Buying a Franchise? How to Buy One that’s Already Successful.

If you want to buy a franchise, don’t buy a new one – buy an existing location that is already operational and successful.

Can you test drive a franchise? Maybe not, but you can certainly ask questions when deciding which one to get into. Visit or call existing franchisees in the same system and see how they feel about the franchisor and the business requirements. Here are some questions you should ask:

Do you feel the franchisor can be trusted? Why or why not?
Are you happy with policies and procedures? If not, what would you change?
Do you feel you’re getting the advertising and marketing support you were promised?
Is the business and profits meeting your expectations?
How would you rate the franchisor?
Would you buy this franchise again, knowing what you know now?
What are the main problems of the business?
Do you believe it has the potential to grow? How?


Once you are satisfied with your research on the franchisor, find out all you can about how the franchise contract is structured. There are many items in a franchise agreement that an investor should understand. Here are a few:


Is the contract transferable or is the buyer required to enter into a new agreement at new terms and conditions with the franchisors?
Does the franchisor have the right of first refusal to buy the business? Typically, they do.
Are there restrictions from owning other franchises or even multiple locations? Some franchise contracts don’t allow you to own other businesses; you must devote your full time to that particular business. It may not even allow you to buy a second or third of that particular franchise.
Will the franchisor assist in the financing? Approval by the franchisor is very often required and you will incur the cost of going through the training before you can close the deal. The approval process can cost up to $3,000 - $5,000, and you can still be turned down. Be sure to understand how much of your time and money is at risk subject to approval from the franchisor.
Your due diligence is very important in researching the franchise. Investigate both the franchise and the franchisor and all issues related to the contract.

---------------------------------------------------------------------------------------------------------
Now I would like to share with you what a Billionaire once told a friend of mine. Who immediately put what he learned to use and went from Bankruptcy to Multi-Millionaire in just a few short years. Discover how to do that for yourself. Listen to the whole story here! ==> http://www.successinsiders.com/home.html

This article is derived from an interview between Lance Hood from SuccessInsiders.com and top business buying expert Richard Parker.

From Lance Hood – SuccessInsiders.com


Research, Investment, Buying Business, Business Brokers, Chambers of Commerce, Making Money, Wealth, Business Skills

Understanding the Role of Business Brokers when Purchasing a Business


Using business brokers to do the hard work can help at times, but they also have their drawbacks. There are some good services business brokers can provide, but don’t confuse using one with hiring one. Brokers don’t work for buyers; they either represent the seller or the deal. They are not trusted, unbiased advisors for the buyer unless they have been engaged by them exclusively and not being paid by the seller.

A common misconception about business brokers is that many relate to them as they would real estate agents. They go into the process thinking a business broker is going to deal with them as a buyer broker, as a real estate agent deals with a homebuyer.

Brokers can help you locate businesses, be a buffer between parties, and assist in putting the deal together. They will not represent your interest or negotiate you deal, or do your work. They will not take you to visit thirty businesses like a real estate agent will with houses.

With so many buyers and few sellers, brokers compete for getting as many listings as they can, good and bad. “There’s a buyer for every business”, in their mind, so business brokerage is a quantity, not a quality oriented business. About 90% of the listings online are controlled by brokers. Business brokers only sell about 4% of the small businesses that change hands each year. They’ll often represent selling more, but studies have shown the number closer to 4%. Eighty percent of online listings never sell.

To get a broker to point out the best businesses for you, it is important to demonstrate to a broker that you are serious about buying a business and you’re ready to buy immediately, should the right opportunity present itself. A business broker’s only asset is their time; they do not want to waste it. They leverage their time most effectively with having many listings and being able to sell them quickly. Impress the broker as a serious buyer to get them to choose you, over hundreds of other buyers, to show the premium listings to.

---------------------------------------------------------------------------------------------------------
Now I would like to share with you what a Billionaire once told a friend of mine. Who immediately put what he learned to use and went from Bankruptcy to Multi-Millionaire in just a few short years. Discover how to do that for yourself. Listen to the whole story here! ==> http://www.successinsiders.com/home.html

This article is derived from an interview between Lance Hood from SuccessInsiders.com and top business buying expert Richard Parker.

From Lance Hood – SuccessInsiders.com



Research, Investment, Buying Business, Business Brokers, Chambers of Commerce, Making Money, Wealth, Business Skills

Points to Ponder when Choosing a Business Broker


Communication and feedback is important within a relationship with a business broker. A good broker will at least respond to all offers and inquiries quickly to show they are serious. Proper business courtesy demonstrates a professional attitude and that they are serious and committed. Another thing to look for is the level of detail in their business profiles.

There is a lot of information to consider when making an offer on a business opportunity listing, including the business’s strengths, weaknesses, opportunities, marketplace, competitors, legal issues and background. When a broker responds to your inquiry with a one-page description of the business, and does not have much more data or backup to provide to you, you know this broker isn’t going to be the most effective to work with. This shows how little they care to know about their listings. This is one reason why 80% of businesses listed do not sell.

A good broker will do all they can to insure the business will sell quickly if they are doing the seller a good service. They will understand that the seller has to keep running the company as if it is not going to sell. If the seller is forced to focus too much attention on the sale, they will find their business declining. With this in mind, a good broker will provide a good service to the buyer as well, when they care to know enough details about the business to present to an inquiring buyer even though they often represent and are paid by the seller.

There are three important issues to discuss with business brokers:

Ask them to walk you through their process of working with a buyer
Ask if they co-broker deals of if the simply sell their own listings
Ask what is the typical deal structure of their deals

Their answer to the typical deal structure of their deals is an indicator as to how effective they will be as a broker. If they simply answer, “mostly cash,” they are either “bluffing” or not selling enough businesses. If they answer “mostly third-party financing through a bank,” wrong answer, again; only about 6% of deals are financed that way. How about the broker who answers “Most of my deals contain some element of seller financing, creative financing, or creative deal structure.” This would be the broker to deal with. This one clearly understands that every deal is unique and they know how to massage the deal to a successful closing.

--------------------------------------------------------------------------------------------------------
Now I would like to share with you what a Billionaire once told a friend of mine. Who immediately put what he learned to use and went from Bankruptcy to Multi-Millionaire in just a few short years. Discover how to do that for yourself. Listen to the whole story here! ==> http://www.successinsiders.com/home.html

This article is derived from an interview between Lance Hood from SuccessInsiders.com and top business buying expert Richard Parker.

From Lance Hood – SuccessInsiders.com


Research, Investment, Buying Business, Business Brokers, Chambers of Commerce, Making Money, Wealth, Business Skills

Your Time is Precious – Don’t Waste it When hen Searching for a Business to Buy

There are several areas where people commonly waste time searching for the right business to buy. Keep two things in mind when buying a business; there are many more buyers in the market than businesses to be sold and the good businesses sell fast. The biggest competition comes from other buyers; therefore, you need to act quickly on a good opportunity.

There are five typical issues that cause people to waste time:

Turning the search into a looking process rather than a buying process -The Internet is the best and the worst thing to ever happen to the business for sale marketplace. The best because of the abundance of businesses listed and the worst because it leads you to click, click, click to look at them all. We’re too quick to move on to what we think can be a more promising deal to digest the information and make an effective inquiry.

Fear of making an inquiry - It doesn’t cost you anything and you’re not going to do anything wrong. You’re just looking for additional information and making inquiries.

Apprehension about making offers due to missing information - For example, maybe you don’t know all the financial details reported by the business, which could affect your offer. On the other hand, you are worried about losing the opportunity. So make the offer with protective clauses to allow you to back out of the deal and be fully protected.

Letting others dictate the rules - Don’t be bullied by brokers; this is your money, your future, and you are the boss; be in control.

Looking for the Perfect Business - You won’t find it; they all have their drawbacks. It’s up to you to select one which your strengths will be a valuable asset to make the undervalued business and valuable business.

Cut down on the search time to be better spent on improving and growing your new business. Focus on the goal and stick to the plan and move forward.

---------------------------------------------------------------------------------------------------------
Now I would like to share with you what a Billionaire once told a friend of mine. Who immediately put what he learned to use and went from Bankruptcy to Multi-Millionaire in just a few short years. Discover how to do that for yourself. Listen to the whole story here! ==> http://www.successinsiders.com/home.html

This article is derived from an interview between Lance Hood from SuccessInsiders.com and top business buying expert Richard Parker.

From Lance Hood – SuccessInsiders.com




Research, Investment, Buying Businesses, Business Brokers, Chambers of Commerce, Making Money, Building Wealth, Business Skills

Resources for Choosing and Researching the Right Type of Business to Buy

Manufacturing, service, retail, wholesale and the internet businesses all have different values. There are software programs available for determining value and helping to speed up the process of researching and analyzing businesses.

Through a good valuation program and interactive software containing legal agreements, templates and sample letters of solicitations you can cut the average business purchasing time by 70%. These time-saving materials can also be a savings on fees charged by attorneys and accountants. Of course you must use an attorney and accountant, but you can save a lot on their fees.

You can use solicitation letters to find businesses that are not currently on the market. The one we use generates as high as a 40% response rate. Follow up letters to send to sellers, forms, logs and checklists, and other interactive resources provide templates for doing your research.

It is important that the area of business you choose to purchase meets certain criteria about you and your needs. Choose business that will benefit from your strengths, while they do not suffer from your weaknesses. One common mistake made by many is turning a hobby into a business. This is a bad choice because their prejudices of the hobby can have an adverse effect on the business. The definition of a good business is one that has a good fit, has the opportunity to grow, make plenty of money and be enjoyable to run.

The resources are endless when considering the purchase of a business. The Internet, business brokers, classified sections, attorneys, accountants, Chambers of Commerce but most of all people are the best resources. Attend workshops and seminars; learn by networking with others who have businesses and get the word out that you are looking to purchase a business.

---------------------------------------------------------------------------------------------------------
Now I would like to share with you what a Billionaire once told a friend of mine. Who immediately put what he learned to use and went from Bankruptcy to Multi-Millionaire in just a few short years. Discover how to do that for yourself. Listen to the whole story here! ==> http://www.successinsiders.com/home.html

This article is derived from an interview between Lance Hood from SuccessInsiders.com and top business buying expert Richard Parker.

From Lance Hood – SuccessInsiders.com



Research, Investment, Buying Business, Business Brokers, Chambers of Commerce, Making Money, Wealth, Business Skills

How to Find an Undervalued Business for Sale at a Great Price

There are over 23 million small businesses in the USA; about 10 million of them are non-home-based businesses. There is no shortage of businesses to be purchased. The key is to get in front of business owners, talk to people in the business community about businesses. Decide what type of business you are right for and begin your research.

An undervalued business is one where the foundation is in place, it is operating and bringing a profit, but not running at its full potential. It could be that the owner is tired, or hasn’t the will or ambition to drive the business successfully. How often have you gone into a local business and seen that it was making money, “in spite of the owner.” They’re not serving the customers properly or their product line could be better. Still, they are making a profit. This is an example of an undervalued business; one you could purchase and grow into a valuable one.

Once you have an idea of the type of business you’re looking for, you need to find a motivated seller; someone who wants out. They may not want out because it is a bad business; there probably isn’t anything wrong with the business itself. There are many valid reasons for selling a business, including death, divorce, retirement and many more.

What is a great price? Different types of businesses have different values. Examples of different businesses are manufacturing, service, retail, distribution or an internet business. We have proprietary software which we’ve used for over 1,000 transactions and specific businesses to formulate valuation. Simply enter in the data; answer the questions related to the business and it generates a valuation report.

The resources are endless when considering the purchase of a business. The internet, business brokers, classified sections, attorneys, accountants, Chambers of Commerce but most of all people are the best resources. Attend workshops and seminars; learn by networking with others who have businesses and research online.

---------------------------------------------------------------------------------------------------------
Now I would like to share with you what a Billionaire once told a friend of mine. Who immediately put what he learned to use and went from Bankruptcy to Multi-Millionaire in just a few short years. Discover how to do that for yourself. Listen to the whole story here! ==> http://www.successinsiders.com/home.html

This article is derived from an interview between Lance Hood from SuccessInsiders.com and top business buying expert Richard Parker.

From Lance Hood – SuccessInsiders.com


Research, Investment, Buying Business, Business Brokers, Chambers of Commerce, Making Money, Wealth, Business Skills

Are You Sick of the 9 to 5 Grind?—Buy a Business and Work for Yourself



I recall reading a study that indicated 74% of people actually hate their job and dread going to work every morning. What would your life look like if you owned your own business? The simple fact that you are working 9am to 5pm is incentive enough to think about making a change. Add the commute back and forth to work and most of your day is spent working for someone else, doing something you hate; in other words, you hate most of your life! It’s time to stop making excuses and start making a change-motivate and create a path to success:

“I just don’t have the time.”

Focus on your goal, not your problems or excuses

Get educated; read books, attend seminars and workshops on weekends and evenings

Network with other business owners-get the word out that you are looking to buy a business

Search the internet for a business during “off hours”


“I’m too old.”

I said to my cousin, “I just can’t believe you’re turning 50!” She said, “It’s okay; fifty is the new 35!”

Colonel Saunders was 67 when he went into the Kentucky Fried Chicken business

35-55 is a great time to go into business for your self. You have years of working and acquiring skills and experience. You have developed the wisdom and to be able to identify your strongest skills and the patience to persevere.

“I don’t have enough money.”


Money is the point of all this and you don’t need as much as you think.

Start small and build something big

Ask for seller financing-if the seller is motivated, he’ll be inclined to agree. This way, he still gets to collect some cash flow from the business without having to run the business. There are also tax advantages to seller financing rather than getting paid off in one big payment at the time of sale.

So, problems are just excuses. Go on doing what you are doing and nothing will change. You will never have the time, you will continue to grow older, and you will not have enough money. Why not make the change? So many others have done it before you, and many more will after you.

Motivate and create a new career and start your new life now!

---------------------------------------------------------------------------------------------------------
Now I would like to share with you what a Billionaire once told a friend of mine. Who immediately put what he learned to use and went from Bankruptcy to Multi-Millionaire in just a few short years. Discover how to do that for yourself. Listen to the whole story here! ==> http://www.successinsiders.com/home.html

This article is derived from an interview between Lance Hood from SuccessInsiders.com and top business buying expert Richard Parker.

From Lance Hood – SuccessInsiders.com



Research, Investment, Buying Business, Business Brokers, Chambers of Commerce, Making Money, Wealth, Business Skills

Buying an Existing Business versus Starting up a New Business

Starting a business is a rich man’s game, and buying an existing business is a poor man’s game. Most people would think that the opposite is true.

There are many advantages to buying an existing business rather than starting a new business. Statistics show that 96% of business startups fail within the first five years, with 80% failing with the first 3 years. With the odds of failure being so high that you are going to lose your entire investment of time and money within 5 years or less, that is a rich man’s game. Anyone who can afford this type of loss must be pretty rich.

Buying an existing business with an ongoing infrastructure of a provable business model, one that has been operating for a few years or more and is making a profit sounds like a much better deal. Profits will flow immediately versus a startup where there is no way to predict when you will be showing a profit. A solid customer base is already formed; people are familiar with what you have to offer, so there is no need for start up marketing.

The history of a business is in place and you can review it to determine potential profits for the future. Policies and procedures are in place, employees are trained, and the business is operating. Simply step into the seller’s shoes, add some of your own personal touches, maybe a new product or service, and you’re on your way to making your new business grow and thrive.

---------------------------------------------------------------------------------------------------------
Now I would like to share with you what a Billionaire once told a friend of mine. Who immediately put what he learned to use and went from Bankruptcy to Multi-Millionaire in just a few short years. Discover how to do that for yourself. Listen to the whole story here! ==> http://www.successinsiders.com/home.html

This article is derived from an interview between Lance Hood from SuccessInsiders.com and top business buying expert Richard Parker.

From Lance Hood – SuccessInsiders.com


Research, Investment, Buying Businesses, Business Brokers, Chambers of Commerce, Making Money, Wealth Building, Business Skills

Tips for Buying a Business – it’s Easier and Less Expensive than You Think

Purchasing an undervalued business at a reasonable price can be quite profitable while it accelerates the path to financial independence and eliminates many of the risks of new startups. The key is finding businesses that are already profitable but earning far less then they could be.

An undervalued business is one which is doing well but it is not operating to its best potential. Maybe the owner just isn’t motivated to continue growing the business and updating the marketing techniques. Lack of motivation or desire to keep a business growing is often due to death, divorce, retirement or many other valid reasons. In any event, an undervalued business can be a great deal for someone who is fresh and motivated to improve the business. The idea is to get a good solid business and turn it into a great one.

There are some critical steps to take before becoming a business owner:

Become educated; read how the experts do it, attend seminars and workshops, network with other business owners
Take a self inventory of your own strengths and weakness to determine the type of business that would thrive from your strengths and not suffer from your weaknesses
Discover your passion; what type of business do you see an opportunity for yourself in?
Get the word out that you are looking to buy a business
Keep in mind the restrictions of owning a business; how much work is involved, how much of your physical time is required and whether running the business fits well with your needs and lifestyle.

When you are accustomed to working for someone, you begin to see things as an employee. Many people never get out of the mindset of working for someone as opposed to working for themselves. Going into business does not allow the luxury of getting on the job training, because the goal is to make sure that the money which has been invested is not wasted. The beauty of purchasing existing businesses is that they are not as expensive or involved as people may think. Owning a business is well within reach of the majority of people who want to own a business.

---------------------------------------------------------------------------------------------------------
Now I would like to share with you what a Billionaire once told a friend of mine. Who immediately put what he learned to use and went from Bankruptcy to Multi-Millionaire in just a few short years. Discover how to do that for yourself. Listen to the whole story here! ==> http://www.successinsiders.com/home.html

This article is derived from an interview between Lance Hood from SuccessInsiders.com and top business buying expert Richard Parker.

From Lance Hood – SuccessInsiders.com



Research, Investment, Buying Business, Business Brokers, Chambers of Commerce, Making Money, Creating Wealth, Business Skills

Financing Apartment Buildings—Cash on Cash Return and Cap Rates

Financing apartment buildings is a lot easier that most people think. It’s all about the income that is generated from the property. Commercial buyers and brokers use Cash-on-Cash return and Cap Rates to analyze the deal.

Cash-on-cash return is looking at how much money you have to take out of your pocket to purchase the building, then how much you get back at the end of the year after all expenses and debt services have been paid. For example, your down payment and closing cost are $120,000 and at the end of the first year, your profits were $12,000. That is 10% cash on cash return, which is average for an apartment building. Anything less than 10 – 12% return is not a great deal. It means you are either overpaying for the property or didn’t get the best financing.

Cap rates, short for capitalization rates, is a formula that’s used in the commercial industry, to show how much income is being generated from the property had you paid all cash for the property. For example, you paid $1 Million cash for a property that generated $100,000 net operating income. This would be a 10% cap rate. Of course you’re not going to hand over $1 Million cash for a property; this is just to simplify the explanation of cap rate.

Market cap rates vary in different cities and with different classes of apartment buildings. There are 4 different classes, ranging from A to D, A being brand new to 10 or 15 years old, with all the amenities of new buildings including pools, fitness centers and gated communities. Class B are 10-15 years up to 20-25 years old with whatever amenities were most common in their time. Class C are about 20-25 years old up to 40 years old and in need of more maintenance. Class D are like class C, with the only difference being that they’re the ones you hear about in the news, for the wrong reasons.

With good market research and analyzing of the numbers, the lender will be more likely to finance your deal. Remember that the lender is your friend; he has done the same analysis of the property that you have done. He is putting his money on the line, so he will be likely to catch something if you should miss it. It’s a good idea to develop a relationship with a lender and appreciate his concern, even if he denies the loan based on his analysis; chances are, he’s saving you from making a costly mistake.


This was taken from an interview between Lance Hood from SuccessInsiders.com and Anthony Chara. For access to Anthony Chara’s teleseminars, go to http://www.successinsiders.com/



SuccessInsiders.com is committed to helping people succeed, both personally and professionally, by providing them with interactive access to an ever growing team of Millionaires and Experts in wealth creation and personal development. By following the guidance and strategies, through interviews, expert Q&A, telecoaching and other resources offered by people who have already succeeded, a person’s chance for success is greatly increased.

Visit a Team of Experts willing to share their Insider knowledge on how to create wealth in all areas of your life. It starts here ==> http://www.successinsiders.com/home.html


CONTACT INFORMATION:
Heather Thomas
(641) 715-3900 ext. 7576941
support@successinsiders.com


Alabama (AL), Alaska (AK), Arizona (AZ), Arkansas (AR), California (CA), Colorado (CO), Connecticut (CT), Delaware (DE), Florida (FL), Georgia (GA), Hawaii (HI), Idaho (ID), Illinois (IL), Indiana (IN), Iowa (IA), Kansas (KS), Kentucky (KY), Louisiana (LA), Maine (ME), Maryland (MD), Massachusetts (MA), Michigan(MI), Minnesota (MN), Mississippi (MS), Missouri (MO), Montana (MT), Nebraska (NE), Nevada (NV), New Hampshire (NH), New Jersey (NJ), New Mexico (NM), New York (NY), North Carolina (NC), North Dakota (ND), Ohio (OH), Oklahoma (OK), Oregon (OR), Pennsylvania (PA), Rhode Island (RI), South Carolina (SC), South Dakota (SD), Tennessee (TN), Texas (TX), Utah (UT), Vermont (VT), Virginia (VA) , Washington (WA), West Virginia (WV), Wisconsin (WI), Wyoming (WY) Major Metro Areas: Albuquerque, Atlanta, Austin, Baltimore, Boston, Charlotte, Chicago, Chico, Cincinnati, Cleveland, Columbus, Dallas, Fort Worth, Denver, Bolder, Detroit, Ft Lauderdale, Palm Beach, Hartford, Houston, Indianapolis, Jacksonville, Kansas City, Las Vegas, Little Rock, Long Island, Los Angeles, Memphis, Miami, Milwaukee, Minneapolis, St Paul, Monterey, Nashville, New Haven, New York, Oakland, East Bay, Oklahoma City, Orange County, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, Puerto Rico, Raleigh-Durham, Reno, Tahoe, Rochester, Sacramento, Salt Lake City, San Francisco, San Jose, Silicon Valley, Santa Fe, Seattle, Spokane, Springfield, St. Louis, Tampa, Toronto, Tucson, Washington Dc



Real Estate, Investment, Success, Buying Apartments, Purchasing Apartments, Cash on Cash Return, Cap rates

Boot Camp-Eight Weeks to Educate on Purchasing and Managing Apartment Buildings

Anthony Chara is an experienced investor in apartments who has also mentored hundreds of students. The eight week program begins with a three day boot camp where students are taught the full process of buying apartment buildings, from locating the property, quick analysis, and making an offer.

Many people spend so much time looking into every nook and cranny that they lose their focus and never get around to making an offer. The quick analysis takes about five minutes, then it’s time to make an offer. Since the analysis and offer are made quickly in order to tie the property up, it is important to have escape clauses built into the contract. This protects the investor in the event of an unforeseen detail in the property arises, making the deal less desirable.

Investors also need time to perform their due diligence to confirm the accuracy of the numbers received from the seller are accurate. If there are discrepancies, further negotiations on price and terms are needed to come to an agreement. The final step is to teach students how to close the deal.

This is a lot of learning packed into a three day event. Many come home and put their books away and get back to their same routine. They never take action and apply what they have learned in the boot camp. To avoid having students held back by fear or lack of confidence, there are eight weeks of follow up consisting of teleseminars and webinars to get through that mindset and give students an action plan to follow.

This was taken from an interview between Lance Hood from SuccessInsiders.com and Anthony Chara. For access to Anthony Chara’s teleseminars, go to http://www.successinsiders.com/



SuccessInsiders.com is committed to helping people succeed, both personally and professionally, by providing them with interactive access to an ever growing team of Millionaires and Experts in wealth creation and personal development. By following the guidance and strategies, through interviews, expert Q&A, telecoaching and other resources offered by people who have already succeeded, a person’s chance for success is greatly increased.

Visit a Team of Experts willing to share their Insider knowledge on how to create wealth in all areas of your life. It starts here ==> http://www.successinsiders.com/home.html


CONTACT INFORMATION:
Heather Thomas
(641) 715-3900 ext. 7576941
support@successinsiders.com



Real Estate, Investment, Boot Camp, Buying Apartment, Purchase Apartment buildings

Can a Nine to Five Worker Handle Investing in Apartment Buildings?

You work 9am to 5pm, living paycheck to paycheck, and have very little or no money in the bank. You know there has to be a better way to live. Anthony Chara is a real estate investor and mentor. Read on for a story about one of Anthony Chara’s students.

George did not work 9 to 5; he worked 8am to 8pm, before coming home to his wife and two small children. His days and evenings were eaten up by work and family. Thanks to the internet, he was able to search for an apartment building, analyze the numbers and make an offer. He would often stay up until two or three in the morning. He would send his letter of intent to the seller’s agent in the middle of the night and call them on his way to work in the morning to request they take a look at it and get back to him. That is how he got started investing in apartment buildings.

So, the answer to the question is yes, you can do this part time because you are buying a business. You can have a management company handling the maintenance, collections, accounting and other tasks, while you continue to work your regular job until you are sure you are making enough passive income to give it up if you choose to.

This was taken from an interview between Lance Hood from SuccessInsiders.com and Anthony Chara. For access to Anthony Chara’s teleseminars, go to http://www.successinsiders.com/



SuccessInsiders.com is committed to helping people succeed, both personally and professionally, by providing them with interactive access to an ever growing team of Millionaires and Experts in wealth creation and personal development. By following the guidance and strategies, through interviews, expert Q&A, telecoaching and other resources offered by people who have already succeeded, a person’s chance for success is greatly increased.

Visit a Team of Experts willing to share their Insider knowledge on how to create wealth in all areas of your life. It starts here ==> http://www.successinsiders.com/home.html


CONTACT INFORMATION:
Heather Thomas
(641) 715-3900 ext. 7576941
support@successinsiders.com

Alabama (AL), Alaska (AK), Arizona (AZ), Arkansas (AR), California (CA), Colorado (CO), Connecticut (CT), Delaware (DE), Florida (FL), Georgia (GA), Hawaii (HI), Idaho (ID), Illinois (IL), Indiana (IN), Iowa (IA), Kansas (KS), Kentucky (KY), Louisiana (LA), Maine (ME), Maryland (MD), Massachusetts (MA), Michigan(MI), Minnesota (MN), Mississippi (MS), Missouri (MO), Montana (MT), Nebraska (NE), Nevada (NV), New Hampshire (NH), New Jersey (NJ), New Mexico (NM), New York (NY), North Carolina (NC), North Dakota (ND), Ohio (OH), Oklahoma (OK), Oregon (OR), Pennsylvania (PA), Rhode Island (RI), South Carolina (SC), South Dakota (SD), Tennessee (TN), Texas (TX), Utah (UT), Vermont (VT), Virginia (VA) , Washington (WA), West Virginia (WV), Wisconsin (WI), Wyoming (WY) Major Metro Areas: Albuquerque, Atlanta, Austin, Baltimore, Boston, Charlotte, Chicago, Chico, Cincinnati, Cleveland, Columbus, Dallas, Fort Worth, Denver, Bolder, Detroit, Ft Lauderdale, Palm Beach, Hartford, Houston, Indianapolis, Jacksonville, Kansas City, Las Vegas, Little Rock, Long Island, Los Angeles, Memphis, Miami, Milwaukee, Minneapolis, St Paul, Monterey, Nashville, New Haven, New York, Oakland, East Bay, Oklahoma City, Orange County, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, Puerto Rico, Raleigh-Durham, Reno, Tahoe, Rochester, Sacramento, Salt Lake City, San Francisco, San Jose, Silicon Valley, Santa Fe, Seattle, Spokane, Springfield, St. Louis, Tampa, Toronto, Tucson, Washington Dc

Investing in Apartment Buildings-Market Cycle and 10/31 Exchange

The beauty of owning apartment buildings is the monthly cash flow. But, there comes a time when you have paid so much into the principle and reach a certain peak that you are no longer able to depreciate the building as much as you would like to. How do you determine when it is the right time to sell?

This is a good question for your accountant to answer, but on the average, it is recommended that you own the building for somewhere between five to ten years. Unlike buying a house, fixing it up, and flipping it to make $50,000, you are buying the apartment building for the cash flow. Look at the market cycles because each city has its own cycle regarding apartments, single family homes and the economy in that particular city. There comes a time when you will be receiving maximum rents, getting maximum depreciation and expenses should be under control. When you are no longer able to depreciate the property quickly enough to enjoy the tax benefits that is the time to do a 10/31 exchange, which is when you sell this first building, by a new building, and transfer the equity and start the depreciation cycle all over again for another five to ten years.

This was taken from an interview between Lance Hood from SuccessInsiders.com and Anthony Chara. For access to Anthony Chara’s teleseminars, go to http://www.successinsiders.com/



SuccessInsiders.com is committed to helping people succeed, both personally and professionally, by providing them with interactive access to an ever growing team of Millionaires and Experts in wealth creation and personal development. By following the guidance and strategies, through interviews, expert Q&A, telecoaching and other resources offered by people who have already succeeded, a person’s chance for success is greatly increased.

How would you like to have access to a Team of Experts willing to share their Insider knowledge with you? Imagine asking some of the greatest minds on earth how to create wealth in all areas of your life. It starts here ==> http://www.successinsiders.com/home.html


CONTACT INFORMATION:
Heather Thomas
(641) 715-3900 ext. 7576941
support@successinsiders.com


Real Estate, Investment, Financing Apartment Buying Purchasing Apartment Buildings

Purchasing Apartment Buildings with Seller Financing

There are several ways to finance the purchase of apartment buildings besides traditional financing and conventional mortgages. Seller financing can be a favorable option to both the seller and buyer.

One of the things investors do not think to ask for in purchasing an apartment building is seller financing. There are some sellers who are not open to it because they don’t understand it or they don’t know about how they can reduce their tax liability by accepting monthly payments rather than getting the full payoff up front. They do see a large amount up front, and by taking a carry-back, they continue to receive payments for the next few years. Another advantage is that they continue to see the cash flow from the building without the headache of management and maintenance.

The advantage to the buyer is they are able to purchase the building with less conventional financing. Perhaps they are held back by credit issues and are unable to qualify for the full amount required to buy the building.

This was taken from an interview between Lance Hood from SuccessInsiders.com and Anthony Chara. For access to Anthony Chara’s teleseminars, go to http://www.successinsiders.com/ and click on “ask our experts.”

About Success Insiders:

SuccessInsiders.com is committed to helping people succeed, both personally and professionally, by providing them with interactive access to an ever growing team of Millionaires and Experts in wealth creation and personal development. By following the guidance and strategies, through interviews, expert Q&A, telecoaching and other resources offered by people who have already succeeded, a person’s chance for success is greatly increased.

CONTACT INFORMATION:
Heather Thomas
(641) 715-3900 ext. 7576941
support@successinsiders.com


Alabama (AL), Alaska (AK), Arizona (AZ), Arkansas (AR), California (CA), Colorado (CO), Connecticut (CT), Delaware (DE), Florida (FL), Georgia (GA), Hawaii (HI), Idaho (ID), Illinois (IL), Indiana (IN), Iowa (IA), Kansas (KS), Kentucky (KY), Louisiana (LA), Maine (ME), Maryland (MD), Massachusetts (MA), Michigan(MI), Minnesota (MN), Mississippi (MS), Missouri (MO), Montana (MT), Nebraska (NE), Nevada (NV), New Hampshire (NH), New Jersey (NJ), New Mexico (NM), New York (NY), North Carolina (NC), North Dakota (ND), Ohio (OH), Oklahoma (OK), Oregon (OR), Pennsylvania (PA), Rhode Island (RI), South Carolina (SC), South Dakota (SD), Tennessee (TN), Texas (TX), Utah (UT), Vermont (VT), Virginia (VA) , Washington (WA), West Virginia (WV), Wisconsin (WI), Wyoming (WY) Major Metro Areas: Albuquerque, Atlanta, Austin, Baltimore, Boston, Charlotte, Chicago, Chico, Cincinnati, Cleveland, Columbus, Dallas, Fort Worth, Denver, Bolder, Detroit, Ft Lauderdale, Palm Beach, Hartford, Houston, Indianapolis, Jacksonville, Kansas City, Las Vegas, Little Rock, Long Island, Los Angeles, Memphis, Miami, Milwaukee, Minneapolis, St Paul, Monterey, Nashville, New Haven, New York, Oakland, East Bay, Oklahoma City, Orange County, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, Puerto Rico, Raleigh-Durham, Reno, Tahoe, Rochester, Sacramento, Salt Lake City, San Francisco, San Jose, Silicon Valley, Santa Fe, Seattle, Spokane, Springfield, St. Louis, Tampa, Toronto, Tucson, Washington Dc




Real Estate, Investment, financing apartment buildings, purchasing apartment buildings, seller financing

Time Management Software is a must-have when Purchasing Apartment Buildings

Once you have your business plan down and a team of professionals to work with, it’s time to begin seeing what is on the market. Remember, it’s all about the numbers, total units, market rent, debt service, property taxes, insurance, utilities, management fees, repairs and maintenance and any other unforeseen costs that may arise. The analyzing can take literally days to accomplish.

Investors use two forms of special software to expedite the analyzing process quickly and accurately. One is called the Quick Analysis; it looks at the numbers of as many as 100 deals and generates an income and expense report within minutes. When one found that meets the needs of your team, do your letter of intent to make an offer. The goal is to get as many offers on the table as soon as possible.

The other piece of software is called an APOD, which stands for Annual Property Operating Data. It actually breaks down all the information into a detailed look at the numbers. Rather than just providing total income and expenses, it will show each individual expense amount. These numbers matched up to IREM reports, obtained from IREM.org, and compared to data obtained from property managers in that market to verify and confirm that you are within the right tolerances for each category.

Investing in apartments is a lucrative form of business. The average apartment building is going to appreciate about 5% a year on average over the long term.

This was taken from an interview between Lance Hood from SuccessInsiders.com and Anthony Chara. For access to Anthony Chara’s teleseminars, go to http://www.successinsiders.com/



SuccessInsiders.com is committed to helping people succeed, both personally and professionally, by providing them with interactive access to an ever growing team of Millionaires and Experts in wealth creation and personal development. By following the guidance and strategies, through interviews, expert Q&A, telecoaching and other resources offered by people who have already succeeded, a person’s chance for success is greatly increased.

Visit a Team of Experts willing to share their Insider knowledge on how to create wealth in all areas of your life. It starts here ==> http://www.successinsiders.com/home.html


CONTACT INFORMATION:
Heather Thomas
(641) 715-3900 ext. 7576941
support@successinsiders.com


Alabama (AL), Alaska (AK), Arizona (AZ), Arkansas (AR), California (CA), Colorado (CO), Connecticut (CT), Delaware (DE), Florida (FL), Georgia (GA), Hawaii (HI), Idaho (ID), Illinois (IL), Indiana (IN), Iowa (IA), Kansas (KS), Kentucky (KY), Louisiana (LA), Maine (ME), Maryland (MD), Massachusetts (MA), Michigan(MI), Minnesota (MN), Mississippi (MS), Missouri (MO), Montana (MT), Nebraska (NE), Nevada (NV), New Hampshire (NH), New Jersey (NJ), New Mexico (NM), New York (NY), North Carolina (NC), North Dakota (ND), Ohio (OH), Oklahoma (OK), Oregon (OR), Pennsylvania (PA), Rhode Island (RI), South Carolina (SC), South Dakota (SD), Tennessee (TN), Texas (TX), Utah (UT), Vermont (VT), Virginia (VA) , Washington (WA), West Virginia (WV), Wisconsin (WI), Wyoming (WY) Major Metro Areas: Albuquerque, Atlanta, Austin, Baltimore, Boston, Charlotte, Chicago, Chico, Cincinnati, Cleveland, Columbus, Dallas, Fort Worth, Denver, Bolder, Detroit, Ft Lauderdale, Palm Beach, Hartford, Houston, Indianapolis, Jacksonville, Kansas City, Las Vegas, Little Rock, Long Island, Los Angeles, Memphis, Miami, Milwaukee, Minneapolis, St Paul, Monterey, Nashville, New Haven, New York, Oakland, East Bay, Oklahoma City, Orange County, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, Puerto Rico, Raleigh-Durham, Reno, Tahoe, Rochester, Sacramento, Salt Lake City, San Francisco, San Jose, Silicon Valley, Santa Fe, Seattle, Spokane, Springfield, St. Louis, Tampa, Toronto, Tucson, Washington Dc




Real Estate, Investment, Success, Management Software, Purchasing Apartment Buildings

Consider the Capitalization Rate when Investing in Apartment Buildings

The difference between determining value when purchasing apartment buildings and single family homes is valuation determined by the capitalization rate and valuation determined by comparables based on supply, demand and emotion, respectively. The decision making process in purchasing an apartment building is all about the numbers, there is no emotion involved.


An apartment complex is valued based on the income generated from the property. Look at the number of units and the average rent being generated by each unit. Subtract the expenses to come up with net operating income, also known as capitalization rate, or cap rate for short. Based on the cap rate for the type of building in your market, you come up with a value. You’re not buying the building because you like the exterior, or it has a nice, big yard. Your lender doesn’t care about any of this; he’s going to have his own set of guidelines for making the decision to finance the purchase. A lender’s decision will be based on the income generated from the property and the average cap rate for the market. The purchaser must show adequate income generation to cover any unforeseen crisis he may encounter, to assure the lender that the payments will be made timely and there will be minimal risk involved in financing your business venture.

This was taken from an interview between Lance Hood from SuccessInsiders.com and Anthony Chara. For access to Anthony Chara’s teleseminars, go to http://www.successinsiders.com/


SuccessInsiders.com is committed to helping people succeed, both personally and professionally, by providing them with interactive access to an ever growing team of Millionaires and Experts in wealth creation and personal development. By following the guidance and strategies, through interviews, expert Q&A, telecoaching and other resources offered by people who have already succeeded, a person’s chance for success is greatly increased.

How would you like to have access to a Team of Experts willing to share their Insider knowledge with you? Imagine asking some of the greatest minds on earth how to create wealth in all areas of your life. It starts here ==> http://www.successinsiders.com/home.html


CONTACT INFORMATION:
Heather Thomas
(641) 715-3900 ext. 7576941
support@successinsiders.com

Real Estate, Investment, Success, Buying Apartment Buildings, Cap Rate

Investing in Apartment Buildings versus Single Family Homes

Real estate investing, like any other business venture, has its pros and cons. There are reasons why some real estate investors do better than others; they take the time to fully analyze the deal to make better choices.


Some investors are not aware of the profitability of investing in apartment buildings versus single family homes. Apartment buildings can generate $1,000 to $5,000 a month in positive cash flow, where the profits on single family homes are as low as $100 to $150 per month.

Many investors will not take an interest in purchasing apartment buildings because of their lack of knowledge and experience. They don’t understand how investing in apartment buildings works and they feel they do not have enough money to make this large of an investment. A surprising fact is that it can be easier to purchase an apartment building than a single family home. When purchasing an apartment building, you are buying a business stream of income in which the cash flow makes the payments and pays overhead costs. A lender looks at this when analyzing the risk factor of his investment in providing the financing. So, even if you don’t have great credit, you can team up with other people and borrow-in essence, use other people’s money; use other people’s credit. So purchasing an apartment building is easier because the lender will see that the building stands on it own financially before they even take a look at the borrower.

What it really comes down to is they are limiting themselves with their own thought process, telling them selves “they can’t do it,” instead of changing their mind set and taking action to do what many others around them are doing.

This was taken from an interview between Lance Hood from SuccessInsiders.com and Anthony Chara. For access to Anthony Chara’s teleseminars, go to http://www.successinsiders.com/



SuccessInsiders.com is committed to helping people succeed, both personally and professionally, by providing them with interactive access to an ever growing team of Millionaires and Experts in wealth creation and personal development. By following the guidance and strategies, through interviews, expert Q&A, telecoaching and other resources offered by people who have already succeeded, a person’s chance for success is greatly increased.

Visit a Team of Experts willing to share their Insider knowledge on how to create wealth in all areas of your life. It starts here ==> http://www.successinsiders.com/home.html


CONTACT INFORMATION:
Heather Thomas
(641) 715-3900 ext. 7576941
support@successinsiders.com




Real Estate, Investment, Success, Buying Apartment Buildings, Profit Making Ventures


Alabama (AL), Alaska (AK), Arizona (AZ), Arkansas (AR), California (CA), Colorado (CO), Connecticut (CT), Delaware (DE), Florida (FL), Georgia (GA), Hawaii (HI), Idaho (ID), Illinois (IL), Indiana (IN), Iowa (IA), Kansas (KS), Kentucky (KY), Louisiana (LA), Maine (ME), Maryland (MD), Massachusetts (MA), Michigan(MI), Minnesota (MN), Mississippi (MS), Missouri (MO), Montana (MT), Nebraska (NE), Nevada (NV), New Hampshire (NH), New Jersey (NJ), New Mexico (NM), New York (NY), North Carolina (NC), North Dakota (ND), Ohio (OH), Oklahoma (OK), Oregon (OR), Pennsylvania (PA), Rhode Island (RI), South Carolina (SC), South Dakota (SD), Tennessee (TN), Texas (TX), Utah (UT), Vermont (VT), Virginia (VA) , Washington (WA), West Virginia (WV), Wisconsin (WI), Wyoming (WY) Major Metro Areas: Albuquerque, Atlanta, Austin, Baltimore, Boston, Charlotte, Chicago, Chico, Cincinnati, Cleveland, Columbus, Dallas, Fort Worth, Denver, Bolder, Detroit, Ft Lauderdale, Palm Beach, Hartford, Houston, Indianapolis, Jacksonville, Kansas City, Las Vegas, Little Rock, Long Island, Los Angeles, Memphis, Miami, Milwaukee, Minneapolis, St Paul, Monterey, Nashville, New Haven, New York, Oakland, East Bay, Oklahoma City, Orange County, Orlando, Philadelphia, Phoenix, Pittsburgh, Portland, Puerto Rico, Raleigh-Durham, Reno, Tahoe, Rochester, Sacramento, Salt Lake City, San Francisco, San Jose, Silicon Valley, Santa Fe, Seattle, Spokane, Springfield, St. Louis, Tampa, Toronto, Tucson, Washington Dc

Teamwork is the Key to Successful Investing in Apartment Buildings

Real estate has proven to be an effective means of reaching a desired lifestyle of comfort. The challenging decision to make is the particular area of real estate to go into. The bottom line is whatever area of real estate you enter the key to success is research, networking and coaching.


It has proven that buying an apartment building with a group of people is far more profitable than purchasing the property alone. Building a solid team is paramount especially on the first or second deal. With a team, the risk is being spread so in the event of financial crisis, the team as a whole will cover the challenge. With a team of multi-talented professionals to share the workload, each partner performs their given task, including bookkeeping, repairs and maintenance, collections, tenant relations and more. Each partner is of the same mindset; they share same goals, therefore, they are all motivated to do quality work as their contribution to the venture.

An important step for the team to consider is financing. The lender will want to see an appraisal on the building, and the business plan that shows income and expense flow. During this investigation period the lender will determine profitability of the investment to be sure the venture covers expenses including mortgage payments, property taxes, insurance, management, maintenance, utilities and repairs. The lender wants to there is enough profit to cover any losses, including vacancies, non-paying tenants, eviction costs, and upcoming repairs and maintenance. The more the cushion that’s left over each month, the less stringent the lender will review the credit worthiness and reserves of the perspective buyers. Simply put, if the investment is not profitable, the lender will not approve the loan. One factor to remember is that when an investor buys an apartment building, they are buying a business. The building must stand on its own financially and create the money to support the business. A great team with a great business plan reduces the lender’s risk concern.

This was taken from an interview between Lance Hood from SuccessInsiders.com and Anthony Chara. For access to Anthony Chara’s teleseminars, go to http://www.successinsiders.com/



SuccessInsiders.com is committed to helping people succeed, both personally and professionally, by providing them with interactive access to an ever growing team of Millionaires and Experts in wealth creation and personal development. By following the guidance and strategies, through interviews, expert Q&A, telecoaching and other resources offered by people who have already succeeded, a person’s chance for success is greatly increased.

Visit a Team of Experts willing to share their Insider knowledge on how to create wealth in all areas of your life. It starts here ==> http://www.successinsiders.com/home.html


CONTACT INFORMATION:
Heather Thomas
(641) 715-3900 ext. 7576941
support@successinsiders.com

Real Estate, Investment, Teamwork, Success, Purchase Apartment Buildings