Saturday, October 30, 2010

NUREIA- New Real Estate Networking Club in Northern Utah

I've written before about how important education and networking are for most people to become successful real estate investors. A few of my business associates and I decided that we wanted to be proactive in meeting more investors. We know that the more people we meet with on a regular basis the more business we do.

NUREIA- Northern Utah Real Estate Investors Alliance
We are focused on real estate in Davis, Weber, and Box Elder counties. We also have attendees from Cache County. This is an alliance- we are allied in mutual success, in teaching each other, and in doing transparent, honest business deals with each out.

We meet formally once a month at the Ogden Golf and Country Club at 6:30 PM for networking, education, food & drink, and fun. Our meeting schedule is as follows:

6:30 Doors Open- Networking, Food & Drink

7:00 Formal Meeting
- Introductions
- Successful Deal of the Month
- Educational Materials Raffle
- Education Topic 1- 15 Minutes
- Education Topic 2- 30 Minutes

8:00 Networking, Food & Drink

The meeting is short, informative and fun. The networking is with people who are brand new to full-time experts. Most important is that people are doing business.

Join us. $10 at the door to help cover costs. Call me at 801.510.3566 if you have questions.

Thursday, September 30, 2010

Scam Targeting Utah Real Estate Agents!

Here is a new fraud: targeting real estate agent in Utah! Read the details below and call the Utah department of real estate if you think you have been a victim or have more questions.

I was not able to confirm this link on the website, but it came from a reliable source. Even if this is not a real scam, it is a good reminder to NEVER give out information over the phone from a source that cannot be verified.

Utah Div of RE


The real estate industry has long been an advocate of property rights and protecting the public from real estate-related scams. Recently, it has been mortgage fraud, short sale scams, foreclosure rescue scams, loan modification scams, etc. Now, real estate and mortgage licensees have become the target of a scam.

It goes like this. An individual, claiming to be a representative of the Division of Real Estate, is calling licensees and telling them that they have failed to respond to a notice sent out by the Division informing them that they are required to submit updated fingerprints. The individual warns that, due to this failure to respond, the licensee's license is going to be suspended. The individual then claims that this is a courtesy call from the Division, that the licensee may pay a small fee to avoid having his or her license suspended, and that the fee can be paid over the phone by credit card.


The Division will never contact any licensee and ask for a credit card number over the phone. The only licensees who are being required to submit updated fingerprints at this time are mortgage originators who are establishing their records in the nationwide mortgage licensing system (NMLS). All required payments for this fingerprinting are handled through the NMLS website, NOT over the telephone.

If you receive a call similar to the one described above, do not give out your personal information. Do not give out a credit card number. Try to get information that will identify the caller, and report it to the police and to the Division of Real Estate.

Wednesday, August 4, 2010

Small Commercial Projects

Clear Day Capital has traditionally focused on single family homes in northern Utah. Recently we were approached by a borrower who has done a great job on a couple of projects and he asked us if we wanted to become an equity partner with him on a commercial loan.

It is a fairly small project- under $200,000. The building was a shell that would need to be built-out and tenants put in. Here is the interesting part: projected rents over $3,200 per month. Hmmm..... have you seen the rents on a $100,000 house? Let's be generous and call it $1,000 per month. So two $100,000 houses would bring in $2,000 per month, right?

So if we do the math, this project would bring in 50% more rent for every dollar of capital invested. This sounded so interesting that we decided to fund the project. Sure enough the build-out took less than $200,000 in capital and rents are over $3,200.


Friday, July 30, 2010

Introducing the Northern Utah Real Estate Investors Association

I've written in the past about real estate clubs and how they are a great way to network with other real estate investors. I'd like to announce a new club that will focus on helping real estate investors who live in, or invest in, Northern Utah including Davis, Weber, Box Elder, and Cache Counties.

The focus for the club (known as NUREIA) will be:
  • Providing education and resources that will help real estate investors make more money
  • Create opportunities for real estate investors to network amongst themselves
  • Give value to the club's members and sponsors well in excess of dues, meeting fees, or sponsorship costs
Our meetings are on the first Thursday of every month starting on September 2, 2010.

They meetings are held at the Ogden Golf and Country Club located at 4197 S. Washington Boulevard in Ogden, UT. There is a $15 fee for attending to cover the cost of the room. Beverages and snacks will be served and are included in the admission fee.

Any questions? Give me a call at 801.510.3566 and I'll tell you more!

Wednesday, May 5, 2010

Real Estate Bubbles- American Style

Thank you, Uncle Sam (a.k.a. President Obama) for giving an incentive to millions of home buyers to purchase homes and receive government tax credits to do so. The response has been incredible. Sales of homes are up 10%, 20%, or even 22% over last year.

Can we look forward to a decline in volume this month? What about pricing- up or down?

Thanks Uncle Sam for the exciting real estate roller coaster ride!

Saturday, April 3, 2010

Real Estate Projects with Clear Day Capital

Clear Day Capital has always said that we create opportunities for real estate investors. Yet until a week ago we acted only as a hard money lender. Borrow money? OK, but make sure it's paid back in time because there are big penalties if you don't

Along Come the Projects
A week ago we did our first "project" with an experienced investors who purchases, fixes and resells single family homes in northern Utah. He gets:
  • ALL OF THE CAPITAL he needs to purchase and repair the house- no money out of pocket
  • LOWER INTEREST RATE to cover our cost of money
  • MORE TIME to complete the project
  • NO EXTENSION FEES if the project runs long
  • FREE CONSULTING on the project- he especially needs curb appeal help
What's in it for Clear Day Capital? We get a piece of the project. Instead of points, we split the profit from the project. Why do we do it? We believe in the project and we believe that we will make more money. We take the time risk with the origination fee.

Since the First Project
Since last week we closed another three projects, similar to the first. One is a rehab, one is a refinance of a completed project, and the last is our first commercial project.

Do You Have a Project that Needs Financing?
If you do, call us at 801.747.7267 and we can talk about a traditional loan or about doing a project together. Either way, we enjoy creating opportunities for real estate investors.

Thursday, March 18, 2010

1070 Doxey- Great Street, Lots of Room

1070 Doxey in Ogden, Utah is a typical, solid home for a family on a quiet residential street.

Like many Ogden homes it is a great investment property because the monthly rent covers a mortgage, taxes, interest, property management fee, repairs and vacancies.

It was gutted and refinished in December 2009.

Rental Information
Annual Rent $10,740
Annual Mortgage 7,195
Taxes 820
Insurance 450
Gross Cash Flow $ 2,275

Property Management 537
Repairs Allowance 537
Vacancy Factor- 5% 537
Net Cash Flow $664

Loan Information
Loan Amount $98,000
Property Value $118,000
LTV 82%

Monday, February 8, 2010

90 Days Waived- A Gift for a Year to Real Estate Investors

Did you read about the gift given to real estate investors by HUD & the FHA? Someone finally woke up and realized that artificially setting a 90-day waiting period to sell a house backed by government financing was slowing down the revitalization of inner-cities. I'm not sure why it took so long to figure this out, but I am glad they did. Funny thing, it is only slowing down rehabs for a year, then we'll be back to normal.

For one year we can buy and sell houses as quickly as we can and the buyers can receive FHA backed loans. If the house sells for up to 20% higher than it was purchased for, no special paperwork will be required. If it sells for more than 20% of the original purchase price, documentation showing improvements that justify the new selling price will be needed.

There aren't any details about the needed documentation, but keeping all receipts for goods and services that go into improving the property would be wise. Taking photographs and/or video wouldn't hurt for backup documentation.

Tell me what you think. Is this a good idea or a bad one? If it a good idea, why only for one year?

Monday, January 18, 2010

January 19, 2010- New Year's Day!

Each year as New Year's Eve and Day approach, my mind turns to making goals for the new year. It used to be all about the numbers- how much money, watching my weight, studying a certain amount of time each day, number of daddy daughter dates for the next year, etc. I became fixated on goals that were measurable, realistic, time specific and actionable. As soon as the numbers slipped, even a little, I became discouraged.

A New Year, A New Way of Thinking
On the first of the year I asked myself, "Why can't I start each month with this type of introspection? But then again, what about the beginning of each week? Hey, what about each new day being filled with hope, excitement, and introspection?"

Then and there I decided to, as much as possible, make each day the beginning of a new year. What does that mean?
  • Everyday day is a day to wake up excited about
  • Goals can be renewed everyday, regardless of my success of reaching them yesterday
  • I am continually optimistic about the year in front of me
  • My family, friends, and partners (not mutually exclusive, one from the other) are cherished in my life and I look for reasons to be with them
How Do I Feel?
Part two to my new year is to continually ask myself, "What do I need to do to feel good about today?" This will answer two questions:
  1. What is important? Accomplishing important tasks makes me feel great!
  2. What do I need to do to take care of myself and the ones I love? Unless I take care of myself and them, I will not feel good about the rest of my life.
Crunching the Numbers
Do I still care about the numbers? Absolutely, but in a completely different way. They allow me to track my progress and keep score, but they do not dictate to me if I am a winner or a loser. I win every day that I make progress- personally or professionally.

What do you do to keep the spirit of the new year alive?