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CONTACT WALTER

559 S. Washington Ave., Kankakee,IL 60901

P.815.929.9258 P.815.929.9200

walter@waltersanford.com

"I think we had a great meeting in Savannah. The comments received in your presentation were all positive. Thank you so much for what you did for us. It was a big help to ensure a great meeting for us. You always go the extra mile." Maurice Johnson,Realty World

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Planning for Retirement from Real Estate October 16th, 2017 | Posted in General Real Estate, Other Interests, Real Estate

My incoming messages have been fast and furious.  Everyone wants to know how do you walk away from real estate?  Well first you have to know that my wife is still the top agent in Kankakee County, Illinois.  Then you have to know that I am growing and improving our real estate properties.  So I am still knee deep in real estate.  However, it is nice to change up your responsibilities and who you are responsible to.

Therefore, the planning started years ago with picking the ownership of rental real estate as my investment vehicle, my retirement vehicle, and the vehicle that I would like to use to affect future generations. The largest problem that I had was how do I afford the down payments?  My solution was to implement new ways of generating listing leads and initially netting one more listing every month.  Spending an hour every day of my career either trying new lead generation activities or implementing my favorites became my most important time block.  Every year, I took the equivalent of twelve commissions and bought a cool piece of property that I did not mind owning forever.  I became proficient at finding sellers and converting them into saleable listings.  Doing this has become a legendary trademark in my training other Realtors for the last 30 years.

Since I am no longer going on the speaking circuit, I am giving away my manuals for my cost.  By going here you can have all my software and thousands of pages of my manuals…everything that I have ever produced and sold to the top agents of the world for $1500, for just about $90.00.  Probably the best system in the world for running your individual real estate business that will crush competition.  I hope you get the package before they are all gone……then you will know how to easily get 12 more listings this year and use that commission for your down payment.  As you start to acquire these “keeper” properties please keep some rules in mind:

  1. You are going to keep forever (at least that should be your intention).
  2. You should not have to put any cash into them as negative cash flow except for improvements beyond normal  weal and tear.
  3. In areas that you can send grandma into to collect rents.
  4. Long term financing so that you don’t violate rule one.
  5. Fixed financing so the money market will not affect you.
  6. Buy so it is easy to “tire kick”.

 

Soon I will give you my rules for developing more cash flow than other owners….in the meantime, get my products so that down payments will no longer be your excuse.

Integrating Personal Investing with Seller Lead Generation in Your Brokerage Business October 13th, 2017 | Posted in General Real Estate, Other Interests, Real Estate

The first rule in a real estate brokerage business is to GET LISTINGS!  As many other speakers before me have said, “List to last!”  However you remember job one, it is important to understand that you can control more listing sides than you can control buyer sides.  It is faster and less expensive to obtain a commission from a listing than it is from a buyer.  This comes from the fact that buyers just take more personal hand holding than listings do.  Obtaining a listing is the least expensive and most effective way to find a buyer.  Listings promoted geographically by signs, word of mouth, and worldwide through the internet put you in front of more buyers.

When I take on a new real estate agent coaching client, I immediately build his or her brokerage business cash flow by implementing new seller lead generation systems.  The majority of the world’s top agents spend a majority of their time planning, implementing, and monitoring their seller lead generation programs.  The most successful real estate agents in the country time-block their schedules to make certain that nothing interferes with their seller lead generation systems.  It is simple – the top agents list and make a lot of money doing it.

Since it is clear that you will be paid to list, you have now discovered how wonderful it is to be a real estate agent and real estate investor at the same time.  You get paid to prospect for investment inventory.  As you are generating leads to find sellers, you are also viewing those pieces of inventory.  As you meet those sellers, you can evaluate whether or not these properties fit your investment profile as it is designed by this system.  If they do not fit (which they usually do not), you obviously get paid to successfully list and sell the property.  On the off chance that the property does meet your parameters, it gives you the opportunity to develop a win/win situation.  Many times win/win situations gave me my most satisfying real estate experiences.

As I generated leads from hot seller demographics, such as expireds, FSBOs, long-time owners, absentee owners, multiple property owners, mature owners in larger properties, and other demographics — I found many people who needed to “act now.”  Real estate is a fairly non-liquid investment.  It requires an evaluation of the property, marketing program, and a sales period in which to become liquid.  Since you, as a real estate agent, could be the buyer, the marketing period would be eliminated.  The sales period would be accelerated because of the connections you have with your team members, such as escrow, title, and mortgage companies.  You can close this property faster and more effectively than an outside buyer; you have already evaluated it as you prepared the listing presentation!  This sometimes is a real asset to a seller.  Someone who has a very compelling reason to immediately become liquid might be a good prospect, if the property met your investment criteria.  There are many instances in which people need to sell quickly.  The following are some with which I have had personal experiences:

  1. A Life-Changing Event – I have had sellers who needed to relocate immediately — usually because one of the “D” words.  It has been mused that the “D” words have been a staple for higher real estate agent incomes for many years.  These “D” words include death, divorce, disillusion, and debt.  There are many things that can happen in one’s life to necessitate a quick sale.  A real estate agent who is equipped as a real estate investor can sometimes be the fastest to the closing table.  If the real estate agent fully discloses the value of the property and provides a win/win situation for all parties involved, it is one of the advantages of selling real estate and being an investor at the same time.

  1. Burn Out – Many times, the seller is absolutely nauseated from dealing with the tenants or management companies.  I have seen sellers who have been driven to bankruptcy by really bad tenants!  Sometimes there is an end to the amount of abuse that a seller can receive from a tenant or a management company; however, the proper management of real estate is a systemized process.  When something does not work correctly, it is usually the fault of the owner not knowing the golden rules of management.  This book will go a long way in showing you how you will be able to manage your own investments while still selling and becoming profitable in real estate brokerage.  People who are burnt out in real estate investments have created a large part of my seller inventory.  Many of these sellers were willing to negotiate with me for the purchase of their property rather than spending one more moment trying to collect rents.

  1. Another Deal – This is an outstanding method of not only helping the seller but also increasing your investment inventory.  I have met many sellers who need the proceeds to purchase another property.  Sometimes they have found a better deal.  Sometimes they are involved in an exchange, and this transaction falls through.  Sometimes they want to increase their depreciation write off or cash flow.  Whatever the reason – the new transaction will not wait, and they must become liquid on their current ownership.  Once again, being an “inside” agent with the know-how to be an investor offers advantages to both parties.

  1. I.R.C. Tax-deferred Exchange – There are times when you might be dealing with an investor who is in the middle of a 1031 tax-deferred exchange and must adhere to strict time considerations.  This happens when the investor is selling multiple properties and trying to obtain a new one.  Since the current laws in tax-deferred exchanges say that you must identify the new property within 45 days of the sale of the old property and close within six months of the sale of the old property, strict time considerations require that the down-leg properties be sold.  If I have sold some of the down leg properties for the person involved with the exchange and other properties still remain to be sold to complete the exchange, the investor can see the wisdom in selling one of unsold properties to me to complete the exchange.

  1. The Informal Domino Theory – This situation, as stated before, starts with a house being sold subject to another house being sold.  If that property is then sold subject to another property being sold and on down the line, it soon becomes necessary for the first property to be sold before all the other “Dominos” to fall.  If there is no buyer for the first property, sometimes between commissions and motivated clients, you can receive numerous stipends to motivate yourself to buy the first “Domino,” if it meets our investment parameters.

  1. Financial Conditions – Many times, a seller may have to raise a lot of cash for personal reasons, and the quicker, the better.  Once again, the real estate agent with the ability to be an investor is in the right place at the right time, therefore helping the seller receive what they need.  I have even helped “innocent until proven guilty” clients who needed to have their property sold to obtain funds for their legal defense!

  1. Retirement – Many times the seller takes this time to sell his properties and ride off into the sunset.  If he is willing to take a tax hit of a sale without an exchange, sometimes the lure of marlin fishing off of Cabo calls for a fast and efficient sale that I can certainly offer.

These situations and more appear as you work day in and day out obtaining listing leads.  It is one of the perks of being an “insider” investor.  You will find that being in this business introduces you to potential sellers that you never would have met otherwise.  Talking with people at open houses and going on a listing presentation to find out that other property is owned are potential sources of investment property for you.  It is important that you always stay alert to opportunities where you can find a property that meets your investment needs and solve your “do not wanters” situation.  Every property you encounter in the course of your real estate brokerage business could be your next investment.  Buyers are great “ins” also.

Since I have retired from the speaking circuit, I have my systems (large books with software) that I was selling from the back of the room at about $1500.00.  These are my newest products and this package includes everything that I have ever done.  As a “pay it forward” opportunity I am now selling these same books and software at my cost, about 94% off.  This is the start of your plan to get to the point where you are living the dream.  This is not anything but selling you the best real estate training materials in the world for 94% less than they were selling for a couple of weeks ago.  You will get 9 books, a whopping 45 pounds of checklists and information that is easy to use.  These volumes have been used by agents in the US and Canada to be the best agent in their market place.  Go here top pick up your foundation for the future.

 

Investor or Speculator? October 12th, 2017 | Posted in General Real Estate, Other Interests, Real Estate

You are either an investor or a speculator.  If you are a speculator, you are depending upon the building to go up in value, and you place less credence on the operation of that building as a business.  If you are an investor, the building must operate as a business and amortize the debt.  The problem with being a speculator is that you do not control the direction of the appreciation of real estate.  As I have said before, real estate in Southern California in the early 80s, dropped 15 to 30%.  In the early 90s, the real estate dropped 30 to 40%.  Based upon the current bubble theories and the current run up in real estate in 2006, there is a high probability that this drop could happen again in our greatly inflated real estate price areas.

People who buy a long term asset (real estate) with short term thoughts (violations of rules 1-6) might find that when appreciation stagnates or becomes depreciation, buying properties based upon speculation will quickly lose its charm.  I have never gone wrong buying a building that makes sense as a business; in fact, they appreciated just the same way that buildings bought for speculation did, sometimes even more!  Furthermore, they were able to weather all storms.  The real estate speculator who has gone through a storm will long someday to be called a real estate investor.

My goal when I was young was always to own 400 free and clear units.  I have reduced that goal to a lesser amount because of mistakes that I have made in my life; however, my substantial real estate portfolio that I acquire under my rules for success will be owned by me — free and clear.  The complaint that I hear to this plan is, “Where does the investment money come from?”  That is why it is so important that you are an “insider”!  When you are a successful real estate broker and are using my systems or other mentors who have systems that work, you will find that you will actually make enough money in commissions to fund your down payments and your other dreams!  For me, there had to be an over-riding reason as to why I worked hard as a real estate agent to make net proceeds in commissions.  That reason for me was to buy the product that I sold, the product that I touched, felt, and evaluated every day.  This product, when bought correctly with proceeds from your net cash flow of commissions and managed using the systems like you are currently using in-house to manage your business, will cause your tenants to pay that property off, someday allowing you to say – “I love this business of real estate brokerage, but I do not have to go to work today!”

Someday your rental income may replace your commission income.  It will allow you the live the life that you have always dreamed about.  You might like to see this happen a little faster than nine years.  This is the current average amortization of my loans, based upon all my cash flow being applied to the payment.  Cash flow will increase after implementing my successful real estate systems into your real estate commission business so go ahead and apply the positive cash flow that this book will help you earn on your buildings towards your underlying loan.  By applying positive cash flow to your underlying loans, you will find that they amortize quickly.  This is called the “snowball theory” of my real estate investment program.

By making principle pay downs funded by the positive cash flow on an intelligently-purchased property, you accelerate the amortization schedule to the point where the property becomes free and clear, and positive cash flow is the order of the day.  The day when you get your first building free and clear is an indescribably magnificent event.

You now have a decision to make – to which of your current buildings do you apply all of the positive cash flow?  The answer is the one that will create the most positive cash flow the fastest or the one that has the highest rate interest rate mortgage on it.  Since you are still working hard in the real estate brokerage business and earning a great living, first move the positive cash flow from your free & clear building and then move the rest of the positive cash flow produces to the next one.  You will find that the next buildings will snowball even faster with the additional positive cash flow that they create coupled with the positive cash flow from your other buildings.  The second building will be paid off faster, thus facilitating the third, fourth, fifth, etc.

This is the third time that I have made a fortune in real estate investing.  The first time, you already have read about.  My “not having a life” caused me to lose most of my second round of smart real estate investments through divorce.  This system has been fool-proof for me, and it will be for you also.  I intend to run my life successfully now so that I do not have to build a portfolio a fourth time!

Many of my coaching clients have received financial independence in a short amount of time using this theory.  Being an “insider” allows you to take your time to find the buildings that create positive cash flow, allow you to apply the positive cash flow to the underlying loans, and use real estate brokerage to fund your life and down payments.  This puts you in a position to slowly and intelligently find properties that meet your “insider” parameters and allow the snowball theory to work.

Since I have retired from the speaking circuit, I have my systems (large books with software) that I was selling from the back of the room at about $1500.00.  These are my newest products and this package includes everything that I have ever done.  As a “pay it forward” opportunity I am now selling these same books and software at my cost, about 94% off.  This is the start of your plan to get to the point where you are living the dream.  This is not anything but selling you the best real estate training materials in the world for 94% less than they were selling for a couple of weeks ago.  You will get 9 books, a whopping 45 pounds of checklists and information that is easy to use.  These volumes have been used by agents in the US and Canada to be the best agent in their market place.  Go here top pick up your foundation for the future.

Investment Rules You Should Never Break October 11th, 2017 | Posted in General Real Estate, Other Interests, Real Estate

There are some investment rules that I never break.  They are as follows:

  1. Buy with the intention of never selling.

  1. No negative cash flow before taxes.

  1. No adjustable or variable rate mortgages.

  1. No balloon payments on the underlying mortgages.

  1. Do not buy in areas where you have to collect the rent with a gun.

  1. Be able to “tire kick” your investments.

I abide by these major rules, because I have learned them over the years personally and through the interviews with successful and financially independent real estate investors.  However, it is very important that you understand if you apply these rules to satisfying your client’s/investor’s needs on commissioned sales, your commissioned business will fall off substantially.  What I mean is that there is just not enough inventory that meets these rules.  Since you are in a position of being an “insider,” you have the advantage to look at more inventory in less time and get paid while you are doing it.  I would expect a much higher standard to apply to you.

Since I have retired from the speaking circuit, I have my systems (large books with software) that I was selling from the back of the room at about $1500.00.  These are my newest products and this package includes everything that I have ever done.  As a “pay it forward” opportunity I am now selling these same books and software at my cost, about 94% off.  This is the start of your plan to get to the point where you are living the dream.  This is not anything but selling you the best real estate training materials in the world for 94% less than they were selling for a couple of weeks ago.  You will get 9 books, a whopping 45 pounds of checklists and information that is easy to use.  These volumes have been used by agents in the US and Canada to be the best agent in their market place.  Go here top pick up your foundation for the future.

 

“Insiders” Have the Time to Do It Right! October 10th, 2017 | Posted in General Real Estate, Other Interests, Real Estate

Since you are spending your days earning commission dollars, you have the time to slowly and intelligently contemplate the inventory.  You are not in a hurry here.  You are making all the same moves that a real estate investor would be making, but you are actually earning a living while doing it!  So, why jump at something that does not make sense?  I have found that many real estate agents jump at any opportunity, because they do not know what a real opportunity looks like.  Remember, we are using real estate as a vehicle to become financially independent — a vehicle that will fund our retirement and provide annuities to our family, communities, and faith.  This investment vehicle deserves careful planning.

In all the years that I have invested in real estate, I have found that there are certain situations that are nightmares.  Yes, I know what you are thinking – you have to take some bad with the good; however, since we have all the time in the world to find the correct investments while we are earning money doing it, I believe that a real estate agent’s “insider acquisition plan” can be even more stringent than your most persnickety investors.  As you become more experienced in your real estate brokerage business, you will soon be developing some rules for yourself.  These rules may be more or less applicable to your own area, but here are some of my general guidelines:

  1. In most cases, properties located in poor school districts will attract lower paying tenants.
  1. As a general rule, older buildings have more expensive repairs needed than newer buildings.
  1. One-bedroom units are harder to rent than two-bedroom units. Four-bedroom units can attract multiple family tenants – sometimes in violation of your lease or rental agreements.
  1. Parking is always a plus!
  1. Buy extra land with a building and have the building support that extra land. Land banking is an outstanding method for acquiring land supported by an attached building for future investment.
  1. Long-term, fixed financing is always safer than short-term or variable financing.
  1. Properties and buildings in tough areas usually have higher expense ratios.
  1. Master-metered buildings means that the gas goes on in September and is turned off in May. Furthermore, it can also mean that your apartments look like the LAX landing strip at 11pm!
  1. Outside stairs are expensive!
  1. Pools are a problem regarding maintenance, costs, and safety.
  1. Owner-owned washers and dryers in a laundry room are probably not worth the money they make.
  1. Renting your property with appliances will create just as many problems as the property itself.
  1. If you do not see where your proposed new tenant currently lives, you deserve what you get!
  1. The seller’s numbers on expenses and income are probably wrong.
  1. The manager knows the building. If he or she wants to continue to manage the property, spending ten minutes with him or her will be worth days spent with the seller and listing agent.
  1. Make your inspector/contractor a friend.
  1. Triple your estimates for repairs to do them correctly.
  1. A vacancy is better than a bad tenant.
  1. The city and previous service people will surprise you as to what they know about a building.
  1. There is always another “bus” coming by….

You might term the above as lessons that experience taught me.  I bring these up to try to help you shortcut some of the expensive lessons that I learned in my life as a real estate agent and real estate investor.  I hold this list as personal investment truths for me.  Sometimes people have to learn these the hard way!  Having a vacant apartment or wanting to buy a building badly sometimes causes you to make mistakes.  These mistakes might be okay if mitigated by a lower price or better terms; however, you must know that the items above and those you will add to the list are detractors.  You can never be too eager for a tenant or a building and break too many of these guidelines.

Since I have retired from the speaking circuit, I have my systems (large books with software) that I was selling from the back of the room at about $1500.00.  These are my newest products and this package includes everything that I have ever done.  As a “pay it forward” opportunity I am now selling these same books and software at my cost, about 94% off.  This is the start of your plan to get to the point where you are living the dream.  This is not anything but selling you the best real estate training materials in the world for 94% less than they were selling for a couple of weeks ago.  You will get 9 books, a whopping 45 pounds of checklists and information that is easy to use.  These volumes have been used by agents in the US and Canada to be the best agent in their market place.  Go here top pick up your foundation for the future.



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