How To Literally Knock On The Door To Success With Little Or No Competition

knockFrom Darlene Root…

As one of the “seasoned” mentors – and by that I mean one of the oldest mentors – I have seen over 35 years of marketing trends come and go. When new investors ask what the best way to get deals is, I always tell them to go back to the basics and door knock.

What?!

You mean to tell me that I am going to go to the seller’s home and knock on their front door and ask them to sell me their house? That will never work!

I always laugh at this remark, and then I remind them that I got into this business in 1983… when we didn’t have all of resources that are available now.

Let me tell you what we didn’t have in 1983: personal computer (internet, email, social media, blogs, meet-up groups, contact management systems or CRMs, fax machines, cell phones, voice mail, copy machines… need I go on?!

Wholesaling Basics: How To Flip A House With Little Or No Money Down – Part 1

NillioraireThere was a time when I was broke. I had no connections, no resources and no mojo when it came to talking to people.

In short, I was a newbie to the real estate investment game, just like some of you. I barely understood the concept of investing, let alone actually flipping houses. I sure as heck didn’t understand that there was an actual fool-proof, clever way to invest in real estate.

But I had a dream and lots of hope. And once I understood that clever real estate investment strategies existed (hence the “Clever Investor”), I fell head over heels madly in love with flipping houses in creative ways.

And here’s the thing… anyone can do it. Yep, you. It doesn’t matter where you come from or what you’ve been doing for the past 15 years. Most importantly (and no, this isn’t a typo) you DON’T need a lot of money, and you DON’T even need to buy a house.

All you need is some knowledge, education, guidance, efficient processes and the ambition to make it happen.

The House vs. The Contract

Which is more valuable? If you immediately think house, you’re not alone. But those seasoned investors out there know (and you soon will, too) that the contract is money. Paperwork is the key to no money down real estate investing.

This is how it works…

We’re always trading cash for houses, right? That’s what we do! And there are cash buyers out there – landlords and rehabbers, for example – who are looking to add properties to their portfolios and add value to properties so they can flip them.

But you want a piece of the action too, don’t you? You want to get in the game, and I’m here today to tell you it is possible, even if you don’t have the money to fix and flip. The key is understanding the paperwork to control the house.

It goes without saying that everyone needs a place to live, and life happens every day. People get divorced, they lose jobs, loved one pass away. What I’m saying is there are lots of reasons why people no longer want to own real estate.

These folks are called motivated sellers.

Now, there are 2 things that can tell us as investors who owns a property:

  • Note
  • Deed of Trust or Mortgage (depends on the state)

If there is a loan on the house, there is the note, which means the seller owes the bank a certain amount of money. As investors, you want notes on properties where the motivated sellers have been paying off the note to create equity.

onionDid you notice the two key words in that last paragraph?

Equity + Motivation = potential good deal

This is my formula for flipping houses with little or no money down.

Enter the Wholesaler

So now you’re on the hunt for motivated sellers, but what can you do to let the world know you exist?

Marketing
You can rock some branded T-shirts or you can leave magnets at random high traffic areas (like gas stations). You can post ads on Craigslist, send direct mail and work the social media sites. Something as simple as watching the news can produce potential motivated sellers as well, so pay attention to what’s going on around you.

Scripting
You’ve marketed, you’ve networked and now you’ve got motivated sellers live on the phone. Even professional, seasoned investors follow scripts, so do the same!

Read from your (awesome) script, and know when to ask questions, when to talk and, just as important, when to listen. Do your recon on the seller and the property, find out what the seller wants for it and what he or she owes, and know in advance what the property is worth.

Negotiating
Remember that negotiating and counter offering is all part of the process. Eventually, you’ll make an offer that your seller will accept. Just be patient, negotiate strategically and always be respectful.

Contracting
Once your seller accepts, get the property under contract. This is called a Purchase and Sale Agreement.

Have you noticed how little you need to do to get to this point?

Let me break it down for you – you got the seller to raise his or her hand, you read a script and you negotiated. And all this will be done over the phone! At this point, you don’t even need to see the property!

Remember to include your closing terms (I suggest 15 days), and offer to pay closing costs. Understand what your seller owes, that you’re gonna pay closing costs and know that you will net a nice chunk of change. Then put $10 earnest to validate the contract.

It’s really that simple. So up to this point, the only money out of your pocket is $10.

Nope, it’s not Too Good to Be True

Do you believe me now?

With just a few clever but strategic moves, you truly can flip a house by simply controlling it and flipping it to a cash buyer – and make $10,000... all within the next two weeks. And when it’s all said and done, you will only need to invest $10.

For real.

Stay tuned for the next installment in this 3-part series, where I’ll cover escrow and closing agent tips.

signatureKeep it classy, my fellow investors!

Questions?

Got a basic wholesaling question? Leave it in the comments section below.

The Right Way To Mail To The Tax Delinquent Property List

deductibleFrom Tom Nardone, Millionaire Mailman … 

I just had a student recently close a deal with over a $50,000 profit! Yep, you read all those zeros correctly.

Whenever you hear someone tell they just closed a deal and got a nice-sized check, always ask how they FOUND the deal. Ask what criteria or lead source the deal came from.

If you live in an area where you have tested several lists and you’re not getting the results you want, then try something a little different by changing up your mailing list criteria.

I had this same discussion with a student, and we decided to try a list criteria a little outside the box to target a list that’s not readily available from a known list source or broker.

How Not To Let Time Keep On Slippin’, Slippin’, Slippin’ Into The Future

From Darlene Root…

As a Clever Investor Mentor, each week seems to carry a theme with my students... Recently, we had a week that was all about time management (or lack thereof). Most of the students feel like the weeks and months go by without producing a positive result in their businesses. (I’ve been there, I’m sure you’ve been there…)

What it all comes down to though, is that the student is not taking control of their time… time is taking control of them and having them “run on random.”

Buy & Hold 101: 8 Lessons From the School of Hard Knocks

hardknocksOkay, so here we are back again with our finale to our Buy & Hold series. Today, I’m going to share with you some important lessons that come from one of the most prestigious schools, Cody’s School of Hard Knocks.

But first, if you missed out on the previous lessons in this series, check them out so you aren’t completely lost:

So, let’s go ahead and start our final lesson…

Should I Get A Permit When Doing A Rehab?

warningFrom Tom Nardone, Millionaire Mailman … 

So, should you get a rehab permit? This is a hard question to answer!

I would have to say if permits are required for work you are doing on a rehab, its best to get them.

An investor friend who has been in the rehab business for 25 years is finding this out the hard way…

He rehabbed a house that he bought for $90,000. The house needed about 60K in rehab work. When he was done making the house absolutely beautiful, his plan was to sell it at a price of 199K.

Not a bad pay day to make 50 Gs!

Beware: Vision Contamination

From Bridgette Cruz…

Warning! What I am about to share with you could completely change the way you think, react, and perform from now on…

Have you ever met someone who was critical or negative all the time? Let me guess, you either would ignore them or attempt to change their view on the situation for hours upon hours until you finally decided that this person was just the way they were.

Let me also assume and assert that you avoid sharing yourself with this person out of fear that they will judge and assess every word you have to say – and in the end, they leave you powerless, frustrated or just plain regretful that you ever opened your mouth to begin with.

Well, my friend, if that scenario triggered something inside of you, let me tell you…

You were CONTAMINATED!

Is It Live or Is It Memorex?

2015-11-10-260From Darlene Root…

Prior to my real estate career I was a musician and intrigued by the 1970’s Memorex commercial ”Is it Live or is it Memorex?” In the commercial, Ella Fitzgerald was able to break glass with the sound of her voice. Ella’s voice was recorded on a Memorex cassette tape… and when played back, the recorded version gave the appearance of also breaking the glass.

Years later Mythbusters did an episode that showed another musician doing the same thing, however, they could not validate that recorded sound had the same result – stating that sound coming from a recording would have to be amplified so much that there would be too much distortion.  

This proved that there is a difference from the real to the “imposter.”

Your Entrepreneurial Declaration of Independence

freedomFrom Dave Ludena, Real Estate Rockstar…

I had a great 4th of July weekend and it left me feeling rather patriotic, and that feeling has been carrying through until now because I’ve been contemplating what an awesome thing it is to have freedom. Yes, there are some things that I feel are a bit whacked out with our country; but all in all, I feel very grateful to live in this great FREE country. In this country, we take our freedom very often for granted, until it is challenged.

Most real estate investors (entrepreneurs) get into this deal for just that…Freedom. And that can be defined in many ways, but in the end, it usually boils down to be able to do what you want to do without time and money restrictions.

Buy & Hold 101: The 3 Levels of Researching a Rental

rentalsLucky #7 is in the house! To date, we’ve brought you 6 awesome Buy & Hold blog posts detailing everything from finding good property managers to owning cash flow real estate. Our most recent post was all about asset protection, so make sure you check that one out.

We’re one more post away from wrapping up our Buy & Hold series, but today it’s all about researching rentals when you buy and hold.

And the key to rental research is a 3-level system that is sure to simplify and direct your processes with targeted, thoughtful research that will produce profitable properties.

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