How I Started In Real Estate...
You need to
listen to this...
Not many realtors, lenders, and
you in this class and those who have pay periods twice a month, understand these 4 core truths...
1. The only reason you buy real estate is for tax write offs and equity growth. NOT THE CASH FLOW so you
can buy stupid stuff, like food, clothing, cars. It's an appreciation business.
The APOD
Story Time.
Stupid real estate
investors who may lose it
all, because of the misuse
of the APOD.
Based on 40 plus years.
2. If you want cash flow you buy real estate trust deeds and notes, paper secured by real estate. This is a financial instrument. You buy these notes at a discount. Use them for food clothing and stupid stuff at times. BUT if you're wise you leverage the notes. You can buy notes and you can create notes with an all-inclusive-trust-deed. This is a great way to fill in the financial gaps between closings, but it requires effort that most of us are not willing to pursue. Here's The Book To Buy, click
My paper experiences,
here's one of my stories.
3. BUT the easiest way to create cash flow is with a NON-Financial Instrument that pays you Principle less the interest. A non financial instrument. It pays out streams of principle, no interest. This is a real estate funding machine
4. Real estate agents are unemployed after every closing. You need something that will help you fill in the gaps between closings.
What's the highest form
of ownership, Click
Freehold Estate
and With all of the bundle
of rights, click
What's less than full ownership
What else can be
attached to the deed...
A rental contract.
How about....
Elizabeth Taylor's Pendant
A notice recorded on real
property's chain of title
These are the terms you
need to know to pass the test....
A Lease
A License
Profit Interest
Lease Option
Percentage Lease
Ground Lease
Roof Top Lease
Net Lease
Triple Net Lease
Lessor and Lessee
Actual Eviction
Assignment
Constructive Eviction
Distraint
Estate at Sufference
Estate At Will
Estate For Years
Estate From
Period To Period
Gross Lease
Holdover Tenancy
Leasehold Estate
Lease Purchase
Lessee
Lessor
Renewal Option
Reversionary Right
Lessor holds An Estate In Reverson
Tenancy At Will
Right of First Refusal
Sale Lease Back
Security Deposit
Cash Rent or
Share-cropping
Sublease
Death of Owner
Lease is binding
to new owners
NON-Disturbance Clause
Novation
How many of you
heard of a bridle Fair
Your Husband or Boyfriend is a jerk if he thinks this is a booth at the bridle fair
Its the lease or rental agreement that bridles the bundle of rights.
Class to watch video on their time
Essential Elements of a contract
Mutual Agreement
Consideration
Capacity
Legal Purpose
Class to watch video on their own time
Lessor and Lessee
Reversionary Right
Lessor holds An Estate In Reverson
Estate For Years
Used a lot with student housing.
Time period maybe for years, months,
weeks or days. It has a starting
date and an ending date.
Estate From
Period to Period
It can be terminated by either party
It can renew itself
In Utah you can give 15 day notice
to vacate if its not otherwise in the lease
Term of the lease does not matter, itneeds
to be in writing. Also referred to as a
Month to Month tenance
Estate At Will
No duration or termination date
Either party can end the lease without any notice.
But, in Utah there is a Ststute the requires a 5 day notice.
It ends at the death of either party or
sale of property, it's like a motel
Estate at Sufferance
Tenant stays at the property and the
landlord wants them out...
What do you do?
The Sufferance Video
There are several
types of eviction
What should you have
in a lease.
In addition...
Non-Disturbance clause
Assignment
and
Subletting
Lease Option
or
Lease Purchase
How Does A Concert
Tied To Real Estate...
Types Of Leases
Gross Lease
Net Lease
Triple Net Lease
Percentage Lease
Gross or Net lease
Tenant pays fixed amount Plus percentage of gross income
the business brings in.
Variable Lease
Graduated lease.
Rent increases during rental term
Index lease.
Consumer price index
Ground Lease
50-99
Oil and Gas Lease
Sale Lease Back
Roof Top Lease
Share Cropping
If Landlord Breaches lease
Tenant has the right to leave...
Constructive Eviction
Actual Eviction
Physical Ouster of Tenant, relieved of
any futher duty to pay rent
Distrain
Landlord seize.
Most states require court order, to do this its called Distraint
Pro tenant legislation
Both parties of lease have to fulfill obligations...
Maintenance, Inspection, Protection against retalliations
If you need help with the things we went over in class, please feel free to connect
Copy The
NOTES
from this class...
