Whole$ale Tip of the Week!!! “Beware of Time Sucks”

I am writing this post about time sucks, lucky loos, and tire kickers because as a wholesaler you will encounter so many of these people that it will make you want to vomit in your mouth, literally. It is imperative that you establish a 6th sense for feeling these people out as quickly as possible, before you find yourself running all over town wasting your gas and your time to show people that would have a hard time determining what shoes to buy, and end up leaving the store with nothing because they just can’t make up their mind, or really never had the money to buy new shoes to begin with. These people are not a buyer, anyone who needs a week or two to think over an investment, is NOT AN INVESTOR! I promise you, you couldn’t sell that person a rock.  I don’t even waste time calling these people back; it will be a conversation, worth not having. Real buyers make decisions quickly, and need no more than 12hrs to have a decision back to you, because they understand as real investors, that opportunity waits for no man (or woman). I promise you If want to become extremely efficient with your time, take the time to properly qualify your buyers, ask to see a copy of their financials. Ask them how many homes they currently own, ask them how many properties they plan on buying this year, and find out if they are really qualified to invest in real-estate, and make sure they are worth your time. I used to be just so eager to talk to someone that claimed they were an investor and wanted to buy property. I would bend over backwards to get them all this information and accommodate them to see the property, now I couldn’t give a $h!tless. I don’t want to come off super negative like I am not doing well, because God has blessed my partner and myself and are business is starting to really take off. I am just airing some of my personal frustrations in this business as my business grows and I become busier while struggling to find enough time in the day to accomplish everything. So I say to you, please learn from my mistakes and better qualify your potential buyers up front, it will pay dividends over time.

-Sam

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Making it Happen

We have successfully completed one whole year in this game, and it has been quite the challenge. We have been through a number of ups and downs, and through it all we have grown and are starting to see things through a different paradigm. Experience is hands down the greatest teacher and biggest disciplinary. I say all this to tell everyone out there, that no matter how difficult things might seem, persistence  pays off, and the struggles you encounter day in and day out. Are building your  experience muscles that will help you as you progress. You have to believe that you are going to “MAKE IT HAPPEN” and you will. 2011 is a new year full of opportunity, and it is up to you to go out and seize the day.

New fun and exciting things are starting to happen over here on our end. Our business website http://www.fresnoinvest.com will be active soon, we will have a Learn 2 flip Homes course doping in the 3rd quarter of this year, and you will be able to pick that up @ http://www.learn2fliphomes.com till then, for any and all looking for more insight on this game, feel free to reach out to us and we will be more than happy to talk.

Good Luck & God Bless!

A Weekly Kick in the Butt

“To live an extraordinary life you must resist an ordinary approach.” – Frank McKinney

If we want extraordinary result, we have to be willing to not only think outside “the box,” but also go beyond the norm. If 2% of the population controls 98% of the wealth, it would be safe to say that 98% of the population is only putting in 2% effort.

You will only hit as high as you aim.

How to use Craigslist to find Investors

Having a good list of ACTIVE cash buyers (100+) is imperative to being successful in real estate wholesaling. Posting online ads like CHEAP FIXER UPPERS – ALL CASH, is an AMAZING way to market and find cash buyers, but there is another way to use Craigslist and other online classifieds to go DIRECTLY TO the investor. This will help you sift through the fluff and see who is really doing deals, because there are too many talkers and skeptics that will call you and waste your time.

Go to your area’s Craigslist section, click on “real estate for sale” under the “Housing” section. Go to the Search Bar at the top left and type in a word that someone would use to describe a house that has been recently remodeled, i.e.; remodeled, updated, rehabbed, etc. Then, just to the right of the search bar, there is a category that says “In:” click that and select “Real Estate – By Owner.” Then click search.

Sift through the search results and find houses that have recently been updated and contact the seller. If there is an address posted, look up the address on Zillow.com to see the last time it was bought and for how much. It is a good idea to have as much knowledge as you can before you get on the phone.

You can also call any and all FSBO’s you see and simply ask if they are an investor or looking to invest after selling their property.

Tomorrow we’ll talk about what questions to ask an investor while on the phone or face to face.

Whole$ale Tip of the Week “Consistency”

Hello Hu$tlers I know it has been some time, we have been slammed lately. Ground Zero is going well and we are flipping assignments as well. But what I wanted to talk about is  “Consistency” and I mean it in every fashion. How Consistently are you putting out bandits, how consistently are calling back sellers, how consistently are you making craigslists posts, how consistently are you GROWING your business! Consistency is not difficult it takes discipline, and will help you achieve you goals. The only way you are going to make consistent MONEY, is if you are consistently doing the things necessary to grow your business.

Whole$ale tip of the Week “Networking”

Hello world today I want to talk about networking and how crucial it is to your business. I had a very wealthy man tell me one time “Sam a successful man/women is only as good as his network, no one gets to where there at alone”. And it’s true I doesn’t matter what the profession, you need other people to supplement whatever it is that you are doing to get there.

Upcoming Webinar

Everyone,

You have to check out this upcoming training on “How to Take Full Advantage of the Buyer’s Market and Make Money In Real Estate in the next 30-60 days

This webinar is being taught by expert Than Merrill from the hit show Flip this House. If you’ve seen the TV show, you might have seen him and his team buying, fixing and selling real estate for amazing profits.

What you may not know is that they use a lesser-known concept of Wholesaling to make a lot of money without doing any fix ups and frequently with none of their own money.

Having met Than and his team personally and use this system myself, I can tell you that it WORKS and what you will learn will blow you away!

Truthfully, Wholesaling is the easiest way to get started investing in real estate and to this day and is the cornerstone of their multi-million dollar real estate business.

Click Here To Register For The Webinar!

Below is a Sample of What Than Will Teach On This Webinar:

  • How to make $10,000 to $30,000 in the next 30 days with the Wholesaling concepts
  • How to actually do a Wholesale deal from start to finish
  • The top 5 ways to find deals at 40 – 65 cents on the dollar
  • How to pre-screen all your leads and evaluate deals in 10 minutes or less.
  • How to attract boatloads of qualified buyers with great credit scores in today’s market
  • Than’s personal strategies for finding buyers on the internet for FREE
  • How to build an automated business that will literally run itself
  • Cutting edge technology you can use to match buyers with sellers
  • See a demo of the software you must use that will run your whole real estate business…believe me you will be blown away at everything it can do for you!

Click Here To Register For The Webinar!

Also, you’ll get an awesome bonus for registering for the webinar… the “Flipping Houses Start-up Guide” valued at $49.99!

See you at the training!

Chris
P.S. Than’s company FortuneBuilders.com was recently voted #1 in Education by Inc. Magazine. This success is attributed to having created the easiest system to buy real estate for pennies on the dollar.

Ten Common Investor Mistakes

If you have spent even a modest amount of time in the Real Estate field, there is a pretty good chance you have heard a few horror stories about investment properties; Investor loses money instead of making it, house never sells, over does the remodel and never recoups the investment, bums break in the house at night, they start a small fire in the middle of the living room to get warm, and the house burns down… True story, I promise.

So, what are some common mistakes investors make and how can we avoid them? I have compiled a small list of ten. There are more mistakes, believe me, but these are the most common that I encounter. The order of is of no relevance.

1.       Overpaying for a house. Way too common. This generally happens because the buyer has no real idea of the true Fair Market Value (FMV) and the After Repair Value (ARV). Just because an agent says, “this house will sell for $200,000!” Doesn’t mean it will. Learn how to run comps and repairs and you will never have this problem.

2.       Underestimating the cost, scale, and time for repairs. If you are not familiar with CURRENT costs of labor and materials, you NEED to get the opinion of a professional, preferably more than one. Once you are familiar with this process it becomes fairly easy to run the hard numbers in a matter of minutes. Thoroughly inspect the property before you purchase. You are in the money making business, not the “Oh crap I just opened up a giant Can-O-Worms” industry.

3.       Not properly insuring the property. Remember that example about the bums breaking in and burning the house down? What if that was your property and your insurer didn’t cover your damages after you bought the property for $60,000 and already put $20,000 into it? That would suck. Don’t let it be you. Yes, it’s an extreme example but there are many things that can go wrong during the rehab process. Know what your policy does and doesn’t cover.

4.       Living in the property while remodeling it. Sounds like a good idea, “I won’t have to pay rent. Someone will always be there. I will have more time to get things done.” But in actuality here is what happens; because you are waking up and falling asleep there every day, it starts to feel like home and you begin to get emotionally attached. Now you start to overdo your repairs and updates because you want the house to be up to par with your living standards. You end up putting more money into the project than you need to because your emotions have clouded the reality that not every “sizzle feature” raises a property’s value. Don’t do it.

5.       Over pricing your finished work. This pretty much falls in line with number one. Know your market and the scale of the project. If you don’t catch anything from this blog, at least remember this; Value is not how much money YOU want, value is how much SOMEONE ELSE is willing to pay you. If other remodeled houses in your neighborhood are selling for $100,000, there is a pretty slim chance you are going to get $150,000. Now I just wish all sellers understood this.

6.       No Financial/time plan. Time wasted is money lost. Why take six months to finish a house and only sell two in one year when you could do four or five with the same amount of money? Plan, plan, plan. Don’t get in over your head (number 2).s

7.       Investing with emotion. I hear too many people who want to invest in certain areas or cities because “they have good schools.” Shut up. Remove your emotion, this is a numbers game. You have to understand that in certain areas, you will pay a premium for a property and the resell may not be much better than what you bought it for. People who live in highly desirable areas know it and they (usually) won’t allow their house to walk away for pennies on the dollar.

8.       Cold feet. Again, this is a numbers game. If everything looks good and is in line with your objectives, go for it. Don’t wait to hear “I made a killing off that property you were too scared to buy.” Emotional investing, yet again…

9.       Spending money and time on education but never putting it to use. Don’t be a spectator; get in while it’s hot. Even when it’s not hot, there is always money to be made. You are not getting any younger.

10.   Jumping in without understanding Real Estate. The last nine mistakes fall right under this one. Know what you are doing. Period. If you truly know what you are doing you shouldn’t have those problems. Get the right education. You don’t need to spend thousands of dollars in education and seminars, I learned through a $10 book and A LOT of free stuff on the internet, and I am doing great!!!

What other mistakes have you made or heard of?

Direct Mail

So, we’ve spent quite a bit of time on direct mail, and learned a few things in the process. A lot of people say it’s a waste of time, but I say;
The very first letter campaign I did was 100 absentee letters (pre-1995 transfer). I received ONE phone call which turned into my very first deal. $10,000! How’s that for a waste of time?

It’s only a waste of time if:

1. You don’t know what you’re doing.
2. You’re sending to the wrong people.
3. You write the wrong info. (Too much or too little)
4. You’re just plain lazy.

Tips:

1. KISS – Keep It Simple Stupid. If you are sending a letter, you should be able to get your point across in about 3 sentences. Post cards should be even fewer; like a tiny bandit sign you can hold in the palm of your hand… Get to the point.
2. Timing – I’ve found that direct mail as well and bandit signs do terrible around the beginning of the school year. I’ve had the best response around mid to late spring; 8-10% return.
3. Don’t spend too much money – I get lists for free through my Title Company.
4. Know where investors buy – target areas where you know your buyer’s list will buy, then you won’t be wasting time with property nobody wants. You should never put a property in escrow that you don’t know you can sell.
5. Use a local number – Get internet voicemail. Skype, Voicemailoffice.com, Google Voice. Especially if you are a busy person. Call back EVERY person, even if they don’t leave a message. I have separate numbers for mail and bandit signs.
6. Follow up with more letters or postcards.
7. Expect A LOT of RTS’. I usually get about 8% returned. Go back and edit/delete from your list.
8. Follow up on the phone calls – The laziest people I’ve ever met have been agents and people who CALL themselves “Wholesalers.” If you don’t want to work hard to make money, don’t even waste your time in Real Estate.
9. Keep track of EVERYTHING you do! It is so unbelievably easy to lose track! Every phone call or letter that you forget to follow up on is money potential lost. Worst case scenario – you lose the $00.60 you spent in marketing.

Our latest absentee campaign through Click2Mail.com was 830 postcards that cost us about $00.40 per card and saved HOURS of work. So far on day one of the call backs, we have about 10 calls.
Still, bandit signs have worked best for us. Hands down. For every $230 spent,  we generally make about $25,000. And, a good number a signs will stay up for a while, which is continual exposure.

Growing a Succesful Wholesale Business part 1 “Act like an Investor”

The Sole reason why my partner and I created this blog was because early on in our start we realized how challenging this business can be. It takes alot of work to be successful. We have been blessed to call this our job and do this for a living. But getting to this point has not been easy. I want to encourage you to do what it takes to be successful, and share with you what helps us create our own success.  Growing in this business can be very challenging, you have all of these different factors weighing against you. 1st you are probably broke, know there is nothing wrong with that, because my partner and I were as well getting started. But you can’t think like your broke. Now I am not encouraging you to go blow whatever money you do have to create an illusion of having money. What I am saying is that you need to think rich, think like the people you are trying to do business with, you need to think and act like an Investor.  When you can think and operate like an actual real-estate investor does, you will start creating more success in your business. Acting like an Investor is more than spending your day looking at real-estate. You have to diagnose these investment opportunities, and scrutinize the details like your investor will. When you do this you are accomplishing a few things. 1 you are answering your buyers questions before they can ask them. 2 you are building your investors confidence in you, because of the amount of information and quality of that information you are providing, this will allow them to start to see you as an expert in your field. 3 you are learning how to successfully invest through the syndication of your deals with other investors, preparing you for the other side of the fence. These things are critical to your success, now every investor doesn’t need a whole plethora of information because they are experienced and or understand the market of the investment you are presenting. But it shows them you did you homework, and thoroughly understand what you are doing, and also is good practice for yourself on building sound investing principles. With that said you have to know how these investors like to buy and build you business model around that. Now I personally don’t believe in the business model that some of buyers use, but its not my money so it really doesn’t matter.  Shop for the majority and you should convert alot of you Assignments into check from your escrow company!

-Sam