Okay, let’s talk a little bit about financing your deals. If you expect to finance a business or real estate deals — are you sure you have everything planned out to do it correctly?  How do you figure out how much money you need?  How much money do you need to have available to do a “Free-In-Five” program?

Do you have a one year program where you have set your goals; because if you’re smart you’re saying, “By God I’m going to do 12 deals this year and I’m going to get it done.”  So the next step is how much money do I need to do those 12 deals?

So you want to look at the year, what your needs are going to be. Once you know what your needs are going to be for that one year then second, you need to have a line of credit or some kind of quick cash.  It can even be equity money.

We’ll get into that in another post. You can have equity money available.  But the number one rule that you don’t want to break is to find a great deal and then go looking for conventional financing. Those days are over and doesn’t look like they’re ever coming back for investors.

This is only for single-family residential – I’m not speaking of commercial. For single family residential, which is a volume type of business, you need to plan out how much capital you’re going to need to buy those houses over one year and get that capital procured. Because if not, you’re going to be spinning your wheels, losing deals, or always chasing capital for the deals that you’re finding.

So you need to get your capital in order first so that you can move on deals and execute your strategy. Anyone have any questions about that? If so, leave a comment below. Because I know a lot of times they’ll say get the deal and then go find the money, but the smarter way is to already have the money because the best deals are gone in a hurry.

The key to Financial Freedom is funding – pure and simple. The cold, hard fact is that your dream of building wealth and income through real estate will remain just that – a dream – unless you know how to fund it. Not only your deals, but your entire business. Inventory, marketing, education, capital expenses, outsourcing/salaries, reserves, taxes, insurance, etc. And the list goes on and on.

No matter what business you’re in, the basic formula for $ucce$$ is the same. Though our group focuses on real estate investing, there is an amazing array of small businesses among us, all benefiting greatly from the group, because the formula for $ucce$$ is the same. And adequate funding is a big part of that universal formula. Follow the formula, you $ucceed. Ignore the formula, and you fail. Period.

BTW, some of these businesses are related to real estate, some have no connection to real estate whatsoever. But without fail, the $ucce$$ of every single one of them hinges on the owner’s ability to create adequate funding to properly run and grow his business.

That is why this month’s Newbie Club is so critical. We are bringing in an expert to show you how to analyze and meet your total funding needs, no matter what your situation is today.

Did you hear that? No matter what your situation is today!

And we’re talking about all your funding needs, not just inventory (real estate). Where do you think McDonald’s would be today if they had raised only enough capital to buy inventory (beef, buns, drink syrup, etc.), but ignored all their other expenses? They would have never gotten off the ground! And maybe that’s why some of you have never gotten off the ground. Maybe, just maybe, you and I need to look at our business and its real funding needs in a completely different light.

This powerful Newbie Club meets Tuesday, March 10 at my Conference Center at 5855 Sovereign Drive, Houston, 77036. Meeting is from 7:00PM-9:00PM and is free. The “meeting after the meeting” at Denny’s is also free (except for your meal-which is 10% off), for those who want to join us for further networking

Our Special Guest is Cliff Pape of Home Buddies. Cliff is an economist, a credit and business consultant, an investor, and a small business owner himself. He has the insight, the experience and the ability to solve your funding problems. No matter where you are today.

My goal is not just to help you do your next deal. Dozens of mentors, teachers and gurus are available to do that. My goal for you is “Free in Five”. I want to help you create a realistic, customized business plan that will lead you to Financial Freedom within 5-7 years. Then make sure that you implement that plan. And then celebrate with you when your own personal “Freedom Day” arrives in the not too distant future.

Do you have a “Freedom Day” in mind? Do you know, clearly and in detail, how you’re going to get there? Have you honestly identified the obstacles in your life, and developed a plan to overcome them? And just so you know, every single one of those obstacles can be overcome. Freedom is for everybody, not just a select few.

If you don’t have clear answers to all of these questions, then Tuesday’s Newbie Club is an absolute must for you. Telecalls and webinars have replays, so don’t miss this Newbie Club because some guru wants to sell you a new “shiny rock”. I can’t think of any other meeting or activity that will fuel your $ucce$$ more than this month’s Newbie Club. We will be exposing the whys and the hows of fully funding, not just your deals, but your entire business. What could possibly be more important than that?

And no matter what your current situation. Did I mention that part?

Now, I didn’t say it would be easy, so come with an open mind and a personal commitment. Take lots of notes, ask lots of questions. Then take massive action. See below for a key to massive action.

First, I’ll see you at The Newbie Club Tuesday, March 10, from 7PM-9PM at 5855 Sovereign Dr., Houston, 77036. Then, I’ll see you at the top!

After all, 80% of $ucce$$ is showing up, and 100% of $ucce$$ starts with showing up.

To Our $ucce$$,

Gordon Appleby
Wealth Through Wisdom LLC

PS The difference between slow, painful boot-strapping and fast, smooth massive action is adequate funding. So, stop climbing and start leaping. Stop struggling and start growing. Come to The Newbie Club Tuesday, the 10th. You’ll be glad you did.

PPS Learn more about “Free in Five” and the new Wealth Club. Our goal is to not only help you get into real estate, but to help you get out of it. After your “Freedom Day”, you’ll be able to walk away, because you’re Financially Free. Or you can keep going, because you want to, not because you to.

What a liberating concept! Having an end in mind, right from the beginning. Sound good? You bet it does!

I’ll see you at The Newbie Club.

Gordon Appleby
Wealth Through Wisdom LLC

So far this year the Houston economy has slowed by half. Unemployment is now trending up which will be a key factor affecting projections for real estate demand. However, we are still waiting to see the affects of the diminishing financial conditions and the drop in energy prices.

Real Estate
Real estate markets were hit hard by the one-two punch of the credit crunch and hurricane Ike. Existing home sales are down 29.5% over the past twelve months. New home sales are off by more than 50% over the past twelve months as well.
The Houston rental market continues to see strong demand that is driven by tighter credit standards that keep renters from becoming homeowners, and local job growth. With such a strong current demand for rentals, single family homes for rent should continue to be a hot commodity in key areas of the city. However, with the pace of new apartments coming online, the apartment rental market could begin to sputter as we move in to 2009.

Rig Count, Oil & Gas
During September and October drilling rose sharply. The strongest evidence was that the number of working rigs averaged over 2,000 for a full month. The last time 2,000 rigs were working for a full month was in 1985! However, the number has begun to fall back as energy prices have fallen. In addition, producers have announced cuts in drilling budgets as oil prices have fallen to under $70 and natural gas prices under $6.50. With this current trend we are probably coming to the end of Houston related hiring in the oil industry until financial and economic conditions improve.

Obama
Now that the elections are over, financial markets are shaky with the uncertainty of what the new president will do in order to assist markets. This uncertainty will cast a shadow over the economy leading into the first quarter of 2009.

Houston business owners should exercise extreme caution heading into 2009. Key fundamental drivers of the Houston economy are now beginning to pull back which points to a slowing Houston economy. However, without any exogenous shocks to the Houston economy, business owners as well as investors should be able to navigate through this economic transition.

Cliff Pape
Home Buddies

Here is the inside scoop about the east side of Houston just outside of downtown being torn down.

Let’s call it like it is, the east side is going through a major transition. Metro is moving toward putting a primary hub in the area which will more than likely intensify the transition that is already taking place. Just outside of downtown going east, which for the past twenty years has been primarily a low income Hispanic area, is now ripe with opportunity!

As we all well know, many inner loop areas are on the verge of a transition. However, the east side of downtown Houston is picking up steam, primarily due to the potential of a light rail hub being established within the area. Many sophisticated investors are quietly buying land to ultimately sell to builders who will then tear down old homes and build new town homes for more “yuppie living” close to the rail and downtown. Analysis of the past few years shows that the days on market for the area has been trending down while the prices have been trending up.

Finally, the biggest drivers of long-term housing demand are employment and population growth. The Dallas Fed is predicting Houston population growth to be annualized 1.5% over the next five years. This, in conjunction with the boom in oil and gas, causes a need for new employment in Houston. Then you will have a lot of new folks who will be living in Houston and close to downtown.

So the transition going on just outside of downtown Houston will be an interesting trend to watch unfold over the next several years. For those of you who are willing to work this area, it will surely pay off in commissions and good investment profits!

Cliff Pape
Home-Buddies