Dr. Wholesale: The Real Estate Day Trader

2012-07-22T07:18:00.002-07:00

This is from Lance Edwards:

Financial Freedom vs. Wealth Creation

I presume that you entered or became interested in real estate because you heard that it could improve you and/or your family’s financial condition. Well, it absolutely can. And just like you, that’s why I entered real estate.

More millionaires have been created with real estate than any other type of investment.

But let me bust a myth right here. Financial freedom is not about having $1 million in the bank. Yes, that works but it can take a very long time. Let me explain.

There are 3 components to fianancial freedom and wealth creation:

1) Active Income – this is where we exchange our activity for income. It’s hours for dollars. It can be very good paying but nevertheless, it is a job. Real estate wholesaling is active income – and can pay well but it is still a job. Don’t work and you don’t get paid.

2) Passive Income – this is income derived from our assets. The income comes in whether we show up or not. It is does not require our active involvement on a daily (or perhaps any) basis. A key real estate example is income property – like apartments (my favorite).

3) Net Worth – this is equity in our assets. It is our balance sheet. It is the equity in our real estate. But there’s a key definition about assets… An asset is only an asset if it produces passive income. (The equity in you home is not an asset).

Here’s where the NEW strategy for financial freedom becomes important.

In school, I was taught that the path to financial freedom was 1) work hard; 2) get good grades; 3) get a good job so 4) I can stash away my savings for 30-40 years and live off of the interest. That works – as long as we live long enough and stash away enough savings; especially in the early years.

Bascially, the old school formula says: Work for 30-40 years generating Active Income; save a portion to create Net Worth – and then live off of the Passive Income, i.e. the 30 Year Plan.

Again that works but there is a much, much easier and faster way…

It starts with the new definition of financial freedom.

DEFINITION: Finanical freedom is when our passive income is more than enough to pay for our desired lifestyle.

Note that the definition says nothing about how much money you have in the bank. If your desired lifestyle is $6000 per month, you just need passive income of $6000 per month or more to be financially free.

The strategy to finanical freedom is that you build or buy Passive Income vehicles (using other people’s money) so that your Passive Income exceeds the costs of your desired lifestyle. And THEN you are FREE to create your Net Worth.

You see, it’s faster and easier to become financially free than it is to become wealthy.

Wealth creation and savings can take decades. Financial freedom can be done in 1 apartment deal – it can certainly be done in a few years.

This outlook changed my entire strategy to real estate and business.

KEY TAKEAWAY: Buy or build passive income vehicles (using other people’s money). I call it Nothing Down Financial Freedom (TM).

Lance

101 Real Estate Investing Resources: A Professional Investor's Rolodex

2012-04-04T10:39:00.000-07:00

By Scott Roemermann

This week we’ve put together a fairly comprehensive list of resources for you to check out. You can start using many of these immediately as they are free of charge. As for the others, you should weigh up whether you need them for the stage you are at with your business.

We have first-hand experience with many of these sites but not all of them so any feedback or reviews are welcome in the comments section below.

Training

With so many products on the market today I could probably have done a list of 101 training resources. However, in creating this list I was reminded that there are quite a few “pretenders” out there in the real estate investing world and have tried to keep this list concise with only reputable resources, some of which are free.

General

RichDad.com: Rich Dad Poor Dad is the book that woke me up to the fact that I needed to take greater responsibility for my financial future. A short time later I purchased my first investment property. Robert Kiyosaki still delivers fantastic information and is the obvious choice to kick start this list.

RealEstateInvestor.com: This is a community of real estate investors that has been building a lot of momentum recently. With an education center, networking and member blogs, there is plenty of great free information here.

REIAllstars.net is a new membership site that is building a portfolio of video training materials to help new investors fast track the learning process.

CREonline.com is the elder statesman of the real estate investing community online. It has been around since 1995 and as such has a rich offering of great articles.

REIclub.com hasn’t been around quite as long but is the other big site in terms of the volume of articles and free content that they offer at this time.

BiggerPockets.com is a community site which is constantly evolving. It currently has a popular blog, forums, articles, an analysis tool and many other useful resources.

CashFlowInstitute.com: Mark Walters offers a series of free videos about numerous real estate investing techniques. Well worth a look.

RealEstateInvestors.tv offers hundreds of real estate investment educational videos for less than $40 per month. They also have a 7-day free trial.

Apartments

Real-Estate-Fortune.com: Dave Lindahl is best known for his tremendous success in apartment house investing.

ApartWealthMachine.com: Lance Edwards also has some great information about investing in multi-family housing and offers a free CD on the topic from this site.

Commercial

CommercialAcademy.com: Scott Scheel is the go-to guy for commercial real estate investment training and also has a free CD available from his site.

Flipping Homes

FlippingHomes.com: Steve Cook has a strong reputation as an industry leader in the wholesaling game and is developing his website into a great web 2.0 site with plenty of articles, a forum, a fun and useful blog and some great free videos as well.

Financing

PrivateLendingMadeEasy.com: Alan Cowgill is the indisputable expert when it comes to acquiring private money for your real estate investing. He also has plenty of freebies to get you started.

CashFlowExperts.biz: Tom Kish reveals his system for using unsecured lines of credit to invest in real estate instead of cash. With this system you should never have to say no to a good deal again.

Foreclosure / Short Sales

ForeclosureUniversity.com: This professional looking site offers a free audio recording about Short Sales and a very affordable Foreclosure Home Study Course.

EasyHUD.com: Use the HUD Generator tool to create your HUD-1 form in less than 5 minutes and unlock the door to incredible discounts.

Government Grants

NewAmericanLandRush.com: Jillian Coleman Wheeler has put together some useful resources for anyone interested in getting government grants to aid their real estate investing business.

Lease Options

Lease2Purchase.com provides solid information about a very important real estate investing technique. The use of lease options can be very powerful and it is something that all investors should at lease be aware of.

Probate

ProbatePowerProfits.com is a new site from experienced investor Stacy Kellams. It has quickly become the benchmark for probate investing training.

Property Management

LandlordSystem.com by Anesia Springborn offers a free rental agreement and a 7-day course about systematizing your buy and hold property business.

MrLandlord.com: This may not be the prettiest site around but Jeffrey Taylor has been delivering cutting edge information about being a super successful landlord for many years. There is some great info here.

Self Storage Investing

SelfStorageInvesting.com: Scott Meyers has created a very nice resource about self storage investing that is well worth a look. He provides some strong arguments as to why you might consider this commercial investment alternative and backs it up with solid “how-to” information.

Tax Lien Investing

TaxLienLady.com: Tax lien investing is one area where you need to be confident you are getting solid advice and with quite a few sharks “out there” I am very happy to introduce you to Joanne Musa, the Tax Lien Lady. Joanne has some great resources available at her site including podcasts, videos, articles and even some software related to tax lien investing.

Virtual Wholesaling

VirtualWholesaling.com: Cris Chico has mastered the art of running his real estate investing business from home using the internet and other tools that allow him to invest remotely. Check out his site for some free and paid materials.

REIconferences.com: Charrissa Cawley is another expert at virtual investing and has some great resources to share.

Business Incorporation, Accounting and Legals

TheInformedInvestor.com: Darius Barazandeh has an incredible breadth of information and tools available at his site but I particularly like the fact that as a licensed attorney he can offer sound advice on setting up your real estate investing business the right way.

LegalWiz.com: William Bronchick also has a great range of free and paid information and draws on his legal background to offer real estate investors great advice for their businesses.

LegalZoom.com is a popular resource for getting legal forms and services at the right price.

PrePaidLegal.com: This site offers customers the chance to purchase legal services on a pre-paid basis giving them access to quality law firms without having to worry about how much money each minute on the phone is costing them.

TaxLoopholes.com: Diane Kennedy’s ground-breaking site offers some great information about how you can pay less tax…legally.

RealEstateTaxLaw.com: John Hyre is a qualified accountant and real estate investor and he has some sound advice for real estate investors especially with respect to their bookkeeping.

DepreciateEm.com: This is a great little online application that helps you with asset separation for depreciation in 3 easy steps. It will generate a report for you and the appropriate form for the IRS.

Federal Fair Housing Laws: The Department of Housing and Urban Development offers this section on their website about fair housing laws which could be handy for landlords to be aware of.

Quickbooks is pretty much the standard for small business accounting software and if you don’t have a copy you may want to look into it and make sure you keep your books in order from the start.

Housing Data And Research

MarketTimingMaster.com: Ken Wade has developed an incredible system that takes some technical trading principles and applies them to real estate markets across the country. This approach is the closest thing I’ve seen to a crystal ball in terms of which markets to invest in and can DRAMATICALLY improve your long-term results. Needless to say, I am impressed with this site.

Yahoo Real Estate offers some very nice tools but my favorite section is probably the Neighborhood Info which includes details of schools in the area and demographic data that is of interest to investors.

The National Association of Realtors offers some handy statistics and research data from this page on their site.

HendricksPartners.com: Hendricks & Partners also has some free market reports available in the Research Center on their website.

First American CoreLogic has a bunch of research tools and data available including property records, values and market trends.

DQNews.com is somewhat like a blog and is a good way to keep up-to-date with market trends. DataQuick are also well regarded for their paid research services at dataquick.com

Rich Dad’s Real Estate Evaluator: While I prefer that people create their own analysis spreadsheets so they can truly understand the numbers I will recommend any tool that encourages investors to do a more thorough financial evaluation of a deal.

Rentometer.com have a nice little tool for conducting rental comps to check how much you can expect to be charging in rent.

RentSlicer.com: This web 2.0 mashup of Craigslist and Google Maps also allows you to conduct rental comps by extracting data from Craigslist.

HUDuser.org is the website of HUD’s Office of Policy Development and Research and it is here that HUD provides the data relating to Fair Market Rents that they establish for the Section 8 program each year. You can use this data as a benchmark especially if you rent to Section 8 tenants.

Comps

These sites can be very handy for getting some rough data for initial analyses of deals but do not replace a proper appraisal of a property with such data especially when you need to know the after repair value.

Zillow.com: Zillow has come along and revolutionized the way we get comparables. It is a powerful resource for getting “Zestimates” on the value of a home and for conducting your comps.

CyberHomes.com: The CyberHomes database covers more than 100 million records and more than 85% of the US population making it a very thorough resource for conducting your comps.

Eppraisal.com: Another popular resource for obtaining estimates on the value of specific real estate.

RealQuest.com: This site by First American CoreLogic has the multiple functions of property information, values and search. Their Investor product allows you to search for pre-foreclosures, auctions and bank-owned properties.

Property Search

These four sites are all well enough known that they need no introduction.

Trulia.com

HomeGain.com

MLSonline.com

Realtor.com

And for commercial real estate investors the following site is a must.

LoopNet.com

Foreclosures and REOs

In the wake of the sub-prime crisis, now really is a great time to be acquiring some cheap property. Just make sure you do your due diligence first, including market research!

Anyway, here’s a great list of sites to source some heavily discounted properties. We start with some foreclosure databases that have numerous sources.

Foreclosure.com is the big dog in the foreclosure space and now includes listings from Premiere Asset Services (who handle Wells Fargo’s REOs). They also acquired seizedrealestate.com recently. Their database includes foreclosures, pre-foreclosures, bankruptcy properties, tax lien properties, and FSBOs.

ForeclosureData.com also has a massive database with about 1.2 million properties currently listed. This also includes pre-foreclosures, bankruptcy, and FSBO properties.

RealtyTrac.com is another foreclosure database that offers a 7-day free trial. They also offer email alerts and a foreclosure market report.

The following are a few of the better sources for government foreclosures:

HomeSales.gov lists properties owned by various government departments. They also offer guidance on the buying process for each type of property.

The US Department of Agriculture makes it’s foreclosure properties available from this site.

HUD.gov: HUD foreclosures (Department of Housing and Urban Development) are listed on their website but you must then contact the local real estate agent to submit a bid on the property.

Ocwen.com: VA foreclosures (Department of Veterans’ Affairs) are managed by Ocwen Loan Servicing.

And the remaining items in this section are great sources for REO properties or bank foreclosures. Some of these sites are Asset Managers that the banks use to dispose of their properties but many banks list the properties directly on their own website as you can see below. It’s always worth trying your smaller local banks’ websites too because you may find a great source with less competition.

FirstPreston.com

LendersREO.com

Integrated Asset Services

PremiereREO.com

HomeSteps.com is a website of lender Freddie Mac which they have set up for the purpose of selling their REO properties.

Fannie Mae have made all their REO properties available from their main website.

BuyBankHomes.com is owned by Fidelity National Asset Management Solutions, Inc., the largest third-party outsourcer of REO properties in the US.

Bank of America REO listings

Chase REO listings

US Bank REO listings

Countrywide REO listings

IndyMac Bank REO listings

M&T Bank REO listings

For Sale By Owner

The following for-sale-by-owner sites can be a great source of discount properties and you can also use them to market your own properties.

FSBO.com

ForSaleByOwner.com

HomesByOwner.com

Home Inspection

ASHI.org: The American Society of Home Inspectors is a good starting point to ensure you use qualified inspectors.

HomeTeamInspection.com: a good reputable company for locating a home inspector. They also have some other handy resources on their website.

HomeGuage.com offers online inspection software that allows you to sign in and view your inspection reports so long as you choose a home inspector via this website. This is a fantastic service that offers consistent, quality reporting and as such is highly recommended.

Appraisal

NAIFA.com (National Association of Independent Fee Appraisers) is a non-profit body that will help you locate quality real estate appraisers.

AppraisalInstitute.org: Similarly, Appraisal Institute was set up to ensure high standards among professional real estate appraisers and can help you locate the right appraiser.

Marketing

Motivated Seller Magnet offers a very good course for locating motivated sellers. While this may not be a huge problem for investors right now it’s important to be prepared for all stages of the market cycle.

REIcreator.com offers buying and selling websites for investors as well as software for managing your real estate investing business.

RealEstateSupplySuperStore.com: You can buy all the signs, flyers, lockboxes and other aids you’ll need for successfully marketing your properties at this site.

Technology

Most of the websites that examine the latest technologies for real estate revolve around the marketing side of things and as such are targeted at realtors rather than real estate investors. However, marketing is just as relevant to investors and these two sites are worth following the most for investors.

FutureOfRealEstateMarketing.com

GeekEstateBlog.com

Home Staging

SimpleAppeal.com: Increasingly investors are getting more creative and aggressive with the marketing of their own properties and we are seeing home staging playing a bigger role in that process. Karen at Simple Appeal has some great advice on this increasingly important skill.

Outsource Your Marketing

SalesTeamLive.com handles all the work required to drive a stream of motivated potential clients to your business, using their Done-For-You Marketing Campaigns.

4RealEstateSuccess.com offers a bunch of tools to support your marketing efforts including prospecting websites, live answering service and marketing materials.

Section 8

Section 8 is a government subsidized rental program by the Department of Housing and Urban Development. While you may get slightly lower rent with such tenants there is a huge amount of demand and you don’t have the same hassles chasing your rent checks since they are coming from the government. Back in the research section there is a link to HUD’s Fair Market rents to get an indication of your projected income.

GoSection8.com allows you to list your properties for Section 8 tenants to find.

Short Sales

TheShortSaleService.com: They’ll handle the short sale for you. Stop pushing paper around and spend your time more productively in your business.

Contractors

Use these sites to locate contractors if you need to do any repairs or rehab work.

Contractors.com

NeedContractor.com

Property Management

NARPM.org (National Association of Residential Property Managers) is a good place to start when looking for a property manager.

CompleteLandlord.com: Forms, letters, agreements, software and other resources for being a successful landlord.

Landlord411.com: More resources for landlords including tenant screening.

ClearNow.com: A leader in electronic rent collection, ClearNow, saves you a lot of time and hassle with collecting and depositing checks.

Rentomatic.com also automates your rent collection but looks like it might have a few extra features such as maintenance tracking and advertising of vacancies.

Tenant Screening

NTNonline.com: The National Tenant Network has been offering quality screening services for more than 25 years.

1031 Exchange

A 1031 exchange allows you to defer the payment of capital gains taxes that would otherwise be due on the sale of a property if you exchange it for another appropriate property. It’s a tool that should be in every real estate investors toolbox.

1031.org: The Federation of Exchange Accommodators is the professional trade association for qualified intermediaries under IRC §1031 and you can use this site to locate members of the FEA to act as your Exchange Accommodator.

1031x.com is one such member organization and is available to help you with your 1031 exchanges.

I'm sure that at least some of these resources will prove to be very useful for you. Don't forget to share your experiences in the comments section below so we have feedback and current information on these providers.

To Your Success,

Scott Roemermann.

5 Tips To Become A Better Investor Next Year

2012-04-03T08:52:00.000-07:00

Some good tips from Matthew Insardi on stepping up your investing game.

Update Your Marketing – You must always be ahead of the curve. In todays information age marketing strategies are constantly changing. No matter how successful you were this year make sure you max out your potential profits by tweaking your marketing plan and implementing new strategies.
Decrease Your Tax Liability – Call your CPA today. Don’t wait until tax time. You can make donations and gifts that will reduce your taxes and give back to the community. I’m always looking for a win win and theres nothing better than helping those in need. Make sure you have a great CPA on your power team that you stay in constant contact with.
Generate New Business Now – Don’t wait until next year to ramp up your marketing efforts. You want to start the new year with a bang so before this year is up make at least 10 new contacts. Run your mouth! In a good way of course. Everyone should know what you do. Set 10 appointments before the end of the year and you will crush January.
Educate Yourself – Never stop learning. Buy that coaching book you had your eye on. Go to a seminar and speak or listen and follow through with action. I read motivation every morning and learn techniques every evening. Apply the knowledge you learn and you will see the increase in your business and in your life next year.
Take A Break – Sound crazy to some of you, but take a week off and spend it with your family, friends, or alone finding more about yourself. Don’t focus on work. Recharge your body and mind and re-fire your ambition.

PS. So if you need an additional wholesaler to add to your stable, of if you ARE a wholesaler and would like to work together on deals then sign up at my site.http://dcmetrohousedeals.com/

Also, if you looking for a mentor...and want me to hold you by the hand while we do deals than visit my site at... http://www.wholesaling-houses.com/
Good Investing

Derek

Wholesaling Real Estate - 3 Strategies to Find Deals

2012-04-03T08:43:00.000-07:00

Here is a great article By Matthew Insardi onfinding wholesale deals.

Real estate investing is an incredible way to live the life of your dreams. You can have any lifestyle that you can imagine. You work when you want and with whom you want. You have the ability to make as much money as you can imagine all you have to do is put in the effort.

With that being said there are many different forms of real estate investing. In this article we will be focusing on wholesaling. So you have your buyers list and you have your business set up now all you need are properties to wholesale. Where do you find the deals?

There are three different methods to find deals fast. Direct mail, internet marketing and bandit signs are incredible ways to get your name out there and start generating leads.

Using direct mail generates a great response. Well where do you find people to mail the postcard or letter to? You need to use a list. A couple of great list services are us leads and listsource.com. Now you want to target those lists. Look for people who just inherited a house. They don't have the emotional ties and usually just want to get rid of the property. Also focus on probate lists, pre foreclosures and absentee owners lists. These will give you ample leads to start your wholesaling business. Now you have your list send them a letter requesting to purchase their property and tell them how they can reach you and you will receive calls. It's that easy.

Internet marketing is an incredible way to generate leads instantly. By setting up a pay-per-click campaign with Google, yahoo, or Bing you can have leads in just a few hours. Start by searching keywords like "we buy houses" or "buy my house fast" Then you write a quick ad and have them land on your webpage where they can fill out a form with their name number and some facts about the property. After you receive their information you can call them and set up the appointment to go and see the property. Other free sources to use for generating leads from the internet are Facebook fan pages, Twitter, Craigslist, backpage, and eBay classifieds. Develop a marketing plan and place small little ads every day and you will see a huge return.

Bandit signs you might think they are a waste of time, but they can generate some of the best leads quickly. These are really easy to set up. Just go get regular white corrugated signs and write with a black marker "we buy houses with cash fast" and leave your number where they can reach you. Now you’re saying hey won't those get you a fine? Well check with your city to see if or where you can put them up. We put them up on the weekends and take them down before the end of the weekend. Make sure you put about 100 out at a time in high traffic areas where cars come to a stop so they can read the number and trust me you will receive calls.

These are three great and relatively inexpensive ways you can start generating leads for your wholesaling real estate business today.

Learn how to access our wholesale properties at 30-60% below market value for a fix and flip or cash flow property.

Article Source: http://EzineArticles.com/?expert=Matthew_Insardi

Three Mistakes New Real Estate Investors Make and How to Avoid Them

2012-04-01T08:43:00.001-07:00

As an active investor and willing presenter at local real estate investment clubs, I am often asked about what common mistakes new investors make. Regrettably, I am rarely asked how to avoid the mistakes. The list of mistakes new investors can make is unfortunately rather long. In this post I am going to focus on three mistakes I find as prevalent, annoying and altogether avoidable.

New Investor Mistake #1: The “Shooting Star” Syndrome

I am sure you have seen this investor if you have been in this business for more than 6 months. Their passion burns bright. They are buying every book and education program insight. They are active contributors on BiggerPockets Forums and other real estate sites
.
Then, without warning, their passion is gone — the books go unread, the programs unwrapped and you never see them post another comment. It is this rush of passion combined with the sudden disappearance of interest that has caused me to call these investors the “Shooting Stars”.
If you see yourself, a family member or friend acting in this manner, ask yourself or them what you/they have learned and what you/they want to accomplish with the business. If you can step in while the passion is still burning and get them to stay focused, you might be able to keep them in the game. I have found a two-step process that works best.

First, I ask the “Shooting Star” to clearly outline why they think real estate is the answer and what they expect to get out of the business.

You will likely get high-level non measurable answers. Such as, being successful in real estate can give me freedom, allow me to quit my job or make me rich. None of these answers are good enough. I need them to think about how much money they want to make a month or year. I want them to talk about why they want freedom or the ability to quit their job. I want them to think about why they are in this business and what they expect from the business.

Second, get them to set goals in 90-day intervals. Set a one-year goal and then break it down into small intervals, so we can show and measurable progress. If you can create achievable short term goals, you will continue making progress instead of giving up before you even began.
What are your 90-day goals and how do you track them?

Please don’t be a “shooting star”. This is a great business it just takes time to get the momentum going.

New Investor Mistake #2: Angry Math Teachers

The most common “Angry Math Teacher” is “analysis by paralysis”. When you spend more time analyzing a deal than looking at the property, you have a problem. I am sorry, but a deal is a deal and no amount of analyzing is going to make a deal look worse or better.

If you are constantly tweaking a few numbers to make the deal work, it isn’t a good deal. Move on to the next one. A marginal deal is not a deal.

Another “Angry Math Teacher” is “Excel Kong Fu”. This is the investor who can manipulate a spreadsheet and make it calculate 10-year Performa’s, depreciation scales, rental rate escalations, and so on, before they even start on their first deal. All of that stuff is great, but instead of spending hours building endless excel sheets please go out and look at more properties.

Remember, a Deal is a Deal and a fancy Excel workbook won’t help a bad deal look better.
The good news is that both of these issues are actually easy to fix. It starts with getting a baseline understanding of your market, and is followed by creating your criteria to what a deal is.

Once you have your criteria, start executing offers on properties that match your criteria and ignore the ones that don’t. Don’t let the “Angry Math Teachers” waste your time or worse yet, cause you to buy a marginal deal.

New Investor Mistake #3: Karma

The final mistake is “Karma” — more importantly what it takes to get Karma to work for you.
I run into new investors all the time who have all the energy in the world, they are just looking for that one break. They know to their core that all they need to be successful is one lucky break and they will do the rest.

I am sure this strategy has worked for a lucky few but I wouldn’t count on it. Instead of hoping positive energy will equal success and that one big break, I suggest you focus on creating value.
There are lots of new investors with no money. However if you have time, passion and energy you can be successful, but it will take work and commitment.

Those with no money need to focus on their market; they must understand value, and be able to spot tremendous deals and solve seller problems. If the new investor can spend their energy in this fashion, they will attract well-funded investors that are long on capital and short on time.

Karma will smile on the investor who does that and the deal flow will start. Once you are known as an expert in a market segment and can spot or create deals, you will have Karma on your side.
Let me be clear – Karma is a great partner to have as a new investor; the harder you work, the better your chance of seeing Karma pay you back.

So get to work, learn your market, meet new people and you will eventually have Karma working for you.

PS. So if you need an additional wholesaler to add to your stable, of if you ARE a wholesaler and would like to work together on deals then sign up at my site.http://dcmetrohousedeals.com/

Also, if you looking for a mentor...and want me to hold you by the hand while we do deals than visit my site at... http://www.wholesaling-houses.com/
Good Investing

Derek

Free Classified Ads for your Real Estate Business

2012-03-30T07:09:00.000-07:00

300+ Lists of Top Free Classified Ads Sites

Do you post free classifieds to sell your properties or to find buyers. If you don't you need to. Here is a list of top free classified ads where you can post your ads for free. The sites are arranged alphabetically and all links are working. If you find any error on content, please let me know so that I can remove the link.

The lists contains 313 active lists of free classified ads mostly available to all countries. If you are marketing your properties or have some products to sell, you may try to post them in the following lists. If you have some services to offer the following on my top list are the best options so far.

If you want to reproduce or reprint this lists, reproduction instruction can be found below the article.

My top lists are:

Webcosmo.com Free Classified
Craigslist.org
Adlanpro.com
Gumtree.com
Adpost.com
Hoobly.com
USfreeads.com
Hotfrog.com

Here is the lists of Free Classified Ads Sites.

Easy Ways To Get Real Estate Leads

2012-03-29T20:27:00.000-07:00

By John Glover, Toledo Investment Deals

As an investor you need Easy Ways To Get Real Estate Leads. Without them you will have a hard time obtaining or selling any real estate property. Having multiple ways of generating leads can make for a more satisfying investing experience for the newbie as well as the seasoned investor. Here are a few steps to getting quality Real Estate Leads.

BUY REAL ESTATE LEADS:

Real estate leads are provided by a number of companies and have been around for years. Buying leads may sound foreign to you but the practice has been used by other industries for years like, Insurance Companies, Software Companies, Accounting Firms and Home Security Companies. So you too can consider this as an option.

BE VISIBLE:

People cannot contact you if they don't know you exist. This is where your visibility comes into play. Online visibility is a big part of this, which is why search engine optimization is such a hot topic among real estate investors. The more visible you are online, the more likely people will be able to find you.
You can also increase your visibility by publishing articles in your local newspaper, publishing articles and press releases online, being active in your community, conducting free seminars, and other aspects of PR. Visibility and awareness are the first steps to generating real estate leads, FREE real estate leads.

BE VALUABLE:

The investors who are most successful with real estate lead generation are those who understand the concept of "perceived value." When a person perceives something as being valuable, they naturally want that thing. In real estate terms, this perceived value comes from many elements.
An investor with unique knowledge of a certain niche or one who offers better properties or one who has a proven track record of client success or one who streamlines the process by networking with mortgage folks.

These are all ways a real estate investor can increase his or her perceived value, which is the value your audience perceives you to have.

You can also create an item with a high perceived value, and you can in turn use this perception of value to generate leads. Let's examine the concept of "free reports" as an example. Some invetors use this approach to real estate lead generation, but they botch the strategy because the report in question does not have a high enough perceived value — not by a long shot.

A report entitled "Top Ten Home-Buying Tips" does not have a strong perceived value and therefore will not generate many leads. Why? Because (A) it is generic, (B) it does not identify closely enough with the target audience, and (C) it's information that you can find anywhere. It is not exclusive "must read" information. It will not motivate the average reader.

So how do you increase the value of such a report? Easy. You make it a "must read" document. Instead of basic home buying tips, why not boost the value and put people under pressure to read the piece? Why not promote something like this: "Which City/Town Schools Are the Best? Exclusive Report Tells All".

This kind of document would have a much better chance of motivating people and generating leads. It would be easy to tie into real estate, too, so most of your leads would be qualified ones. But this is just something I came up with off the top of my head. You could create an even better "hot button" report with a little imagination and knowledge about your community.
To take this approach even further, you can add a visual element. Have a graphic designer create an eye-catching cover for your report, along with some thumbnail-sized versions to put on your website.

BE TRUSTWORTHY:

People don't trust strangers. We talked about that already. So if you cold call people as a stranger, you already face an uphill climb in terms of real estate lead generation. The key, then, is to inspire trust among your target audience. This will help you overcome the natural skepticism people have and make them more likely to contact you.

How do you generate trust? Testimonials help, especially when you use the former client's full name, photo, and neighborhood. A long track record helps too, as do awards, just be sure to tie these back to the success and satisfaction of your former clients.

You can also generate trust by sharing your expertise with people. Real estate blogging is a great example of this. I'm doing it now. If you publish a real estate blog over a long period of time, and people find that blog online (through search engines or otherwise), they will feel as if they already know you a little. If you publish quality content, people will realize that (A) you know your market, (B) you are active in that market, and (C) you obviously like to help people. Suddenly, you're not such a stranger.

Practice these steps and methods and I am sure you will find they work pretty well and I am sure you will find other Easy Ways To Generate Real Estate Leads.

About John Glover.

John Glover is a former General Motors employee who has been a full time real estate investor in NW Ohio since 2007, specializing in Wholesales, Subject 2's, Rehab flips, working with Private Lenders and web based marketing.To learn more visit http://toledoinvestmentdeals.com

Top 10 Things Online Investors Need

2012-03-28T20:25:00.002-07:00

By John Glover, Toledo Investment Deals

There are more and more individuals investing in real estate online today than there has ever been before. Known to many as virtual investing there are certain things needed to be successful. I'll outline these 10 things you need and why they're so important.

WEBSITE:

A website is the key to your virtual investing. To be honest even if you only invest locally in your area a website gives you an advantage over every other investor in your area that doesn't have one. Why? People tend to look up information for what they want or need, more and more online and if you have a presence there it helps you.
Your website also is your business card on the internet allowing you to do business with people all over the world. Because of this you want to make sure your site looks professional. With a site your reach is far greater than those who only use signs locally.

BLOG:

A blog allows you to write about your experiences and the knowledge you have. It also allows you to market yourself and your business on the internet. Utilizing a blog correctly lets your readers know you're an expert in your field and also you're someone they should or could be doing business with.
From your entries on your blog you can increase a potential clients comfort level in dealing with you. It's also a great way of making new contacts within the industry.
Websites and Blogs can now be a 1 stop shop. I recommend using a WordPress Platform for this purpose, it makes it easier to setup and maintain. If you're not sure how to go about this I have found a site where they will do your website and blog for you. Check it out HERE.

ONLINE HOSTING:

This is the company where your website and blog will be hosted/stored so people can visit your site online. Getting a hosting account is good for several reasons, you can place videos, documents, forms, applications, pictures, PDF files and more on your account so visitors or clients can obtain them.
I recommend using http://hostgator.com because they have great service and I've never had a problem with them. Select the "baby" plan and use the coupon code "for5pennies" so you can get your first month of service for 5 cents.

EMAIL AUTORESPONDER:

An email autoresponder is needed for several reasons. You can place signup forms on your site, this way all the visitors who come to your site can sign up and now you have a way of contacting them to let them know what properties you have to offer.
This type of system also will organize your list for you freeing up your own personal email. It allows you to write 1 email and send it to everyone on your list, most personal emails systems will only allow 500 emails to be sent within an hour, with this you avoid that.
I recommend and use http://aweber.com but there are many other services out there.

FACEBOOK:

The name alone says it all. If you're not using it you need to start today! Facebook has over 1 Billion users…… You heard me correctly 1 Billion with a B. Just imagine the reach you could have being able to connect to this many people.
Facebook is like a FREE advertising billboard all over the world. It will let you connect to people within your community who use Facebook as well as those within your same niche or industry. If there is 1 drawback to Facebook, it only allows you to connect to 5000 people with your personal account. So, if you're from a large community you may need to create multiple accounts or better yet create a Facebook Fan Page for yourself or your business. Read more about Fan Pages HERE
Go to http://facebook.com to get started.

TWITTER:

It has the second most users next to Facebook on the net, so you know it's a powerful tool when used correctly. It's like a mini blog of sorts. It allows you to make small posts and have all your followers see it. The best part is when your followers begin to retweet your post so their followers see it also, greatly extending the reach of your message. Here is a simple tool that allows you to get your message retweeted, and the best part…… It's Free! http://retweet.it.
When using Twitter you can greatly increase the traffic to your site or property advertisements online. I found a great article that goes more in depth on how to do this, it's called Blowing Up Your Blow With Twitter. There is also great resources on apps and tools to use on Twitter to make your experience easier and more enjoyable.
Go to http://twitter.com to get started.

FORUMS:

Joining forums may seem like a waste of time to many but it's actually worth the time and effort you put into it. Forums are topic specific sites that allow you to connect and network with others interested in your niche. Here's the best part…… Active Investors tend to visit them often reading what has been posted by the members. This is a great way of potentially obtaining new investors to your list or getting leads from other forum users.
Here are a few that I'm a member of http://magicbullets.com – http://prorealestatenetwork.com – http://realestatewebmasters.com – http://biggerpockets.com

GROUPS:

These are like mini-forums. groups may be specific to a city, state, style of investing or a group of people. Sites like Google, Yahoo, Bing, AOL and other investment sites have real estate groups. When investing over the internet your reach needs to be as large as it possibly can.
Some of the better groups I've found have been real estate groups on Ebay, Craigslist and Facebook.

COMPUTER/LAPTOP:

You will need a good computer or laptop because you will spend some time on it getting everything together. You want to make sure you have one that will allow you to do all the things you need to do without it bogging down or locking up on you. I have a friend who purchased one of those economical laptops and he lost everything several time. Within 1 year he had to take his laptop back for repairs 5 times. Luckily for him he purchased the insurance and was able to get it replaced. Guess what he did. He upgraded to a better computer.
I recommend going with 1 of these laptops because of their quality.

Stay Away From Acer and other lower level computers.

MARKETING PLAN:

The MOST IMPORTANT piece to the puzzle. Your marketing plan is the thing that allows you to put everything together so you can get maximum results from your efforts. Make sure that everything is tied together, so when you post on your blog it will automatically go to the other sites you're on. This will save you time so you don't have to log into each account and post the same thing over and over again.
There are many things that go into a marketing plan and I could make an entire post just about that. To save some time and to hit on the main points here are a few pointers.

Make sure your user name and email is consistent over all sites. This makes it easier for people to find you.
Provide attention catching titles. Something that will make people want to read or see what you have to say.
Use pictures and video. People are visual.
Provide contact information or redirect people back to your site.
Make sure to target your specific audience. The effects of marketing real estate to a scrapbooking group will not be as effective as it would to a real estate investing group.

I invite you to give your feedback.

About John Glover.

Top 10 Bandit Sign Mistakes

2012-03-28T20:10:00.000-07:00

By John Glover, Toledo Investment Deals

I know I’ve been talking a lot lately about Bandit Signs and how to use them. Well, I really see the need for getting this information out there with spring being here, the new investors I see out there and the mistakes being made by those who use Bandit Signs.

I’ve done a couple of videos on Bandit Signs which I’m sure you’ve seen by now where i gave helpful tips. In this post I’m covering the Top 10 Bandit Sign Mistakes investors are making and how to correct them.

Lets get started:

BREAKING THE LAW – I can’t stress this enough! Know your locations laws on the usage of Bandit Signs. If they are outlawed then look to other means for getting your message out. We as real estate investors already have a negative image we’re fighting so don’t make it worse by breaking the law. ****Solution**** Use 4×6 postcards with your message on them and post them on message boards at your church, grocery store, laundromat, community center or any place where they have a message board.

WRONG SIZE – When using bandit signs you want to make sure your signs are able to be noticed by those who pass them by. I’ve seen signs that were 12×18; these may be cheaper but they are also harder to see by potential clients who are passing by in their cars. ****Solution**** Spend a few dollars more and get Bandit Signs that are 18×24. The cost will be more than the smaller signs but order 50 and not 100. The larger signs are easier to see plus you have the added advantage of more space for your message.

SAYING TOO MUCH – Investors often have too much to say on their Bandit Signs. Depending on who you’re marketing to, sellers or buyers, you must not have a long message or they may pass your sign trying to read all of it and not get your number off of it. ****Solution**** Make your message short and to the point. Use 1 liners, you don’t have to use a complete sentence.

THE WRONG MESSAGE – In many cases I see the old tried and true “We Buy Houses” message on the majority of the Bandit Signs out there. Ask yourself, does that really work? Most people in any decent size city with real estate investors has seen this message SO much that it’s not effective any more. When it comes to messages for buyers most investors will use the “For Sale By Owner” signs. This is another one that doesn’t garner much attention anymore. ****Solution****

(A Couple Messages for Sellers)
Sell Me Your House Today
Need To Sell I’m Buying
(A Couple Messages For Buyers)
Help! Buy My House
Tired Homeowner Sale

SIGN PLACEMENT – I see Bandit Signs placed wrong all the time. I understand many times you may be placing them out late at night, in a rush or in an area with other signs so you’re trying to get the best placement possible so that your sign is noticed. ****Solution**** Place your Bandit Signs in areas where people have to stop and look at them like traffic lights, stop signs, freeway exists, gas stations (if possible). Place your signs in an area where you don’t have to compete for views, if there are 3 or 4 other signs there find another place to put your sign. Place them in position so that they can be easily viewed and read by those who will pass them by. Never and I do mean Never put your sign in the middle of the block where people don’t have to stop, if you do, then you just wasted your time and your sign.

NO NUMBER – Believe it or not I’ve actually seen Bandit Signs with a message and no contact info. ****Solution**** Always, Always, Always, Always make sure you have your contact number on your Bandit Signs. If possible make your number as large as possible so that it fills up a whole line. As an added twist put your number first, on the top of your Bandit Signs. If you have a website, a short easy to remember website add it to your sign if it works and looks good.

OVERKILL – investors, especially beginners will fall victim to this. This is when you see a particular Bandit Sign at every corner you come to. You see it so much it’s annoying. ****Solution**** When using Bandit Signs to attract sellers target a specific area and put out 5 to 10 signs. Avoid the urge of wanting to blanket as much of the city as possible. By targeting specific areas at a time you can better track your leads and learn that area, plus you can avoid getting calls for areas you don’t want to deal with.

COLORS – I’ve seen Bandit Signs in black & white, blue & yellow, red & green, and purple & white. Some colors just wont cut it, some might. ****Solution**** When deciding on your colors for your signs use those that you know will work. yellow & black, red & white, blue & white and try the new hot colors hot pink and black.

FALSE MESSAGE – I’ve seen Bandit Signs that say “I’ll buy you house in 2 days” and other stuff like that. ****Solution**** Don’t say things on your sign that you can’t fulfill. If you do and you don’t perform the word will get around and your leads will dry up.

NO MARKETING – How many so-called real estate investors do you know that say they invest but yet they don’t do any marketing. ****Solution**** As long as Bandit Signs are not against the law in your area you are fighting an uphill battle by not using Bandit Signs. They can be your key to getting leads and massively increasing your real estate investing business.

Please share your thoughts or comments and let me know if you witness any other mistakes investors make with their Bandit signs.

About John Glover.

How to Build a Sign Stapler in 5 Steps

2012-03-28T19:21:00.002-07:00

Derek

Bandit signs are essential tools for finding real estate deals and selling houses to. Ok, here is my How To guide on building your own sign stapling device… in just five easy steps! For five easy payments of $19.95!! Ok, the last part isn’t true. I will actually give you a list of what I bought and a breakdown of the price.

The Backstory…

Before I get into that, I wanted to give you a brief back story on this. I use badit signs for my marketing for motivated sellers. I also read about a sign stapling device, used primarily for easily putting up bandit signs. I thought it was a great idea, but then I saw the price. At over $100, I thought I could build one myself and apply the savings toward the actual signs. Of course, there were no walkthroughs on how to do this, hence this How To.

Without Further Ado…

Alright, here we go. Below is the list of items I bought, along with the individual prices and the tools needed to complete the job:
Supplies Needed
1. 1 1 ½” x 5’ ABS Pipe – $4.26

2. 1 Arrow HT50P HammerTacker stapler – $29.97

3. 1 1 ½” – 1 ¼” Rubber DRN Connector – $4.24

4. 1 Alum-Flat ⅛” x 1 ¼” x 3’ – $8.56

5. 2 #28 Clamps – $2.17

6. 1 box of Arrow #508 T50 ½” staples, 1250 count – $2.97

Tools Needed
1. Medium-Sized Flat Head Screwdriver
2. That’s it… no, really.

The 5-step Process

1. Set oven to 350˚… oops, no that’s dinner. The first step is to…. Load the staples in the stapler! Sounds simple, I know, but that’s a good way to start off. Plus, once you have the handle of the stapler in the pipe, it’s much harder to load the staples.
2. Attach the 1 ½” side of the DRN connector to the top of the ABS pipe, verifying that the rubber stop inside in the middle is flush with end of the pipe; tighten the bottom of the DRN.

3. Insert the HT50P stapler handle into the 1 ¼” end of the DRN, making yellow grip on the handle disappear into the pipe; tighten the top of DRN connector.

4. Put both #28 clamps over the outside of the pipe from the bottom and slide them toward the top.

5. Insert the Alum-Flat into the two #28 clamps, lined up with the face of the HT50P and about 1” under where the staples come out; tighten one clamp at the bottom and one about 8” down from the top of the aluminum piece.

And that’s it! You’re done. How easy was that? And all that for $52.17 plus tax. That’s about $75 that was saved that goes to pay for the actual signs. Not too bad a DIY project for somebody who isn’t really a DIY kind of person. If you have any questions about the process, leave them in the comments section.

Congratulations! Here’s the finished sign stapling device:

6 Real Estate Closing Negotiation Techniques

2012-03-20T06:15:00.000-07:00

by Jeff Adams

Closing the deal is the last and final step of the negotiating process in real estate investing. Deciding which method of negotiation will be the most beneficial to you as the investor. You are probably asking your self right now - So, Jeff Adams, how do you you seal the deal?

There are a variety of methods to consider when "sealing the deal." Closing on a real estate deal is the icing on the cake...the best part. It signifies that all of your hard work has been worth it and the time and effort put into the whole negotiating process has finally come to fruition. The method an investor chooses to incorporate in the transaction is contingent on the specifics of each deal that is being closed upon. A successful transaction should be beneficial to both the buyer and the seller.

6 Closing Negotiation Methods
There are several methods to consider in regards to closing a real estate deal. Figuring out which one works the best for each deal is the most important element. Once a real estate investor has decided on the method he/she will put into place, the ball gets rolling and home ownership is moments away. The route an investor chooses to take can either make the closing process a smooth experience or a tedious one.

Justify Your Offer Technique

Any offer that is put on the table typically comes with a justification factor. The closing of any deal involves the satisfaction of both buyers and sellers alike. For this reason, "Justifying" your offer in regards to the terms and conditions is imperative. For example, as a buyer, if you make an offer on a specific piece of property, you have to have the information and the ability to offer reasons and financial statistics that confirm and justify the numbers.

In the situation of a Rehab or Wholesale real estate investor buyer who made an offer on a distressed property their chances of success will improve by giving the seller a breakdown of what the actual costs would be if they did choose to work with a real estate agent, repair and rehabilitation costs, escrow and title costs involved, termite inspection costs, appraisal fees, and other closing costs. this real estate negotiation technique gives the buyer the upper hand. The more information that a buyer can divulge, the better it is for both parties involved.

Control The Options Technique

Another technique to consider is the "Yes or Yes" closing technique, which can also be referred to "No is not an option" technique. What this closing method entails is that a seller presents several options to a buyer because this strategy makes it more difficult for a buyer to say no. Giving a seller the power of choice speaks volumes. A buyer is under the intention that he/she is in control, which they technically are, but within the parameters that you have established and presented. In addition, allowing for a flexibility of meeting schedules, closing dates, and payment methods is also a way to motivate potential sellers.

Sleep On It Technique

If a seller is skeptical or apprehensive about closing on a deal, offering a "Sleep on It' technique may be a deal maker. Dealing with a seller that is unsure can present a host of problems, so in order to avoid this insecurity issue, giving the seller the opportunity to take the agreement home and think about it offers a greater sense of security. The key to this closing technique is getting the seller to actually sign the agreement with the indication that they do have a limited time period where he/she can re-consider their decision. The seller receives a greater level of comfort and is generally prone to holding onto a home or property that they technically already own.

Knowledge Is Power Technique

Educating sellers demonstrates that you are willing to share your expertise and guidance throughout the negotiating process and eventual closing of the deal is the key component of the "Knowledge is Power" closing technique. Sellers are more likely to work with buyers that are open, hones, and upfront with them about what they are getting into. If you are a buyer who is eager to educate seller on what is exactly involved regarding the deal is also a good way to establish a level of trust with your seller.

Act Now Technique

When time is of the essence, consider the "Act Now!" closing technique. If a buyer creates a sense of urgency and highlights the current real estate economy that we are experiencing, helps to accelerate the deal process. Decreasing home prices and increasing interest rates are great motivators to incite the enthusiasm of potential sellers. The mention of possible loss on a deal also stimulates and intrigues a potential seller.

All About "You" Technique

Another technique to consider is one that is "all about the seller or buyer." Often times, sellers want to know what benefit and profit a specific sale has to offer to them. The "What's in it for me?" closing technique comes into play with this method, as the sellers' situation is the main concern and focus in regards to the sale. Most sellers want to feel like they are getting the most out of the deal as they possibly can and offering them an extra bonus can often seal the deal. It is key to note that a seller will be more willing to sign an agreement if the seller believes that he/she is getting away with more than what the terms and conditions that were originally anticipated and negotiated.

Once you have decided on how to proceed with the closing process, you can securely move forward in the overall process of home/property ownership. Once the deal has been sealed, the possibilities on both current and future investments are endless.

PS. So if you need an additional wholesaler to add to your stable, of if you ARE a wholesaler and would like to work together on deals then sign up at my site.http://dcmetrohousedeals.com/

Also, if you looking for a mentor...and want me to hold you by the hand while we do deals than visit my site at... http://www.wholesaling-houses.com/

Buying with Cash and Ignoring ARV

2012-03-19T06:41:00.001-07:00

I don’t ever remember a time when so many investment properties were being purchased with cash.

With today’s unbelievable real estate prices, many investors are simply forgoing traditional financing as well as hard money financing in favor of cash purchases. In fact, many investors are simply converting their retirement accounts to self-directed accounts and paying cash for investment properties through their IRAs, 401Ks, etc.

One of the reasons cash purchases have become the norm for many investors is because the price-point of many investment properties doesn’t warrant the headache of trying to get financing. Many investors would rather shell out 40K for an acquisition and rehab and let their money earn a solid return – typically much higher than in a traditional investment vehicle like stocks, bonds, etc.
However, I think there are a number of investors who probably prefer to get financing for an inexpensive property, but some of the constraints associated with conventional financing make it too difficult. As crazy as it sounds, many of these properties, selling for less than a third of what they sold for just a few years ago, can’t get financed in the current environment. Sometimes it’s the fact that appraisals are just so bad as a result of heavy foreclosure activity. Other times it’s because lenders aren’t willing to lend under a certain price threshold. Whatever the case, lower priced investment properties just aren’t great candidates for financing right now and investors have responded by buying with cash in record numbers.

Interestingly, with all of the buying activity that is taking place, investors are paying less and less attention to ARV (after repaired value). It’s interesting to me because it’s been pounded into our heads for so many years that a property purchased and rehabbed well below market value was the primary distinction of a good real estate investment. Now, with prices and comparables in the toilet, investors care more about the kind of cashflow that a property will produce and less about the amount of equity (if any) a property may have. Understandably, if a property can be purchased and renovated for 40% of what it would cost to build new while also producing double digit yearly yields … does it really matter if you’re buying at market value? For a cash buyer that doesn’t have to worry about an appraisal, it probably doesn’t. The cash buyer is probably more interested in cashflow and any equity that develops as a result of recovering prices is icing on the cake.

I think most investors realize that the opportunity to buy at these insanely low prices will not last forever. Prices will recover at some point – it’s simply not possible to maintain values in markets that are adding jobs and people. For investors that have cash sitting in bank accounts earning less than 1%, don’t get scared away by depressed prices. The opportunity to put that cash to work in this real estate market is unprecedented.

PS. So if you need an additional wholesaler to add to your stable, of if you ARE a wholesaler and would like to work together on deals then sign up at my site.http://dcmetrohousedeals.com/

Also, if you looking for a mentor...and want me to hold you by the hand while we do deals than visit my site at... http://www.wholesaling-houses.com/

Will You Survive the First 12 Months?

2012-03-13T04:43:00.002-07:00

In theory, this business is easy. Just do some marketing, buy some houses, and make millions before you know it. Of course, we all know theory is a bunch of B.S. This business is tough and there is plenty of evidence to prove it. Few people achieve millionaire status or even survive the first 12 months. So how do you survive the first 12 months? Well, I am going to give you the "magic" pill (that’s not really magic at all).

The "magic" pill is to just keep plugging along with the end goal in mind.

I remember when I first started in this business, I would attend all of the real estate investor meetings and ask all of the successful folks how they did it. What was their secret? Their secret was that they worked hard, never gave up and were consistently marketing. That is my secret too.

This business certainly does not take any genius or above average intelligence. It takes someone who can look themselves in the mirror and tell themselves that they will never quit, despite all obstacles.

A while back I was out to lunch with an investor friend of mine who was having some tough times with his business. I asked him what he was going to do and he told me "I am going to keep moving, I looked at the alternative. The alternative is spending the next 30 years in a cubicle, so right now things really aren’t that bad."

I thought that was such a profound statement. Even if you want to quit this business (which we all do at times, especially in the beginning-I wanted to quit at least once a month) look at the alternative if you do quit. You will be doing the same job, getting the same results, and you will not be creating a strong financial future for yourself. Even if you don’t want to build a real estate empire, simply buying a few houses will make you a millionaire and give you a very comfortable retirement.

So when self-doubt creeps in (and it will) and the devil is on your shoulder trying to get you to quit, do the following:

1. Read the classics "Think and Grow Rich" by Napoleon Hill and "The Magic of Thinking Big" by David Schwartz.

2. Look at the big picture and see yourself 10 years from now with all of your houses and a huge confident smile on your face.

3. Call your mentor, your friend, or whomever and let them give you some words of encouragement.

4. Remember "Quitters never win, and winners never quit" If I could reach through my computer and shake some sense into you when you were trying to quit, I would. I hate to see people quit, especially when I know anyone can do this business.

On the flip side, as I always tell my students, because most people will quit this business, there never really is any competition at the top.

So keep plugging along, read positive books and believe in yourself, because I do.

PS. So if you need an additional wholesaler to add to your stable, of if you ARE a wholesaler and would like to work together on deals then sign up at my site.http://dcmetrohousedeals.com/

Also, if you looking for a mentor...and want me to hold you by the hand while we do deals than visit my site at... http://www.wholesaling-houses.com/

How the economy is effecting landlords & wholesalers in 2012

2012-03-12T16:53:00.000-07:00

by Brian Davis |February 10 ,2012 |

It’s easy to understand that unemployed people aren’t buying houses, thus depriving demand within the real estate market. However, the entire cycle is far more pervasive, and merits a closer look and how it effects your real estate business.

These unemployed people often stop paying their mortgage, their rent, their auto loans, their credit card bills, etc. Thus, as they start losing their homes to foreclosure and eviction, the supply side of real estate spikes upward, at the same time the demand side is dropping.
Tricky part is that also means a rise in rental demand by less than ideal tenants.
Further depressing real estate markets is the fact that foreclosed homes sell for 25-40% less than listed homes for sale, because they are generally sold without an opportunity to inspect the interior of the property (for legal reasons).
The unemployed also stop going out to eat, stop shopping at local businesses, stop traveling, and generally withdraw from the overall economy as much as possible in an attempt to save money. This deprives local businesses of revenues, which leads to even more layoffs and even less hiring.
Now, several years later, the unemployed are starting to quit looking for work entirely. Some of these are reluctantly retiring baby boomers who would not have elected to retire for another 5-15 years, while others are returning to school, and still others are simply giving up and going on the proverbial dole. The unemployment rate today is 8.3 percent, down from 9.5% two years ago, which sounds like an improvement, until looking closer at the numbers.
Based on population growth, America should have seen 4 million people enter the job market (either employed or looking for employment) in the last two years, but instead 1 million people have actually exited the job market. For the first time in 50 years, the number of people in the labor force has shrunk.
There are other problems associated with prolonged unemployment, aside from the devastating effects it has on the rest of the economy and real estate market. The long-term unemployed are losing job skills and grow less “employable” – less desirable to employers – with each month of unemployment.
On the governmental level, public coffers have been hit hard by high unemployment, low GDP growth rates, a stagnating real estate market and increasing dependence on entitlement programs. Local, state and federal government deficits (and debts) are skyrocketing, hampering their ability to stimulate the economy.
It also leads to a strong possibility of rising taxes, which further decreases the amount of capital circulating in the investment engines that power business (and therefore job) growth. The drop in real estate values is a particularly sharp blow to local governments, who collect a major portion of their revenues from real estate taxes.
As landlords, that means what – decrease in cash flow or you may be forced in a position of raising rents in a very sensitive economy.
Finally, credit markets remain tight, because the companies who actually have capital to invest/lend are reluctant to do so, as there are no sectors of the economy that look like sure winners. Real estate markets remain stagnant, so investors are reluctant to put money into mortgage lending, which means it’s hard for homebuyers to qualify, which means fewer people buy houses, which means the market remains soft.
Likewise, small businesses are suffering and stock markets around the world have seen more erratic fluctuation in the last three years than ever before, making them uncertain as well. Thus, many of those who have money are simply sitting on it, waiting for more promising investments to present themselves.
In short, the effects of a battered real estate market and industry, high unemployment, broader economic instability, pinched government budgets and tight credit markets are all self-reinforcing, causing a cycle of economic stagnation. One of the few clear conclusions is that a boost in private sector jobs will increase demand for real estate, offering job growth in the drastically tightened real estate and finance industries, which will push the cycle upward instead of downward. Where those private sector jobs will come from, however, remains a mystery.

If you are looking for excellent Investor deals please visit my site...www.dcmetrohousedeals.com

This "Template" Could Make You A Small Fortune...

2012-03-10T16:48:00.000-08:00

I'm always tinkering with my business, trying to improve it. And as you know when I get a lead from a seller and I think there might be a deal, I send them a written offer.

Well, now I am sending the below email along with the written offer I email to them. I'm doing this so that people have a better understanding of how I can help them and to try and erase any confusion they might have about my offer.

So what I would highly encourage you to do is use the exact template I have below. And I mean exact, because everything is in there for a reason.

Also, you'll notice I included the "comps" for the property. This is important to do so people have proof of the value of their house (and so you can bring them back to reality.) Now use this template to help you close more deals and make more money.

Ms. Smith,

Thank you for calling us yesterday about your property. We have finished evaluating it and our offer is attached to this email.

I wanted to explain how our company can help you, so the offer makes more sense:

When our company pays cash for houses in this current economy we have to buy properties at 60 cents on the dollar. The reason for this is because our financing costs are high and also because many properties that are in foreclosure sell for around this much and we can also buy those. After doing our research we estimate your townhouse is worth $140,000 today. If you go to this link, you can see the comparable properties we used <insert comps link>.

So if we were to pay cash for your property we would not be able to pay more than $84,000. Now I remember you said you owed around $140,000 so that obviously wouldn't be an option (but I did have to put the cash offer on the attached offer form as required by company policy.)

The other offer and what we're typically doing these days is a lease option (also known as rent-to-own.) This is where our company comes in and guarantees your rent payments for a period of 5 years and then we have the option to buy the house any time during the 5 years for a previously agreed upon price.

During this time you don't have to worry about any vacancies (we guarantee the rent), you don't have to worry about maintenance and you don't have to worry about 99% of repairs (our company covers the first $200 of any repair. And since most repairs are leaks, or clogged toilets which cost less than $200, you'll most likely never hear from us.)

I'm sure you're wondering what the "catch" is?

Well, there's really no catch, but let me show you how our company makes money off the rent-to-own.

As I just mentioned, when we do the rent-to-own with you, you have an agreement with our company XYZ Realty Group, where we will take care of everything for 5 years. Then what we do is we put a family in the house with less than perfect credit (nothing major, just a few dings) and we help them achieve home ownership.

Then within the 5 year time frame, their credit has hopefully improved and we help them buy the house. So, when we do this our company policy is that we make 10% off of the rent-to-own properties. For your particular house, since our offer to you is for $150,000 (which is above fair market value), we will sell it to our tenant/buyer for $165,000 or more.

Luckily, you don't have to pay us a dime for our services. The 10% is charged to the tenant/buyer for spending several years with them helping them to buy a house.

Also, just to reiterate, your agreement is with XYZ Realty Group and has nothing to do with the tenant we put in the house. If for some reason we got unlucky and put in a tenant who did not pay rent, you would still get your rent because we guarantee it (and of course we would evict that tenant and put in someone else.)

I know I've written a lot and I hope it made sense. (I'm not the world's best writer, but I wanted to make sure you knew how we could serve you and the options our company provides.)

Please review the offer form and then let me know what questions you have and I will be more than happy to give you a call and go over everything.

Thank you.

Sincerely,

John Doe Investor

___________________________________________________________________________________
(this is not part of the letter)

***If you are looking for excellent Investor deals please visit my site...www.dcmetrohousedeals.com

Derek

The Crucial Steps All New Investors Need To Take

2012-03-07T07:38:00.000-08:00

When I’m at networking events I always get multiple people who come up to me and ask me what they should do first. I then inquire if they have any real estate investing experience and determine how "new" they really are. Most of the people I’ve talked to have maybe read a book or two or purchased a course and that’s about it.

So, the first thing I tell them is to make sure they really want to get into this business and that they’re not just looking to get-rich-quick (you will make a lot of money in this business, but there is a learning process just like any new endeavor).

Of course most people quickly nod their heads and let me know they’re 100% serious and devoted to becoming a successful real estate investor. Next, I tell them they need to get educated (read and learn everything you can about real estate investing). Then I tell them they need to decide on their target market. What zip codes do they plan to invest in? (You want three bedroom, two bathroom properties in decent neighborhoods).

Once they have identified their market, they have to set up the infrastructure for the business. They need to form an LLC, they need to get a phone number, they need to order business cards, they need to create a website.

After a person has their infrastructure set up, the next thing to do is focus on marketing. They need to drive for dollars, send out letters, get on craigslist daily, and put out bandit signs. Once the marketing is started, the fun begins…because then the calls roll in, people learn to evaluate a deal and then eventually close a deal and receive a fat check.

So, after a person has their infrastructure in place they should immediately begin marketing and never stop. Marketing is the lifeblood of this business so please learn to love it because the most successful real estate investors invest the most time in marketing.

If you are looking for excellent Investor deals please visit my site...www.dcmetrohousedeals.com

Should You Do A Lease Option Or Sub 2?

2012-03-03T03:47:00.003-08:00

Whenever I can, I prefer to do a subject-to deal. I only do a lease option deal as a last resort. I usually end up doing lease options with savvy landlords who don't want to give up ownership of the property (they want to keep all of the tax deductions).

Here are a few of the reasons why I like subject-to's better. First, I own the property. The deed is in my company name. Second, I get all of the tax deductions and benefits of owning the property. Third, I don't have to deal with any third parties or sellers because I own the house.

Here's why I want to do lease options last: Because you only control the property, you do not own it. This means you have to trust the owner and you will never do a lease option deal with someone who is in financial trouble. Of course, you don't simply trust the seller. You have your ironclad paperwork. You go to the courthouse and record a memorandum of option to cloud the title on the property (so they can't sell it behind your back). You ALWAYS make the mortgage payment directly to the company (because if you send the owner a check, and they don't pay the mortgage then you're screwed).

In some cases the monthly rent you're paying will be larger than the mortgage payment. Here's an actual deal of mine: I owe the owner $1,000 a month and his mortgage is $890. So, every month I pay the mortgage company $890 and then I send the owner a check for the difference of $110.

You will also want to run a credit check on the seller. Make sure he's not in debt up to his ears. And use an authorization to release form to check the monthly payments and mortgage balance. All of these items are so important because remember you're promising your tenant/buyer that they will have the option to own the home down the line. If your seller goes bankrupt, or puts liens against the property then you won't be able to sell to the tenant/buyer and you'll lose your backend payday of $30,000+.

Luckily, I have never had a problem with a lease option deal. All of the sellers I have worked with have been honest and very thankful for the help I gave them. In a way, this is just like screening a tenant……you screen the sellers up front that way you know your deals will close and you won't have any problems down the line.

One Moment Can Change Your Life

2012-02-29T05:29:00.000-08:00

Anyone who watches TV or reads the newspaper knows who Joe the plumber is (I don't watch TV, but I'm on the Internet and read the newspaper). Think about Joe's situation. A few months ago, Joe is a regular plumber in Anytown, USA. Then because he was at a campaign rally and asked Barack Obama a simple question his life changed forever. He's an instant celebrity and I'm sure his life will never be the same (even if the election is over).

Throughout my investing career I've had many of those defining moments. The first was in college when I was looking to start my own business. I would go to the library weekly and check out books on investing, starting your own business and franchises (many of you know that I hired a franchise consultant and thought about opening a dry cleaning franchise, carpet cleaning franchise and lawn care franchise). Then one day I came across a real estate investing book and I knew that this business was for me. I'm a simple guy and real estate investing just made too much sense not to do it (97 out of 100 millionaires can thank real estate for their fortunes).

Another of those moments was when I decided to get my first mentor. I didn't have much money, but when I looked around at all successful people and when I read their biographies they all had a mentor. I searched online (I really had no clue what I was doing) found a mentor who seemed like he knew what he was doing and took a GIANT leap of faith and put the several thousand dollar program on my credit card…..I believed in myself and have been rewarded ever since. And of course, I never stop believing in my abilities.

A third moment comes to mind when I got one of those "million dollar calls" from a motivated seller. A tired landlord who owned multiple properties and was willing to let me do lease options and other creative things and make a killing. In this business a lot of the time you just chug along. You make $5,000 here, $10,000 here, $30,000 here, but every once in a while you get a $70,000 deal or $80,000 deal that makes your year.

There are several other moments that come to mind. Such as choosing to go to a boot camp, or a networking event, or partnering with another investor. The most important thing about the "defining" moment is that YOU put yourself in that position. I discovered real estate because I went to the library week after week after week. I got my first mentor because I went looking for one. I got the tired landlord who owned multiple properties because I was sending out several thousand pieces of direct mail every month.

You're in charge of your own destiny. You create your own destiny. Put yourself in positions to be successful!

You're about to discover secret real estate deals!

2012-02-28T13:17:00.002-08:00

I would love to be one of your wholesalers. Working with me you will ...

Talk To The Real Seller Of The Property, ME! - Many wholesalers that you speak with are selling other investor properties that they have no control over. My deals are 100% under my control and you'll be dealing with the decision maker from the beginning.

You'll Access Detailed Information About The Properties - This includes comparable sales reports from public records, property maps, my discounted wholesale price, photos... I give you everything you'll need to determine if it's a good deal for you!

You Can Talk To Me Directly- A real phone number is on each listing so that you can contact me with any questions that you may have about the property and discuss price and terms.

What This Website IS NOT - This is not a service or gimmick. I am a wholesaler in the Washington, DC Metropolitan Area (MD,DC,VA) and am offering true "below market" deals for sale. I am looking to assign the deals for a quick, modest profit and move on. I leave the majority of the profit on these deals for YOU!

So if you need an additional wholesaler to add to your stable, of if you ARE a wholesaler and would like to work together on deals then sign up at my site.http://dcmetrohousedeals.com/

Thanks Derek,
DR. Wholesale!

2012-02-28T12:14:00.000-08:00

If You Don’t Invest In Your Education, Then Don’t Expect Success

There is a quote along the lines of "if you want to know the size of a man’s bank account look at the size of his library." Another quote says "rich people have big libraries; poor people have big TV’s." I don’t know who said these, but they are absolutely correct. Quite often, I meet new investors who tell me that they are not going to purchase any courses or buy any products until they get their first deal and have some money (I don’t even say anything to the people who are stupid enough to make a comment like this. They are just a waste of time, because they will never get it).

I first started in this business I was "duped" like many others and lost several thousand dollars. Of course I was royally ticked off, but I just kept going and investing in my education. That is one of the main reasons that I am becoming. It is such common sense, but so many people don’t seem to understand. People don’t want to pay $997 for a course, even though the information in that course could help them buy one more house a year with an average profit of $30,000. Or, people forget that getting a mentor will save you from making tens of thousands of dollars in mistakes--they would rather lose $25,000 on a rehab gone bad, than spend a couple thousand to learn this business the right way.

At a recent networking event, I was talking to an individual that heard me mention that I still invest thousands of dollars a year in my education. This person said "Derek, if you are successful then why do you need to spend all of that money, don’t you already know everything?" (another example of a small minded person).

Successful people practice the principal of the "slight edge". If I can get one good nugget of information that can help me buy more houses, or fill vacancies quicker, then it is worth thousands of dollars over the years to me. I am always looking for the edge over my competition and this is why I will never stop learning. So for those of you who are cheap (and who are less likely to be successful) go to the library and start reading all of the real estate books they have. Then begin to network like crazy.

For those of you who have "guts", put that boot camp or next course on your credit card (education stuff only, no flat screens) and then quickly do a deal from your education and pay off the credit card.

Unfortunately, I know I am falling on deaf ears. The successful people completely understand what I am talking about and will never stop learning. The unsuccessful people claim that real estate investing is impossible yet they have never invested in learning how to do this business properly. So for the successful folks (cheap people stop reading here), I recommend doing the following:

1. Read at least one book a month on success, selling, time management or real estate investing.

2. Attend at least one boot camp a year (not only will this make you money, it will help keep you

motivated)
3. Never stop networking. You need to hang around successful and like minded people.
4. Instead of watching TV or listening to the radio, read a book and listen to educational CD’s in your car.
5. Instead of getting the usual junk for the holidays or birthdays get educational materials.
6. Stop hanging around negative people, no matter who they are.
7. Listen to teleseminars, read ezines, read blogs
8. Get a mentor. In fact, over your lifetime you will want to have several mentors

...And for you cheap people, how come you don’t want to be successful?

The Benefits of Wholesaling

2012-02-26T17:16:00.002-08:00

1 You don't need any money to buy the property because, in effect, you're not actually buying it. You're buying the contract and then re-selling it. Many times, your name won't even be on the property title unless you choose to double-close it

2 You don't need a good credit rating because, again, you're not buying the property. In the "regular" real estate market, you won't get anywhere without good-to-excellent credit because lenders don't like risk. Wholesaling has no such barrier. It doesn't matter what your credit rating is; you can dive in and start making money using only your brain and hard work.

3
There's minimal risk because you're selling paper or a contract, not the property itself.

4
There are no holding costs. You don't have to pay mortgages or do any maintenance. You can buy "as is" and sell "as is."
5
The condition of the house doesn't matter. Wholesaling is all about price.
You have the ability to make money quickly (closing on a property between 14 to 30 days).

6
There is an abundant supply of wholesale properties and not as many investors going after them (compared to other real estate strategies).

Disadvantages

As with any real estate strategy, there are disadvantages.
1There's more competition since it's the easiest profit center in real estate investing.

2 You make less money per deal compared to rehabbing and selling to owner-occupant buyers.

3 There's no residual income. You must continue to do deals to make money.

Advantages of Wholesaling VS Disadvantages

However, the advantages of wholesaling far outweigh the disadvantages. When done right, it's a very profitable strategy. And, it can serve as a stepping-stone to longer-term investments within the real estate market. In essence, I'm giving you the key to unlock the door to a whole new world of financial security.

Let's take a closer look at the profit potential in wholesaling. Assume you want to keep your present job and plan to start in wholesaling part time. With my system, you can make $3,000-$5,000 per wholesale deal doing one transaction per month. On a yearly basis, this adds up to $36,000-$60,000. Not bad for part-time income, is it?

Now, let's assume that you want to pursue wholesaling as a full-time job. You can make $10,000-$15,000 per deal at two deals per month. That means you can make from $240,000-$360,000 on a yearly basis!

So, you can set goals for the amount of money you want to make in the real estate market and be independent at the same time. Essentially, the ability to meet those goals will depend on two things-your negotiating experience and the ability to get a deep enough discount to make a profit.

Virtual Wholesaling

2012-02-26T15:33:00.002-08:00

In order to be successful in any type of business you must have a system. This is especially true for real estate investing. I have tried many things, but the system I love the most and that I use every day is a system called virtual wholesaling created by a fellow named Cris Chico. Cris rose from very humble beginnings to become a real estate success story. Here is how virtual wholesaling works. This is from Cris's website and I get nothing for this. I am just sharing my system except for the satisfaction of helping you.

Virtual Wholesaling Step By Step Checklist

by Cris Chico on February 11, 2011

I’ve gotten a lot of comments and questions about Virtual Wholesaling lately… specifically about the inner workings of the system.
I know that many of you have my Virtual Wholesaling Blueprint but I wanted to lay out the system for everyone.

The simple explanation

Choose your market (I always recommend staying local in the beginning to keep things simple)
Go online and find motivated buyers and sellers via (Listsource and Realquest)
Sift and sort the lists you got to eliminate duplicates (and corporations from sellers list).
Go to Click2mail.com and upload the the list of buyers and sellers (separately of course).
Get a 24 hour recorded message hotline and record a buyer and seller message (I give you these in Virtual Wholesaling.)
Re-create my postcard in Click2mail (I give you one of my postcards in Virtual Wholesaling )
Send out your postcards (I would only do no more than 1,000 the first time since you may get inundated with calls)
Speak to the sellers that left messages to find the good deals.
Agree with sellers on price and terms and put under contract with inspection period the good deals.
Mark up the price of the property so that you can make an assignment fee (the assignment fee depends on the value of the property and how much of a good deal you are getting)
Post your deal on your buyer’s website and then send direct mail campaign to the buyers via click2mail. (The postcard directs the buyers to both the website and your toll free 24 hour recorded message)
Agree with buyer on price high enough for you to make a profit (and then you’ll get them to fill out an “assignment of contract”)
Follow up with all parties and make sure the deal closes.

Note: Don’t sign up with either Listsource or Realquest on their website or by calling their 1-800 number. You ARE NOT going to get the best deal. You MUST contact them via my rep there (info is in Virtual Wholesaling

Now if you are not able to sell the property, you’ll simply cancel the contract with the seller
I can’t go over the entire system in a blog post like this.

But I think having this simple checklist will give you a good idea of all the moving pieces.
You’ll learn all of the above in great detail in my Virtual Wholesaling, which is a complete video based training to do the entire marketing PLUS additional training on speaking with buyers and sellers and closing deals.

The system has been proven by many of my students to work BUT you have to take the time to implement it.

The great thing is that once you have all the pieces in place then you can run it with very little work. In fact, once you have it down you can train a Virtual Assistant to do most of the work for you.
But for most people it will take 2-4 weeks to get all of the pieces in place and be ready to start doing marketing.

WHAT’S THE SECRET TO MY SUCCESSFUL STUDENTS?

I can tell you that there is definitely no magic pill here.

#1 – They Work Hard

To be successful in real estate investing, you don’t need a university degree, or even a resume.
But if you’re starting out , you do need to be prepared to work really, really hard.
It can be rewarding, but it is hard work.

The fact is that many people buy real estate courses all the time and never make any money.
They never follow through …. most people don’t realize that there is hard work and so they just give up.

I do have students that appear to work very little and make tons of money … but this is only after putting in the work up front to achieve that.

#2 – They persevere through hardship

Most successful real estate investors have failed several times.
Instead of allowing failure to discourage them, they use it as a learning experience.
The knowledge they gain is valuable, and their ability to persevere through hardship allows them to continue working toward the success they eventually achieve.

#3 – They take action despite not having all the facts.

As a successful entrepreneur and real estate investor you need to be able to work within a framework of ambiguity.

Most people are paralyzed because they are looking to make sure that they have everything 100% covered (to avoid making mistakes)

This is absolutely the worst thing you can do.

You have to be diligent to make sure you do the best possible job of eliminating mistakes and making sure that you are doing things right.

But at some point you have to be willing to pull the trigger and accept that there is likely something that you missed and you’ll just have to deal with correcting it as you go along.

How to Quickly and Easily Evaluate a Deal

2012-02-26T05:38:00.002-08:00

One of the many reasons you need a mentor is so that they can teach you how to properly evaluate a potential deal. Early on in my real estate investing career I was foolish and did not get a mentor for several months. I probably lost thousands of dollars because I did not know that a short sale or subject-to opportunity was staring me in the face. Today I have a great mentor named Sherman Ragland.

To determine a deal, the first thing you need is a seller evaluation form. I use my 21 question form which answers questions such as property address, number of bedrooms, number of baths, mortgage balance, monthly payment, etc. Make sure the form you are using is detailed enough to get a good amount of information, but not so detailed that you have 100 questions to ask, because you will not be able to keep a seller on the phone that long. Once a seller has called you and you have completely filled out your form, you need to run comps on the property to see what it will sell for TODAY.

After your comps are run, see if there is enough equity in the property to wholesale or pay all cash for the property. When paying cash you will purchase the property at 70% of ARV at the very most. If you run the comps on the property and there is not enough equity to pay 70% or less, then this will not be a wholesale or cash deal. Next, go to www.rentometer.com and determine the market rent for the property. In order for the deal to be a subject-to or lease option, the property needs to cash flow. If the seller’s monthly payment is $1,800, but the market rent is $1,400, then you cannot do a sub-2 or lease option. In today’s real estate market many leads end up being short sale deals. You know you have a short sale deal when the property has no equity and it will not cash flow.

In the beginning it will take you a while to evaluate deals. Once you get comfortable, you will be able to determine within five minutes if a property is worth pursuing. So with e very property determine if you can pay all cash or take over the payments and make the property cash flow.

How To Make 'Em An Offer They Can't Refuse

2012-02-25T15:48:00.000-08:00

To truly make serious cash in this business you should always make every seller an irresistible offer. This incredible offer starts with the first impression you make with a seller, which is usually your marketing piece. Is your marketing piece so unique that the seller is going to call you versus every other investor who's sent them a letter also? I know my marketing pieces are, because I don't send out a marketing piece that doesn't contain some type of FREE offer in it. This is usually a free special report, but can also be a free property consultation. Just giving people a reason to call you will certainly separate you from your competition.

The next step is when a seller calls you. Do you emphasize how easy it is to do business with your company? Do you tell sellers you will give them a firm written offer within 24 hours or less? And most importantly, when you tell them you will get back to them within 24 hours do you? Surprisingly, most people will not follow through and of course a seller automatically loses trust in you, if you don't get back to them in 24 hours as promised. (Remember, people won't work with you if they don't trust you.)

Also, if you have a virtual assistant like I do, I would highly recommend "mystery shopping" your assistant. Since your assistant represents your company, you don't want to lose deals because your assistant is rude or unfriendly. For example, right now I have my assistant Lisa who has been working for me for years. But before that I had an assistant who I had to fire. I mystery shopped her often and she had terrible customer service skills. I can only imagine how much money this woman cost me.

Anyway, if your offer to the seller gets accepted, then you obviously set up a visit to meet the seller at the property. This is your next chance to "make 'em an offer they can't refuse." You show up with some type of "kit" which contains coupons, testimonials, and other documents which prove why you're head and shoulders above the competition (I use what I like to call the Ultimate Deal Closing Kit).

But let's say you've done all of the above and you're sitting at the sellers kitchen table and they are still not 100% ready to close the deal with you. That's when you pile on the little extras: This can include offering to rent a moving truck for the family, offering to pay the first month's rent on their new apartment, or offering to send them on a free cruise.

As long as the deal has enough profit in it, be creative and think of ways to sweeten your offer so people will be more likely to sell their house to you. And don't be greedy. I make about $30,000 per lease option deal and if it takes me sending my sellers on a $3,000 cruise to close the deal, I will be more than happy to do that. I'd much rather make $27,000 when all is said and done, then $0 by not making them a unique offer, what about you?

The # 1 Way To Make Money In Today's Market

2012-02-24T05:42:00.000-08:00

Here are the nitty gritty details of pretty house wholesaling. Regular wholesaling is when you wholesale a junker property to a rehabber. You use the wholesale formula ARV x .7 – repairs – your wholesaling fee = your purchase price. With a traditional wholesale deal you are finding a cash buyer to assign the contract to. I wholesale properties that need major repairs because in my opinion major rehabs are a waste of time (I do paint and carpet most).

Pretty house wholesaling is when you wholesale a property subject-to the existing financing. Many people know that I specialize in purchasing properties subject-to and think this is by far the best way to buy a house. You use very little (if any) of your own cash and none of your own credit. However, in order to purchase a property subject-to you should get at least $30,000 of equity (for the back end profit) and positive cash flow of $100.00 a month. Since everyone knows that real estate is a numbers game, only a small percentage of leads end up being subject-to deals that you can purchase for yourself.

Now, when most people get leads where they can’t pay cash (doesn’t meet the 70% criteria) and it won’t cash flow, well, they usually throw them away. Don’t do this. You could be throwing away thousands of dollars every single month! When you get a call where the sellers would be willing to have you take over their payments, but the property won’t cash flow, then you should be thinking pretty house wholesale.

Here is the script to use when "pitching" a pretty house wholesale deal. Let’s pretend that you get a call from a motivated seller and they will let you take over their payments. After you research the property you realize that it would put you $200 a month in the hole (never do negative cash flow). "Mr. Seller, we have researched your property and the good news is that we have a solution for you. Your property is a perfect fit for our matchmaker program. Since you already mentioned that you would allow someone to take over your monthly payments, then what our company will do is find a retail buyer who will come in and give you immediate debt relief from your mortgage payment. They will take over your payments and buy the house, so you will never again have any hassles with the property. Also, our service is 100% free to you, because we get paid by the buyer, who we help to own their own home."

In order to get the seller to do a pretty house wholesale, you have to be on your "A" game. You must know your scripts and objections cold. A pretty house wholesale is probably one of the toughest solutions to sell. It’s easy to get a seller to do a subject-to when you are buying the house, because you guarantee you will make the mortgage payment. However, when a retail buyer is purchasing the property, you can give no such guarantee. The most common objection that I get when talking with a seller is "how do I know that the buyer you put into the property will make my mortgage payment?". And the script that you use will be "Mr. Seller, our company thoroughly screens these individuals. We run their credit, we check their pay stubs and we check their savings and checking accounts. We have a strict screening process and only let qualified individuals purchase your house."

I am going to repeat again, that you must be on top of your game. Trying to get a seller to do a pretty house wholesale is not for amateurs. Once you have a seller agree to the wholesale, then you will sign all of the purchase documents with the seller (using the sub-2 contract) and immediately begin advertising for your retail buyer. In your ads you will emphasize how $9,997 moves them into their own house and they don’t have to use any of their own credit, etc. After you have a qualified buyer, simply assign the contract just as you would with any wholesale deal, go to closing and get paid.

Please learn how to do this, so you aren’t wasting leads. Also, make sure that you give your sellers full disclosure that you will not be purchasing the property yourself, but that you are assigning it to a retail buyer. (This is a very rarely used solution/technique/method that separates the amateurs from the pros. Which one do you want to be?)