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TRANSCRIPT
Insider’s Edge
Day 1Educate – Locate – Celebrate
Training Purpose
Make Offers on Property by:
1. Finding Buyers2. Finding Sellers3. Evaluating
Property4. Writing
Contracts
Insider’s Edge 2010
Insider's Fast Cash Boot Camp
Insider’s Cash Flow Boot Camp
In Depth Techniques
Full Power TeamExtensive Buyers
ListExtensive Sellers
ListAll Financing
OptionsAll Fast Cash
Contracts
In Depth Techniques
Full Power TeamExtensive Tenant
listExtensive Sellers
ListAll Financing
OptionsAll Cash Flow
contracts
Welcome to Utah
Insider’s Edge 2010
Insider’s Edge 2010
Missed 51% of his shots
Insider’s Edge 2010
Successful people actually fail more than unsuccessful people
do!
Richard Petty 1184 Races 200 Wins!!!
Insider’s Edge 2010
Psychology of Investing
Goal SettingWhere are you now?
What do you want to accomplish?How will you get there?
Insider’s Edge 2010
Insider’s Edge 2010
Insider’s Edge 2010
Insider’s Edge 2010
Psychology of Investing
Investor MindsetTreat investing like a business instead of a
hobby
Insider’s Edge 2010
800 & Local Phone Numbers
Insider’s Edge 2010
Business Email/Website
Insider’s Edge 2010
Business Cards
Insider’s Edge 2010
Business Card
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3 Activities for making $$$
1. Find Buyers2. Find Sellers3. Make Offers
Insider’s Edge 2010
No Money Down
= O
RiskInsider’s Edge 2010
Investment Strategies
Fast Cash - Cash Flow - Buy & Hold
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Fast Cash Techniques
Bird Dog or Property Finder
Assignment of Contract
Double Closing
Insider’s Edge 2010
Bird Dog or Property Finder
1. Find buyer & criteria2. Have buyer sign a “Bird dog Agreement”3. Find motivated seller with like property4. Give buyer all property info
You get paid if buyer purchases!
Insider’s Edge 2010
Insider’s Edge 2010
Assignment of Contract
1. Find buyer & criteria2. Find motivated seller with like property3. Verify buyer’s interest in property4. Write purchase contract to seller5. Write Assignment of Contract to buyer
Get paid up front from buyer/get paid at closing!
Insider’s Edge 2010
Insider’s Edge 2010
Double Closing
1. Find buyer & criteria2. Find motivated seller with like property3. Line up Hard Money or Transactional
Funding4. Verify buyer’s interest in property5. Write purchase contract to seller6. Accept purchase contract from buyer7. Use Title Co. or Attorney to close both
transactions on same day8. Get check cut from Title Co. or Attorney
Insider’s Edge 2010
Insider’s Edge 2010
Power Team - Realtors
Insider’s Edge 2010
Why use Realtors?
Access to real estate leads MLS, pocket listings, & other industry connections
Comparables, courthouse information, & market statistics
Network of professionals Less legwork for you, weeding out process done,
experience with investor dealsLeverage – time & resourcesExperience investing or working with
investors in local market
Insider’s Edge 2010
Finding Realtors
Insider’s Edge 2010
Finding Realtors
Insider’s Edge 2010
Ideal Realtor
Passionate about: Real estate Investors
Actively working in your areaSend matching leadsSubmit multiple offers
Low price/necessary contingencies
Power team member referrals
Worked with investorsInvests themselves
Understands risk!
Insider’s Edge 2010
Minimum Requirements
Experience Preferred Teachable & hard
working Newbie OK
Willing to work with investors
Qualified property leads
Low offersUnderstands market
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Things to Remember
They work for YOU! Interview them:
Investment criteria, goals & expectations
Build rapport Be clear and confident
Take initiative & be assertive
Exclusivity agreements You decide
Try more than one agent initially Who does the work?
Insider’s Edge 2010
Call Realtors
Insider’s Edge 2010
The Buyers List
“
“If you build it, they will come.”
Insider’s Edge 2010
Importance of Buyers
Refines your marketFaster turn around
timeIncreased profitLess money out-of-
pocket Pre-qualified buyersNo wasted effort
Insider’s Edge 2010
Online Search for Buyer Ads
CraigsList.orgKijiji.comUPillar.comBackPage.comWebClassifieds.us USFreeAds.comClassifiedsForFree.comPennySaverUSA.com
Use local TV &radio station websites
Insider’s Edge 2010
Online Ad Header
“We buy houses”
“We buy ugly houses”
“We stop foreclosure”
“Sell your home today”
“I buy homes for cash”
“Sell your home fast”
“Need to sell?”
“Fast closing/property”
“I buy homes fast”
“Cash for property”
Insider’s Edge 2010
Online Buyer Search
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Online Buyer Search
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Online Buyer Search
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Ad Example
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Ad Example
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Ad Example
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Calling Buyers
Introduce yourself “Hi (their first name), my
name is (your full name), I’m online looking at your website/Ad and see that you buy houses and I’m curious as to what you’re picking up right now?”
Close conversation “Hey, great to meet you. As
I’m out looking for property for other buyers, and see some that match your criteria I’ll give you a call.”
Insider’s Edge 2010
Qualifying Buyers
Which areas are you most interested in?
Which type of properties do you like to see?
What price range?How much profit do you
need from each deal?What property
characteristics do you look for: Sq ft., # of bed/baths, Acreage,
AmenitiesInsider’s Edge 2010
Qualifying Buyers
Repairs okay? What types?
How quickly can you close?How would you like the deal presented?What do you want included in the packet I
send you?Do you work with:
Bird-dogs? Assignment of contracts?
How many deal a month can you handle?
Insider’s Edge 2010
Insider’s Edge 2010
Call Buyers
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Ghost Ads Regular Ads
Handyman Special3bed/2 bathOwner DesperateCall today XXX.XXX.XXXX
Priced Below MarketSFR 3/2Great NeighborhoodCall today XXX.XXX.XXXX
Fixer Upper!!!SFR 3/2Must sell/MotivatedCall today XXX.XXX.XXXX
Attention Investors!!!Stop spending all your time looking for
great deals; let us do the legwork for you. Call today XXX.XXX.XXXX
Buyers Wanted!Buyers needed for multiple investment properties that cash-flow.Call today XXX.XXX.XXXX Cash Buyers Wanted!!!Cash buyers needed for fast closings
onmultiple investment properties.Call today XXX.XXX.XXXX
Posting Ads For Buyers
Insider’s Edge 2010
Day 1 Review
Insider’s Edge 2010
Day 1 Assignments
Find BuyersFind Realtors
Bring back listings
Insider’s Edge 2010
Insider’s Edge
Day 2Educate – Locate – Celebrate
Day 1 Assignments
Find BuyersFind Realtors
Bring back listings
Insider’s Edge 2010
Review Property Listings
Insider’s Edge 2010
Set Appointment with Realtor to View Homes
Insider’s Edge 2010
Market Analysis
Areas with greatest potential? Great for a quick flip
Which areas should be avoided? Why?Buyers/sellers market?Local real estate factors
Unemployment, construction, government programs, etc.?
Days on market? Average sales price
Insider’s Edge 2010
Market Resources
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Preliminary Property Evaluation
Get house specs Sq Ft/beds & baths/type of neighborhood, etc.
Does the property match criteria? Use maps
Pull comparables Use to determine fair market value (FMV)
Call seller Verify house information Determine motivation
Insider’s Edge 2010
Look for Deals, not headaches!
Insider’s Edge 2010
Qualifying Sellers
Asking price?Type of neighborhood?Sq Ft?# of beds/baths?Days on market?Why are you selling?Repairs?
Estimated cost?
Consider taking time to build rapport!
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Remodeling Resources
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Contractor Criteria
Time MoneyQuality
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Finding Contractors
Home Depot/LowesCraigslist -
www.craigslist.org Bulletin BoardsLocal Papers Word of Mouth Real Estate Investment
Clubs Referrals from your
Power Team Yellow pages -
www.yellowbook.com
Insider’s Edge 2010
Insider’s Edge 2010
Road Trip!!!
Items to take Phone Inspection form Pen Notebook Clip board Tape measure Flashlight Calculator
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Proof of Funds
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Fill Out Form
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Proof of Funds Letter
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Fill Out Form
Insider’s Edge 2010
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Day 2 Review
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Day 2 Assignments
Proof of Funds LetterRead Contracts
Build Buyers List
Insider’s Edge 2010
Insider’s Edge
Day 3Educate – Locate – Celebrate
Day 2 Assignments
Proof of Funds LetterRead Contracts
Build Buyers List
Insider’s Edge 2010
Insider’s Edge 2010
Transactional Lending & Hard Money
Short term financing for Double Closing
Cost of money Fees Interest rate Term Penalties
Insider’s Edge 2010
Call Hard Money Lender
Insider’s Edge 2010
Road Trip!!!
Items to take Inspection form Common Repairs
Reference Form Home Depot/Lowes
shopping list Pen Notebook
Insider’s Edge 2010
Running the Numbers
Anticipated Selling PriceTotal Repair EstimateClosing Costs
Escrow fees $150-$250. Title search/insurance policy-1% of the remaining
balance Appraisals $350-$450. Home inspections $250-$400 Real estate agent 3%-6%
Insider’s Edge 2010
Running the Numbers
Holding Costs Fire/hazard insurance Utilities Mortgage payments Property taxes Ongoing maintenance Property management
fees Loan servicing fees
(seller financing offered)
Insider’s Edge 2010
Fast Cash Formula
Closing costsRepairsHolding costsMarketing
Fees/Realtor??????
MaximumOffer
Amount=
Anticipated selling price
Add costs together then subtract from anticipated selling price to get maximum offer amount
Insider’s Edge 2010
Contracts
Bird-dog Agreement To buyer
Real Estate Purchase Contract (REPC) To seller
Assignment Contract To buyer
Real Estate Purchase Contract To buyer Insider’s Edge 2010
Insider’s Edge 2010
Elements of a Contract
And or AssignsEntity as BuyerProperty
DescriptionLegal DescriptionPersonal PropertyPurchase Price Earnest MoneyAcceptance Date
Closing DateTitle InsuranceHome warrantee Property Insurance
and Tax ProrationClosing vs.
Possession DateContingenciesSignatures & Date
Insider’s Edge 2010
1. “This offer is subject to buyer’s/buyer’s partner’s walk-through inspection and acceptance of the same delivered to the seller within 30 days of sellers acceptance to this offer to purchase.”
2. “This offer is subject to a property inspection by a licensed home inspector, the results of which must meet buyers approval.”
3. “Buyer has a right to assign his/her interest in this contract prior to settlement to any person, corporation or entity which he/she may designate.”
Contingencies/Addendums
Insider’s Edge 2010
4. “This offer is subject to approval of buyer’s partner within 30 days of date of acceptance.”
5. “Buyer reserves the right to show the property prior to settlement for the purpose of renting or reselling it, and seller agrees to permit access to buyer at any time from the date of this agreement up to the settlement date.”
6. “All earnest money will be returned to buyer in the event that buyer is not able to conclude contract successfully.”
7. “This sale shall include all appliances and fixtures.”
Contingencies/Addendums
Insider’s Edge 2010
Presenting Offers
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Presenting Offers on FSBO
Make an appointment In person is more effective All sellers should be present
Establish rapport Learn and use names Build on common interests
Use legal contract Verbal offers may not be legally binding
Discuss needed repairs Do not criticize property
Discuss terms of the offerInsider’s Edge 2010
Presenting Offers
Practice presenting Discuss offer price Offer based on research Be confident
Peace of mind from selling Remind sellers of the reasons they want/need to sell
Thank sellers “I look forward to working with you.”
Always be professional & positive
Insider’s Edge 2010
Write & Present Offers
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Day 3 Review
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Day 3 Assignments
Build Buyers ListBuild Sellers List
Make Offers
Insider’s Edge 2010
Congratulations