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How Do I Know What A Property Is Worth?

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Image from Pixabay

By Tamera Aragon

In considering the price to pay for a property, the first step you must take is to know the ARV (After Repair Value), of a property. Of course there are other costs to consider in buying and selling but it all starts here…The value of the property.

Question: “How do I value the property I am interested in?”

I want to start by sharing that comps, or comparables, are regarded as the single-best tool in determining a home’s value. Comps will compare criteria from recently-sold properties in a neighborhood, such as sale price, age of house, size, and square footage and come up with an average value based on these elements.

I like to look at the last 90 days SOLDS and use ½ mile radius at most when considering comps around a property I am looking to value.

On a side note, for easy online access to the information I am sharing here anytime, go to Realty411.com where you will find a ton of other FREE tools and resources catering to real estate investors.

So… back to the original question…

Answer: COMPS! You need to use comps to come up with value. This is what the banks use to come up with how much they loan. This is what appraisers use. This is the common way to come up with base valuation of property.

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2nd Question: So the next question I get is, “Where do I find good comps?

Some of you reading this might be a REALTOR® and have easy access to comps.

However, others who are not REALTORS®, finding good comps is not so easy. And I know I hated to bother my real estate agent to have to look up comps when I am making 20+ offers a day.

2nd Answer: So here ya go…here are some free resources that will help you in getting started in valuing a property using some simple online tools.

NOTE: Most of these sites include the value of a mortgage when it goes into Foreclosure as a sale, which can make these numbers skewed from facts. Be aware of this. However, these are good starting points and can be used in your initial evaluation.

  • Most popular – Zillow – www.Zillow.com
    who owns the term, “ZESTIMATE”. You just type in the address and their
    value comes up. If you want to learn how they come up with their
    Zestimate, go here: www.zillow.com/wikipages/What-is-a-Zestimate
  • NEW – In Beta Form- Find Comps Now – www.FindCompsNow.com
    Seems to utilize Zillow yet lists the properties used to come up with
    estimate, but adds some interesting features like separating out the cash
    buyers’ purchases from those who were purchased with mortgages.
  • Offers Comps plus Property Operating Data Tool – Finest Expert
  • Connected to most MLS Services – www.Realtor.com
  • Most Comprehensive – Redfin – www.redfin.com Study showed they had 100% of all homes listed by compared to others.
  • Easy Sort feature to weed out comps that don’t apply (Foreclosures, too old, too far).Trulia – www.Trulia.com Do not just take the value shown.

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Follow these Instructions to get the best free comps from Trulia.

  1. Go to: www.Trulia.com
  2. Type in the address, city, state and if possible, the zip code for the property you need to run comps.
  3. Wait for small box on right to pop up and click on the words “view details” inside that box
  4. On this page look for tabs about one inch down – one says comparables – click on that tab
  5. On this page ignore the comps you see and scroll to the very bottom of the screen and click on the words view more comparables
  6. On this page you will see a tab for “Solds” and a tab for “For Sales”. These are the comps you want
  7. Note: This site also takes into account properties the bank has taken back at full price owed because they buy these on the court steps. Therefore, ignore the property prices that are out of line with the majority.
  8. Put properties in order of proximity by clicking the “proximity” tab and then clicking the arrow. This puts properties in order of how close they are to yours.
  9. Use the Per Square Foot price located on the right side.
  10. Average the Per Square Foot price by adding up those located a mile or less from the property and averaging the number by how many properties you added up. Example: 10 properties added up to be $1000.00
  11. Divide 10 properties by the $1000.00 total and that means the property you are researching is worth $100 psf (per square foot)
  12. Multiply this per square foot price by the square footage of your subject property.

Image from Pixabay

Again, there are many other factors to consider when looking to buy a property for investment services. (More on this topic in future blog posts.)

Are you interested in real estate investing?

Be sure to click on the link below to take advantage of many that I use in my REI biz.

On a side note, for easy online access to the information I am sharing here anytime, go to this website where you will find a ton of other FREE tools and resources catering to real estate investors.

If you have any other ideas, experiences or questions about using and finding comps, please leave me a comment below! It’s great to have the interaction and appreciate hearing from you.

TAMERA ARAGON

Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over ten million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales.

Tamera who is a noted Author, Success Trainer, Speaker and Coach, shows her passion for helping others with the seventeen websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments.

Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.

https://www.tameraaragon.com

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Key Considerations for a Successful Social Media Campaign

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Image from Pixabay

By Vista Capital Solutions

Social media advertising is an amazing way to get your marketing message in front of the people you want to see it. Its highly-targetable nature, combined with relatively low cost-per-impression make it an incredibly powerful tool for brands of all kinds and sizes. Before launching a campaign, however, it’s critical to form a smart strategy. Here are the main factors you need to consider before you put your money down.

Who is Your Audience?

Knowing who you’re targeting may seem like a social media marketing no-brainer, but far too many companies miss the opportunity to really pinpoint who they’re trying to reach. Social media allows you to serve ads to specific demos broken out by age, income, gender, and location. Drill down as deep as you can on these parameters.

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Where can You Find Them Online?

Having a social media marketing presence on every conceivable platform seems like a smart idea. In practice, it’s very difficult and expensive to maintain that level of engagement. Cross-reference your target audience with the one to three platforms they’re most likely to use and start there. You can always add more if you can manage it.

Is the Plan Consistent with Your Overall Marketing Strategy?

Brand consistency is crucial across all media platforms. Don’t trick yourself into thinking that social media marketing is any different. Use the same brand voice, marks, and style you would if you were producing a broadcast or print ad. Customize the dimensions and delivery to the platform; not the attitude and message.

Image from Pixabay

Are You Being Conversational and Engaging?

Engagement is key to successful social media presence, from organic posts to boosted or paid ads. Customers have grown to expect social media interaction with brands to feel like a one-on-one conversation with a customer service representative. That means you must plan your campaigns and posts in such a way that you can respond in a timely fashion to comments and complaints. You must also present your content in a conversational, engaging way.

Is Your Content High-Quality?

Speaking of content, don’t be misled into thinking that social media content can be lower-quality than your other forms of advertising. Are people used to seeing more amateurish content on social? Yes. Does that content convert sales? Usually not. Put your best foot forward and customize content presentation to each platform.

For best results, use these considerations as a checklist whenever you launch a new social campaign. If applied consistently, they should help you achieve great results!

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“Unlearn” What You’ve Been Taught About Money

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Please review this important webinar invitation. Thank you.

LEARN WITH STEPHANIE WALTER,
CEO OF ERBE WEALTH

Dear Investor,

It’s time for another educational and life-changing online webinar to help you reach that next level of real estate success.

In this webinar, Stephanie will teach investors to “unlearn” what most of us have been wired to think about money.

Stephanie will teach you the secrets of the wealthy investor. Plus, as special bonus for attending, you’ll get access to review case studies of some in-demand investments, which fit perfectly into her wealth philosophy.

We hope you can join us for this special LIVE webinar, see you soon.

Sincerely,

Linda Pliagas
Realty411.com

Friends Do Business with Friends

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Image from Pexels

By Dan Harkey

Business & Finance Consultant

cell 949-533-8315 email [email protected]

“Being and Time” written in 1927, best discussed the concept of authenticity, of being, and caring. Martin Heidegger, a German philosopher, is an excellent read. In Heidegger’s study, he referred to as “Dasein,” which means “Being-there.” One may interpret it as “being-ever-present.” Also, to be fixed, embedded, and immersed in the physical, literal, and tangible day-to-day world. Another good read about the development of Heidegger’s concept of authenticity is in the book, Eclipse of the Self by Michael E. Zimmerman.

In the late-1970s into the early-1980s, I developed a unique strategy and grew from a high school business teacher to one of the highest producing real estate agents between Newport Beach to San Clemente between 1978 and 1984, and later in the mid-2000s to produce up to $10-25 million per month in sales volume in the real property lending business. On a side note, I developed the business curriculum in the 1970’s for Saddleback School District in Orange County, CA. The classes included word processing/keyboarding, typing, business math, consumer education, economics, and accounting. This was pre-computer science days.

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Before 1980, I was an early adopter of cross-selling. I created a real estate brokerage, a public escrow company to close the sales, a mortgage company to originate residential and commercial real estate loans, and a general insurance agency to place the insurance policies on the purchased property. Additionally, the insurance agency placed investment property coverage, liability coverages, auto insurance, life & disability insurance. An adjunct company that I formed was a property management company to manage residential and commercial rental income property, including commercial leasing.

Effective salesmanship is a learned skill set but developing into an authentic and unique being is the treasure. Confucius and Dan say, find a man who enjoys his work, and you will find a person that will never work another day in his life.

If one’s objective in the sales business is to follow up with your few friends, the potential success will be minimal. An effective sales network starts with a few but grows into thousands and tens of thousands.

The 80/20 rule applies to the sales profession. 20% of the salespersons develop 80% of the sales. Conversely, 80% of the salespeople develop 20% of the sales and resulting profits. Successful salespersons are willing to do the heavy lifting and do tasks others refuse to do.

It will help if you start by defining your universe of possibilities. In other words, what is the maximum and broadest number of individuals or prospects that you may develop to sell your products, goods, or services? Is it 1 or 1000 or 10,000? Size matters! A salesperson’s understanding of this process may be limited by lack of experience, willingness to take the risk, or just plain lack of enthusiasm for engaging in a long- term systematic enterprise. A more straightforward explanation is that some people are just plain “lazy and irresponsible.”

Image from Pixabay

I have consulted with many eager salespersons. Yes, the size of one’s prospect lead base matters. But relationships matter more. The size of a prospect network may start with 10 or 20 but grow to 1000 or more. You may start with a smaller number but limit the number of lead potentials unless you sell multimillion-dollar products with a considerable profit margin. Two examples may be Caterpillar and airplanes. These items cost from mid five hundred to hundreds of millions of dollars.

You may want to formulate a strategy to communicate daily to develop new business leads that, hopefully, will become lasting friendships. Therein lies the process, how do you turn prospects into friendships. I do not want to suggest that you create superficial but develop friendships that are bonded by authentic caring and communication. Can you call a friend and have a general conversation and enjoy the time spent without the thought of getting something out of it?

Herein lies the struggle between the salesperson who will never or only marginally become successful and one that can develop into a master salesperson with life fulfillment in relationships with others.

Image from Pixabay

Yes, you locate a buyer; you do not create one. In other words, if you were taught that slick language, like handling the objections and then switching to assumptive close works, Fuller Brush Company and Encyclopedia Britannica may have a job for you. Also, using online tools like LinkedIn and Facebook may be effective or a complete waste of time. A new link with a new person is only the most minute beginning and introduction to developing a future relationship and eventual friendship.

To be effective, a salesperson needs a good customer relations software package (CRM) to manage prospects, memorialize conversations, histories, families, events, interests, backgrounds, and essential aspects of developing a friendship. The effective salesperson needs an email marketing system like Salesforce or MailChimp.

The more you understand your friends more the relationship will grow. They will look forward to talking with you, and you will have mutual interests. And, of course, you will enjoy talking and sharing things that are interesting to you.

Now comes the strategy of calling 10 to 25 prospects per day to become friends over time. What can you do for them? How can you assist them in accomplishing their goals? Continue the exercise until you develop so much business that you can hire assistants. Delegate as much of your job tasks to others, then get back on purpose.

Image from Pixabay

If you make your outbound calls and receive an answerphone, leave a message, then follow up with an email with a purpose message. “Just calling to catch up,” or “Just called to check if I can do anything for you or your clients,” Or “just called to share an interesting article or news segment that I read.”

A difficult part of any conversation is developing the habit of listening rather than doing most of the talking. No, I am not that interesting, no matter who told us we were. It is easy to talk about me when having conversations with others. We can all become amused about ourselves and our life histories. It is imperative to stop talking and start listening.

Developing authentic friendships that will choose to work with you will be a natural transition from acquaintance to business prospect to genuine friendship. The process requires you to learn about your friend’s background, family, and what is important to them, not about you. What can you do to improve their lives, help their client, or help them put bread on the table?

Find a person who develops enough friendship relationships to do business, and you will both have a whole and enriched life. The journey is never complete!

Developing your unique ability will create a positive magnet around you so that people will be drawn to you through developed friendships, social networking, enhancing your satisfaction, professional career, and the same for those who meet you.

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My opinions, which comes from experience:

  • 20% of the people and friends in your life give you 80% of life’s satisfaction. Conversely, 20% of the negative, disrespectful, and unreliable people will result in 80% of the dissatisfaction. Tolerating people with negative attitudes, belligerent, rude, condescending, game playing, or jealousy does not fit into a satisfying life journey. Included in this group are superficial, sycophantic, and parasitic friendships. Eliminate all these people from your life, pronto?
  • Develop a management infrastructure and support system around you. These may be employees or independent contractors. Only with a whole support staff and operational techniques and strategies can you develop into high sales volumes and consistently deliver a quality outcome. If you allow weak staff members or weak systems, this will drag you down and make you marginally effective.

Thank you for taking the time to read this article.

Dan Harkey

Dan Harkey is a contributing author to Weekly Real Estate News and is a Business & Financial Consultant. He can be contacted at 949-533-8315 or [email protected].

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.

Realty411’s Virtual Real Estate Investor Expo – Register Today

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Are you ready to take your portfolio to the next level? Or, perhaps you want to begin investing in real estate?

Well regardless of where you are in experience, Realty411 can help you reach your investing goals. Be sure to join us for our NEW VIRTUAL event on Friday, July 8th, and Saturday, July 9th, 2022.

This is the place to be for maximum education, networking and motivation. Learn more information and register at Realty411.com today!

Download our Summit Schedule:

https://joom.ag/bPed

Be sure to RSVP directly:

https://us02web.zoom.us/webinar/register/WN_D_rO78TlQwekhXxScQEAaw

Classified Ads Marketing Strategies For Investors

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Image from Pixabay

By Tamera Aragon

“Doing business without advertising is like winking at a girl in the dark. You know what you are doing, but nobody else does.” ~ Steuart Henderson Britt

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Classified ads are a good cost /effective way to reach property sellers in Pre-foreclosure, and Pre-default. Secondary niches who you will find contact you from your ads are Absentee Owners, Probate and bankruptcy. Classified ads are also good for selling any type of property.

Classified Real Estate Marketing Keys to Success:

  • Ensure that your headlines command attention and virtually DEMAND that your prospects take action.
  • You have to be UNIQUE. What do you have or do that makes you stand out from the chatter of the ever-increasing crowd?
  • Write as you speak rather than as a professional “Report Writer”.
  • Don’t sell the prevention, sell the cure. As Jay Abraham says, “Nobody wants the 1/4 inch drill. What they want is a 1/4 inch hole.”
  • Take all the risk away from a buying decision by making an IRON-CLAD guarantee & STICK to it.
  • Cover concerns and likely objections of your TARGET audience.
  • Test your copy and your advertisements before you start to roll them out on a large scale.

Remember…Suspect = Prospect = Customer = Client = Raving Fan…and maybe even a friend.

Classified Advertising Estimated Costs

Image from Pixabay

Print Ads: The costs for print classified ads are not cheap. But when we look are our ROI, (Return on Investment), this form of advertising makes us money. We spend about $800 a month which is also $10,000 a year on newspaper ads and we bring in an average of 4 deals a year netting us $100k annually. That is getting my money back 10 times!!!

Online Ads: There are many online classified ad spaces to place your ads and many are free. I always place my property on Craigslist.org and Backpage.com. To get your information out to many online advertising resources very quickly, I recommend a free service at www.postlets.com.

Print Classified Advertising Steps Involved

Here are the steps to follow in placing print classified ads:

  • Website searches: www.newspapers.com or Search the term “newspapers” by your city, state online via Google or Yahoo.
  • Personal Touch: Contact the Chamber for your niche city and ask for information on Main Newspapers and smaller Neighborhood Newspapers like the Penny Saver or Fickle Nickel; etc…and get the Name, Phone Number and Website address’s for each one.
  • Then look at the each newspaper under real estate wanted & Real Estate Finance/Services. Check out what other investors are doing.
  • Call all the newspapers and find out the following:
    • Circulation: where does the paper go and how many are delivered
    • Ask if they have any special days or sections catered to real estate. For instance, our paper is Wednesday and Sundays.
    • What is the cost for an ad you have created to run 1 week? You can work with them on making changes to the ad to get the price down.
    • Ask if they have any specials available right now. If so what?
    • Create your ad with the representative on the phone
    • Be sure and ask for proof prior to printing if at all possible.

Image from Pixabay

  • Run an ad for 1 month in the most popular print ad spaces. This will allow you to really understand what kind of response you get. You can do 1 at a time or do 2 to 3 at once (depending on how busy you want to be and your budget
  • When you get calls always do the following:
    • Answer the phone. Or if you can’t answer the phone, it would be best to use an answering service.
    • Keep track of your leads by asking where the seller saw your add
    • Also ask the seller: “What was it about my ad that made them want to call me.”
  • If you not receiving any calls it could be that the ad you placed is the reason. At this point it is best to tweak the ad a little and put it back out there.
  • Once you do the tracking for a month see which one brought in the most leads and stick with that one.
  • Repeat the process when necessary.

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Sample Classified Real Estate Ads

I bet you have these burning questions on your mind: So what actually do you advertise or How should my ad look? Here are a few sample ads that have worked for me!

SAMPLES: FOR RENT OR RENT TO OWN

*SW 215/Durango*
RENT or RENT-2-OWN
3bd/2.5ba + loft $1485mo.
Call 380-7848

Why rent when you can
RENT 2 OWN!
Bad Credit ok!
5 bedroom/2 bath
Newly Remodeled.
Granite Fireplace
Hardwood Floors
10% down/ $1495/mo.
Call Now! xxx-xxx

*SW 215/Durango*
Lease 2 Own
3bd/2.5ba + loft
$5000/down $1485/mo.
$200/mo credit towards
purchase Call 380-7848

AIRPORT *Brand New!
4/2, 1965sf, pool, park,
Tennis +upgrades, $7000
Down, $1695mo$200/mo

2725 Telegraph Ave
Lease 2 Own
3bd/1ba. Built-in pool.
$15K/down $1600/mo.
$300/mo credit towards
Purchase. Call 649-7586

2725 Telegraph Ave
Lease 2 Own
3bd/1ba. Built-in pool.
$15K/down $1600/mo.
$300/mo credit towards
purchase. Bad Credit ok.
Call 649-7586

SAMPLE: FOR SALE 100K and Under

ONLY $69K – CALL TODAY!
OWNER MUST SELL.
Fixer upper. Large Lot.
Hazelton and Fresno
in Stockton.
Make Offer. Xxx-xxxx

SAMPLE: FOR SALE 100-200K

Don’t Pass. It Won’t Last!
MUST SELL! Newly Remodeled.
4Bed 3Bath. 2 story
Covered Patio, Built in BBQ
Hardwood & Tile Floors
Otto & Estate Area
$189K or BO 209-957-6971

Don’t Pass. It Won’t Last!
MUST SELL! Newly Remodeled.
5 Bedrooms 2 Bathroom. Covered Patio.
Granite Fireplace. Hardwood Floors.
Lower Sacramento & Hammer Lane
$149K. Make an offer! Xxx-xxx

Need a home to call your Own?
4 bedroom/2 bath
Newly Remodeled.
Tile Floors, build in BBQ
Owner must sell! xxx-xxxx

SAMPLE: MARKETING YOUR BUSINESS

Image from Pixabay

Newspaper Section – Real Estate or Finance/Services

I’ll Buy or Lease Your House Within 48 Hours or Tell You Why No One Else Will
Ask for Marge xxx-xxx-xxxx
We’ll Buy Your Home Today!!!
Don’t Make Another Payment
Ask for Mark xxx-xxx-xxxx
Do You Own An Unwanted Home?
Free Consultation
Sell Today
Call Dave xxx-xxx-xxxx
Kristie Buys Houses
Immediate Debt Relief
Locally Owned and Operated
xxx-xxx-xxxx

Newspaper Section – Wanted Real Estate

Payment Assistance
We Buy and Lease Houses
Don’t Delay, Call Today
Bryson xxx-xxx-xxxx

Behind on Payments?
Need Immediate Help?
Call today for free consultation
xxx-xxx-xxxx
Area Specialist Buys Real Estate
Little or No Equity OK
Cash or Terms
Prices Quoted By Phone
Dana xxx-xxx-xxxx

Payment Assistance
We Buy and Lease Houses
Don’t Delay Call Today
Bryson xxx-xxx-xxxx

Can’t Sell Your House?
Behind on Payments
Little or No Equity?
I can Help!
Call Jordan xxx-xxx-xxxx
Free Report
How to Sell Your Home in 3 Days or Less
Any Area or Condition
AC xxx-xxx-xxxx
Real Estate Workouts
Problem Ownership is My Specialty
Call Roscoe xxx-xxx-xxxx

Corporate Leases Needed
Your Home May Qualify
Don’t Make Another Payment
Ask for Perry xxx-xxx-xxxx

Newspaper Section – Financial/Real Estate Services

Immediate Debt Relief

Stuck with a house payment you can’t afford?
Stuck with a house you no longer want?
Call Sue @ 777-444-1111

NEED TO SELL FAST?
I BUY HOUSES
CASH TERMS OR TAKE OVER PAYMENTS
RAPID DEBT RELIEF
CALL: xxx-xxxx

0 stress, 0 cost to you. Sell for cash in 72 hours.
Foreclosure OK. We can even help you move.
Husband/Wife team in CA since ’80.
Extensive references. Call John & Judy, xxx-xxxx

CASH FOR HOUSES
In 48 Hours!
Any area, price or condition
Call xxx-xxx-xxxx

Newspaper Section – Homes Wanted to Buy

Executive investor wants to buy a nice home
in a nice area on a lease purchase option.
Call Tom @ 777-444-1111

Want out? Give us a shout�
We buy houses
Phone number
Website address

Classified Ads Conclusion

These are just a few ideas that I hope will get you going in the right direction understanding the key to receiving any kind of leads is “advertising”. Important Real Estate Adverting Tip: Ads should be in the local newspaper everyday. (You cant catch any fish if your line is not in the water). Classified ads are a good inexpensive way to do just that. Spread the news!

TAMERA ARAGON

Tamera Aragon is a professional online entrepreneur and has bought and sold over 300 properties, establishing her as an expert in the real estate investing field. Since 2003, she has purchased over 10 million dollars in real estate and currently holds properties all over the world. Tamera’s focus is on the booming Foreclosure market, buying Pre-foreclosures, REOs and Short Sales. Tamera who is a noted Author, Success Trainer, Speaker & Coach, shows her passion for helping others with the 17 websites she has created and several specialized products to support fellow investors throughout the world. When Tamara is not busy running her website, she is very involved with her Fiji joint ventures and investments. Tamera Aragon is one of the few trainers and coaches who is really “doing it” successfully in today’s market. Tamera’s experience has earned her a solid reputation in the industry as well as the respect and friendship of many of the top national real estate investment and internet marketing experts. Tamera Aragon believes her success has garnered her the financial freedom to fully enjoy her marriage and spend quality time with her children.

Learn live and in real-time with Realty411. Be sure to register for our next virtual and in-person events. For all the details, please visit Realty411Expo.com or our Eventbrite landing page, CLICK HERE.