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Article Index Finance Q&A Tools Index Site Map Recent articles by MP Dunleavey: How to invest when you've got just $500 , 1/15/2004 Your 3 worst debt consolidation moves , 1/11/2004 Feel guilty if youre not shopping? , 1/4/2004 More... Related Sites Robert Allen Institute Millionaire Hall of Fame National Association of Realtors John T. Reeds Web site John T. Reeds reviews of the real estate gurus Carleton Sheets Web site Joe Crumps Real Estate Moneymaker.com The Basics Nothing quick about getting rich with real estate advertisement A real estate seminar promoter promised to create 1,000 new millionaires, but so far none are in sight. See what happened to his believers. By MP Dunleavey Like a lot of people these days, Marjorie Stark wouldnt mind making a little extra cash -- or even a lot of it. So when she attended an information session for Robert Allens Creating Wealth Through Real Estate seminar in New York, she was more than willing to pay $2,495 for Allens intensive three-day course on real estate investment strategies. Concerned about not having enough to retire on and wanting to pass along some wealth to her kids some day, the 62-year-old New York City educator said to me then: I am convinced that real estate is the way to go. I was there that night, too, and I could scarcely resist the mouth-watering idea that those three days could make me rich. As the guy leading the session announced: We are on a mission to create 1,000 new millionaires in 12 months! A year later, Stark isnt any closer to being a millionaire. She hasnt bought any new property nor made any money on real estate -- except for the rental property she owned before and bought the hard way (with cash and bank loans). She even admitted that when she saw Robert Allens newest venture was in vitamin sales, I thought I was going to puke. I was very disillusioned. But Stark is undaunted and still believes there are fortunes to be made in real estate. She just enrolled in another seminar at a local college on how to buy distressed and foreclosed properties, she says. With a full-time job, Im not sure how I can do it, but, boy, am I itching to go! Start investing with $100. Explore our new ETF center. Theres something about real estate Stark is not alone. The National Association of Realtors doesnt track independent real estate investment seminars or how many people attend them, but their allure springs eternal like the get-rich hopes of those who sign up for these courses. The odds of winning are not high. Robert Allens 1,000 new millionaires never materialized in the last year, for example. Allen operates whats called The Enlightened Millionaire Institute. Its Millionaire Hall of Fame Web site lists only 50 millionaires (defined as having generated gains averaging $2.6 million). A spokesman admits not all of them exclusively used the Allen method of real estate investing. (And, in a disclaimer, the site notes, No information has been verified or authenticated. Results vary. All successes are subject to one's own knowledge and effort.) Despite all that, the Robert Allen Institute still conducts two or three seminars a week in different cities and says it reaches about 1,200 people each month. (Thats 1,200 x $2,495 = $2.99 million a month, in case you left your calculator home.) Allen is just one of dozens of artful salesmen who preach fancy financing, no money down, flipping properties quickly and numerous other strategies to get rich buying and selling real estate. And the question all this preaching raises is, do these investment techniques, systems and strategies really work? Can they actually make you rich? After all, would people keep trying it if it couldnt be done? Or are hundreds of thousands of people simply seduced by expert sales pitches and swindled out of hundreds and sometimes thousands of dollars? Weighing the evidence Like so many things in life, it depends on whom you talk to. Or whose Web site you believe. John T. Reed is a real estate investment coach himself, based in Alamo, Calif. Hes also a self-appointed watchdog for this industry. He keeps the most exhaustive list I could find of dozens of so-called gurus, along with reviews of their techniques, books and other products. Although Reeds Web site , where you also can buy his various books for $29.95, reads a bit like he has a chip -- a very big chip -- on his shoulder, he was recommended by the National Association of Realtors as a serious investigator in the industry. Not that hes against real estate investment, or some of the reputable folks who teach their own hard-won wisdom. But those have been degraded by "the endless parade of B.S. artists coming into the real-estate-investment-advice field. It is an embarrassment to the good people in the business." And many people believe his grousing is justified. Norm Bour is the host of The Real Estate and Finance Hour on KLSX in Los Angeles, a top talk radio station. Hes worked in real estate as a mortgage lender and describes the proliferation of real estate seminars, workshops and scams as a major pet peeve. Case in point: foreclosures, he begins. Real estate in California has gone berserk in the last few years so people are looking for foreclosures to buy. The idea being you can buy a foreclosure more cheaply than other property and potentially gain a windfall when you sell it. But, as Bour notes, You can count on one hand how many actual foreclosure properties there are (for sale). Yet theres no lacking of people who are offering real estate foreclosure lists. One might pay $35 for a list, but it may be peppered with properties in other states. Its not fraudulent, but its certainly deceptive. The shady gray area Well-known personalities like Robert Allen or Carleton Sheets , who have extensive marketing organizations, are a little different, Bour says. They offer some very solid basics, but the number of people who can do what they propose is very small -- because they make it sound so much easier than it is. Thats what Josh Kelinson, a freelance advertising consultant in New York, found when he and two friends tried to follow the Sheets method. The three pals pooled their resources to master what Sheets preached, which is similar to the Allen method: buying property with no money down (or some other creative financing method) and flipping later on for a profit. One of his pals took the seminar, another bought the 8-CD set, etc. Thus inspired and determined, they tried to buy a building suitable for five apartments in Massachusetts, not far from where theyd all grown up. Kelinson says the actual experience of trying to buy an income property proved eye-opening. We spent a ton -- and I mean a ton -- of time on it. There was the approval process, the paperwork, getting lawyers. It took two to three hours a day, not including weekend travel time and unexpected snafus. I found it impossible to do with a full-time job. Ultimately, the project bogged down because of a major zoning problem. The building was in an area zoned for three apartments, and the building had been illegally converted into five apartments. The zoning authorities refused to grant an exception to the rules. Then, the building owner refused to return their deposit. The three were out $35,000. Still, Kelinson doesnt feel misled or duped by the Sheets method, and he and his friends are sure they can make it work with their next deal. There are a lot of other things out there that are scams, but this definitely can be done, he says. But investing in real estate is not nearly as easy as it looks, he says. Make sure you have the time to do it, he advises wannabe investors. If you dont allocate the time, it probably wont work. We want the system to work so much And therein lies the fundamental appeal, and ultimate trouble, of get-rich-quick (GRQ) strategies. Its the jackpot mentality, says psychologist Patricia Farrell, author of How to Be Your Own Therapist . Just like the schmoe who buys a winning lottery ticket -- every once in a while, someone, somewhere really does use these edgy real estate investment techniques to make millions. Its not the principles that are flawed, says Bour. Its the simplicity and ease that are overstated. Most of these courses are so seductive, Farrell says, because they operate according to a tried-and-true principle of behavioral psychology called the variable ratio reinforcement schedule. Basically, people (and rats) will persist in doing something, even with little or no return, if they are given the tiniest bit of hope of a coming reward. So the fact that some people do succeed at no money down strategies acts like a financial aphrodisiac for all those watching, waiting, hoping. So could the Starks and Kelinsons of the world be next? Is it just a matter of reapplying the Robert Allen/Carleton Sheets techniques until they work? Mark Wilson, one of the millionaires created by the Robert Allen Institute, would say yes. The president of Southeastern Housing Partners in Hickory, N.C., Wilson started investing in real estate in the late 1980s. We were doing OK, but nothing to write home about. Then in 2002, after hearing Robert Allen speak, Wilson paid $5,000 to join a one-year intensive coaching course. It changed his life, his business and, above all, his cash flow, he says. Although hed read Allen's No Money Down in college, the seminar focused more on another Allen signature strategy: developing multiple streams of income (from rentals, rehabs, buying foreclosed properties, commercial properties, etc.). Now, Wilson says, hes about to close a deal that will put his net worth at $8.5 million. He believes anyone can make big bucks from real estate if he or she is willing to take action -- not just sit on the sofa listening to tapes. Before you sign up, count to a million Of course, Wilson admits that it was easier for him to take the Robert Allen techniques and run with them. He had a lot of experience in real estate already. Most people, Bour points out, dont have those skills. And few people have the time or the diligence to acquire them. (Some skill sets you need to have -- and the course cant teach it to you, agrees Kelinson.) Bob Underwood of Stafford, Va., is one person who can testify to the fact that investing in real estate is not for those steeped in fantasy. Underwood bought an e-book from yet another author and teacher by the name of Joe Crump . Crump, who hails from Indianapolis, teaches a no-money-down technique, but he told me that he does it legally and ethically. Underwood, 43, has a wife and family and a full-time job -- and no time to muck about in real estate with no return. He paid Crump about $500 for one-on-one coaching in 2002 and, after a rocky start, has managed to buy three properties in the last two years. Hes sold one of them, made about $10,000, after taxes, in the process and is hoping to rehab and sell another this year. One deal Underwood did alone, the next was with a partner. He says theres no cookie-cutter method that works. What works, he says, is getting out into the market, investing the time to learn about the business, not neglecting your wife and kids (or day job), learning from your mistakes, making friends and getting advice from others as you move forward. Slowly, steadily and not particularly wealthily. Remember, you have to pay capital gains (taxes) on the profits, he says, so its not a lot of money in the end. But that, of course, isnt what people want to hear. People are lead to believe that all you need is the right plan and youll make a million, that if you use this system youll be rewarded, says psychologist Farrell. They dont realize that the possibility of getting that big reward is so remote. 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Denver Real Estate Agent specializing in Highlands Ranch Real Estate, Littleton Real Estate LEILA CUNNINGHAM DENVER REAL ESTATE Direct: 303.257.1001 Fax: 303.470.5722 E-Mail: leila@anewwayhome.com Welcome Property Search Buying & Selling Mortgages Community Extras Contact Me Welcome to a New Way Home in the Denver Real Estate Market! The real estate process is always more enjoyable when you fully understand each phase of the transaction. As your Denver real estate agent, I will keep you informed and up to date throughout the process. My technique is based on solid, proven methods and utilizes technology to meet new challenges in today's market. My experience offers a sophisticated approach to analyzing your needs. I am a full-time Denver real estate agent dedicated to providing the best possible service to my clients, while upholding the highest ethical standards. I believe in constant communication and protecting your best interests throughout all phases of your real estate transaction. My excellent follow-through record helps ensure ongoing satisfaction. I am proud of myself being knowledgeable and staying current with changes in the Denver real estate market and other markets that will affect the success of your transaction. I believe that a good relationship is achieved by establishing trust and mutual respect between all participants. My approach is honest and straightforward. I am committed to excellence and to providing professional, result-driven service. In the meantime, feel free to look around my site. Search for a new Denver home, gain valuable real estate buying and selling knowledge, learn about mortgages, request a free CMA or Denver relocation information, and when your ready to take that next step, give me a call. Thank you! Real Estate News November 2005 NAR Welcomes Sen. Enzi's Small Business Health Care Bill The National Association of Realtors today welcomed legislation put forth by U.S. Senate Health, Education, Labor and Pensions (HELP) Committee Chairman Mike Enzi (R-Wyo.) to help small businesses provide affordable health care benefits to their employee Pending Home Sales Are Close to Record A reading of 128.8 makes this month's pending home sales the the second highest level on record. October 2005 NAR Board Raises Alarms Over Tax Proposals NAR's Board of Directors formally opposes proposals being considered by President Bush's tax reform panel. REALTORS Back State, Local Remedy to Eminent Domain Cases Almost 70 percent of REALTORS said each state should have the power to make its own laws about eminent domain. Realtors to Homebuyers: Let Your Buyer's Agent Be Your Guide From the first steps of qualifying for a mortgage and deciding whats important in a home, to making a strong offer, coordinating appraisals and inspections, and getting to the settlement table, every transaction is as unique as the people and properties Features Colorado Properties Current Denver Listings Resale Denver Home Search New Denver Home Search Real Estate Services Get a Free CMA Relocating to Denver Denver Home Buying Selling a Denver House 1st Time Buyers Send Me an E-Mail School Information Colorado Recreation Denver Entertainment Related Links Denver Area Weather Financing Check Current Rates Learn Mortgage Basics Loan Types Loan Calculators Find a Denver Lender Featured Listings $199,000 Mortgage Rates Loan Type Rate Points 30 Year Fixed 6.00 0.00 15 Year Fixed 5.62 0.50 ARM 3/1, 30 Years 5.25 0.00 ARM 5/1, 30 Years 5.50 0.25 Last updated on 11/13/2005. Home | Denver Existing Home Search | Denver New Home Search | Buying | Selling | Buying Your First Home | Mortgage Basics | Loan Types | Loan Calculators | Mortgage Lenders | Schools in Colorado | Colorado Recreation | Local Denver Entertainment | Denver Weather | Map the Denver Metro Area | New Home Builders | Relocating to Denver | Frequently Asked Questions | Related Real Estate Links | Contact Leila | Estimate the Value of Your Denver Home | Colorado Real Estate
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Selling Breckenridge, Keystone, and all Summit CountyColorado Real Estate Summit County Real Estate Home Summit County MLS Summit County Real Estate Sales Summit County Real Estate Showcase New Construction Selling Buying 1031 Exchange Office Locations Breckenridge Resort Help Wanted Summit County Colorado Real Estate Quick Real Estate Search Area: Breckenridge Keystone Copper Mountain Dillon / Summit Cove Frisco Silverthorne / Wildernest Park County Leadville Other Type: Residential Price: 000 to 000 Min Beds Ignore 1 2 3 4 5 Min Baths: Ignore 1 2 3 4 5 Min Square Feet: Contact | Advanced Search | Home Selling Summit County Colorado Real Estate If you own real estate in Summit County Colorado that you are thinking of selling, consider the following. Nobody comes even close to selling as much real estate in Summit County as Re/Max. In fact, Re/Max has been #1 in Summit County real estate sales for 15 years in a row! Real Estate Services for Summit County Sellers Free Competitive Market Analysis (CMA): Determine what your Summit County real estate is currently worth. So what did it really sell for? : If one of your neighbors recently sold real estate and you want to know the actual sales price, complete and submit this form; you can also use this form to determine recent sales within an entire subdivision or condo complex. Not only does Re/Max dominate the county as a whole, but we also lead in the various towns throughout the Summit County, as the following graphs will show: Breckenridge Keystone Silverthorne Dillon Frisco Feature Your Summit County Real Estate Listing On This Web Site The March 2005 Nielsen NetRatings Search Engine Ratings are as follows: This web site is in the top 5 for all of the most relevant search terms for people looking for Summit County real estate on all of the top 3 search engines!!! There is no other Realtor or Real Estate company site for which this is true! The following table shows the search engine rankings of this site as of November 07, 2005: Google 7-Nov Breckenridge Real Estate 1 Breckenridge Colorado Real Estate 2 Summit County Real Estate 2 Summit County Colorado Real Estate 1 Keystone Real Estate 1 Keystone Colorado Real Estate 2 Yahoo Breckenridge Real Estate 2 Breckenridge Colorado Real Estate 4 Summit County Real Estate 5 Summit County Colorado Real Estate 2 Keystone Real Estate 1 Keystone Colorado Real Estate 3 MSN Breckenridge Real Estate 3 Breckenridge Colorado Real Estate 5 Summit County Real Estate 2 Summit County Colorado Real Estate 2 Keystone Real Estate 5 Keystone Colorado Real Estate 2 Overture.com was used to determine that these are the most relevant search phrases. The following table shows how often these phrases were searched for during the past month as of November 07, 2005. Keyphrase Breckenridge Real Estate 1,849 Summit County Real Estate 1,113 Keystone Real Estate 1,540 Breckenridge Colorado Real Estate 1,046 Keystone Colorado Real Estate 1,131 Summit County Colorado Real Estate 882 All other seemingly relevant key phrases have fewer than 500 searches so I do not bother tracking them. Also, when people do search for real estate in other towns of the same name as those in Summit County, it is clear that they are often in fact looking for information on real estate in other states like Frisco Texas and Dillon Montana. Real estate currently on the market receives the following services: Web Marketing | Other Marketing | Sellers' Service Pledge All real estate will be featured on the following web sites: Featured Properties : Complete photos and information hosted on this site. Listings on most other sites link to this one. Other RE/MAX web sites: Both www.cloradomountainproperties.com and www.breckenridgebrokers.com contain all Re/Max listings. Also, this company has over 75 agents, most of which have their own personal web sites that feature Re/Max real estate listings. I also permit other non Re/Max agents throughout Summit County to include my real estate listings on their personal web sites through a real estate search service similar to the one accessible by clicking on the banner at the top of this page. If there are any other worthwhile real estate listing sites which you can suggest, let me know and I will look into putting your property information on them for you. Please note: many other sites you might think of (yahoo, excite, infospace, infoseek, etc.) already draw their information from one or more of the sites listed above. Other means I use to market real estate include (with your permission) but are not limited to: Including your property in the Summit County Multiple Listing Service (MLS), through which Realtors with other companies can show your property to their prospective buyers. Installing the internationally recognized RE/MAX for sale sign on your property. Direct mailing to potential buyers. Telemarketing to potential buyers. Circulating flyers describing your property to other local real estate offices. Holding open houses. Also , as a broker with RE/MAX Properties of the Summit, I will fulfill the following Sellers' Service Pledge by performing the following services: Provide a marketing plan for your property to include, as appropriate, recommended promotional and other activities, along with a "schedule of events" outlining those marketing steps mutually agreed upon. Furnish a written Competitive Market Analysis to help you determine the most effective listing price for your property. This analysis may be updated to reflect changing market conditions. Review various financing alternatives and assist you in determining those which best enhance the saleability of your property. Review local marketing customs, conditions and procedures, and make recommendations designed to enhance the marketability of your property. Install the internationally recognized RE/MAX sign on your property, with your permission. Expose your property to appropriate incoming transferees referred to this office through the RE/MAX VIP Referral System. Provide regular progress reports throughout the marketing period and discuss with you comments received about your property. Show your property to qualified buyers. Provide a VIP Referral Form, if appropriate, offering the services of a RE/MAX office at your new destination to assist with your search for a new property. Submit to you all written offers as presented; assist with negotiations; and provide an estimate of your net sales proceeds prior to acceptance. Upon acceptance of an offer by you, monitor pre-settlement (escrow) activities throughout the closing process as permitted by law or local practice. " If there is anything else you would like from your Realtor, let me know and you will not be disappointed with my service!" Click here to contact Ted. Ted Amenta is an Associate Broker with RE/MAX Properties of the Summit Site Map 1 2 3 4