Serious Business Can Also Be Serious Fun!

I must admit that 2008 was a very exciting and fast-paced year! I finished this year off with a BANG!, literally! I just completed my concealed pistol license (CPL) class today so that I could apply for my permit to carry a handgun for personal protection when performing my activities as a real estate investor. Several other investors have told me that it’s not only a good idea, but it’s essential to have personal protection when entering vacant properties to inspect them as potential purchases. It hasn’t happened to me, yet, but several others have told me their personal stories of uncomfortable and potentially dangerous encounters with squatters and others found inside the property who should not be there.

So, not only did I want to protect myself if necessary, I also wanted to obey the laws and legally protect my right to keep and bear arms so that I could also protect and defend my family at all times. It’s increasingly necessary in these times of uncertainty. Many people who are out of work or in other ways have fallen on hard times can become desperate and do desperate things. I don’t want my family to be confronted with such a situation. I want to be prepared.

I consider a CPL simply a necessary tool needed by the real estate investor just like a digital camera and a notepad. It’s part of your “utility belt.”

Here is the picture of my range target at the end of the training session.


It might be difficult to tell by the picture, but I put 30 rounds of ammunition at dead center from about 15- to 20-feet. It sounds easy to anyone who hasn’t fired a handgun, but judging from what I saw others doing at the range (many who claim to be regular shooters!) it’s not as easy as it sounds. Accuracy isn’t by accident -- you have to follow the fundamentals if you want accurate results (a tight shot group).

I recommend everyone interested in learning more about the right to keep and bear arms and learn about what it takes to properly (legally) protect yourself and your family to contact Cedric (Rick) Ector, a certified NRA instructor, and take his class. Even if you don’t plan to move forward today and get your permit, at least take the class for the information and the experience of shooting at the range in a safe and professional setting. I can’t recommend it enough!

Here is my certificate:

Thanks Rick! I look forward to further training opportunities with you in the future!

Wow! Has it been a month since I have posted anything to my blog? Unbelievable how time flies!

What have I been doing? What has kept me so busy? Well, I’ll tell you … I have been working very hard with a new contractor to finish up where the other guy left off - abruptly. In other words, I had to let one contractor go because he just would not perform. I got another gentleman that I know and trust to come in and “clean up” after the other guy. That is never any fun for anyone, but it had to be done and Alan Boike did an excellent job for me - thanks Alan!

Also, I have been advancing my education by pursuing my master’s in business administration (MBA) through Davenport University. I’m at the half way point and expect to finish in early Spring, 2010. So, I expect another very challenging year in 2009, but I am up for it!

I have successfully placed a tenant in my Rosedale Park property in Detroit. They are very excited to move in and start enjoying the beautiful, historic home. Before they do move in next week, I am working with the city of Detroit to get the water properly turned on - finally. The main shutoff valve at the street appears to be broken and we have extremely low water pressure in the house. So, I need to get that corrected this week - no excuses! - so that they can move in with no problems.

I am still searching for a tenant for my property in Mt. Clemens on 125 Grand Ave. Apparently people do not want to pay $875 for a 3-bdrm, ranch home with a HUGE country-style kitchen that has a cathedral ceiling and a huge, clean basement complete with a 2nd bathroom - not to mention all brand new appliances. Well, I will just have to keep marketing till I attract the right applicant.

What are my next steps? Well, I have to wait till I have at least six month’s “seasoning of title” before I can seek a cash-out refinance on both properties I am currently working on. In layman’s terms, I need to show that I have owned the properties for at least six months before most (or any) banks will consider extending a mortgage. So, once February 2009 rolls around (less than 90 days from now, can you believe it?!) I will be able to seek a 30-yr. fixed-rate loan on both properties (125 Grand Ave. in Mt. Clemens and 14866 Faust Ave. in Detroit) and cash out in order to pay off my business lines of credit that were used to acquire and renovate the properties as well as pay for all the holding costs. Once I do this cash-out refinance, I will be positioned to purchase again in early Spring 2009.

However -- this is where it gets truly exciting. I can only have a maximum of four mortgages and my primary residence counts as one. So, I can only carry three investment properties on a 30-yr. fixed rate mortgage. And, since my business lines of credit are limited, I will have to start looking to private sources for funding future investments.

So --- if you are reading this and are interested in investing in real estate for better returns than you’re getting now in the stock market, or if you know someone who would be interested, please let me know. I’m really excited about the opportunity to share with others what I am doing and together we can benefit from this real estate market while others are running for the boarder!