John's 2015 home study course
Buying & Creating High Yield Notes
Learn how buying existing notes and making hard money loans can increase your cash flow and reduce your management responsibilities
On sale: $129 during November 2015 ($149 price starts December 1st)
see "Home Study Courses" page (this website) for information and purchase
Landlords and High Yield Notes John Schaub Nov 20, 2015
When landlords look for more income, and sometimes less management, investing in a note secured by a house they now own or would like to own is a natural move. Real estate is a growing investment, but at a cost. It requires more attention and produces less cash flow than a note with comparable risk.
A note can produce significantly more cash flow, with less management. Taxes can take a bite out of your interest income. Buying notes in a ROTH IRA is the ultimate way to avoid taxes, as all qualified distributions are tax-free.
I taught the Buying & Creating High Yield Notes course to help landlords transition into a more passive investment. However, newer investors will learn that often investing in a note will lead to a bargain purchase of a great house.
Is a million dollars enough to retire? John Schaub Sept 30, 2015
Many financial advisors say to spend 4% of your investment assets per year. This would provide a 25-year income stream of about $40,000, when you start with $1,000,000. The good news is that rich people (which you would be – and want to be) tend to eat better and have better medical care, so they live longer. The bad news is you could run out of money with this plan, if you live more than 25 more years.
A real estate investor with ten free-and-clear $100,000 houses, netting about $50,000 a year could spend the same 4% this year, but would get a raise next year and every year that he raised rents. Plus, his ten houses may grow in value. Investors are rewarded by what they know: knowing how to buy, pay off and rent houses in your retirement years will allow you to retire with much more income.
John's 2014 home study course
Taking Risks That Create & Preserve Your Wealth
How to evaluate & reduce the risks you take everyday as a buyer, seller, and landlord
Section One: Taking the risks that produce the greatest profits
Section Two: Taking the risky out of your business
Section Three: Insuring and self-insuring
Please see full details and order your course on the Home Study Course tab of this website.
Are you worried about the next market crash?
As markets heat up across the country, are you worried about the next crash? You cannot prevent a major reversal in the market, but you can prevent a major reversal in your income and net worth by applying good risk management strategies. Smart investors always hedge their investments against the unknown. My full-day course, Taking Risks That Create & Preserve Your Wealth, will help you form your personal risk management plan to protect your income and assets.
A new year - always new opportunities and challenges
Will 2015 be the year that interest rates increase? If you ever want to refinance or get a long-term, low interest rate loan, do it now. Builders that overbuild, along with speculators, will become distressed sellers. New and remodeled houses can be great investment properties.
The provisions of the Dodd-Frank Act may be modified and tax laws could change. Either (or both) development(s) would impact seller financing. You can spend the year worrying about what might happen, or go out and buy a house with today's great interest rate and rent it for cash flow.
I am buying and so should you.
Here We Go Again
In Naples FL, just south of my hometown, house prices were up more than 40% last year. Here in Sarasota we beat 20% and our rental market is red hot. New housing starts are providing good jobs for builders, suppliers, and furniture salesmen. Unemployment is down, and anyone who wants to work can get a job today.
Many people predicted that in our lifetime we would never again see the high prices that hit during the last boom. It looks clear that these predictions were wrong. Although not nationwide yet, Forbes reports many large markets (Denver, most of California and Texas, the DC area, Seattle) have surpassed their old highs. I predict that the combination of demand and inflation will continue pushing prices.
Although lenders would like to make loans, the Dodd Frank Act and the Safe Act are making it difficult. If we had a normal (not stupid, like the end of the last decade) credit market, even buyers would enter the market and bid up prices.
Inflation is rising and your expenses as a landlord are increasing. Now is the time to raise rents before some bureaucrat decides you shouldn’t. Today is the day to get your house in order as we scream toward the top of this market. Join Peter and me in Tampa, May 17th & 18th for our seminar Booms, Busts and
Beyond: Evolve or Perish Register at http://www.johnschaub.com/schaub-seminars/
Retirement Investing Mistakes to Avoid
One of my students suggested that I title my new Retirement Investing course, Retirement Investing for Dummies, but that’s not right. It is Retirement Investing for Investors who invest in real estate and want to retire sooner with more income.
Here are five mistakes that I see active investors make as they approach retirement:
1. They fail to accumulate enough liquid assets. Banking is not what it used to be. Borrowing is harder and borrowing becomes harder as you get older.
2. They don’t have a backup management plan. There may be a time in your life when you need someone to take over the management of your property and perhaps your investments. Now is the time to begin training that person.
3. They think they are too smart and too experienced to get scammed. If you are not watching the CNBC TV show American Greed, it’s time to start. It often features successful retired investors who get scammed, sometimes for all that they have. Don’t think that it can’t happen to you: it can happen to you! It’s has happened to some of my brightest friends.
4. They don’t raise rents aggressively enough. You can get complacent, especially with long-term tenants. Rather than risk losing them, you leave their rent the same for years. Expenses go up and with inflation they may rise rapidly. It is a mistake not to regularly raise rents, at least a little, every year.
5. They break their own rules. If you have been successful, you have established rules and policies for acquiring, financing and managing your investments. It is important that you stick with these rules, especially when markets change. Millions were lost during the past run-up and crash by retired investors who strayed from the rules that made them rich.
Purchase John’s Retirement Investing course $149 (includes shipping) at http://www.johnschaub.com/home-study-courses/retirement-investing/
John Schaub's one-day course "Negotiating Secrets of a Professional Buyer" (September 2012)
- Defining limits that keep you in control of the negotiation
- Neutralizing difficult negotiators
- Deciding when to negotiate and when to walk away
- Knowing what to ask for with your first offer
- Recognizing and countering different negotiating styles
- Getting the other party to commit first
- Counteroffers that get you to closing
- Getting the other party to improve their offer without making a concession
- How to always leave the door open when you have to walk away
John's Acquisition and Management Seminar
One House at a Time
January 16 & 17, 2016
Holiday Inn Lakewood Ranch
(I-75 exit 213 “University Parkway”)
6231 Lake Osprey Drive, Sarasota, Florida 34240
Hotel phone: 941-782-4400
Seminar hours: 9am – 5pm
Registration on the Schaub Seminars page
John publishes his Strategies and Solutions newsletter for investors in single family houses and notes.
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