Visit us online at www.acrepgh.org
May 2015
ACRE of Pittsburgh, Inc.
Volume 19 Issue 5
The Massive Benefits of Your REIA Group
By Tom Zeeb
A “Real Estate Investor Association”
or REIA is a tremendous source of
knowledge, networking and inspiration. You need to make these meetings part of your monthly schedule.
Every club operates a bit differently,
but the basics are all the same. They
are a great place to meet other people
in the business. People who can educate you, sell you deals, buy deals
from you and recommend team members and services. The other people
there are the number one reason you
should go to the meetings. Being
around others in the business and
learning about how and why they are
successful will help you succeed in
your business faster.
Inside This Issue Page
Board Member’s Message
2
Details Worth Mentioning
3
A Matter of Trust 2015
6
Member Application
9
Calendar of Events
9
Vendor Index
14
Monthly Meeting Agenda
17
While at a meeting, don’t be shy.
Shake hands with the people around
you and give everyone you meet
your business card (you do have
cards on you at all times, don’t do?)
Be sure to get their card as well. If
they do not have one, have them
write their name, phone number and
email address down. You will want
all this information to build your
database. These are the people who
will buy your wholesale deals or the
people that you can call when you
are putting a deal together.
If you are the shy type, try to make
a game out of it. Set a goal and tell
yourself you want to leave the
meeting with no less than three people’s cards. Then force yourself to
say hello to the person sitting next
to you. It will get easier every time.
The conversations will be basic and
remind you of your freshman year
in college, when everyone asks the
same old questions like ‘where are
you from?’ and ‘what are you
studying?’, but now it will be ‘what
kind of investing do you do?’ and
‘how long have you been doing it?’
Want to learn how to estimate repair costs? Ask one of the renovators at the meeting if you can go see
one of their projects and have them
explain how they determined their
costs. Offer to take them to lunch in
return and tell them you’ll be happy
to wholesale deals to them. Be respectful of their time though, they
are busy and aren’t getting anything
in return from you at the moment
(other than lunch). Be sure to know
the basics, you don’t want to waste
their time on things that you should
have already learned from books,
you’ll get more out of it too!
Want to find a good attorney or
accountant, ask the regulars at the
meeting who they use. What better
place to get good team member
recommendations that from people
actually in the business?
Some groups have a ‘deal makers’
section, where they let people stand
up and announce deals. Others
have a ‘success stories’ section
where anyone who has done a deal
in the past month can stand up and
give the details and then be applauded. Pay attention to who
stands up during these sections
month after month. They are the
players in your local market and
people you should make an effort
to know.
ACRE of Pittsburgh, Inc.
Page 2
state the amount, but not the terms
of repayment. The terms are described in the note, which is a private document between the borrower and lender. The note is not
usually recorded, so your terms remain private. When a seller holds a
mortgage he deeds the property to
the new owner and records his
mortgage as lien against the property. If any thing were to happen to
someone on the property the seller
would not be liable because he is
only a lien holder. He has no ownership in the property. This is
probably the most compelling reason why people would hold a mortgage. The lender should receive the
original note, a copy of the recorded mortgage, a copy of the title
insurance policy, and a copy of the
fire insurance naming the lender as
Board Member’s Message
o the Members:
This month I would like to address a
question I receive quite often. How
can I sell with owner financing and
what are the risks? Sooner or later in
the real estate business you will be
asked to hold a mortgage or provide
seller financing. How you approach
and handle this situation may drastically shorten your real estate career.
Just ask someone who has had the joy
for judicially foreclosing on a mortgage, the average time is about eight
months to one year. Knowing this,
why would anyone want to hold a
mortgage? Before I answer lets go
over some of the basics about notes
and mortgages.
What is a mortgage? A mortgage
is a debt instrument by which the borrower gives the lender a lien on property as security for the repayment of a
loan. A note is a written promise to
pay a specified amount to an entity on
or before a specified date. In simpler
terms a note is your promise to pay. A
mortgage describes what I can take if
you don’t pay. A mortgage will appear as lien against the property in the
county records. Mortgages typically
(Continued on page 3)
The Real Estate Investor
ACRE of Pittsburgh, Inc. does
not exist to render or give legal,
tax, economic or investment
advice and disclaims all liability
for action or inaction taken or not
taken as a result of
communication from or to its
officers, directors and members.
If legal advice or other expert
assistance is required, the
services of a competent
professional should be sought.
President
Josh Adamek
412-537-8604
[email protected]
Vice President
Sharon Harkins
412-262-5943
[email protected] E,Q
Treasurer
Jeff Kasmer
724-864-5400
[email protected]
C,K,L,S
Secretary
Brad Dornish
412-765-2726
[email protected]
A,O,U,W,X
Chuck Pupich
412-302-2131
[email protected]
B,C,N,O,V,X
Nancy Worst
412-331-8595
[email protected] T
Steve Powanda
412-276-6974
[email protected]
C,E,F,H,I,J,O,P
Board of Directors
A Tax Sales
B Owner Financing
C Rentals
D Land Contracts
E Retail (Rehab)
F Wholesale
L Income Tax Prep
H Lease Option/Rent-to-Own N Time Management
I Foreclosure/Sheriff Sales
O Business Ownership
J Finding/Selling Properties
P Financing
K Accounting
Q Note Buying
R Financial Planning
B,C,D,E,F,H,J,O,P,Q
S Computer/Software
T Realtor
U Legal
V Property Management
W Asset Protection
X Business Plan
The Real Estate Investor
Board Member’s Message
(Continued from page 2)
the loss payee. If you don’t receive these items you may not be
fully protected from future problems.
What happens if my
buyer doesn’t pay? You get to
keep the down payment, all the
monthly payments and get the
property back. The bad part is
mortgages in the state of Pennsylvania must be foreclosed on to reclaim the property. This is a judicial process and is very slow. So,
when I hold a mortgage I ask myself the following questions before I do the deal. In the event of
default would I want to own the
property again for what I have in
it, plus the cost of foreclosure,
and assuming that it will be beat
up when I get it back? If the answer is yes, then I do the deal.
There are certain things I do to
make my mortgage as strong as
possible. First, it should be done
by a real estate attorney. You
wouldn’t go to a foot doctor for
brain surgery. Why would you go
to a divorce attorney for real estate work? With this in mind you
need to know what should be in
your mortgage. Don’t assume it
will get in there if you don’t ask
to have it put in, and by all means
read the final document.
Here are a few of the
things I have put in my mortgages.
1) Due on sale clause –
allows you to call the
loan due if the property is transferred
2) Collection clause –
allows a third party to
collect payments for
you
ACRE of Pittsburgh, Inc.
May Details Worth Mentioning
Renewal Memberships. Please be
sure to show your name badge to
someone at the desk. If you do not
have one, we will issue a name
badge after checking your paid
status. Members paid to May 31,
2015 or later are asked to renew
their membership at this time,
$129.00 for an individual and
$39.00 for an associate IF YOU
RENEW PRIOR TO YOUR PAIDTO DATE. Renew after your due
-date at $139. Please be prepared
to renew at the monthly meeting,
online or by mail. If you have
email, you should be receiving reminders to renew. GUESTS may
attend their first meeting free.
Subsequent meetings attended by
GUESTS, as well as any previous
member who has not paid their
dues, must pay a $25 fee.
Last Minute Changes/Updates.
Call our toll-free number at 1-888-4
ACRE40 the day of a meeting or
seminar to see if we have any last
minute change or with questions
regarding the newsletter,
membership or registrations. Call
to verify a workshop is still being
held. We may have to cancel if we
do not have enough preregistrations.
Remember, ALL
workshops and seminars can be registered online at the Calendar of
Events.
PROA, our state association, can
give you access to Credit Checks
for possible tenants. Call or email
Jeff Kasmer for your PROA ID.
You can also list your properties for
rent on a state wide basis as well as
on our website on the Classifieds
Tab.
Their website is
www.PROAssoc.org. With your
PROA ID, you can also sign up for
credit checks of potential tenants.
Vendors are asked to email Jeff a
copy of their ad in a picture format.
(Continued on page 6)
Page 3
Welcome
New Members
April
Matthew Homerosky Jeff Hartzell
Mattt Kisasonak
Jim Fraps
Tamera Smith
Tom Brooks
ACRE is a member of
National REIA
National Real Estate
Investors Association
ACRE is a proud member of
Pennsylvania Residential
Owners Association
(PROA)
www.PROAssoc.org
ACRE of Pittsburgh
John
Smith
]]]]]]]]]]]]]
Please remember to bring your
name badge to the monthly meeting and workshops/seminars. If
you lose it, a new one will be made
for $10.00.
Page 4
ACRE of Pittsburgh, Inc.
The Real Estate Investor
The Real Estate Investor
ACRE of Pittsburgh, Inc.
Page 5
Page 6
The Massive Benefits of
Your REIA Group
(Continued from page 1)
The clubs are not usually free and
there is a charge per meeting or on an
annual basis. I highly recommend
becoming a member. The $200 you
spend will be well worth it. Where
else can you get all these benefits in
one place? It is a totally deductible
expense as well.
Some of the associations have websites packed with great information.
Some have on-line bulletin boards as
well. This is another great source for
info or for advertising deals. Some of
the websites are for members only.
Most meetings will also have a
speaker, usually a national speaker.
These are gurus who come to town to
teach you about their particular real
estate investing specialty and to offer
you their home study course. The
speakers vary widely but we find that
we always get a few great ideas from
each one and it is well worth listening to them. If you resent being sold
to, get over it. They are there to make
money and they have given you free
advice and inspiration in return for
being able to pitch you. There is
nothing wrong with that. Especially if
you walk away with a great idea.
We will often buy their courses if we
think it will give us great ideas that
we can apply in our own business.
Most of the courses that we’ve
bought we’ve made the money back
many times over from the great ideas
that the courses taught us.
Buying courses is fine as long as you
plan to read them and put the ideas
into action. Don’t fall into ‘analysis
paralysis’. You won’t make your
money back by letting it sit on the
shelf unread and unused.
ACRE of Pittsburgh, Inc.
Tom Zeeb has been featured by
CNBC, The Washington Post,
Kiplinger's Magazine, The Washington Examiner, Financial Lifeline Radio and National Real Estate Investors Association's Magazine among others. He is the
President of Traction REIA, the
Recipient of the National REIA
"Honors of Merit" and the
"Award of Excellence" for Best
Real Estate Investor Association!
Traction REIA serves Washington
DC, Northern Virginia, and
Maryland. Check out
www.TractionREIA.com and
www.TractionRealEstateMentors.
com for more information.
Board Message
(Continued from page 3)
3) Late penalty – a fee
for late payment
4) Confession of Judgment – allows you to
enter a judgment on
their behalf
5) Personal Guaranty The buyer must sign
personally
6) Assignments of rents
– allows you to collect rents while foreclosing
7) Finally be sure to get
enough down payment, it is your biggest insurance policy
against a problem.
Please be advised you
should always consult legal and
accounting professionals when
doing real estate transactions.
These are some of the things that
The Real Estate Investor
work for me. They are not intended to be legal or professional
advice. Your situation may be
different, but at least you can have
some idea of what you are trying
to accomplish.
tSteve
Powanda
The Real Estate Investor
The Basic Rules &
Concepts of Negotiation
© Tom Zeeb / TractionRealEstateMentors.com
There are some basic rules and concepts to remember when you are negotiating. I will describe these rules
and concepts so that you can get a
clear idea of what negotiating is and
what things you need to be aware of.
Remember that you are negotiating
all the time. This is true for many
aspects of your life. Therefore, even
if you are not using a specific technique, keep these basic rules and concepts in mind. They are the starting
point and framework for any negotiation.
ACRE of Pittsburgh, Inc.
them. There are other situational
pressures on them. Don’t forget
that.
Don’t always feel that there is just
pressure on you. Stop and breath,
take a step back, and look at the
situation calmly. A lot of this is
about going around the other side of
the table and thinking like them,
feeling like them and recognizing
what is going on there.
Just don’t forget that they have
pressure on them to close the deal
as well.
2. Wanting to learn negotiating
skills.
You have to want to learn this stuff.
Five Things that Make a Good Negotiator
The right state of mind is important.
As is learning the skills necessary to
success and improve. Like anything
else, there are things that you can do
to improve your mindset and skill set.
Consider these five things that make
a good negotiator:
1. Understanding that the other
side has pressure on them to do the
deal as well.
Both sides are under pressure to do
the deal. So don’t feel too intimidated. Don’t think it is just you that
needs to perform.
If you start approaching someone like
you desperately need to buy, don’t
forget that they need to sell. Some
need to sell more than others. And
some really need to sell fast.
Understand that there is pressure on
them as well. There is time pressure
on them. There is money pressure on
That sounds basic and obvious, but
many people think to themselves, “I
am a good businessman. I am a
good negotiator.” Yes, maybe. But
there is a lot you can learn and it is
going to take practice.
Commit to wanting to learn about
negotiation.
3. The desire to practice.
You need to be willing to practice
these skills.
I have a friend whom I told to study
these techniques. I recommended a
course to him and he said to me, “I
am a good negotiator already. I
know all that. I don’t need help.” I
said, “Just humor me on this one.
You are starting a new job and I
think these techniques will really do
you good.” I had once thought the
same thing myself, that I couldn’t
get any better, etc. That’s nonsense!
Everyone can get better if they
study and practice the right things.
Page 7
He did actually study the techniques.
I got an email from him a couple of
weeks later and he said, “That stuff
was awesome. I am doing so well
now.”
He negotiated 25% discounts across
the board from all the vendors he was
dealing with. He said his boss is
thrilled beyond belief and can’t believe what a great choice they made
hiring him. He applied these techniques and totally changed the dynamics of the way that his company
is doing business with other companies.
He said some of the stuff sounded
basic but you just don’t always think
about it, especially in a big picture
perspective that ties it all together.
Commit to practicing the skills it
takes to be a successful negotiator.
4. Understanding negotiating skills.
Start to think about negotiating as an
art and as a science.
It is something coherent that you can
learn and it just takes some practice.
Be wanting to learn negotiation skills
and become a better negotiator.
Practice the negotiating skills that
you learn. You will only get better
through practice.
5. Wanting to create "win/win"
negotiating situations.
I know you hear the term “win-win”
a lot and it might sound a little
cheesy, however it really does make
all the difference in the world.
Not viewing someone as the winner
and someone as the loser is one of the
(Continued on page 8)
ACRE of Pittsburgh, Inc.
Page 8
Negotiations
(Continued from page 7)
major things that separate negotiation
from high-pressure sales techniques.
High pressure sales techniques sometimes make you feel like a loser. Especially if you are the one who
forked over a lot of money for something you maybe didn’t need or really
want.
In a win-win situation, you would say
“I think I got a good deal. I got some
value out of that”. That will make a
difference in the way you are perceived by the other party and by the
business community in general. It
will make people want to refer you to
others.
-- ### -Tom Zeeb has been featured by
CNBC, The Washington Post, Kiplinger's Magazine, The Washington Examiner, Financial Lifeline Radio and
National Real Estate Investors Association's Magazine among others. He
is the President of Traction REIA, the
Recipient of the National REIA "2010
Honors of Merit" and the "2009
Award of Excellence" for Best Real
Estate Investor Association! Traction
REIA serves the Greater Washington
DC Metro Area. Check out
www.TractionREIA.com and
www.TractionRealEstateMentors.co
m for more information.
The Real Estate Investor
The Real Estate Investor
ACRE of Pittsburgh, Inc.
APPLICATION FOR MEMBERSHIP
Page 9
Date _______________________
Name ________________________________________________ Home Phone _____________________
Address ______________________________________________ Work Phone ______________________
City _______________________ State _______ Zip __________ Cell Phone _______________________
Occupation ____________________________________ E-mail _________________________________
_____ New Member $139.00 _____ Renewal Member *$129.00/139.00 _____ Spouse/Partner $39.00
Vendor Member : _____ Value $325.00 _____ Premier A $500.00 _____ Premier B $750.00
_____ Premier C $1350.00 _____ Additional Employee $25.00
(* If renew before your Paid-to-Date)
Total Amount Enclosed __________ Check Number ________
Credit Card #____________________________________ Exp. Date _______
CID # __________
I understand that the information presented in meetings of ACRE of Pittsburgh, Inc. is
of a general nature and I will not attempt to apply said general information to specific
situations without obtaining professional advice.
Signature _________________________________________________
Include payment with
application made payable
and mail to:
ACRE of Pittsburgh, Inc.
P.O. Box 17149
Pittsburgh PA 15235-0149
In consideration of the acceptance of my membership application, I waive and release any and all rights and claims
against ACRE, its officers, directors, members, and speakers for any and all damages resulting from participation in
public activities and/or utilization of information received at any function of ACRE.
Acre of Beaver County
Monthly Meeting
Fourth Tuesday, May 26. 2015
Harmony Ridge Golf Club, 7:00 pm
May Monthly Meeting
May 5, 2015. 7:00 pm
Green Tree DoubleTree Hotel
Joe Calloway, RE 360
Office
June 6. 2015
June Monthly Meeting
June 2, 2015, 7:00 pm
Green Tree DoubleTree Hotel
July Monthly Meeting
July 7, 2015, 7:00 pm
Green Tree Double Tree Hotel
Page 10
ACRE of Pittsburgh, Inc.
The Real Estate Investor
The Real Estate Investor
ACRE of Pittsburgh, Inc.
Page 11
Page 12
ACRE of Pittsburgh, Inc.
The Real Estate Investor
The Real Estate Investor
ACRE of Pittsburgh, Inc.
Page 13
ACRE of Pittsburgh, Inc.
Page 14
Vendor Index
AMBIT Energy
Arbor’s Management
Building Inspection Professionals
Budget Kitchen & Bath
CAMA Plan
CCC Holdings
Don’s Appliance
Dornish Law Offices, PC
Eble Excavating
Exchange Underwriters
Fedele Insurance
Home Depot
GEICO
Investor’s Deal LLC
Jimmy the Junkman
JMAG
Keller Williams
M & M RE Holdings LLC
Mace Property Management
Martin D. Schwartz Tax & Acctg
14
4
16
16
12
4
5
15
5
14
16
13
10
12
9
9
5
16
18
9
New Choice Home Décor
New Direction IRA
New Perspective Staging
One Source IPS
Pennwestern Capital
RE 360
ReCasa Financial
Restano’s Backflow
Scolieri Law Group, PC
Sherwin Williams
Synergy Capital, Inc
Why USA Home For U Realty
Wilke & Associates, LLP
Windows R Us
4
11
4
15
4
11
4
4
5
14
16
4
18
11
The Real Estate Investor
The Real Estate Investor
ACRE of Pittsburgh, Inc.
Page 15
Page 16
ACRE of Pittsburgh, Inc.
The Real Estate Investor
The Real Estate Investor
ACRE of Pittsburgh, Inc.
MAY MONTHLY MEETING
NOTICE 7:00 - 10:00 P.M.
Page 17
Beginner Q&A
6:30 PM
DOUBLETREE HOTEL, GREEN TREE
First Tuesday, May 5th, 2015
A. BRAINSTORMING SOLUTIONS
B. Training Tidbits & Legal Updates
C. VENDOR SPEAKER
The Home Depot
D. ANNOUNCEMENTS
E. Main Speaker
Tom Zeeb - Rapid Cash Generation, How to Make Money without
Money
Page 18
ACRE of Pittsburgh, Inc.
The Real Estate Investor
The Real Estate Investor
ACRE of Pittsburgh, Inc.
May Monthly Meeting:
 Vendor Speaker Home Depot
 Main Speakers Tom Zeeb
 Tom Zeeb Workshop, Saturday May 9, 2015
DETAILS Inside!
See You at the Next Meeting,
First Tuesday, May 5th, 2015
Page 19
An Association for Landlords & Real Estate
Investors in the Metro-Pittsburgh Area
Monthly Meetings the First Tuesday
PITTSBURGH GREEN TREE DOUBLETREE
7:00 - 10:00 PM
1-888-4 ACRE 40
Internet www.acrepgh.org
E-mail [email protected]
Website [email protected]
Officers
President
Josh Adamek
Vice President
Sharon Harkins
Secretary
Brad Dornish
Treasurer
Jeff Kasmer
Committee Chairman
Vendors
Chuck Pupich
Advanced Group
Brad Dornish
Merchandising
Steve Powanda
Programming
Meetings/Seminars Jeff Kasmer
Newsletter/Database Jeff Kasmer
ADMISSION
Current Members: Free with member ID
General Public: $25.00 per person
The Real Estate Investor
ACRE of Pittsburgh, Inc.
P.O. Box 17149
Pittsburgh, PA 15235-0149
Address Service Requested
First Class Mail
First Class
U.S. Postage
PAID
Pittsburgh, PA
Permit No. 3727