3 presentation notes

Insider’s Edge

Day 1Educate – Locate – Celebrate

Training Purpose

Make Offers on Property by:

1. Finding Buyers2. Finding Sellers3. Evaluating

Property4. Writing

Contracts

Insider’s Edge 2010

Insider's Fast Cash Boot Camp

Insider’s Cash Flow Boot Camp

In Depth Techniques

Full Power TeamExtensive Buyers

ListExtensive Sellers

ListAll Financing

OptionsAll Fast Cash

Contracts

In Depth Techniques

Full Power TeamExtensive Tenant

listExtensive Sellers

ListAll Financing

OptionsAll Cash Flow

contracts

Welcome to Utah



Missed 51% of his shots


Successful people actually fail more than unsuccessful people

do!

Richard Petty 1184 Races 200 Wins!!!


Psychology of Investing

Goal SettingWhere are you now?

What do you want to accomplish?How will you get there?





Psychology of Investing

Investor MindsetTreat investing like a business instead of a

hobby


800 & Local Phone Numbers


Business Email/Website


Business Cards


Business Card


3 Activities for making $$$

1. Find Buyers2. Find Sellers3. Make Offers


No Money Down

= O

RiskInsider’s Edge 2010

Investment Strategies

Fast Cash - Cash Flow - Buy & Hold


Fast Cash Techniques

Bird Dog or Property Finder

Assignment of Contract

Double Closing


Bird Dog or Property Finder

1. Find buyer & criteria2. Have buyer sign a “Bird dog Agreement”3. Find motivated seller with like property4. Give buyer all property info

You get paid if buyer purchases!



Assignment of Contract

1. Find buyer & criteria2. Find motivated seller with like property3. Verify buyer’s interest in property4. Write purchase contract to seller5. Write Assignment of Contract to buyer

Get paid up front from buyer/get paid at closing!



Double Closing

1. Find buyer & criteria2. Find motivated seller with like property3. Line up Hard Money or Transactional

Funding4. Verify buyer’s interest in property5. Write purchase contract to seller6. Accept purchase contract from buyer7. Use Title Co. or Attorney to close both

transactions on same day8. Get check cut from Title Co. or Attorney



Power Team - Realtors


Why use Realtors?

Access to real estate leads MLS, pocket listings, & other industry connections

Comparables, courthouse information, & market statistics

Network of professionals Less legwork for you, weeding out process done,

experience with investor dealsLeverage – time & resourcesExperience investing or working with

investors in local market


Finding Realtors


Finding Realtors


Ideal Realtor

Passionate about: Real estate Investors

Actively working in your areaSend matching leadsSubmit multiple offers

Low price/necessary contingencies

Power team member referrals

Worked with investorsInvests themselves

Understands risk!


Minimum Requirements

Experience Preferred Teachable & hard

working Newbie OK

Willing to work with investors

Qualified property leads

Low offersUnderstands market


Things to Remember

They work for YOU! Interview them:

Investment criteria, goals & expectations

Build rapport Be clear and confident

Take initiative & be assertive

Exclusivity agreements You decide

Try more than one agent initially Who does the work?


Call Realtors


The Buyers List

“

“If you build it, they will come.”


Importance of Buyers

Refines your marketFaster turn around

timeIncreased profitLess money out-of-

pocket Pre-qualified buyersNo wasted effort


Online Search for Buyer Ads

CraigsList.orgKijiji.comUPillar.comBackPage.comWebClassifieds.us USFreeAds.comClassifiedsForFree.comPennySaverUSA.com

Use local TV &radio station websites


http://www.craigslist.org/

http://www.kijiji.com/

http://www.upillar.com/

http://www.backpage.com/

http://www.webclassifieds.us/

http://www.usfreeads.com/

http://www.classifiedsforfree.com/

http://www.pennysaverusa.com/

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”


Online Buyer Search


Online Buyer Search


Online Buyer Search


Ad Example


Ad Example


Ad Example


Calling Buyers

Introduce yourself “Hi (their first name), my

name is (your full name), I’m online looking at your website/Ad and see that you buy houses and I’m curious as to what you’re picking up right now?”

Close conversation “Hey, great to meet you. As

I’m out looking for property for other buyers, and see some that match your criteria I’ll give you a call.”


Qualifying Buyers

Which areas are you most interested in?

Which type of properties do you like to see?

What price range?How much profit do you

need from each deal?What property

characteristics do you look for: Sq ft., # of bed/baths, Acreage,

AmenitiesInsider’s Edge 2010

Qualifying Buyers

Repairs okay? What types?

How quickly can you close?How would you like the deal presented?What do you want included in the packet I

send you?Do you work with:

Bird-dogs? Assignment of contracts?

How many deal a month can you handle?



Call Buyers


Ghost Ads Regular Ads

Handyman Special3bed/2 bathOwner DesperateCall today XXX.XXX.XXXX

Priced Below MarketSFR 3/2Great NeighborhoodCall today XXX.XXX.XXXX

Fixer Upper!!!SFR 3/2Must sell/MotivatedCall today XXX.XXX.XXXX

Attention Investors!!!Stop spending all your time looking for

great deals; let us do the legwork for you. Call today XXX.XXX.XXXX

Buyers Wanted!Buyers needed for multiple investment properties that cash-flow.Call today XXX.XXX.XXXX Cash Buyers Wanted!!!Cash buyers needed for fast closings

onmultiple investment properties.Call today XXX.XXX.XXXX

Posting Ads For Buyers


Day 1 Review


Day 1 Assignments

Find BuyersFind Realtors

Bring back listings


Insider’s Edge


Day 1 Assignments

Find BuyersFind Realtors

Bring back listings


Review Property Listings


Set Appointment with Realtor to View Homes


Market Analysis

Areas with greatest potential? Great for a quick flip

Which areas should be avoided? Why?Buyers/sellers market?Local real estate factors

Unemployment, construction, government programs, etc.?

Days on market? Average sales price


Market Resources


Preliminary Property Evaluation

Get house specs Sq Ft/beds & baths/type of neighborhood, etc.

Does the property match criteria? Use maps

Pull comparables Use to determine fair market value (FMV)

Call seller Verify house information Determine motivation


Look for Deals, not headaches!


Qualifying Sellers

Asking price?Type of neighborhood?Sq Ft?# of beds/baths?Days on market?Why are you selling?Repairs?

Estimated cost?

Consider taking time to build rapport!


Remodeling Resources


Contractor Criteria

Time MoneyQuality


Finding Contractors

Home Depot/LowesCraigslist -

www.craigslist.org Bulletin BoardsLocal Papers Word of Mouth Real Estate Investment

Clubs Referrals from your

Power Team Yellow pages -

www.yellowbook.com


http://www.craigslist.org/

http://www.yellowbook.com/


Road Trip!!!

Items to take Phone Inspection form Pen Notebook Clip board Tape measure Flashlight Calculator


Proof of Funds


Fill Out Form



Proof of Funds Letter


Fill Out Form



Day 2 Review


Day 2 Assignments

Proof of Funds LetterRead Contracts

Build Buyers List


Insider’s Edge


Day 2 Assignments

Proof of Funds LetterRead Contracts

Build Buyers List



Transactional Lending & Hard Money

Short term financing for Double Closing

Cost of money Fees Interest rate Term Penalties


Call Hard Money Lender


Road Trip!!!

Items to take Inspection form Common Repairs

Reference Form Home Depot/Lowes

shopping list Pen Notebook


Running the Numbers

Anticipated Selling PriceTotal Repair EstimateClosing Costs

Escrow fees $150-$250. Title search/insurance policy-1% of the remaining

balance Appraisals $350-$450. Home inspections $250-$400 Real estate agent 3%-6%


Running the Numbers

Holding Costs Fire/hazard insurance Utilities Mortgage payments Property taxes Ongoing maintenance Property management

fees Loan servicing fees

(seller financing offered)


Fast Cash Formula

Closing costsRepairsHolding costsMarketing

Fees/Realtor??????

MaximumOffer

Amount=

Anticipated selling price

Add costs together then subtract from anticipated selling price to get maximum offer amount


Contracts

Bird-dog Agreement To buyer

Real Estate Purchase Contract (REPC) To seller

Assignment Contract To buyer

Real Estate Purchase Contract To buyer Insider’s Edge 2010


Elements of a Contract

And or AssignsEntity as BuyerProperty

DescriptionLegal DescriptionPersonal PropertyPurchase Price Earnest MoneyAcceptance Date

Closing DateTitle InsuranceHome warrantee Property Insurance

and Tax ProrationClosing vs.

Possession DateContingenciesSignatures & Date


1. “This offer is subject to buyer’s/buyer’s partner’s walk-through inspection and acceptance of the same delivered to the seller within 30 days of sellers acceptance to this offer to purchase.”

2. “This offer is subject to a property inspection by a licensed home inspector, the results of which must meet buyers approval.”

3. “Buyer has a right to assign his/her interest in this contract prior to settlement to any person, corporation or entity which he/she may designate.”

Contingencies/Addendums


4. “This offer is subject to approval of buyer’s partner within 30 days of date of acceptance.”

5. “Buyer reserves the right to show the property prior to settlement for the purpose of renting or reselling it, and seller agrees to permit access to buyer at any time from the date of this agreement up to the settlement date.”

6. “All earnest money will be returned to buyer in the event that buyer is not able to conclude contract successfully.”

7. “This sale shall include all appliances and fixtures.”

Contingencies/Addendums


Presenting Offers


Presenting Offers on FSBO

Make an appointment In person is more effective All sellers should be present

Establish rapport Learn and use names Build on common interests

Use legal contract Verbal offers may not be legally binding

Discuss needed repairs Do not criticize property

Discuss terms of the offerInsider’s Edge 2010

Presenting Offers

Practice presenting Discuss offer price Offer based on research Be confident

Peace of mind from selling Remind sellers of the reasons they want/need to sell

Thank sellers “I look forward to working with you.”

Always be professional & positive


Write & Present Offers


Day 3 Review


Day 3 Assignments

Build Buyers ListBuild Sellers List

Make Offers


Congratulations

Documents

3 presentation notes