanding. Title insurance protects you and the lender against loss arising from disputes over ownership of a property.

A title search and title insurance are normal costs of doing business. They seem like just a necessary evil but if a title issue does arise, you'll be protected and grateful.

You are going to make money because you are going to put together a good deal. This is what you do. If the seller, the attorneys, the bank, the appraiser, the home inspector or the title company makes money, shrug your shoulders and wish them well. This is what they do. You can afford to be magnanimous. If you buy six properties and love your tenants, you will be rich.

I know you like your students to find mentors and I have a real estate mentor. He's a guy in our town in his eighties who owns a lot of property. I suggested to this guy that he might want to convert some of his apartment properties to condos but he told me that he was too old to deal with all the canes and nimbys and bs. I didn't want to sound like an idiot. What did he mean?

In some cases, changes in use require town approval. If your project requires approval or a variance, town meetings will be help and, guess what? You find the canes and nimbys. CANES is an acronym for Citizens Against Nearly Everything. NIMBY is an acronym for Not In My Back Yard. Yes, there will be citizens against any and all change. Yes, there will be citizens worried that some businessperson may actually have an idea that will make him or her money. Yes, from his perspective, your mentor may be right. However, from your perspective, winning government approvals could mean lots of money. You are a Master of Success. Fighting is your thing. As for the "BS," you can guess that one.

My youngest daughter will finish college in three years and then I'd like to begin investing in real estate. I really can't afford to buy property right now. When should I begin my research?

I congratulate you on your plans to become a real estate investor but I don't know why you would wait three years. The best time to choose your specific investment area and start your research is immediately. If you already own your own home, you probably have enough equity to begin immediately.

As you do your research, you will find buyers who have negotiated really good deals. They have made money and perhaps a lot of money. Why not you? Isn't the best time to make money when you really need the money for tuition and other general living expenses? You can start your investment program modestly by buying and selling a studio or one-bedroom condominium. As you do your research and acquire knowledge, your confidence will soar as you speak with agents and sellers who will almost assuredly not be as well informed.

After serving two tours in Iraq, I am leaving active duty Marine Corps service and will be starting my own real estate investment business. I know that most people from the Middle East are good regular people but I've just really had enough of foreigners. Because of my war experience, can I decide not to rent to them?

As a Marine, you fight for the American way of life. You fight for freedom. Your fight now extends to enforcement of the Fair Housing Act. The Fair Housing Act prohibits discrimination on the basis of race or color or creed, or religion or sex or family status or handicap or country of birth. If people of Middle Eastern origin are in this country legally, they are entitled to fair housing. You know this.

What are the biggest mistakes that sellers make when marketing their homes?

Rather than doing the research themselves, too many sellers will either under-price or overprice by randomly listening to neighbors or real estate agents. Do your own research and allow the opinions of others to support your data or force you to reconsider your data.

Clutter, dirt and disorganization are big mistakes. As a seller, without over-improving, you should be sure that you have done all you can to maximize the market value. Neat, clean and organized are good buzzwords for sellers.

Trying to save the real estate commission is usually a mistake. All real estate agents are not created equal. Many are ill-informed obstructionists who dabble as part-timers. However, there are the gems, the experienced super agents whom you want to welcome and treat as family members. These super agents can make you money again and again. Hire a super agent and let him or her make you top dollar.

From my experience at making offers, very few sellers are able to answer my very simple question, "How do you justify your sale price?" I am getting very frustrated at dealing with no-nothing sellers. How can I push a seller to accept a fair price?

Your confrontational style is counter-productive. Sellers are under no obligation to sell you their property. Sellers are not obligated to defend their listing prices to you. We are in a free market economy. Any seller is free to ask a high price and, then, not sell the property.

Present your case in a professional manner. Justify your offer with specifics understanding that seller free to accept or reject your offer. Keep making reasonable offers. Think win/win.

Action Plan:

You are a Master of Success, a pleasant professional. You should be taken seriously. Your real estate investment business may have a lot or almost nothing to do with politics. If you are involved with developing, rehabbing, sub-dividing land, converting apartments to condos or any other activities that require governmental approval and oversight be mindful of your attitude and your actions. Make love not war. Make friends in high places. Selectmen, mayors, counselors, assemblymen, representatives, senators, judges, chiefs, inspectors and their clerks and secretaries can hasten or delay almost anything. Play nice.

Average people are like sheep just blindly walking ahead with their noses following the sheep's butt in front of them. This must not be you. Read everything about your specific investment area. Knowledge is power. You are different. You are special. You are a Master of Success. You are the lion.

Support:

• To find real estate associations in your state: http://www.realestateassociations.com
• From the National Association of Industrial and Office Properties: http://www.naiop.org
• From the National Association of Real Estate Investment Trusts: http://www.nareit.org
• From the ABCs or Real Estate: http://www.realestateabc.com
• To learn much more about the business of mortgages: mbaa.org
• For free legal resources: Nolo.com

Inspirational Insights:

Buy on the fringe and wait. Buy land near a growing city! Buy real estate when other people want to sell. Hold what you buy!

John Jacob Astor, b.1763

Put your money where it can be seen.

George Ross, attorney to Donald J. Trump

To accomplish great things, we must not only act, but also dream, not only plan, but also believe.

Anatole France, b. 1844, French author

Accept the hard before the easy.

The Shaolin Master

Everything has its beauty, but not everyone sees it.

Confucius, b. 551 B.C., Chinese philosopher

It is only in adventure that some people succeed in knowing themselves - in finding themselves.

André Gide, b. 1869, French author

Empty pockets never held anyone back. Only empty heads and empty hearts can do that.

Norman Vincent Peale, b. 1898, self-help author

I had no vision of the scope of what I would start. But I had confidence that as long as we did our work well and were good to our customers, there would be no limit to us.

Sam Walton, b. 1918, founder of Wal-Mart

Real estate is a people business; learn to listen.

Marjorie Torres, CEO, Concrete Stories

You must take personal responsibility. You cannot change the circumstances, the seasons, or the wind, but you can change yourself. That is something you have charge of. You don't have charge of the constellations, but you do have charge of whether you read, develop new skills, and take new classes.

Jim Rohn, self-help author

Too many people overvalue what they are not and undervalue what they are.