Rehabbing Tip$…..Episode #2

Back by popular demand…..here is the second video in our series on how to make HUGE profits Reahbbing Houses! Have any of your watched The Vanilla Ice Project?  Well I can admit I have put myself through the pain and agony a couple times just to see what he has going on….but one thing I have to say is that he does pay attention to some of the important aspects of the rehab process, that also happen to be the topic of this post.

Right now the market is the best I have ever seen for those of us who make a living rehabbing houses! There are plenty of sellers out there who are willing to sell their houses at a deal, and now with the recent changes in the market there are retail buyers lining up to buy a quality renovated house to live in. Buyers have been sitting on there hands for the last few years waiting for the market to bottom…..and it appears they have been waiting long enough and are starting to come back into the market in HUGE numbers. So what does this mean to those of us rehabbing houses? Well it means we need to capitalize on this demand and sell them some damn houses!!

Now onto the topic of this second video in our series on rehabbing houses for BIG profits….this episode is all about the quality of your rehab product. A lot of investors put all of their focus on the investment side of the business, which consists of working on acquisitions, ARV, REI Club meetings, ect…..now don’t get me wrong these are are necessary parts of your success as a real estate investor, but one area most investors decide not to continue to educate themselves on is Construction & Design! I can’t tell you how many rehabs I have toured that other investors have done ( that they are incredibly proud of by the way) and I have just cringed as I walk through the entire house. The reason being is because they relied on what was on “blue light special” down at the home depot for their surfaces in the house. Just because tile, paint or flooring is on sale doesn’t mean you should be buying it for your projects!! Generally there is a reason why nobody else has bought it and the product is on the sale rack.

Next please don’t rely and your general contractor for design selections!! Just because they know construction doesn’t mean they have a clue about quality design…..so take the time to learn everything you can or at least hire the assistance of a good designer to help you pick out your finishes (at first anyway). Once you get a number of quality houses under your belt then you will get a good idea of what looks good and looks not so good…..So check out the video and remember to never stop learning about all aspects of real estate!

Check Out Our New Series All About “Rehabbing Tips”!

Unless you have been living under a rock lately you know the Real Estate market is starting to change for the better…..and its not just isolated to a couple markets around the country…...its happening everywhere!! So what does this mean for those of us making a living flipping houses? Well it means A LOT more people are going to start jumping into the house flipping game, and more specifically the rehabbing side of the business. So its time to step your game up and learn everything you can about creating the best rehabbed product possible, that way your projects stand out from your competition! The truth is most investors do an “OK” job at best when it comes to rehabbing their houses…..and the only way to go from being “OK” to being being Great is to keep learning everything you can about construction & design at all times!

So in an effort to help you step up your game and become the best rehabber in your respective markets, I have decided to start this series dedicated to providing you all of my closely guarded rehabbing secrets! With doing over 100 rehabs just over the past 3 years alone, I have a ton of great tips to help you do better rehabs and sell your houses faster…..so check out the first video in this great series!

We will be releasing 1 video a week over the next couple months, so sign up for our newsletter if you haven’t already so that you can be notified when they are released! Now get our there and put this tip to work in your business…..

What’s The Biggest Opportunity Out There For Rehabbers Right Now?

Over the last year I have seen a lot of changes in the Real Estate market….in fact I would say dynamic would be the only real way to describe it. With all of the changes along with what appears to be a rather dramatic improvement in the real estate market over the last couple months, there is one niche of house flipping that is very obviously the biggest opportunity right now! Now I took a risk on this niche within my own business starting in mid 2010……and surprisingly at that point in the market it paid off big time, so we have been focusing very heavily on this niche ever sine. However now that the market is starting to improve it appears that other investors are starting to catch on to what we have know for pretty much the last year couple years. So what is this great opportunity you ask????

Well its flipping high end houses!! Now just to be straight up and truthful about this niche, it absolutely has much larger barriers of entry (mainly capital and know how) than entry level flips, which prevents a lot of would be competition from getting into the high end market….but those who have joined us in the niche of high end house flipping have been quietly making an absolute killing as of late! Once you get to a point in your real estate investing career where you have built a strong business foundation and are looking to expand your income…..you have choices on how you can go about doing it. One of those choices is whether you want to do more entry level rehabs in order to generate more profits, or do less overall rehabs, but more high end rehabs with MUCH larger profit margins. In 2008 and 2009 within my own business we did a TON of entry level housing rehabs in my market…..and even though I learned a lot and made great money doing it, I quickly came to the realization that doing a gazillion rehabs in order to make more money is not the best way to do this business. The only problem with the alternative, which was moving up market, is that it took big NUTS to do so at that point in the real estate cycle and pretty much nobody in my market was doing it. So what did I do……..well I jumped in head first of course! Once we did our first high end rehab it quickly became obvious to me that not only are the profit margins HUGE in comparison to the low end rehabs, but it was a whole lot easier to sell higher end houses (which seemed very counter intuitive)! We actually sold our first high end house within an hour of putting it on the market…..and it was a full price CASH offer for almost 800K!! Now 800K may or may not be high end for your market, but the point is high end is high end…..so just scale it to you market.

So what is happening out there in the market today? Well it appears a few other investors have now started to catch on to the fact that smart money has been sitting on the sideline for a number of years…..just waiting for house prices to bottom so that they could finally go buy that new and very impressive house for their family. The only problem (and its a great problem for real estate investors) is that there is almost no inventory to choose from. So right now there is a TON of built up demand for these higher end turn key houses, but very little quality product for them to purchase! This means when a quality high end house is put up for sale in most markets right now, they are selling FAST and for a large PREMIUM!

Now to be clear doing high end rehabs are not for everyone, so please don’t go jump into this niche chasing big pay day’s if your business is not ready for it! But if you have built the proper foundation in your business to be able to transition into doing some higher end rehabs, then I would absolutely encourage you to do so! There is a lot of money to be made, but it takes a higher level of experience and know how in order to take advantage of this opportunity. So get out there and start to analyze your market and figure out which neighborhoods high end rehabbers are working in……then start marketing for deals in those areas! Its that simple, so get to it!

Where Are All The Deals??

Lately I have heard a lot of Real Estate Investors all complaining about the same thing……and that same thing is the fact that they all need more deals! I have been talking about the importance of learning how to market directly to motivated sellers and not to just be a foreclosure investor for a while now, and the reason is because all of this low hanging foreclosure inventory will eventually go away (or dramatically decrease at the very least).  Well it seems that the banks have decided to slow the flow of these foreclosed houses onto the market to nothing more than a trickle this year, and it no longer appears the supposed big wave of foreclosure inventory is coming any time soon like a lot of investors had speculated……which means the small number of MLS foreclosure deals that are out there right now have multiple offers and are being pursued by everyone and their mother! In addition the foreclosure auctions all around the country are now over crowded with buyers thanks to the many bidding service providers, who help investors pursue the American dream of buying a foreclosed house at a discount, fixing it up, and re-selling it for a profit! We have started to enter a period of time where more and more investors are getting back into the house flipping game, but the amount of easy low hanging foreclosure deals are decreasing rapidly! You see there are two main types of investors out there…..the foreclosure investor who mainly chases the foreclosures in any given market through Short Sales, REO’s and Auctions. Then there are what I consider “Real” real estate investors, who do buy Foreclosure’s but they also have the ability to source and purchase non-foreclosure properties at wholesale prices. Now don’t get mad at me if I don’t consider you a “Real” real estate investor because you have been flipping foreclosures for the past couple years, but the reality is if you are only a foreclosure investor it appears things are about to get a lot tougher for you and your business.

So what does all this mean?? Well it means that most of the foreclosures listed on MLS are now being bid up by lesser experienced investors who are generally overpaying for properties, mainly because they just don’t know any better and/or they are just overly ambitious to get into the house flipping game. In addition at foreclosure auctions around the country investors are having to bid much higher than they normally would just to get a deal, and this is due to the dramatically increased number of foreclosure investors chasing the American dream. So what does all of this mean to the future of  your real estate investment business?? Well it means if you are just a foreclosure investor who has always relied exclusively on the MLS or auctions to source your deals, you will soon be in for a rude awakening…..and unfortunately it looks to be much sooner than many of us had thought. I personally had figured that we would have at least another year, and maybe two where foreclosure inventories would be at a level where deals would remain plentiful on the MLS and at auctions. Well it turns out that window of time may be closing much faster than previously thought, and this is very evident by the number of foreclosure investors who are currently struggling to find deals in the market place.

So what do you need to do so that your house flipping business doesn’t slow to a trickle? Well the answer is simple…..learn to market your business and do it fast! If you don’t commit to learn everything you can about direct response and online marketing asap your businesses bottom line will likely not increase anytime soon (and it will probably decrease). You see once you have mastered the art of finding motivated sellers you will be able to write your own paycheck at will…..which will put you at the top of the real estate investor food chain. I made the decision to master the art of finding motivated sellers directly about 3 years ago, and now that most foreclosure investors are struggling to find deals, we  have more than we can handle! In addition the wholesale side of our business has become much more profitable than it was before since investors are now lining up to pay us more money for deals, because they know how hard they are to come by right now. So as far as your business is concerned you need to put together a marketing plan that includes direct mail marketing, online marketing & signage. Now there is lot to know about each of these niches, so I would suggest reading everything you can get your hands on for all three of these topics…..then start implementing them into your business ASAP!

By being able to source your own motivated seller deals it will not only provide your business a lot more deals with bigger profit margins, but it will also allow you to grow your REI business into real business with longevity & multiple profit centers. I have grown my business through motivated seller marketing  to include 4 major income streams…..

1. Rehab’s & New Construction

2. Wholesale Deals

3. Lease to Own / Seller Finance Deals

4. Long Term”Subject To” Rentals With Large Amounts of Instant Equity

Most all of us get into the real estate business because we don’t want to fall victim to being stuck in corporate America or working a job that we don’t have passion for. In addition we all want to know what it feels like to take control of our own financial destiny….the only problem is most real estate investors don’t treat real estate like a “real” business. Having a house flipping business is just like running any other small business, except for the fact that you can generally run it with very few actual employee’s (which is great). So start treating your House Flipping business like a real small business, and commit to doing the things that will give it longevity and continued profitability (marketing, marketing, marketing)…..and don’t be satisfied with just being a foreclosure investor.

In an effort to provide help to fellow real estate investors and to grow our business at the same time, we have designed a Mentor Program that will provide you with an exact road map on how to take your business from buying MLS and auction properties to buying direct from Motivated Sellers. There is a lot that goes into developing this side of your business, but we have been through all of the trails and tribulations of it….and in the process we have perfected many online and offline marketing systems that consistently deliver the best leads that a market has to offer. These marketing system took my business to the top of the real estate investor food chain in my market…..and it can absolutely do the same for you! We will begin accepting applications for the program towards the end of this year, so sign up for our newsletter on the MIM home page to be notified.

Now get off the MLS and start marketing for Motivated Sellers!!

Motivated Sellers Secrests, Part 2: Will My Real Estate Business Last?

This is the second article in our extremely popular series dedicated entirely to pulling back the curtain on Motivated Seller marketing! Now that we have covered what exactly a motivated seller is,  I am now going to dive into why you should be including marketing to motivated sellers into your current business model. Making the choice to purchase properties directly from motivated homeowners is one of the best things you can do for your REI business, so grab a seat and get ready to learn some money making info!

The title of this post is one of those that has been on my mind for a while now….and honestly its the reason why I made the choice to take my business in a different direction than the masses of of other Real Estate Investors. Right now in the market there is a ton of foreclosure activity….auctions, short sales, REO’s, pre-foreclosures, ect….and I would say a good 90% of investors are focused almost exclusively on these types of leads since there is such an abundance of them. I started looking around at my market a couple years ago and I noticed that competition was beginning to increase fairly dramatically, and flipping houses was starting to become “En Vogue” again….this was mainly because word was starting to get out that people were once again making money flipping foreclosures. Most of the new competition  chasing these big pay days however were investors all fighting over the same low hanging foreclosure deals…..and the result of all this influx of competition was simply higher prices, smaller profit margins and more offers to get a deal. So this got me thinking:

“What is going to happen when foreclosure inventories actually start to decrease?”

Right now there are plenty of foreclosures to go around, and even a novice investor can look brilliant some days (and trust me I hear and see this a lot!), but eventually foreclosure inventory will decrease. When this happens the best case scenario would be that your deal flow would shrink by a substantial amount since there is going to be less low hanging fruit to go around. In addition you will likely be paying more for each foreclosure deal and in return your profit margins will decrease, which is never a good thing for an investors bottom lines. Both of these inevitable truths really got me thinking, and I decided that I was going to do whatever it took so that a decrease in foreclosure inventory wouldn’t affect my businesses bottom line in a negative way. Now just to be clear, I really don’t see a major decrease in foreclosure inventory coming for another 2+ years, but the the fact remains that it will arrive eventually. So now that I was looking ahead and wanting to ensure that my business will stand the test of time….what was I going to do about it?

The answer that I came up with was simple…..I was going to master the art of Motivated Seller marketing, so that way I could begin purchasing homes directly from homeowners! Believe it or not most investors are totally reliant on Realtors, auctions, wholesalers & RMLS in order to generate deals for there REI business, so by being able to source deals directly from Motivated Homeowners it will put you in a position that a good 90% of other investors are unable to do themselves. By being able to successfully market to Motivated Sellers it will allow you to generate deals that other investors don’t even know exist…..and by having this ability will move you to the top of the business food chain in your market. Once you are able to generate Motivated Seller deals at will to either wholesale or fill up your own fix and flip pipeline, you will have reached a point in your business where you will be in the top 10% of all real estate investors…..and your income will skyrocket!!

Now dont get me wrong, we have and continue to purchase a lot of houses in various stages of foreclosure. But we also buy a lot of houses that have nothing to do with foreclosure, and my plan is to focus our marketing almost entirely to non-foreclosure houses by the end of 2012. What is the reason for this you ask? Well I want to make sure that our marketing systems are so good by the time foreclosure inventories drop, that not having REO’s, auction properties or short sales to purchase will have ZERO impact on my business! In fact I am setting up my business to make even more money once this day comes, because we will likely be the only company in our market that has a constant deal flow of properties that have nothing to do with foreclosure! You see once investors are scrambling to find deals to fix & flip do you think they will happily pay more per deal than they would today?…..well I sure do!!

When times are good for finding deals (and they are very good right now), just about any “investor” with a bankroll behind them can get there hands on property at a price that will make them money. Foreclosures are what I like to refer to as the low hanging fruit of the real estate market, and because of that pretty much anyone that just takes action can get their hands on some. Its when the market starts to shift and foreclosure inventories decrease that great investors are much more obvious to there competition…..and at that same time the amount of money great investors make compared to their competition increases ten fold. Why is this you ask…..well its because the great investors control a large amount of the deal flow for their market! When you put yourself in a position to supply deals not only for your own fix & flips but also for other investors, you are at the top of the real estate food chain for your market…..and that comes with a large pocket book and longevity for your business.

So why is this topic so important? We all strive to be more profitable in the upcoming year than in the last, but in order to make sure our real estate business will experience this we have to be realistic about how we are going to make that happen. By just focusing on buying REO’s and going to the auction block you will have success in this market, but you may also look up in a year or two and realize that you have no idea how else to generate deals for your business. In addition your number of deals and revenue will likely decrease once that day comes, which means you will be much more reluctant to spend any money on marketing…..especialy when you have no real idea what you are doing. You see spending money to build your marketing systems is much easier to do when deals are plentiful and your income is increasing. Spending money on your business in order to improve it is much easier to do when times are good, but the problem is most people don’t feel they need to spend money or time on their business when deals are plentiful…..they generally figure what’s the point since I have all the deals I need.

Now that we have identified the issue of will my real estate business last….how do we make sure that it will? The answer is very simple…..marketing, marketing and some more marketing. My suggestion is to learn everything that you can about direct response  and online marketing now, and don’t fall victim to waiting until you don’t have any deals. If you can master the art of using direct mail coupled with online marketing for your area, you will have more leads and ultimately more deals than you could ever handle, and most of them will have nothing to do with foreclosure. When I finally decided to commit to finding success in marketing for my own deals, it was the best decision I ever made for my business. And at this point in my business I am in the process of perfecting our marking systems and material, so that we can continue to get better at generating the types of deals that will stay consistent no matter what the economy & real estate market is doing.

If you are interested in learning more about how to generate deals from your own marketing keep an eye open for out upcoming Mentor Program & Podcast! In our “Real Dealz” Podcast that will begin airing later this month, we will be going through real motivated seller deals that we are currently doing within our own business. In addition we will be giving away all of our secrets about how find the deals, how we make money with them, and everything in between…..which is a lot of highly entertaining material! Then later this year we will be taking a select group of investors and teaching them everything we know about how to generate motivated seller deals through direct mail & online marketing. The information you will receive is going to be priceless to you and your business…..so trust me when I say it will be a life changer for everyone who is fortunate enough to join the program.

Now get out there and start learning how to market for deals!!!!!

Motivated Seller Secrets, Part 1: What Causes a Seller to Become Motivated?

I have decided to write a multi part blog series on motivated sellers and how you can incorporate them into your Real Estate Investing business in order to explode your profits for 2012! This is probably the most important topic in real estate investing and one that many Gurus claim to be experts in….but the reality I don’t think even most of them know much about present day motivated seller lead generation. Why would I make this claim? Well I make a point to review just about every bit of information that gets put out there by the “so called Gurus” in order to see if they are providing valuable information on this topic, but I can honestly say that most of it is over complicated systems that almost guarantee failure, or its just a whole lot of fluff that doesn’t give you any real world applications to get results…..The reality is generating motivated seller leads is relatively easy when you learn the basics of it, but the difficult part is taking action and actually putting in the time learning how to do it properly. So in this series I am going to expose this part of the business that everyone is so fascinated with, but very few people really know much about.

So what are “motivated sellers” and do they really exist? Or is it just something that Guru’s have made up in order to sell informational products that sounds great in theory, but have no place in reality? Well I can tell you for certain that “motivated sellers” do exists and they are simply people who” need to sell” their real estate as apposed to “want to sell”. However in order to find these sellers you have to know exactly what it is that you are looking for….and the only way to know exactly what you are looking for is to fully understand what real factors create the kind of motivation that will pressure a seller into giving you their house for pennies on the dollar. So now that we understand there are real tangible factors behind seller motivation, what are they and how do they create this large amounts of motivation? Well honestly there are a ton of these factors if you really wanted to dig, but for the purpose of this article we are only going to focus on the BIG 3 Motivating Factors (of which you could easily build an extremely successful REI business around).

1. The first motivating factor and my personal favorite is what I like to call Greed & the “un-earned equity phenomenon”. This mean the seller you are dealing with owns a property with a large amount of equity, and they are not the person who built the equity that’s in the home. So in other words they likely inherited the property and all of the equity that came with it. When this happens its almost like winning the lottery for a lot of people, and that feeling can be very conducive to trading that asset for money quickly. This means people will often times give up money (or equity in this case) in order to speed up the timeline in which they can convert the inherited property into cash.

2. The 2nd motivating factor and also one of my overall favorites is “Deferred maintenance”. This means the property is in need of work before it could be sold to a retail buyer. Very rarely are you going to get a large discount on a home that is totally livable in its current condition. Generally the more deferred maintenance a property has the larger discount you are going to be able get when purchasing it. If you can find a property that needs a large amount of repairs it may not even be financeable, which would be the best possible scenario because they would then need to sell to a cash buyer/investor like yourself. If you can couple with this factor with either #1 or #3 on this list then you have a great opportunity to purchase a property for pennies on the dollar!

3. The 3rd motivating factor and one of the most powerful is when sellers are having Financial Issues and ultimately are in need of cash. If you have ever been in a tough financial situation where you need cash quickly, then you would absolutely understand this feeling of needing to sell ASAP. There are a variety of reasons why a seller would need cash now vs. later, but if you can find a seller who needs cash and has also inherited a property (#1 on this list), then you will find some of the greatest leads there are in real estate investing.

These motivating factors have been around for a long time and they will continue to be around for as long as any of us want to invest in real estate. So this means if you can learn how to find these motivated sellers, you can essentially create a paycheck for yourself on demand…..which is an extremely powerful and freeing feeling. Each of these factors that create motivation in sellers can be uncovered through marketing….and the best way to do this is either via direct mail or through online marketing. So stay tuned for the next couple articles in this series in order to find out what marketing sources we use in order to find sellers that are experiencing these different types of motivation….and how you can do it in your own business to explode your income! My goal in this series of articles is to pull back the curtain on “Motivated Seller” marketing so that once and for all you can see how it really works!

We will be kicking off our “Real Dealz” Podcast at the end of this month, and the hope is that the Podcast will be even more helpful in allowing you to learn how to master the art of motivated seller marketing. We will be going through real deals that we are currently flipping in our real estate business and deals that were generated by marketing for motivated sellers. Also keep a watch out for the opening date of our Mentor Program….as this program has been designed to teach experienced investors how to transition their business from buying through Realtors & at auctions to buying directly from Motivated Sellers! We want to provide you the tools and know how to make your business a long term success in whatever market you call home.

The “Real Dealz” Podcast is Coming Soon!

The time has come that we will be launching our “Real Dealz” podcast and let me tell you there is absolutely nothing like it out there right now! I have been listening to a lot of podcasts lately in order to see what kind of information is out there for real estate investors….and to be honest most of them have actually been very good, but the one thing most of them are missing is focusing a good amount of the podcast on real deals that people are currently working on, so that way listeners can learn how you are actually making money in your own real estate business. This void in the podcast market so to speak, probably has a lot to do with the fact that most real investors are not in the information business & vice-versa…..but in an effort to bridge the gap and put some great real life nuts and bolts education out there for our followers to put to use, we are going to be launching our own  “Real Dealz” podcast within the next few week!

I have always made it a point to let all of our followers know that we are real investors who are doing real deals (which takes up a lot of my time these days), and not just investors who are only doing deals through our students or only doing a deal every now and again to try and remain credible. My Real Estate Biz is the biggest rehabber and wholesaler in our market of Portland Oregon, so we have plenty of deals to talk about……and trust me there is a lot entertainment as well as education that can be had from each deal that we do. We are working in the real estate trenches everyday talking with banks & motivated sellers trying to put deals together….and on the other end we are also dealing with fellow investors, agents & retail buyers trying to get all of our deals sold. So in the “Real Dealz” podcast we are going to pull back the curtain and give you a glimpse of what exactly goes on within our multi-million dollar house flipping business!

Beyond trying to make each episode entertaining for all of you listening, we will also focus most of our time on a specific deal that we have done recently or are currently working on. We will go through each deal from A to Z, going into detail about not only how we got the deal, but also how we negotiated our price and ultimately how we made money with it! The idea behind the podcast is to shed some light on how my business really works and how we continue to created huge success in not only a dismal economy but also a crappy real estate market! The goal is that by listening to how we do things, you will then be able to take that information and apply it to your own real estate business in order to make it more successful!

We will also be gearing up over the next six months to open our MIM Real Estate Academy & Mentor program! So make sure to listen to the podcast as that will give you a better idea of who we are and if you think we would be a good fit to help you grow your  real estate business. The goal of opening this academy and mentor program is to take real estate investors who may be doing a deal here and there….and transform them into a market dominating house flipping machines! If your business is currently (on a scale of 1-10) at a 2-6 then we want to take you to a 9 or 10! I did the same thing to my own business and now after perfecting all of our systems we are ready to provide all of this money making guidance to fellow real estate investors! If you have not already sign up for our newsletter on our homepage and you will be notified as soon as we release our first episode of the “Real Dealz” podcast!

What Makes A Great Real Estate Investing Mentor Program?

It seems that these days there are a lot of folks in the real estate information business who are trying to cash in by recruiting students to join their coaching program. I am really in no position to judge how worthwhile some of those larger programs are, but based on my experiences of building a real estate investing business, I know that personally I would only like to be coached by people who are actually doing deals in today’s market! The value in joining a coaching or mentor program that is run by an active and successful real estate investing business would seem to be the best way to ensure success. Being able to work side by side with active investors who understand how to make big profits in today’s market can put you on your way to achieving financial freedom.

Over the last 5 years I put my blood sweat and tears into building an extremely successful REI business in my market of Portland Oregon (if anyone would like to see our closing HUD’s for 2011 just email me!), and now I am putting that same effort into building a mentor program that will literally change people’s lives! This program is going to be very  involved, and because of that we will only be accepting  5 students at a time……who will then go through an intensive 3 month program where we will help you build your real estate investment business into a market dominating cash machine!

I personally didn’t have a mentor that could help guide me through the challenges of the REI business….and in return I made a lot of mistakes and wasted a lot of time and money building my business. So what I have done is design a mentor program that will provide 5 personally selected students with all of the guidance, support and marketing materials that they would ever need to be successful buying & selling real estate for HUGE profits! This program will provide our students everything they need to become successful and dominate their local market….but in return we want to make sure that only those people who are absolutely committed to achieving success join the MIM Mentor Program. We only want to invest our time and knowledge into those investors who will absolutely use what we teach them, and take full advantage of this great opportunity to work side by side with established & extremely successful investors. Once you learn how to find and flip deals whenever you want your life will change forever….and this is exactly what we are going to teach you (amongst other important things).

This life changing program begins with a very detailed interview that will allow us to find out where you are at now with your real estate investing education, as well as how your investing business is currently set up. Building a highly successful Real Estate Investing business starts with a strong foundation, so our first task will be making sure your foundation has been built properly so that we can then proceed to the more exciting money making aspects of the business! We will then find out what acquisition strategies appeal the most to you and create a marketing plan that takes that into account….then its time to start blanketing your area with online & offline marketing, generating leads, closing deals & making money! Our program will create a custom business and marketing plan for your success, give you all of the proven marketing material to bring in quality leads and provide you with the direct mail lists for your area that we personally use in our own market. We will also provide you with all of our own business resources for you to use, including all of our proven marketing material, Hard Money lender, Website Developer, SEO & PPC miracle worker….and finally we can even partner and fund your wholesale deals for you! This Mentor program provides you with all of the tools you could ever need to start making huge profits flipping houses, but because we want everyone we accept into this program to be successful, we are only taking on 5 students at a time. So to re-iterate what some of the major benefits are….here you go:

*Custom Business Plan & Help Setting up Your Office & Systems

*Custom Direct Mail & Online Marketing Plan Along With Access to all of Our Proven Marketing Material Customized for Your Business

*Direct Mail Lists Provided for Inherited Properties, Absentee Owners & Free and Clear properties & Cash Buyers for your local market

*My Investing Mentor Direct Mail Merge Software (be your own mail house)

*Complete Training On How to negotiate with Motivated Seller Leads

*Complete Training on Buying & Flipping Bank Owned Properties

*Complete Training on How to Use Direct Mail and Online Marketing to Generate Massive Amounts of Leads

*In House Short Sale Negotiating Provided For Your Deals

*Custom Built Motivated Seller Website & Wholesale Buyers Website

*Done for You SEO, PPC & Internet Marketing to Help Generate Online Leads

*Deal Partnering & Access to Our Own Funding for Your Wholesale Deals

*Weekly Coaching Phone Calls to Ensure Accountability and Your Success in the Program

*Constant Email Coaching Support to Help With Your Marketing, Deals & Any Questions

*Access to Our Membership Website & Forum That Is Filled With Training Material & How To Video’s

*And that’s just a small glimpse of what we will provide to our students……

The Bottom line is that we are going to provide you with every possible advantage in order to ensure that by the end of the 3 month program you are running circles around your competition! Our goal is to provide you with the know how to generate all of the deals you could ever want…..and let me tell you from personal experience, once you can generate your own deals at will money will no longer be an issue in your life and your business will explode!

If you have not already signed up for the My Investing Mentor Newsletter on our home page, go do it now so that you will be notified as to when we will begin accepting application for the mentor program. We are real Real Estate Investors who are in the trenches everyday looking for deals and negotiating with banks and motivated sellers! We are not a coaching call center in Utah who will be reading you scripted strategies out of a book that are supposed to work….you will be dealing with real life investors who are making BIG profits each and every month buying & selling real estate today, in this market! Lastly just remember that people constantly spend $50,000-$100,000 or more on educations that doesn’t teach them how to actually earn one cent (its called college)! This education will cost a small fraction of that amount, but it will teach you to earn many times that amount each and every year!

If you would like more information about this program you can also email us at MyInvestingMentor@gmail.com

 

 

 

 

Case Study: How We Make HUGE Profits Flipping Houses Off The RMLS!

In this article I am going to dissect one of our more recent rehab projects that we purchased off the RMLS and managed to renovate and re-sell the for a nice six figure profit! I hear a lot of investors who claim there are no “real” deals to be had on the RMLS since everybody can see them, but to be honest I couldn’t disagree more. My business is now set up to mainly derive our deals from direct mail and online marketing towards motivated sellers, but whenever our marketing is a little slow and we are in need of a deal, the RMLS is always at our fingertips to help fill up our pipeline….but the key is knowing how to farm the RMLS for deals.

I started really ramping up my business back in 2008 by purchasing REO’s when nobody was bidding on them in my market, but since then a lot more competition has come into the market and we have had to diversify our RMLS acquisition strategies. Today we definitely scour all of the REO listings and have relationships in place with REO listing agents, but we also pay special attention to probate deals that ended up being listed on RMLS, instead of having an investor like us purchase them ahead of time directly from the Estate. A lot of times the beneficiaries of any given Estate really want to try and get as much money as possible for the inherited assets, and in order to do that they will end up listing an inherited “fixer” property with a realtor. The property in this case study was a classic example of this….so without further ad-due lets jump into the case study!

I found this particular deal while perusing the RMLS one morning while we were about to run short on rehab projects to keep the crew busy. We had a number of pending contracts in place, but since most of them were early probate deals there was still a lot of court paperwork to be completed before we could legally purchase the properties….so I decided we needed to find a deal fast and the best way to that was to dig around on the RMLS. I spotted this particular property a month or so back since it was in the same area as another rehab project that we had going at the time, and at this point it was really starting to rack up some serious days on market or DOM. Also from the comments in the listing and the fact that the property was vacant I concluded that it had to be a probate deal that ended up being listed. Some of the obvious clues in listings that would show you its a probate property is when the comments say “estate” or “property sold as is” and/or the property is vacant and outdated. Before putting in an offer on the property I pulled the listing history in order to see how long it had in fact been listed and if there had been any sale fails. Both a longer time on market and sales fails generally help allow us to get much better buys on these types of deals….in this case the property had been listed for around 120 days and there had been two sale fails thus far….which made it a great prospect to offer on. The property was originally listed for $299K but over the course of the 120 day listing period they had dropped the price down to $269K. The current list price still wasn’t close to a deal that I would buy, but I knew that the estate was now very motivated from pulling the listing history, and given the right terms I knew they would probably accept a much lower offer.

So I had my agent write up a cash offer of 190K with a 10 day closing….knowing full well that there was no they would accept that price. They had dealt with two lesser experienced rehabber’s that both ended up in a sale fail prior to my offer, so I tried to position my offer as the no BS price in hopes that it would cause them to want to wash there hands of the property and get it sold asap. As I expected they didn’t take my offer of 190K, but they did counter at $210K which was a solid deal for the property. I told them I would accept but only under the condition that there was no oil contamination from the underground oil storage tank in the front yard. I pretty much knew ahead of time that there would be some contamination as pretty much every underground oil tank leaks at some point. Either way the soil samples came back showing contamination and I used those results to negotiate an additional $2K off the sales price….so our final sales price for the property ended up being $208K, which was really a great deal for the property. When we closed on the deal there were a large number of comps within 1/2 mile that showed that a conservative ARV for this property would be around 420K….which would make for a great profit if we could keep our rehab expenses at around 100K. The house was built in 1920 and it needed a total re-work of the floor plan, so this was going to be a full blown gut rehab.

We managed to complete the rehab in just over 90 days that included new everything including a foundation that we originally thought could be salvaged. During some excavating for the new bathroom in the basement one of the foundation walls gave way and the house almost fell over on us…..thankfully we had our lumber package on site for all of the new framing and we were able to built supports for the house that would stabilize it until our foundation contractor could come out and replace the failing foundation wall all the way around the house. With this added bit of drama and expense our renovation budget ended up a little higher than we had originally penciled, but by the time the house was ready to sell “pending” prices in the neighborhood had also gone up compared to what we comped the property for just a few months earlier. So with the upward trend in prices for the neighborhood we decided to list the property for 469K, and within about 3 weeks of being on the market we had two offers on the property. We ended up accepting an offer of 448K even though it was a fair amount below the listed price….we needed to get the property sold and honestly our profit margin even at that price was more than we had originally hoped for, so I decided to accept the offer. We could have held out for a better offer, but there comes a point in rehabbing when you have to be realistic about what you will end up getting for your project and decide how long you are willing to wait in order to get more money.

So in the end we purchased the property for $208,000 and our rehab expenses ended up being approx $120,000. We then sold the property in just over 3 weeks for $448,000 which left a nice six figure net profit.Now we ended up making a great profit on this property, but the finished product turned out amazing and the retail buyers ended up getting a great deal on what was basically a brand new house with an old bungalow style look. Its great to make money in this business, but you also need to take pride in your work and make sure you are offering a great retail product to your buyers. We have built a brand in our market of high quality renovated homes, and that helps us sell all of our rehab projects much faster than most of our competition.

These types of big profit deals are all over the RMLS, the key is just identifying them and then making sure your offer is presented at a time when the seller is motivated enough to give you a deal! Now go out there and start looking on the RMLS for REO and probate deals that have been on the market for a while and have a sale fail or two….as those make the best prospects.

Here are the before and after pictures of the project in this case study:

What Does it Really Take to Succeed in The Real Estate Investing Business?

So I realize this is not one of the most glamorous topics when it comes to real estate investing, as most people just want to know what the latest and greatest secret strategy is for putting a gazillion dollars into their bank account by next week, and without having to do any work….but the reality this topic is by far the more important! Knowing what it really takes in order to be successful in this biz, and being able to keep a positive and motivated frame of mind when riding the real estate investing roller coaster is EXTREMELY important to both you personally and your business. If you have been in the Real Estate business for any length of time then you know that there can without a doubt be some days that make you want to bang your head against the wall either our of frustration or fear…..but on the flip side there are other days where you are on top of the world when you are able to cash some seriously LARGE paychecks (and I mean 5 & 6 figures large). Riding this roller coaster of emotions is not for everyone, which is why so many people ultimately fail or never really get their businesses going. So what does it really take to be successful in this great business? Well I am going to spend the rest of this article trying to uncover the answer to this thought provoking and extremely important question……

We all get into the real estate investing business because we have seen all of the opportunity for true freedom and potential profits that can be made….but in order to get to all of these GREAT things that come from a successful REI business we generally have to get through a period of time where life (and your new business) will test you and take you to your financial and mental breaking points, not just once but over and over again!  So what is the key to breaking through these tests that life throws at us while at the same time building your real estate business into a well oiled profit generating machine?

Well I believe it first starts with keeping a positive outlook each and every day…..and yes I know this it not totally possible, but you should do the best you can. In addition you need to stay foccussed on where you want your business to go…..and not so much about where you are right now.  If you are always looking at things as if the glass is half empty then you will be very reluctant to actually see and take advantage of the opportunities that life & your business will throw at you. For example when I really committed to really growing my own REI business I knew that there would be some financial costs associated with it. I brought on a full time marketing manager and I took a leap of faith that by adding this person into my business ultimately we would grow into the much larger company that we are today. Through the process however I had a lot of negative thoughts about the added responsibility of paying another persons paycheck week in and week out…..but deep down I knew it would allow my business to grow our revenue far beyond the costs of adding that person. I constantly tried to focus on the number of deals I wanted my business to be doing in the future and not so much how many deals we were doing at that exact moment. It took a little while to ramp up our volume and see the affect of adding this person, but now I am so happy I seized the opportunity and hired this person when I did to help me grow my business. The bottom line is that you have to have faith in yourself, but you must also commit to making it work! When I started my business there was only option for me….it was going to work and there was no way I would quit and leave the biz with my tale between my legs. If you keep that state of mind there is really only one possible outcome….and that is success!

Now that we have all the mental stuff out of the way we need to talk about the practical applications of becoming successful. The first real skill that you must learn and ultimately master is your salesmanship! This business has everything to do with interacting with other people, so you better get good at it. I started in the real estate biz selling people mortgages….which was probably the most cut throat dirty business ever (at least during the early 2000′s anyway). I had a tough time at first because I had yet to learn how to be a real life hustler (which is basically a great sales person), but eventually I figured it out and became a top producer for many years. Once you get comfortable talking to sellers on the phone you can pretty much write your own paycheck, so commit to learning how to become the best salesperson you can. And I don’t mean the slimy used car salesman type….I mean a real skilled sales person who can use problems and issues as an opportunity to build stronger bonds with your client (i.e. motivated sellers). It is important to keep in mind that you will probably suck at talking to sellers at first regardless of your previous sales experience, but that’s OK. Just focus on finding a way to connect with them in some way, and build a relationship that will allow you to buy their house from there. People do business with people they like…. and if a seller hangs up the phone and thinks to themselves “I really like that guy”, you can bet they will want to sell you their house over the next investor that only wants to talk with them about price.

The next thing that you need to get really REALLY good at is marketing. To start I would suggest reading everything that you can get your hands on about direct response marketing, so that way you can understand the art of how to get motivated sellers to contact you! Obviously the most important part of marketing is making sure you have identified the right list of people who may need your services, but after you have done that correctly you need to actually get them to pick up the phone and call you. Once you get good at not only understanding direct response marketing, but also writing your own marketing material, you will be blown away at how many more deals will flow into your business. I have spent the last 3 years learning everything I could about marketing (because previously I didn’t know s%i&t), and it has been the best decision I have ever made in regards to my building my business. You would be amazed at how many Real Estate investors  really don’t have a clue about direct response marketing (I was one of them) when it is such an important part of being successful in this business. This is mainly due to the fact that they don’t have to in this current real estate market, because they can just buy properties at auctions or off the RMLS. You can and should focus to some degree on these types of deal for your business, but Do NOT fall into the trap of only focusing your business on these acquisition sources…..because if you do when the market shifts you will be left  in a tough spot! Now don’t get me wrong, these sources can be very profitable right now….but like all things eventually the large profits deals from these niches will end. As real estate markets improves and foreclosures decrease you can be sure that investor prices will go up since competition for these types of deals will be fierce! By becoming a skilled direct response marker for your real estate business, you can pretty much guarantee the amount of money you make and deals you do will increase dramatically…..so get to learning!

Lastly once you start putting all of these skills that we have just discussed to work you will absolutely need a marketing plan and systems to keep you on track. Within my business we have marketing plan that basically tells everyone what we needs to be done every single day in order to keep up with all of our direct mail and online marketing campaigns. In addition we have systems in place to get the marketing out the door and to qualify the leads once they come into the business either via phone or email. If you don’t have these two things your business will be completely unorganized and your deal flow will be totally inconsistant. Putting all of these skills to work in order to create a better business is not easy and it will take some time….but by committing yourself to doing it you will be climbing the ladder of success when it comes to real estate investing. If you are serious about achieving success in this great business you need to put yourself in a position to source deals, and by doing these things you will be on your way to doing exactly that.

If you have questions about any of the things that have been discussed in this article feel free to post a comment or email us at MyInvestingMentor@gmail.com and we will get back to you! We will also be rolling out our MIM Mentoring Program at the beginning of 2012 in order to help other investors master the skills talked about in this article, along with helping them build their own highly successful REI business! Sign up for our newsletter in order to be alerted as to when we will start accepting application for this life and business changing program!

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