Getting deals done quickly is something that the gurus push and the newbie real estate investors eat up. Unfortunately, too many people rush into investing and start their investing unprepared.

With that in mind, I wanted to share some great feedback from some of our forum members on a topic discussing quick deals.

1) Do the deals with the best return on investment. You’ll grow fastest by getting the best return on your investment and that comes from the best deals.
2) time is money. A quick deal with a modest profit may be a better return on your time/investment that a deal that makes more money but takes a year to do.
3) time is money part 2, don’t be afraid to spend money to hire others so you can spend you time doing what you do best.
4) This is a team sport. Get people to help you, Don’t try to do this by yourself. Work with the best contractors, attorneys, RE agents etc that you can find.

- Ned Carey

To increase speed and efficiency, treat investing like a business. Talk to people and teach them how to bring you deals that meet your needs. Understand the value of using other peoples skills to support your business. Learn to lead. Read business and leadership books, not just REI books. Meet lots and lots of people. The more people you know that know that you are interested in x type of property, the more deals will fall in your lap. I know someone who had a mailman bring him a deal.

If you are interested in the mechanics of doing a deal like paperwork and such, talk to an attorney familiar with the contract and RE law in your area. Guru courses may have forms and such, but be careful using them without having your local attorney review them.

There is no canned formula for you to make 10,000/mo in cash flow in 3 months, you have to create the formula for yourself. What works for one person can’t work for another due to your motivation, your knowledge, your goals, your focus. You need to create your own path to success. Others can support your journey, but until you realize that there is no magic formula, you will be discouraged. Success in any goal is achieved by knowledge, luck and hard work, the less you have of one the more you need of the other 2, so you might as well focus on the 2 that you have control of.

- Mike Wolfe

There are multiple pieces to the real estate puzzle so, work it from all angles.

Basic process:

1. Locate & Negotiate. (As you listed.)
2. Purchase Contract.
3. Funding.
4. Closing.
5. Exit Strategy: Sale/Rent/Lease Option

There are sub-categories in each step.
The order of the process can be altered to each deal. Mix and match. Repeat.

Start a buyer’s list so that you have potential to sell the property quickly once you have closed on a good deal.

Another option is to partner with another investor to have funds available quickly for good deals.

Research online auctions for deals that are pennies on the dollar.

And, read and learn.

- Becky Burt

For more great advice on getting your real estate investing career going, read some of our starting out investing articles.

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How to Complete Your First Real Estate Deal in 30 Days

Pimco manager Bill Gross is tired of using his fund’s money to shore up Fannie Mae and Freddie Mac. His commentary posted Thursday said the powers that be need to “open up the balance sheet of the US Treasury” which really means in my view “get out your checkbook, Hank, and take care of that housing mess”.

Since Gross’s Total Return bond fund is heavily invested in Fannie and Freddie mortgage-backed bonds this is obviously sound albeit self-serving advice he’s giving the Treasury Secretary, Hank Paulson.

This is currently the theme in Wall Street circles…bailing out or privatizing the GSEs will bring housing stability. Warren Buffet, Alan Greenspan and now Bill Gross are all encouraging Paulson to do something…anything. I’ve written on the previous two, so now it’s Bill’s turn.

What Is Bill Gross’s Solution?

Strangely it differs greatly from the other two in material ways. Gross wants the government to starting writing checks to the home owners themselves through subsidized home loans or simply to buy foreclosed properties. He argues the government should not be bullied into thinking helping the homeowners is morally indefensible.

He puts it this way,

“The bill for our collective speculative profligacy, obvious in the deflating asset markets, can be paid now or it can be paid later. The tab will be less if paid up front, than if swept under a rug of moral umbrage intent on seeking retribution for any and all of those responsible.”

Let me translate: “Speculation and stupid assumption were made by all of us…Wall Street and Main Street alike…so don’t just help those holding the mortgage debt (Wall Street)…help those holding the homes too (Main Street). Get off your moral high-horse and give them some money…it will be cheaper in the long run.” (Interpreting Gross is like trying to interpret Greenspan, more art than science. But after 16 years of watching them both, I’m getting the hang of it.)

I agree with him on both his logical and moral arguments.

What is the logic behind shoring up the debt holders (mortgage holders) and not the asset holders (home owners)? If the asset values were upheld, the debt holders are taken care of simultaneously.

What is the morality of helping out Wall Street while forgetting about Main Street? I rather the government not spend tax payer money on any bail outs, but once they open the coffers to the big boys, all bets are off!

It’s clear with the Economic Stimulus package putting about $150 Billion in the hands of everyday Americans this year, the current Administration isn’t “morally” against hand-outs. So why the hesitancy to give another hand-out/bail-out just to troubled home owners?

Is it because they think they are helping out a bunch of real estate speculators?

Is it because the word “foreclosure victim” is like saying “underprivileged” and God knows the current Administration would never acknowledge there is such a person in our society?

Is it because a home owner bail out would mean admitting their regulators including the Fed, the SEC, and OFHEO were all asleep at the wheel?

I don’t know the answer, but it’s clear both Gross and I (and now you too) can see the contrast between the speedy action to bailout Bear Stearns, for example, and the hesitancy to help even the most deserving home owner. It is real. And I agree with Gross the government should shed their bias quickly and help the people, not the Wall Streeters.

I’d rather Paulson write checks to homeowners than buy stock in Fannie Mae or Freddie Mac. Once you start down that road, you have to finish which will likely cost $400 Billion. What could real foreclosure victims do with even half of the sum?

Most people learn their lessons when they make stupid mistakes, even if they get bailed out…companies never do. Companies formulate the next plan to privatize profits and socialize losses since it worked so well the last time.

So I’ll end by saying, “Hank, get out your checkbook and make it payable to…”US Home Owner”.

Anything less will be business as usual in Washington.

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Bond Giant Bill Gross Tells Treasury To Get Out Their Checkbook

It has been a long time coming . . .

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Promote Your BiggerPockets Real Estate Profile with New Badges!

So I see one of my friends that I haven't seen in a while when I was in Florida, and she tells me I look disgustingly skinny (basically, she calls me a hideous freak). Well, I tell her that I'm training for a marathon, so I'm sure that has something to do with it. And here's the other reason: I HATE cooking. I have the worst eating habits. If it's not in the frozen food section, can't be cooked in a microwave, or made by my personal chef (Mr. Boyardee), then I don't eat it. Anyways. About two months ago I'm at Giant staring at the TV dinners and Healthy Choice TV dinners are 50% off (yes, you know where this is going). I pretty much bought out the store and now have a lifetime supply of Healthy Choice meals. The problem is, that these meals have about .003 calories. So over the next few months I will probably wither away and die (how come they couldn't have Hungry Man dinners on sale"¦.gosh!)

Before I start to look like Nicole Richie back in the day, let me go over the paperwork needed when you have found a tenant/buyer. Here are the 9 necessary docs.

1. Property Condition Move-In Form - Walk through the property with the tenants and note any problems, blemishes, etc"¦.
2. Renter’s Insurance Form - The tenants have 7 days to fax back the form with proof of renters insurance (I also staple the card to the form of the agent I work with).
3. New Tenant Information Form - A welcome letter for your new tenants. This letter should list the names and phone numbers of all utility companies, the day the trash is collected and anything else they need to know about the property.
4. Property Maintenance Agreement - This form states that the tenants are responsible for the first $300.00 in repairs and they must also get a home warranty. (I have my tenants use American Home Shield).
5. Option Agreement - States that the tenants have a one year option to buy the house at x amount of dollars. And that if they violate the terms of the rental agreement or any other agreements, the option becomes null and void. (This does NOT get recorded at the courthouse. You only record the option agreement between you and the seller).
6. Payment Policy - This form only has a few sentences in huge font that state: Your company has a zero tolerance policy for non-payment of rent, that evictions start on the 5th and there are no exceptions. (and that you can murder them for non-payment of rent"¦..I wish).
7. Property Disclaimer Form - This is the same form you signed with the seller. Each state has their own disclaimer/disclosures about the property.
8. Lease Option Disclosure - This form says that the tenants understand they have an option to purchase this property. And that you might not be the owner of the property and may only have an interest in the property (this is important"¦.in a sandwich lease option you only control the property and you need to disclose this).
9. Rental Agreement - This should be iron clad and cover everything. My current lease is 7 pages. Make sure you have your lawyer review it. (Maybe in another post I’ll go over the key paragraphs of my lease).

Well, this week I’m headed to Florida again. I’m driving down, because I’m going to leave a car there"¦.so I’m looking forward to a good ole’ 12 hour road trip. And in my car will be all of my real estate and marketing CD’s so it can be a productive 12 hours. By the way, right now in my microwave is my Healthy Choice mash potatoes (I think that’s how you spell potatoes, but I’d better ask Dan Quayle) and broccoli meal"¦..de-lic-ious! Til next week.

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9 Documents Needed For Your Tenant/Buyer

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BREAKING: Announcing BiggerPockets Bulletin - Social Real Estate News Site

Concern is mounting among some analyst types that nonresidential building–which till now has somewhat made up for the decline in residential building–is heading south because of banks.

The New York Times reports today that the experts are worried because banks have weakened due to losses on their mortgage loans and that this may make them start tightening up on lending to nonresidential projects the way they have for residential ones.

And, there is some slight evidence coming in to support this concern: Nonresidential activity fell in July by 0.7 percent–that hadn’t happened apparently since December 2007.

Meantime, according to the latest Commerce Department figures, construction spending “took a bigger than expected tumble as housing activity dropped to the lowest level in SEVEN years…” reports the Associated Press.

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Nonresidential Building Sinks: Fears Banks Will Cut Back Loans For Nonresidential Projects

Many small apartment building owners make the mistake of not treating their tenants as valued clients.  It’s easy to do considering the fact that many tenants can really cause headaches with late rent payments, noise complaints and other day to day issues that can be a thorn in the side of a small apartment building owner.  Many small apartment building owners also make the mistake of taking it personally when a tenant is late paying his or her rent.

The apartment building owner may be a real clinical and calculating mathematician when analyzing the return on investment for their property but when it comes to dealing with the tenants they may take some things personally and get heated under the collar.  This is bad for business.  Professional multi-family owners and managers have learned this the hard way.

In most areas of the country tenants will have a choice of where they want to live and they have chosen to live where they are for one or more reasons.  Maybe they are living in that complex because it is close to work or the supermarket or the shopping mall.  Maybe they like the fact that the apartment building is located on a nice residential street.  Maybe they like the playground for their kids.  Whatever the reason that the tenant has for living at a particular property is known as his “reason for renting”.  However, if the “reason for renting” is countered by something equally or more negative, such as unresponsive maintenance technicians or rude and unhelpful office staff then the tenant will begin to look at other properties to live in when the lease expires.  In other words if the problems and negatives experienced by the tenant are bad enough they will become his or her “reason for leaving”.  If the apartment building owner or manager gives too many “reasons for leaving” to too many tenants it will have a costly impact on the net operating income.

The cost to replace a lost tenants over time can far outweigh the extra efforts and costs associated with maintaining a strong base of perpetual tenants with good management practices.  Going a few steps above and beyond will ensure that your tenants have a positive renting experience. 

A few things that a the owner could do to create a better living experience for his clients/tenants could be the the following:

1)  Create a community blog online where other residents could get to know each other.

2)  Create a direct deposit through your financial institution to make it easier for tenants to pay the rent.

3)  Throw a Halloween party.  Throw a pizza party.

4)  Give incentives to pay rent on time. For example, you could offer a $75.00 gift certificate to a nice restaurant for the tenants who pay their rent on time all year.

5)  If your community is large enough you can create an online newsletter.

6)  Try to arrange a group discount for all renters at your complex for car washes.  You will be surprised how many business will offer a group discount if you just ask.

As you can see, with just a little bit of creativity you can provide a tenant living experience that will foster many “reasons for renting” and fewer “reasons for leaving”.  In fact, most of the suggestions above can be implemented for little or no cost.   If you even retain just a slightly larger tenant base using the above methods you will be amazed by the return on investment.

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Landlords: Keeping the Tenants Happy