September 25, 2009

The James Smith YouTube Channel

I just wanted to let everyone know that I am setting up a channel on YouTube.com that will broadcast dozens of tutorials on topics ranging from real estate, retirement planning and investing in general. My training team has done an incredible job helping me put together the best information available in my seminars and boot camps and now they are helping me build online training as well.

We plan to add a few new tutorials every week so be sure to click on the Gold "Subscribe" button on the YouTube page. The subscription is free and it will automatically load my new videos into your personal YouTube account, each time we upload something new. It won't bombard you with emails or anything of the such - just good information, in a convenient location.

Go ahead and check out my channel!

James' YouTube Channel
www.youtube.com/jamessmithseries

Be sure to comment and leave your feedback! It will help my team continue to enhance the training quality.

Self Directed IRA: Getting Started (Part 1)

Clips from the stage!

Self Directed IRA: Investing in Gold, Silver & other metals.

Outline for Due Diligence

September 21, 2009

2Q 2009 Housing Price Index: Appreciation by State

The real estate market never ceases to amaze me... perhaps that is one of the reasons that I love investing so much. The Federal Housing Finance Agency release their second quarter report, which provides a break down of appreciation state-by-state. 

According to the 2Q FHFA Housing Price Index, the top ten states for appreciation are:

1 - Alaska
2 - Oklahoma
3 - North Dakota
4 - South Dakota
5 - Kentucky
6 - Texas
7 - Missouri
8 - North Carolina
9 - Kansas
10 - Wisconsin

While some people may be inclined to rush to these states and start investing, take a step back and breathe first. If there is one thing the hyper market taught us, it is that appreciation alone does not constitute a sound investment. In fact, I have been spreading this very message for the last 20 years. It's not what you have on paper that makes you secure, its what is coming in each and every month that makes a difference - it cash flow.

Affordability is hovering around a 30 year high and single family homes in many areas are at prices where investors readily rent them for consistent profits. The key to cash flow is being able to find a great property, buy it at the right price and acquire financing that allows you to rent the property for than your mortgage payment. If you are not sure about how to accomplish these steps in fine detail, then be sure to order my home study course. It comes with 8 easy-to-read investor guides, along with audio versions for those of you who prefer to listen to books on tape (CD).

September 17, 2009

Condo Investment Heads-Up

In the recent market, few property types have been hit as hard as the condo market.  It is my opinion that developers vastly over estimated people’s desire to live in a box… regardless of the maintenance perks. With a large percentage of condos within complexes going into foreclosure, investors need to be extra diligent in their due diligence process.

Due diligence, the process of assessing a property’s value and condition prior to closing, is more complicated today than ever. One additional check that needs to be added to all condo investors’ lists is the need to review the health of a condominium’s respective Home Owner Association (HOA).

HOAs are established to maintain the value of a community by providing property maintenance, rules, and general insurance. The cost to operate HOAs vary considerably and HOA budgets have been severely impacted by the foreclosure wave. When home owners stop paying their mortgages, they usually stop paying their HOA dues as well. When enough residents fall delinquent on their dues, a condo complexes maintenance may suffer or worse… the insurance coverage may lapse from non-payment.

Before investing in a condo, ask for a copy of the HOAs bylaws and ask for an accounting of current and projected dues. Also, ask the head of the HOA for a disclosure of the master insurance policy and if they anticipate any special assessments due to budget shortfalls.  

September 11, 2009

Seller Financing: More Relevant Than Ever!

With all of the discussion about the current state of the economy, it surprises me how focused people get on the factors that just aren't in their control. In the news this week, there are articles about a major U.S. job index increasing 6 points in the last 30 days (largest jump in 4 years) and about French and U.S. think tanks stating that the recession is drawing to a probable end.

As you can imagine, I have people come up to me all the time and ask me what I make of the news and the current state of the economy. While the question is a fair one, instead of asking what I think about the economy, ask me about how you can capitalize on the economy. Theory and postulates are good and well, but at the end of the day, you have to take meaningful action in an effort impact your economy.

One of the enormous benefits of this economy is the fact that institutions have been rocked to their core. Non-traditional and mainstream financing is more difficult to attain today than it was a few short years ago. Rather than sit on the sidelines and wait for banks to start lending again, savvy investors are using seller financing more effectively than ever.

If sellers cannot find qualified buyers and buyers cannot qualify, than the most effective solution is for the seller of the property to actually finance the buyer, with the property as collateral. There are dozens of forms of seller financing (i.e. agreement for deed, land contract, wraparounds, seller seconds, installment contract, contract for deed,  installment trust deed etc) and trained investors need to learn how to structure a deal that gives the seller security, cash flow and a down payment (if possible). While most properties are purchased via bank financing, seller financing is completely legal. In fact, many deals that involve seller financing utilize escrow, closing companies (closing attorneys and escrow agents in non-title company states) appraisals and inspections.

Prior to the rise of widely available bank loans (circa 1950's) seller financing was one of the most common financing strategies. Like most trends, everything comes full circle. Several years ago, banks financed everything imaginable, today your seller just might also be your bank.

When you are considering a request for seller financing, you need to assess what the owner's need are. Do they need immediate cash? If they have equity and were to receive a large lump sum, how would they reinvest the money (a loan to you might yield a higher rate of return)? If they don't have equity, what is their mortgage rate, term and is there a balloon?

Not every seller who wants to finance you, can actually afford to. As a disclaimer, be sure to consult a legal professional if you ever have questions or are unsure about how to structure a deal. Attorneys, like other professionals are hurting for business and may be willing to discount their rate so that you can receive top-notch advice for a cut rate. To find a qualified real estate attorney, you may want to talk to your local title company. They work with real estate attorneys on a weekly basis and they could give you an idea of who to use.

September 9, 2009

Residential Market Is Showing Strong Signs of Support

Buyers of residential real estate have a little more to smile about in July than they did just a month prior. According to the National Association Realtors, pending home sales increased 3.2% from June to July, continuing an upward trend that has lasted for 6 months.

The index was created in 2001 and the 6 consecutive months of pending sale increases is an index record. Relative to July 2008, pending home sales are up over 12%.

It seems as though the first time home buyer tax credit is having a substantial impact on the middle class, residential home market.

Contact Me

Customer Service Email

Official Website

Just Getting Started





My name is James Smith and I want to welcome you to my blog. For those of you who know me personally, you are probably shocked that I am finally blogging, but I finally broke down and started this blog so that I can stay in touch with the great people that I meet nationwide.

If you do not know me, allow me to introduce myself. I am a real estate investor, speaker and trainer. I am a featured speaker for Get Motivated and hold several Financial Success Conferences a month. I put a tremendous amount of effort into making the Financial Success Conference a high energy, informative and innovative event.

During the 3 day event, investors learn dozens of advanced strategies about how to build wealth quickly and efficiently. Make no mistake, this is not a “get rich quick” conference. My team and I teach people how to systematically build wealth by through real estate, stock, currency and especially self-directed retirement accounts.

A realization that hit me a while back is that in life you are ultimately taking two risks; either you take the risk of becoming financially independent or you take the risk that someone else’s attempt to do so will employ you long enough for you to retire.

Financial independence starts with a belief – a belief that you are no different from the men and women who grace the pages of Forbes. You have to believe without a doubt that the only obstacle that has held you back is your own lack of knowledge about how to succeed.

If you have this uncommon belief, then I can equip you with the knowledge and tools to succeed. If you do not have this belief, then I hate to say it, but nothing shy of the lottery will give you the independence that you think you want.

In the coming weeks, my team and I are going to build out a library of free downloadable tutorials to help you get started (www.jamessmithseries.com). When you are ready to kick it into over drive, give my company a call and let us train you one-on-one!