Showing posts with label Grand Rapids Real Estate Investing. Show all posts
Showing posts with label Grand Rapids Real Estate Investing. Show all posts
Tuesday, July 01, 2008
Real Estate Investing: 3 Actions For Guaranteed Success!
Check out the new real estate investing forums at www.Themillionaireuniversity.com
Eric Medemar is a real estate investor from Grand Rapids, MI. Be sure to get your Free Guide To Real Estate Wholesaling. You can also view Erics real estate investing guide here.
Get your FREE Report "6 steps to wholesaling real estate" at www.TheForeclosurecollege.com
Get your FREE Report "5 Easy steps to becoming a real estate bird dog" at www.BirdDogBiz.com
Thursday, June 19, 2008
REI Summit 2008: 12 Experts 12 Days FREE
Don't miss your chance to Listen in with 12 Real Estate Investing Experts including myself for FREE All at REI Summit 2008.
Starting today www.REISummit2008.com Kicks off with a bang! Be sure to register, only 1000 slots will be open for the teleconference tonight.
Alan Cowgill: Private Lending Expert
Founder of Private Lending Made Easy and the Wildly Popular Where to Get the Money Systems
Diane Kennedy: Tax Strategist and Wealth Creation Expert
Rich Dad Advisor, Best-Selling Author of Tax Loopholes for Real Estate Investors and founder of Tax Loopholes the ultimate resource for paying less tax… legally.
Peter Conti: No Money Down Expert
Best-Selling Author of How to Create Multiple Streams of Income Buying Nice Homes in Nice Areas with Nothing Down, the newly released Commercial Real Estate Investing for Dummies and founder of Mentor Financial Group.
Tom Kish: Unsecured Business Lines of Credit Expert
Creator of The Ultimate Real Estate Investor's Guide: How to Create Wealth Without Using Your Own Cash.
Susan Lassiter-Lyons: Investor Financing Expert
Investor Finance Specialist, Private Equity Mortgage Portfolio Manager, Author of Mortgage Secrets for Real Estate Investors and Creator of the Finance it Right!™ System for Real Estate Investors.
Brad Wozny: Strategic Business Systems and Syndication Expert
Founder of the 8 FIGURE Empire™ strategic syndication system, where you’ll discover from Brad how to quickly become a syndicator to Generate a 6 FIGURE Bank Account and Realize 7 Figure Gains in 7 months. Brad’s endeavors have been featured in Business.com, The Toronto Star, and the Los Angeles Times. He is endorsed by Mark Victor Hansen, co-Creator of Chicken Soup for the Soul™ series, and Robert G. Allen, NY Times-Best Selling Author of Nothing Down.
Ken Stimson: Probate Investing Expert
Creator of the Rivers of Gold Probate Prospecting System.
Eric Medemar: Wholesaling Expert
Eric Medemar is the creator of The Ultimate Wholesaling System and The Ultimate Bird Dog System. Eric has been consulting with investors from New York To Los Angeles, to help them take their investing business to the next level. Eric prides himself on his innovative investing ideas ranging from his one of a kind Profit Stacking Method to his closely guarded secrets for finding and assigning HUD homes.
Dustin Scaffide: Online Lead Generation Expert
Founder of Realnopoly, Massive Online Lead Generation for Investors, Wholesalers and Bird-Dogs.
Monica Villasenor: Commercial Investing Expert
Best-selling Author of The Best Damn Commercial Investing Book Ever Written and star of the upcoming reality show, The Making of a Millionaire.
T.J. Marrs: Mortgage Acceleration Expert
Creator of the Live Free and Clear System for Mortgage Elimination in 3-9 Years, Frequent Contributor to the Wall Street Journal, CNBC’s Power Lunch and Co-Author of The Idiot’s Guide to Foreclosure Investing.
Mike Lautensack: Direct Response Marketing Expert
Founder of Real Estate Wealth Today and Recently Named One of the Top 50 Real Estate Guru’s by Guru Review.
Other Special Appearances and Bonuses...
Kevin Amolsch, author of The 45 Day Investor and Owner of 25 Lease Options
Free 12-Month Subscription to Investor Insights Monthly Newsletter
Don't miss your chance for this once in a life time real estate investing event
Monday, April 07, 2008
Real Estate Investing Courses: Where are your rollerblades?
I am often left perplexed at peoples ability to pass the blame of real estate investing courses not working for their failure as an investor. In reality, most of these people never used any of the ideas to see if they worked or not. To them I dedicate this story.
Mother came home from work to find her son frantically searching the house looking for his roller blades. You see it was the first nice day of spring, and he was just dying to get out on his roller blades. The mother and son began tearing apart the house searching high and low for the elusive roller blades. They started in the garage and worked their way through all of the closets in the house eventually stopping in the attic. The roller blades seemed to have vanished into thin air.
Mother came home from work to find her son frantically searching the house looking for his roller blades. You see it was the first nice day of spring, and he was just dying to get out on his roller blades. The mother and son began tearing apart the house searching high and low for the elusive roller blades. They started in the garage and worked their way through all of the closets in the house eventually stopping in the attic. The roller blades seemed to have vanished into thin air.
Finally the mother looked over to her son and said “Do you remember the last place you saw your skates?”
To which the son replied “In the basement next to the furnace”.
Mom then went on to ask “Well did you try looking there?”
No said her son “The light bulbs burnt out in the basement, it was way to scary to look down there”
Mom grabbed a flashlight and headed downstairs, the roller blades were exactly where he had left them.
How many times are you looking everywhere else but the "scary place" for the answers to life's problems? You know the scary place in your head.
Sunday, March 23, 2008
Real Estate Investing Guide: Using Real Estate Investing Forums
Real estate investing forums can be a great way to gain knowledge for getting a start as a real estate investor. In fact I would recommend visiting and gathering information from as many real estate investing forums as you can on your quest toward becoming a real estate investor.
I would like to offer a few tips on using real estate investing forums most effectively. Here are a few suggestions:
1. Watch out for anyone who uses absolutes. By absolutes I mean to say, watch out for people who say things like "It's always this way", "That never works" or "This works everytime". Most people in the forums mean the best but they fail to mention that "This has been my experience and your experience may be different"
2. Watch out for advice that is given from people who have only read about real estate investing rather than doing any actual investing. These people can typically be spotted because they will miss many of the fine details that go into the transaction. Instead they repeat only the things that everyone else has said rather than adding their own new insights.
3. Take in as much information as you can, then draw your own conclusion. Once you have taken in enough info to come to your own conclusions then it's time to get to work. Don't mistake the process of gathering information as the goal, instead keep in mind that gathering information is a means to an end, rather than the end itself.
I hope these ideas about real estate investing forums will help you move along on your path to real estate investing success.
Get your FREE Guide to real estate wholesaling at www.TheForeclosureCollege.com
Tuesday, March 11, 2008
Obama or Clinton? Who Is Running The Oval Office In Your Head?
Obama or Clinton? Who knows or better yet who should care? Why on earth are so many people worried about politics, when their own lives are so far out of order? To me, many of the people asking questions about politics are like a homeless people asking me what type of shingles they should choose on their house. Why not worry about getting your own life together before trying to change the condition that our nation is in? I realize that politics are very important to the way our country is run, but living your life to the fullest can also help to create a dramatic change for the future of our country. Raising well educated children, getting along with your family, and using your God given talents in life can also create create a huge impact on the shape of America.
It concerns me that many of these people asking me about my political views have absolutely no one sitting in the oval office of their lives. Does it not make sense to elect a decent official to serve as the president of your own mind before you worry about who I am going to vote for? If my son or daughter were in Iraq you can bet I would be trying to elect an official who would bring them back as soon as possible, but in the mean time I would not be running around taking polls on who should be elected.
I challenge those of you who are worried about the next head of state, to become just as worried about the state of your head.
Get your FREE Report "6 steps to wholesaling real estate" at www.TheForeclosurecollege.com
Eric Medemar is a real estate investor and internet marketer from Grand Rapids, MI. Be sure to get your Free Guide To Real Estate Wholesaling. You can also view Erics real estate investing guide here. Eric is also a contributing member to The Real Estate Investing Forums at The Millionaire University.com
Friday, March 07, 2008
Real Estate Investing: Factors Effecting Your Wholesaling Success
I am often asked by other real estate investors how much profit can be made in a wholesaling real estate transaction. There are many aspects to determining how much profit can be made on each deal. In one way or another your profit will be determined by one of the 3 items listed below.
The price of the home- Typically higher priced homes will have more room for profit then lower priced homes. Example: if you can find a home for 50% FMV (Fair market value) and sell the home for 70% FMV then you would have a 20% spread. 20% of $100k is far more than 20% of 20k.
The motivation of the seller-With all things being held equal, the lower the price that you can put the home under contract for, the greater your profit potential will be. Example: If you can buy the home for 50% FMV and you have buyers that are willing to buy homes at 70% FMV, your profit will be far greater than if you put the home under contract at 60% FMV.
The motivation of the buyer- Owner occupant buyers will typically pay far more for a home than another real estate investor. Owner occupant buyers are willing to pay more simply because they are looking for a home to have as their principal residence rather than as an investment property.
I have personally dealt with different variations of all of the above. When conditions have been have been perfect, meaning I had a very motivated seller and a very motivated buyer I have made up to $28,000 on a single transaction without the need for cash or credit. That is one of the reasons why I decided to become a full time real estate wholesaler.
Get your FREE 8 page report "6 steps to wholesaling real estate success" at www.TheForeclosureCollege.com
Sunday, February 24, 2008
Real Estate Investing Guide: Using the 5x5 Decision Making Process
In order to change your life, you must first change the decisions that you make a daily basis. Poor decision making can account for up to 99% of your current position in life. In order to make better decisions we must first identify all of the decisions that we have made that have gotten us up to where we are today. Without knowing the good and bad decisions that we have made it will be nearly impossible to change our lives.
So why do you make so many bad decisions? One of the main reasons for our complete lack of decision-making ability is that our minds are preprogrammed for short term pleasure. Short term pleasure does not necessarily mean that we enjoy what we are doing. Short term pleasure can be derived simply by thinking that what we are currently doing is easier than our other alternatives. The funny part is "easier" does not always mean easier either. Short-term easy often means less effort or less immediate pain. To make things even more complicated "pain" does not always mean pain either. Pain is far too often thrown into a group with performing the unknown. It's funny how many people would much rather have a painful "known" thing happen rather than commit to a wonderful "unknown".One of the tools that I have developed to get around our poor decision making skills is called the 5x5 method. Whenever you need to make a decision ask yourself 5 simple questions.
1. How will this decision impact my life 5 minutes from now.
2. How will this decision impact my life 5 hours from now.
3. If I keep making this decision, how will it affect my life 5 weeks from now.
4. If I keep making this decision, how will it affect my life 5 months from now.
5. If I keep making this decision, how will it affect my life 5 years from now.
If you can derive a positive answer to all of those questions then you can rest easy knowing that you have made a good decision.
Eric Medemar is a real estate consultant from Grand Rapids, MI. Be sure to check out his FREE real estate investing guide as well as his Highly acclaimed real estate investing course where he will show you his easy to understand methods for investing in real estate without cash or credit
Thursday, February 21, 2008
Real Estate Investing Guide: Is Wholesaling Real Estate Illegal?
Is real estate wholesaling illegal? I have heard this question asked dozens of time by new real estate investors from across the United States and my answer is always absolutely not! Many people mistakenly put wholesaling in the same category with the property flipping scams that are now heavily publicized by the media. Illegal property flipping and real estate wholesaling have nothing in common.
Illegal property flipping is a result of buyers paying over inflated amounts for a piece of real estate. Then they either getting a large amount of cash back at closing or they are working hand in hand with the sellers who then pays them off in exchange for buying the piece of property at an over inflated price. The buyer is essentially sacrificing his or her credit in exchange for cash. This over inflation is a result of the market value of a home being far less than what a crooked appraiser can pull sold listings for.
Real estate wholesaling on the other hand is a completely legal activity. Most wholesaling transaction involve either selling a contract to another investor, or buying the home and immediately selling it to another investor at a discount.
Unlike illegal property flipping with real estate wholesaling nobody is getting hurt. Wholesaling presents the perfect win-win scenario for all parties that are involved with the transaction. The buyer is happy because they are getting a great deal on a piece of real estate and the wholesaler is happy because they are making a $5,000-$10,000 fee for their services.
Get your FREE 8 Page Report "6 Steps To wholesaling Success" by clicking this link real estate wholesaling Report
Eric Medemar is a real estate consultant from Grand Rapids, MI. Be sure to check out his FREE real estate investing guide as well as his Highly acclaimed real estate investing course where he will show you his easy to understand methods for investing in real estate without cash or credit
Illegal property flipping is a result of buyers paying over inflated amounts for a piece of real estate. Then they either getting a large amount of cash back at closing or they are working hand in hand with the sellers who then pays them off in exchange for buying the piece of property at an over inflated price. The buyer is essentially sacrificing his or her credit in exchange for cash. This over inflation is a result of the market value of a home being far less than what a crooked appraiser can pull sold listings for.
Real estate wholesaling on the other hand is a completely legal activity. Most wholesaling transaction involve either selling a contract to another investor, or buying the home and immediately selling it to another investor at a discount.
Unlike illegal property flipping with real estate wholesaling nobody is getting hurt. Wholesaling presents the perfect win-win scenario for all parties that are involved with the transaction. The buyer is happy because they are getting a great deal on a piece of real estate and the wholesaler is happy because they are making a $5,000-$10,000 fee for their services.
Get your FREE 8 Page Report "6 Steps To wholesaling Success" by clicking this link real estate wholesaling Report
Eric Medemar is a real estate consultant from Grand Rapids, MI. Be sure to check out his FREE real estate investing guide as well as his Highly acclaimed real estate investing course where he will show you his easy to understand methods for investing in real estate without cash or credit
Thursday, February 07, 2008
Real Estate Investing Guide: Are You Making Elephant Sized Wholesaling Mistakes
The other night I was flipping channels when I stumbled upon a special about elephants. A researcher had been following a group of elephants for the past 15 years and was documenting his findings. Though I am not by any means an avid elephant fan, I found the show very enjoyable.
One of the elephants that he had been researching had just passed away at the tender age of 62. He said that when an elephant dies all of the history and knowledge that the elephant had acquired over their lifetime dies with them. The thought when left alone seems rather elementary. However when I thought about it on a deeper level, it brought to mind how lucky we are to have written communication.
When the old elephant passed away all of his secret feeding spots, watering holes and travel paths went away with him. Sure, the younger elephants were able to learn from the older elephants as they grew up, but I am sure many elephant secrets have been lost over the years. As humans we are extremely lucky to have written communication. Written communication allows us to avoid making the same mistakes that our ancestors made. Written communication also give us the ability to avoid having to reinvent the wheel when we want to accomplish something new with our lives.
Having said that, it puzzles me to no end why people insist on “doing it there way” or worse yet not doing things at all because they “don't know how”. With the endless amount of information available in the world there is no excuse not to be living the lives of our dreams. No matter who you are, where your from or what your current life circumstances are, there is someone who has overcame far more than you, and achieved much more than you, and they have written down exactly how they did it. They have left their secret paths for you to follow.
It does not matter how broke you are even if your living on the streets you can go to the library and read about how other people have overcome situations similar to yours. Unlike the elephants successful humans leave there secrets behind for you to follow, you just need to follow them.
If your a new real estate wholesaler you don't need to make the same mistakes that cost me thousands of dollars. I have written down all of my mistakes and how to avoid them in my Ultimate Real Estate Wholesaling System available at http://www.ultimatewholesalingsystem.com/
You can see more of my articles at http://www.themillionaireuniversity.com/ real estate investing forums
Check out my real estate investing sytems at:
www.UltimateWholesalingsystem.com- the only real estate wholesaling system you will ever need.
www.BirdDogBiz.com- A great real estate bird dog system that allow you to earn while you learn investing.
www.Investorslunch.com - an introduction to wholesaling real estate
www.birddogslunch.com - an introduction to becoming a real estate bird dog.
Plus I am a contributing member of the real estate investing forums at www.Themillionaireuniversity.com
One of the elephants that he had been researching had just passed away at the tender age of 62. He said that when an elephant dies all of the history and knowledge that the elephant had acquired over their lifetime dies with them. The thought when left alone seems rather elementary. However when I thought about it on a deeper level, it brought to mind how lucky we are to have written communication.
When the old elephant passed away all of his secret feeding spots, watering holes and travel paths went away with him. Sure, the younger elephants were able to learn from the older elephants as they grew up, but I am sure many elephant secrets have been lost over the years. As humans we are extremely lucky to have written communication. Written communication allows us to avoid making the same mistakes that our ancestors made. Written communication also give us the ability to avoid having to reinvent the wheel when we want to accomplish something new with our lives.
Having said that, it puzzles me to no end why people insist on “doing it there way” or worse yet not doing things at all because they “don't know how”. With the endless amount of information available in the world there is no excuse not to be living the lives of our dreams. No matter who you are, where your from or what your current life circumstances are, there is someone who has overcame far more than you, and achieved much more than you, and they have written down exactly how they did it. They have left their secret paths for you to follow.
It does not matter how broke you are even if your living on the streets you can go to the library and read about how other people have overcome situations similar to yours. Unlike the elephants successful humans leave there secrets behind for you to follow, you just need to follow them.
If your a new real estate wholesaler you don't need to make the same mistakes that cost me thousands of dollars. I have written down all of my mistakes and how to avoid them in my Ultimate Real Estate Wholesaling System available at http://www.ultimatewholesalingsystem.com/
You can see more of my articles at http://www.themillionaireuniversity.com/ real estate investing forums
Check out my real estate investing sytems at:
www.UltimateWholesalingsystem.com- the only real estate wholesaling system you will ever need.
www.BirdDogBiz.com- A great real estate bird dog system that allow you to earn while you learn investing.
www.Investorslunch.com - an introduction to wholesaling real estate
www.birddogslunch.com - an introduction to becoming a real estate bird dog.
Plus I am a contributing member of the real estate investing forums at www.Themillionaireuniversity.com
Saturday, February 02, 2008
Wholesaling Real Estate: Is Wholesaling Real Estate For You
Real estate wholesaling is without a doubt the lowest risk, and highest paying way to invest in real estate.
Real Estate Wholesaling Is For You If:
Check out my real estate investing sytems at:
www.UltimateWholesalingsystem.com- the only real estate wholesaling system you will ever need.
www.BirdDogBiz.com- A great real estate bird dog system that allow you to earn while you learn investing.
www.Investorslunch.com - an introduction to wholesaling real estate
www.birddogslunch.com - an introduction to becoming a real estate bird dog.
Plus I am a contributing member of the real estate investing forums at www.Themillionaireuniversity.com
Real Estate Wholesaling Is For You If:
- You dont' like the risk associated with traditional real estate wholesaling- Traditional investing methods involve owning a piece of property and hoping that it increases in value. Meanwhile your losing sleep because of a plummeting real estate market, or you have to deal with pain in the a$$ tenants.
- You don't have piles of cash to invest or no cash at all-Many of you want to become investors because you want money, not because you already have money. Traditional investing is next to impossible without money....Not real estate wholesaling though!
- You live in an area where housing prices are flat or falling quickly-Since real estate wholesaling does not require you to buy anything.....You can easily make stress free income, in any real estate market.
- You don't have credit, or you have bruised credit!-Just because life has handed you some tough luck, doesn't mean that you should be banned from real estate investing forever....Real estate wholesaling requires no credit.
- You have no experience as a real estate investor-Real estate wholesaling is the perfect way to break into the real estate investing business. Since wholesaling is a risk free, and requires no cash and no credit, there are no barriers between you and the success that you deserve.
- You could use an extra $5,000-$30,000 a month-Wholesaling real estate is without a doubt the highest paying and lowest risk way to get started as a real estate investor....Real estate wholesaling truly allows you to write your own paycheck.
- You would like more time to spend doing the things you love-Real estate wholesaling provides you with full time pay, for doing part time work. Does it get any better than that!....No risk, full time pay for part time work, no credit needed, and no cash needed....need I say more?
- You like the thought of real estate investing, but hate the thought of tenants-Right now I have over 35 rentals, let me tell you unless you have a "turn excuses into dollar bills converter" I would suggest wholesaling any day over being a landlord!
- You hate the traditional 9-5, lever pulling, a$$ kissing, sucking up thing....that some people call a job!-Okay this one is my hot button.....I don't know about you....But, God did not put me on this earth to trade my time, my esteem, and healthy years slaving away doing something I don't enjoy.
- You aren't the smartest guy in the world-I have to admit this is one of the reasons that I enjoy real estate wholesaling so much. I am not that smart, but I can make alot of money as a real estate wholesaler.
To get your FREE Report: 6 Steps to Wholesaling Success Click Here
Check out my real estate investing sytems at:
www.UltimateWholesalingsystem.com- the only real estate wholesaling system you will ever need.
www.BirdDogBiz.com- A great real estate bird dog system that allow you to earn while you learn investing.
www.Investorslunch.com - an introduction to wholesaling real estate
www.birddogslunch.com - an introduction to becoming a real estate bird dog.
Plus I am a contributing member of the real estate investing forums at www.Themillionaireuniversity.com
Saturday, January 19, 2008
Real Estate Investing Guide: Finding Buyers For Your Wholesale Deals
I get email virtually every day from people who want to know where to find buyers for their real estate wholesaling deals. So I figured I would put together most of the ideas that I have used or have seen used for finding buyers. I have used all of these in my own real estate wholesaling business
Keep in mind these are ways that I or my clients have actually used, so I know that they work because I have done it.
1. We Buy Houses Signs I call every single one of these signs that I see, I actually keep a note book full of numbers and info that I find out about these companies when I call.
I usually ask them whether they are still buying, what they are looking for, what percentage up FMV they are typically paying, and what areas of town they want to buy in.
While I have them on the phone I also ask them if they wholesale out any of their homes, if they do then I ask them to call me when they have something good. I tell them that if the deal is right I can close in less than 2 weeks with cash.(I can do this because I have other buyers already in place to buy their deals, sometimes these buyers could be other cash for your house buyers)
Here is a sample of a deal that I put together using this.
1. I called a we buy houses sign
2. Found out where they were looking
3. Put a home under contract for $52k in that area
4. Called them and let them know.
5. I signed a 6 month lease option with them for $64k
6. I closed the home.
7. The lease option started
8. He sold the home
9. We close this week, I make about $12,000 (I also made commission when I bought the house, because im a realtor)
10. He makes around $12k.
11. Were all happy.
Take a real estate wholesaler to lunch visit http://www.investorslunch.com/
2. Call realtors I call realtors and find out if they have any cash buyers that are looking to buy some wholesale deals. It varies on what I offer to pay them but typically I offer 10%-20% of my profit, or a flat 2-3% fee, each time the buyer they have given me buys a home. It creates a win- win, I get a buyer and they get paid whenever their buyer buys a home.
I offer the continuous pay because a realtors worst fear is that they give you a buyer and he buys from you, then when they have a good property to show their buyers they cant buy because they have already purchased from you.
If the realtors dont have cash buyers, I tell them that if they bump into any great deals, they should call me and if the deals good enough we can buy with cash and close in less than 2 weeks.( Often times you can use other realtors buyers to buy another realtors house and you can make money setting the two up)
An example of one of my clients deals that he ran this way.
1. I called my client about a great HUD deal
2. He liked the deal and put the home under contract for $115k (I made a $4800 commission on the home when it closed so I was happy)
3. We had 60 days to close the HUD home so he started calling realtors
4. He found a realtor with a cash buyer that was willing to pay $122,000
5. We assigned the contract (this is a secret)
6. We went to closing and his buyer brought $122,000 cashiers check.
7. My buyer left with a check for $7,000 ( he used none of his own money, and I found him the house so he was happy)
8. I left with my $4800 commission
9. The realtor who brought the buyer took no commission but got a commitment from his buyer that he would list the home with him when he sold it.
3. Newspaper ads I dont personally use this one, I have clients who have had great success with it though. They simply place a small classified ad that reads "Looking for buyers to purchase homes at 50-70% of true value"
I have picked up endless buyers with this ad though "Free List of 45 foreclosed/distressed homes" call or visit www.$$$.com. The reason that I have had so much success with this ad is because anyone thinking of buying real estate would much rather get a free list of 45 then have to call each individual ad. You can have a local realtor put together a list of properties for you and email them to you if you cant find your own. Then take the list that they send you and email it out to people that respond to your ad. Keep in mind you dont really care about the list that you send, you care about getting the name, phone number, and buying qualifications of responding buyers.
A real life example.
1. I placed my free list ad
2. I got about 30 responses for the month
3. Found one buyer who has paid me over $75,000 in commisions over the next 3 years on deals I brought him.
These were realtor commissions, but if you can find a buyer who is taking the kind of action he was you could seriously line your pockets wholesaling to him.
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4. HUD homes this is my own technique that I started using to get buyers just for my realtor purposes. Watch for a great deal on a HUD home or any great deal for that matter, then park outside for a few hours and talk to the people going to check out the home. Most of the areas investors will find there way to the property and you can give them your card and be sure to get there info. Tell them that you run into alot of deals and ask them if they would like you to give them a call when you run into something decent.
A personal example.
1. I went to look at a good HUD home that I was going to buy myself.
2. The neighbor came over and wanted to see the home while I was there.
3. I showed him the home and he ended up buying it from me.
4. I ended up making $2500 in commission on it.
If I were not a realtor, I would have simply talked to him and found out what he was willing to pay, then wrote up a wholesale contract, then put the home under contract with HUD, then played the spread.
This was my most recent deal, but I have picked up endless buyers for other homes while parked outside of HUD homes. I call it hunting for buyers. Its kind of like deer hunting with a bait pile. The home is the bait pile and the buyers are all coming to eat.
Take advantage of my proven real estate system visit http://www.theforeclosurecollege.com/
4. Talk to your current buyers buyer typically know other buyers, ask your buyers if they know of anyone else who is buying (let them know you will only call the referal if they are passing on the property). You also might offer to pay your buyer for a referall fee if one of there people end up buying a house from you. This technique also works great if you have a buyer that only wants to buy in a certain area, then you can call their referall if you have a home outside that area.
Personal example.
1. One of my buyers had too many homes and could not buy.
2. I asked him if he knew anyone else who might be interested.
3. He gave me the number to a cousin who was an even bigger investor
4. I ended up selling 3 homes to his cousin this year, and paid him a referal for each one.
5.Local REI meetings If you have a local investor club join it, if you dont then start one. It kind of speaks for itself that this is where many great buyers will be. Just be sure you know a fair bit about what you are doing before talking to very many people about potential deals. The last thing you want to do is burn alot of bridges by showing your new found buyers a bunch of crap.
6. Birddogs for buyers Outside of having bird dogs look for homes for you, you can also have them look for buyers for you. Give them your cards and have them hand them out to people they might meet that are looking to get into real estate investing.
7. Brochure Boxes Just like realtors use brochure boxes you can use them to. If you have a property to move leave a brochure box that talks minimally about the property that it is left at, always be sure to leave out pertitant info like price, sqft, or bed/baths. If you give all the info away then people will never call you about the property. Focus the brochure mainly on other potential deals in the area or say that you are looking for buyers for properties at 50-70%FMV.
Find out about government foreclosures Click Here!
8. Out of towner and landlords Many people sell themselves short when they are dialing for dollars. Typically people call or mail out of town owners and other landlords to see if they want to sell. The funny part is if they dont want to sell then there is a chance that they want to buy, so ask them if they arent selling, then would they like to buy some more, or if your mailing then include buying info on your mailer as well.
For more info on wholesaling real estate and real estate bird dogging
Eric Medemar specializes in Grand Rapids Foreclosures, Grand Rapids HUD homes, and Grand Rapids Real Estate Investing.
Eric Medemar is a real estate consultant from Grand Rapids, MI. Be sure to check out his FREE real estate investing guide as well as his Highly acclaimed real estate investing course where he will show you his easy to understand methods for investing in real estate without cash or credit.
Keep in mind these are ways that I or my clients have actually used, so I know that they work because I have done it.
1. We Buy Houses Signs I call every single one of these signs that I see, I actually keep a note book full of numbers and info that I find out about these companies when I call.
I usually ask them whether they are still buying, what they are looking for, what percentage up FMV they are typically paying, and what areas of town they want to buy in.
While I have them on the phone I also ask them if they wholesale out any of their homes, if they do then I ask them to call me when they have something good. I tell them that if the deal is right I can close in less than 2 weeks with cash.(I can do this because I have other buyers already in place to buy their deals, sometimes these buyers could be other cash for your house buyers)
Here is a sample of a deal that I put together using this.
1. I called a we buy houses sign
2. Found out where they were looking
3. Put a home under contract for $52k in that area
4. Called them and let them know.
5. I signed a 6 month lease option with them for $64k
6. I closed the home.
7. The lease option started
8. He sold the home
9. We close this week, I make about $12,000 (I also made commission when I bought the house, because im a realtor)
10. He makes around $12k.
11. Were all happy.
Take a real estate wholesaler to lunch visit http://www.investorslunch.com/
2. Call realtors I call realtors and find out if they have any cash buyers that are looking to buy some wholesale deals. It varies on what I offer to pay them but typically I offer 10%-20% of my profit, or a flat 2-3% fee, each time the buyer they have given me buys a home. It creates a win- win, I get a buyer and they get paid whenever their buyer buys a home.
I offer the continuous pay because a realtors worst fear is that they give you a buyer and he buys from you, then when they have a good property to show their buyers they cant buy because they have already purchased from you.
If the realtors dont have cash buyers, I tell them that if they bump into any great deals, they should call me and if the deals good enough we can buy with cash and close in less than 2 weeks.( Often times you can use other realtors buyers to buy another realtors house and you can make money setting the two up)
An example of one of my clients deals that he ran this way.
1. I called my client about a great HUD deal
2. He liked the deal and put the home under contract for $115k (I made a $4800 commission on the home when it closed so I was happy)
3. We had 60 days to close the HUD home so he started calling realtors
4. He found a realtor with a cash buyer that was willing to pay $122,000
5. We assigned the contract (this is a secret)
6. We went to closing and his buyer brought $122,000 cashiers check.
7. My buyer left with a check for $7,000 ( he used none of his own money, and I found him the house so he was happy)
8. I left with my $4800 commission
9. The realtor who brought the buyer took no commission but got a commitment from his buyer that he would list the home with him when he sold it.
3. Newspaper ads I dont personally use this one, I have clients who have had great success with it though. They simply place a small classified ad that reads "Looking for buyers to purchase homes at 50-70% of true value"
I have picked up endless buyers with this ad though "Free List of 45 foreclosed/distressed homes" call or visit www.$$$.com. The reason that I have had so much success with this ad is because anyone thinking of buying real estate would much rather get a free list of 45 then have to call each individual ad. You can have a local realtor put together a list of properties for you and email them to you if you cant find your own. Then take the list that they send you and email it out to people that respond to your ad. Keep in mind you dont really care about the list that you send, you care about getting the name, phone number, and buying qualifications of responding buyers.
A real life example.
1. I placed my free list ad
2. I got about 30 responses for the month
3. Found one buyer who has paid me over $75,000 in commisions over the next 3 years on deals I brought him.
These were realtor commissions, but if you can find a buyer who is taking the kind of action he was you could seriously line your pockets wholesaling to him.
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4. HUD homes this is my own technique that I started using to get buyers just for my realtor purposes. Watch for a great deal on a HUD home or any great deal for that matter, then park outside for a few hours and talk to the people going to check out the home. Most of the areas investors will find there way to the property and you can give them your card and be sure to get there info. Tell them that you run into alot of deals and ask them if they would like you to give them a call when you run into something decent.
A personal example.
1. I went to look at a good HUD home that I was going to buy myself.
2. The neighbor came over and wanted to see the home while I was there.
3. I showed him the home and he ended up buying it from me.
4. I ended up making $2500 in commission on it.
If I were not a realtor, I would have simply talked to him and found out what he was willing to pay, then wrote up a wholesale contract, then put the home under contract with HUD, then played the spread.
This was my most recent deal, but I have picked up endless buyers for other homes while parked outside of HUD homes. I call it hunting for buyers. Its kind of like deer hunting with a bait pile. The home is the bait pile and the buyers are all coming to eat.
Take advantage of my proven real estate system visit http://www.theforeclosurecollege.com/
4. Talk to your current buyers buyer typically know other buyers, ask your buyers if they know of anyone else who is buying (let them know you will only call the referal if they are passing on the property). You also might offer to pay your buyer for a referall fee if one of there people end up buying a house from you. This technique also works great if you have a buyer that only wants to buy in a certain area, then you can call their referall if you have a home outside that area.
Personal example.
1. One of my buyers had too many homes and could not buy.
2. I asked him if he knew anyone else who might be interested.
3. He gave me the number to a cousin who was an even bigger investor
4. I ended up selling 3 homes to his cousin this year, and paid him a referal for each one.
5.Local REI meetings If you have a local investor club join it, if you dont then start one. It kind of speaks for itself that this is where many great buyers will be. Just be sure you know a fair bit about what you are doing before talking to very many people about potential deals. The last thing you want to do is burn alot of bridges by showing your new found buyers a bunch of crap.
6. Birddogs for buyers Outside of having bird dogs look for homes for you, you can also have them look for buyers for you. Give them your cards and have them hand them out to people they might meet that are looking to get into real estate investing.
7. Brochure Boxes Just like realtors use brochure boxes you can use them to. If you have a property to move leave a brochure box that talks minimally about the property that it is left at, always be sure to leave out pertitant info like price, sqft, or bed/baths. If you give all the info away then people will never call you about the property. Focus the brochure mainly on other potential deals in the area or say that you are looking for buyers for properties at 50-70%FMV.
Find out about government foreclosures Click Here!
8. Out of towner and landlords Many people sell themselves short when they are dialing for dollars. Typically people call or mail out of town owners and other landlords to see if they want to sell. The funny part is if they dont want to sell then there is a chance that they want to buy, so ask them if they arent selling, then would they like to buy some more, or if your mailing then include buying info on your mailer as well.
For more info on wholesaling real estate and real estate bird dogging
Eric Medemar specializes in Grand Rapids Foreclosures, Grand Rapids HUD homes, and Grand Rapids Real Estate Investing.
Eric Medemar is a real estate consultant from Grand Rapids, MI. Be sure to check out his FREE real estate investing guide as well as his Highly acclaimed real estate investing course where he will show you his easy to understand methods for investing in real estate without cash or credit.
Sunday, November 25, 2007
Wholesaling Real Estate: Using Detachment to Succeed In Real Estate Investing
Real Estate Wholesaling is one of the most powerful wealth builders that does not require cash or credit. Far too many people complicate the wholesaling real estate process with their "what if" worries. What if I cannot find a buyer? What if the market changes? These are just a couple of the "what ifs" that first time and even seasoned real estate wholesalers spend far too much time on. Detachment is the process of pulling your emotions away from the outcome of any scenario.
The process of detachment will help you pull your emotions out of the real estate transaction. Detachment leaves you in a far better place to make decisions relating to real estate wholesaling, because there is no emotion or baggage that you need to include. Detachment sets you free from "what ifs", because all of your "what ifs" can be answered with "so whats". Not that your "what if's" are not legitimate concerns, but most of the time they are only emotional responses to issues that you bring up in your own head, rather than real world happenings.
Detachment can be achieved through realizing that "you" are not your outcomes. If the real estate market plummets to 10 year lows, you are still you. If the market skyrockets to all time highs, you are still just you. "You" will essentially be just you, regardless of the outcome of any real estate transaction. So stop stalling, I promise the world will not end if you make a mistake.
Feel free to check out my real estate wholesaling and real estate bird dog blog at www.birddogsblog.com, or check out my real estate wholesaling Real Estate Courses at www.UltimateWholesalingSystem.com or www.TheForeclosureCollege.com or my $30 introduction to real estate wholesaling course at www.InvestorsLunch.com
The process of detachment will help you pull your emotions out of the real estate transaction. Detachment leaves you in a far better place to make decisions relating to real estate wholesaling, because there is no emotion or baggage that you need to include. Detachment sets you free from "what ifs", because all of your "what ifs" can be answered with "so whats". Not that your "what if's" are not legitimate concerns, but most of the time they are only emotional responses to issues that you bring up in your own head, rather than real world happenings.
Detachment can be achieved through realizing that "you" are not your outcomes. If the real estate market plummets to 10 year lows, you are still you. If the market skyrockets to all time highs, you are still just you. "You" will essentially be just you, regardless of the outcome of any real estate transaction. So stop stalling, I promise the world will not end if you make a mistake.
Feel free to check out my real estate wholesaling and real estate bird dog blog at www.birddogsblog.com, or check out my real estate wholesaling Real Estate Courses at www.UltimateWholesalingSystem.com or www.TheForeclosureCollege.com or my $30 introduction to real estate wholesaling course at www.InvestorsLunch.com
Real Estate Investing: Termite Inspections For Our Minds
Check out my real estate investing courses at:
www.UltimateWholesalingSystem.com
www.BirdDogBiz.com
www.InvestorsLunch.com
www.BirdDogsLunch.com
www.TheForeclosureCollege.com
As real estate investors many of us are all too familiar with termites. I have lost a couple of sales because a home was infested with termites. Why are termites so dangerous? After all they are just a small bug, what harm could one little bug do? As I am sure you know, it's not one termite that destroys a house, it's a colony, but a colony is started with just a couple of bugs. If a couple of termites are allowed to penetrate the foundation of a home, a colony will soon arise.
Bad thoughts are a lot like termites. One bad thought will not take you down. The problem is, if you let one bad thought in, then one leads to another, then another. Soon you have your own colony of bad thoughts. It will not take long for a colony of bad thoughts to begin munching away at the foundation of your life.
Food for your bad thoughts is available every where. Our morning news is a breakfast for the termites of our minds. “Three dead today in a triple homicide” touts the smiling news person. Followed by “Our housing market is tumbling faster than Brittney's career”. The amazing thing with the news is that many Americans start their days with the news, and end their days with the news. I guess bad thoughts need their dinner too.
It is no wonder that America is one of the most wealthy nations of the world, yet our depression rates are skyrocketing, and our health is tumbling more rapidly than ever. So many Americans are being eaten alive by the termites of their minds. I think it's time to send in the termite inspector for the mind, that inspector is awareness.
We need to pay attention to. the things that we pay attention to. We need to start a bad thought extermination program. By taking the food from the bad thoughts, soon the bad thoughts will realize that they need to go someplace else if they want to eat. What are you feeding your mind? Are you starting your days with the breakfast of champions, or with 2 homicides over easy, and a side order of doom?
Feel free to check out my real estate wholesaling and real estate bird dog blog at www.birddogsblog..com, or check out my real estate wholesaling Real Estate Courses at www.UltimateWholesalingSystem.com or www.TheForeclosureCollege.com or my $30 introduction to real estate wholesaling course at www.InvestorsLunch.com
www.UltimateWholesalingSystem.com
www.BirdDogBiz.com
www.InvestorsLunch.com
www.BirdDogsLunch.com
www.TheForeclosureCollege.com
As real estate investors many of us are all too familiar with termites. I have lost a couple of sales because a home was infested with termites. Why are termites so dangerous? After all they are just a small bug, what harm could one little bug do? As I am sure you know, it's not one termite that destroys a house, it's a colony, but a colony is started with just a couple of bugs. If a couple of termites are allowed to penetrate the foundation of a home, a colony will soon arise.
Bad thoughts are a lot like termites. One bad thought will not take you down. The problem is, if you let one bad thought in, then one leads to another, then another. Soon you have your own colony of bad thoughts. It will not take long for a colony of bad thoughts to begin munching away at the foundation of your life.
Food for your bad thoughts is available every where. Our morning news is a breakfast for the termites of our minds. “Three dead today in a triple homicide” touts the smiling news person. Followed by “Our housing market is tumbling faster than Brittney's career”. The amazing thing with the news is that many Americans start their days with the news, and end their days with the news. I guess bad thoughts need their dinner too.
It is no wonder that America is one of the most wealthy nations of the world, yet our depression rates are skyrocketing, and our health is tumbling more rapidly than ever. So many Americans are being eaten alive by the termites of their minds. I think it's time to send in the termite inspector for the mind, that inspector is awareness.
We need to pay attention to. the things that we pay attention to. We need to start a bad thought extermination program. By taking the food from the bad thoughts, soon the bad thoughts will realize that they need to go someplace else if they want to eat. What are you feeding your mind? Are you starting your days with the breakfast of champions, or with 2 homicides over easy, and a side order of doom?
Feel free to check out my real estate wholesaling and real estate bird dog blog at www.birddogsblog..com, or check out my real estate wholesaling Real Estate Courses at www.UltimateWholesalingSystem.com or www.TheForeclosureCollege.com or my $30 introduction to real estate wholesaling course at www.InvestorsLunch.com
Friday, October 19, 2007
Real Estate Investing: 13 Lessons I Have Learned
I thought I might share some lessons and observations that I have made while being a landlord, I would love to here some other lessons so that I may not need to discover them on my own. These are all things that I have actually seen, done and learned while real estate investing.
1. If someone gets shot in your house, regular carpet cleaner (Resolve) does not work to remove the nasty stuff that comes out when you get shot.
2. Normal people do not want to live in a house where the neighbors have spray painted R.I.P James Smith on the side walk.
3. If a tenant calls and begins the conversation with "I have always liked you", or " I hope your having a blessed day" it really means "I do not intend on paying rent this month".
4. When a prospective tenant says "I live with my grand mother, or any other relative" they are actually saying "There is not a landlord in the world that would give me a good reference, so I will just say I live at home".
5. If a tenant offers to paint a rental unit for their security deposit, and they say they are good painters. It really means that they are experts at painting linoleom, wood floors, and windows, but your walls may not turn out right. Do they make a 2000 sqft tarp?
6. When a tenant says that they "Don't do drugs" they really mean "I don't do certain drugs". I ask "Do you do drugs?" they say to me "No I hate drugs", they actually mean, "I hate crack, but weed and vicodin are staples in my life.
7. If your ceiling is torn down in one of your rental properties and the tenant tries to convince you that "It just Fell", what they really mean is "There was a drug bust here, and we were growing weed in the cieling".
8. Somehow the postal system is being very discriminate to only my tenants. This is an actual quote "Eric, I know this is the third month in a row that my social security check has not shown up on time, but the postmaster said "He fixed it".
9. Do not call a heating and cooling guy when a tenant calls and says "My furnace isnt working" because what they really mean is "I have the heat set at 90 and its 95 in here, so my furnace isnt coming on".
10. This is just a suspicion, but I think tenants are in cahoots with the gas companies, because I have walked into units where the landlord is paying the heat and I swear its 100 degrees, and they have all the windows open in the middle of winter. I asked them why the windows were open, and the furnace was on and they replied "The heats Free". They act as if the gas company gives them a dollar for every dollar they waste on gas.
11. A house, is just not a house, until it has what I call the "Ghetto stamp of approval", this is when I install new carpet and within 30 minutes of moving in, the tenant has burned the outline of the iron into the carpet in at least 6 spots. What are they doing ironing anyway? Unless they need to wear a suit and tie to the Department of human services.
12. I have found this very interesting, I live in a nice neighborhood with very nice homes, and many of my neighbors work 60+ hrs a week, and they have yards that look like the ninth whole at a golf course, and they maintain it themselves. Many of my tenants on the other hand, work 2 hours a week depending on the length of unemployment line, so one might deduce that their yard would be drop dead gorgeous, as they have so much time to work in it. This is not the case however, I can see missing a Twinky wrapper when you get out of your car, but how in the heck do you accidentally leave a couch in the front yard.
13. It is possible to mow a lawn, with a push mower in one had and a 40 oz of Colt 45 in the other. I was very happy to learn this because I have been mowing my lawn for years and was always stuck wearing a beer helmet.
1. If someone gets shot in your house, regular carpet cleaner (Resolve) does not work to remove the nasty stuff that comes out when you get shot.
2. Normal people do not want to live in a house where the neighbors have spray painted R.I.P James Smith on the side walk.
3. If a tenant calls and begins the conversation with "I have always liked you", or " I hope your having a blessed day" it really means "I do not intend on paying rent this month".
4. When a prospective tenant says "I live with my grand mother, or any other relative" they are actually saying "There is not a landlord in the world that would give me a good reference, so I will just say I live at home".
5. If a tenant offers to paint a rental unit for their security deposit, and they say they are good painters. It really means that they are experts at painting linoleom, wood floors, and windows, but your walls may not turn out right. Do they make a 2000 sqft tarp?
6. When a tenant says that they "Don't do drugs" they really mean "I don't do certain drugs". I ask "Do you do drugs?" they say to me "No I hate drugs", they actually mean, "I hate crack, but weed and vicodin are staples in my life.
7. If your ceiling is torn down in one of your rental properties and the tenant tries to convince you that "It just Fell", what they really mean is "There was a drug bust here, and we were growing weed in the cieling".
8. Somehow the postal system is being very discriminate to only my tenants. This is an actual quote "Eric, I know this is the third month in a row that my social security check has not shown up on time, but the postmaster said "He fixed it".
9. Do not call a heating and cooling guy when a tenant calls and says "My furnace isnt working" because what they really mean is "I have the heat set at 90 and its 95 in here, so my furnace isnt coming on".
10. This is just a suspicion, but I think tenants are in cahoots with the gas companies, because I have walked into units where the landlord is paying the heat and I swear its 100 degrees, and they have all the windows open in the middle of winter. I asked them why the windows were open, and the furnace was on and they replied "The heats Free". They act as if the gas company gives them a dollar for every dollar they waste on gas.
11. A house, is just not a house, until it has what I call the "Ghetto stamp of approval", this is when I install new carpet and within 30 minutes of moving in, the tenant has burned the outline of the iron into the carpet in at least 6 spots. What are they doing ironing anyway? Unless they need to wear a suit and tie to the Department of human services.
12. I have found this very interesting, I live in a nice neighborhood with very nice homes, and many of my neighbors work 60+ hrs a week, and they have yards that look like the ninth whole at a golf course, and they maintain it themselves. Many of my tenants on the other hand, work 2 hours a week depending on the length of unemployment line, so one might deduce that their yard would be drop dead gorgeous, as they have so much time to work in it. This is not the case however, I can see missing a Twinky wrapper when you get out of your car, but how in the heck do you accidentally leave a couch in the front yard.
13. It is possible to mow a lawn, with a push mower in one had and a 40 oz of Colt 45 in the other. I was very happy to learn this because I have been mowing my lawn for years and was always stuck wearing a beer helmet.
Friday, September 07, 2007
BirdDogging Real Estate: The Hunter That Never Was
With Hunting Season Right around the corner I thought this would be appropriate. Somewhat of a metaphoric story for those of you interested in Wholesaling Real Estate, Bird Dogging Real Estate, or Any other type of real estate investing
Joe was positive that he would be shooting a deer this year. After all, Joe had been learning about hunting his whole life. His dad had taught him how to track deer, his uncle taught him how to build the best deer blinds known to man. This year Joe was finally going to do it, he would get his big buck, if it was the last thing he ever did.
He had just purchased the super guru rifle 2000 and from what he had heard this gun was the best. People had told him that this gun would practically shoot itself, man this was one heck of a gun. Oh and the four wheeler that Joe would be riding out to his blind was the so quiet and so fast he didnt have a chance of spooking any deer.
It was opening morning of deer season and Joe was ready, boy oh boy Joe was ready. Joe barely slept a wink the night before just thinking about the big buck that he was gonna get. Joe packed up his stuff, grabbed the super guru rifle 2000 and headed off to his blind (riding the best 4 wheeler known to man).
Joe arrived at his blind, and got everything in place. This was Joes day, the big buck would be his. Joe sat for about an hour when he noticed this giant rack coming up over the hill. This was the Buck to end all Bucks. Joe was quivering at the chance just to see a deer like this.
The buck approached, Joe peered through his scope, "Boy this is the one, this is the day" he quietly said to himself". Joe slowly pulled the trigger.......To be continued
Learn real estate bird Dogging http://www.birddogbiz.com/
Eric Medemar specializes in Wholesaling real estate, flipping real estate, and investment properties including Grand Rapids Foreclosures, Grand Rapids Rental Property, and Grand Rapids HUD homes.
Joe was positive that he would be shooting a deer this year. After all, Joe had been learning about hunting his whole life. His dad had taught him how to track deer, his uncle taught him how to build the best deer blinds known to man. This year Joe was finally going to do it, he would get his big buck, if it was the last thing he ever did.
He had just purchased the super guru rifle 2000 and from what he had heard this gun was the best. People had told him that this gun would practically shoot itself, man this was one heck of a gun. Oh and the four wheeler that Joe would be riding out to his blind was the so quiet and so fast he didnt have a chance of spooking any deer.
It was opening morning of deer season and Joe was ready, boy oh boy Joe was ready. Joe barely slept a wink the night before just thinking about the big buck that he was gonna get. Joe packed up his stuff, grabbed the super guru rifle 2000 and headed off to his blind (riding the best 4 wheeler known to man).
Joe arrived at his blind, and got everything in place. This was Joes day, the big buck would be his. Joe sat for about an hour when he noticed this giant rack coming up over the hill. This was the Buck to end all Bucks. Joe was quivering at the chance just to see a deer like this.
The buck approached, Joe peered through his scope, "Boy this is the one, this is the day" he quietly said to himself". Joe slowly pulled the trigger.......To be continued
Learn real estate bird Dogging http://www.birddogbiz.com/
Joes buddy Nate had never hunted a day in his life, when it came to hunting "Nate didnt know his butt from a whole in the ground". Nate had spent alot of time shooting guns with his dad, but had never hunted. Nate decided since his buddy Joe was going hunting that he would too. So Nate asked his dad, who had killed 100's of deer in his day, if he could take him hunting. Nates dad was more than happy to show him.
It was opening morning, Nates dad had set him a great spot where he had shot dozens of bucks. Out of the corner of his eye Nate saw a huge buck coming up over the ridge. Nate looked at the buck through his scope. "This is the one" he thought to himself as he slowly sqeezed the trigger. The rifle let out a huge boom, and not 10 minutes later Nate was proudly posing for a picture next to his prized buck.
back to Joe.............Joe slowly pulled the trigger, and nothing happened. The buck was gone...............Joe had it all, the super guru 2000 gun, the best 4 wheeler known to man, and the hunting skills of a puma. "How could I have failed" Joe thought to himself, it was then he realized that in all of his time getting ready for the hunt, nobody ever taught him how to pull the trigger.
Thats the funny part about guns, you can have the best gun in the world, but if you don't know how to pull the trigger, you'll never get the deer.
Later Nate and Joe were talking about Nates huge buck and Joe said to him "Nate I thought you have never hunted before, how on earth did you shoot that big boy"
Nate replied "I never have hunted, but my dad has, I asked him where to go, then all I had to do was pull the trigger."
Are you a Joe?
or
Are you a Nate?
If you would like to go from a Joe to a Nate feel free to contact me here. http://www.theforeclosurecollege.com/
Eric Medemar
Eric Medemar specializes in Wholesaling real estate, flipping real estate, and investment properties including Grand Rapids Foreclosures, Grand Rapids Rental Property, and Grand Rapids HUD homes.
Thursday, June 14, 2007
Wholesaling Real Estate: Finding Buyers lesson part 1
I get email virtually every day from people who want to know where to find buyers for their wholesale deals. I see countless posts on here of people asking where to find buyers. So I figured I would put together most of the ideas that I have used or have seen used for finding buyers into a single post.
I am sure there are countless other places and ways to find buyers beyond what I am mentioning, so I will leave it up to other people to fill in the blanks that I have missed.
Keep in mind these are ways that I or my clients have actually used, so I know that they work because I have done it.
1. We Buy Houses Signs I call every single one of these signs that I see, I actually keep a note book full of numbers and info that I find out about these companies when I call.
I usually ask them whether they are still buying, what they are looking for, what percentage up FMV they are typically paying, and what areas of town they want to buy in.
While I have them on the phone I also ask them if they wholesale out any of their homes, if they do then I ask them to call me when they have something good. I tell them that if the deal is right I can close in less than 2 weeks with cash.(I can do this because I have other buyers already in place to buy their deals, sometimes these buyers could be other cash for your house buyers)
Here is a sample of a deal that I put together using this.
1. I called a we buy houses sign
2. Found out where they were looking
3. Put a home under contract for $52k in that area
4. Called them and let them know.
5. I signed a 6 month lease option with them for $64k
6. I closed the home.
7. The lease option started
8. He sold the home
9. We close this week, I make about $12,000 (I also made commission when I bought the house, because im a realtor)
10. He makes around $12k.
11. Were all happy.
Take a real estate wholesaler to lunch visit http://www.investorslunch.com/
2. Call realtors I call realtors and find out if they have any cash buyers that are looking to buy some wholesale deals. It varies on what I offer to pay them but typically I offer 10%-20% of my profit, or a flat 2-3% fee, each time the buyer they have given me buys a home. It creates a win- win, I get a buyer and they get paid whenever their buyer buys a home.
I offer the continuous pay because a realtors worst fear is that they give you a buyer and he buys from you, then when they have a good property to show their buyers they cant buy because they have already purchased from you.
If the realtors dont have cash buyers, I tell them that if they bump into any great deals, they should call me and if the deals good enough we can buy with cash and close in less than 2 weeks.( Often times you can use other realtors buyers to buy another realtors house and you can make money setting the two up)
An example of one of my clients deals that he ran this way.
1. I called my client about a great HUD deal
2. He liked the deal and put the home under contract for $115k (I made a $4800 commission on the home when it closed so I was happy)
3. We had 60 days to close the HUD home so he started calling realtors
4. He found a realtor with a cash buyer that was willing to pay $122,000
5. We assigned the contract (this is a secret)
6. We went to closing and his buyer brought $122,000 cashiers check.
7. My buyer left with a check for $7,000 ( he used none of his own money, and I found him the house so he was happy)
8. I left with my $4800 commission
9. The realtor who brought the buyer took no commission but got a commitment from his buyer that he would list the home with him when he sold it.
3. Newspaper ads I dont personally use this one, I have clients who have had great success with it though. They simply place a small classified ad that reads "Looking for buyers to purchase homes at 50-70% of true value"
I have picked up endless buyers with this ad though "Free List of 45 foreclosed/distressed homes" call or visit www.$$$.com. The reason that I have had so much success with this ad is because anyone thinking of buying real estate would much rather get a free list of 45 then have to call each individual ad. You can have a local realtor put together a list of properties for you and email them to you if you cant find your own. Then take the list that they send you and email it out to people that respond to your ad. Keep in mind you dont really care about the list that you send, you care about getting the name, phone number, and buying qualifications of responding buyers.
A real life example.
1. I placed my free list ad
2. I got about 30 responses for the month
3. Found one buyer who has paid me over $75,000 in commisions over the next 3 years on deals I brought him.
These were realtor commissions, but if you can find a buyer who is taking the kind of action he was you could seriously line your pockets wholesaling to him.
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4. HUD homes this is my own technique that I started using to get buyers just for my realtor purposes. Watch for a great deal on a HUD home or any great deal for that matter, then park outside for a few hours and talk to the people going to check out the home. Most of the areas investors will find there way to the property and you can give them your card and be sure to get there info. Tell them that you run into alot of deals and ask them if they would like you to give them a call when you run into something decent.
A personal example.
1. I went to look at a good HUD home that I was going to buy myself.
2. The neighbor came over and wanted to see the home while I was there.
3. I showed him the home and he ended up buying it from me.
4. I ended up making $2500 in commission on it.
If I were not a realtor, I would have simply talked to him and found out what he was willing to pay, then wrote up a wholesale contract, then put the home under contract with HUD, then played the spread.
This was my most recent deal, but I have picked up endless buyers for other homes while parked outside of HUD homes. I call it hunting for buyers. Its kind of like deer hunting with a bait pile. The home is the bait pile and the buyers are all coming to eat.
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4. Talk to your current buyers buyer typically know other buyers, ask your buyers if they know of anyone else who is buying (let them know you will only call the referal if they are passing on the property). You also might offer to pay your buyer for a referall fee if one of there people end up buying a house from you. This technique also works great if you have a buyer that only wants to buy in a certain area, then you can call their referall if you have a home outside that area.
Personal example.
1. One of my buyers had too many homes and could not buy.
2. I asked him if he knew anyone else who might be interested.
3. He gave me the number to a cousin who was an even bigger investor
4. I ended up selling 3 homes to his cousin this year, and paid him a referal for each one.
5.Local REI meetings If you have a local investor club join it, if you dont then start one. It kind of speaks for itself that this is where many great buyers will be. Just be sure you know a fair bit about what you are doing before talking to very many people about potential deals. The last thing you want to do is burn alot of bridges by showing your new found buyers a bunch of crap.
6. Birddogs for buyers Outside of having bird dogs look for homes for you, you can also have them look for buyers for you. Give them your cards and have them hand them out to people they might meet that are looking to get into real estate investing.
7. Brochure Boxes Just like realtors use brochure boxes you can use them to. If you have a property to move leave a brochure box that talks minimally about the property that it is left at, always be sure to leave out pertitant info like price, sqft, or bed/baths. If you give all the info away then people will never call you about the property. Focus the brochure mainly on other potential deals in the area or say that you are looking for buyers for properties at 50-70%FMV.
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8. Out of towner and landlords Many people sell themselves short when they are dialing for dollars. Typically people call or mail out of town owners and other landlords to see if they want to sell. The funny part is if they dont want to sell then there is a chance that they want to buy, so ask them if they arent selling, then would they like to buy some more, or if your mailing then include buying info on your mailer as well.
I gotta go now, the wifes ready for shopping, I will add to the post with some of my other ways but this should be a start. Hopefully the big dogs can come in and fill in the blanks.
Eric Medemar specializes in Grand Rapids Foreclosures, Grand Rapids HUD homes, and Grand Rapids Real Estate Investing.
Saturday, May 26, 2007
Real Estate Wholesaling: To buy or Not to buy in "Bad Areas"
I am in a very slow market right now but I am still having alot of success Wholesaling Real estate Buying could be very dangerous if you dont know what your doing, but I'm loving it. Where do you buy in a bad market? Easy answer, anywhere you can make money. I like the "bad areas" right now. Why, because most investors dont want to buy there. The nice part about bad locations is that the homes are so cheap, that while your waiting to sell you can cashflow like crazy with tenants.
A few of My "Bad Location Homes" have been like this:
paid 26k, repairs 5k, rented $675, sold for $62k
paid 38k, repairs 5k, rented $1000 (2 unit) sold for $62k
paid 33k, repairs 5k, rented $675, sold for $62k
paid 30k, repairs 12k, rented $675, sold for $62k
paid 30k, repairs 10k, rented $675k, sold it for $62k
Total paid $157, Repairs $37k, Sold $319k Gross Profit $125k
These are all homes that anyone could have bought, but they were in the "bad areas".
Im beginning to think that "good areas" might be "bad areas" for the wallet.
The neat part with bad area homes is you spend 40k to make 20k, not spend 100k to make 15k.
For more info on real estate wholesaling visit www.InvestorsLunch.com
Or use my proven real estate system at www.TheForeclosureCollege.com
Look at the cash on cash returns.
Good area= 15000/100000 =15% cash on cash return
Bad area= 20000/40000= 50% cash on cash return
Good area rents $800 on $100,000 home .08% return on Rent
Bad area $675 on a $40,000 home 1.6% return on rent
But wait, your thinking bad area bad tenants, good area good tenants, right?
Wrong. Bad tenants are bad tenants ANYWHERE, good tenants are good tenants ANYWHERE.
Eric Medemar Specializes in Real Estate Wholesaling, Grand Rapids Foreclosures, Grand Rapids HUD homes, and Grand Rapids Rental Properties
A few of My "Bad Location Homes" have been like this:
paid 26k, repairs 5k, rented $675, sold for $62k
paid 38k, repairs 5k, rented $1000 (2 unit) sold for $62k
paid 33k, repairs 5k, rented $675, sold for $62k
paid 30k, repairs 12k, rented $675, sold for $62k
paid 30k, repairs 10k, rented $675k, sold it for $62k
Total paid $157, Repairs $37k, Sold $319k Gross Profit $125k
These are all homes that anyone could have bought, but they were in the "bad areas".
Im beginning to think that "good areas" might be "bad areas" for the wallet.
The neat part with bad area homes is you spend 40k to make 20k, not spend 100k to make 15k.
For more info on real estate wholesaling visit www.InvestorsLunch.com
Or use my proven real estate system at www.TheForeclosureCollege.com
Look at the cash on cash returns.
Good area= 15000/100000 =15% cash on cash return
Bad area= 20000/40000= 50% cash on cash return
Good area rents $800 on $100,000 home .08% return on Rent
Bad area $675 on a $40,000 home 1.6% return on rent
But wait, your thinking bad area bad tenants, good area good tenants, right?
Wrong. Bad tenants are bad tenants ANYWHERE, good tenants are good tenants ANYWHERE.
Eric Medemar Specializes in Real Estate Wholesaling, Grand Rapids Foreclosures, Grand Rapids HUD homes, and Grand Rapids Rental Properties