3 Strategies to Make Money Now in Real Estate Investing

Friday, June 3rd, 2011 | Bank owned, Foreclosures, Real Estate Investing, Real estate short sales, Short Sales, Wholesale properties | 1 Comment

If you want (or NEED) to make money right now, then I’m going to show you the easiest, fastest and safest way to cash your next check in real estate in as little as 30 days, and repeat that process again and again. You’ll discover three very simple and very proven ways to make $500 to $20,000 for every deal you do. The best part is you won’t need…

• Money (or have to beg others to borrow it).
• Credit (or qualify for any bank loans, whatsoever).
• Experience (this is easy, and you can start immediately).
• Time (2 to 3 hours average per deal is all it takes).

These strategies are super simple; you can do this with zero experience:

• If you can find a house with no equity– which isn’t hard to do… You can do this!
• If you can find a buyer who can’t get a bank loan– which isn’t hard to do… You can do this!
• If you can find a house headed for foreclosure – which isn’t hard to do… You can do this!
• If you can find a short sale investor in your town – which isn’t hard to do… You can do this!

And get this… You won’t EVER need to take ownership of a property (you’ll NEVER take ownership of a home if you don’t want to — you make money connecting the dots!). You can make a substantial and consistent income as a real estate investor and you’ll never need to buy or take ownership of a property. EVER!

Here’s what we know:

1. Today’s housing market and economy are a total mess.
2. There are way too many houses on the market with no equity.
3. Banks aren’t lending, even to qualified applicants.
4. The strategies for making money in real estate take too long.

So how can you and I take advantage of this real life scenario? I’ve perfected these three easy strategies you can put into action for an Instant Cash Infusion. Anyone can do this, from anywhere, with only a few hours of time each week, starting with nothing, no money, no credit – just connect buyers and sellers and you will regularly cash $500 – $20,000 checks.

The 3 Instant Cash Fusion Strategies are:

1. Convertible Equity Option Assignments

• House is paid off OR has lots of equity.
• These typically need a lot of work.
• Sign “Option Contract” for $42,000.
• Record “Notice of Option” in public record at courthouse.
• Sell your option for $47,000 to rehabbers, who are easy to find at the local foreclosure auction.
• Release Option and Collect a $5,000 “option release” fee from the new buyer.

Equity Option Assignments are simple and the easiest to explain. Here’s an example from my investor friend Justin from Cincinnati: He finds a house in probate after talking with a few attorneys. The house is in shambles. The executor says he’ll sell it for $22k. Justin finds a buyer for $32k. Justin pockets $10k without ever owning a home and without a bank involved.

2. Short Sale Option Assignments

Seller Lead:

• In default with no equity.
• Sign “Option Contract” with seller.
• Record “Notice of Option” in public record at courthouse.
• Sell your option to another short sale investor.
• Release Option and Collect a $500 – $5,000 “option release” fee.

If you can find a house in foreclosure -which isn’t hard to do, get an option on the house and then sell your option to another short sale investor in your area who is willing to wait the 4-7 months to cash the big checks – who are everywhere – you can do this and you can collect a $500 to $5,000 check in the process And the best part of all is that short sale investors are excited to have bird dogs like you bring them deals.

3. Convertible Master Lease Option Assignments – This is the one that’s most exciting to me.

Seller Lead:

• No Equity & No Default
• Remember there are 20 million of these leads out there
• Sign “Option Contract” for whatever they owe
• Record Notice of Option in public record at courthouse
• Sell your option to lease option buyer
• Buyer puts $3-5% down and makes payments
• Release Option and Collect a $3,000 – $20,000 “option release” fee
• OR
• Sandwich “Option” – Cash Now, Cash Flow, Cash Out

These strategies are super simple; you can do this with zero experience:

• If you can find a house with no equity– which isn’t hard to do… You can do this!
• If you can find a buyer who can’t get a bank loan– which isn’t hard to do… You can do this!
• If you can find a house headed for foreclosure – which isn’t hard… You can do this!
• If you can find a short sale investor in your town – which isn’t hard… You can do this!
• This works fast. You can be driving in leads for sellers and for buyers within 24 hours, and it works in almost any market
• If you’re new investor, this is your golden ticket!
• And if you have experience and need to fix your cash flow problems, here’s your answer.

Most investors are just throwing away these deals because they have little or no equity, not knowing they are hidden treasures!  To learn how you can tap into these goldmines, or to kick your own real estate investing efforts into high gear, click here .

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Tags: convertible option assignment, equity assignment, forclosures, investing, Option Contract, Real Estate Investing

Top 5 Keys to Understanding Private Lending

Friday, June 3rd, 2011 | Bank owned, Foreclosures, Pre-foreclosure, Real Estate Investing, Real estate short sales, Short Sales | 1 Comment

Private lending is the absolute key to unlocking the door to successfully completing real estate deals. Why would you want to use a private lender? You are able to get money from individuals more easily, more cheaply and on better terms than you can from institutions. In real estate, where you may only need short-term money, the door to borrowing from institutions may be locked. What do we mean by private lending? Private lenders are individuals who will loan money on a one-to-one basis, often from their retirement accounts, for various types of investments. Borrowers sometimes secure more than one loan for their projects if the first private lender is willing to make the loan but doesn‘t have enough liquid cash to provide the entire amount needed. The demand for private money outweighs the availability, unless you know how to look for it. However, you have to make sure that you are careful in how you work with private lending. If you do it wrong, you are going to screw things up and will have a host of problems and chaos.

1. Know the Lender’s Concerns – There are three main things that are important for lenders in a private lending scenario:

• They want a smooth, simple transaction – be sure you can easily and clearly explain the purpose of the loan.
• They want to make sure the principle, the amount of money they are loaning, is going to be adequately protected.
• They want to know their rate of return – a function of both points and time; their overall return after legal fees, title work and lost opportunities.

How will the principal be protected? How will the principal be paid back? What is the anticipated profit? When will that be paid? Is there enough profit to make it worthwhile for both the lender and the borrower? The lender‘s job is to ask those questions.

The lender needs to vet the borrower and make sure this deal will happen. If you as a borrower can address those concerns up front and outline the deal in detail, before the private lender even has to ask, you take a load off his or her shoulders. Prove on paper that the deal makes sense, that it will perform and that it will close.

2. Know the Title Company’s Concerns – Whether you are the borrower or the lender in any private lending transaction, think carefully about the terms and respect the people that are instituting those terms. The title company is responsible for coordinating the transfer of property and the exchange of funds, and will want:

• Money to be wired to them or brought by way of a cashier‘s check, bank check or certified funds.
• Closing instructions from the private lender.
• Escrow instructions signed by all the parties involved (how they need to execute their tasks, handle the money and what their duties and responsibilities are for each party to the transaction.) The closing instructions will come from the lender, who is indicating under what terms they‘ll release their funds so that the transaction can go forward.

3. Knowing the Attorney’s Concerns – Most of the time, the responsibility of getting the correct paperwork in place for a privately funded transaction is going to fall upon the private lender and the private lender‘s attorney. Private lenders need to make sure that they have an attorney who understands these types of transactions; they are different. Anything and everything can be negotiated, and the attorney needs to understand what was worked out between the borrower and the lender.

• Loan and Real Estate Documents – Promissory note, mortgage, deed.
• Payment Documents – Closing instructions, projected payment history, accurate payment schedule and loan history.
• Business Documents – Personal guarantee, business-to-business agreements.

5. Knowing the Private Borrower’s Concerns – All private lenders should understand the issues that borrowers have to consider. They need access to the money. They wouldn‘t be looking to borrow money if they didn‘t need it, and they generally need it relatively quickly and easily. So access to money is their first concern. Are they getting access to someone with money to loan, and is that access something that can be responsive to their needs?

• Borrowers want a smooth, simple transaction.
• The money is there and can easily be applied to the task at hand.
• Borrower’s need to understand the private lender’s terms.
• Set up a win-win situation.

6. Putting Private Money into Motion – “He who has the gold makes the rules.” Private lenders make an important contribution to real estate investing. They make it possible. If you want to make a lot of money, you need to know how a private lender fits into the mechanics of your deal.

• Understanding do’s and don’ts of advertising for private money.
• Long-term or rehab deals.
• Quick turn or “flip” deals.

Here I’ve really just touched on what is involved in private lending for real estate investing. It is an integral part of successful investing, and if you know how to navigate the world of private lending, you’ll have access to a wider range of investing opportunities.

To learn more about private lending, or to kick your own real estate investing efforts into high gear, click here .

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Tags: bank, Foreclosure, investing, private lending, private money, Real Estate Investing

8 Steps to Successful Wholesaling

Friday, June 3rd, 2011 | Bank owned, Foreclosures, Real Estate Investing, Short Sales, Wholesale properties | No Comments

Wholesaling properties is a fantastic way to get into real estate investing with little or no money. On paper, the process is simple: find a bargain property, get it under contract and sell to a bargain buyer. That buyer will either buy the property to rehab and sell, or buy the property to rehab and use as a rental. By learning how to wholesale, the new investor will learn many essential skills that are crucial to building a successful real estate investing business.

So as a wholesaler what kind of money can you make?  Remember, you’re going out getting the lead, locking up the property and then finding a buyer.  What you’re not doing is taking the risk of owning the property . . . along with the risk of rehab, managing contractors, finding tenants, or taking a risk betting on the market.  For your role in wholesaling property, you will be paid on average anywhere from $5,000 to $15,000 per transaction. Count on making about 10-20% of the value of the property you are wholesaling.  Of course, this depends on your market and the quality of the deal.  At SREC we’ve seen plenty of transactions where we made less, as well as plenty of transactions where we made more, but $5k-$15k is an accurate range.

There are eight main steps to building a successful wholesaling business:

1. Marketing – If you don’t have a plan to get a steady stream of leads month after month, then you risk falling into the same feast and famine trap that often afflicts those in the real estate business.  When investors fall into a pile of cases, they usually get so focused on what they have in hand that they stop advertising. Once those initial transactions have closed, there’s nothing to follow. You need to put a plan in place made for the market where you are going to be doing business.
2. Property Evaluation – Learn how to buy right, and you’ll have no problem getting transactions done because bargain buyers will want what you have to offer. You need to evaluate the street scene, the Seller and the property.  At times, it will be hard to stick to the numbers because you’ll want to do the best you can for the Seller.  At the same time you need to be aware that you don’t want the Seller’s problem –– the house –– to become your problem because you paid too much and have limited your exit strategies.  Buy cautiously, buy smart, and stick to your numbers.
3. Making an Offer – Making the offer is something that good investors work toward from the initial buy call. Each investor has their own way of getting the information they need to make a decision. Likewise, each investor has their own way to approach a Seller with the offer. Some are methodical in setting expectations throughout the process and will make an offer over the phone after the appointment, but only after they’ve done extensive research and have contacted potential buyers. Others like to get out to the house, meet with the owner, and do it face-to-face so that they can lock up the deal fast.  Some investors like to have their exit strategy in place before they get the house under contract, that way they can be sure to meet the expectations they have set with the Seller. Others like to lock the property up first using the contract, and then determine the exit strategy trusting that their buyers list will come through for them.
4. Negotiating – Two simple rules: 1) If you’re not embarrassed by your offer, then you’re offering too much; and 2) If you make an offer and the Seller jumps at it, you’ve probably left money on the table.  For you to be a successful real estate wholesaler, you have to leave the majority of the profit to your buyer. Your buyer is taking the risk: You need to make sure that you are helping to set up that buyer for success, not failure. Remember, when focusing on wholesaling, you’re not looking to hit home runs, but many singles, doubles and even a few triples.  The wholesale business is a volume business, so set it up accordingly
5. Securing the Contract – Some investors have been known to get the contract signed at the first appointment while others take more time and like to get the paperwork finished at their office.  There’s no rule here, it all depends on how you want to run your business.  Be sure that copies of the contracts, addendum and other associated paperwork be given to the Seller for their records. If at the first appointment the seller is willing to sign a contract for your offer price (or a slightly higher negotiated price) then by all means sign the contract at the first appointment. Then send them a copy after you get back to the office and have a chance to make copies.
6. Finding the Buyer – If you don’t have a buyer, then you don’t have a transaction . . . at least one that’s going to put money in your pocket.  If you are planning to build a business that uses wholesaling as its primary exit strategy, then you will need to cultivate a list of buyers.  Building a huge buyers list of hundreds of buyers will not happen overnight, but if you commit to networking locally and using Internet marketing strategies, you will cultivate a buyers list that you can use time and again when you have properties to sell.
7. Assigning the Contract – Another name for wholesaling is “assignment,” in that you “assign” the contract to a bargain buyer that will close on the property. Draft an addendum that protects your interest so that you can collect your fee. While you can get paid outside of closing (P.O.C.), you will want most of your assignment fees and profits to be paid out at closing off of the HUD1 from the title company as a way to avoid any misunderstandings should the deal fall out. Likewise, each buyer should be vetted.  The degree that you dive into someone else’s work is up to you. In this industry, never take anyone at face value.
8. Seller Communication – Keep the Seller informed every step of the way.  If you’ve changed your mind about wholesaling the property and instead wish to buy it to rehab and sell or keep as a rental, tell them.  Remember all they want is for the house to sell. If, as a wholesale deal you find an end buyer, tell them. If the buyer falls out, tell them.  Make sure that they have the contact information for the title company you are closing with so that they have another source to verify the information you are giving them.  You can avoid a great deal of trouble if you make a consistent effort to keep the Seller in the loop.

For those investors who focus on wholesaling properties full time, it’s a volume business. The numbers add up quickly, and if you put the right system into place, you can easily get multiple deals competed month after month. Wholesaling is a great way to learn about real estate investing while building a business that will lead into doing more sophisticated and lucrative deals.  It’s also the best way to make fast cash in real estate.  Depending on your buyers, you might be able to close transactions in as little as seven to 45 days.  Finally, understanding how to wholesale properties keeps your business agile when considering different exit strategies. The more ways you know how to make money off of every “buy” call that comes into your office, the better your chances are of building a business that supports the lifestyle you want.

To learn more about wholesaling houses, or to kick your own real estate investing efforts into high gear, click here .

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Tags: forclosures, investing, Real Estate Investing, Short Sale, wholesaling

6 Stages to Successful Property Rehabbing

Friday, June 3rd, 2011 | Foreclosures, Real Estate Investing, Real estate short sales, Wholesale properties | 6 Comments

Learning how to rehab houses gives you the best chance of building a sustainable real estate business that will open other opportunities for you. For many a successful real estate entrepreneur, rehabbing is where they cut their teeth. It’s where they gained the skills and insight necessary to build a foundation leading to other opportunities in real estate investing.

When rehabbing a house, there are six main stages of the process:

Stage 1: Pre-Construction – As soon as you close on a property, you want to get to work; after all…time is money.  Below are some basic tasks to consider –– in some cases you can complete them before the house closes:

• Secure the Property – If you’re buying properties in a tough area, board up the windows and secure the locks. Even if the property is in a nicer neighborhood, rekey the locks; you never know who had a key to the house before you bought it. Have a few keys made and put a lock box on the front door so that your team can get in and out of the house.
• Switching Utilities – Put the utilities into your name (or company name) and have the date they are turned on coincide with the closing.
• Plans & Permits – Do things the right way and get your permits (construction, plumbing, electrical) before you begin work. This is also where you really nail down your “action plan” and begin lining up materials and scheduling skilled trades to do work.
• Foundation Repair – Account for the additional work and risk by buying the property cheap –– as low as 50-60% of market value minus repairs.
• Pest Control – This is a good thing to have on your list, but not always necessary.  If you find a house full of fleas, termites or other critters…then make that call.
• Plumbing Pre-Demo – Have your plumber assess the property. Valves should be shut off, and any old appliances should be disconnected and removed.
• Electrical Pre-Demo – Unhook any appliances and fixtures that will be replaced. Any wiring that is in the path of something that will be demoed needs to be removed.
• Demolition – You need to have a good cleanup crew that is willing to go in and take on a dirty project. Once the house is cleaned out and the electrician and plumber have done their thing, begin tearing out the cabinets, walls, counters, etc., that you want to replace. Afterwards bring in a cleaning crew to sanitize, rid the house of pet odors and clean up the yard.

Stage 2: Rough Structure – Most of this work will be done above ceilings, below floors or in walls. Be on-site for as much of the work as possible, and keep a close eye on the cost of materials and labor.

• Rough Plumbing Under the House or Foundation – Rough plumbing takes place when you buy a house that either has a change of layout as part of the rehab, or you’re replacing pipes. If you buy low and have confidence in your plumber, then you should feel confident about making the repairs and turning the house for a good profit.
• Framing and Sub-floor – Remove any rotted wood. This may or may not involve structural work.  If it does, then you’ll need to have an engineer on board as a part of the process, and you’ll need permits. Typical situations involve removing sub-flooring in bathrooms and kitchens, though porches, stoops and steps are also on the list.
• Exterior Doors – Replace any doors that are damaged. Know what the codes are for exterior doors in the area of the subject property, and buy accordingly.
• Windows – Replace those windows that need replacing. This can be a money item because it’s not just the windows, but the cost of installation and the potential repairs to the walls, casing and trim. But by strategically placing new windows, you can amp up a standard rehab project.
• Siding - Consider adding siding if you’re in an area where you’ll get a good return on your money. Otherwise, paint the exterior…but do one or the other.
• Exterior Trim – Window sills, window trim, eaves, door trim, corner trim and the fascia and soffit.
• The Roof – When inspecting a roof, look for curled, faded or missing shingles. Note how many layers of roofing material are on the roof.  Ideally, two layers, maximum is acceptable. Pay attention to any weird angles that may indicate that the roof decking is rotted or slowly weakening. Work with a good roofer to get an estimate of costs to repair. Typical repairs include replacing shingles, flashing and vents.

Stage 3: Mechanical Systems – Stage 3 tasks can and will overlap with Stage 2, which leaves plenty of opportunity to lose track of what’s being done, by whom and for how much. You really need to stay on top of things, or costs can get out of hand.

• Fireplace – Get a chimney sweep in for a cleaning and an inspection.
• Rough Heating, Ventilation, and Air-Conditioning (HVAC) - Have a good HVAC specialist to check out the system – the furnace and air-conditioning unit, exhaust fans found in bathrooms, attics, kitchen, etc.
• Plumbing in Walls, Ceiling and Attic – Begin running new pipe in the walls, ceilings, etc. You’ll need to have all appropriate permits for this task. Complete any prep work for new appliances.
• Rough Electrical – Bring in your electrician to run wire and install junction boxes.  Make sure you’re using a licensed electrician and that everything is up to code.
• Insulation – Once plumbing and electrical are installed and inspections have passed, begin insulating the exterior walls.
• Concrete Work – For a driveway (or apron), walkways and patios.
• Septic – These can be an expensive nightmare…and before you even buy the house you need to have a report examining the septic system –– paid for by the seller, if possible.

Stage 4: Unfinished Surfaces – This begins the work that people can see. Just like in the other stages, you need to stay on top of scheduling and costs.

• Drywall – Hang, tape and fix any issues with the walls and ceilings.
• Garage Doors – Adding a new garage door is a great way to add curb appeal, but is not a necessity.
• Gutters – Examine whether downspouts and gutters need to be replaced.
• Wood Floor Installation – In certain situations we will refinish wood floors, especially if the house is located in a great neighborhood. Rarely will I install new wood floors, unless I am excited and sure by the potential of a project.
• Cabinetry – Line up a few choices you prefer for your kitchens and bathrooms. Go with a cabinetry company that knows what you want, and can begin managing the process early when you’re just starting the rehab.
• Interior Doors – You can either buy a pre-hung door that is attached to the jambs and has the door handle hole already drilled (along with the hinges), or buy a “blank” door and hire a carpenter to drill all the holes, etc. When installing doors, there’s a lot of trim work to be done.
• Housekeeping – If you’ve done any of the above, then you’ve created a mess of pieces, parts and dust.  Clean it all up.  Get rid of the dust and debris, and begin prepping for the paint.

Stage 5: Finished Surfaces – This is where your vision comes together to create a product that is functional and pleasing to the eye. If you’ve managed to keep track of workers, materials and expenses, then you should be on budget to begin the cosmetic changes.

• Interior and Exterior Paint – The standard paint for interior spaces is latex, which is easily washed up with water. The shinier the paint, the easier it is to clean.
• Countertops – Granite, poured concrete, engineered stone, wood, ceramic tile, solid surface, or plastic laminate.  Like every other decision you’ve made, you want the cost to be congruent with the type of rehab you are doing.
• Tile – Install tile anywhere in the house where you want it. For basic rehabs, you’ll use vinyl instead. For your standard rehabs you’ll end up using an inexpensive tile to enhance the aesthetic of the house. For a high-end house, spend the money and use high quality materials.
• Vinyl Flooring – The most common flooring used for both standard and basic rehabs…it’s cheap and easy to install.
• Final Plumbing – Make sure that everything…all the lines, pipes, valves, toilets, faucets, etc., is installed correctly.
• Final Electrical – Install the finishing touches (switches, plates, jacks, lights, smoke detectors, etc.).
• Final HVAC – Install new vents and a thermostat, or a new air-conditioning unit outside of the house.
• Finish Wood Floors – Either finishing or refinishing wood floors is the final task for this stage. Once done, you’ll want to keep traffic to a minimum as a way to avoid any unnecessary damage.

Stage 6: Final Details – In this stage, address all those details that, at times, will seem endless. Here are the small things that can add up to a fast sale at full price:

• Small Additions – There’s much you can do on a standard rehab to make it seem more appealing: 
  • Brass kick plate for the front door
  • Two-piece front doorknob
  • New knobs for the kitchen cabinets
  • New interior doorknobs or handles
  • Brass house numbers
  • New doorstops
  • New switch plates
  • New towel bars
  • New bathroom mirrors and doors (if an upgrade is necessary)

  Appliances – We’ve enjoyed consistent success using a local turn-key appliance company, or you can use Home Depot or Lowes.
  Carpet – We alternate between plush and Berber, depending on the neighborhood.The color is always neutral, and the carpet is always installed near the very end of the project so it doesn’t get soiled or damaged.
  Landscaping – For a standard rehab, clean the yard, edge the walkways, edge the flower beds, and do some basic trimming. Remove any debris.
  Final Cleaning
  Staging the House – Consider bringing a local designer (who is inexpensive) onto your team who can help accessorize the property. You don’t have to spend a lot of money to make a house attractive and inviting.
  Final List of To-Dos – The list you make after walking through the house and taking note of the few remaining items that either need to be completed or are unsatisfactory.

To learn more about how you can become a successful real estate investor and put money in your pockets now, click here – you’ll get access to tons of free training materials, videos, audios and paperwork – and kick-start your investing business.

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Tags: Foreclosure, investing, Real Estate Investing, rehabbing, wholesale

17 Traits of Successful Real Estate Investors

Friday, June 3rd, 2011 | Real Estate Investing, Real estate short sales, Short Sales | 1 Comment

If you’re reading this, then you’re either in real estate investing, or you’re contemplating jumping in.  Most do so because of one thing: Money. They’re tired of working in jobs that leave them fretting about the bills to be paid at the end of the month.  They want time to build something meaningful, to make a difference for their family, and to create something that is theirs. In real estate, there is a lot of money to be made.

Think about the last time you really accomplished something big . . . what was it?  Why were you successful?  When’s the last time you nailed something that you made happen through hard work? That’s what this article is about.  Why do some people find success, no matter how many times they crash and burn and why do others fade away? Everyone wants success, but few find it.

We’ve narrowed what defines success from failure to several major points.  Again, this is timeless information –– it’s about the essential elements that those individuals who have been consistent achievers do to accomplish their goals.

1. Don’t Run on Random – If you want to find success in business, dedicate yourself by incorporating these five steps into each day.

• Focus on your objective and create a plan
• Commitment to completing the objective 100%
• Execute the plan to complete the objective
• Monitor & Adjust
• Create a Standard Operating Procedure so it can be repeated

Create a plan, but it’s not enough to think about it, you have to put it into motion. Along the way, step out for a couple of hours each week to monitor and adjust those aspects of your plan that need improvement. Don’t constantly be reinventing procedures; figure out what works, create a system and update when needed.

2. Learn from the Best – At SREC, we offer different levels of real estate investing coaching. The top level is reserved for the best, most successful investors. They all have the traits on this list in common, so take it to heart.

3. Take Personal Responsibility – Take personal responsibility when something unexpected arises. It’s never the other person’s fault. There is always something you can do to prepare for and prevent whatever circumstances are coming. Always feel like you’re in control. With this attitude, you will never lack the ability to handle a difficult issue, no matter how unexpected.

4. Don’t Expect Failure, But Still Plan for It – Have a backup plan, after backup plan, after backup plan. Always anticipate something going wrong at each step of the process, and put a plan in place to handle it. Work smart – don’t waste time on tasks that are not revenue producing

5. Focus on Revenue Producing Activities – The only thing that generates revenue is focused action on tasks that make money.  Always write down your revenue goal. Each of our top producing coaching clients understands how much they need to make each week to hit their monthly number.

6. Write Down Your Revenue Goal – When you write something done, it seems to have sticking power. It’s a daily reminder that works to keep us accountable.

7. Be Frugal – Avoid spending money if it can be avoided. This is especially important when your business is young. Not only do you need to create revenue, you need to be profitable. If your expenses eat up all your revenue, then that’s not a successful venture for business.

8. Strong Work Ethic – People who are looking to be successful put the time in, make the sacrifices and build upon their successes.

9. Dreamers vs. Doers – You can have a dream, but if you’re a “doer” then that dream is really a goal –– not a fantasy. You know if you’re a dreamer if you’ve had many ideas, but none have ever been realized.

10. The Big Idea – Armchair warriors don’t go far.  It’s never about the BIG idea or the great idea.  It’s about execution. No matter how big your idea is, if you don’t know how to make it happen, how to bring it to life, it’s worthless.

11. Take Personal Responsibility – Take personal responsibility when you fail. With this mindset, you seldom will actually fail. Conduct yourself with confidence and do your due diligence even when you hadn’t closed your first transaction.

12. Have to Succeed – The mindset that we’ve seen our most successful clients maintain, despite whatever challenges they faced, was that they had to succeed.  They always find ways to overcome obstacles, and you need to do this, too.

13. Enjoy Facing Challenges: Don’t Run Away – Successful investors like facing challenges; they don’t back down from any sort of challenge, no matter how imposing.

14. Define Success – Understand how to deal with failure, and they value this as part of the process. No one is successful all the time; failure is a natural part of achieving success. Our top performers make an effort to learn from every mistake, and they use this new knowledge to improve their business.

15. Boundless Curiosity – Always want to be “in the know.”  Always be in a position of learning. Avoid coming across as a know-it-all expert.

16. Never Stop Growing – The minute you think you’re an expert on something and your ego comes out, you’re at the tail end of your experience. Why? You stop seeing, stop listening, and stop learning; therefore, you stop growing. You need to be able to see new opportunities so that you can react immediately.

17. Be Humble – Successful people don’t have to boast. They let their knowledge and action speak more loudly than any words.  They know that they may not have all the answers, but it’s their secret.

To learn more about becoming a successful real estate investor, or to kick your own real estate investing efforts into high gear, click here .

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Tags: goals, investing, personal growth, Real Estate Investing, Success

Even Movie Stars Get the Rehabbing Bug

Friday, April 1st, 2011 | Foreclosures, Real Estate Investing | No Comments

Check out this article about actor Jeremy Renner. “Before he was nominated for Oscars for “The Hurt Locker” and “The Town,” Renner and his business partner, actor Kristoffer Winters (who had a small role in “Locker,” plus last year’s “Fair Game”) were fixing up and flipping old houses in Hollywood and Studio City, according to the new issue of The Hollywood Reporter (on newsstands now).

In 2002, the two bought a nondescript three-bedroom 1962 home in Nichols Canyon for $659,000 and sold it less than a year later for $900,000. According to Keller Williams’ Bobbe Mitchell, the sales agent on many of their projects, Renner and Winters had a shoestring budget but transformed the house into a cozy, private abode, adding a patio and new landscaping. During those lean days, the two staged it with flat-screen TVs that had a 30-day return policy, hoping they’d sell the house before the expiration date.

Read the complete article here.

Tags: forclosures, investing

52 Different Ways to Make Money in Today’s Real Estate Market

Friday, March 18th, 2011 | Bank owned, Commercial Real Estate Investing, Foreclosures, Real Estate Investing, Real estate short sales, Short Sales, Wholesale properties | 5 Comments

Everyone knows that real estate has made more millionaires than any other industry, and that it has a low barrier to entry for a new investor. You don’t need a degree or any experience to begin. You just need a strong work ethic and a desire to learn.

And that’s where we at SREC come in. We’ve been at this for some time, nearly 7 years, and we remember what it was like to start a new business that we knew little about. It was a tough start. With so much conflicting information, the real estate landscape is littered with courses and gurus that promise untold riches if you follow their system.

What we learned is that the only real short cut is education and action — both the kind you get from being on the streets buying property, and the kind you get from working with other investors who have achieved the success that you want to experience.

What we hope to do here is give you a snapshot look at the strategies we have used to make money, no matter what the situation. I hope you see the tremendous opportunity for serious wealth accumulation, and the fun you can have by using so many different exit strategies.

Consider this a grab-bag look at all the different ways to make money with real estate, depending on the situation – there’s actually more than 52 ways included here. This is where it gets fun.

• Sheriff’s Auction (1) – This is the method banks use to take back properties in default from those homeowners who have failed to make their mortgage payments. With some research, effort and some luck, you can pick up a good property here. Once you have made your bid, put your money down, and seen the house — what’s next? Well, it depends on what you want to do. What repairs need to be made? What is the neighborhood like? Is there demand for housing? Is there employment? In answering the above questions, you can decide to do any of the following: wholesale the house to an investor or end buyer who wants it (2); rehab the house and sell (3), or keep it as a rental (4).

• Free & Clear List – This is a list for purchase that provides the names of those individuals in your market that own their properties outright. In other words, they have equity because they have owned their houses for a number of years, and have kept current with their payments. Once you have one of these houses under contract, you have a multitude of ways to make money. For instance, you can wholesale the house to an investor who will make repairs (5), or you can rehab the house and sell it yourself (6). You might decide make the repairs and rent the house (7), adding to your rental portfolio. Here’s another strategy, but it’s somewhat advanced: You can buy the house using owner financing and then sell as a lease option (8). You can also set up what’s called an equity split (9) by making an agreement with the seller on the front end that, for a discount on the house once it is rehabbed and sold, you’ll give him or her a percentage of the profit.

• Out-of-State Owner – This is very simply a list of out-of-state owners. These people may be landlords who have property out-of-state (consider all the Californians that were buying cheap residential property in the Midwest during the housing boom). They might also be individuals looking to get rid of that vacation home as a way to cut back on expenses. These individuals can be extremely motivated to sell fast once they grow tired of the care, maintenance, and general expense associated with their property.  There are two strategies to use, depending on whether the property has equity or is in default. If the house has equity, you can treat the transaction just as you would any other house with equity — wholesale (10), rehab and sell (11); rehab and rent (12); or buy using owner financing and sell as a lease option (13). If the house doesn’t have equity, then you’ll need to short sale (14) it, wholesale (15) it, rehab and sell (16) it, or keep it as a rental (17). One other option is that you could simply send the lead to another investor (18), who can pursue any of the above strategies.
• Fire-Damaged Houses – These are people looking to sell a home that has been damaged by fire. As a general rule, if you decide to take on one of these, then you need to have a crack team of contractors to back you up. Depending on the damage, it may be cheaper to knock the house down and rebuild than to make the repairs (19). That being said, for some investors, fire-damaged houses are cash cows. They like the fact that if they can get to the seller before the insurance money arrives, the seller can be instructed to pay down the mortgage, which creates equity and room for a discounted offer to be accepted. Essentially, in the above scenario, the investor can buy cheap, rehab and sell (20), rehab and rent (21), or simply wholesale (22) to someone else looking for a project. 



• Probate – This is the legal process of determining the validity of a will, paying off the debts of the estate and determining who is to receive the remainder of the estate. What this means for you as an investor is that, when targeting probate houses, you’re looking for houses that have been inherited. Such houses go to family members who don’t want them and are looking to sell, fast. They are a great way to find motivated sellers. Unfortunately, depending on the specific situations (such as if a will is involved), the house can be tied up in probate for several months and the waiting will seem to drag on forever. So what are your exit strategies here? Well, if the house has equity, you can wholesale (23), retail (24), or buy, fix and rent (25). Likewise, if it doesn’t have equity, you’ll need to go through the process of a short sale (26), and then wholesale (27); retail (28); or buy, fix, and rent (29). Or you can just act as a bird dog (30) and send the lead to another investor for a fee.
• Divorce List – People looking to get rid of a house due to a divorce can be motivated sellers. Your primary strategy when working with a property in this situation is going to be a short sale. There just aren’t too many houses that aren’t upside down these days. Besides, since financial stress is the leading cause of divorce, chances are slim that you’re going to find a house in a divorce case that has equity. That means a short sale. Once completed, you can use the strategies mentioned above to turn your hard work into pocket money.
• NOD List – The Notice of Default list includes all the names of those people in your market who are 90 days late in paying their mortgage. At this point, the lender has filed a notice of default and has begun the foreclosure process. But as a way to find motivated sellers, it can’t be beat. They may not want to sell when you first contact them, but just keep coming back (ask for permission first) and at some point, most wake up and see that losing the house is a certainty, and that they need to consider the next step. You won’t find too many houses on this list that have equity. Thus, your primary exit strategy will be to do a short sale (31). From there, you can wholesale (32), rehab and retail (33), rehab and rent (34), or whatever is appropriate here.
• Code Violations – Many cities and towns across the U.S. have empowered their building departments to inspect houses in their municipalities to make sure that they are being maintained. The inspector will assign a violation that the homeowner has to address by making the necessary repair in a specific amount of time. A house that is on this list often suggests financial distress, which usually means motivated sellers. Exit strategies for houses in this group are wide open. While most won’t have equity, you may come across a few that do. The strategy you choose depends on what you find. Wholesale them (35); buy, fix, and sell them (36); or keep them for your rental portfolio (37). For those without equity, pursue a short sale (38).

• Driving for Dollars (39)– When you’re driving around town, keep your eyes out for distressed properties. Indicators of distressed properties often include things like peeling paint, shoddy roofs, tall grass, mail at the doorstep, etc. With a little effort — either by knocking on the door to see if anyone is home, or by checking with the neighbors to see if anything is known about the house — you can get enough information to track down the owners to see if they are willing to sell. What you do for a money-making exit strategy depends on if the property has equity. If it does, by now you should know what to do: wholesale (40); buy, fix, and sell (41); or keep it as a rental (42). If there isn’t any equity, then your strategy is…? You guessed it — short sale (43).

• Tax Liens – Property owners who do not pay their property taxes often will be subject to a tax lien.  Usually, the two go hand in hand, but what you need to know is that property taxes take precedence over mortgages, which means that the city can sell the house for cheap. The reason they sell cheap is that they are just looking for enough money to cover the taxes, which should be a smaller amount than what’s owed on the mortgage. These leads can be a great opportunity for you, but you’ll also face some competition from other investors in your market. Since many of these houses won’t have equity, you’ll need to pursue a short sale (44) with the foreclosing lender in order to do anything with it.
• Bird-Dogging – This is simply the practice of providing secured leads to other real estate investors for a fee. You’re doing the leg-work. You can either sell your lists to local investors (45) for $1000 (making sure to update them monthly for continuity), or take the time to qualify the lead, set the appointment, etc., and deliver a done-for-you lead service for investors (46) willing to pay your price. As you acquire these opportunities to buy houses, you should use some of them to help you build your network of buyers — other investors, rehabbers, landlords — in your area.
• Buy the house outright as a traditional sale, take ownership of it and then resell it.
• Assignment (47) – An assignment is a good option when you have a house under contract, but for whatever reason you decide that you’d rather not buy it. Since every lead is money, you don’t want to just walk away. If you don’t want to make the buy, then another investor in your market probably will, if the contract price is low enough. This is called wholesaling. The process involves the use of an assignment form, which gives the new investor the right to buy the house for a fee that goes to you in return for you giving them your contract and pre-negotiated price.
• Back-to-Back Closing (48) – This will be an important strategy when you need to sell fast, and you don’t want to hold onto the property for more than a few days. In a back-to-back transaction, the investor (B) buys the property from the bank/seller (A) and then immediately sells to the end-buyer (C).
• FSBO – For Sale By Owner (49) – You own a property, and are looking for a buyer to sell directly to.  



• Green Light Selling System – When you use this strategy, you are using a combination of yard signs, staging, and the Internet to generate interested buyers. There is a three-phase approach we use to getting massive amounts of traffic (potential buyers) to the house.
• Wholesaling (50) – This is when you sell a property quickly to a buyer who will close quickly and accept the property in its as-is? condition — even if it needs work. Another way to think of it is being a middle man. Wholesalers buy low and sell fast with little to no work done on the property.

• REOs –These are properties that have gone through the foreclosure process and have been taken back by the bank. They are usually listed with a specific real estate agent in your area (or several) who is then responsible for selling the property.
• Short Sale – A short sale will occur when the bank agrees to take less than what is owed on the home’s mortgage. In essence, they are shorting? the loan. This gives real estate investors a wonderful opportunity to buy property for less than they otherwise could.
• Rehab (Fix and Flip) – This is when you buy, hold, rehab and sell a property (or fix and flip). The common approach for establishing what to offer the Seller is to take the After Repaired Value (ARV) of the house, multiply times 65% then subtract repairs. 



• Note Buying (51) – When you buy a note, you become the bank. It is a promise to pay. It must have a beginning date, an ending date, and a place to pay; it must state who to pay and under what terms. In real estate, you need to remember that a note is secured by a mortgage. Without a mortgage, a note is only secured by a person’s promise to pay. When you buy a note, the persons involved are normally the seller of the property (the homeowner), the seller of the note (the bank), and you as the investor looking to buy the note.
• Long Term Rental (52) – You may choose to make money by purchasing a property and then renting it, thereby acting as a landlord. This can be a profitable investment, particularly if you find tenants who will pay their rent towards the eventual purchase of the property (lease to own).

There are a lot of details surrounding each method listed in the article above – but of course there’s not time to get into that here. For more specifics, be sure to download the FREE full report.

Our goal is to give you ways to achieve complete and total financial freedom – be your own boss and control your financial future. We do this through a wide range of products and mentoring programs that can be tailored to meet your specific needs.

To learn how you can take advantage of the current housing market and put money in your pocket NOW, click here and fill in the short form  and you’ll get access to tons of free training materials about how you can get an Instant Cash Infusion, including documents, audios and videos. You don’t want to miss this!

Tags: forclosures, FREE Short Sale Stuff, investing, Real Estate Investing, Short Sale, tips

Webinar Starting Soon: Investors Coalition Election Analysis & Legislative Briefing

Thursday, November 4th, 2010 | Real Estate Investing, Real estate short sales, Short Sales | No Comments

Josh here with a super important reminder. You don’t have much time left to join this very important Webinar that Jeff Watson is hosting TONIGHT at 8pm Eastern. Jeff is going to share the latest information and analysis on the recent 2010 election AND present a briefing on the latest lobbying efforts of the Investors Coalition.

Register now!

Topics will include:

• Impact of 2010 Elections on Real Estate Investors
• Update on Short Sale Flipping Issues at Freddie Mac
• Update on GSE Reform, SAFE Act and Lender Issues
• Discussion of NEW Investor Coalition White Paper – Our Briefing Presented to Congress Proposing Various Legislative and Regulatory Changes to Make It Easier to Buy and Sell Homes
• How You Can Support This Effort

This is HUGE. This is information critical to your business that you cannot get anywhere else.

Spaces are very limited, so register immediately!

See you on the call,

Josh

Tags: fannie mae, Freddie Mac, GSE, investing, Real Estate Investing

Partner With Me And Let My Team Do All The Work!

Saturday, September 25th, 2010 | Foreclosures, Pre-foreclosure, Real Estate Investing, Real estate short sales, Short Sales | No Comments

It’s time for you to be well on your way to short sale investing success!

Check this out… Accept my offer today to get full digital access to my best selling Real Estate Millionaire System & Apprentice Partnering Program. This will not only show you the best cutting edge methods for short sale success, but will allow you to submit deals to us as our 50/50 partner. We’ll negotiate, fund, and close the transaction and SPLIT THE PROFITS with you.

I’ve removed all the risk for you to make this an easy decision. You have a full 30 days to review the system. In addition to that, I will give you a FULL REBATE after you do your first deal if you provide us with an audio or video testimonial.

Go here now and take a BIG step towards your investing success!

http://www.joshtraining.com/

Tags: Foreclosure, investing, Josh Cantwell, Real Estate Investing, Short Sale, Short Sales

This Can Change The Way You Think And Work

Thursday, September 23rd, 2010 | Foreclosures, Real Estate Investing, Real estate short sales, Short Sales | No Comments

I wanted to send you a quick reminder about tonight’s training call.

If you haven’t registered, you’re going to want to do so right now:

On the call I’ll reveal how to become my “Apprentice Partner” in your local area where you help find a deal – using my proven strategies, and my experts do all the heavy lifting to negotiate, fund, close, and sell the deal.

Then we split the upside of the deal 50/50.

I’ll also be sharing my 33 unique ways to find deals, 17 ways to sell the houses you find, and 9 ways profit. This is the very same automated system I use to cash a check from a deal every 4.2 days.

Follow these steps I share tonight and you’ll be on your way to making $5,000 in the next 30 days, and start making as much as $100,000 (or more) a month in real estate without using your money, credit and with no previous experience.

The call starts promptly TONIGHT at 8:30 PM Eastern / 5:30 PM Pacific.

Follow the link below to register:

www.webinarswithsrec.com

And you won’t want to miss out on my new “SOS” that accelerates and triples the number of deals you do each month. This is proprietary and patented stuff that you won’t see anywhere else.

See you tonight.

Josh

Tags: Foreclosure, investing, Josh Cantwell, real estate, Real Estate Investing, Short Sales, Strategic Real Estate Coach