Real Estate Investing

Here's what we do: Buy discounted properties (motivated, distressed sellers), fix up, resell. Simple as that. You've seen it on TV, make your millions in real estate, and all that, well, we do a version of that.

Some insights about this business:

a. Dealing with motivated, distressed sellers: Some people who are interested in the concept of buying real estate, don't like the thought that they might be "taking equity" from other people when they buy discounted. Fair enough - it comes from good sentiments, but here's the reality of this business as WE do it (I can't speak for unscrupulous investors). There are a lot of people out there, who, for whatever reason, whether it be job loss, divorce, health problems, etc., find themselves in trouble and needing to sell their house quickly.

We are able to handle that for them and fast. We jump through hoops to close quickly, and get them cash. We often let them stay in the property longer than usual closing terms. We buy without doing a full inspection. We buy without being able to spend weeks analyzing the particular property and market the way a normal buyer would.

The alternative for them: Oftentimes they're facing an upcoming foreclosure. I wish the bank wouldn't take their house away, but they're going to, so they either sell to us, get more money for the property, get to stay longer and not have a foreclosure on their record, or the bank sells it. If it's a divorce situation, they can either deal with months of pain and suffering as the two parties fight over the property, over repairs, over what to sell it for, or they can sell it to us and be done with it.

There are also some people that just don't want to deal with the hassle of the property any more. And when I started this business, I didn't understand why they would make an "incorrect" financial decision, i.e. giving up equity, but after owning some houses that were a real pain, that cost me money every month, I would have sold them at a discount! And I'm in the business! Imagine what it's like for someone that doesn't know what they're doing and they have the burden of monthly payments and the burden of having to sell their house.

Also, unlike most other investors, we offer an extremely innovative "partnership" program, whereby we partner with the seller in the fix-up and sale of the house, and share profits. The seller gets the upside of repairs we do to the property, and we mitigate our risks by being into the property for a lower amount.

b. How we make money and how we lose money: Here are the absolute keys to making a profit on a property. If you kept these in mind, you would do great, but you probably will only learn these once they cost you some money (like me).

-Buy at a discount from current market value

-Buy ONLY houses that you know you can sell easily. This means no weird kitchens, no houses with a closet for a bedroom, no houses next to a highway. You couldn't sell me a house next to the highway at half price, because if I can't sell it, then I have to keep paying the mortgage every month.

-Pay attention to your renovations. Attention to detail pays off- in certain markets, it's a must.

-Sell quickly. Carrying costs are brutal. They're a huge "hidden" cost. Get your cash and move on to the next deal. Learn about owner financing or lease-options exit strategies to move your house quickly.

c. What's going on in the market now: Please note, this insight is only applicable to my general market area, Western Connecticut, and obviously there's variations within that area itself. There are some large points though that will apply in other places.

Inventory is high (i.e. lots of houses on the market), rates are up and perhaps more importantly, mortgage companies are tightening the reins on who they give loans out to and what terms they offer. Realtors are all talking about how the market is coming in (they dictate the market more than a lot of people think). So this makes for... A Buyer's Market- prices are coming down, not crashing down, just moving down.

Also these ridiculous ARMs (adjustable rate mortgages) are starting to hit people hard which means foreclosures are going to be way up.

As an investor, I like a market which is down a bit because it needs me. It needs someone to facilitate transactions, someone that can step in with cash, absorb carrying costs, fix-up beat up properties that will never sell and more. In fact, the more investors come into the market to absorb these foreclosures (buy before they actually default and become bank-owned) the better off the market will be.


How we can work together:

a. Mentoring Program - If you're interested in investing yourself, I have a six month mentoring program available to a limited number of people. $10,000 gets you in the door. For this, you get:

-Initial Half-Day Training Session to Jump Start Your Business
-Weekly One On One Coaching Calls On Your Business
-Personal Review Of Every Potential Deal
-Weekly 1/2 Hour Coaching Calls On The Deals You're Working

I can work with beginners, but this program would be best for people that are familiar with the business, or have been investing but not with the success they'd like. I did over 40 houses last year, I can make it happen for you.

$10,000 sound like a lot? I establish a $35,000 minimum on all deals I work. I think the investment will work out in your favor quite quickly!

Please, serious inquiries only. Email or call for details - 203-791-8883 or nick.ortner@ortnerconsulting.com

b. Private Investors - If you have funds that you'd like to receive 12% on, guaranteed, backed by a note and mortgage, we should talk. Stop throwing your money away in the stock market. Unless you have the time to really research these companies, you're gambling. If you want to gamble, it's more fun to bet on sports. Put your money in a safe place with solid returns.

Email or call for details - 203-791-8883 or nick.ortner@ortnerconsulting.com

c. Green Building and Remodeling - I'm going to be writing more about this as it develops, but I believe there's a huge opportunity here. In the next couple of months, I'm looking to remodel a house using green, eco-friendly techniques, materials, concepts, etc. and then sell at a premium. I believe the market is there for it, especially in certain areas.

If you're interested in this in any way, as a realtor, investor, remodeler or just have some comments about it. Please email me or call - 203-791-8883 or nick.ortner@ortnerconsulting.com