Posts
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Larry Goins
Tuesday, July 14, 2009
Tuesday, July 7, 2009
Hiring Others to Buy and Sell Houses For You
This is the section that I am really excited about. In developing my systems, I have always tried to think of things from the next level and being able to take myself out of the process. For example: If I am the only one identifying, making offers, contracting and buying and selling houses, then there are only a certain number of houses that I can buy, right? Every time I would run into a task or challenge, I would figure out a way to automate or systemize the task and make it teachable….which is why you are actually reading this. The next pages in this section, you will find all of the documentation that we use in hiring and managing acquisition managers and the properties they acquire. The most important thing that I can stress to you when hiring people to work in your investment business is to find honest, ethical and moral people so that you don’t have to worry about them building your business, contacts and funding sources, only to go out on their own and become your direct competition. The best way I can think of to do this is to have a conversation “up front” about the bigger picture. Everyone has plans, goals and dreams. They just don’t know how to go about achieving them. Most of all, people have a benevolent side and have something they either want to start or support. Whether it is helping homeless children or battered wives, I am sure there is something. You need to find out what this is for each potential employee. You never know, it may be something that you will want to support. The next important thing I want to stress is to make sure you personally know all of the processes and procedures of buying and selling property before trying to hire someone to work for you. The worse thing that could happen is that the person you hire knows more than you about closing. Also, no matter how successful you become and no matter how many people you hire, it is very important that you continue to “sign off” on any upcoming closings. You will find the form that we use in this section.
When hiring someone please make sure that you know all of your states rules, regulations and requirements for hiring and paying employees. This includes reporting and paying taxes as well. If you are thinking about hiring people as independent contractors just make sure that you know the laws and the IRS rules and test for determining whether or not a person is considered an employee or an independent contractor. The IRS has a 20 rule test and you can find it at www.IRS.gov. I have included this site for you in your internet search system bookmarks.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them.
When hiring someone please make sure that you know all of your states rules, regulations and requirements for hiring and paying employees. This includes reporting and paying taxes as well. If you are thinking about hiring people as independent contractors just make sure that you know the laws and the IRS rules and test for determining whether or not a person is considered an employee or an independent contractor. The IRS has a 20 rule test and you can find it at www.IRS.gov. I have included this site for you in your internet search system bookmarks.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them.
How to Start and Use a Database for Investing
The most important part of succeeding in your business and being able to sell your properties fast will be your database. The reason I say this is because to be able to sell your properties fast you must have ready, able and willing buyers to sell to. I have said it before that it is much easier to find a house for a buyer than it is to find a buyer for a house. Having said this, I want to share some different types of databases that you can use. We actually started out with Act! Database program and used it for several years. The only problem with this program is tying together your auto responders with Act! You will probably want to use an online database program to keep up with your contacts because an online service is usually more up to date and they have more features. Also, it is more automated than having your own computer program. For example, if you have your own program and someone wants to unsubscribe from your email list, you will have to go in manually and unsubscribe them. However, if you use an online service, when someone clicks on the link in your email to unsubscribe then it is automatic. You simply receive an email notifying you that the person has unsubscribed. Another advantage of an online system is that you can access it from anywhere and anyone’s computer. In addition to using your database with your auto responders you can email, call or direct mail them at anytime. If you have a special need for a particular property or buyer you can send out a quick email to your database. If you have a property you need to sell very fast because you are up against a deadline then you can send out an email about that too. There is no limit to the uses.
The other thing that you need to be aware of is that once you have built your database list there is a value to that list. Other people will pay you to joint venture with them to promote their products or services. For example, an investor may contact you and offer to split an assignment fee if you will send out details of a property they have under contract to your list. Is this great or what! Make sure to know your states laws on things like getting a fee for promoting a property as it may violate your state’s real estate laws. If you have built up a database and would like to do a joint venture with me promoting this course or any of our products, services or properties you can contact me at 803-831-0056 ext. 304 or send me an email to Larry@LarryGoins.com.
The database program we used before getting our own website (MyInvestorWebsite.com) was “One Shopping Cart”. There is a link for their website in your bookmarks. I think they are one of the best. Another one similar to One Shopping Cart is “A Weber”. A lot of online marketers use them as well. You cannot go wrong with either one. Both and more are in the bookmarks.
How to Build Your Database
Many of the items I have previously shared with you will be used to build your database but I am going to cover some of them again here as well as others.
Investors 1: Call every “I buy Houses” ad and sign that you see and tell them you are a wholesaler and want to add them to your database. 2: Run your own ad: “Handyman Specials, Cheap, Cash” and your phone will ring off the hook. Just tell them that you ran the ad to find some investors to buy the properties you are getting and that you will email or call with the next great deal you have. Now you can run this ad in the print newspaper but I suggest running it online on some of the FREE classified sites. You could even put in your email address instead of the phone number so you can simply add them to your database and never have to talk to them. Also if you have your own website you could just put it in the ad to send people to the site to sign themselves up automatically. 3: Join some real estate Yahoo or Google groups and email them asking for investors to sell your properties to. This is a great way to build your list fast. 4: Set up your own webpage on one of the social networking sites like “Myspace” and then invite others to become your friend that have the keywords “real estate” in their pages. There is an entire group of these sites in the bookmarks.
Realtors Every time you talk to a realtor ask them for their email address so you can “stay in touch” and buy more properties. This is all you will need to do in order to build a large list of realtors.
For Sale by Owners Every time you talk to a FSBO or see an ad on a website, call or email them and be sure to ask them if you can add them to your database to stay in touch. Also, any time you make an offer to a seller you want to get their email address so you can follow up with them as I will show you in a future chapter.
Retail Buyers The best way to build a list of retail buyers is to look online at some of the FREE classified sites that have buyers running ads. You can also run your own ad something like this: “Newly remodeled homes. Ready to move into. Payments to fit your budget. Down payment and closing cost assistance available”. Your phone will ring off the hook. Just let them know that you do not have any properties but you are going to have some soon. (this is true right?). Then you simply add them to your database. If you have a website like ours, once again you can put it in the ad so they are added to the database automatically. Another way to build your retail buyers list is to have a homebuyer’s seminar. This is very easy to do. You simply run an ad to attract attendees then follow the outline below. You can even invite others like a lender, appraiser, home inspector, etc. to speak and they will be glad to because they will also get business from the buyers.
Another advantage of having a database of vendors like these is in case you have a property where you need to get something done fast. You simply email your list of vendors to find out who can help you out. Ex: Say you have a property where the seller says they will take your offer but only if you can close in 3 days. You then need to email all of your rehab contractors and appraisers to see if they can do your inspection today or tomorrow so you can close on time. Also, if you have the cell phone number of your contact, you can simply send out a text blast to your rehab contractor or appraiser in this example and they will get your message right away. I have included in your bookmarks some sources for sending text messages.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
The other thing that you need to be aware of is that once you have built your database list there is a value to that list. Other people will pay you to joint venture with them to promote their products or services. For example, an investor may contact you and offer to split an assignment fee if you will send out details of a property they have under contract to your list. Is this great or what! Make sure to know your states laws on things like getting a fee for promoting a property as it may violate your state’s real estate laws. If you have built up a database and would like to do a joint venture with me promoting this course or any of our products, services or properties you can contact me at 803-831-0056 ext. 304 or send me an email to Larry@LarryGoins.com.
The database program we used before getting our own website (MyInvestorWebsite.com) was “One Shopping Cart”. There is a link for their website in your bookmarks. I think they are one of the best. Another one similar to One Shopping Cart is “A Weber”. A lot of online marketers use them as well. You cannot go wrong with either one. Both and more are in the bookmarks.
How to Build Your Database
Many of the items I have previously shared with you will be used to build your database but I am going to cover some of them again here as well as others.
Investors 1: Call every “I buy Houses” ad and sign that you see and tell them you are a wholesaler and want to add them to your database. 2: Run your own ad: “Handyman Specials, Cheap, Cash” and your phone will ring off the hook. Just tell them that you ran the ad to find some investors to buy the properties you are getting and that you will email or call with the next great deal you have. Now you can run this ad in the print newspaper but I suggest running it online on some of the FREE classified sites. You could even put in your email address instead of the phone number so you can simply add them to your database and never have to talk to them. Also if you have your own website you could just put it in the ad to send people to the site to sign themselves up automatically. 3: Join some real estate Yahoo or Google groups and email them asking for investors to sell your properties to. This is a great way to build your list fast. 4: Set up your own webpage on one of the social networking sites like “Myspace” and then invite others to become your friend that have the keywords “real estate” in their pages. There is an entire group of these sites in the bookmarks.
Realtors Every time you talk to a realtor ask them for their email address so you can “stay in touch” and buy more properties. This is all you will need to do in order to build a large list of realtors.
For Sale by Owners Every time you talk to a FSBO or see an ad on a website, call or email them and be sure to ask them if you can add them to your database to stay in touch. Also, any time you make an offer to a seller you want to get their email address so you can follow up with them as I will show you in a future chapter.
Retail Buyers The best way to build a list of retail buyers is to look online at some of the FREE classified sites that have buyers running ads. You can also run your own ad something like this: “Newly remodeled homes. Ready to move into. Payments to fit your budget. Down payment and closing cost assistance available”. Your phone will ring off the hook. Just let them know that you do not have any properties but you are going to have some soon. (this is true right?). Then you simply add them to your database. If you have a website like ours, once again you can put it in the ad so they are added to the database automatically. Another way to build your retail buyers list is to have a homebuyer’s seminar. This is very easy to do. You simply run an ad to attract attendees then follow the outline below. You can even invite others like a lender, appraiser, home inspector, etc. to speak and they will be glad to because they will also get business from the buyers.
Another advantage of having a database of vendors like these is in case you have a property where you need to get something done fast. You simply email your list of vendors to find out who can help you out. Ex: Say you have a property where the seller says they will take your offer but only if you can close in 3 days. You then need to email all of your rehab contractors and appraisers to see if they can do your inspection today or tomorrow so you can close on time. Also, if you have the cell phone number of your contact, you can simply send out a text blast to your rehab contractor or appraiser in this example and they will get your message right away. I have included in your bookmarks some sources for sending text messages.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
How to Set Up an Answering Service or Call Capture Service for Your Investing Business
Now with all of our marketing efforts, whether the signs or the ads in the newspaper or flyers, whatever it is; we have all the calls go to a special toll free number and it goes to an answering service. I have included an answering service script for you to give your answering service. There is no way I could create a machine to handle all of these calls that come in. I used to have them come to my cell phone and people would call and leave me a message. I would call them back, leave them a message, they would call me back and leave me message; by the time we talked, five minutes into the conversation the house is worth $150,000, they owe $145,000, they are current on their payments and they are not motivated to sell so it was a huge waste of time. So what I have done is prepared an answering service script for you to use and give to your answering service so they can ask several key questions and that way you will know the answers ahead of time and the answering service will e-mail every lead to you that called in with the answers to those key questions. Now bear in mind, some people may not answer all the questions; and that goes to show that it is very important not to ask too many questions and get too personal on the first call. But if you will ask a few key questions, that way you will know whether or not you actually need to return the phone call at all. To save lots of time and effort, I would suggest using either an answering service or a call capture service to handle the leads that come in, especially if you still have a full or part time job. The biggest difference in the two is that with the answering service the caller will always speak to a live person instead of a voice mail. With call capture, the caller’s phone number is always captured whether they leave a message or not. Also, with the call capture, you can set up multiple mailboxes and give the caller options when they call. This is great if you are buying houses as well as selling or renting. When you look at the sample scripts you will see what I mean. By using my scripts that have been proven over time, you will be able to spend your time on the leads that are truly prospects and not suspects. For example, say you get a call from a seller that has a $100,000 house, they owe $95,000 on it, they are current on the payments and they have no circumstances that force them to move very soon. This call in can simply be deleted from your email inbox and you never have to spend any time on it. WOW! What a time saver. Say this same person calls your ad but instead of the call going to an answering service or call capture number with a detailed script, they call your cell phone and leave a message. Then you have to spend time returning the call, building rapport, getting them to like and trust you and then you find out that you can’t buy their house. What a waste of time and effort. Now multiply this times ten to twenty calls a week. This also eats minutes on your cell phone! Let’s break down the benefits of each of these methods.
Answering service: The main benefit, as mentioned previously, is that the caller gets to talk to a live person. You get less hang ups with this method. If you are buying, selling and renting then you can give the answering service multiple scripts for each type of call. You need to have the service email the calls to you as they come in. This is very important. Remember that, until they get you on the phone, they will continue looking for someone to help them. If the caller could be a prospect and not just a suspect then you need to call them back right away. Remember to build rapport and get the caller to like and trust you first, and then you talk about how you can help them. I like to ask the caller, ”How can I help you?” This puts you in a position of them trying to sell you instead of the other way around. I have included not only the answering service scripts but also the script you use once you get them on the phone in this course.
Call Capture: Call capture is basically a very sophisticated voice mail system that captures the caller’s phone number when they call. It works even for non-published and caller ID blocked numbers. Is this great or what? The other great thing is that you can set up multiple mailboxes. For example, let’s say that in your message you say, “If you are calling about a house you have for sale please press 1. If you are calling about a home you saw for sale, please press 2, and if you are calling because you would like to rent one of our nice homes, please press 3.” Notice that I use the word house when I’m buying and home when I’m selling. The reason for this is that subliminally a home has more value than a house. Have you ever heard someone say, “There’s no place like house”? I don’ think so. Check out and use the proven scripts I have provided for you. I have also provided some call capture services that you can use in the list of bookmarks.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
Answering service: The main benefit, as mentioned previously, is that the caller gets to talk to a live person. You get less hang ups with this method. If you are buying, selling and renting then you can give the answering service multiple scripts for each type of call. You need to have the service email the calls to you as they come in. This is very important. Remember that, until they get you on the phone, they will continue looking for someone to help them. If the caller could be a prospect and not just a suspect then you need to call them back right away. Remember to build rapport and get the caller to like and trust you first, and then you talk about how you can help them. I like to ask the caller, ”How can I help you?” This puts you in a position of them trying to sell you instead of the other way around. I have included not only the answering service scripts but also the script you use once you get them on the phone in this course.
Call Capture: Call capture is basically a very sophisticated voice mail system that captures the caller’s phone number when they call. It works even for non-published and caller ID blocked numbers. Is this great or what? The other great thing is that you can set up multiple mailboxes. For example, let’s say that in your message you say, “If you are calling about a house you have for sale please press 1. If you are calling about a home you saw for sale, please press 2, and if you are calling because you would like to rent one of our nice homes, please press 3.” Notice that I use the word house when I’m buying and home when I’m selling. The reason for this is that subliminally a home has more value than a house. Have you ever heard someone say, “There’s no place like house”? I don’ think so. Check out and use the proven scripts I have provided for you. I have also provided some call capture services that you can use in the list of bookmarks.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
Searching for Properties Online at Lightning Speed
Setting Up Your Computer for Searching at Lightning Speed using my Ultimate Buying and Selling Machine! Internet Search System!
How to use tabbed browsing to search in half the time. Tabbed browsing basically means that you do not have to open up a whole separate window for every website that you go to. You are able to open up a group of tabs so they all load at the same time. This saves a tremendous amount of time and in this home-study course, I have included a complete set of bookmarks that can be customized to your local market so you can go to the section, for example newspapers, and it will take you to the National Directory of Newspapers where you can search and find all of your local newspapers and then bookmark in that group so you will be able to open all of those up at one time. We have about 11 different newspapers in our area that I search and I have them marked to the real estate section of the classified section of every newspaper in my market and whenever I click on that group of tabs, it opens up 11 tabs at one time and I am able to search, in about 15 minutes, the real estate classified section in 11 different newspapers in my area. I want you to go to www.Mozilla.com and download the latest version of Firefox. Once you download and install that program, you can import the bookmarks that I have included on CD-ROM for you. I have also included in the course a DVD tutorial to show you how to import your bookmarks. Once you do that then you can just go to each section and find your local access websites for each set of groups. Just to let you know, when you open your browser you will see a search bar for Google as this is the default home page for Firefox. You can change your home page anytime you want. Internet Explorers latest version also offers tabbed browsing however I like Firefox much better as it has many more features. Your bookmarks will however import into the latest version of Internet Explorer just as well.
Below is a sample of the Internet Search System Bookmarks I have included in your Ultimate Buying and Selling Machine! In the actual bookmarks I take you directly to the exact page you need to go to instead of having to look throughout the entire site to find the specific page you are looking for. Please remember that many websites change their web page locations and sometimes you will go to a dead link. If that happens, simply go to the home page by looking at the webpage listed in the address bar. From there you can locate the page you are looking for and then bookmark it.
Ultimate Buying and Selling Machine! Search System Bookmarks
1031 Tax Deferred Exchanges
Answering Services/Call Capture
Appraisal/Comparable Sales
Auctions
Bandit Signs
Bank Owned Properties
Bookmark Add-Ons
Building Materials
Commercial Real Estate
County GIS Sites
Database/Auto-Responders
Direct Mail List/Tools
Directory for Code Enforcement
Discounted Mortgages
Down Payment Assistance
Email Marketing Groups
Foreclosure Listing Services
FREE Classified Ads
FREE Credit Reports
FREE Software and more
Free Stuff/Barter
Grant Programs
Houses For Sale
Incorporating Your Business
Investor websites
List Your House For Rent
Luxury Homes
Market/Census Research
Newspapers
Outsource Labor
People Finder
Real Estate Law
Real Estate Training
Realtors
REIA Clubs
Research Resources for Investors
Self Directed IRA's
Send a File Online FREE
Social Networking Sites
Tax Information
Tax Lien Certificates/Deeds
Ultimate B and S Machine Updates
Unsecured Lines of Credit
Vendors
Funding Sources
Attorneys
Appraisers
Title Companies
Rehab Contractors
Home Inspectors
Property Insurance
Property Managers
Accountants
Business Referral Services
Wholesalers
Text Messaging Services
In the Ultimate Buying and Selling Machine course, I have included a DVD tutorial to show you how to use each of these bookmarks.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
How to use tabbed browsing to search in half the time. Tabbed browsing basically means that you do not have to open up a whole separate window for every website that you go to. You are able to open up a group of tabs so they all load at the same time. This saves a tremendous amount of time and in this home-study course, I have included a complete set of bookmarks that can be customized to your local market so you can go to the section, for example newspapers, and it will take you to the National Directory of Newspapers where you can search and find all of your local newspapers and then bookmark in that group so you will be able to open all of those up at one time. We have about 11 different newspapers in our area that I search and I have them marked to the real estate section of the classified section of every newspaper in my market and whenever I click on that group of tabs, it opens up 11 tabs at one time and I am able to search, in about 15 minutes, the real estate classified section in 11 different newspapers in my area. I want you to go to www.Mozilla.com and download the latest version of Firefox. Once you download and install that program, you can import the bookmarks that I have included on CD-ROM for you. I have also included in the course a DVD tutorial to show you how to import your bookmarks. Once you do that then you can just go to each section and find your local access websites for each set of groups. Just to let you know, when you open your browser you will see a search bar for Google as this is the default home page for Firefox. You can change your home page anytime you want. Internet Explorers latest version also offers tabbed browsing however I like Firefox much better as it has many more features. Your bookmarks will however import into the latest version of Internet Explorer just as well.
Below is a sample of the Internet Search System Bookmarks I have included in your Ultimate Buying and Selling Machine! In the actual bookmarks I take you directly to the exact page you need to go to instead of having to look throughout the entire site to find the specific page you are looking for. Please remember that many websites change their web page locations and sometimes you will go to a dead link. If that happens, simply go to the home page by looking at the webpage listed in the address bar. From there you can locate the page you are looking for and then bookmark it.
Ultimate Buying and Selling Machine! Search System Bookmarks
1031 Tax Deferred Exchanges
Answering Services/Call Capture
Appraisal/Comparable Sales
Auctions
Bandit Signs
Bank Owned Properties
Bookmark Add-Ons
Building Materials
Commercial Real Estate
County GIS Sites
Database/Auto-Responders
Direct Mail List/Tools
Directory for Code Enforcement
Discounted Mortgages
Down Payment Assistance
Email Marketing Groups
Foreclosure Listing Services
FREE Classified Ads
FREE Credit Reports
FREE Software and more
Free Stuff/Barter
Grant Programs
Houses For Sale
Incorporating Your Business
Investor websites
List Your House For Rent
Luxury Homes
Market/Census Research
Newspapers
Outsource Labor
People Finder
Real Estate Law
Real Estate Training
Realtors
REIA Clubs
Research Resources for Investors
Self Directed IRA's
Send a File Online FREE
Social Networking Sites
Tax Information
Tax Lien Certificates/Deeds
Ultimate B and S Machine Updates
Unsecured Lines of Credit
Vendors
Funding Sources
Attorneys
Appraisers
Title Companies
Rehab Contractors
Home Inspectors
Property Insurance
Property Managers
Accountants
Business Referral Services
Wholesalers
Text Messaging Services
In the Ultimate Buying and Selling Machine course, I have included a DVD tutorial to show you how to use each of these bookmarks.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
Selling Property Fast in Today’s Market
This is the most fun part and actually the easiest part the way we do it. We are going to focus on the two fastest and easiest ways to get the most cash in the shortest period of time. These two methods are wholesaling and retailing for all cash.
Wholesaling
Most of the properties we buy we wholesale to other investors. This is probably the fastest way to get started and turn the money fast. With investors, they are buying strictly on the numbers and not on emotion. Also, with investors, you get repeat business. An investor is not just looking for one property. If you get a few investors, you can have a steady source to sell your properties to. There are a couple of things you need to keep in mind. It is very important to make sure that when you present a property to an investor, the numbers on the property are accurate. The worse thing that you could do is to fluff up the values and under estimate the repairs. You will lose your investor buyers very fast once word gets around. When you offer good deals to your investors then you will start receiving calls and emails from other investors wanting to be the first person you contact when you get the next deal. I have enclosed some of the emails that we have received from investors in an earlier section of this manual, as well as, some that we send out to our database to tell investors about a property. If you have multiple properties at one time you may want to use a form like the one I have included in this section. You can include all of the information, as well as, a picture. You also need a disclaimer in whatever flyer you send out. Feel free to use the one at the bottom of the “Wholesale Properties for Sale” form in the manual and on your forms disc. When wholesaling, you can either assign the contract or you may have to close in your name before you can resell the property. If the property is bank owned you will probably not be able to assign your contract. The banks have really tightened up by not letting the contracts be assigned. We still have a few that will let us assign but I think they only let us because they have sold houses to us in the past. The reason they have started getting strict with this is the fact that there are a lot of beginning investors that will get a property under contract with the intentions of selling it before they have to close. Because they are just starting out (and don’t have my course) and can’t get the property sold in time, they have to back out of the contract. Lenders do not like it when this happens. For this reason they have almost completely stopped letting buyers assign the contract. I have enclosed a disclaimer in the contract section that we use when we are selling to investors. This is very similar to a disclosure that some of the lenders use when selling REO properties. Since we don’t know anything about the property because we just bought it ourselves, we feel that we need to let our buyer know that and the best way to do that is in writing. Now in my market we are able to buy our properties cheap enough to be able to sell it to our investors at around 70-75% of value including repairs and closing costs. However, I know that those numbers do not work in all areas. Wherever you live or want to buy property you need to check with other investors, your real estate club leaders, etc. to find out what investors are willing to pay in your area. As an example, in a lot of areas in California investors are willing to pay 80-85% on a property. After all, in a million dollar house, if you have only 15% equity, that’s still $150,000 profit if it sells fast. Many of the items I have already taught you in this course are used for wholesaling as well as retailing, leasing and lease optioning. Therefore this section does not need to be a very long section other than to clarify what wholesaling is.
Retailing for Fast Cash
In this section, we are going to talk about retailing houses to owner occupants. You can make more money per house by retailing and also get into more creative financing strategies by accepting a second mortgage, buying the rate down, paying closing cost, etc. Because you have more profit to work with, you can be more flexible on helping your buyer qualify. The down side is that once you sell a house to someone there is not much chance that you can sell them another one. The good news is that you can get lots of referrals once you help someone become a homeowner. Have you ever lowered the price of a house you have for sale as a retail property? Hopefully, after you read this, you will never have to do that again. Did you know that for every $1,000 in price reduction of a home it only changes the payment about $6 dollars? That is not much of an incentive for a buyer if you ask me. However, if you keep the price the same and offer to pay closing costs or carry a small second mortgage, it greatly increases the number of qualified buyers that could purchase your home. I would like to suggest that before you ever put a home on the market to retail that you get an appraisal first. Let me also say that there are appraisers out there that can stretch the value but I don’t recommend going that route. I have seen many sellers that found an appraiser to stretch the value but what good does it do when the lender is going to require either a desktop review or another drive by appraisal or possibly another full appraisal? Besides, you don’t want to get a reputation with the lenders of pumping up the values of your homes, not to mention the possibilities of fraud becoming an issue. You don’t want any part of that. You want a good appraisal by a reputable appraiser. Now, once you have a good clean appraisal, you are ready to market your property and, instead of dropping the price, you offer to pay closing costs (most lenders allow up to 6% in seller concessions). This will increase the number of potential buyers that can buy your home. The realtors also like it (if there is one involved) because their commission is based on the purchase price. Another way to increase the number of buyers that can qualify for your home is to use some of the seller concessions to buy down the rate. Builders do it all the time. You can buy the rate down for the life of the loan or just for the first few years. This
makes for a lower payment and thus more buyers can qualify for your house! This one technique can save a deal. Ask your lender about this and they can tell you how much it will cost to buy down the rate on your property. You can also contact my mortgage company to help you by calling 877-LarryGoins (877-527-7946) or by visiting www.FinancialHelpServices.com.
I have included in this course the form we use when we are qualifying a retail buyer. There are many, many questions to ask the buyer. Remember, you must get them to like and trust you before you can ask too many questions. The questions on this form are very powerful. We have tried to think of every possible method a buyer could use to qualify for a loan and the get the necessary down payment. For example, many of our retail buyers have a co-signer. Many of them also have a relative that gives them all or part of the needed down payment. There are also many down payment assistance programs available, as well as first time homebuyers programs. I have included a current list of all of the down payment assistance programs I am aware of at the time of this writing. Many states have seller disclosure statements that must be filled out and given to the buyer or potential buyer when purchasing a home. I have included our state’s disclosure statement for you to see. I have also included a generic one as well. I also wanted to let you know about the lead based paint disclosure that is required when selling or renting any property built before 1978. I have included a copy of the government publication “Protect Your Family from Lead in Your Home” brochure, as well as, the disclosure. Please check with your states regulatory agency to see what disclosures are required in your area.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
Wholesaling
Most of the properties we buy we wholesale to other investors. This is probably the fastest way to get started and turn the money fast. With investors, they are buying strictly on the numbers and not on emotion. Also, with investors, you get repeat business. An investor is not just looking for one property. If you get a few investors, you can have a steady source to sell your properties to. There are a couple of things you need to keep in mind. It is very important to make sure that when you present a property to an investor, the numbers on the property are accurate. The worse thing that you could do is to fluff up the values and under estimate the repairs. You will lose your investor buyers very fast once word gets around. When you offer good deals to your investors then you will start receiving calls and emails from other investors wanting to be the first person you contact when you get the next deal. I have enclosed some of the emails that we have received from investors in an earlier section of this manual, as well as, some that we send out to our database to tell investors about a property. If you have multiple properties at one time you may want to use a form like the one I have included in this section. You can include all of the information, as well as, a picture. You also need a disclaimer in whatever flyer you send out. Feel free to use the one at the bottom of the “Wholesale Properties for Sale” form in the manual and on your forms disc. When wholesaling, you can either assign the contract or you may have to close in your name before you can resell the property. If the property is bank owned you will probably not be able to assign your contract. The banks have really tightened up by not letting the contracts be assigned. We still have a few that will let us assign but I think they only let us because they have sold houses to us in the past. The reason they have started getting strict with this is the fact that there are a lot of beginning investors that will get a property under contract with the intentions of selling it before they have to close. Because they are just starting out (and don’t have my course) and can’t get the property sold in time, they have to back out of the contract. Lenders do not like it when this happens. For this reason they have almost completely stopped letting buyers assign the contract. I have enclosed a disclaimer in the contract section that we use when we are selling to investors. This is very similar to a disclosure that some of the lenders use when selling REO properties. Since we don’t know anything about the property because we just bought it ourselves, we feel that we need to let our buyer know that and the best way to do that is in writing. Now in my market we are able to buy our properties cheap enough to be able to sell it to our investors at around 70-75% of value including repairs and closing costs. However, I know that those numbers do not work in all areas. Wherever you live or want to buy property you need to check with other investors, your real estate club leaders, etc. to find out what investors are willing to pay in your area. As an example, in a lot of areas in California investors are willing to pay 80-85% on a property. After all, in a million dollar house, if you have only 15% equity, that’s still $150,000 profit if it sells fast. Many of the items I have already taught you in this course are used for wholesaling as well as retailing, leasing and lease optioning. Therefore this section does not need to be a very long section other than to clarify what wholesaling is.
Retailing for Fast Cash
In this section, we are going to talk about retailing houses to owner occupants. You can make more money per house by retailing and also get into more creative financing strategies by accepting a second mortgage, buying the rate down, paying closing cost, etc. Because you have more profit to work with, you can be more flexible on helping your buyer qualify. The down side is that once you sell a house to someone there is not much chance that you can sell them another one. The good news is that you can get lots of referrals once you help someone become a homeowner. Have you ever lowered the price of a house you have for sale as a retail property? Hopefully, after you read this, you will never have to do that again. Did you know that for every $1,000 in price reduction of a home it only changes the payment about $6 dollars? That is not much of an incentive for a buyer if you ask me. However, if you keep the price the same and offer to pay closing costs or carry a small second mortgage, it greatly increases the number of qualified buyers that could purchase your home. I would like to suggest that before you ever put a home on the market to retail that you get an appraisal first. Let me also say that there are appraisers out there that can stretch the value but I don’t recommend going that route. I have seen many sellers that found an appraiser to stretch the value but what good does it do when the lender is going to require either a desktop review or another drive by appraisal or possibly another full appraisal? Besides, you don’t want to get a reputation with the lenders of pumping up the values of your homes, not to mention the possibilities of fraud becoming an issue. You don’t want any part of that. You want a good appraisal by a reputable appraiser. Now, once you have a good clean appraisal, you are ready to market your property and, instead of dropping the price, you offer to pay closing costs (most lenders allow up to 6% in seller concessions). This will increase the number of potential buyers that can buy your home. The realtors also like it (if there is one involved) because their commission is based on the purchase price. Another way to increase the number of buyers that can qualify for your home is to use some of the seller concessions to buy down the rate. Builders do it all the time. You can buy the rate down for the life of the loan or just for the first few years. This
makes for a lower payment and thus more buyers can qualify for your house! This one technique can save a deal. Ask your lender about this and they can tell you how much it will cost to buy down the rate on your property. You can also contact my mortgage company to help you by calling 877-LarryGoins (877-527-7946) or by visiting www.FinancialHelpServices.com.
I have included in this course the form we use when we are qualifying a retail buyer. There are many, many questions to ask the buyer. Remember, you must get them to like and trust you before you can ask too many questions. The questions on this form are very powerful. We have tried to think of every possible method a buyer could use to qualify for a loan and the get the necessary down payment. For example, many of our retail buyers have a co-signer. Many of them also have a relative that gives them all or part of the needed down payment. There are also many down payment assistance programs available, as well as first time homebuyers programs. I have included a current list of all of the down payment assistance programs I am aware of at the time of this writing. Many states have seller disclosure statements that must be filled out and given to the buyer or potential buyer when purchasing a home. I have included our state’s disclosure statement for you to see. I have also included a generic one as well. I also wanted to let you know about the lead based paint disclosure that is required when selling or renting any property built before 1978. I have included a copy of the government publication “Protect Your Family from Lead in Your Home” brochure, as well as, the disclosure. Please check with your states regulatory agency to see what disclosures are required in your area.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
All the Ways to Fund Your Real Estate Deals
Buy Something at a Discount and Trade it for Real Estate: How about buying a cheap building lot at a discount (on eBay) and trading it at full retail for another property. You can do this with discounted mortgages as well although this is a little more of an advanced strategy.
Another way that I recently learned from a student is to list the buyer on the contract in the name of “Your name AND Financial Partner”. (EX: Larry Goins AND Financial Partner.) It’s almost like doing an assignment but your buyer or private lender is already on the contract. Your buyer or lender (Private Money) will just step into your shoes and close the deal. The only part you will need to work out is how you will get paid. If your buyer is either paying cash or is using private money or hard money then you can be listed on the HUD closing statement as an assignment fee. I haven’t personally used this method but as I mentioned I have a student that has so I wanted to pass it along in this update of the course.
Business Partnerships: One of the creative ways to fund your real estate deals until you can actually qualify for financing is through partnerships. We have enclosed in this course a sample partnership agreement. I would like to suggest a couple of things. First thing is if you are doing a partnership with someone; make sure you know who you are getting in partnership with. It’s one thing to do a partnership on one deal and another thing to create a partnership where you are going to buy multiple deals. I would like to suggest even if you know the person you are going into business with, treat each transaction as a separate partnership and only go in partnership with them per transaction because you never know what can happen. The other thing to remember is a partnership is like a marriage and you are tied to that person until you have dissolved that partnership or sold the property, so please keep that in mind. The other thing is a lot of people think that rehab loans or hard money or private loans are very expensive because some of them can be 12, 15 to 18% interest rate as all as anywhere from 4 to 10 points, however, I would like to suggest that if you get into a partnership, just remember, you are not only paying 15% interest rate, you are paying 50% of the profits as a general rule. The other thing that I want you to understand about partnerships, it’s always good to go into partnerships with someone who has a talent or skill that compliments what you do. For example, one person may be able to find the deals and put the deals together, find the buyer, find the seller of the property, find the buyer for the property, the other partner may be good at rehabbing properties, estimating rehabs and actually doing the work. So, find somebody that you are going to go into partners with that can compliment you, and not that two of you are doing the exact same thing. That tends to work out best just from my past experience.
Cash Partner: A cash partner is basically exactly what it sounds like. It is a partner that has and will be putting up their cash to fund the deal. This could be a relative, friend, co-worker at your day job, your boss at your day job or even your doctor or dentist. You can structure the transaction and profits any way you want. You could split 50/50 or you could offer your partner the first 10-20% of the profit. You could also offer your partner a minimum of 10% return on their cash PLUS a percentage of the profits at the end. Just remember that partners are the most expensive way to fund your deals.
Credit Partner A credit partner may not have any cash but they have good credit and can qualify for a loan to fund the property. These are easier to find than cash partners. If you use a credit partner just remember that you may have to put the property in the partners name in order to get the loan. So I would suggest that you know them well or have a good agreement in place prior to closing on the property.
Self Directed IRA: Yes, you can use your IRA to fund your deals but there are some restrictions on this. First, you have to have a self directed IRA from a custodian like Equity Trust. You can find them, and in fact, you can listen to a teleconference I did with Jeff Desich about them by going to www.BrainPickaPro.com I have had an account with them for years. They are great to work with and very well known in the real estate investing arena. Once you set up an account and either transfer an existing IRA to them or fund a new one then you can start using the money in the IRA to buy properties. Remember that when buying real estate with your self-directed IRA, you cannot have a mortgage on it unless it is a non recourse loan. These are very difficult to get so here is how we use our IRA to buy property. First you can use it when buying with an option. You simply write on the contract “Equity Trust FBO Your name” as the buyer or one optioning the property. In fact, the custodian will show you what to do. Then your IRA will send the funds to the seller’s attorney or whoever is holding the option money. Then when you sell the option to another investor and collect your fee it goes right back into your IRA totally tax deferred or tax free depending on whether you have a traditional IRA or a Roth IRA. This works great if you only have a small amount of money in your IRA and this is also a great way to build your IRA fast. Here is another way to buy in your IRA. If you are buying a property you can assign, and do not have to close, you buy it in the name of your IRA, and then assign the contract to another investor The money you used for a deposit comes from the IRA, and the money you make when you assign it, goes back into your IRA as well. This is a great way to take a small amount of money and build it to a large IRA account.
Unsecured Lines of Credit: Depending on the amount of your line of credit, you can use them for down payments, and even to buy complete properties. In the bookmarks, I have included a complete list of sources that cater to business offering unsecured lines of credit. Some offer business credit cards. You could apply for these in your name or find a partner to use their credit to apply. Also, when you set up your business entity whether it is a corporation or LLC, you will get mail from credit sources offering you unsecured lines of credit. Some will be the same I have provided but hopefully you will be offered other sources as well. I have included in your bookmarks a complete listing of business unsecured lines of credit sources.
Hard Money/Rehab Loans: "Hard Money" loans or "rehab loans", as they are sometimes called, refer to non-conventional real estate loans. They are usually funded by private money sources and specialty lenders. Interest rates and points on such loans are usually higher. Terms usually range from 3 to 12 months. Hard Money loans have one basic requirement. There has to be some substantial equity in the property to give the lender a reason to invest their funds in an otherwise risky venture. The property to be purchased might be presently vacant and in need of repairs. It may be older property in a failing neighborhood which has the potential for revitalization. It may be a foreclosure and can be purchased on a short sale. Or you may just need a quick closing to secure a property before you find an investor/rehabber to which you want to wholesale the property to. Or you may want to purchase a rundown piece of property, rehab the property, and refinance it for rental income. In all these cases, you would need a hard money loan because conventional financing is just not an option or it would take too long to secure. "Hard Money" is just a cost of doing business and an effective method of doing business as a real estate investor. We loan money in most areas to people who buy houses, fix them up, and sell them or refinance them to rent out. We work very hard to fund quickly so that you can demand large discounts from your sellers. We normally lend on single-family, multi-family residential houses, condos and some commercial. We do not lend on mobile homes. Our program is designed for people who can buy right, fix a property up quickly, and then get it re-sold or refinanced. There are three easy steps to our loan process: submit an application to get pre-approved, find a property and get it under contract and send us the information, prepare a cost estimate for repairs and then we process and close the loan. You can fill out an application at www.FinancialHelpServices.com. For most Lenders, closing costs are four (4) to ten (10) points plus other costs associated with any other loan closing such as attorney’s fees, processing fee, recording fees, taxes and insurance for the year, etc. These fees typically run about $2250.00 plus the points. This is however just an estimate. The costs involved may include pro-rating of taxes, insurance and interim interest. Although the term of the loan is twelve (12) months, there is usually a renewal fee of two (2) points of the loan balance that is added to the total balance if the loan is not paid off in ninety (90) days and every ninety (90) days thereafter. Most of the loans are paid off within sixty (60) days.
We can loan up to seventy (70) percent of the after repaired value. If you are buying right, you could get in for no money down, however, you cannot get cash out of a hard money rehab loan. In many instances, no money down loans are available. As long as the loan to value, including purchase price, rehab and closing cost does not exceed seventy (70) percent, you can acquire the property for no money out of your pocket. You must however have reserves to satisfy the underwriters, usually six (6) months. You cannot get cash out of a hard money rehab loan. If you would like to get pre approved so you can make all cash offers just go to www.FinancialHelpServices.com.
Traditional Financing: After rehabbing a property or just owning it for a while, most investors want to refinance out of the hard money or rehab loan. Some may just want to refinance a property to pull cash out of it. Whatever the reason, there is no minimum time that you must own the property with many of our lenders and they don't care if no work was needed. The things they do tend to care about are how long the seller owned the house and how much they made if their time on title was less than 90 days. Lenders want to see less than 10% of the after repaired value as the seller's profit. They also don't like to see the word "assignment" on a HUD from your purchase and they will ask to see it at your refinance. They don't want to see that you have been trying the sell the property on MLS since you have owned it and most require that it be unlisted for the previous 6-12 months. We recommend to our clients to refinance no higher than 80% of the appraised value. This avoids mortgage insurance, insures a quick exit strategy if you need to sell quickly for whatever reason and will most likely offer a cash flow from rent payments. Some clients will go higher to get cash to buy new properties, are getting a tremendous amount of rent or maybe they are just in the deal too high to do any less. Whatever the reason, you can refinance up to 100%, if you qualify. Before you refinance, you should have a game plan for the house, how long you intend to keep it, what is happening in the neighborhood. If you would like to learn more about the different types of funding available then you can visit our site at www.FinancialHelpServices.com. We make loans to Investors, homeowners and homebuyers to purchase, refinance and even consolidate bills in all 50 states.
Seller Financing: Another good source to fund your deals is to get the seller to finance it for you. Now this will not work all of the time or even most of the time as it takes a special situation to make this work. One of the things you always want to ask the seller is “what will you do if you do not sell the property” and if they say rent it out then this is a good seller finance possibility. You want to try and get the best terms possible from the seller based on what they could get as an interest rate at the bank. In fact, here is another thing you want to ask that is in your script. “What will you do with the money when you sell?” and if they say put it in the bank then compare the rate of return they will get versus you paying them a higher rate for giving you seller financing.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
Another way that I recently learned from a student is to list the buyer on the contract in the name of “Your name AND Financial Partner”. (EX: Larry Goins AND Financial Partner.) It’s almost like doing an assignment but your buyer or private lender is already on the contract. Your buyer or lender (Private Money) will just step into your shoes and close the deal. The only part you will need to work out is how you will get paid. If your buyer is either paying cash or is using private money or hard money then you can be listed on the HUD closing statement as an assignment fee. I haven’t personally used this method but as I mentioned I have a student that has so I wanted to pass it along in this update of the course.
Business Partnerships: One of the creative ways to fund your real estate deals until you can actually qualify for financing is through partnerships. We have enclosed in this course a sample partnership agreement. I would like to suggest a couple of things. First thing is if you are doing a partnership with someone; make sure you know who you are getting in partnership with. It’s one thing to do a partnership on one deal and another thing to create a partnership where you are going to buy multiple deals. I would like to suggest even if you know the person you are going into business with, treat each transaction as a separate partnership and only go in partnership with them per transaction because you never know what can happen. The other thing to remember is a partnership is like a marriage and you are tied to that person until you have dissolved that partnership or sold the property, so please keep that in mind. The other thing is a lot of people think that rehab loans or hard money or private loans are very expensive because some of them can be 12, 15 to 18% interest rate as all as anywhere from 4 to 10 points, however, I would like to suggest that if you get into a partnership, just remember, you are not only paying 15% interest rate, you are paying 50% of the profits as a general rule. The other thing that I want you to understand about partnerships, it’s always good to go into partnerships with someone who has a talent or skill that compliments what you do. For example, one person may be able to find the deals and put the deals together, find the buyer, find the seller of the property, find the buyer for the property, the other partner may be good at rehabbing properties, estimating rehabs and actually doing the work. So, find somebody that you are going to go into partners with that can compliment you, and not that two of you are doing the exact same thing. That tends to work out best just from my past experience.
Cash Partner: A cash partner is basically exactly what it sounds like. It is a partner that has and will be putting up their cash to fund the deal. This could be a relative, friend, co-worker at your day job, your boss at your day job or even your doctor or dentist. You can structure the transaction and profits any way you want. You could split 50/50 or you could offer your partner the first 10-20% of the profit. You could also offer your partner a minimum of 10% return on their cash PLUS a percentage of the profits at the end. Just remember that partners are the most expensive way to fund your deals.
Credit Partner A credit partner may not have any cash but they have good credit and can qualify for a loan to fund the property. These are easier to find than cash partners. If you use a credit partner just remember that you may have to put the property in the partners name in order to get the loan. So I would suggest that you know them well or have a good agreement in place prior to closing on the property.
Self Directed IRA: Yes, you can use your IRA to fund your deals but there are some restrictions on this. First, you have to have a self directed IRA from a custodian like Equity Trust. You can find them, and in fact, you can listen to a teleconference I did with Jeff Desich about them by going to www.BrainPickaPro.com I have had an account with them for years. They are great to work with and very well known in the real estate investing arena. Once you set up an account and either transfer an existing IRA to them or fund a new one then you can start using the money in the IRA to buy properties. Remember that when buying real estate with your self-directed IRA, you cannot have a mortgage on it unless it is a non recourse loan. These are very difficult to get so here is how we use our IRA to buy property. First you can use it when buying with an option. You simply write on the contract “Equity Trust FBO Your name” as the buyer or one optioning the property. In fact, the custodian will show you what to do. Then your IRA will send the funds to the seller’s attorney or whoever is holding the option money. Then when you sell the option to another investor and collect your fee it goes right back into your IRA totally tax deferred or tax free depending on whether you have a traditional IRA or a Roth IRA. This works great if you only have a small amount of money in your IRA and this is also a great way to build your IRA fast. Here is another way to buy in your IRA. If you are buying a property you can assign, and do not have to close, you buy it in the name of your IRA, and then assign the contract to another investor The money you used for a deposit comes from the IRA, and the money you make when you assign it, goes back into your IRA as well. This is a great way to take a small amount of money and build it to a large IRA account.
Unsecured Lines of Credit: Depending on the amount of your line of credit, you can use them for down payments, and even to buy complete properties. In the bookmarks, I have included a complete list of sources that cater to business offering unsecured lines of credit. Some offer business credit cards. You could apply for these in your name or find a partner to use their credit to apply. Also, when you set up your business entity whether it is a corporation or LLC, you will get mail from credit sources offering you unsecured lines of credit. Some will be the same I have provided but hopefully you will be offered other sources as well. I have included in your bookmarks a complete listing of business unsecured lines of credit sources.
Hard Money/Rehab Loans: "Hard Money" loans or "rehab loans", as they are sometimes called, refer to non-conventional real estate loans. They are usually funded by private money sources and specialty lenders. Interest rates and points on such loans are usually higher. Terms usually range from 3 to 12 months. Hard Money loans have one basic requirement. There has to be some substantial equity in the property to give the lender a reason to invest their funds in an otherwise risky venture. The property to be purchased might be presently vacant and in need of repairs. It may be older property in a failing neighborhood which has the potential for revitalization. It may be a foreclosure and can be purchased on a short sale. Or you may just need a quick closing to secure a property before you find an investor/rehabber to which you want to wholesale the property to. Or you may want to purchase a rundown piece of property, rehab the property, and refinance it for rental income. In all these cases, you would need a hard money loan because conventional financing is just not an option or it would take too long to secure. "Hard Money" is just a cost of doing business and an effective method of doing business as a real estate investor. We loan money in most areas to people who buy houses, fix them up, and sell them or refinance them to rent out. We work very hard to fund quickly so that you can demand large discounts from your sellers. We normally lend on single-family, multi-family residential houses, condos and some commercial. We do not lend on mobile homes. Our program is designed for people who can buy right, fix a property up quickly, and then get it re-sold or refinanced. There are three easy steps to our loan process: submit an application to get pre-approved, find a property and get it under contract and send us the information, prepare a cost estimate for repairs and then we process and close the loan. You can fill out an application at www.FinancialHelpServices.com. For most Lenders, closing costs are four (4) to ten (10) points plus other costs associated with any other loan closing such as attorney’s fees, processing fee, recording fees, taxes and insurance for the year, etc. These fees typically run about $2250.00 plus the points. This is however just an estimate. The costs involved may include pro-rating of taxes, insurance and interim interest. Although the term of the loan is twelve (12) months, there is usually a renewal fee of two (2) points of the loan balance that is added to the total balance if the loan is not paid off in ninety (90) days and every ninety (90) days thereafter. Most of the loans are paid off within sixty (60) days.
We can loan up to seventy (70) percent of the after repaired value. If you are buying right, you could get in for no money down, however, you cannot get cash out of a hard money rehab loan. In many instances, no money down loans are available. As long as the loan to value, including purchase price, rehab and closing cost does not exceed seventy (70) percent, you can acquire the property for no money out of your pocket. You must however have reserves to satisfy the underwriters, usually six (6) months. You cannot get cash out of a hard money rehab loan. If you would like to get pre approved so you can make all cash offers just go to www.FinancialHelpServices.com.
Traditional Financing: After rehabbing a property or just owning it for a while, most investors want to refinance out of the hard money or rehab loan. Some may just want to refinance a property to pull cash out of it. Whatever the reason, there is no minimum time that you must own the property with many of our lenders and they don't care if no work was needed. The things they do tend to care about are how long the seller owned the house and how much they made if their time on title was less than 90 days. Lenders want to see less than 10% of the after repaired value as the seller's profit. They also don't like to see the word "assignment" on a HUD from your purchase and they will ask to see it at your refinance. They don't want to see that you have been trying the sell the property on MLS since you have owned it and most require that it be unlisted for the previous 6-12 months. We recommend to our clients to refinance no higher than 80% of the appraised value. This avoids mortgage insurance, insures a quick exit strategy if you need to sell quickly for whatever reason and will most likely offer a cash flow from rent payments. Some clients will go higher to get cash to buy new properties, are getting a tremendous amount of rent or maybe they are just in the deal too high to do any less. Whatever the reason, you can refinance up to 100%, if you qualify. Before you refinance, you should have a game plan for the house, how long you intend to keep it, what is happening in the neighborhood. If you would like to learn more about the different types of funding available then you can visit our site at www.FinancialHelpServices.com. We make loans to Investors, homeowners and homebuyers to purchase, refinance and even consolidate bills in all 50 states.
Seller Financing: Another good source to fund your deals is to get the seller to finance it for you. Now this will not work all of the time or even most of the time as it takes a special situation to make this work. One of the things you always want to ask the seller is “what will you do if you do not sell the property” and if they say rent it out then this is a good seller finance possibility. You want to try and get the best terms possible from the seller based on what they could get as an interest rate at the bank. In fact, here is another thing you want to ask that is in your script. “What will you do with the money when you sell?” and if they say put it in the bank then compare the rate of return they will get versus you paying them a higher rate for giving you seller financing.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
How to Get All the Private Money You Will Ever Need
There is a lot of information and even courses, seminars and boot camps out there on private money and I am sure it is because private money is one of the few sources that you can generate funds for your deals without having any previous credit, cash, income, job, debt ratio or anything like that. It is really a hot area right now. Private funds are very similar to hard money or rehab loans. The only difference is, instead of going through an institution or mortgage banker or broker, you are actually looking for individuals with money that would like to lend it out at a decent rate of return.
There are many different ways to generate private funds and to find the individuals. The first one that I would like to suggest is your local Real Estate Investors Association. Just go in and find out who the players are, who is buying and selling property, and just ask all of them who are the private lenders. In fact, a lot of times individuals, as well as mortgage brokers and hard money lenders, will be venders or corporate members or corporate sponsors of your local REIA group, and that is a great way to find them as well. A lot of people suggest having seminars and luncheons to find private money. I do not tend to agree with this, although you can do it, there are courses out there that teach how to do it. Are you looking for houses or are you looking for money? You really want to be looking for houses. So you want to go the fastest, cheapest, quickest way to get the funds to close your deal, so that you can concentrate on buying property and get your machine up and running.
The neat thing about private money is you do not have to be concerned about being self employed, what your debt ratio is, your credit or your experience, because the investor is basically investing their money in the property itself and with you standing behind the deal. The other neat thing about private money is once you have two or three individuals that are loaning you private money and getting a good return on their funds, these people tend to go in the same circles, so you are going to have other people contact you about loaning out their money to you at a good rate of return. That is really a neat thing, once you get to that point. In order to attract private money in the beginning, you are going to need a credibility kit or at least some information on who you are and what you have done, copies of deals you have done, copies of HUDs, where you have bought and sold property. If you have not done that, you need to team up with somebody and get a couple of deals under your belt, so you can build your credibility kit pretty fast, so you can actually show people deals you have done, how much you have made on the deal to show them that you are in business and you can keep their money safe while earning a good rate of return. Most private money lenders will allow you to borrow their money with interest only payments. Some will even allow you to make quarterly payments or annual payments. They are not generally going to be longer than 12 months though, because they do want to get their money back and turn it, as you want to be able to refinance the property and payoff the private lender or you also want to be able to put the property on the market and sell it, to pay off the private lender to get a track record going so you can turn around and borrow the money again.
Another way you can use a private lender is to just borrow the money for a twenty four hour period. You will do this when you need to close on a property to resell to your buyer the same day. You could offer your private lender around two percent of the loan amount for the use of their funds for one day. This is a good deal for you and for your private lender. As an example, if you needed $100,000 to close on the property then you could pay the private lender $2,000 for the use of the money.
There are a lot of different places to find private money lenders. You can look for referrals from people that are in CDs, investment advisor referrals, CPA referrals, attorney referrals, friends, and neighbors, people you go to church with, anybody you know that may have some cash or a portfolio that they would like to get a better rate of return on. The other area as well, is a lot of people like to invest their IRA money. You can get a self directed IRA at a company like EnTrust or Equity Trust and they can invest their money with you, loaning it out, secured by a Deed of Trust or a mortgage and get a rate of return that is greater than what they are getting in the stock market or mutual funds and it is in their IRA as well. It is called a self directed IRA. A lot of people target this market, specifically looking for people that have IRA money, but are not getting the kind of return that they would like. I have included in your book marks the websites for self directed IRA’s. Another way you might find private lenders is to buy a list of investors. You could buy a list from different list companies, like Dunn and Bradstreet or you could also get a list of subscribers to certain publications like the Wall Street Journal or Money Magazine or Smart Money Magazine. You can even separate those out into regional areas, which would be close by to you and you can mail them out a letter or postcard.
One of the most successful ways to find private lenders fast, and not a lot of people will tell you this, is to ask around your real estate club and in your investing community and some of the attorneys that are doing a lot of real estate closings, to find out who is using private money. Once you find out who is using private money, all you have to do is search the courthouse records and find out who the lenders are on their deals and there are your private lenders in your area. Then all you have to do is contact them and see if they would like to also become one of your private lenders. This is the best and quickest way I know of to be able to get private money. Here is another quick way to find private money from almost everyone you meet. Every time you meet someone new or see someone (even at the gas pumps or in the store or elevator, etc.) you simply ask them what they do for a living. Then when they reply and say for example “I’m an engineer” they will always ask you what you do for a living at that time. Then you simply reply and say; “I help engineers become wealthy investing in real estate”. Then this opens the door for you to tell them about what you do and how they can invest passively with you and earn a good rate of return. What a great idea and it is a very simple idea as well. Remember, private money can be exciting. You do not have to go to banks. You do not have to qualify. But, also remember, you are not just looking for private money, you are looking for houses.
Some Private Money Lenders are just as expensive as Hard Money Lenders, if not more. Just because someone calls themselves a Private Lender doesn’t mean it will cost you less than other sources like hard money. If you would like to learn more about how to raise private money you can listen to me interview the private lending expert Alan Cowgill at www.BrainPickaPro.com.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
There are many different ways to generate private funds and to find the individuals. The first one that I would like to suggest is your local Real Estate Investors Association. Just go in and find out who the players are, who is buying and selling property, and just ask all of them who are the private lenders. In fact, a lot of times individuals, as well as mortgage brokers and hard money lenders, will be venders or corporate members or corporate sponsors of your local REIA group, and that is a great way to find them as well. A lot of people suggest having seminars and luncheons to find private money. I do not tend to agree with this, although you can do it, there are courses out there that teach how to do it. Are you looking for houses or are you looking for money? You really want to be looking for houses. So you want to go the fastest, cheapest, quickest way to get the funds to close your deal, so that you can concentrate on buying property and get your machine up and running.
The neat thing about private money is you do not have to be concerned about being self employed, what your debt ratio is, your credit or your experience, because the investor is basically investing their money in the property itself and with you standing behind the deal. The other neat thing about private money is once you have two or three individuals that are loaning you private money and getting a good return on their funds, these people tend to go in the same circles, so you are going to have other people contact you about loaning out their money to you at a good rate of return. That is really a neat thing, once you get to that point. In order to attract private money in the beginning, you are going to need a credibility kit or at least some information on who you are and what you have done, copies of deals you have done, copies of HUDs, where you have bought and sold property. If you have not done that, you need to team up with somebody and get a couple of deals under your belt, so you can build your credibility kit pretty fast, so you can actually show people deals you have done, how much you have made on the deal to show them that you are in business and you can keep their money safe while earning a good rate of return. Most private money lenders will allow you to borrow their money with interest only payments. Some will even allow you to make quarterly payments or annual payments. They are not generally going to be longer than 12 months though, because they do want to get their money back and turn it, as you want to be able to refinance the property and payoff the private lender or you also want to be able to put the property on the market and sell it, to pay off the private lender to get a track record going so you can turn around and borrow the money again.
Another way you can use a private lender is to just borrow the money for a twenty four hour period. You will do this when you need to close on a property to resell to your buyer the same day. You could offer your private lender around two percent of the loan amount for the use of their funds for one day. This is a good deal for you and for your private lender. As an example, if you needed $100,000 to close on the property then you could pay the private lender $2,000 for the use of the money.
There are a lot of different places to find private money lenders. You can look for referrals from people that are in CDs, investment advisor referrals, CPA referrals, attorney referrals, friends, and neighbors, people you go to church with, anybody you know that may have some cash or a portfolio that they would like to get a better rate of return on. The other area as well, is a lot of people like to invest their IRA money. You can get a self directed IRA at a company like EnTrust or Equity Trust and they can invest their money with you, loaning it out, secured by a Deed of Trust or a mortgage and get a rate of return that is greater than what they are getting in the stock market or mutual funds and it is in their IRA as well. It is called a self directed IRA. A lot of people target this market, specifically looking for people that have IRA money, but are not getting the kind of return that they would like. I have included in your book marks the websites for self directed IRA’s. Another way you might find private lenders is to buy a list of investors. You could buy a list from different list companies, like Dunn and Bradstreet or you could also get a list of subscribers to certain publications like the Wall Street Journal or Money Magazine or Smart Money Magazine. You can even separate those out into regional areas, which would be close by to you and you can mail them out a letter or postcard.
One of the most successful ways to find private lenders fast, and not a lot of people will tell you this, is to ask around your real estate club and in your investing community and some of the attorneys that are doing a lot of real estate closings, to find out who is using private money. Once you find out who is using private money, all you have to do is search the courthouse records and find out who the lenders are on their deals and there are your private lenders in your area. Then all you have to do is contact them and see if they would like to also become one of your private lenders. This is the best and quickest way I know of to be able to get private money. Here is another quick way to find private money from almost everyone you meet. Every time you meet someone new or see someone (even at the gas pumps or in the store or elevator, etc.) you simply ask them what they do for a living. Then when they reply and say for example “I’m an engineer” they will always ask you what you do for a living at that time. Then you simply reply and say; “I help engineers become wealthy investing in real estate”. Then this opens the door for you to tell them about what you do and how they can invest passively with you and earn a good rate of return. What a great idea and it is a very simple idea as well. Remember, private money can be exciting. You do not have to go to banks. You do not have to qualify. But, also remember, you are not just looking for private money, you are looking for houses.
Some Private Money Lenders are just as expensive as Hard Money Lenders, if not more. Just because someone calls themselves a Private Lender doesn’t mean it will cost you less than other sources like hard money. If you would like to learn more about how to raise private money you can listen to me interview the private lending expert Alan Cowgill at www.BrainPickaPro.com.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
Different Ways to Close on a Deal
There are many ways to close a deal. I am going to share some with you and in the order of the easiest to the most difficult. You will probably not use all of these but it is good to know the ways so you will simply have more tools in your tool box and not miss a deal when it comes along.
1. Assignment of Contract: The first and easiest way is to do an assignment. I have enclosed an assignment form in this course for you to use. You will not be able to do an assignment on every deal. Some sellers, especially banks or lenders and most realtors, will not allow you to put an assignment clause in the contract. A lot of wholesalers use this method so they do not have to pay two sets of closing costs or come up with financing for the property. An assignment is where you do not buy and sell the property but you simply assign your existing contract to another person who is stepping into your shoes and completes the contract. So whatever terms you negotiated with the seller then the person you assign to has to abide by those terms as well.
2. Assignment of Beneficial Interest: This is a way to assign a non assignable contract. If your realtor or seller will not let you assign the contract and you know this in advance, you can simply create a trust with you being the beneficiary and then you assign the beneficial interest in the trust. The name stays the same on the contract and doesn‟t change but you have to list the buyer in the contract as the trust. This course is not a course on trust or asset protection. However, you can learn a lot about them by going to www.BrainPickaPro.com and listen to a teleconference with author Pat Tarr on trusts.
3. Subject To: This is where you buy a property with the existing financing in place and basically continue making payments on the seller’s mortgage. I am not a big fan of this method and rarely use it. The reason I am not a big fan is that anyone can get a property “subject to” by simply talking the seller into deeding the property to you and then you will continue to make payments. I have seen many new investors who focused on getting the deed and then either couldn’t sell the property or couldn’t find a tenant and had to go back to the seller and give them their property back. Many states have enacted laws to protect consumers against investors who buy a property “subject to”. Make sure to check your states local laws regarding this or any other type of transaction. If I ever use it, I only use it as a short term solution to the closing and to help the seller. Here is an example of a “subject to” deal I did. The last subject to deal I did was where I purchased a house from a single mom who was months behind in her mortgage. She wanted to sell it but also wanted to be able to buy another house in the future. I purchased her house “subject to”, caught up the back payments, continued making her payments on time for six months and then paid it off. Now what do you think that did to her credit score from where it was when I met her? Yes, it went up dramatically. There are many more things you can learn about doing a subject to deal and in fact you can listen to author Don Derosa and I talk about them at www.BrainPickaPro.com.
4. Options: Options are another way to close a transaction. In an option you really do not have a contract on the property but an option to buy the property at a certain price and for a certain length of time. The money you give the seller as option money is non refundable as it is the price you are paying for the option itself. You can then decide if you want to exercise the option or not. That is up to you. The good news is if you do not have your option sold to a buyer who will actually close on buying the property then you can simply let the option expire. In this type of transaction you also will not need any more cash than the price of the option, but remember the option money is non refundable so you can’t get it back either way.
You will be limited to the amount of sellers you can use an option with. Most realtors do not want to submit options as they want an actual contract on the property and do not want to have to take the property off of the market during the option period. The best types of properties or sellers to use an option with are for sale by owners. I have included an option agreement for you below and on the forms disc.
5. Simultaneous Closing: This is like having two closings back to back but your buyer will fund your purchase. You are closing in your name but you do not have to bring any funds to the closing. Not every attorney or title company will allow you to do a simultaneous closing. You will just have to ask your attorney or title company if they do these types of transactions. They will know what you are talking about. You can also ask fellow investors at your investors club meeting, or the leaders of the club as well. Many problems that arise in a closing come from this type of transaction. The reason is that if you do not have your own funds to close and something happens to your buyer then you can’t close and your seller will be upset, maybe to the point of suing you for specific performance. That’s why you need clause number three in my contracts section. Just be careful if you use this method.
6. Physically Closing: This last way is where you actually buy and fund the property either with cash or financing. This is the most expensive as you are also paying two sets of closing cost just like in a simultaneous closing. With this method you need to have your funding lined up in advance so you can close regardless of what happens to your buyer. Remember that even though you are closing and buying the property you don’t have to use your money as you will see next.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
1. Assignment of Contract: The first and easiest way is to do an assignment. I have enclosed an assignment form in this course for you to use. You will not be able to do an assignment on every deal. Some sellers, especially banks or lenders and most realtors, will not allow you to put an assignment clause in the contract. A lot of wholesalers use this method so they do not have to pay two sets of closing costs or come up with financing for the property. An assignment is where you do not buy and sell the property but you simply assign your existing contract to another person who is stepping into your shoes and completes the contract. So whatever terms you negotiated with the seller then the person you assign to has to abide by those terms as well.
2. Assignment of Beneficial Interest: This is a way to assign a non assignable contract. If your realtor or seller will not let you assign the contract and you know this in advance, you can simply create a trust with you being the beneficiary and then you assign the beneficial interest in the trust. The name stays the same on the contract and doesn‟t change but you have to list the buyer in the contract as the trust. This course is not a course on trust or asset protection. However, you can learn a lot about them by going to www.BrainPickaPro.com and listen to a teleconference with author Pat Tarr on trusts.
3. Subject To: This is where you buy a property with the existing financing in place and basically continue making payments on the seller’s mortgage. I am not a big fan of this method and rarely use it. The reason I am not a big fan is that anyone can get a property “subject to” by simply talking the seller into deeding the property to you and then you will continue to make payments. I have seen many new investors who focused on getting the deed and then either couldn’t sell the property or couldn’t find a tenant and had to go back to the seller and give them their property back. Many states have enacted laws to protect consumers against investors who buy a property “subject to”. Make sure to check your states local laws regarding this or any other type of transaction. If I ever use it, I only use it as a short term solution to the closing and to help the seller. Here is an example of a “subject to” deal I did. The last subject to deal I did was where I purchased a house from a single mom who was months behind in her mortgage. She wanted to sell it but also wanted to be able to buy another house in the future. I purchased her house “subject to”, caught up the back payments, continued making her payments on time for six months and then paid it off. Now what do you think that did to her credit score from where it was when I met her? Yes, it went up dramatically. There are many more things you can learn about doing a subject to deal and in fact you can listen to author Don Derosa and I talk about them at www.BrainPickaPro.com.
4. Options: Options are another way to close a transaction. In an option you really do not have a contract on the property but an option to buy the property at a certain price and for a certain length of time. The money you give the seller as option money is non refundable as it is the price you are paying for the option itself. You can then decide if you want to exercise the option or not. That is up to you. The good news is if you do not have your option sold to a buyer who will actually close on buying the property then you can simply let the option expire. In this type of transaction you also will not need any more cash than the price of the option, but remember the option money is non refundable so you can’t get it back either way.
You will be limited to the amount of sellers you can use an option with. Most realtors do not want to submit options as they want an actual contract on the property and do not want to have to take the property off of the market during the option period. The best types of properties or sellers to use an option with are for sale by owners. I have included an option agreement for you below and on the forms disc.
5. Simultaneous Closing: This is like having two closings back to back but your buyer will fund your purchase. You are closing in your name but you do not have to bring any funds to the closing. Not every attorney or title company will allow you to do a simultaneous closing. You will just have to ask your attorney or title company if they do these types of transactions. They will know what you are talking about. You can also ask fellow investors at your investors club meeting, or the leaders of the club as well. Many problems that arise in a closing come from this type of transaction. The reason is that if you do not have your own funds to close and something happens to your buyer then you can’t close and your seller will be upset, maybe to the point of suing you for specific performance. That’s why you need clause number three in my contracts section. Just be careful if you use this method.
6. Physically Closing: This last way is where you actually buy and fund the property either with cash or financing. This is the most expensive as you are also paying two sets of closing cost just like in a simultaneous closing. With this method you need to have your funding lined up in advance so you can close regardless of what happens to your buyer. Remember that even though you are closing and buying the property you don’t have to use your money as you will see next.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
All About Title Searches
Conducting a title search prior to transfer of real estate property involves searching for every available record or document that relates to present and prior ownership of the property in question with the goal of clearly defining the current status of the property title. In layman's terms, we want to be sure that the property being sold truly and completely belong to the seller and that he or she has the legal right to transfer ownership of the property. Records searched will include public and court records, property tax records, deeds, mortgages, wills, judgments, divorce decrees, liens, claims, and other legal proceedings or findings. Any defects found in the title to the property, will have to be cleared or otherwise dealt with prior to transferring ownership. If title has been searched and cleared prior to the sale of a property, then why is there a need for title insurance? Even the most thorough title search may fail to find certain risks, which due to their nature, are "hidden" and not necessarily documented. These could include such situations as:
Errors in property boundaries due to inaccurate surveys
Claims made by heretofore missing heirs
Mistakes in probating or interpreting previous wills
Legal documents executed under fraudulent power or attorney
Clerical errors in recording legal documents
False personations and/or forgeries
Claims not documented in the public or court records
Hidden risks such as these make title insurance a necessary and wise one-time investment. If at some future time, a claim is made against your property due to one of these hidden risks, your title insurance policy will cover the costs of a legal defense. If the claim is upheld by the court, the policy will reimburse you for all or part of the actual loss, depending on the value of the policy.
In the case of refinances, most state law requires that the lender secure a Mortgagee’s Policy of Title Insurance. This policy guarantees the lender that a new mortgage will be the first and only mortgage on the property, and that all prior mortgages and liens have been paid in full and satisfied. This policy is generally paid for by the person refinancing as part of the closing costs. The attorney or title company closing your transaction will handle the title search but you can also perform one as well, if you want. Of course your attorney, Title Company or lender will not accept your search to close your property but you can get an idea if there are any encumbrances on the property. If you are paying cash then you will want to buy title insurance for yourself. If you are funding the closing with a lender the closing agent will provide a lenders policy and offer you a policy for an additional fee. The fee is usually at a discount since they already have a lender buying a policy also. The reason they offer you a policy is because the one the lender buys only covers the loan and loan amount. You need one to cover you and your purchase price. Don’t worry too much about title searches and insurance, as the closing attorney or Title Company will take care of all of that for you.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
Errors in property boundaries due to inaccurate surveys
Claims made by heretofore missing heirs
Mistakes in probating or interpreting previous wills
Legal documents executed under fraudulent power or attorney
Clerical errors in recording legal documents
False personations and/or forgeries
Claims not documented in the public or court records
Hidden risks such as these make title insurance a necessary and wise one-time investment. If at some future time, a claim is made against your property due to one of these hidden risks, your title insurance policy will cover the costs of a legal defense. If the claim is upheld by the court, the policy will reimburse you for all or part of the actual loss, depending on the value of the policy.
In the case of refinances, most state law requires that the lender secure a Mortgagee’s Policy of Title Insurance. This policy guarantees the lender that a new mortgage will be the first and only mortgage on the property, and that all prior mortgages and liens have been paid in full and satisfied. This policy is generally paid for by the person refinancing as part of the closing costs. The attorney or title company closing your transaction will handle the title search but you can also perform one as well, if you want. Of course your attorney, Title Company or lender will not accept your search to close your property but you can get an idea if there are any encumbrances on the property. If you are paying cash then you will want to buy title insurance for yourself. If you are funding the closing with a lender the closing agent will provide a lenders policy and offer you a policy for an additional fee. The fee is usually at a discount since they already have a lender buying a policy also. The reason they offer you a policy is because the one the lender buys only covers the loan and loan amount. You need one to cover you and your purchase price. Don’t worry too much about title searches and insurance, as the closing attorney or Title Company will take care of all of that for you.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
What’s it Really Worth, Getting Accurate Appraisals
Now once we know how much it will cost to get the home repaired then we must find out what it will be worth after the repairs are made if any are needed. We will be getting what’s called an appraisal based on the “after repaired value” or sometimes called “subject to” the improvements. Now I know there are free online services to give you comps and those are great for your preliminary due diligence but before we buy this property we want to know the true value based on an appraisal I am going to show you in a later chapter how to find just the right appraiser you can work with. You want to find one that is familiar with investment property. You also want to use one that is fairly conservative. You don’t need an appraiser fluffing up the value of your property so you can buy it only to get stuck in the property when your buyer’s lender orders their own appraisal and it comes in much lower than yours when you purchased the property. Then you are stuck with a house you over paid for. I am including a copy of an appraisal form on the following page for you to look at so you can become familiar with what they look like and how to read one.
Brokers Price Opinion
On the next page you will find a copy of a Brokers Price Opinion (BPO). This is the form that the realtors use when contacted by the banks to give them an estimate of the value of the property. By having this you will know what the brokers look for and therefore you will be able to negotiate better deals when you find discrepancies in the information presented to the bank by the realtor.
How to Read an Appraisal Quick and Easy
I want to also share with you a quick and easy method when looking at an appraisal to determine whether or not your lender or underwriter will have a problem with the appraisal. I learned this from an appraisal class. Here is what you do. When you get an appraisal on a property you are trying to buy, I want you to look at all of the pictures in it. Look at the subject property and all of the comps or comparable sales. Then pick out the house you would LEAST want to live in and if there is a noticeable difference and it is YOUR house then the underwriter will definitely have a problem with the appraisal. After all, the definition of a comp is a comparable sale with the least amount of adjustments. Not many people know this and now you will have a jump on your competition. This is also great to use when someone is trying to sell you a property and they already have an appraisal done. Now you can take a quick look at it and determine if it is probably a good appraisal or not. Now remember this is just a quick method and is by no means a definite way to tell if you have a good appraisal. There are many things the underwriters look for such as the gross and net adjustments. Because of this, I have also included in this section a form we use in our mortgage company to check out each appraisal when it comes in. I have placed it on the next page for you. Feel free to make copies and use it on every appraisal when you get it to help you determine if you have a good appraisal or not.
Quality Control Checklist
1. Does the property address match the loan amount?
2. Has the appraiser been approved by the lender?
3. Is the appraisal based on “as is” or “subject to”(circle one).
4. Is the appraisal less than 60 days old? If no, date of
Appraisal____________________________
5. Are there front, back and street scene photos of the subject property?
6. Is the appraisal done on correct form (i.e. forms 1004,2055) was a 216 and 1007 done on subject?
7. Are the property rights appraised “fee simple”?
8. Are property values declining or is marketing time over 6 month?
SUBJECT
9. Are negative comments used in any of the comment sections?
10. Are there any land use changes that are likely to affect marketability?
11. If condo, does the developer/builder control the hoa?
12. Is acreage more than 5 acres, is property rural or is access road private? (circle all that apply)
13. Is the site value greater than 40% of the appraised value?
14. Is the value more than 25% greater or less than predominant value?
15. Is there substantial difference between actual age and effective age of subject?
16. Is there any deferred maintenance?
17. Is this a manufactured home?
18. Is the property in a FEMA flood hazard area?
19. Is zoning classification residential and compliance legal?
20. Is the land –to-value typical for the area?
Comp Analysis
21. Are any of the comp sales over 6 months old?
22. Are the comps within 1 mile of subject property?
23. Are the comps similar to subject in location, design, size, room count and amenities?
24. Does the appraised value fall between the highest and lowest comps sales price?
25. Has the subject sold within the last year?
26. Are the conditions of the comps different to subject property?
The Goins Group, LLC 134 Copyright 2005, 2007, 2008
27. Are total net adjustments 15% or more? Are total gross adjustments
25% or more? Comp #1_____%g ____%n /comp #2____%g ____%n /comp#3 ____%g ___%n
28. Are any single line adjustments 10% or more?
29. Does the sq footage of comps vary more than +/- 20%?
COMP#1___________ COMP#2____________COMP#3____________
RECONCILIATION AND ADDENDA
30. Does the appraised value support the sales price?
31. Is the appraisal signed and dated?
32. Is the appraiser‟s certification or license number entered?
33. Is there a street map that identifies the location of subject to comps?
34. Is there a building sketch?
35. Are there exterior photos of sale comps and rent comps?
This appraisal quality control checklist will help you to see what every lender will also be looking at so you will know when you have a good appraisal or not. Don’t worry if you do not understand all of these terms in the checklist. As you become more familiar with the whole process it will come together for you.
Brokers Price Opinion
On the next page you will find a copy of a Brokers Price Opinion (BPO). This is the form that the realtors use when contacted by the banks to give them an estimate of the value of the property. By having this you will know what the brokers look for and therefore you will be able to negotiate better deals when you find discrepancies in the information presented to the bank by the realtor.
How to Read an Appraisal Quick and Easy
I want to also share with you a quick and easy method when looking at an appraisal to determine whether or not your lender or underwriter will have a problem with the appraisal. I learned this from an appraisal class. Here is what you do. When you get an appraisal on a property you are trying to buy, I want you to look at all of the pictures in it. Look at the subject property and all of the comps or comparable sales. Then pick out the house you would LEAST want to live in and if there is a noticeable difference and it is YOUR house then the underwriter will definitely have a problem with the appraisal. After all, the definition of a comp is a comparable sale with the least amount of adjustments. Not many people know this and now you will have a jump on your competition. This is also great to use when someone is trying to sell you a property and they already have an appraisal done. Now you can take a quick look at it and determine if it is probably a good appraisal or not. Now remember this is just a quick method and is by no means a definite way to tell if you have a good appraisal. There are many things the underwriters look for such as the gross and net adjustments. Because of this, I have also included in this section a form we use in our mortgage company to check out each appraisal when it comes in. I have placed it on the next page for you. Feel free to make copies and use it on every appraisal when you get it to help you determine if you have a good appraisal or not.
Quality Control Checklist
1. Does the property address match the loan amount?
2. Has the appraiser been approved by the lender?
3. Is the appraisal based on “as is” or “subject to”(circle one).
4. Is the appraisal less than 60 days old? If no, date of
Appraisal____________________________
5. Are there front, back and street scene photos of the subject property?
6. Is the appraisal done on correct form (i.e. forms 1004,2055) was a 216 and 1007 done on subject?
7. Are the property rights appraised “fee simple”?
8. Are property values declining or is marketing time over 6 month?
SUBJECT
9. Are negative comments used in any of the comment sections?
10. Are there any land use changes that are likely to affect marketability?
11. If condo, does the developer/builder control the hoa?
12. Is acreage more than 5 acres, is property rural or is access road private? (circle all that apply)
13. Is the site value greater than 40% of the appraised value?
14. Is the value more than 25% greater or less than predominant value?
15. Is there substantial difference between actual age and effective age of subject?
16. Is there any deferred maintenance?
17. Is this a manufactured home?
18. Is the property in a FEMA flood hazard area?
19. Is zoning classification residential and compliance legal?
20. Is the land –to-value typical for the area?
Comp Analysis
21. Are any of the comp sales over 6 months old?
22. Are the comps within 1 mile of subject property?
23. Are the comps similar to subject in location, design, size, room count and amenities?
24. Does the appraised value fall between the highest and lowest comps sales price?
25. Has the subject sold within the last year?
26. Are the conditions of the comps different to subject property?
The Goins Group, LLC 134 Copyright 2005, 2007, 2008
27. Are total net adjustments 15% or more? Are total gross adjustments
25% or more? Comp #1_____%g ____%n /comp #2____%g ____%n /comp#3 ____%g ___%n
28. Are any single line adjustments 10% or more?
29. Does the sq footage of comps vary more than +/- 20%?
COMP#1___________ COMP#2____________COMP#3____________
RECONCILIATION AND ADDENDA
30. Does the appraised value support the sales price?
31. Is the appraisal signed and dated?
32. Is the appraiser‟s certification or license number entered?
33. Is there a street map that identifies the location of subject to comps?
34. Is there a building sketch?
35. Are there exterior photos of sale comps and rent comps?
This appraisal quality control checklist will help you to see what every lender will also be looking at so you will know when you have a good appraisal or not. Don’t worry if you do not understand all of these terms in the checklist. As you become more familiar with the whole process it will come together for you.
Fast and Easy Accurate Property Inspections
After you get the property under contract you will want to have it inspected by a rehab contractor to see what it will cost to make any necessary repairs, if there are any repairs needed. You will also want to have the contractor use your form so if you get more than one estimate then everyone will submit their repair estimates on the same form. This makes it easy to compare apples to apples so to speak. Now if the property needs a lot of work you may also want to have a licensed home inspector look at it as well. The reason we do not do this is that the home inspector will charge you to give you a report and it will not even include an estimate on the amount of money it will take to make the repairs. The rehab contractor on the other hand will give you a free estimate because they will want to get the job and actually make the repairs. Now if we are going to get a licensed home inspector to inspect the property we will do that after our estimate from the contractor. We want to make sure that the rehab estimate is within budget before paying for an inspection. I will show you later how to find just the right rehab contractor to work on your properties and to give you the estimates. When building a relationship with a rehab contractor and having them give you free estimates on your properties I want you to think about something. If you have a contractor go out to over five properties to write up estimates and you do not end up buying any of them, you need to start paying them to do the next few estimates until you actually buy one and they actually get the job. Remember to create win, win situations and don’t wait until the contractor has to bring it up and tell you that they can’t give you anymore free estimates because they haven’t gotten any jobs out of it yet. You don’t have to pay them much, maybe $100-$200 but once they actually get a job going with you then you can stop paying for the estimates again. If you feel like you need to get a licensed home inspector to perform an inspection then you can still get one but remember that they will charge you for the report.
How to Find Out the “Real Deal” on the Neighborhood
Here is a great idea to find out information about a property and the neighborhood. Any property you are thinking about buying you want to call the local police department on a non emergency line. In fact, when you make the call, the first thing I want you to ask is if this is a non emergency line. Then you ask them if you can get a police report for all of the activity in the neighborhood where your property is located. Some will have a website where you can get the information and some will have to mail it to you. Also if you own rentals then you will want to call or go on the website at least once a year to get a report. This will help you keep track with how the neighborhood is doing and whether it is going up or down.
Here is another great idea that you should do on all of the properties you are looking at buying. You should contact the local building inspection department or code enforcement department to make sure that there are no code violations on the subject property and if there are you need to get a list. This is also a good time to ask them for a list of all of the properties under code enforcement to try and buy the property.
After getting back your rehab estimate or home inspection report is a great time to go back to the seller to re-negotiate a better price if the report came in with more repairs than was anticipated. Please do not take advantage of anyone but it is a great negotiating tool.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
How to Find Out the “Real Deal” on the Neighborhood
Here is a great idea to find out information about a property and the neighborhood. Any property you are thinking about buying you want to call the local police department on a non emergency line. In fact, when you make the call, the first thing I want you to ask is if this is a non emergency line. Then you ask them if you can get a police report for all of the activity in the neighborhood where your property is located. Some will have a website where you can get the information and some will have to mail it to you. Also if you own rentals then you will want to call or go on the website at least once a year to get a report. This will help you keep track with how the neighborhood is doing and whether it is going up or down.
Here is another great idea that you should do on all of the properties you are looking at buying. You should contact the local building inspection department or code enforcement department to make sure that there are no code violations on the subject property and if there are you need to get a list. This is also a good time to ask them for a list of all of the properties under code enforcement to try and buy the property.
After getting back your rehab estimate or home inspection report is a great time to go back to the seller to re-negotiate a better price if the report came in with more repairs than was anticipated. Please do not take advantage of anyone but it is a great negotiating tool.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
Winning Contracts and Clauses
When making an offer on a property there are many different contracts and documents you can use. Personally, when buying a property, I like to use the realtors form for the particular state I am buying in. Now if you are buying a property through a realtor, they will automatically use their form. If you are buying from a “for sale by owner”, it is my understanding that you can still use the form but you will want to take the realtor logo off of the document because there is no realtor involved. There are two reasons you want to use the same form as the realtors. The first one is in the event you ever have a seller tell you they want to have their attorney look at the contract before accepting it. If you are using the realtor type form then the only thing the attorney can basically say is “this is the same form that every realtor in the state uses”. After all, they don’t know the value of your property, do they? And if you use my three clauses below they will not have a problem with any of your terms. The second reason is if you were ever sued then the first thing that the judge will ask is “who drafted this document” and if it was you and it is a one sided document then it will not make you look good in the eyes of the court.
To find the contract that your states realtors use, you can simply get online and go to Google and type in your state and then the words “realtor contract” or “real estate contract”. Ex: North Carolina Real Estate Contract. You can also do an advanced search on Google by selecting only PDF files in your search. This way you will only get search results that are PDF files. This will help you find what you are looking for much faster. You will want to check with your local attorney to make sure you can do this. I ask this everywhere I go and speak and no one has told me different but you will want to just check with your attorney. I am not a big fan of creating a one sided contract. After all it is best to keep it simple and only put in enough clauses to protect you but not too many that will scare away your seller or realtor. I will show you the three best ones in the clauses section.
Having said all of the above, if you would still like to use your own contract, I have included one for you. It is a simple, easy to use, one page contract that you should not have any trouble with using. I have included it on the forms disc, as well as below. Right after that I have included a more extensive contract that covers about everything you can think of. You can use either one. I would personally suggest using the simple one page form for buying and the more detailed one for selling.
Now everything above applies to consumer transactions. A consumer transaction is basically a transaction where you are either buying from someone who lives in a property or selling to someone who will be living in the property. Everything else is considered a commercial transaction meaning that you are either buying from a bank or an investor and/or selling to another investor. In this case you will want to use your own form and make sure your buyer who is the investor does their own due diligence. Or at least you tell them to.
Three “Must Have” Clauses
When we buy property there are basically three different clauses that we put in our contract. Regardless of the type of financing you will be using, if you have that lined up in advance you shouldn’t even need a financing contingency in your contract.
The first clause is usually already in the contract and it is: This contract is subject to a 15-day inspection and approval of the condition of the property prior to closing. Now, some sellers depending on who it is, maybe it is a bank or an REO lender, may not allow you 15 days. That is okay as long as you can get out there and get the property inspected prior to having to close on the property. But, we always try to shoot for 15 days. So that is the first clause that we want to make sure that is in our contract.
The second stipulation or clause in the contract that we always put in ours is: This contract is subject to an acceptable appraisal. This lets the seller know that we are not paying what is the value of the property but we want an acceptable appraisal. We have even had some of them say, well what is acceptable. Well, you can just keep that simple and let them know that I will let you know when the appraisal comes in whether or not it is acceptable. We do not usually get any resistance with this.
The third clause that we put in all of our contracts is: The deposit shall be the sole remedy in the event of buyers default. Outside of these three clauses, I cannot think of anything else that you need on every contract. If you have already got in touch with a lender and lined your financing up in advance or have partners, private money or hard money rehab loans then you do not even need to put anything in there about financing. In fact, you will get a lot more of your offers accepted, approved and closed if you do not put any sort of financing contingency in your offer. And, with these other three, you do not have to worry about it anyway. You have your out in the event that you need one.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
To find the contract that your states realtors use, you can simply get online and go to Google and type in your state and then the words “realtor contract” or “real estate contract”. Ex: North Carolina Real Estate Contract. You can also do an advanced search on Google by selecting only PDF files in your search. This way you will only get search results that are PDF files. This will help you find what you are looking for much faster. You will want to check with your local attorney to make sure you can do this. I ask this everywhere I go and speak and no one has told me different but you will want to just check with your attorney. I am not a big fan of creating a one sided contract. After all it is best to keep it simple and only put in enough clauses to protect you but not too many that will scare away your seller or realtor. I will show you the three best ones in the clauses section.
Having said all of the above, if you would still like to use your own contract, I have included one for you. It is a simple, easy to use, one page contract that you should not have any trouble with using. I have included it on the forms disc, as well as below. Right after that I have included a more extensive contract that covers about everything you can think of. You can use either one. I would personally suggest using the simple one page form for buying and the more detailed one for selling.
Now everything above applies to consumer transactions. A consumer transaction is basically a transaction where you are either buying from someone who lives in a property or selling to someone who will be living in the property. Everything else is considered a commercial transaction meaning that you are either buying from a bank or an investor and/or selling to another investor. In this case you will want to use your own form and make sure your buyer who is the investor does their own due diligence. Or at least you tell them to.
Three “Must Have” Clauses
When we buy property there are basically three different clauses that we put in our contract. Regardless of the type of financing you will be using, if you have that lined up in advance you shouldn’t even need a financing contingency in your contract.
The first clause is usually already in the contract and it is: This contract is subject to a 15-day inspection and approval of the condition of the property prior to closing. Now, some sellers depending on who it is, maybe it is a bank or an REO lender, may not allow you 15 days. That is okay as long as you can get out there and get the property inspected prior to having to close on the property. But, we always try to shoot for 15 days. So that is the first clause that we want to make sure that is in our contract.
The second stipulation or clause in the contract that we always put in ours is: This contract is subject to an acceptable appraisal. This lets the seller know that we are not paying what is the value of the property but we want an acceptable appraisal. We have even had some of them say, well what is acceptable. Well, you can just keep that simple and let them know that I will let you know when the appraisal comes in whether or not it is acceptable. We do not usually get any resistance with this.
The third clause that we put in all of our contracts is: The deposit shall be the sole remedy in the event of buyers default. Outside of these three clauses, I cannot think of anything else that you need on every contract. If you have already got in touch with a lender and lined your financing up in advance or have partners, private money or hard money rehab loans then you do not even need to put anything in there about financing. In fact, you will get a lot more of your offers accepted, approved and closed if you do not put any sort of financing contingency in your offer. And, with these other three, you do not have to worry about it anyway. You have your out in the event that you need one.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
Secrets to Negotiating Short Sales
Although I often say that a short sale is a long buy there is a lot of money to be made in doing short sales. If you focus on them, I am sure you’ll become successful but you’ll eventually come across a seller that owes more than the property is worth and is behind in payments. In this situation, lenders are sometimes willing to accept less than the amount owed.
Your first step would be to obtain written authorization from the borrower (seller) to discuss the mortgage and loan information with the lender. Next, contact the “LOSS MITIGATION” department. Negotiating a short sale with the lender is a difficult process because it’s an extremely difficult job to find a bank officer who has the authority to accept a discount. Be patient and explain to everyone you talk to what information you need to proceed. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and bouncing around to several automated voice mail systems. Once you get in touch with the right person, the negotiating begins. To save yourself time in the future, make sure to get this person’s direct telephone number and other contact information.
From the lender’s perspective, a short sale saves them a lot of money due to the extra costs and employee burdens associated with the foreclosure process. Your job as the investor is to convince the lender that they’ll fare better by accepting your offer now and cutting their losses as quickly as possible.
The lender will need every detail of the deal between you and the borrower (seller). Specifically, the lender wants to know what the property is worth. The lender will generally hire a local broker or appraiser to evaluate the property. You can also submit your own appraisal or comparable sales information. You’ll want to offer as much negative information about the property as possible. Also, include some relevant information about the neighborhood, with pictures of the closest rundown properties you can find. You should also include a contractor’s bid for repair estimates, which should be the highest bid you can obtain ethically!! Remember, pictures can speak volumes!
The lender will also ask for financial information on the borrower (seller). The borrower must prove that he’s in dire financial straits and unable to afford the payments. The borrower must show that he has no other source of income or assets to repay the loan. This process may involve as much or more paperwork than the original mortgage application. The borrower should submit a “hardship letter”, which is a sob story about their financial trouble. This may require a little help on your part. Don’t lie! Just paint a picture that doesn’t look good.
Finally, the lender wants to see a written contract between you and the borrower. The lender wants to make sure that the borrower (seller) isn’t walking away with any cash in their pockets. Generally, the contract must be written so that the buyer pays all costs associated with the transaction, so that the “net cash” to the borrower is the exact amount of the short sale amount to the lender. A preliminary HUD-1 settlement statement is often requested, which can be difficult, since many title and escrow companies won’t prepare one in advance of closing. As an alternative, you could prepare your own HUD-1 statement and write “preliminary” across the top of it.
Don’t be surprised if your bid is rejected at first. Lenders aren’t emotionally attached to properties; so they aren’t as likely to give you the “deal of the century”. Many short sales fall through mainly because a Brokers Price Opinion (BPO) comes in too high. You can’t pull the wool over a lender’s eyes. If the property isn’t in need of serious repairs, it’s unlikely that you’ll be able to convince the lender that the property is worth a lot less than the appraised value.
For more articles and a 10 part e-course on how to create your own Ultimate Buying and Selling Machine! plus over 50 training audios, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this plus 51 exclusive, editable Forms and Documents, two real estate investing eBooks, a personal coaching profile, nationwide wholesale property listings, weekly training teleconferences, a subscription to my weekly investing newsletter, Admission for two to Investor Palooza and Much More!
Your first step would be to obtain written authorization from the borrower (seller) to discuss the mortgage and loan information with the lender. Next, contact the “LOSS MITIGATION” department. Negotiating a short sale with the lender is a difficult process because it’s an extremely difficult job to find a bank officer who has the authority to accept a discount. Be patient and explain to everyone you talk to what information you need to proceed. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and bouncing around to several automated voice mail systems. Once you get in touch with the right person, the negotiating begins. To save yourself time in the future, make sure to get this person’s direct telephone number and other contact information.
From the lender’s perspective, a short sale saves them a lot of money due to the extra costs and employee burdens associated with the foreclosure process. Your job as the investor is to convince the lender that they’ll fare better by accepting your offer now and cutting their losses as quickly as possible.
The lender will need every detail of the deal between you and the borrower (seller). Specifically, the lender wants to know what the property is worth. The lender will generally hire a local broker or appraiser to evaluate the property. You can also submit your own appraisal or comparable sales information. You’ll want to offer as much negative information about the property as possible. Also, include some relevant information about the neighborhood, with pictures of the closest rundown properties you can find. You should also include a contractor’s bid for repair estimates, which should be the highest bid you can obtain ethically!! Remember, pictures can speak volumes!
The lender will also ask for financial information on the borrower (seller). The borrower must prove that he’s in dire financial straits and unable to afford the payments. The borrower must show that he has no other source of income or assets to repay the loan. This process may involve as much or more paperwork than the original mortgage application. The borrower should submit a “hardship letter”, which is a sob story about their financial trouble. This may require a little help on your part. Don’t lie! Just paint a picture that doesn’t look good.
Finally, the lender wants to see a written contract between you and the borrower. The lender wants to make sure that the borrower (seller) isn’t walking away with any cash in their pockets. Generally, the contract must be written so that the buyer pays all costs associated with the transaction, so that the “net cash” to the borrower is the exact amount of the short sale amount to the lender. A preliminary HUD-1 settlement statement is often requested, which can be difficult, since many title and escrow companies won’t prepare one in advance of closing. As an alternative, you could prepare your own HUD-1 statement and write “preliminary” across the top of it.
Don’t be surprised if your bid is rejected at first. Lenders aren’t emotionally attached to properties; so they aren’t as likely to give you the “deal of the century”. Many short sales fall through mainly because a Brokers Price Opinion (BPO) comes in too high. You can’t pull the wool over a lender’s eyes. If the property isn’t in need of serious repairs, it’s unlikely that you’ll be able to convince the lender that the property is worth a lot less than the appraised value.
For more articles and a 10 part e-course on how to create your own Ultimate Buying and Selling Machine! plus over 50 training audios, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this plus 51 exclusive, editable Forms and Documents, two real estate investing eBooks, a personal coaching profile, nationwide wholesale property listings, weekly training teleconferences, a subscription to my weekly investing newsletter, Admission for two to Investor Palooza and Much More!
Negotiating Win Win Transactions in Real Estate Investing
Negotiating is a very important part of becoming a successful investor. You can’t negotiate with properties. You have to negotiate with people. Remember that people do business with people they like and trust so it is important to always be respectful to people and treat people the way you want to be treated. When you become a real estate investor you will come into contact with people of all kinds and in all kinds of financial and economic situations. But remember this, bad things happen to good people. So no matter what a person’s situation, do not ever talk down to them or treat them like you are better than they are. To get an idea of what I am talking about just listen to the live recordings of me talking to “For Sale By Owners.” People will forget what you said but they will never forget how you made them feel. Please remember this. You will find in this course a “FSBO Form” and I want you to take a little bit of time and go through this. This is the form that our people in our office use; however, I don’t use this all the time, myself. I actually use a legal pad and write all the information on it. But I would not suggest that for you until you get very, very familiar with all the information that is on this form and you can ask the questions without having to look at the form itself. There are some great questions on this form to ask a “for sale by owner” that you need to be aware of, so please use it. There is also a script at the bottom to help you ask the questions and build rapport with the seller, so please use that as well. Just remember when you are talking with “for sale by owners”, or any lead as far as that goes, “the older they get, the colder they get”. So you have to move fast when you are working with people and get them to like you and trust you and build rapport with them, so they will do business with you. And remember you want to get your offer to them on the first phone call to get them “in the glue” so to speak, meaning that you want to get the negotiations started so you will be staying in touch with them and following up with them so they know you are serious. We will cover automated follow up later.
Remember, in negotiating, the key is to get your seller, whether it be the seller, the realtor, the bank or whoever, get them to like you and trust you because people do business with people they like and trust. This is very important and a key thing for you to remember. The other thing that I want you to remember is always make your first offer over the telephone, on the first call. This is very important. This is the way we are able to buy multiple properties every single month, by making our first offer over the telephone.
Remember when you are putting a contract together always put your phone number and contact information in the upper right side of the contract. They may throw away your business card, but they will always hang on to that offer that you made them. So always have your contact information in the top right corner of that offer.
An excellent question to ask an investor when trying to buy their property is: “knowing what you know about this property, would you buy it at this price”? This is an awesome question to ask, as it makes them reveal any problems with the property or the real reason they are selling.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
Remember, in negotiating, the key is to get your seller, whether it be the seller, the realtor, the bank or whoever, get them to like you and trust you because people do business with people they like and trust. This is very important and a key thing for you to remember. The other thing that I want you to remember is always make your first offer over the telephone, on the first call. This is very important. This is the way we are able to buy multiple properties every single month, by making our first offer over the telephone.
Remember when you are putting a contract together always put your phone number and contact information in the upper right side of the contract. They may throw away your business card, but they will always hang on to that offer that you made them. So always have your contact information in the top right corner of that offer.
An excellent question to ask an investor when trying to buy their property is: “knowing what you know about this property, would you buy it at this price”? This is an awesome question to ask, as it makes them reveal any problems with the property or the real reason they are selling.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
Getting Real Estate Leads from the Court House
Let’s take a look at the different types of leads you can you find at the Court House?
Number 1: Divorce. You look for same last names of male and female in the Book of Civil Lawsuit in the Circuit Court. Now chances are, if they are going through a divorce, if they have real property, they are going to sell it. What you may want to do is either call or send out a postcard or letter and put them in your database.
Number 2: Foreclosures. You can find newly filed Foreclosures at the Court House. They post them on a Bulletin Board for Newly Filed Foreclosures. One thing to keep in mind about the Foreclosures is usually the older the mortgage, the more equity that they will have. You also have to be careful because sometimes you will see a very low mortgage balance and a lot of times that tells me that it is a second mortgage, but that is a source. You can contact them directly or contact the Trustee but they are not going to give you much information without a Borrower’s Authorization, which is included in this course.
Number 3: Delinquent Property Taxes. What you want to do is contact the Tax Office for a list of properties with delinquent taxes owed. Some of them even publish them in the Newspapers. They publish a list one time a year of the property taxes that have not been paid. There is actually a guy in our area that produces a CD-ROM. He goes around to the various counties and finds out all the properties where the taxes have not been paid and somehow he downloads them, puts them in a spreadsheet and puts them on a CD-ROM and then sells them. We have bought that list several times and sent out mailings and actually ended up buying a couple of properties from it. So it is well worth it to try that as well.
Number 4: Out of Town Owners. The tax department will list the owner’s mailing address and a lot of it is online now. If they live out of town now, they may want to sell and invest more locally. It is not a bad idea to at least try one or two mailings and see if you can find some people that are out of town owners that may want to sell. There are also several different services that can do things like this. One of them is Court House Retrieval Service and their web address is www.crsdata.net. We subscribe to it and you can actually do a look up of out of town owners and do a mailing label printout and put them right on your postcard. Here are some other sources for property, and bear in mind that you will not use all of these sources. You may only use a few of them, but I just wanted to give you a lot of different options. You do need to keep five to ten sources going at a time so you will have a steady source of leads coming in.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
Number 1: Divorce. You look for same last names of male and female in the Book of Civil Lawsuit in the Circuit Court. Now chances are, if they are going through a divorce, if they have real property, they are going to sell it. What you may want to do is either call or send out a postcard or letter and put them in your database.
Number 2: Foreclosures. You can find newly filed Foreclosures at the Court House. They post them on a Bulletin Board for Newly Filed Foreclosures. One thing to keep in mind about the Foreclosures is usually the older the mortgage, the more equity that they will have. You also have to be careful because sometimes you will see a very low mortgage balance and a lot of times that tells me that it is a second mortgage, but that is a source. You can contact them directly or contact the Trustee but they are not going to give you much information without a Borrower’s Authorization, which is included in this course.
Number 3: Delinquent Property Taxes. What you want to do is contact the Tax Office for a list of properties with delinquent taxes owed. Some of them even publish them in the Newspapers. They publish a list one time a year of the property taxes that have not been paid. There is actually a guy in our area that produces a CD-ROM. He goes around to the various counties and finds out all the properties where the taxes have not been paid and somehow he downloads them, puts them in a spreadsheet and puts them on a CD-ROM and then sells them. We have bought that list several times and sent out mailings and actually ended up buying a couple of properties from it. So it is well worth it to try that as well.
Number 4: Out of Town Owners. The tax department will list the owner’s mailing address and a lot of it is online now. If they live out of town now, they may want to sell and invest more locally. It is not a bad idea to at least try one or two mailings and see if you can find some people that are out of town owners that may want to sell. There are also several different services that can do things like this. One of them is Court House Retrieval Service and their web address is www.crsdata.net. We subscribe to it and you can actually do a look up of out of town owners and do a mailing label printout and put them right on your postcard. Here are some other sources for property, and bear in mind that you will not use all of these sources. You may only use a few of them, but I just wanted to give you a lot of different options. You do need to keep five to ten sources going at a time so you will have a steady source of leads coming in.
I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins
How To Find The Best Realtors And Their Deals
Realtors are a great source for deals. We actually used to buy most of our properties from realtors. Remember, at the beginning I said to go after the low hanging fruit in your area. That is what works best and easiest in your market. At one time the realtors were the easiest way in my market but now, although we buy a lot from realtors, we also use other methods. This is updated information from the original course writing, when I said we purchased most of our properties from realtors. Now it is just one of many sources.
Let’s see how you can work with realtors. First, every time you talk to a realtor, you want to get their email address to put into your database. And we will talk more about databases later in that section. Next, you want to always ask the realtor if they offer the service where they can sign you up for automatic email notification (auto responders) when any properties come on the market that meets your buying criteria. Also ask them if they can set it up based on certain keywords. If so, you want to give them the types of property you are interested in and also a list of keywords. Keywords like motivated, vacant, abandoned, short sale, transferred, bank owned, handyman special, TLC, needs work, fixer upper, reduced, must sell, bring all offers, etc. Just remember to call the realtor who sent you the deal and put your offer in through them even if it was just an auto responder that their system sent to you. There is nothing wrong with you calling the listing agent on a property that you found on your own while driving or searching on the internet.
How about asking realtors for a listing of expired listings on a regular basis? These are the properties that were on the market but didn’t sell. Do you think they may be motivated now after six months of their house on the market and it didn’t sell? Some will and some will not but it is still another source.
You also want to ask the realtor if they can refer sellers to you that they cannot help because the seller may be in foreclosure and there is not enough time to put the property on the market. Tell them that you will be a way the seller can sell fast. You can also tell them you can send them any sellers who you cannot help that may be a good listing prospect for the realtor. Always try to create win, win situations that benefit all parties. Always ask any realtors you talk to if they have any pocket listings. These are listings that they may have or have just acquired, but they are not listed in the MLS system yet. If you have a relationship with the realtor, you want them to call you first.
How to Find the Best REO Realtors
This is an awesome idea to find out who the REO realtors are in your area. These are the realtors that work directly with the banks or asset managers who have taken property by foreclosure. Ok, here is what you do. You simply ask one of your realtors to pull up online and email to you or print you a list of the properties that have already sold with the keywords of; REO, Bank Owned, Seller Addendum required and Foreclosure. Then you contact the listing agent of these properties as they are the ones that work with the banks and asset managers getting all of the foreclosure listings. Get on their email list, put them on yours, visit their website and add it to your bookmarks and make some offers through them!
How to Find the Top Realtors in Your Market
If you want to find the best realtors by volume, meaning the ones that close more volume in transactions than any other realtors, you simply contact your local realtors association and ask them for the information. Tell them that you want the names of the top five agents by volume. They keep all of the statistics on all of the realtors and properties. You can also get information on the number of properties sold, the median price of the properties that have sold and ones that are on the market. This is a great place for information.
Let’s see how you can work with realtors. First, every time you talk to a realtor, you want to get their email address to put into your database. And we will talk more about databases later in that section. Next, you want to always ask the realtor if they offer the service where they can sign you up for automatic email notification (auto responders) when any properties come on the market that meets your buying criteria. Also ask them if they can set it up based on certain keywords. If so, you want to give them the types of property you are interested in and also a list of keywords. Keywords like motivated, vacant, abandoned, short sale, transferred, bank owned, handyman special, TLC, needs work, fixer upper, reduced, must sell, bring all offers, etc. Just remember to call the realtor who sent you the deal and put your offer in through them even if it was just an auto responder that their system sent to you. There is nothing wrong with you calling the listing agent on a property that you found on your own while driving or searching on the internet.
How about asking realtors for a listing of expired listings on a regular basis? These are the properties that were on the market but didn’t sell. Do you think they may be motivated now after six months of their house on the market and it didn’t sell? Some will and some will not but it is still another source.
You also want to ask the realtor if they can refer sellers to you that they cannot help because the seller may be in foreclosure and there is not enough time to put the property on the market. Tell them that you will be a way the seller can sell fast. You can also tell them you can send them any sellers who you cannot help that may be a good listing prospect for the realtor. Always try to create win, win situations that benefit all parties. Always ask any realtors you talk to if they have any pocket listings. These are listings that they may have or have just acquired, but they are not listed in the MLS system yet. If you have a relationship with the realtor, you want them to call you first.
How to Find the Best REO Realtors
This is an awesome idea to find out who the REO realtors are in your area. These are the realtors that work directly with the banks or asset managers who have taken property by foreclosure. Ok, here is what you do. You simply ask one of your realtors to pull up online and email to you or print you a list of the properties that have already sold with the keywords of; REO, Bank Owned, Seller Addendum required and Foreclosure. Then you contact the listing agent of these properties as they are the ones that work with the banks and asset managers getting all of the foreclosure listings. Get on their email list, put them on yours, visit their website and add it to your bookmarks and make some offers through them!
How to Find the Top Realtors in Your Market
If you want to find the best realtors by volume, meaning the ones that close more volume in transactions than any other realtors, you simply contact your local realtors association and ask them for the information. Tell them that you want the names of the top five agents by volume. They keep all of the statistics on all of the realtors and properties. You can also get information on the number of properties sold, the median price of the properties that have sold and ones that are on the market. This is a great place for information.
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