Title Searches: What are They?

This is geared more toward beginning investors, but here is a video that seems to do a decent job explaining what title searches are...and are not...(Yeah, this guy is in Texas, but it seems to give a good overview in less than 3 minutes.)



For more detail-oriented people, this link highlights 50 different things that a title search covers:

http://www.titlesearch.com/30pt.html

My personal favorite...Bail Bond Liens...Would you EVER have thought of THAT one?

For a few other items on this list, it offers a link that will show EXAMPLES. I think this is very cool!

FHA Loans - Reasons Home Buyers Love FHA Loans

Check out this article:

http://homebuying.about.com/od/financingadvice/qt/FHALoansAreBack.htm

This article does a great job outlining the benefits of targeting people with FHA loans. It also lists a couple of its limitations.

Working Toward Your Goal: Do Something EVERY Day

My title suggests the story. If you want to achieve something badly enough, figure a plan. Make sure that plan outlines your steps clearly. Make sure to have a little progress every day, even if it is just a little tiny spurt.

It is easier to keep momentum moving than to start (or restart) it.

It keeps your mind focused on your goal. Subconsciously, you will think about it constantly.

People will know where to find you. As in most things, real estate investing is largely about networking. You can find people, but it's great when they find you. Make it easy for them by making your presence predictable.

A marathon isn't done in the first minute--not even by those amazing Kenyan runners. Just keep working toward that finish line.

Cool Website: BiggerPockets.com

I don't have much to say, but I am suggesting that beginning and advanced real estate investors check out www.BiggerPockets.com website.

A friend of mine who invests in the Flint, MI Area (a smaller city about 60-90 minutes from Detroit) suggested this site to me.

What do I like about it?

1. It has a lot of articles. It contains articles for beginners and advanced real estate people. There was even an article about REITs in there.

2. It lists properties, but this is probably nothing all that special. It's just a nice touch while you're in there.

3. My FAVORITE part is the forums section. There are several forums, and many are probably very good. However, the one that makes me return to this site is the forum that ANALYZES DEALS. This site contains conversations of people putting out a deal (often with the key numbers attached), and other people comment why it is or is not a good deal. They also mention when they need more information, often citing what info is missing.

Overall, this is a good site.

If someone reads this and knows another similar site, let me know. Please!

Tip: Form or Join Support Groups

A good idea for anyone but especially beginning real estate investors, join a support group of people who want to invest in real estate. While usually any support group is better than not having one at all, there are some guidelines I would like to suggest:

1. Attitude: Try to bring a good attitude yourself. This is most important, as it will rub onto others. Also, it's the one thing that you can always control. Control it. Additionally, try to surround yourself with people who feel energized. You often become like the people in your crowd. Surround yourself with people that make you want to keep going. Plus, be patient when things don't go quite the way you planned.

2. Aptitude: It helps to have someone in the group that knows a lot. Sometimes, you are fortunate enough to get two (2) or three (3) people who can guide the rest. It is nice to bring someone else who is not as far as you, too. You learn a lot by teaching (see previous post), but it also is a checkpoint. If the person behind you starts to catch you, you know that you need to pick up your pace. Learn how easily each person learns, as this will affect some planning. Not everyone learns at the same pace.

3. Ambition: First of all, you NEED to feel this. Without this, you will be scared. Real estate is somewhat complicated (so I'm told), and you will hit some rough patches. If you have a burning desire, you will see this as progress and one step closer to success. It helps if, at least, one other person in the group has a similar ambition level. When blended correctly, you will lift each other and maybe other people as well.

4. Availability: Who cares whether you have a great group if you can never get together? Try to establish this quickly. If it's too hard to please everyone, maybe split into smaller groups. The smaller groups can always exchange notes.

5. Skill Set: Understand YOUR skill set. Even if you're a beginner, you know something that someone else does not. Plus, try to learn what other people bring to the table. Remember that every person can bring something. I won't guarantee that everyone will be willing to share it, but many are. You might find a partner, a teacher, or just simply an idea of something you want to improve.

6. Peer Pressure: It's a good idea to include or find some members within the group who make you want to do better--people around whom you feel too foolish to let down for not doing your share of what you promised.

Most of the time, support groups are great, but if you take these things into consideration, you will be well-positioned to get the most you can from the group.

Offer to Teach Something

Teaching does a lot of things for you.

• Force Learning: When you are obligated to teach people something, you MAKE yourself learn it. If you didn't know it, you're less likely to put off teaching yourself if you know other people are depending upon you to teach it to them. If you know it already, you will further cement your understanding about your topic.
• Gain Perspective: Often, people will ask you questions that you never considered. This will make you understand your topic even better. Plus, it prepares you for objections that you need to overcome when you are trying to sell something later. You will better understand people's insecurities tied to a topic, and teaching will give you that exposure to them, and you will be better prepared to handle those.
• Build Contacts: Everyone in that classroom will get to know YOU better than any of their classmates, at least during the class session. Each person gets a glimpse of your ability to communicate and display your professionalism. Most of all, you don't have to "trick" them into giving you their information. They are coming to you willingly providing their info.
• Increase Status: As a teacher, you become a momentary "expert." This will be many people's first impression of you, and you look the part of a knowledgable leader. Many people will refer other people to you.

The first two (2) reasons improve my marketability. The last two (2) reasons increase my marketing and advertising efforts: free contacts and referrals.

What can I teach? I'm new. Anything I know, you know, already.

Okay. So you might appreciate the benefits of teaching, but what can I possibly teach?

You'd be surprised, but even if it is true that people know it already, many people know something but feel validated when they hear another "expert" telling this to them. It amazes me to see how many people do not have confidence to recognize that they "know" something, even when they really do.

Plus, it's important to realize that we all have different experience and knowledge bases. Someone reading my posts, for instance, might have 25 years of real estate investing experience to my NONE, but chances are pretty good that somewhere in here, I'm presenting an idea he or she has not previously considered. Don't take your knowledge for granted; appreciate and embrace it. Let other people decide that they don't have a use for it.

What do you teach? Consider the following approaches:

• Recent Lessons: Simplest way to put it...Ask yourself, "Do I know more today than I did a year ago?" Most likely, the answer is a resounding, "YES!" What did you learn? At the very least, you can teach THAT to whoever has not had the benefit of your past year.
• Prior Experience: Another angle for potential topics is to consider your experience prior to you becomming an investor. What did you do in your life beforehand? What made you think that you might be able to do this? I bet you did something before you studied real estate that has helped you. Other people might not have that benefit. You can share THAT with them.
• Hot Topics: The beauty of the Internet is that you can research nearly anything. After attending a few meeting sessions or listening to a few conversations, you start hearing a pattern of what interests peoples: concerns, opportunities, and frustrations. Research one of these, and give a talk about it. If enough people mention the topic, enough people will be interested in what you have to say.

I can't get a teaching job anywhere. I don't have a degree, a teaching certificate, or whatever.

While I have taught in four different colleges (doesn't that make ME special), this is only a neat fact to deliver. I have taught in

• Libraries
• Panera or McDonald's
• People's Homes

You can teach anywhere you can meet with someone who wants to learn.

Have too many people to teach at Panera? Most libraries have special study or conference rooms. If you're big-time enough, you can rent space at a hotel, but for us beginners, I suggest that you use the free resources.

I haven't tried these, but while I was writing this post, I realized that I've never (but should have)

• gone to the city government to ask if there is any space I can use to teach people for free.
• approached local charities or Rotary-like clubs
• asked colleges if they have space available (outside of the standard classroom)

If anyone decides to use any of these ideas or likes them, let me know. I'm pretty passionate about sharing knowledge, as you might be able to tell. In fact, you don't have to be a real estate investor to apply these.

Give Testimonials

That's right! Give testimonials freely.

Why?

Besides helping out someone else (which is usually a good thing to do), they

• provide free advertising (give name and company; maybe slip in your benefits, too)
• showcase your communication skills or accessibility
• demonstrate that you acknowledge other people's good work (making them more likely to want to work with you)
• help separate you; not everyone is willing to take time to do this

Idea: Testimonial Source

This will be a quick one today, but someone gave me an idea worth mentioning.

Every business has different phases to it--including real estate. You can get a testimonial from people different phases.

For instance, you could get a testimonial from your

• Real Estate Agent
• Contractor
• Lawyer
• Mortgage Officer
• Hard Money Lender

Any of these people can vouch for your professionalism, your ability to pay them on time, your willingness to make things easy for them, etc.

Renting or Selling? Know how you want them to get there.

Whether you're trying to sell your property or find a tenant to rent it from you, it's really important to know more than one way (if possible) to get there.

Why?

You want a person to see your "good side" when you first meet them. It's no different for a property. Let them see the good, picturesque side of town. You know. The one with the nicer looking homes and better kept lawns. You don't want to route them through all sorts of boarded up homes. You really don't want to take them through rough neighborhoods. Remember, you are trying to make a good first impression.

So when someone asks you for directions, don't tell them to use Mapquest or some other similar direction-giving website. Know which way will let them see the best your property's neighborhood has to offer.

Extended Advice: Beginning or Advanced Real Estate Investors

Honestly, even if you're not an investor but simply looking to buy a home, you should listen to this.

This Blog Radio Entry was done by Darrick Scruggs of My First Michigan Home (www.MyFirstMichiganHome.com).

Warning: It is long, almost 30 minutes. Let's face it, he's going to promote himself, but quite honestly, his self-promotion is only three minutes total--TOPS--throughout the ENTIRE recording. He covers enough different and interesting topics that I strongly suggest you listen to it, even if it's in chunks.



Here are some of the key topics he addresses:

$8,000 Tax Credit: This includes the expiration date, who qualifies, and the provision to keep the ENTIRE credit without repaying it. He even addresses whether Land Contracts qualify. He also compares this to earlier tax credits the government offered and explains why this one is so special.

First Time Home Buyer: If your prospective buyer owned a house before now, it's POSSIBLE he or she still qualifies as a "First Time Home Buyer." This is important, because these loans are the easiest to obtain right now. That means this pool of buyers have the greatest access to money to buy your home.

Home Buyer Education Program: Buying a home is pretty, no, really scary. Why? Because there is so much paperwork and money involved, it becomes overwhelming really quickly. Darrick outlines this.

203K Program: This is a special program, enabling someone to get funds to rehab a home in certain situations.

My First Michigan Home Services: While he is promoting his business, he does a great job explaining how he helps the buyer. He walks people through the entire process, inclucing credit repair, applying for and obtaining loans, budgeting properly--not overextending yourself, ways to expedite the buying process, etc.

I'm going to take a moment to brag on Darrick. I happen to know him, and I'm really proud of him, anyway. He's a special talent with a kind heart to match. There's more, though! Through his My First Michigan Homes (and other companies that he owns), he wants to adopt many Detroit families through the Volunteers of America. The number of people he helps is directly dependent upon the number of homes he sells.

As Darrick puts it, "There's no right way to do the wrong thing." Darrick is finding all sorts of ways to do the right thing.

You can visit his page at www.MyFirstMichiganHome.com
or his blog at www.MichiganPropertyVirgins.blogspot.com.

Tip for Landlords: Section 8 Tenants

Over this past weekend, I attended a one-day seminar presented by Dave Seymour of the RE Mentor company (www.REMentor.com). For those of you not familiar with this group, this is founded by David Lindahl, a commercial real estate guru.

Certainly, I learned many things that introduced good things to me, but this one keeps resonating through my mind:

Section 8 Tenants: Make it a requirement that they have a job.

Let's explore...

Downside: Less guaranteed money (Yeah, isn't that the BENEFIT of a Section 8 Tenant?)

Upsides: person tends to be more responsible, spends less time sitting around beating up your property, tends to have more ambition (read: might clean the place once in a while--increased self-image equals actions reflecting more pride), and they tend to be more grateful.

More grateful?

A lot of people receiving Section 8 rent subsidy--only partial--often have a hard time finding a place they can live since many landlords are scared by them. Most landlords like Section 8 tenants, because they represent guaranteed money. Tenants with partial subsidy do not provide this; so many landlords get discouraged. However, this tenant base cannot afford housing on their own. That's why they are getting SOME subsidy in the first place.

Here you are willing to provide them a place to live that fits within their budget. They want to keep working, because they won't be able to afford to keep renting from you, otherwise. You are one of the few people who will do this for them.

I'm not sure about you, but after this perspective was presented to me, I know that if I ever become a landlord which type of tenant I prefer.

From my perspective, great idea, Dave!

Market Yourself for Free: Make a Blog

I know a lot of beginning investors who want to advertise their service, but I hear them complain that they don't have enough money to advertise.

How about I talk about one of the ways you can advertise--FOR FREE?

You can advertise yourself writing a blog. (I use Blogger.com, but there are others, if you prefer.) The idea is to provide information that will help people. This way, they WANT to return, maybe even telling other people about your information that you offer. Ideally, you can create a link to your website. Even if you do not, is there anything stopping you from putting in your phone number or e-mail, if you're trying to generate calls?

Some people are worried that it won't look professional like those other websites. Let me put it to you this way. Would you rather visit a professional looking SALES site, or would you rather visit a place that looks so-so but has AWESOME information? I know my answer. You can make your blog look like a sharp website. (Don't use mine as an example. This isn't my objective.)

Plus, there are a whole lot of other twists. Just to name a few: Adsense, Affiliate Marketing links, and Links to Partner Sites.

The biggest thing I see is that is gives a beginning (or anyone else) a chance to advertise (preferrably passively) what they do, and this can be done for free.

So now that you have, at least, one place that you can advertise yourself for free, what's your excuse NOW?

Testimonials: Don't Need to be Perfect: Just Go Get 'em

I know that I don't need to tell anyone that it's always a good idea to get other people saying good things about you. It's also stating the obvious that it helps when we can document these good words about us.

So, why do we all know this, but we still use don't really get them? (I'm included in the guilty party here.)

This post is to honor someone who does a great job with this. Plus, I want to shed some light how easy it could be.

Must all testimonials be IN WRITING? I think you know the answer to that, but here are a couple of examples from a couple of people in a company called The Best Michigan (TBM) Homes (owned by Saravanan Peelamedu and Ron Ristovski) at www.TheBestMIHomes.com.

From a home buyer:



From an outside investor to this company:



How long do you think THESE took to make? No, they're not high-production quality, but the important part is that they have proof from other people that they do a good job.

Basically, if you've done something good for someone, and you know they appreciate it, why wouldn't they want to help you help other people the way you helped them? Just ask for them. Don't be shy!

Quick Tip: Marketing through Networking: Post Comments on Other People's Work

Would you like to bring more people to your site? The more people you have visit your site, the better chance of getting them to buy from you.

Here is a quick tip that only recently occurred to me.

Post comments on other people's work.

1. Will position you to learn something new. This is always a good habit, anyway, but you will try harder to learn new things when you're looking for new places to comment.

2A. Generates intrigue from the Author. Most services send an e-mail to the author when you place a comment. Even YouTube does; so I am using the term "author" loosely for this--doesn't matter.

2B. You will probably earn a warmer lead from that author. Comments help people's pages get a higher search result ranking, bringing them closer to the top of a search. Think the author won't appreciate it?

3. Generates intrigue about you. Especially if you leave an interesting comment. If you make enough of these (or place one on a site that enough people see), you will have people wanting to learn more about you.

4. Could generate more traffic to your site. This occurs one of two (2) ways: profile on that service containing a link to your site or placing a backlink to your page on that site. Be careful! If you have the luxury of placing your link on their site, this will help your sites search engine rankings, bringing IT closer to the top when people search.

Where can we place comments? Just about anywhere: YouTube, articles, press releases, blogs, Facebook, etc.

So let's all try to support each other. Let's find each other's material and place more comments.

Ask for Help: Don't be Afraid

Even if you are not an investor (but it's true especially if you are), ask for help.

Years ago, I remember someone telling me that Ted Turner (You know, the owner of the Atlanta Braves, WTBS, and probably many more things?) got started with a small radio station. He went on the air, and he simply asked people for money. I don't know whether this will work all of the time, but it seemed to work so well for him, I think we'd all be foolish not to try. I don't know comfortable I am asking for people's money, especially when I am just learning something, but I've learned to feel more comfortable asking for help.

Asking for help (often) does a lot of things for me:

• Makes me stop fighting myself: I'm not always happy to admit that I do not know something, or that I cannot accomplish something on my own. Once I realize that I can't or shouldn't go solo, then I stop wasting energy. Many people do not want to "look stupid." I don't mind "looking stupid," but I really do not want to do stupid things.
• Builds My Network: Many people, including myself, love to help people. Other people, including myself, love to be the expert at something. Some people will be irritated by the request, but many people appreciate a chance to share their world with you.
• Provides Me More Information to Teach Other People: This also builds my network of people, which might help build a customer list. Also, learning material that I teach later only forces me to learn things better.
• Supplies You with Help You Need: Duh! Isn't this what we wanted or needed in the first place? The important part of this is that it allows me to spend more time implementing good ideas than simply trying to figure out them. Analysis is really fun for me, but being able to deliver results earn a feeling that is tough to top.

I know that a lot of people have a hard time with this. If you fall in this category and have questions, please ask me. I'll gladly walk you through it. Just like there are benefits to asking for help, providing help does, too.

Thanks for Your Support

This does not count as a "post" that will meet my "committment" that I sent to people (MIN: 4 Posts/Week).

However, I want to thank everyone who is helping me commit to doing something toward my goal and doing it constantly. I am amazed how many people offered support and help.

My personal goal is to post every day. I will have the most difficult time meeting this goal when I have events that last deep into the evening following work. This does not mean that I will not do it, but I'm still struggling to find a way to make it happen on these nights. (Notice that I missed last night.)

So...Thank you, everyone. The response was a whole lot better than I could have ever imagined.

Investors Need a Buyer? Consider Reverse Mortgages: A Solution for Seniors

Many real estate investors already know about Reverse Mortgages.

However, I bet many newer ones do not. Truthfully, I am still trying to wrap my hands around this concept.

Many investors are having a hard time finding buyers, because many buyers have no cash or credit to buy. A possible solution to help is Reverse Mortgages.

Oversimplifying this, Reverse Mortgages allow (some) seniors to get a monthly payment from the bank or some other lending institution as long as they live in the house.

There are some rules. The senior MUST

• Be, at least, 62-years-old
• Have no remaining balance (or nearly no balance) on his or her home
• Live in this PRIMARY residence

A Reverse Mortgage is a loan against the equity in your home that you do NOT need to repay as long as you live in the home. The monthly amount the senior receives will depend upon the person's age and home value.

Let's be fair. There are downsides.

• When the senior passes, the monthly payment he or she was receiving turned into a loan that needs to be repayed. There is interest on top of this, too.
• Also, if the person living in this home dies, the home is sold to repay this debt, and the home cannot be passed onto his or her heirs.
• If the person living in the home decides to move, the loan--plus interest--will need to be repaid.

How can this help an investor?

• Seniors can use the money they get from the reverse mortgages to buy an investment property from you. You now have a buyer with some money, which is a premium quality in this credit-starved market. Don't you think?
• If you have a senior family member who qualifies and wants to live in his or her home until death, this can be a potential income source for your investments, provided he or she trusts you (and you are trustworthy).

If someone reads this and realizes that I explained something poorly or incorrectly, let me know, and I will fix it.

Over 15 Great Things about The Detroit Area

In the last post, I mentioned how I envision Detroit after improvements.

In THIS post, I want to identify things that are ALREADY really good about the Detorit Area.

• Professional Sports Teams: Red Wings, Tigers, Lions, Pistons, Shock
• Proximity to Universities (within 2 hours): UM, MSU, EMU, WSU, Adrian College, Albion College, Alma College, Olivet College, University of Toledo (Ohio)
• Coney Island Restaurants: Coney Dogs
• Arabic/Middle Eastern Restaurants & Culture: Largest Arabic Population outside of Middle East
• Pizza Papalis: Chicago Style Pizza
• Greektown
• Casinos
• Close Proximity to Canada
• Henry Ford Museum
• Greenfield Village
• Italian Bakeries & Fruit Markets
• Eastern Market
• Woodward Dream Cruise
• Mexicantown
• Close Proximity to Beautiful Parts of Michigan, including beaches and parks
• Near Many Orchards

What else have I missed?

My Vision: Real Estate in Detroit

I like to give tips, although it's hard, sometimes, because I'm just learning real estate.

Today, I'm going to share a little about what I envision for the future and how I see real estate being a part of that. Specifically, this is going to be about investing in Detroit, but it will apply to other downtrodden urban areas, too.

This is going to be a heart-to-heart more than a professional focused post. So hang onto your seatbelts, Ladies and Gentleman.

1. Bridging the Gap

This could mean many things, but I am focusing on two things, which sadly have too much connection between them.

I moved to the Detroit Area in 2001, and I've lived in several areas--more than most 37-year-olds have. Nowhere else have I seen the flagrant division between the city and its surrounding suburbs. In fact, most people won't admit they're from Detroit. I even had one person so much as say that Waterford is a suburb of Pontiac (an urban-suburb north of Detroit).

This not only is silly, but it's also harmful. Why? Economies flow when money flows freely. This statement by itself could spur its own article, but I will stick with Detroit and its suburbs for now. How can a metropolis thrive if it's heart (read: Detroit) isn't pumping blood into it's veins (read: suburbs), and the veins aren't returning that blood into the heart? That's exactly what is happening here.

The other thing I'd like to improve, if not entirely solve, is our huge problem with racism. It occurs in so many forms, but in the Detroit Area, the largest--by far--is black vs. white people. This is true in an area that has the largest Arabic population outside of the Middle East, and this relationship isn't always so cozy around here. No questions, though. The black vs. white thing is a big problem everywhere in the United States, but it's an even bigger problem here than most.

What's this have to do with real estate?

I would like to learn how to make money, and real estate is a key strategy for doing this--not the only but a key method. I want to learn the "how" well enough to be able to teach other people how to do this, too.

I remember when I was a kid, I volunteered to help tutor students in a poor section in Chicago on Saturdays. I thought nothing of it, but someone who connected me with the opportunity told me that I may be the only white person who ever smiled at them. At the time, I was too young to appreciate this fully.

However, years later, I got mugged in Winston-Salem. I was in the wrong part of town at the wrong time. I was nearly circled until I just threw my wallet away from me. It was entirely clear that I was targeted because I was white. For about a half an hour afterward, I was pretty shook up, and I didn't trust ANY black person as I waited inside the nearby store until the police came. During that immediate timeframe, I would be avoiding Obama--maybe even Tyra Banks, and she was HOT in the ninties. Seriously! How crazy is that?

Amongst many other thoughts, I started wondering, what if I hadn't ever had good experiences with black people. Once my head cleared, I realized that these were bad people who happened to be black taking out their frustrations on a momentarily vulnerable white person. My previous experiences allowed me this perspective, but not everyone is lucky enough to have good experiences to realize that this horrible situation was an exception--not the rule.

Many people who are different (men vs. women, nerds vs. athletes, etc.) tend to learn to "get along" once they are forced to work together. Another words, these people are forced into a position to realize that helpful people are better than unhelpful people, regardless of any differences. "Oh...THIS is the benefit to this person being in my life." You have enough of these experiences, the "differences" become invisible to you.

I would like to learn how to make money to teach other people how to make money, including people who are different than me. After that, I would like to teach other people how to teach other people. How easy is it for you to hate me if I'm showing you how to enjoy your life more?

Only one color really matters to me, and that color is GREEN.

2. Improving Detroit

Many people see Detroit, and they see a wasteland. "Blow it up, I say." I hear this often, and it's not unfounded, unless you see the potential. Many parts are not sparkling. However, there is a lot of nice architecture there. For those of you a little uncomfortable (or are truly afraid) of checking Detroit, ask around. There are some really nice neighborhoods in the city. Because Detroit has such a bad reputation, many home prices are the price of a nice car. Some homes cost less than a mediocre one.

I would like to improve these nice structures.

More importantly, I would like to improve entire neighborhoods. I envision an entire neighborhood getting renovated. However, there aren't many stores within walking distance. So I would like to find a way to make it attractive to businesses to WANT to move there, beside these nicely renovated neighborhoods. Of course, police presence would have to be premier. I don't know how to do that, yet, but this is essential to reviving Detroit.

You know what else ails Detroit?

Let me answer that question with a few other questions:

• Do you know anyone who lives in the Detroit Area for any reason besides family or business?
• Is there any reason, besides work or family, that you would visit Detroit if you weren't here, already?

I know! It must be the nice weather. Ummmm....Well, how about the pretty area? For some parts of Michigan this is true. Southeast Michigan, however, is not laden with beautiful areas.

So what do we have to offer? Right now? Very little, if anything.

Why not create some reasons? I don't know the answers, yet, but I'm thinking of things like a huge family friendly indoor water park. (Family vacationers bring HUGE money with them, and they spend it!) Perhaps, we can develop the nicest developed bike or snowmobile trails. After we build activity-based attractions, we can build awesome museums or improve the ones we have. We can build a specialty restaurant area that is family friendly, perhaps transitioning with Wayne State University. There's a start there, but there's so much more potential that can be realized there.

This is what I see for Detroit (and other areas that need help, too). Am I nuts, or does anyone else share my vision?

Over 10 Methods to Create Money for Investing

I believe firmly in education. So I take a lot of classes and attend a decent number of seminars. With all of that info coming at me, it's easy to lose sight of all of the cool things I learned.

So I am reviewing my mass of notes. I'm a slow reader, and it takes me a while. The upside to this is that I can enjoy this great stuff for bunches of days.

So...what's this have to do with my title?

You may have guessed, already, but I came across a memory that SHOULD be mental candy. I really like candy, so I'll make a lot of "sweet" references.

Here is one by Darrick Scruggs, the owner of My First Michigan Home and many other companies.

"Most of your problems will disappear if you become world-class at raising money."

Most people will read this and say, "Duuuuhhhhh!" Many of these same people will say that they don't have any money. If they had money, they say, THEY would be raking in millions, too.

I'm here to tell you that you NEED money, but nobody said it had to be your own. I know! Many of us have heard that, too.

Besides using your own cash, have you considered....

1. Making money as a middleman (a.k.a. wholesaling)
2. Borrowing from a lending institution (not always so easy nowadays but still can be done)
3. Refinance your home
4. Cash in on credit cards (for INVESTMENTS--NOT a new TV!!!)
5. Get a second mortgage (tap into your home equity)
6. Invest with your retirement account (401K, 403b, Roth, SEP, etc.)
7. Solicit other investors (they're always looking for good ideas)
8. Team with other investors
9. Finance with friends and family (Be careful with this one! Really!!!)
10. Work with a hard money lender (think cheaper credit card but shorter terms)
11. Explore Land Contracting

My friend took a loan from his 401K. He has to "repay" it at a rate of 4% or 5%. He used it for an investment that pays over 30% annually. Do you think he's being irresponsible using his 401K? I'm not even counting for the fact that he could cash in that investment (about 6-8 months later) and TRIPLE his original money.

Make sure that you have a plan and that you thoroughly thought out that plan. You do not want to make a habit of using borrowed money just to lose it. We all make mistakes, but make sure you do your due dilligence. Calculate your risk.

No matter your investment, remember this! NEVER...I mean NEVER "invest" more than you can afford to lose. That's called GAMBLING on the Hope-n-Pray method. Save this for your fun money. Feel free to ask me more questions about that.

For more information about Darrick Scruggs, the person who provided me this information, see his website http://www.myfirstmichiganhome.com/, especially if you want to learn more about key facts for first-time homebuyers. As a real estate investor, this is your biggest market right now. Go see his website, especially if you're in the beginning stages of investing.