3 presentation notes
- 1. Insider’s EdgeDay 1Educate – Locate – Celebrate
- 2. Training Purpose Make Offers on Property by:Finding BuyersFinding SellersEvaluating PropertyWriting ContractsInsider’s Edge 2010
- 3. Insider's Fast Cash Boot CampInsider’s Cash Flow Boot CampIn Depth TechniquesFull Power TeamExtensive Buyers ListExtensive Sellers ListAll Financing OptionsAll Fast Cash ContractsIn Depth TechniquesFull Power TeamExtensive Tenant listExtensive Sellers ListAll Financing OptionsAll Cash Flow contractsWelcome to UtahInsider’s Edge 2010
- 5. Missed 51% of his shotsInsider’s Edge 2010
- 6. Successful people actually fail more than unsuccessful people do!Richard Petty 1184 Races 200 Wins!!!Insider’s Edge 2010
- 7. Psychology of InvestingGoal SettingWhere are you now?What do you want to accomplish?How will you get there?Insider’s Edge 2010
- 11. Psychology of InvestingInvestor MindsetTreat investing like a business instead of a hobbyInsider’s Edge 2010
- 12. 800 & Local Phone NumbersInsider’s Edge 2010
- 13. Business Email/WebsiteInsider’s Edge 2010
- 14. Business CardsInsider’s Edge 2010
- 15. Business CardInsider’s Edge 2010
- 16. 3 Activities for making $$$Find BuyersFind SellersMake OffersInsider’s Edge 2010
- 17. No Money Down=ORiskInsider’s Edge 2010
- 18. Investment Strategies Fast Cash - Cash Flow - Buy & HoldInsider’s Edge 2010
- 19. Fast Cash TechniquesBird Dog or Property FinderAssignment of ContractDouble ClosingInsider’s Edge 2010
- 20. Bird Dog or Property FinderFind buyer & criteriaHave buyer sign a “Bird dog Agreement”Find motivated seller with like propertyGive buyer all property infoYou get paid if buyer purchases!Insider’s Edge 2010
- 22. Assignment of ContractFind buyer & criteriaFind motivated seller with like propertyVerify buyer’s interest in propertyWrite purchase contract to sellerWrite Assignment of Contract to buyerGet paid up front from buyer/get paid at closing!Insider’s Edge 2010
- 24. Double ClosingFind buyer & criteriaFind motivated seller with like propertyLine up Hard Money or Transactional FundingVerify buyer’s interest in propertyWrite purchase contract to sellerAccept purchase contract from buyerUse Title Co. or Attorney to close both transactions on same dayGet check cut from Title Co. or AttorneyInsider’s Edge 2010
- 26. Power Team - RealtorsInsider’s Edge 2010
- 27. Why use Realtors?Access to real estate leadsMLS, pocket listings, & other industry connectionsComparables, courthouse information, & market statistics Network of professionalsLess legwork for you, weeding out process done, experience with investor dealsLeverage – time & resourcesExperience investing or working with investors in local marketInsider’s Edge 2010
- 28. Finding RealtorsInsider’s Edge 2010
- 29. Finding RealtorsInsider’s Edge 2010
- 30. Ideal RealtorPassionate about:Real estateInvestorsActively working in your areaSend matching leadsSubmit multiple offersLow price/necessary contingenciesPower team member referralsWorked with investorsInvests themselvesUnderstands risk!Insider’s Edge 2010
- 31. Minimum RequirementsExperience PreferredTeachable & hard workingNewbie OKWilling to work with investorsQualified property leadsLow offersUnderstands marketInsider’s Edge 2010
- 32. Things to RememberThey work for YOU!Interview them:Investment criteria, goals & expectations Build rapportBe clear and confidentTake initiative & be assertiveExclusivity agreementsYou decideTry more than one agent initiallyWho does the work?Insider’s Edge 2010
- 33. Call RealtorsInsider’s Edge 2010
- 34. The Buyers List““If you build it, they will come.”Insider’s Edge 2010
- 35. Importance of BuyersRefines your marketFaster turn around timeIncreased profitLess money out-of-pocket Pre-qualified buyersNo wasted effortInsider’s Edge 2010
- 36. Online Search for Buyer AdsCraigsList.orgKijiji.comUPillar.comBackPage.comWebClassifieds.usUSFreeAds.comClassifiedsForFree.comPennySaverUSA.comUse local TV &radio station websitesInsider’s Edge 2010
- 37. 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
- 38. Online Buyer SearchInsider’s Edge 2010
- 39. Online Buyer SearchInsider’s Edge 2010
- 40. Online Buyer SearchInsider’s Edge 2010
- 41. Ad ExampleInsider’s Edge 2010
- 42. Ad ExampleInsider’s Edge 2010
- 43. Ad ExampleInsider’s Edge 2010
- 44. Calling BuyersIntroduce 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
- 45. Qualifying BuyersWhich 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
- 46. Qualifying BuyersRepairs 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
- 48. Call BuyersInsider’s Edge 2010
- 49. Ghost AdsRegular AdsAttention 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.XXXXHandyman Special3bed/2 bathOwner DesperateCall today XXX.XXX.XXXXPriced Below MarketSFR 3/2Great NeighborhoodCall today XXX.XXX.XXXXFixer Upper!!!SFR 3/2Must sell/MotivatedCall today XXX.XXX.XXXXPosting Ads For BuyersInsider’s Edge 2010
- 50. Day 1 ReviewInsider’s Edge 2010
- 51. Day 1 AssignmentsFind BuyersFind RealtorsBring back listingsInsider’s Edge 2010
- 52. Insider’s EdgeDay 2Educate – Locate – Celebrate
- 53. Day 1 AssignmentsFind BuyersFind RealtorsBring back listingsInsider’s Edge 2010
- 54. Review Property ListingsInsider’s Edge 2010
- 55. Set Appointment with Realtor to View HomesInsider’s Edge 2010
- 56. Market AnalysisAreas with greatest potential?Great for a quick flipWhich areas should be avoided? Why?Buyers/sellers market?Local real estate factorsUnemployment, construction, government programs, etc.?Days on market? Average sales priceInsider’s Edge 2010
- 57. Market ResourcesInsider’s Edge 2010
- 58. Preliminary Property EvaluationGet house specsSq Ft/beds & baths/type of neighborhood, etc.Does the property match criteria?Use mapsPull comparablesUse to determine fair market value (FMV)Call sellerVerify house informationDetermine motivationInsider’s Edge 2010
- 59. Look for Deals, not headaches! Insider’s Edge 2010
- 60. Qualifying SellersAsking 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!Insider’s Edge 2010
- 61. Remodeling ResourcesInsider’s Edge 2010
- 62. Contractor CriteriaTime MoneyQualityInsider’s Edge 2010
- 63. Finding Contractors Home Depot/LowesCraigslist - www.craigslist.orgBulletin BoardsLocal Papers Word of Mouth Real Estate Investment Clubs Referrals from your Power Team Yellow pages - www.yellowbook.comInsider’s Edge 2010
- 65. Road Trip!!!Items to takePhoneInspection formPenNotebookClip boardTape measureFlashlightCalculatorInsider’s Edge 2010
- 66. Proof of FundsInsider’s Edge 2010
- 67. Fill Out FormInsider’s Edge 2010
- 69. Proof of Funds LetterInsider’s Edge 2010
- 70. Fill Out FormInsider’s Edge 2010
- 72. Day 2 ReviewInsider’s Edge 2010
- 73. Day 2 AssignmentsProof of Funds LetterRead ContractsBuild Buyers ListInsider’s Edge 2010
- 74. Insider’s EdgeDay 3Educate – Locate – Celebrate
- 75. Day 2 AssignmentsProof of Funds LetterRead ContractsBuild Buyers ListInsider’s Edge 2010
- 77. Transactional Lending & Hard MoneyShort term financing for Double ClosingCost of moneyFeesInterest rateTermPenaltiesInsider’s Edge 2010
- 78. Call Hard Money LenderInsider’s Edge 2010
- 79. Road Trip!!!Items to takeInspection formCommon Repairs Reference FormHome Depot/Lowes shopping listPenNotebookInsider’s Edge 2010
- 80. Running the NumbersAnticipated Selling PriceTotal Repair EstimateClosing CostsEscrow fees $150-$250. Title search/insurance policy-1% of the remaining balance Appraisals $350-$450. Home inspections $250-$400Real estate agent 3%-6%Insider’s Edge 2010
- 81. Running the NumbersHolding CostsFire/hazard insuranceUtilities Mortgage payments Property taxes Ongoing maintenanceProperty management feesLoan servicing fees (seller financing offered)Insider’s Edge 2010
- 82. Fast Cash FormulaAnticipated selling priceClosing costsRepairsHolding costsMarketing Fees/Realtor??????MaximumOfferAmount=Add costs together then subtract from anticipated selling price to get maximum offer amountInsider’s Edge 2010
- 83. ContractsBird-dog AgreementTo buyerReal Estate Purchase Contract (REPC)To sellerAssignment ContractTo buyerReal Estate Purchase ContractTo buyerInsider’s Edge 2010
- 85. Elements of a ContractAnd or AssignsEntity as BuyerProperty DescriptionLegal DescriptionPersonal PropertyPurchase Price Earnest MoneyAcceptance DateClosing DateTitle InsuranceHome warrantee Property Insurance and Tax ProrationClosing vs. Possession DateContingenciesSignatures & DateInsider’s Edge 2010
- 86. 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/AddendumsInsider’s Edge 2010
- 87. 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/AddendumsInsider’s Edge 2010
- 88. Presenting OffersInsider’s Edge 2010
- 89. Presenting Offers on FSBOMake an appointmentIn person is more effectiveAll sellers should be presentEstablish rapportLearn and use namesBuild on common interestsUse legal contractVerbal offers may not be legally bindingDiscuss needed repairsDo not criticize propertyDiscuss terms of the offerInsider’s Edge 2010
- 90. Presenting OffersPractice presentingDiscuss offer priceOffer based on researchBe confidentPeace of mind from sellingRemind sellers of the reasons they want/need to sellThank sellers “I look forward to working with you.”Always be professional & positiveInsider’s Edge 2010
- 91. Write & Present OffersInsider’s Edge 2010
- 92. Day 3 ReviewInsider’s Edge 2010
- 93. Day 3 AssignmentsBuild Buyers ListBuild Sellers ListMake OffersInsider’s Edge 2010
- 94. Congratulations
Editor's Notes
- #28: Real estate agents can be a very valuable resource to add to your power team. Especially when you are first starting out they can help you gain the local market knowledge that you need to successfully invest in your area. They have access to the MLS, pocket listings, and courthouse research. They can offer leads on properties from any of these sources. They can be another set of eyes and ears for you. The real estate agent you are looking is well versed in local market and well connected within the local real estate industry. Their strategic alliances can help you gain access to a variety of different professionals who can be added to your power team and help you do your deals. Essentially, you can shorten your learning curve and business ramp up by piggy backing off of their resources and connections in the local market. You will find that there are a lot of real estate agents, but not all are created equally. We recommend screening them. After all you are hiring them to work for you, you may as well have someone who is doing the work you need and finding the deals that meet your investment criteria. You must align yourself with a real estate who is “investor friendly” . You want to work with someone who understands how a real estate investor operates and what you will need their help with over time. Those who meet this criteria will understand that you will be looking at a lot of properties and offers per week. They do not necessarily have to have years of experience, although that is a beneficial quality to have. They can be new to the industry, but open to what you are trying to do and what you need them to do. If they are not open to this, you need to look for another real estate agent who is. You will not accomplish what you are trying to do without an agents cooperation.
- #33: Don’t jump in and suggest strategies or techniques. Ask what the agent recommends, or has success with. Once you have a relationship built, you can talk more about what you want to do. If you jump in right away with contract assignments, you will likely alienate the agents. They will ask you what resources you have. Don’t worry about being honest. Just ask them how they can help you fill the gaps, regardless of if you need money, credit, or partnerships.
- #65: The neighborhood can make or break an investment. You must make sure that the neighborhood is desirable to your end buyer. You should either use Google maps street view to cruise around the neighborhood or drive through the neighborhood yourself. You will need to look for the condition of the properties in the area. Is there a lot of deferred maintenance and boarded up homes or are they freshly painted with well manicured lawns? Are there people hanging out on the street corners during the day? What about at night? Who lives in this area? Families? How is the school district in this area? Are their bars on the windows and doors? Are there cars up on blocks in the streets or Junkers in the yards? What other debris might there be in the front yards of these properties?