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3 Proven Ways to Quit Your Job in 12 Weeks Flipping Real Estate

An Interview with 3 „Regular Joes‟ Who Turned

Their Hobby of Real Estate Investing into Multimillion-Dollar Businesses

By Sue Reddy Silverman

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Introduction

Now is the best time to invest in Real Estate. According to our experts, we will never have an

opportunity like this again. The market had tanked but it‟s starting to rise again now. It is going

to stabilize and turn around in the right direction. And right now, America is truly on sale.

Don‟t get left out of the game. Millions of dollars are being made in Real Estate in a variety of

ways, including buying heavily discounted HUD homes and selling them cheap; buying short

sales and flipping them and rehabbing homes. You can even make money just by connecting

buyers and sellers doing no real Real Estate work at all.

Find out how to make your millions in this new report “3 Proven Ways to Quit Your Job in 12

Weeks Flipping Real Estate.”

We got up-close-and-personal with three “Regular Joes” who turned their hobby of Real Estate

investing into multimillion-dollar businesses. And they told us exactly how they did it too.

These three masters reveal how they got started investing in Real Estate, what their primary

revenue pillars are, the Number 1 mistake new investors make, how they find buyers and sellers,

what their top marketing strategies are and how to make the really big bucks in Real Estate in a

very short time.

Their stories will inspire you; some will amuse you, but mostly they can lead you on a new and

faster path to prosperity.

We are pleased to share this informative report with you.

The Net Income Real Estate Team

www.NetIncomeRealEstate.com

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Expert Real Estate Investing Professionals

Josh Cantwell

A native of Northeast Ohio, Josh Cantwell graduated from Baldwin

Wallace College in 1998 with a Major in Business Administration

and a Minor in Communications. Although a full-time student and

college athlete, Josh was already driven to succeed in his career.

After graduation he obtained his Series 6, 63, 66 and life and health

insurance licenses, and worked as a Financial Advisor from 1999-

2004.

In 2004, Josh ventured out on his own and started investing in real

estate full time. He was able to combine his knowledge of Financial

Investing with real estate to create a very successful business,

which quickly grew and he began training and teaching apprentice

partners and students. He began Strategic Real Estate Coach in

2007, and since then has been involved in wholesale, rehab, rental,

foreclosure, pre-foreclosure and short sale transactions, and taught

thousands of investors how to replicate his success. Josh has vast

knowledge and experience in helping coaching clients, mentor

students and apprentice partners from across the U.S. in finding,

structuring, negotiating and closing various types of transactions for

a profit.

He has bought and sold more than 600 properties in 30 states, and

currently holds a robust rental portfolio of cash-flowing properties.

He is the founder of Sharp Concepts Realty, a real estate brokerage

based in Cleveland, Ohio. Josh lives in Strongsville, Ohio with his

wife and three children.

Jason Medley

Jason “The Money Man” Medley is the President of Flip My First

House LLC, a company dedicated to helping brand new as well as

seasoned real estate investors grow their businesses through a

broad spectrum of educational training products, tools, and short-

term funding options for flip transactions. FlipMyFirstHouse.com

is the parent company for the “My Beginner‟s Luck” brand, which

is specifically geared toward providing a three-step formula that

helps the new investor get their very first deal done.

It also parents the “Secret Six Figure Society” mastermind, which

consists of 37 of the nation‟s top real estate investors that meet

quarterly to share their recession-proof investing systems,

strategies, and profit sources.

Jason currently lives and enjoys life in Tampa, Florida, where he

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spends time “grillin and chillin” as he calls it with friends and

family. He frequently works from his home office “the dock,”

actively practicing what he is so passionate about teaching, living a

life full of freedom and choice where you set your own rules.

To learn more about flipping your first house or building a “house

flipping machine” that allows you to live life freely while making

your own rules, visit www.MyBeginnersLuck.com and

www.SecretSixFigureSociety.com

John Cochran

John Cochran, 29, from Dayton, Ohio, is Real Estate investor who

has flipped more than 150 Real Estate deals in his 11-year career.

He started off doing a lot of rehabbing, then he bought a HUD

House for $18.47 and got hooked on wholesaling homes for fat

profits. Once he tweaked his HUD Buying System

(www.hudwholesaling.com) to run smoothly without him, he

created a training program called Wholesaling Mastery to reveal to

the world the tips and tricks he uses on a daily basis to wholesale

more than 8 properties a month.

John is also the founder of one of the fastest growing Real Estate

Brokerages in the country "HomeBackers Realty." His brokerage is

very unique. It ONLY works with buyers. In fact, he has developed

a proprietary system called “BuyersonFire.com” that has allowed

him to build a very responsive buyers‟ list of 18,000+, including

retail, cash, rent-to-own and investor buyers in his own local

market. “When you have all the buyers in area, you pretty much

own the market and write your own paycheck,” he said.

With all of his Real Estate Investments and his Brokerage

combined, he is involved with more than 30 transactions a month.

John is also a systems nut! He is the founder of

TheKingofSystems.com and is in the process of developing a

software call AgentSoft that he claims will change the way Real

Estate is sold in just a couple of short years.

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3 Proven Ways to Quit Your Job in 12 Weeks Flipping Real Estate Josh Cantwell

Interviewer: How did you get started in real estate investing? What's your background?

Josh Cantwell: I actually got started in real estate investing, because as a financial planner

and as a financial advisor, I saw that a lot of my wealthiest clients didn't

have their money in the stock market, didn't have their money in

investments, like mutual funds and stocks and bonds. They owned real

estate. So back in 1997, I graduated from college, became a financial

planner at 21 years old, got my insurance licenses, series 6, series 7. And

over the next three, four, five years, I became really good at advising

people about money, but I quickly realized that my most successful and

wealthiest clients owned real estate. I took notice. They owned restaurants.

They owned not the restaurant, the business, but the restaurant building.

They owned rental properties. They owned commercial properties. They

owned single-family homes. They owned apartment houses. I took notice.

In 2003, I basically quit as a financial adviser. I was sick of that business,

because it's very constricting. It's very buttoned up, if you will. And I

decided to venture out into real estate. I just wanted to focus on pursuing

my dreams of becoming financially free and wealthy with real estate in a

business that was much more open to creative marketing ideas, creative

wealth-building strategies. I jumped right in and started focusing on pre-

foreclosures and short sales and foreclosure properties, because in my

area, northeast Ohio and Cleveland, we had already been hit by a

foreclosure crisis. The foreclosure crisis in Cleveland started in 1999,

because we had a bunch of Fortune 500 companies that moved out of the

area. So there became a lot of inventory, a lot of foreclosures, a lot of short

sales, a lot of bank-owned properties. So I immediately jumped into

foreclosures in the spring of 2004, and I've been a full-time real estate

investor ever since.

Interviewer: What are your top two primary revenue pillars; the ways you make money

with real estate?

Josh: I actually focus on seven revenue pillars. I don't recommend that investors

focus on seven, but I've been a full-time real estate investor for almost

nine years now, since 2004, so I focus on seven. My seven revenue pillars

are bank and government foreclosures, that's number one, short sales are

number two, lease options are number three, buyers that want them is

number four, raising capital is number five, marketing, especially Internet

marketing is number six, and number seven is passive income, passive

cash flow. If I was a brand new investor today, based on what's going on

in the market right now, I would focus on bank and government

foreclosures, and I would focus on rent-to-own properties, or lease

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options. Those would be my two revenue pillars as ways to make money

with real estate.

The reason why is, first of all, because the banks have tightened up their

lending criteria, and they're not lending money to even qualified buyers,

qualified applicants. There are a lot of people who, under normal

circumstances, would be able to buy a home but can't. They can't get a

bank loan. So that lends itself to an opportunity where you can take over a

property on a rent-to-own basis and then wholesale that property for a fee.

I use what I call the magic document, which is also a letter of intent. My

number one revenue pillar would be wholesaling lease options. My second

quick cash revenue pillar is wholesaling and renovating government and

bank foreclosures. The reason why is, number one, there's a lot of

inventory. Number two, there's a lot more inventory to come. There's a lot

of government and bank foreclosures that are going to hit the market over

the next two to five years.

Interviewer: What's the biggest mistake new investors make?

Josh: The biggest mistake that new investors make is not raising capital. They

don't have capital. The reason they focus on wholesaling or they focus on

quick cash strategies is because they don't have money. So they say, if I

don't have money to fund transactions, I've got to wholesale. I've got to get

properties, I've got to get them under contract, and I've got to wholesale

them to somebody else. The hope is that they will wholesale enough

properties and stuff enough money into the bank that they will eventually

be able to use that money in their savings account to buy up properties, fix

it and sell it and do a big deal. Do a big rehab with a big profit. So the

biggest mistake they make is believing out of the gate that they don't have

credibility, that they don't have experience, that they don't know how to

raise money, so they don't raise capital.

If I could go back and do it all over again, the first thing I would do is I

would become a student of money. I would become a student of rate of

return. I would become a student of raising capital, because if you have

money, you can fund almost any transaction, you can do almost any deal,

and your competition will actually bring you deals. If you have money,

you become the go-to guy, and you can get a piece of a lot of different

transactions. And you can become the centerpiece of your community,

because people will lend you money or partner with you and bring you

money, and other investors will bring you deals. So you're the centerpiece,

you're the hub of all that activity. If you don't raise money, you'll be stuck

being a wholesaler, and you'll never be able to do the really big deals.

Interviewer: What's the top marketing strategy to generate seller leads or buying

opportunities for this revenue pillar?

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Josh: There are two revenue pillars. The one is rent-to-owns and lease options.

What's funny about that is that we find all of our seller leads on Craigslist,

and we find all of our buyer leads on Craigslist. So we actually are able to

use some specific emails and some different ways that we contact

landlords and homeowners on Craigslist. We basically work with them,

we meet with them, we take over their property using a letter of intent.

Then we wholesale the properties to buyers who are also coming from

Craigslist. It's almost funny, because you're just the middleman. You're

just connecting people that are already on Craigslist who don't know that

the other exists. We're just connecting the two. That's for the rent-to-own.

Our best way is simply through Craigslist. It sounds very basic, but it's

absolutely true. That's where we get our entire seller and buyer leads.

When it comes to wholesaling government and bank foreclosures, one of

the best ways to find seller deals for government foreclosures is a website

called www.hudhomestore.com. That's where all the HUD properties are

at. That's where all the government foreclosures are at. For a lot of the

bank-owned properties, those are on two websites. One is called

HomePath, and the other one is called HomeSteps. That's Fannie Mae and

Freddie Mac's websites where they list their inventory of bank

foreclosures. So that's the best place to find those seller properties. Of

course, the other way is through the multiple listing services in your local

area, where you can use the MLS to find these government and bank

foreclosures as well. But all the buyers‟ leads we get off of Craigslist for

the most part.

Interviewer: Walk me through the A to Z process of doing a deal.

Josh: Okay. So let's talk about rent-to-owns or lease options for a minute. What

we have to do is, if a seller has a lot of equity, they're not going to be a

candidate for a rent-to-own deal. So take an example. Somebody who has

a house that's worth $150,000 and they only owe $100,000. That seller is

not going to be very motivated, so they're not a candidate. People who are

overleveraged, so you take a property again that's worth $100,000 and

they owe $200,000, that's really a short sale, they're not going to be

motivated, or they're not really able to do a lease option either. So what

we're really looking for is the people who have little or no equity.

The good thing is, for this investment strategy, there are 26 million people,

according to CoreLogic - which is a big marketing and analytics company

for the real estate industry - according to CoreLogic, there are 26 million

people who have no equity, who are overleveraged, or have less than 10%

equity. Those people are ideal candidates who have been trying to sell

their house but can't sell it because they don't have any equity to pay a

realtor, or they don't have any equity to unload the property. So those

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people oftentimes are at the end of their rope. They don't know what to do,

and they just want to stop paying the mortgage. We can take over those

properties.

What we do is we find those people on Craigslist. We use specific ads to

market to those properties. When people call us back, we go through a

specific sales script that we use. We find out how much equity they have

over the phone, and then we set an appointment with them and we go meet

with them. When we meet with them, if it's fit, we use what's called a

letter of intent to lock up that property. The seller signs it and the investor

signs it. It basically lays out the terms of the deal. What are we going to

pay for it, how long are we going to be able to rent it before we buy it,

how much money are we going to put down.

The most important part is how long is your option period. An option

period is how long can I have to market the property before I have to

either back out of the deal or before I have to move into it. So the option

period is 90 days. So what we do is we get the letter of intent signed. Then

we pass the letter of intent off to our attorney, and the attorney actually

structures the final agreements. The attorney structures the purchase and

sales agreement, the option to purchase agreement, the rental agreement,

and the assignment agreement as well as all the disclosures.

Then we have 90 days to market and wholesale and sell that property to a

buyer. So then what we're going to do is we're going to market that house

all over Craigslist, and we're going to market the property through other

tools like SellPoint and Postlets and other different ways that we can

market the property on the Internet, and we're going to try to get as many

buyers in as we can. Once we find a buyer who wants to basically take

over the property, we then lock up that buyer with a new purchase

agreement, and we get that to our attorney, and then our attorney basically

has us step out of the transaction, and he matches up the seller and the new

buyer, and the new buyer pays us an assignment fee to take over our

transaction. So that's exactly how you put together a lease option

assignment.

In a wholesale, like a bank or government foreclosure, you have the option

with those to do one of two things. You can either wholesale those

properties to another investor, or you can keep them and rehab them. So,

let's talk about the ability to wholesale them. Well, a HUD property, or a

government foreclosure, what you do is you bid on these properties

through the HUD home store. And then once you get your offer accepted,

then you're going to have about 45 days or so until you have to buy the

property. During that 45 days, you're going to market that property on

Craigslist to find someone to take it off of your hands. And then when you

do, you're going to buy the property and then sell it in the same day. It's

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usually what's called a back-to-back transaction. You buy the property,

let's say today, for $50,000, and you sell it today for $57,000, for example.

After your closing costs and things like that, you might get a $4,000

wholesale fee. So that's HUD wholesaling. That's wholesaling government

foreclosures.

The last option is to buy a property, fix it and sell it. That process is a

great way to make big money, meaning we wholesale properties for quick

cash, and we rehab properties for big profits. When we rehab a property,

we might buy that same property for $50,000, but we're going to put

$20,000 or $25,000 worth of renovations and repairs into it. Now we're

into it for, let's say $75,000, and we're going to put it on the market for

$140,000 and it's going to sell for $140,000. We have the ability then to

make... my target number when we do a buy, fix, and sell or a fix and flip,

as we call it, is to make no less than $40,000. Of course, in that

transaction, you need capital to fund the purchase, you need a reliable

contractor who's going to fix the property up, and you need a reliable real

estate agent who's going to help you unload and sell the property once it's

repaired and back on the market.

Interviewer: How do people do real estate investing with no credit, cash, or experience?

Josh: Great question. So, the way you do real estate with no credit and no cash

is by raising capital. You have one of two options. You can either raise

capital from private money partners who are people who have money on

the sidelines. They have money in their IRAs, they have money in a

savings account, they have money in a CD, they have money in annuity or

a bond or the stock market, and they're not happy with the return that

they're getting. There is so much of that money right now available it's

almost ridiculous. There's really nowhere to run to get a good, reliable rate

of return. What I mean is CD rates are extremely low, bond rates are

extremely low, fixed annuity rates are extremely low. They're all below

3%. The stock market is very volatile, up and down, up and down. On

average, the stock market is only going to yield, over a long period of

time, let's call it 30 years, the stock market is only going to yield about 9%

return.

So the way you do deals with no cash and no credit is by going and talking

to what I call private money partners. These are people who have maybe

an old 401K or an old IRA or they have money in a savings account, they

have money in a CD, and the money is just sitting there earning no

interest, or they're not paying attention to it. These people will happily

partner with real estate investors, or loan money to real estate investors to

fund these transactions, provided that the investor with the capital can get,

I feel, a good double-digit rate of return is somewhere between 10 to 25%

return on their money. My target number is 15 to 18%. If I can provide

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somebody an investment opportunity where I do the deal and they give me

the funding and I could pay them 15 to 18% on their money, I can raise a

lot of capital.

Anybody reading this report can raise a lot of capital, because there's just

no other place that somebody can go to get a 15 to 18% rate of return. So

the first way that they do deals with no cash or credit is to raise money.

The second way is to become a wholesaler, to wholesale lease options, and

to wholesale HUD properties, because you don't need any money when

you wholesale a property. You don't need any cash to fund those

transactions.

The experience is going to come from knowledge. Of course, reading

eBooks, reading courses, investing into someone's education is going to

give them the knowledge that they need, and eventually, they're going to

go out and do a deal or two or five or ten. So, the funny thing about

anybody who's been successful with real estate, they all started with no

experience. It's just about going out there and taking the knowledge that

you have and going out there and trying it, just doing it, taking your first

step. Even if you make a mistake, you're one step closer to knowing more

and doing more. The thing that I think most people make the mistake of is

they buy lots of books and tapes and courses and they never do anything

with it. So the experience is going to come over time, and confidence

comes from experience and knowledge, and that's how you make up for it.

Interviewer: Why is now the best time to get into real estate for revenue generation?

Josh: Right now is the best time for a couple reasons. Number one, there are a

ton of home owners who would like to sell who can't. So there's a ton of

lease option wholesaling opportunities. Number two, there's a ton of

government and bank foreclosures that are available right now all across

the United States. Number three, capital is very available, meaning private

money partners. Not banks, not mortgage companies, not hard money

lenders, but private money partners are everywhere. You just have to open

your mouth and talk to people and ask for the money, because there's just

nowhere else for people to get a good rate of return on their IRAs and their

CDs and stuff like that.

Number four is that the market is at its bottom. The market is going to

rebound. The market is going to get better. You're seeing a lot of the

hedge funds and a lot of international investors investing in United States

real estate. The market really can't go any lower, so the market is going to

go up. So now is the time to get in and buy while it's low, and over time,

we'll see more normal appreciation in real estate.

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Interviewer: Can someone be involved in real estate the way you approach real estate

while still having a job, or does it need to be a full-time commitment?

Josh: Great question. Absolutely, somebody can do this part-time. Matter of

fact, a lot of our successful members and students started doing this part-

time. I have a coaching student that I've had for a long time, her name is

Sabrina, and she lives in New York City. She invests in properties in the

city of New York. I've worked with her. She had a full-time job, and she

started investing in real estate part-time. Basically, I was with her the day

she quit her job, and she went full-time into real estate and has never

turned back.

At the beginning, it's just like working out. This is how I like to phrase it.

It's just like working out. Let's say somebody has never been in the gym.

Maybe they're a little bit overweight, and they want to get in shape. If they

want to get in shape and they go to the gym for the first three days in a

row, and they work out for two and a half hours, and they're going

absolutely crazy, eventually by day four, they're going to be pretty beat

down. They're going to be tired, and they're probably never going to go

back to the gym.

So investing in real estate part-time is very similar in that I'd rather see

people ease into it and start to do just one deal a month. They can do that

with two to four hours. They can do that in their spare time. Sending out

emails to people on Craigslist, putting ads on Craigslist. That can all be

done at night, on the weekends. So, not only can people do it part-time,

I've personally worked with people who did it part-time and eventually

went full-time. Matter of fact, I bought my first two investment properties

while I had a full-time job, and I did it part-time before I went full-time.

Interviewer: Do you have any success stories you can relay of students of yours who

went from having a job and transitioned into doing real estate full-time,

which you pretty much just did?

Josh: Sure. I have countless number of students who had a job and were doing

different things. Another student of mine is a guy named Kyle from

Chicago. He was a therapist. He worked with people as a therapist during

the day and started doing real estate part-time in the evenings. He was

doing some pre-foreclosures and short sales and eventually was so

successful at it in the evening he went and closed a couple of really huge

transactions, bought houses and fixed them up and sold them for a big

profit, and he went full-time. I am one of those people. I was a full-time

financial planner, bought my first investment property while I was a full-

time financial planner. It was a two-family rental property. Then I bought

another property that I bought, fixed, and sold while I was still a financial

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planner, and then I went full-time into real estate. I mentioned Sabrina,

who was doing deals part-time and then went full-time.

Interviewer: Is there a specific personality that better lends itself to doing what you do?

Josh: No. There are two types of, not necessarily personalities, but two types of

characteristics, I think, or instincts, that work well in our industry. One is

somebody who's a really good researcher, somebody who's really good at

data and analytics and looking stuff up, because a lot of real estate is just

numbers. It's, I can buy a property for $50,000, I can fix it up for $20,000

I'm into it for $70,000, and I can sell it for $140,000. Well, that sounds

like a pretty good deal to me. There's $70,000 of profit there. So the first

person is somebody who likes data, likes to research, likes numbers, and

likes spreadsheets and putting those things together. That's number one.

The second person is somebody who is a quick state, someone who if they

get an idea, they're just going to go for it. They don't care about the data.

They don't care about the research. They're just a mover and shaker. I'm a

student of a program called the Kolbe Profile, kolbe.com, the Kolbe

Profile. The Kolbe Profile has four different modes or four different types

of instincts. I find that most people in my industry are either what's called

an initiating fact finder, or a high red, meaning that they like data, they

like research, they like the past, they like numbers, they like to research

things. The other mode that I find is successful in my industry is

somebody who's a quick state, which is me. Somebody who sees

something, sees an opportunity, and just goes for it, regardless of what the

repercussions might be. But those aren't really personality traits. Those are

instincts.

Interviewer: Are there any geographical areas that are more effective for applying your

methodology than others?

Josh: Definitely. The two or three strategies that I've talked about, which is the

lease option assignments and the wholesaling government and bank

foreclosures and rehabbing government and bank foreclosures. The middle

of the country. Get rid of the coastlines near the beach. Get rid of those,

and anything in the middle of the country is a great place to do what I do.

The reason why is that property values are a little bit lower than they are

on the coastlines. Coastline properties tend to be a little bit more

expensive. And number two is that we're able to get a lot of big discounts.

When you're in tropical areas or coastline type of areas, you're going to

find a lot of big demand in those areas, and prices are going to be a little

bit higher, and properties are going to be a little bit tougher to find. So

geographically, I would say anything from Nevada over to on the east

coast, Pennsylvania, and then down into Atlanta, Texas, the industrial

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Midwest, the heartland. Texas, those kinds of areas are all great for what I

do.

Interviewer: What's a reasonable expectation someone should set for the first year

revenue goals if they follow your method?

Josh: There's no reason why somebody can't make six figures in their first year

doing what I do. Six figures is only about $8,000 a month in revenue. So

that's about two deals a month, and that's two wholesale deals. $4,000 on

one, $4,000 on the other. $8,000 a month, 12 months, that's about

$100,000 a year. Also, if somebody does one rehab project, two

renovation projects a year - we don't do a renovation project unless we can

make $40,000. So if you do two of those a year, that's $80,000 in one year.

There's no reason why, based on the current circumstances - there's so

much inventory, there's so much capital available - there's no reason why

somebody can't make $100,000 a year.

Now, reasonable? There's no reason why somebody can't... if their goal is

to make an extra $20,000 a year, there's no reason why somebody can't do

one wholesale deal a quarter and make an extra $5,000 every quarter and

make $20,000. But it just depends on how hard somebody wants to work,

how quickly they are to implement. You see, I learned a long time ago that

ideas mean nothing without implementation. There's lots of great ideas,

everyone's got new ideas, but it's often we don't need new ideas. What we

do need to do is just implement the ideas that we already know. It depends

how hard somebody wants to work or how long they want to work. If

somebody is looking for a get rich quick scheme, that's not real estate.

Real estate does take some effort, some knowledge, and some research,

and some time. It's not like you can flip a house today without doing any

work. It doesn't take a lot of work though. It only takes maybe one to four

hours to put together a deal.

Interviewer: What about for the second year and beyond? What should be a realistic

goal that someone could set for themselves?

Josh: Again, it depends how much work they want to put in, but if somebody is

a full-time investor, there's no reason why after the first year they can't

consistently make $100,000 a year or more. I know lots of my students,

friends, myself included, we're in this business to have money, to have

freedom, and to be wealthy. So to get to the point where somebody is

making $200,000 a year, $300,000 a year or more is the goal. Also, to

create long-term passive income, to own properties that will eventually be

paid off from a tenant buyer or a renter who pays the property off, and that

property is now free and clear. It's spitting off income, it's spitting off cash

flow, and it's worth more and more and more every year. So, it should be

very realistic for someone to set their expectations to not make any less

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than $100,000 a year or more and then to leapfrog into year two, year

three, to double that and triple that every year thereafter.

Interviewer: Is there anything else that you'd like to add?

Josh: The only thing I would like to add is anything worthwhile is going to take

some work. When people think, I can do this part-time, and I don't need to

focus on it. Hopefully something will fall in my lap. There's always

somebody out there who's working really hard pursuing their goals, so

those people who are just kind of floating through the wind and hoping

something lucky happens to them, that's probably never going to happen.

Success is a combination of hard work, knowledge, and being in a place

where deals fall in their lap because of the hard work they put in. It's not

luck. It's just opportunity meeting hard work, and all that kind of comes

together. So I would say anything worth pursuing is going to take some

hard work.

Finally, you need to be daring. To chase any kind of dream, goal, some

big, hairy, audacious goal - my friend calls it a B-HAG - big, hairy,

audacious goal, you have to be daring. You have to be willing to try things

you've never tried, do things you've never done, and expand your horizons

and expect more, and go out and try stuff that other people would never

try. You have to be daring, and you have to try new things, and you have

to have some big, hairy, audacious goal that you're trying to pursue.

Because if you're just hoping to do a little bit more, you're probably going

to get a little bit more. But if you pursue some big, hairy, audacious goal

and you end up halfway there, you're probably better off than 90% of the

people out there.

Interviewer: For people interested in finding out more, where do they need to go?

Josh: My main website is www.strategicrealestatecoach.com. They can find all

kinds of tools and resources there and my personal story. I'm a father, I'm

a husband, I have three little kids, but I'm also a pancreatic cancer

survivor. I have a pretty amazing story about how I was diagnosed. My

son was actually just born. My wife had an emergency C-section. My son

was born with a cyst in his neck and was having trouble breathing. My son

had surgery when he was two and a half weeks old, and while my son was

in the hospital, after his surgery, I was 35 years old, and I was diagnosed

with pancreatic cancer. Two months later, I had a surgery. I had a surgery

that saved my life. The surgeon pulled off a surgery that most surgeons

would never even dare to try. So my story of loss and overcome and

challenge and achievement and success and coming back from that is at

www.middlemanincome.com. That's my story, and that's where people

can watch the video of everything that's happened to me in the past year or

so.

16

3 Proven Ways to Quit Your Job in 12 Weeks Flipping Real Estate Jason Medley

Interviewer: How did you get started in real estate investing? What's your background?

Jason: My background is I didn't start out in real estate investing. I started out as

a mortgage broker back in like 2000 and was doing really amazingly well

other than Florida and the market was exploding with refinances. And then

as we got into the 2000s, it was exploding with the housing boom and new

construction. It was a nice ride. I was doing a ton of business. I had 20

loan officers and three or four processes, and things were great. Then all

of a sudden, the market crashed, took a tank, whatever you'd like to see. I

found myself trying to figure out what the heck I was going to do. So I

started going through the process of reinventing myself, and that's when

short sales were starting to come into play at that time, especially in

Florida. Some of the folks were upside down. So I actually started

processing short sale files for a real estate agent. I did not like that,

because it was tough work and I didn't make much from it.

I noticed some other folks that were actually flipping short sales; buying

short sales and reselling at a higher price. So I started doing that in order

to try to get into the real estate investment game. It was cool at that point,

which was five or six years ago, because you didn‟t need any money. And

I went through a period at that time with the market changing and a

divorce and all that kind of good stuff, where I didn't have any. You didn't

need any money at that time, because if you bought a property for sale at

$100,000 on short sale and you could resell it the same day to someone

else who, let's say, would pay $125,000, then you could use their money,

their $125,000 to pay for your $100,000 purchase, and then you got to

keep the profit in the middle. That changed. That's what's called a dry

closing, because you didn't need any funds on the first part.

Then they began to require that you have your own pockets, which meant,

it's all fine and dandy that you've got this property resold at a higher price,

but you can't use their money. You're going to have to bring your own

$100,000. That became a problem for a lot of folks, because a lot of folks

were actually doing those types of transactions, but when that changed, if

you didn't have that kind of money, you were out of the game. So I had a

huge deal on the plate. I was buying for $402,000 and reselling for

$495,000 on the same day. About three days before that, my title

company, the folks that actually closed the deal called and said, "Jason,

you can no longer use your in buyer's money. Today's Wednesday, and on

Friday, you've got to bring $402,000 to close." I thought, well, that's going

to be a problem, because I didn't have $402,000.

17

However, that was one of the best, most amazing moments of my

professional career, because that's when from an investment standpoint

and a money standpoint, it really took off. Because again, I needed

$402,000 to resell for $495,000. So I called a buddy of mine who lent me

the 402 just for a couple of hours. I bought it with $402,000 in the

morning, and I resold it that afternoon for $495,000. To borrow that

money just for a few hours, I gave him back $408,000. So he made what

we call two points on his money. A point is 1% of the loan amount. One

point would be $4,000 on $400,000, and two points would be $408,000.

So needless to say, he enjoyed that quite thoroughly, to make $8,000 for

wiring me $400,000 for a few hours.

When the transaction wrapped up, he said, "Jason, can we do this again?" I

said, "Well, yeah, because there are some rules that have just changed in

the short sales investing space, and everybody that does these is going to

start needing this money for these short-term one-day loans." That is when

my life and my business career really took a dynamic shift from the

struggle I had gone through. I had been very successful as a mortgage

broker, extremely successful, but with the change in the market, and then

as I said going through a lovely divorce, which so many of us have gone

through. I had gone through a tough time.

When I started flipping those short sales and then the change in financing

requirements that's when things just exploded for me, because what I did

was I saw the opportunity to provide that money, that short-term, that one-

day money for other investors across the country who were doing those

same types of deals I was doing. But now, they actually had to have the

money on the first transaction. So again, to make it simple, if you bought a

house for $5 and the same day you were going to sell it for 7, if you didn't

have the $5, you were going to lose that $2 profit.

So, I started a company called iVisionary Financial, and we began to lend

that short-term, one-day money. It's actually called transactional funding.

We got to the point where we were doing 30 to 35 deals a month lending

that money to investors across the country, and it turned into a very robust

business. That's actually how I know a couple of the guys who are also a

part of what this book will become, myself and Josh Cantwell and John.

Josh was a big author, a big coach, a big mentor to a lot of folks and

taught them those types of strategies, and then I would provide the money

to them. That's really when things began to turn around for me, and I've

been blessed beyond measure ever since then, to be back on top and be

enjoying a lot of success. So that's my story.

Interviewer: That's fascinating. I think in that story you‟ve probably answered a variety

of my questions, including the next two, but I am going to ask you to

18

elaborate on them anyway please. What are your top two primary revenue

pillars; the ways you make money with real estate?

Jason: Yeah. I mean, it's changed over the years. My top two pillars right now, I

would say obviously, from the lending perspective. Then, one of the things

that I'll share, and I think would be a real benefit if you're reading this, is

another pillar that I call „Beginner's Luck.‟ We'll probably go into detail

on that. I'll be glad to break that strategy down for you when you're ready.

Interviewer: Okay, you can go now.

Jason: Okay. One of the things that I think is of critical importance is when you

first start out in real estate, when you're looking at traditional methods real

estate can be extremely challenging to get off the ground, because the

reality of it is that becoming a real estate investor requires a whole new set

of skills that can be daunting. You've got to think about whether you're

going to rehab houses or buy houses and wholesale them to other

investors. There's such a unique skill set involved that I think will

typically stop most people in their tracks because of fear.

You may say, what are those things? Think about it. How do you find

those discounted properties? Once you find them and you talk to the seller,

what do you say to them to get them to give you a discount? Once you've

started talking to them, what's the biggest thing you've got to discuss?

What price will you sell it to me for? So many folks are afraid of

determining the wrong value. "I don't know how to determine what that

house is worth," or "Even if I can determine what it's worth in today's

market, it needs repairs, and I don't know how to determine repairs. If it

needs repairs and then I've got to make a profit, how do I put that into the

mix?" Really, determining value and what offer price to make and

negotiation success.

If you can get all that right, then you've got to go down the path of trying

to figure out how to write this daunting contract, which has got details and

things in it that bind you to obviously your word. How can you structure

clauses to where if something goes wrong, you could potentially get out of

it without losing money? Maybe talk about money. Some folks starting out

may not have much money. Typically when you contract out a home, the

seller wants what we call earnest money, or just a little good faith money.

Where do I get the good faith money? So there's just a whole set of skills

that comes with getting starting in real estate that can, a lot of times, put

fear in folks and keep them from going forward.

Or a lot of times, let's say you get through all that, you've got the deal, and

then you say, "Okay, where in the world am I going to get the money to

close on this thing?" So, that's a whole other battle in itself. Being a

19

speaker and an author and a trainer and having products out there that help

investors, one of the things that I've put together was I wanted to figure

out how can folks get started without having to do all of those complicated

things, yet still make money in real estate and create a foundation where,

once you've established that foundation, you can progress into some of

those other more challenging aspects of real estate and grow from there.

So what I did was I created a system called „Beginner's Luck.” What

„Beginner's Luck‟ is, is it's strictly about creating relationships. If you

create relationships, you can make money, and you don't have to do any of

those things I just talked about. You don't have to find the property, you

don't have to determine the price, you don't have to estimate repairs, you

don't have to write contracts. The reason you don't have to do that is

because of the way the market is structured right now.

In this marketplace, you've got basically two sets of people. You've got

people that have a skill set that involves finding these kinds of properties,

but they don't typically have the money. They're just real good

bloodhounds, if you will. Then you've got a group of people who have a

ton of money, and they're called cash buyers. Cash buyers make up about,

at this moment, about 40% of every single transaction that's taking place.

They don't necessarily have the good skill set of finding a good deal. Plus

they don't usually have the time. They just want to create a passive

income. So, you find the deal, I'll buy it, I'll collect the rent, and I don't

want to deal with all that other stuff.

The thing is, and where the opportunity lies, is that sometimes, those two

people don't know each other. The people with the money don't really

know the people who I call the inventory controllers who have got the

great deals. They're often referred to as wholesalers or real estate

wholesalers. When you use „Beginner's Luck,‟ what you do is you focus

on finding and attracting those people that have cash, the cash buyers.

They're very easy to find, extremely easy to find. Then you focus on

finding people that control the inventory. Again, same thing, very easy to

find. They're the folks in the newspaper that have the "we buy houses" ads

and stuff like that.

What you simply do is you place those two folks together. When you

place them together and the person, the cash buyer, purchases a property

from one of the inventory controllers, as you say, or a wholesaler,

whoever it might be, that wholesaler will compensate you for that. When

you do that, you didn't have to find the property, because the wholesaler

had the property. You didn't have to negotiate with the seller, because

they're telling you, "Here's my bottom line." You didn't have to write a big

fancy contract, because the wholesaler already did it. The wholesaler is

going to do it with the cash buyer.

20

You didn't have to inspect the property. You didn't have to determine

value, because all that stuff is already done. You're just simply bringing

those two parties together. For me, I've funded thousands of deals for

investors across the country, and that's tied me to the best of the best. I've

seen what works, what doesn't, what's easy, what's simple, what's

complicated, and what's formulaic. To me, that's the easiest way for

people to get started is following that „Beginner's Luck‟ formula, because

it doesn't have all the cumbersome steps typically associated with typical

real estate, which often deters most new investors. They think „this stuff is

too complicated."

Interviewer: Right. So you just want to be the conduit. You want to be the liaison. You

put one party together with the other party, and then you get compensated

for that.

Jason: Exactly. And you didn't have to go brain-dead in the process. Once you

get that done, once you get a few of those deals under your belt and you've

got some checks coming in and some breathing room, then you've got time

to start learning those necessary skill sets to advance without having the

pressure of, "Oh my gosh, I've got to get a check."

Interviewer: What's the biggest mistake new investors make?

Jason: I think the biggest mistake...I don't think, I know. The biggest mistake that

new investors make is that they don't pick a niche. What I mean by that is

quite simply, there are a hundred ways, if not more, to make money in real

estate. You've got to pick one. What I mean by that is, there are short

sales, there's rehab, there's REOs, there's buying properties at the auction.

I could go on and on and on about the different ways to make money in

real estate.

I think what happens to new real estate investors is they find one way and

they're learning about it, and then somebody else tells them about another

way and they're learning about it, and then another way. Before you know

it, you‟re focused on three or four things. Well that's not focused. Being

that real estate is an in-depth subject, if you don't focus on one, you won't

ever do any of them well. One of the things that I always tell business

folks or someone who's trying to become an entrepreneur is, if you chase

too many rabbits, you're not going to catch a one. That's what my grandma

used to always tell me.

Interviewer: Cute, where are you from?

Jason: I'm from Louisville, Kentucky.

21

So absolutely, I think you've got to pick a niche. You pick a niche and you

say, "This is what I want to do, and this is what's going to feed me." Once

you get that particular niche to where it sustains you, providing income for

you where you can breathe and live on that, then you can start adding in.

"I've been working this „Beginner's Luck‟ type system, and I'm feeling

well with that. Now I'm going to try and do the inventory control. I'm

going to work on wholesale." Then once you get wholesaling down, you

say, "You know, I'm doing really well at this. Maybe I'm going to try and

rehab one of these properties." But I think you've got to master one niche

at a time. Otherwise, you end up chasing four or five and you don't end up

making any money.

Interviewer: What's the top marketing strategy to generate seller leads and buying

opportunities for this revenue pillar?

Jason: Again, the revenue pillar that I've talked about, you don't really have to

generate seller leads. Again, when you talk about some of the other niches

we've talked about, you do. But with the „Beginner's Luck‟ side of things,

you're not really generating what most people would consider sellers,

because you're thinking of the home owner or maybe it's the bank in an

REO situation. But you don't really have to generate seller leads. In fact,

your "seller" is the individual that's already acquired the discounted

property. And again, I call them the people that control the inventory or

"wholesalers." They've already done all of that with the distressed seller.

They've found the property, they've written the contract, they've analyzed

the deal, they've determined its value. They've done all that.

The easiest way to find those people is you can do a few searches. You

can look in your local newspaper. There's a section in pretty much

anybody's local newspaper that says, "We buy houses," and there's a list of

folks in there. Another way you could do it is to go on Google and type in

the words "sell my house back" or "we buy houses" and then your city. I

live in Tampa, so I might go to "we buy houses Tampa" and you'll get a

list of those wholesalers in there. That would probably be the easiest way

to find them. I've got a whole list of... I got about, golly, 10 ways to find

those folks, but those are a couple of fairly simple ones you could start.

Interviewer: What's your top marketing strategy?

Jason: My top marketing strategy. I've got so many that are advanced, but I just

don't think that... to me, there's not any really "marketing" for the people

that control the inventory. I can tell you right where they're at, tell you

how to call them. Probably more important is what to say to them. They've

got the property, those wholesalers, those inventory controllers. But on the

other side, when it comes to finding the cash buyers, I'd say the top

strategy... and again, if you'll notice, everything I'm going through here

22

with you, it doesn't really cost any money. I think that's important when

folks are getting started. But trying to find and create relationships with

cash buyers, I would say the top marketing strategy is what we call bandit

signs. There are physical bandit signs and there are virtual bandit signs.

Bandit signs are the signs that you see when you're driving down the street

and it says, "3.2, cash only, 1,100 square feet, need to sell ASAP, call this

number." That's a bandit sign. So, the top method that I think attracts those

people is, once you have created some relationships with the folks that

have the inventory, again your wholesalers, they can give you a list of

properties, and you can create bandit signs for those properties. The folks

that typically call on those properties, again because you put on there cash

only, those are your cash buyers.

Then you can kind of replicate that into what I call virtual bandit signs,

which is placing those same ads on Craigslist. What will start to happen is,

when you do that marketing, you'll start to accumulate and build a list of

cash buyers. Once you've got a list of folks that have the inventory, then

you've got a list of folks that want it, then you've got to put the two of

them together. Those two strategies, your physical bandit signs, your

virtual bandit signs, are the best marketing to find those cash buyers,

create the relationship, and then start bringing A and B together so you can

see some money.

Interviewer: Why is now the best time to get into real estate for revenue generation?

Jason: I think right now is best time, because the market is starting to stabilize

and maybe turn around in the right direction. When that happens... I don't

know if you remember the good old days. You could buy up homes for

$100,000, and a month later it was worth $110,000. So, that's where we're

at when we have a stabilization going on in the marketplace and possibly

increases start to happen in certain markets. So what happens is, once you

find the property that's discounted... let's say you bought a property for

$50,000 and it's worth $70,000. By the time you sell it, it might be worth

$75,000, because the market is starting to change, the market is starting to

move. In some places across the country, that is very feasible right now.

Like the market I live in, Tampa, is white hot. Most of your major areas

out there are. But most people who are layman and not in the real estate

space aren't aware of it. It's absolutely the reality and the equation. So I

think it's a great time simply for that. A lot of times if you're a newer

investor, if you make some mistakes, you can get yourself in some trouble,

whereas when you're in a market that's starting to turn, sometimes you

make a mistake. "That mistake cost me $2,000, but the property went up

$5,000, so I actually made $3,000." So I think we're in a market that can

buffer any mistakes you make. Again, it's not a huge deal with the system

23

we were talking about, because you don't have any money at risk or

anything like that. That to me is why it's a great time to get started right

now.

Interviewer: Do you have a success story that you can relay of students or associates of

yours who went from having a job and then transitioning to doing full-

time real estate?

Jason: Yes, two friends of mine right there in Tampa. One of them is the

wholesaler/inventory controller, and the other was a gentleman who

implemented the „Beginner's Luck‟ system. He did exactly that. He had

some relationships with cash buyers, and he took that cash buyer to the

gentleman that controlled the inventory, and he was paid I think it was

$3,000 at closing for simply bringing the two folks together.

Interviewer: Are there any geographical areas that are better than others for applying

your type methodology?

Jason: I don't know that there are any geographies that are better than others. I

think certainly, based upon where you live, there's going to be potentially

more opportunity if you live in a big city, where tons of investing is going

on, versus a smaller, maybe a little country town, where obviously there

won't be as much opportunity. At the same time, I kind of look at that in

two ways. One, the way that I just explained.

And then on the other hand, if you live in a smaller town, there probably

won't be near as much competition. I actually just had a gentleman out of

Mississippi, and I can't remember exactly what city he was in. But he lives

in a very, very small town, and he dominates it, because it's just not

something... real estate investing and stuff is just not as visual or as out

front as it is in some other major cities. He's like the only game in town.

He crushes it. Do I think there's more opportunity from a chance to do

more volume in some bigger cities? Yeah. But if you're in a smaller town

and there's not much competition, you might do just as well.

Interviewer: What's a reasonable expectation for someone to set for the first year of

revenue goals if they follow your method?

Jason: I genuinely think that if someone followed this method and they put some

elbow grease into it, I think you could really reasonably expect to make at

least $50,000.

Interviewer: What would you expect in the second year?

Jason: I think the second year it could really be the sky‟s is the limit. Of course,

this is based upon an individual. There will be people that might make

24

$50,000 one year and $300,000 the next. There might be some people that

make $20,000 and then $50,000 the next. It's really about who you are as a

person and as an individual and what kind of work ethic you have and how

fast you are. The thing with what we've talked about, which I call

„Beginner's Luck,‟ is it's a foundational building block to start moving into

something else. For example, if you started out doing „Beginner's Luck‟

your first year, and then you said, "This second year, I'm going to start

doing rehab." Well, there's big bucks in rehab, but a lot more risk. But if

you started getting good in rehab in your second year, you could explode.

If you continue to do „Beginner's Luck,‟ well your income would continue

to grow, but maybe not at the same pace. I don't want to mislead anybody

and say, "$50,000 your first year and a half a million dollars the second."

Interviewer: Right, it depends on the effort, of course.

Jason: It depends on the effort, it depends on the individual, your learning curve.

I just always like to shoot straight with folks.

Interviewer: Sure. Now we're at the end. Let's talk about what you do. You're a

speaker. You're a mentor.

Jason: Speaker, mentor, author.

Interviewer: Author. What did you write?

Jason: My first book is on Amazon. It's called "How to Make Extra Money

Flipping Houses While on Vacation.”

Yeah. It's not to be taken literally, and the forward of the book explains

that. Really what it is, I run a mastermind with about 40 of the top

investors from across the country. I interviewed one of those guys, and he

basically explained how he's automated his business to where he just had

gotten back from the Czech Republic for two and a half months. He was

with his wife and four children and still flipped houses while he was in the

Czech Republic. So really, the book itself was, here's the type of life you

can create once you learn how to automate your business to where it runs

with not a lot of your involvement.

Interviewer: People interested in learning how to get started in real estate investing

should go to www.mybeginnersluck.com.

Jason: Yes. www.mybeginnersluck.com. They can download a free report and

get started.

25

3 Proven Ways to Quit Your Job in 12 Weeks Flipping Real Estate

John Cochran

Interviewer: How did you get started in real estate investing? What's your background?

John Cochran: Well, it's kind of funny the way I got started in real estate investing. I used

to play baseball. I played baseball anywhere from the age of literally 5 to

when I was 19, and I was really good at it. I got hurt. When I was in high

school, I had a lot of pro scouts looking at me to go into the major leagues

when I was in high school. And I got hurt. I dislocated my arm. You're

probably wondering, what the hell does this have to do with anything with

real estate? After I dislocated my arm, I had a call on the answering

machine from a guy named Ed Zanta, a scout for the Colorado Rockies.

He wanted me to try out for his team. Obviously I couldn't do that,

because I had just dislocated my arm and I just got back from the hospital.

Nobody really wanted to look at me anymore. It turned the pro scouts

away from looking at me. So I decided to go to junior college. I picked

Destin, Florida. At the time, it was called Okaloosa-Walton Community

College. The reason I wanted to go there was because there were a lot of

people who had gotten drafted into the major leagues from that college,

and I knew a lot of those people. So that's where I wanted to go.

I graduated high school in 2002 and I bought a house. I bought the house

retail. I really could give two shits about going ahead and getting a deal on

a home at the time. I really didn't know any better. I was a major league

baseball player. I could care less about money or anything like that. So I

went ahead and I paid retail for a house in Destin, Florida. Baseball didn't

end up working out for me. I remember to this day, I caught a ball, and I

just remember, I was just like, do I really want to do this for the rest of my

life? My decision was no.

I ended up quitting the baseball team, which meant that I really had no

reason to be in college anymore down in Florida, but I still had this house.

My mom ended up convincing me to keep this house for a year, just keep

it for a year and just rent it out. I hated it. I did not want to do it. I hired a

property management company to handle it. I wanted nothing to do with

it. A year went by, and my tenant was paying, and then year two came

along, and my tenant stopped paying me.

So, what happened was that, since they stopped paying me, I pretty much

had to make a decision on what I wanted to do with the house. My mom

tried to get me to keep it, and I wanted to get rid of it. Little did I know

that the market in Florida at the time had really boomed. This was back in

2005, about 2004, 2005, the market had really, really went up, and little

did I know that just from holding onto that house, I was able to get a lot

26

of equity, even though I bought it retail. What happened is that I put the

house up on the market myself as a „for sale by owner.‟

I went down there and I painted the house before I really started

outsourcing a lot of stuff. I got carpet installed, etc. Then, I put a „for sale

by owner‟ sign in the yard, and I had about eight people contact me saying

that they wanted that house. Well, I ended up selling the house, and I

made a $57,000 profit. I was 19 years old and I made a $57,000 profit on

that house, and I did nothing. I bought it retail, and then I just let the

market appreciate it, and I got lucky. That's the whole truth. I got lucky.

So what did I do next? I went back to Ohio with my $57,000 check, and to

be honest with you, I blew every single bit of that money because I was 19

years old.

Interviewer: I had that feeling.

John: Yeah. But after I blew all that money, I really started analyzing and

thinking, and I was just like, wait a second. I just made $57,000 on a

house, and that was pretty freaking cool. So, then I started really getting

intrigued with the real estate market. I started getting mentors on my side

and the rest is history on how I just got hooked into the business from that

moment on of making that big profit. I really started learning and studying

everything that I possibly could, and that's how I got into the business.

Interviewer: What are your top two primary revenue pillars; the ways you make money

with real estate?

John: 100% it's wholesaling HUD homes from the government and working

with buyers, 100%. I have one of the largest, if not the largest, buyers‟ list

in the United States. It's self-generated. I did not buy any of the leads, and

I have a buyers list of over 18,000 buyers just from my own local market.

Interviewer: That's impressive. So you really turned out to like what you do.

John: Absolutely. Hell, I'm in Maui right now just chilling in Maui. My business

and everything, it just runs. We do a little bit over $100,000 a month on

the investing side. Then we do about another $50,000 a month just

working with buyers for our real estate brokerage, HomeBackers Realty.

Interviewer: If you were starting out as a new real estate investor in today's market,

what would be the one thing you would focus on?

John: I would focus on wholesaling to bring in quick cash and I would also

focus on building a big buyers‟ list, because the buyers are the fastest

route to the paycheck by far, the easiest way to get money. Whenever you

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have all the buyers and you control the market with all the buyers, you can

pretty much write your own paychecks.

Interviewer: What's the biggest mistake new investors make?

John: The biggest mistake investors make is probably lack of knowledge and

fear. When I was new into the business, it was not overwhelming, but it

was very scary to buy my first couple homes. I'm buying two homes

tomorrow and I'm selling one today, and that's 6,000 miles away from

where I'm at. So, probably not getting the right mentors is another one.

Not getting the right mentors I would say would be another one.

Interviewer: What's the top marketing strategy to generate seller leads and buying

opportunities for this revenue pillar?

John: Well, for seller leads, we focus almost 100% on HUD wholesaling, and

we do not have to market for those seller leads. We just get them off of a

website. We get the seller leads off of a website, and then we have

different bidding strategies that we use in order to buy the properties

cheap. So there's a lot of tips and tricks to the HUD wholesaling business

that I've created. But you do not have to market your seller leads, which is

why I like it. Zero money out of your pocket.

Interviewer: What's your top marketing strategy?

John: To be honest with you, we only market for buyers. Our best marketing

strategy for that is Facebook, Facebook CPC.

Interviewer: Walk me through the A to Z process of doing a deal.

John: Are you talking about a seller deal?

Interviewer: You can pick.

John: For a seller deal, the A to Z process is we will go to hudhomestore.com,

and what we will do is we will download a list of all the properties that we

can buy. Then we import that list that we downloaded from

hudhomestore.com, and we will import that into our own list that I went

ahead and created that knows HUD numbers. So it tells you what to bid

and what to counter. It tells you everything that you need to do from a

spreadsheet. Then what will happen is I will bid on these properties.

Actually I don't know how to do it. I have a virtual system going ahead

and doing it. They will bid on the properties, and then we will get counter

offers backs.

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Fast forwarding, we can either accept their counter offer or not, or they

will flat out just accept our offer. So, once we get an offer accepted, we

will send a package in to the HUD's asset manager. From there, we will

start marketing the property to find our buyer. We will also go through and

email our buyers list to find a buyer for that property. We will show the

property to the buyers prior to going ahead and buying the property, and

then we will schedule a back-to-back closing once we find our buyer. It's

really easy doing the HUD wholesaling as well, because what our strategy

is that we buy the properties from HUD at a discount, and then we sell

them cheaper than what HUD has then up on the market for.

So, to give you an example, if HUD has a property up on the market for

$100,000, we're buying that property for, say, $70,000, but we're bringing

it back to the market for, say, $89,000. So, we're bringing it back to the

market cheaper than what HUD has it up on the market for, and we

completely confused the hell out of the market, because, as you know,

HUD's asking prices for the properties are at bank-owned prices anyway,

so they're really cheap. So, nobody can really figure out how we're buying

the properties so cheap and then bringing them back to the market even

cheaper than what HUD had them up on the market for. Then we close on

them, and we make the money on them.

Interviewer: Nice system. How do people invest in real estate with no credit, cash, or

experience?

John: Raising capital. First of all, you've got to get a mentor to give you the

experience, but you really truly do need zero experience. A lot of our

students, they are very green. We mentor them, put them through all of our

weekly coaching calls, and then they learn from me what has to be done.

You do not need any cash or credit, because you can use the transactional

funding. We actually have two transactional funders that we can

recommend to everybody as well. But you've got to focus on money.

You've got to focus on bringing in private money. The truth of it is that

when you focus on bringing in so much private money and you have all

the money, the deals just come with it.

But it works vice versa as well. Once you find a good real estate deal, the

money is almost attracted to you, because once you find that deal, almost

anybody will fund it because the deal is so good. So you can ask your

friends, your family, stuff like that. That's where a lot of people go wrong

is that they have the fear of not having money hold them back from doing

real estate transactions. But the truth of it is that either when you have the

deal, the money comes with it because all you've got to do is flap your

jaw, or when you raise capital like Josh Cantwell does, you raise a lot of

capital, the deals that you can do are absolutely endless.

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Interviewer: Why is now the best time to get into real estate for revenue generation?

John: We will never have an opportunity like this again in the real estate market.

The market went down, it went up. It's starting to go up a little bit now

again. America is truly on sale. Now is the time to buy and hold

properties as well. So, if you're buying them cheap, they're going to start

appreciating, which they're already starting to go up. So by far, now is the

time to buy and hold. But we do a lot of wholesaling right now as well.

New people need to do a lot of wholesaling right now too. The seasoned

investors need to hold right now.

Interviewer: Can someone be involved in real estate the way you approach it while still

having a job, or does it need to be a full-time commitment?

John: No. Actually, most of the people that we train, they start off with a job.

Then they start making some good paychecks. Our goal is to get them to

quit that job and then get into it full-time.

Interviewer: What's your typical turnaround for that?

John: I've had people buy my HUD wholesaling course and make money within

the first 30 days. So, the whole truth of it is how people implement. If you

implement well and you use the strategies from our teachings, you're

going to crush it and crush it quick. It's all about you and how much you

implement. That's really the truth of it.

Interviewer: Can you relay some success stories of students or associates of yours who

went from having a job and transitioned into doing real estate full-time?

John: Absolutely. There are many people who have gone through our programs

that have a J-O-B, as they call it. They don‟t have any money and they‟re

kind of scared out of their mind. They get into our training. We give them

the confidence to do their first deal if they haven't done a deal yet and just

keep on growing on that. Then we teach them systems so that they can

remove themselves from not only the day-to-day activities of working

inside the business, but remove themselves from their J-O-B to work and

be financially free in real estate, working as their own boss.

Interviewer: What is it that gets people excited about your program? Is it a love of the

industry, the huge potential to make money? Or is it both?

John: I think it's freedom. I think it comes down to living the American dream. I

think everybody wants freedom. Everybody wants to live that lifestyle, but

I think that it starts with money. I think that it starts with money, but

money does not come with freedom by any means. So what my goal is

with all of my trainings is that I show people how to make an

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embarrassing amount of money, but at the same time, I show them how to

create systems so their business does not control them. There was a time

when I was in a lot of debt, and there was a time when it cost me $25,000

a month just to stay in business. I got myself out of all that stuff by... to

keep a long story short, My fiancée broke up with me for a guy in prison.

That was kind of a big awakening for me.

The whole truth of it was I just didn't have any time for her. I was

constantly stressed out, because I had $25,000 that I had to make each and

every single month, and that‟s how I got into a lot of debt. That's when I

developed my video system strategy on how I do systems inside of my

business. That's what they call me. They call me the king of systems for a

reason, because I know how to create systems. I know how to show people

how to create systems, and that's what my goal is, to get everybody to

work on their business rather than inside of their business. So to answer

your question, it starts with money, but it‟s also about freedom.

Interviewer: Systematize the system?

John: Systematize your business so it runs without you, kind of like mine is

running while I am in Maui.

Interviewer: What geographical areas are the most effective when applying your

methodology?

John: It works for the entire country.

Interviewer: Anywhere. International?

John: Absolutely.

Interviewer: What's a reasonable expectation someone should set for their first year

revenue goals if they follow your method?

John: You know, it depends on how hungry they are. I have people coming to

me that they're not as hungry as I am. My goal is to make millions of

dollars a year, and I do that. But a lot of people don't have that burning

desire to make that kind of money. What it really comes down to is asking

yourself why you want to make say $100,000 a year in your business?

Once you identify that, it‟s going to dictate how much money you need to

make.

Maybe your burning „why‟ is to take your family on a vacation every

single year and not ever have to worry about money. So you may want to

make $100,000 a year. Maybe you like to go golfing. Maybe you'd just

like to winter in Maui. You have to define your burning „why‟ first, and

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then you set your revenue goals after that. So, it's kind of a broad question

to be honest with you, but you've got to find out your burning „why.‟ I like

people to set a goal to make at least $5,000 a month starting off. That's

easy with automated HUD wholesaling.

Interviewer: Let‟s talk a little bit about your system, what it is, where people can find

you, and where do you want to go from here?

John: Well, our system is automated HUD wholesaling, and they can go find it

at www.wholesalingmastery.com. That site is all about how I buy HUD

homes. I once bought a HUD home for $18.47. That‟s when I got hooked

on the business. I just really dissected the business from inside and out and

since then, I created a system to duplicate that process.

So I created a course out of that, which is a total of five modules and about

20 hours of training. You get my HUD spreadsheet that already knows

HUD numbers. So all you have to do, just like I explained, from a deal

from start to finish, you just export the list into my spreadsheet, and then

my spreadsheet will tell you what to bid on the properties. Then my

course just shows you how to find the money, how to build a big buyers‟

list out of all these properties that you're going to be buying. How I buy

the properties so cheap. All the 31 different tips and tricks that I use on a

daily basis to buy, this month alone, 14 properties and profit $135,000,

just this month alone. It's all right there inside the course.

Also, I want to talk about another product called “Buyers on Fire,” and I

mentioned earlier that I have one of the biggest, if not the largest, buyers‟

lists in the entire country. That's self-generated leads. You can buy leads

and all this and that, but the whole truth behind it is that whenever you're

buying buyer leads, it's all junk, because you have to build a relationship

with those leads to really put the handcuffs on them and get them to buy

from you. You've got to build that relationship with them, and that's why I

suggest not to buy buyer leads, because you're not building those

handcuffs on those buyers.

So what we do is we have squeeze pages all over the Internet. I use

“Buyers on Fire.” It's the product that I created. And and then we have a

sequence. So they opt into our forms, into our website, and then there's a

sequence that runs. We have autoresponders that run in the background.

It's a funnel, and the very first funnel that they is an educational funnel,

and it runs for the entire course of a year. In that educational funnel, there

are links into every single one of those emails. So, all you do is you

educate them for a year, and whenever they click on one of those links

throughout the entire year, they move to a different funnel. You educate

them on the first funnel and then they‟re in your system.

32

As soon as you catch their attention, they raise their hand. Maybe it's day

one of going onto your funnel. Maybe it's day 364. They watch your

educational video by clicking that link. Now they've raised their hand.

They automatically are moved to a different campaign, a different funnel,

which has nothing but call to actions on there. So instead of educating

them, on the second funnel, there‟s nothing but call to action. "Hey, call

me. Call me. Call me. Email me back and let me know the five properties

that you want to see. Email me this. Email me that." It's all call to actions.

So the two funnels are very different. The first is an educational funnel.

The second funnel is a call-to-action funnel that nurtures your buyers. It

really puts the handcuffs on them, putting you as the expert in the field.

That's how I got 18,000 people on my buyers list, and that's how I can sell

all of my HUD properties or all the properties from the brokerage that we

have. That's how I do 30 transactions per month, because I have the

handcuffs on those 18,000 buyers.

Interviewer: How long did it take to create that system, „Buyers on Fire?‟

John: To create the entire system for the world to have access to it, it took me a

couple months. For me personally, I've been doing it for two years, and it

ended up taking me about six months of testing to find out what my buyers

really wanted so that I could get the handcuffs on them and so that I knew

that they bought from me and only me, not my competitors.

Interviewer: Now people interested in finding out more about your system should go to

www.wholesalingmastery.com?

John: Yes. Actually, the best thing to do is to go to www.thekingofsystems.com.

I have banners and all the courses that I just talked about. Buying a home

for $18.47, etc.

Interviewer: Is „Buyers on Fire‟ a website?

John: Yes it‟s a website, www.buyersonfire.com, and you can find that as well

on www.thekingofsystems.com.

Interviewer: And what's Homebackers Realty?

John: It's www.homebackers.com and that's a real estate brokerage that I own.

Our brokerage, we only work with buyers. We don't work with any sellers.

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Conclusion

Thank you for your interest in Real Estate Investing and the opportunity to present you with

three unique points of view on approaching the housing market as a way toward financial

freedom.

If you would like more information on Net Income Real Estate or to receive our free newsletter,

kindly visit www.netincomerealestate.com.

And, if you have not yet downloaded your free bonuses from each of our three investing pros,

you may follow the links below.

Bonuses:

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