Quick Start in Real Estate Investing

November 21, 2005 — Leave a comment

Rick Brown’s Quick Start Program

Congratulations on taking the first step on your road to success & achieving your goals, dreams and real financial security. Let me assure you that the investment you just made is the best investment you will ever make! Remember, you are investing yourself, your financial future and your family.

Sometimes listening to friends & relatives can be dangerous. When you tell anyone what you are doing many will tell you it can’t be done. That’s because they don’t have enough information. If they knew what you know they would be doing this too. This is a very unique opportunity.

Don’t forget when we talk about buying real estate with little or no money down it doesn’t mean there is no money involved it just means you will be using someone else’s money. Here are some things you can do between now and your three-day training class.

1. Pick a primary area or neighborhood. It should be close to where you live, work or travel to on a daily basis if possible. Pick an area that is moderately priced, where there is high demand. Get to know property values (sold prices) in your area so you know a good opportunity when you see it.

2. Find a good realtor in your area. Tell them you are a real estate investor. You are looking for new listings with motivated sellers. Tell them are looking to buy properties in the area. Tell them you can pay cash and close quick. Would you like to be my realtor? Great! Then ask them for a CMA of the neighborhood. CMA stand for a comparable market analysis. Ask them for a full print out. This will include all pertinent information on all active properties currently for sale, all properties under contract pending closing and all sold properties over the last 90 days. Tell them will go out and drive by all the properties. If you see something that looks you will call them up, they can set up a showing and write up an offer and make a commission if you like it. First look at the sold properties this will tell you the real value of the current active properties that are listed for sale in that area. On the print out the realtor gives you LP: means list price. SP: means sold price. DOM: means days on market.

3. Ask the realtor to provide you a list of all the property owners in your neighborhood. Explain to the realtor you are interested in doing some of your own prospecting for motivated sellers that do not have their properties currently listed for sale. Tell that if you do find a highly motivated seller because of their help you have them write up the offer and will gladly pay them a commission.

4. Now that know what properties are selling for look at the active properties. Remember the only time a realtor will have anything of value to you is if it was just listed that day or the sellers just did a major price reduction because they are now motivated sellers with “Don’t Want It Ities”!

5. Scan the real estate classified section of your local newspaper daily. Look for phrases such as desperate, motivated, must sell, relocating, divorce, estate sale, seller financing, make offer; flexible, For Sale By Owner (FSBO), these are all signs of what might be a motivated seller with a disease called “Don’t Want It Ities”!

6. Check the houses and apartments for rent section look for ads that have an area code that is out of that area. You’re looking for people that are absentee owners trying to manage their property from long distance. They may be motivated sellers.

7. Get motivated sellers to come to you. Spread the word and give out your business cards to friends, neighbors, relatives, coworkers, your doctor, dentist, lenders, realtors, and attorney’s. Put a sign up in the neighborhood, send a letter out to all property owners in your primary service area, run your own ad, put up 3×5 or 5×7 index cards on bulletin boards. Sample “I need to buy a home in neighborhood! Can pay cash and close quick! No agents! No salespeople! No commissions to pay! Your phone number.

8. Here are some powerful internet sites that that offer an abundance of valuable information that can help you identify properties and opportunities in most area’s to speed up your success http://www.homestore.com/, http://www.realtor.com/, www.domania.com, www.ziprealty.com http://www.ziprealty.com/index.jsp you can check property values, current average appreciation percentages, properties for sale, prices, schools, shopping, transportation, crime rates as well as other valuable information about most all areas of the country. You can check property values for most areas of the country at http://www.domainia.com/ and http://www.homeradar.com/. You can check property values at www.domania.com/homepricecheck/index.jsp or http://www.homeradar.com/.

9. When you find a motivated seller find out what they want, how long has it been on the market, what do they owe and why are they selling. Then find out what’s it’ really worth (what could your Realtor sell it for in less than 30 days not the listing agent).

10. You need to analyze each property quickly and determine whether it is a property is worth pursuing.

11. Here are a few areas that can generate big profits and residual income for you. First decide what kind of an opportunity it is: #1 is it a property that is under value that you are going to tie up under contract, assign your contact over to a ready and willing buyer and or investor and get paid a lump sum of money by way of an assignment fee or carry back a sellers second mortgage and create residual income (for this type of transaction you do not need an investor, #2 is it a property that you are going to close on property fix up and resell at market value for a profit (investor or lender will be needed) or is it a property that you are going to buy and hold because the property has a positive cash and will provide you long term residual income (investor or lender needed).

12. In order to assign it over to another ready & willing buyer and make a minimum of 5% to 10% assignment fee so you must be able to buy it at least 12%-15% (this includes your profit and a realtor’s commission) below what a realtor can sell it for in less than 30 days. If you want to make a larger profit just increase the percentage.

13. If you sell your self by running your own ad delete the realtors commission percentage or make the extra profit. Sample ad for selling it yourself:

14. No Money Down! Must sacrifice! Beautiful 3 bedroom 2 bath (home, condo, coop or apartment) in (subdivision or neighborhood) worth $300,000 .00! Comes with $50,000 equity (change to whatever amount is appropriate to your transaction)! First $250,000 takes it away! Must close within __days. First come first serve. Vultures Welcome! Your name & number.

15. When making any offer on any property make sure that after your name as the buyer you must add these words “and or assigns” or “and or nominee” on the purchase agreement. This legally gives you the right to assign your rights in that purchase agreement to another investor, retailer or ready and willing buyer without the seller’s approval.

16. To make a risk free offer: Make sure in the special terms & conditions section of the purchase agreement you include this clause.#1.This offer is subject to and contingent upon the inspection of said property by the buyers investors within ____ days of acceptance of this offer (number of days can vary) should buyers investors not approve of said property the sellers hereby advise, authorize and instructs the escrow / title company (neutral third party handling the transaction, could also be an attorney or real estate company in some parts of the country) to immediately refund all earnest money deposits back to the buyer”.

17. Another possible option instead of an assignment is to sell the property before you close under a separate contract to purchase subject to the closing of your contract and close both transactions back to back simultaneously. If you use this option you will pay two-escrow/ title company fees.

18. Look for vacant houses or properties that may need some TLC, paint carpet and landscaping.

19. You can find an assortment of useful real estate forms & contracts at http://www.totalrealestatesolutions.com/ by clicking on the Tools and Resources section that is located on the home page towards the bottom of the page. There are numerous forms including but not limited to an assignment of contract, generic purchase contacts and rental forms. I recommend using your local purchase agreements these can be obtained from the local board of realtor’s office as well as other forms and agreements.

20. Only buy and hold properties that have a positive cash flow. Here is the formula for getting a positive cash flow: Annual gross income minus annual gross expenses including a vacancy factor, property management fee (15% of gross income) equal your annual net operating income then multiply the annual net operating income by ten. That is the maximum you can afford to pay and have a positive cash flow. If it doesn’t have positive cash but it is still under market value tie up the property and make an assignment fee.

21. Start lining up private investors. Look in your local newspaper, The Wall Street Journal, USA Today, the Internet and word of mouth. In the newspaper investor ads usually say, “Need cash we lend money secured by real estate. Private investors usually will lend up to 70 to 80% of the value of the property and want 8%-14% interest secured by a 1st or 2nd mortgage.

22. One of my lenders is a person named Jeff Del Dotto he can do loans in 48 states. He has loan programs that will lend up to 97% of the value of the property you may contact him at (914) 286-4022. Call him if you need a prequalification letter or when you have a real property under contract that has a positive cash flow or you need cash to close fix up and resell.

23. Get business cards made up: Real Estate Investor, your name address & phone: You can get free business cards at vistaprint.com

You can get great info on upcoming tax lien and tax deed sale dates @ http://www.taxsalelists.comand/ for a nominal fee; you can even get data enhanced lists to properties nationwide.

Bexar county in Texas which is in the San Antonio area pays up to 25% every six months, they hold tax deed sales on the first Tuesday of every month you can find out information on the properties and the sale at www.co.bexar.tx.us/tax contact ph # is (210) 335-2251. The law firm that handles all the tax sale properties for Bexar County may be contacted at (210) 225-4422.

Remember to find a good creative experienced Realtor to work with. A good Realtor can be worth there weight in gold.

If you are going to find a property to assign over and make an assignment fee always try to get as long as possible to close (90 day closing) so you have time to find a ready willing and able buyer to assign it to.

Set a realistic and easy to achieve 60 day goal. Be specific and state a reason: (example: I want to own my first rental/income producing property 60 days from DATE and I want this because: state reason and write down what directed actions you are going to do to achieve your goals!

Visualize your goals as if you have already achieved them.
Then set a 1-year, 3 year and 5-year goal visualize your goals as if you have already achieved them and come to the training. Fasten your seat belt and get ready for your journey to great abundance! You must get out there and get a real offer (in writing) in front of a real seller. When you do these they will know you’re serious and then they only have three options: approve it, reject it or counter it!

You are DNA coded for greatness; don’t let anything or anyone get in the way of you achieving your goals & dreams.

Stay focused, stay persistent and shine bright always. I’m very excited for you and I am looking forward to your success, real financial security and happiness. You can do it! Make it happen!

Have a prosperous year! If you have any questions feel free to call me personally only between the hours of 9am- 5pm California time. If I am on my cellular phone and you get my voice mail leave your name, phone (twice & slow) and best time to reach you (do not leave me details I will discuss your situation when I call you).

Sincerely,

Rick Brown
(760) 419-9004
(PST) 9am-5pm Tues.-Sat.

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