NEXT -- A few days from now you will be receiving 'Part IV'
of this special 'mini-course' on buying apartments. Find
out:
Secret #4: How To Find The Best Market To Invest In. Some
markets are more volatile than others. Investing in your
local market may not be the best move. Knowing the right
market to invest in gets to your goals sooner. Don't miss
this secret!
==============================================
And Still Coming Up
==============================================
Secret #5: How To Find Profitable Apartment Deals Without
Spending A Fortune. Knowing how to buy with no money is
one thing, but without a steady flow of motivated apartment
sellers coming across your desk you won't do many deals.
You will learn how to create a steady consistent leadflow
so doing you first deal becomes almost inevitable.
See you shortly for Part IV!
Friday, October 30, 2009
High Return
The fourth part of the formula is high return.
Generally, when people see an investment with a
high return the thing they immediately associate
with that is high risk.
For any investor the thing that is on their mind
most when releasing their money is preservation
of capital. So if you offer a return that is so
high it is out¨of line with the security your
investment offers you will probably eliminate a
lot of your target group, as well as attracting
the interest of securities regulators.
Offer security at a safe loan-to-value to ensure
capital preservation for the investor, and make
the interest rate a fair amount that allows you
to both win. The private lender gets an above market
rate of return and you, the investor, get the
cash for your deal at a reasonable cost.
When you put you your investors' interests first
by using the four part formula, everybody gets
what they want ... a win/win transaction.
The SEC is mainly concerned with general
solicitation to the public. If you do not
approach people cold that you don't know, but
approach people on a referral basis and use
the four part formula you will be working well
within SEC guidlines and can raise all of the
money you will ever need.
Securities Attorney
If you have a larger deal and you need to
raise larger amounts of money, like, over $1M,
you don't want to even think about the SEC, and
you have a bit of a bankroll, retaining a
securities attorney to do the job for you is
an effective option.
Securities Attorneys have their securities license,
are well networked with money sources and usually
have their own list of clients they tap whenever
raising money.
For the most part you'll pay a retainer ranging
from $2K to $25K and a success fee in the vicinity
of 6%. The success fee is simply a commission
paid upon the successful raising of your capital.
Each attorney operates a little differently so
it's worth contacting a few and talking with
them. Don't waste their time, make offers first,
have Letters Of Intent out in the hands of sellers,
then approach a securities attorney with the deal.
You may or may not retain him/her, but you will
learn an awful lot about raising money and funding
big deals.
I highly recommend you do this. Take a look at these
sites to get started.
http://www.oswald-yap.com/PracticeAreas/Private-Offerings.asp
http://harvardcapital.com/
http://www.legalandcompliance.com/privateplacement.html
There's a whole lot you will learn about raising
private money that can't be taught here. You have
to go an find out for yourself. Sorry, that's how
it is. You will learn the real nuggets, the little
hinges that swing the big doors open when you are
out taking action getting your ducks in a row.
Use all the information you have learned here. Once
you have found a profitable deal that supports the
achievement of your goals, calculate the amount of
private money you will need and use the strategy
discussed here for raising private money that is
most appropriate.
Generally, when people see an investment with a
high return the thing they immediately associate
with that is high risk.
For any investor the thing that is on their mind
most when releasing their money is preservation
of capital. So if you offer a return that is so
high it is out¨of line with the security your
investment offers you will probably eliminate a
lot of your target group, as well as attracting
the interest of securities regulators.
Offer security at a safe loan-to-value to ensure
capital preservation for the investor, and make
the interest rate a fair amount that allows you
to both win. The private lender gets an above market
rate of return and you, the investor, get the
cash for your deal at a reasonable cost.
When you put you your investors' interests first
by using the four part formula, everybody gets
what they want ... a win/win transaction.
The SEC is mainly concerned with general
solicitation to the public. If you do not
approach people cold that you don't know, but
approach people on a referral basis and use
the four part formula you will be working well
within SEC guidlines and can raise all of the
money you will ever need.
Securities Attorney
If you have a larger deal and you need to
raise larger amounts of money, like, over $1M,
you don't want to even think about the SEC, and
you have a bit of a bankroll, retaining a
securities attorney to do the job for you is
an effective option.
Securities Attorneys have their securities license,
are well networked with money sources and usually
have their own list of clients they tap whenever
raising money.
For the most part you'll pay a retainer ranging
from $2K to $25K and a success fee in the vicinity
of 6%. The success fee is simply a commission
paid upon the successful raising of your capital.
Each attorney operates a little differently so
it's worth contacting a few and talking with
them. Don't waste their time, make offers first,
have Letters Of Intent out in the hands of sellers,
then approach a securities attorney with the deal.
You may or may not retain him/her, but you will
learn an awful lot about raising money and funding
big deals.
I highly recommend you do this. Take a look at these
sites to get started.
http://www.oswald-yap.com/PracticeAreas/Private-Offerings.asp
http://harvardcapital.com/
http://www.legalandcompliance.com/privateplacement.html
There's a whole lot you will learn about raising
private money that can't be taught here. You have
to go an find out for yourself. Sorry, that's how
it is. You will learn the real nuggets, the little
hinges that swing the big doors open when you are
out taking action getting your ducks in a row.
Use all the information you have learned here. Once
you have found a profitable deal that supports the
achievement of your goals, calculate the amount of
private money you will need and use the strategy
discussed here for raising private money that is
most appropriate.
Bottom line ... MAKE THE CALLS
For more on this read Networking with the Affluent
by Thomas J. Stanley.)
As with your contacts keep calling until you make
it through every attorney listed in the Yellow Pages.
If you get sent to voice mail, speak your opener
onto the voice mail in an upbeat voice.
After calling all the attorneys listed in the Yellow
Pages in your town or city, it is very unlikely you
won't have your deal fully funded. If need be though,
move on to doctors, dentists, landlords, business
owners in the town you are investing in.
You may be getting worn out just reading about all
this phone calling. Just bear in mind, you have a
deal under contract that is going to provide you
with a five figure monthly cashflow, and over the
next ten years add a couple million dollars to your
net worth.
The fire of that vision should be driving you. But
if it's not, just think about how $10,000 coming
in every month, automatically, can change how you
live your life, and that $10,000 monthly is your
reward for making all these phone calls.
Bottom line ... MAKE THE CALLS!
Accredited Investors
There are some rules you have to play by when you
are raising private money, and we'll talk about
the SEC in a minute, but if you have a bit of a
bankroll and you trying to raise a large sum of
money, say, over $1M, you can do a general
solicitation to a class of investor known as
"accredited investors"
These are people with an annual income of more than
$200K, a joint income of more than $300,000 or a
net worth in excess of $1M.
Just as you set up a two step mailing process
to get motivated sellers calling you, you can
do the same to get private lenders calling you.
But only with accredited investors. Accredited
investors are exempt from the SEC rules barring
general soliciation to the public, so you can
market to them in whatever way you think will
be most effective.
Warning! DO NOT send mailings to people about
private lending UNLESS they are Acredited Investors.
An example of an effective mailing to accredited
investors would be:
- buy list of Acredited Investors.
(e.g. http://www.ltbj.com/accreditedinvestorsleads.html)
- send postcard asking them to call a free recorded
message to order a free report.
- before sending the report, call the person up
to verify they are an accredited investor. Answer
any questions they have about the deal.
- send free report.
- follow up after 5 days, ask if they are interested.
Answer any further questions they have.
- If interested, send deal package.
- Follow up four days later, ask if they would like
to invest.
- If yes, give wiring instructions. If no, ask if
they would like you to contact them with other
private lending opportunities.
As with calling your contacts and professionals,
mailing Accredited investors is a numbers game.
Direct mail standards apply. Expect 1-2% response.
A 1,000 postcard mailing may generate 15 responses.
However those 15 are highly qualified calls, and
followup is key. As you followup with each lead,
the longer they stay with you, wanting you to continue
following up with them, the higher the likelihood
they will become a private lender and invest
with you.
Even if they don't, at the end of your process they
will have received a lot of information from you
and if you have treated them well you will have
built trust, good rapport and established yourself
as an expert in the field of providing safe, high
returns. Odds are in your favor they will refer you,
or invest later when the time is right for them.
are very good
The bottom line with Accredited Investors though
is, the more you mail to the more quickly you will
get to those who want to invest.
If you have a few thousand to send on mailing,
Accredited investors are a great source of
private lenders.
The SEC - What NOT To Do!
This is the part about private money that usually
scares people into not wanting to use it, and that¨
is ... tangling with the SEC.
The Securities Excahange Commission was set up in
1993 after the '29 stock market crash, with it's
mandate to "protect the public" from undue risk
inherent in investing in capital markets.
So the primary SEC rule that deals with our efforts
to find private money deal with what the SEC calls
"general solicitation".
This means that if you are offering a security then
you can't go out and solicit the general public
in a public forum (like newspapers, TV, radio) to
buy your investment opportunity, unless you have
a securities license.
The Four Part Formula
So how do you go out and find private lenders,
who may not be accredited investors, without
engaging in "general solicitation"?
There is a four part formula, that if you follow,
will keep you in bounds with the SEC, and any
state securities division (consult your attorney
for additional state rules that my apply).
Predisposed To Real Estate
The first part of the four part formula is to
only approach people who have already demonstrated
they have an interest in real estate investing. You
don't have to educate them about the merits of
investing in real estate, they are already sold
on it. All you have to do is convince them about
you and your deal.
Examples of this would be, real estate networking
events, your local real estate investors association,
landlord associations, anywhere people familiar
with real estate gather.
Control
The second part of the formula is Control. This
means they can get their money out of the deal if
you don't perform.
It also means they never have to just "trust you".
They don't write you a check, they wire the money
to an escrow officer who is conducting an insured
closing. The funds are secured by a lien on the
title to the property. Money for rehab is only
released after the work has been completed.
These procedures give the investor control over
the funds they have invested in the property.
No Risk - Low Risk
The third part of the formula is low/no risk. This
means the investor feels that their investment is
secure. They can see and fully understand that even
if everything goes all wrong, they still get their
money back.
One of the real strengths of investing in real
estate is that you have a hard asset serving as
collateral. The title is insured, the property and
structures are insured, and even the life of the
property owner can be insured.
by Thomas J. Stanley.)
As with your contacts keep calling until you make
it through every attorney listed in the Yellow Pages.
If you get sent to voice mail, speak your opener
onto the voice mail in an upbeat voice.
After calling all the attorneys listed in the Yellow
Pages in your town or city, it is very unlikely you
won't have your deal fully funded. If need be though,
move on to doctors, dentists, landlords, business
owners in the town you are investing in.
You may be getting worn out just reading about all
this phone calling. Just bear in mind, you have a
deal under contract that is going to provide you
with a five figure monthly cashflow, and over the
next ten years add a couple million dollars to your
net worth.
The fire of that vision should be driving you. But
if it's not, just think about how $10,000 coming
in every month, automatically, can change how you
live your life, and that $10,000 monthly is your
reward for making all these phone calls.
Bottom line ... MAKE THE CALLS!
Accredited Investors
There are some rules you have to play by when you
are raising private money, and we'll talk about
the SEC in a minute, but if you have a bit of a
bankroll and you trying to raise a large sum of
money, say, over $1M, you can do a general
solicitation to a class of investor known as
"accredited investors"
These are people with an annual income of more than
$200K, a joint income of more than $300,000 or a
net worth in excess of $1M.
Just as you set up a two step mailing process
to get motivated sellers calling you, you can
do the same to get private lenders calling you.
But only with accredited investors. Accredited
investors are exempt from the SEC rules barring
general soliciation to the public, so you can
market to them in whatever way you think will
be most effective.
Warning! DO NOT send mailings to people about
private lending UNLESS they are Acredited Investors.
An example of an effective mailing to accredited
investors would be:
- buy list of Acredited Investors.
(e.g. http://www.ltbj.com/accreditedinvestorsleads.html)
- send postcard asking them to call a free recorded
message to order a free report.
- before sending the report, call the person up
to verify they are an accredited investor. Answer
any questions they have about the deal.
- send free report.
- follow up after 5 days, ask if they are interested.
Answer any further questions they have.
- If interested, send deal package.
- Follow up four days later, ask if they would like
to invest.
- If yes, give wiring instructions. If no, ask if
they would like you to contact them with other
private lending opportunities.
As with calling your contacts and professionals,
mailing Accredited investors is a numbers game.
Direct mail standards apply. Expect 1-2% response.
A 1,000 postcard mailing may generate 15 responses.
However those 15 are highly qualified calls, and
followup is key. As you followup with each lead,
the longer they stay with you, wanting you to continue
following up with them, the higher the likelihood
they will become a private lender and invest
with you.
Even if they don't, at the end of your process they
will have received a lot of information from you
and if you have treated them well you will have
built trust, good rapport and established yourself
as an expert in the field of providing safe, high
returns. Odds are in your favor they will refer you,
or invest later when the time is right for them.
are very good
The bottom line with Accredited Investors though
is, the more you mail to the more quickly you will
get to those who want to invest.
If you have a few thousand to send on mailing,
Accredited investors are a great source of
private lenders.
The SEC - What NOT To Do!
This is the part about private money that usually
scares people into not wanting to use it, and that¨
is ... tangling with the SEC.
The Securities Excahange Commission was set up in
1993 after the '29 stock market crash, with it's
mandate to "protect the public" from undue risk
inherent in investing in capital markets.
So the primary SEC rule that deals with our efforts
to find private money deal with what the SEC calls
"general solicitation".
This means that if you are offering a security then
you can't go out and solicit the general public
in a public forum (like newspapers, TV, radio) to
buy your investment opportunity, unless you have
a securities license.
The Four Part Formula
So how do you go out and find private lenders,
who may not be accredited investors, without
engaging in "general solicitation"?
There is a four part formula, that if you follow,
will keep you in bounds with the SEC, and any
state securities division (consult your attorney
for additional state rules that my apply).
Predisposed To Real Estate
The first part of the four part formula is to
only approach people who have already demonstrated
they have an interest in real estate investing. You
don't have to educate them about the merits of
investing in real estate, they are already sold
on it. All you have to do is convince them about
you and your deal.
Examples of this would be, real estate networking
events, your local real estate investors association,
landlord associations, anywhere people familiar
with real estate gather.
Control
The second part of the formula is Control. This
means they can get their money out of the deal if
you don't perform.
It also means they never have to just "trust you".
They don't write you a check, they wire the money
to an escrow officer who is conducting an insured
closing. The funds are secured by a lien on the
title to the property. Money for rehab is only
released after the work has been completed.
These procedures give the investor control over
the funds they have invested in the property.
No Risk - Low Risk
The third part of the formula is low/no risk. This
means the investor feels that their investment is
secure. They can see and fully understand that even
if everything goes all wrong, they still get their
money back.
One of the real strengths of investing in real
estate is that you have a hard asset serving as
collateral. The title is insured, the property and
structures are insured, and even the life of the
property owner can be insured.
Doing The Deal
Peer group pressure is very powerful. Just press
on, keep calling, making contacts, you will soon
find an investor, and word will get around, and
you will have more investors.
**Quick Note: Not everyone has the guts to be a
real estate investor. When enough people see you
are determined to raise the money, and that their
skepticism didn't make a dent in your drive to make
your deal happen, they often realize you have something
they don't possess, and will come around and support
you, to be part of your 'grand adventure'.
Very often getting the first investor is key to
getting the second. The principle of Social Proof
states that, we view behaviour as correct in a
given situation to the degree that we see others
also performing it. So if you can say that you've
raised, $25,000 for earnest money, that's important.
A place where you "can" raise up to $25,000 for any
venture is www.prosper.com. Go there now and take
a look. You don't have an excuse for not getting
started any more. www.prosper.com
Professionals, Business People
After you have exhausted all of your immediate
contacts, if you still don't have the funds you
need the next group to contact are professionals
and other business people who are cash rich and
time poor.
The benefits to them investing with you are obvious,
and the whole problem of what to do with all their
money is probably weighing on their mind. They just
don't have the time to do anything about it.
It's as simple as grabbing your local yellow pages
and beginning calling. Start with attorneys, they
are the classic 80 hour week types and have usually
had some kind of exposure to real estate.
Take the opener you used before, modify it a little
to this, "Hello Hudson. Thank you for taking my call.
I'm a real estate investor, and I'm in the process
of raising money to buy an apartment building.
I'm looking for people to be private lenders in the
project. Would you be interested or do you know
anyone who would be interested in earning 10% return
on their money secured by real estate?"
If you happen to be on the line with a ham and eggs
lawyer you'll probably get the brushoff, or possibly
a dose of their negative view of the world. However
a more successful attorney will prick up their ears
and ask you for more information.
Good attorneys are highly networked and understand
how the world works. When they see an opportunity
to create value for clients and people they know,
they take personal responsibility for the making
the introduction.
on, keep calling, making contacts, you will soon
find an investor, and word will get around, and
you will have more investors.
**Quick Note: Not everyone has the guts to be a
real estate investor. When enough people see you
are determined to raise the money, and that their
skepticism didn't make a dent in your drive to make
your deal happen, they often realize you have something
they don't possess, and will come around and support
you, to be part of your 'grand adventure'.
Very often getting the first investor is key to
getting the second. The principle of Social Proof
states that, we view behaviour as correct in a
given situation to the degree that we see others
also performing it. So if you can say that you've
raised, $25,000 for earnest money, that's important.
A place where you "can" raise up to $25,000 for any
venture is www.prosper.com. Go there now and take
a look. You don't have an excuse for not getting
started any more. www.prosper.com
Professionals, Business People
After you have exhausted all of your immediate
contacts, if you still don't have the funds you
need the next group to contact are professionals
and other business people who are cash rich and
time poor.
The benefits to them investing with you are obvious,
and the whole problem of what to do with all their
money is probably weighing on their mind. They just
don't have the time to do anything about it.
It's as simple as grabbing your local yellow pages
and beginning calling. Start with attorneys, they
are the classic 80 hour week types and have usually
had some kind of exposure to real estate.
Take the opener you used before, modify it a little
to this, "Hello Hudson. Thank you for taking my call.
I'm a real estate investor, and I'm in the process
of raising money to buy an apartment building.
I'm looking for people to be private lenders in the
project. Would you be interested or do you know
anyone who would be interested in earning 10% return
on their money secured by real estate?"
If you happen to be on the line with a ham and eggs
lawyer you'll probably get the brushoff, or possibly
a dose of their negative view of the world. However
a more successful attorney will prick up their ears
and ask you for more information.
Good attorneys are highly networked and understand
how the world works. When they see an opportunity
to create value for clients and people they know,
they take personal responsibility for the making
the introduction.
Pieces are installment payments, monthly
Pieces
Pieces are installment payments, monthly or otherwise,
with interest or no interest, principal only or P&I, or
with interest paid in a lump sum after 10 years. Whatever
is agreed upon by both parties.
Banks have conditioned us to believe the 30 year
fully amortized note is the only way an installment
payment can be structured. This is far from the truth,
and once you can pry a sellers' thinking away from
this sterotype structuring a deal that is a win for
both of you becomes much easier.
Lump Sum
This is what everyone is used to; all the underlying
loans are paid off and the seller receives their
equity in a lump some of cash. You hear it referred
to as Cash-to-new-loan by realtors and loan agents.
When the buyer has the ability to pay cash for the
property, the universe of deals available to him/her
opens up dramatically.
Different Form
This is where the equity is paid to the seller with
almost anything that the seller perceives is as
valuable as the equity in the property. So instead of
taking the equity as cash, the seller may agree to
take some Microsoft stock, or a condo in Miami, or a
mobile home in Georgia, a car. Anything can used as
payment for the sellers equity as long as the seller
is happy to take it.
Combination
The fourth and final way a seller can receive their
equity is through a combination of the other three
- pieces, lump sum, and different form.
eg. The owner of a 50 unit building wants to retire
and go on a road trip with his wife. Instead of
waiting he agrees to you assuming the $1.2M loan,
taking back a $600,000 note at 6% interest, $100,000
cash, and motor home valued at $100,000, for a total
price of $2M.
As you might be already thinking, the possibilities
for different combinations are only limited by your
imagination ... and your negotiating skills.
Different Ways To Buy
When you are starting out it's very likely you either
have all your money tied up in other investments,
like stocks or bonds, or you just don't have any
money, saved or otherwise, so buying an apartment
building using your own money isn't an option.
This is how it is with most people sarting out, so
you have to look for ways to purchase the property
with no money out of your pocket.
The list of different ways to buy with none of your
own money would easily top 100, but let's not stray
too far off the beaten track and look at a few of the
most common.
Partner
This is a simple arrangement. Once you find a
profitable deal you team up with a money partner
to raise the cash needed to close. The partners job
is to provide money for the earnest money, the down
payment, closing costs, and repairs if needed. Your
job is to manage the property, execute your value
plays to capture the upside value of the property
and the sell the property at the market peak to
realize you and your partner's profit.
This is a great way to get started, no cash or
credit need by you, just your knowledge and your
time and effort. The downside is you give away half
the deal to your partner.
Seller Financing
Also known as Owner Financing, this is when the
seller agrees to finance all or part of the purchase
price. Because there is no bank involved, no credit
or large cash down payments are required. You and
the seller are free to set up whatever financing
makes the deal work for both of you.
If the seller is flexible there are many ways you
can go:
- Seller refinances to pull cash out of the property,
carries back a 2nd for the balance of the purchase
price. You take over the new loan Subject-To.
- Seller's property is free and clear. Seller carries
back a 70% LTV 1st at 7%, 30 years, carries back a
2nd for the balance, principal only payments.
- You take over the existing loan Subject-To, Seller
carries a 2nd, no payments for two years, then
interest only for 5 years, ballon payment at the
end of 7 years.
- And so on. As long as you and seller are in agreeemt
about owner financing you simply structure the terms
that allow both of you to get what you need out of
the deal.
Raise Money From A Private Lender
When you get a profitable deal under contract and
you need cash for earnest money, down payment, closing
costs, rehab, you go out and find a private lender who
will loan you the money so you can cover all of these
and close. You pay the private lender an attractive
rate of return (8-12%) they are unlikely to get anywhere
else with the same security.
A lot of investors have problems understanding private
lending. "I mean, who on earth would hand over their
precious savings to someone so they can go and buy a
piece of real estate?"
Well ... let's list a few:
- thousands and thousands of people who have their
savings sitting in a bank being eroded by inflation
while collecting 3% interest.
- veteran landlords who are sick of the game but still
want the passive income.
- attorneys who work 80 hour weeks, make a lot of money,
want to be in real estate but don't have the time to
be personally involved.
- accredited investors; high net worth individuals
who want their money to grow at high rates in a
secure environment.
- a fellow investor who may very well be in your local
Real Estate Investment Club (REIA).
- this list too goes on and on.
What makes a person a candidate to be a private
lender is they have excess funds sitting in an
account somewhere that they wish were getting a
higher return. You know you have a private lender
when, if you contact them and ask if they would
like to get 10% return on their money secured by
real estate, their eyes light up.
There are many, many other ways to buy property
with none of your own money, and they can be used
with success to enable you to purchase a profitable
apartment building with none of your own money.
The Downside To "Non-Cash" Financing
The downside to most of these techniques though, is
they are specific solutions to unusual situations
that are not too common.
When all you have are creative, "non-cash" financing
methods to acquire property, you limit yourself to
just the sellers who can be helped with those
techniques and forgo all of the other sellers who
are highly motivated (like banks) and quite willing
to come down on price, but require you to pay cash.
When you can pay cash, the universe of deals available
to you opens up considerably. Adding "all cash" to
your arsenal allows you to work short sales and REO's
aggressively. In essence, being a cash buyer gives
you the ability to fill you deal pipeline as full
as you want it.
When you consider the realm of commercial lending
it is sometimes hard to really comprehend the scale
involved. Small loans are a few million dollars. The
larger commercial loans are nine figures. The
insitutions making the loans have balance sheets in
the tens of billions of dollars.
They operate under different guidelines to residential
lenders because there are no unsophistcated borrowers
to protect. If you are ambitious enough to be an
investor, it's buyer beware. As a result commercial
lending is very entrepreneurial and creative.
But when the economy turns south and the holders
of these huge notes have to take the property back
all of a sudden those former assets are now non-
performing assets and liquidity is very important
to the lender.
Availability Of Cash
For a lender in distress, loaded with REO, what
matters to them is that the cash is available. An
all-cash offer at a low price will be accepted by
the lender over a contingent offer every time.
Owner financing is not even considered.
In some cases, the very existence of the lender is
at stake so the primary concern they have is that
you are going to come through and close with cash.
Price less a concern than the certainty that you
will close so they can restore some liquidity to
their company.
It's investors with the ability to buy with cash
that can take advantage of these opportunities.
Of the ways to buy apartments using none of your
own money that we talked about above, only two
involved paying all-cash; getting a partner, and
borrowing from a private lender.
Control
Taking on a partner can be hugely beneficial for a
beginning investor. Firstly, because the partner
brings the financial resources to the table the
beginning investor doesn't have yet. Secondly, often
a partner can mentor the investor with business
advice and real estate specific advice that may
otherwise take you years to come across.
However, once the investor has built up his/her
own track record and have accumulated financial
resources of their own, there really isn't any
good reason to continue doing deals with a partner
for only 50% of the profits.
What begins to make more sense is borrowing money
from private lenders and taking control of the whole
process. Private lenders allow you to cover all of
the cash requirements of the deal and you get to
keep the lion's share of the profits for yourself.
And when you are talking about large apartment
buildings, this is a considerable amount of money.
Private Money Sources
So having decided that being a cash buyer opens
you up to the most opportunity and that utilizing
private money is the best way to do that, where
do you find it?
A private lender is anyone who would be thrilled
to get around 10% return on their money secured
by real estate.
That covers a lot of people, and it covers even
more when you take into account those that don't
know they are interested yet because they don't
know about it.
The frst place to start is your immediate contacts.
I know, you're afraid of sounding like you are
coming on with some MLM deal. That's a legitimate
concern given how off-putting that is. The best
approach is to narrow the list of people you contact
to those you know have money, then be up-front and
direct in your conversation with them.
You could open with, "Hi Jim how's things. I'm in
the process of buying an apartment building and I
need to raise the money to cover the down payment
and fixup costs. I'm looking for people to be private
lenders in the project. Would you be interested or
do you know anyone who would be interested in earning
10% return on their money secured by real estate?"
You'll either get a response of "tell me more", or
the person will wave you off. If you do get the
brushoff don't be discouraged, it's just one person,
and there are many more fish in the sea. But also,
you have planted a seed. If you keep contacting
people you know you will eventually find someone
who wants to invest, and word will eventually find
it's back to the person who gave you the brushoff.
It's truly amazing how the phenomenon of social
proof can change the attitudes and behavior of
people. Someone who formerly viewed investing with
you as too risky will suddenly be a fervent advocate
once they are faced with missing out on an opportunity
his friends are all making money on.
Pieces are installment payments, monthly or otherwise,
with interest or no interest, principal only or P&I, or
with interest paid in a lump sum after 10 years. Whatever
is agreed upon by both parties.
Banks have conditioned us to believe the 30 year
fully amortized note is the only way an installment
payment can be structured. This is far from the truth,
and once you can pry a sellers' thinking away from
this sterotype structuring a deal that is a win for
both of you becomes much easier.
Lump Sum
This is what everyone is used to; all the underlying
loans are paid off and the seller receives their
equity in a lump some of cash. You hear it referred
to as Cash-to-new-loan by realtors and loan agents.
When the buyer has the ability to pay cash for the
property, the universe of deals available to him/her
opens up dramatically.
Different Form
This is where the equity is paid to the seller with
almost anything that the seller perceives is as
valuable as the equity in the property. So instead of
taking the equity as cash, the seller may agree to
take some Microsoft stock, or a condo in Miami, or a
mobile home in Georgia, a car. Anything can used as
payment for the sellers equity as long as the seller
is happy to take it.
Combination
The fourth and final way a seller can receive their
equity is through a combination of the other three
- pieces, lump sum, and different form.
eg. The owner of a 50 unit building wants to retire
and go on a road trip with his wife. Instead of
waiting he agrees to you assuming the $1.2M loan,
taking back a $600,000 note at 6% interest, $100,000
cash, and motor home valued at $100,000, for a total
price of $2M.
As you might be already thinking, the possibilities
for different combinations are only limited by your
imagination ... and your negotiating skills.
Different Ways To Buy
When you are starting out it's very likely you either
have all your money tied up in other investments,
like stocks or bonds, or you just don't have any
money, saved or otherwise, so buying an apartment
building using your own money isn't an option.
This is how it is with most people sarting out, so
you have to look for ways to purchase the property
with no money out of your pocket.
The list of different ways to buy with none of your
own money would easily top 100, but let's not stray
too far off the beaten track and look at a few of the
most common.
Partner
This is a simple arrangement. Once you find a
profitable deal you team up with a money partner
to raise the cash needed to close. The partners job
is to provide money for the earnest money, the down
payment, closing costs, and repairs if needed. Your
job is to manage the property, execute your value
plays to capture the upside value of the property
and the sell the property at the market peak to
realize you and your partner's profit.
This is a great way to get started, no cash or
credit need by you, just your knowledge and your
time and effort. The downside is you give away half
the deal to your partner.
Seller Financing
Also known as Owner Financing, this is when the
seller agrees to finance all or part of the purchase
price. Because there is no bank involved, no credit
or large cash down payments are required. You and
the seller are free to set up whatever financing
makes the deal work for both of you.
If the seller is flexible there are many ways you
can go:
- Seller refinances to pull cash out of the property,
carries back a 2nd for the balance of the purchase
price. You take over the new loan Subject-To.
- Seller's property is free and clear. Seller carries
back a 70% LTV 1st at 7%, 30 years, carries back a
2nd for the balance, principal only payments.
- You take over the existing loan Subject-To, Seller
carries a 2nd, no payments for two years, then
interest only for 5 years, ballon payment at the
end of 7 years.
- And so on. As long as you and seller are in agreeemt
about owner financing you simply structure the terms
that allow both of you to get what you need out of
the deal.
Raise Money From A Private Lender
When you get a profitable deal under contract and
you need cash for earnest money, down payment, closing
costs, rehab, you go out and find a private lender who
will loan you the money so you can cover all of these
and close. You pay the private lender an attractive
rate of return (8-12%) they are unlikely to get anywhere
else with the same security.
A lot of investors have problems understanding private
lending. "I mean, who on earth would hand over their
precious savings to someone so they can go and buy a
piece of real estate?"
Well ... let's list a few:
- thousands and thousands of people who have their
savings sitting in a bank being eroded by inflation
while collecting 3% interest.
- veteran landlords who are sick of the game but still
want the passive income.
- attorneys who work 80 hour weeks, make a lot of money,
want to be in real estate but don't have the time to
be personally involved.
- accredited investors; high net worth individuals
who want their money to grow at high rates in a
secure environment.
- a fellow investor who may very well be in your local
Real Estate Investment Club (REIA).
- this list too goes on and on.
What makes a person a candidate to be a private
lender is they have excess funds sitting in an
account somewhere that they wish were getting a
higher return. You know you have a private lender
when, if you contact them and ask if they would
like to get 10% return on their money secured by
real estate, their eyes light up.
There are many, many other ways to buy property
with none of your own money, and they can be used
with success to enable you to purchase a profitable
apartment building with none of your own money.
The Downside To "Non-Cash" Financing
The downside to most of these techniques though, is
they are specific solutions to unusual situations
that are not too common.
When all you have are creative, "non-cash" financing
methods to acquire property, you limit yourself to
just the sellers who can be helped with those
techniques and forgo all of the other sellers who
are highly motivated (like banks) and quite willing
to come down on price, but require you to pay cash.
When you can pay cash, the universe of deals available
to you opens up considerably. Adding "all cash" to
your arsenal allows you to work short sales and REO's
aggressively. In essence, being a cash buyer gives
you the ability to fill you deal pipeline as full
as you want it.
When you consider the realm of commercial lending
it is sometimes hard to really comprehend the scale
involved. Small loans are a few million dollars. The
larger commercial loans are nine figures. The
insitutions making the loans have balance sheets in
the tens of billions of dollars.
They operate under different guidelines to residential
lenders because there are no unsophistcated borrowers
to protect. If you are ambitious enough to be an
investor, it's buyer beware. As a result commercial
lending is very entrepreneurial and creative.
But when the economy turns south and the holders
of these huge notes have to take the property back
all of a sudden those former assets are now non-
performing assets and liquidity is very important
to the lender.
Availability Of Cash
For a lender in distress, loaded with REO, what
matters to them is that the cash is available. An
all-cash offer at a low price will be accepted by
the lender over a contingent offer every time.
Owner financing is not even considered.
In some cases, the very existence of the lender is
at stake so the primary concern they have is that
you are going to come through and close with cash.
Price less a concern than the certainty that you
will close so they can restore some liquidity to
their company.
It's investors with the ability to buy with cash
that can take advantage of these opportunities.
Of the ways to buy apartments using none of your
own money that we talked about above, only two
involved paying all-cash; getting a partner, and
borrowing from a private lender.
Control
Taking on a partner can be hugely beneficial for a
beginning investor. Firstly, because the partner
brings the financial resources to the table the
beginning investor doesn't have yet. Secondly, often
a partner can mentor the investor with business
advice and real estate specific advice that may
otherwise take you years to come across.
However, once the investor has built up his/her
own track record and have accumulated financial
resources of their own, there really isn't any
good reason to continue doing deals with a partner
for only 50% of the profits.
What begins to make more sense is borrowing money
from private lenders and taking control of the whole
process. Private lenders allow you to cover all of
the cash requirements of the deal and you get to
keep the lion's share of the profits for yourself.
And when you are talking about large apartment
buildings, this is a considerable amount of money.
Private Money Sources
So having decided that being a cash buyer opens
you up to the most opportunity and that utilizing
private money is the best way to do that, where
do you find it?
A private lender is anyone who would be thrilled
to get around 10% return on their money secured
by real estate.
That covers a lot of people, and it covers even
more when you take into account those that don't
know they are interested yet because they don't
know about it.
The frst place to start is your immediate contacts.
I know, you're afraid of sounding like you are
coming on with some MLM deal. That's a legitimate
concern given how off-putting that is. The best
approach is to narrow the list of people you contact
to those you know have money, then be up-front and
direct in your conversation with them.
You could open with, "Hi Jim how's things. I'm in
the process of buying an apartment building and I
need to raise the money to cover the down payment
and fixup costs. I'm looking for people to be private
lenders in the project. Would you be interested or
do you know anyone who would be interested in earning
10% return on their money secured by real estate?"
You'll either get a response of "tell me more", or
the person will wave you off. If you do get the
brushoff don't be discouraged, it's just one person,
and there are many more fish in the sea. But also,
you have planted a seed. If you keep contacting
people you know you will eventually find someone
who wants to invest, and word will eventually find
it's back to the person who gave you the brushoff.
It's truly amazing how the phenomenon of social
proof can change the attitudes and behavior of
people. Someone who formerly viewed investing with
you as too risky will suddenly be a fervent advocate
once they are faced with missing out on an opportunity
his friends are all making money on.
Equitable Interest
It's time for Part III of the 'mini-course' on apartment
investing... the "SMART Guide to Apartment Investing"
- how to generate massive profits buying apartment
complexes with none of your own money.
Last installment we talked about analyzing an apartment
building for profit. I hope you have been thinking about
all the analysis tools we discussed so you can see the
profit in a deal when it is presented to you.
And now let's keep going...
===============================================
Secret # 3:
How To Fund Your Apartment Purchases Using None
Of Your Own Money.
===============================================
Buying The Property.
Now that you know how to analyze apartment deals it
won't be long before you have a property that fits
your goals and has all the potential value plays
ready for you to capitalize on.
Now it's time to buy the property. How do you go
about it?
Terry Vaughan's 60-Second Real Estate Course
Most of us know about creative financing but let's
reduce financing to it's essence. Once again we will
draw from the wisdom of Terry Vaughan, this time using
his famous 60-Second Real Estate Course.
In any real estate transaction, whether it's a single
family home or a 200 unit apartment building, all
that ever happens is the buyer and seller find a way
to give the seller his/her equitable interest, so they
can both win and go away happy.
(Note: Equitable interest = Fair market value minus
total loans/debt on the property.)
There are only four ways to do this. I know, you hear
all the gurus railing on about all kinds of creative
techniques, but strip away the fancy packaging, and
there are still only four.
They are:
1) Pieces
2) Lump Sum
3) Different Form
4) Combination - Pieces, Lump Sum and Differennt Form
investing... the "SMART Guide to Apartment Investing"
- how to generate massive profits buying apartment
complexes with none of your own money.
Last installment we talked about analyzing an apartment
building for profit. I hope you have been thinking about
all the analysis tools we discussed so you can see the
profit in a deal when it is presented to you.
And now let's keep going...
===============================================
Secret # 3:
How To Fund Your Apartment Purchases Using None
Of Your Own Money.
===============================================
Buying The Property.
Now that you know how to analyze apartment deals it
won't be long before you have a property that fits
your goals and has all the potential value plays
ready for you to capitalize on.
Now it's time to buy the property. How do you go
about it?
Terry Vaughan's 60-Second Real Estate Course
Most of us know about creative financing but let's
reduce financing to it's essence. Once again we will
draw from the wisdom of Terry Vaughan, this time using
his famous 60-Second Real Estate Course.
In any real estate transaction, whether it's a single
family home or a 200 unit apartment building, all
that ever happens is the buyer and seller find a way
to give the seller his/her equitable interest, so they
can both win and go away happy.
(Note: Equitable interest = Fair market value minus
total loans/debt on the property.)
There are only four ways to do this. I know, you hear
all the gurus railing on about all kinds of creative
techniques, but strip away the fancy packaging, and
there are still only four.
They are:
1) Pieces
2) Lump Sum
3) Different Form
4) Combination - Pieces, Lump Sum and Differennt Form
How to find huge money.
- How to present your deal.
- How to structure your deal.
- How much to pay.
- How long to pay.
- How to make money quickly.
- How to do it all for FREE.
It applies to:
- Houses
- Apartments
- Notes
- Businesses
- Your Start-Up
- Any commercial venture
It's a small group private training with me
and me only.
You can join me as I reveal these secrets of
the mega-rich
- How to structure your deal.
- How much to pay.
- How long to pay.
- How to make money quickly.
- How to do it all for FREE.
It applies to:
- Houses
- Apartments
- Notes
- Businesses
- Your Start-Up
- Any commercial venture
It's a small group private training with me
and me only.
You can join me as I reveal these secrets of
the mega-rich
How to Rasie Money For Deals
Cash is KING in this part of the economic
cycle so I'm hosting a FREE private money
workshop in Houston on Saturday, November 7
and you are invited.
Come work with me live & in person.
The cost to you... FREE.
Why?
Because the most common question I get is
this... How do I raise money for my deals?
And I get it from people raising money for
apartments, houses, notes, strip malls,
businesses, start-ups, commercial, etc.
It's the #1 Question... undisputed. Whether
you are raising $10,000 or $10,000,000, the
same principles for raising private money apply.
"The BEST, most innovative approach EVER to
obtaining Private money. I can't wait to get
going !"
cycle so I'm hosting a FREE private money
workshop in Houston on Saturday, November 7
and you are invited.
Come work with me live & in person.
The cost to you... FREE.
Why?
Because the most common question I get is
this... How do I raise money for my deals?
And I get it from people raising money for
apartments, houses, notes, strip malls,
businesses, start-ups, commercial, etc.
It's the #1 Question... undisputed. Whether
you are raising $10,000 or $10,000,000, the
same principles for raising private money apply.
"The BEST, most innovative approach EVER to
obtaining Private money. I can't wait to get
going !"
Make Money in Commercial
1. There are MANY ways to make money
from real estate, but only some are actually
zero risk and require no cash or credit.
2. Yes, the market is not what it was during
the boom. BUT that actually creates MORE
opportunity if you focus on the right type
of real estate.
3. Anything that involves rehabbing, dealing
with banks, or retail buyers also comes with
headaches, confusion, and tons of money
that I personally never feel comfortable spending.
4. If you have invested in education, courses,
seminars, and coaching and you are STILL
confused or haven't done a deal it's likely
because you either are not taking action or
your educators WANT you to stay confused
so you keep buying their "magic pill" courses.
Here is where I am different from the rest and
can finally change your path if you feel confused
or frustrated...
- I only focus on tactics with zero risk that anyone
can do even without cash or credit
- I teach how to make money in THIS market, not
the ideal market of yesteryear and old school methods
that haven't worked in years.
- I can barley unclog a toilet, much less rehab
a property and frankly if I never step inside a Home
Depot again for the rest of my life I would not miss it.
So nothing I teach involves rehabbing.
from real estate, but only some are actually
zero risk and require no cash or credit.
2. Yes, the market is not what it was during
the boom. BUT that actually creates MORE
opportunity if you focus on the right type
of real estate.
3. Anything that involves rehabbing, dealing
with banks, or retail buyers also comes with
headaches, confusion, and tons of money
that I personally never feel comfortable spending.
4. If you have invested in education, courses,
seminars, and coaching and you are STILL
confused or haven't done a deal it's likely
because you either are not taking action or
your educators WANT you to stay confused
so you keep buying their "magic pill" courses.
Here is where I am different from the rest and
can finally change your path if you feel confused
or frustrated...
- I only focus on tactics with zero risk that anyone
can do even without cash or credit
- I teach how to make money in THIS market, not
the ideal market of yesteryear and old school methods
that haven't worked in years.
- I can barley unclog a toilet, much less rehab
a property and frankly if I never step inside a Home
Depot again for the rest of my life I would not miss it.
So nothing I teach involves rehabbing.
Pay $1 and get your 30 day trial to coaching
You can gain access to my Home
Study Systems for $150 offer.
PLUS... at your option, I'm willing to pay for your
first 30 days (minus your $1) to get you started
in my Apprentice Programs.
That's right $1 gets you your first 30 day trial in
any of my Apprentice Programs.
- Multifamily Apprentice: try it for $1
- Private Money Apprentice: try it for $1
- Notes Apprentice: try it for $1
But let me warn you, once you start, you're going
to feel excitement each and every week like you've
never felt before.
This $1 trial offer into my Apprentice Program is
only for the serious entrepreneur.
The Halloween Special is valid thru Oct 31:
Just go to the respective order page &
enter the respective coupon code for immediate
savings:
1) Multifamily Success Home Study System
Save $150 - enter coupon code: HALL09
http://apartmentwealthmachine.com/homestudy.htm
2) Raising Private Money Home Study System
Save $150 - enter coupon code: HALL09
http://privatemoneyformula.com/RPM.html
3) Get started on a 30 day trial in any of my
Apprentice Programs for just $1. That's right $1.
Study Systems for $150 offer.
PLUS... at your option, I'm willing to pay for your
first 30 days (minus your $1) to get you started
in my Apprentice Programs.
That's right $1 gets you your first 30 day trial in
any of my Apprentice Programs.
- Multifamily Apprentice: try it for $1
- Private Money Apprentice: try it for $1
- Notes Apprentice: try it for $1
But let me warn you, once you start, you're going
to feel excitement each and every week like you've
never felt before.
This $1 trial offer into my Apprentice Program is
only for the serious entrepreneur.
The Halloween Special is valid thru Oct 31:
Just go to the respective order page &
enter the respective coupon code for immediate
savings:
1) Multifamily Success Home Study System
Save $150 - enter coupon code: HALL09
http://apartmentwealthmachine.com/homestudy.htm
2) Raising Private Money Home Study System
Save $150 - enter coupon code: HALL09
http://privatemoneyformula.com/RPM.html
3) Get started on a 30 day trial in any of my
Apprentice Programs for just $1. That's right $1.
Flipping Real Estate How TO
I am going to show you the apartment wholesaling
process and demonstrate it with 2 actual deals:
- How I found the deals
- How I negotiated the deals
- How I evaluated the deals (cost-free)
- How I got them under control
- How I found the buyers
- How I closed them
- How I collected my fees
- How I did it without a real estate license
I'm going to open my books to show you the deals, the
payoff, the approach and even the checks.
process and demonstrate it with 2 actual deals:
- How I found the deals
- How I negotiated the deals
- How I evaluated the deals (cost-free)
- How I got them under control
- How I found the buyers
- How I closed them
- How I collected my fees
- How I did it without a real estate license
I'm going to open my books to show you the deals, the
payoff, the approach and even the checks.
Flipping Commercial Apartments
Throe is a huge opportunity in the market that
most people are not aware of.
It's flipping commercial apartments and earning
5 and even 6 figure checks.
This is a detailed breakdown of 1 of the 5 ways
you can get started in apartments.
And never lifting a hammer or paying 1 Home Depot
invoice. Not one!
Wholesaling apartments is the same as wholesaling
houses but on steroids. And it costs nothing! And
you don't touch a hammer. This is about flipping
contracts not rehabbing properties.
There's less competition. And more zeroes on the
checks. And you don't need to graduate from single
family to multifamily. You can start with multifamily
just like I did.
And this week, I am teaching you how to wholesale
apartments using 2 of my actual deals as Case
Studies. I made $50,000 from flipping these 2
apartments.
most people are not aware of.
It's flipping commercial apartments and earning
5 and even 6 figure checks.
This is a detailed breakdown of 1 of the 5 ways
you can get started in apartments.
And never lifting a hammer or paying 1 Home Depot
invoice. Not one!
Wholesaling apartments is the same as wholesaling
houses but on steroids. And it costs nothing! And
you don't touch a hammer. This is about flipping
contracts not rehabbing properties.
There's less competition. And more zeroes on the
checks. And you don't need to graduate from single
family to multifamily. You can start with multifamily
just like I did.
And this week, I am teaching you how to wholesale
apartments using 2 of my actual deals as Case
Studies. I made $50,000 from flipping these 2
apartments.
Real Coaching
Would you like some expert, one-on-one guidance or advice on how to jump start, grow or accelerate the income and profits from your real estate investing? If so, Julia will do an assessment of your experience and goals -- then point you to the free resources or support programs that will help you most.
This is a limited time opportunity, first come, first serve. One request per household only please.
All my best,
Richard Roop
P.S. If you're not one of my active or guest Inner Circle members then setup a guest account. Once logged in as a guest you can immediately access 3 training videos, an eBook, 3 special reports and 3 audio programs. This is a collection of awesome training and support easily worth hundreds of dollars.
This is a limited time opportunity, first come, first serve. One request per household only please.
All my best,
Richard Roop
P.S. If you're not one of my active or guest Inner Circle members then setup a guest account. Once logged in as a guest you can immediately access 3 training videos, an eBook, 3 special reports and 3 audio programs. This is a collection of awesome training and support easily worth hundreds of dollars.
Types of investors for Real Estate Deals
Types of investors for Real Estate Deals
Welcome to this issue of Apartment Wealth Nuggets.
The term "investor" can have different meanings to
different people.
You need to know what "investor" means in terms of
real estate investing.
Do you live in a super-competitive market where investors
mob every foreclosure prospect? Are "We bu*y Houses"
signs everywhere in your town? Is it tough to find the time to
focus on real estate investing when you have a day job?
If you answered "yes" to any of these questions, you
can't afford to miss this call! That's because there IS a
way to use the Internet to save you time and make you big profit*s
in real estate.
I'll reveal the 11 things your real estate investing
system MUST have in order to attract real estate deals.
I'll discuss what to do after you get a lead, to make sure
you turn that lead into a sale.
Google has roughly 24 million people searching for ways to
stop foreclosure everyday nationwide. I'll reveal
the secrets to getting those motivated sellers in your area calling
you!
Welcome to this issue of Apartment Wealth Nuggets.
The term "investor" can have different meanings to
different people.
You need to know what "investor" means in terms of
real estate investing.
Do you live in a super-competitive market where investors
mob every foreclosure prospect? Are "We bu*y Houses"
signs everywhere in your town? Is it tough to find the time to
focus on real estate investing when you have a day job?
If you answered "yes" to any of these questions, you
can't afford to miss this call! That's because there IS a
way to use the Internet to save you time and make you big profit*s
in real estate.
I'll reveal the 11 things your real estate investing
system MUST have in order to attract real estate deals.
I'll discuss what to do after you get a lead, to make sure
you turn that lead into a sale.
Google has roughly 24 million people searching for ways to
stop foreclosure everyday nationwide. I'll reveal
the secrets to getting those motivated sellers in your area calling
you!
Create Your Own Millionaire Mindset:
How to Raise Big Money for Your Real Estate Deals
Dear mary,
The most common question I get is this... How
do I raise money for my deals?
And I get it from people raising money for
apartments, houses, notes, strip malls,
businesses, start-ups, commercial, etc.
It's the #1 Question... undisputed. Whether
you are raising $10,000 or $10,000,000, the
same principles for raising private money apply.
And these principles work.
This new Mini Course webinar contains my newest
distinctions from the field - from today's
market place:
- How to find huge money.
- How to present your deal.
- How to structure your deal.
- How much to pay.
- How long to pay.
- How to do it all for FREE.
It applies to:
- Houses
- Apartments
- Notes
- Businesses
- Your Start-Up
- Any commercial venture
Dear mary,
The most common question I get is this... How
do I raise money for my deals?
And I get it from people raising money for
apartments, houses, notes, strip malls,
businesses, start-ups, commercial, etc.
It's the #1 Question... undisputed. Whether
you are raising $10,000 or $10,000,000, the
same principles for raising private money apply.
And these principles work.
This new Mini Course webinar contains my newest
distinctions from the field - from today's
market place:
- How to find huge money.
- How to present your deal.
- How to structure your deal.
- How much to pay.
- How long to pay.
- How to do it all for FREE.
It applies to:
- Houses
- Apartments
- Notes
- Businesses
- Your Start-Up
- Any commercial venture
I sold a house today and lost $2342
With the continuing foreclosures epidemic sweeping the country despite the best efforts of the government, more and more people are finding themselves facing the prospect of losing their homes to banks for failing to keep up with mortgage payments.
Because of our aggressive internet marketing strategies, thousands of motivated sellers nationwide visit our site, literally begging us to take these unwanted properties off their hands - and we're just happy to oblige. We're talking about houses being sold at unbelievably bargain prices.
These are wholesale properties being sold easily at 25%-35% below market value. Many of these houses have at least $20,000-$30,000 in built-in equity. They need NO negotiations. You simply get a hold of 'em, flip 'em and enjoy the profits.
Most of these homeowners in the Preforeclosure stage, would rather sell their houses - at extremely low prices - just to avoid being foreclosed on thereby saving their credit and getting some cash back for the trouble. These leads alone can boost your investing business and send your profits through the roof!
These Bankruptcy Home sellers need money - badly. And they're willing to hand you over their houses for literally pennies on the dollar. You can even become a life saver in the process!
Because of our aggressive internet marketing strategies, thousands of motivated sellers nationwide visit our site, literally begging us to take these unwanted properties off their hands - and we're just happy to oblige. We're talking about houses being sold at unbelievably bargain prices.
These are wholesale properties being sold easily at 25%-35% below market value. Many of these houses have at least $20,000-$30,000 in built-in equity. They need NO negotiations. You simply get a hold of 'em, flip 'em and enjoy the profits.
Most of these homeowners in the Preforeclosure stage, would rather sell their houses - at extremely low prices - just to avoid being foreclosed on thereby saving their credit and getting some cash back for the trouble. These leads alone can boost your investing business and send your profits through the roof!
These Bankruptcy Home sellers need money - badly. And they're willing to hand you over their houses for literally pennies on the dollar. You can even become a life saver in the process!
Want Some Bulk REOs?
Hi mary,
I made a mistake when I bought this house and thankfully
for the $8,000 tax credit, I only lost $2,342 on it.
Yes, I admit. I've done many dumb things :-)
I've made a ton of mistakes in my real estate career and
continue to make them so that you, my student, can avoid
them.
Here's what happened.
There was a house here in Houston that I fell in love with
because it was only 2 years old when I bought it and it didn't
need any repairs.
I thought it would make a great rental property and I was
banking on the property's appreciation. I was pretty sure
the value will still go up.
Boy was I wrong.
My mistake was I overbought this house from a short sale
when the market was hot. I simply thought there was no way
I could lose.
Little did I know that the banks would sell similar houses in that
neighborhood for much much less years later.
Good thing my house was in great condition and we've fixed
it up nicely since the last tenant moved out.
So we were able to sell it to a first time home buyer who was
excited to get the $8k tax credit and fell in love with the house.
The reason I shared this story with you is to let you know that:
1. don't fall in love with your investment. The numbers have to
work. It's okay to fall in love with your personal home but not
your investment property.
And
2. you don't have to go through the school of hard knocks like
I did. Learn from my mistakes.
We're going to have an exclusive training on this $8k tax credit
strategy next week.
I can't wait. :-)
Talk soon.
Tim Mai
P.S. No w check out the exciting news about the extension of the
tax credit until April 2010.
I made a mistake when I bought this house and thankfully
for the $8,000 tax credit, I only lost $2,342 on it.
Yes, I admit. I've done many dumb things :-)
I've made a ton of mistakes in my real estate career and
continue to make them so that you, my student, can avoid
them.
Here's what happened.
There was a house here in Houston that I fell in love with
because it was only 2 years old when I bought it and it didn't
need any repairs.
I thought it would make a great rental property and I was
banking on the property's appreciation. I was pretty sure
the value will still go up.
Boy was I wrong.
My mistake was I overbought this house from a short sale
when the market was hot. I simply thought there was no way
I could lose.
Little did I know that the banks would sell similar houses in that
neighborhood for much much less years later.
Good thing my house was in great condition and we've fixed
it up nicely since the last tenant moved out.
So we were able to sell it to a first time home buyer who was
excited to get the $8k tax credit and fell in love with the house.
The reason I shared this story with you is to let you know that:
1. don't fall in love with your investment. The numbers have to
work. It's okay to fall in love with your personal home but not
your investment property.
And
2. you don't have to go through the school of hard knocks like
I did. Learn from my mistakes.
We're going to have an exclusive training on this $8k tax credit
strategy next week.
I can't wait. :-)
Talk soon.
Tim Mai
P.S. No w check out the exciting news about the extension of the
tax credit until April 2010.
The Bulk REO Sales
Dear Fellow Investor,
The biggest problem dealing with Bulk REO sellers today is that
most folks aren't direct with the seller!
Dealing with flakes doesn't make you any money at all. Daisy chains
won't make you any money either.
To borrow from the Jeff Foxworthy's "You May Be A Redneck If...",
attached is our continued parody called "You Are Not Direct With
The Seller If":
6. They have more misspellings than a 2nd Grader on their emails.
5. They call you weekends, e-mail you everyday looking to find out
when the deal is going to close.
4. All assets are “performing”; however, the last paid through
date was 6 months ago.
3. They want a fee agreement before sending you anything.
The biggest problem dealing with Bulk REO sellers today is that
most folks aren't direct with the seller!
Dealing with flakes doesn't make you any money at all. Daisy chains
won't make you any money either.
To borrow from the Jeff Foxworthy's "You May Be A Redneck If...",
attached is our continued parody called "You Are Not Direct With
The Seller If":
6. They have more misspellings than a 2nd Grader on their emails.
5. They call you weekends, e-mail you everyday looking to find out
when the deal is going to close.
4. All assets are “performing”; however, the last paid through
date was 6 months ago.
3. They want a fee agreement before sending you anything.
With Private Lending
Target marketing allows you to be more
effective in the way you present your
multifamily deals.
Ever wished you could get your hands on
all the money you need to do any real
estate deal you want?
Well, that's exactly what you will learn
how to do in Alan Cowgill's upcoming "Real Estate
Investing Made Easy With Private Lending?" training
call to be held on Tuesday October 27th, 2009 at
6PM Pacific / 8PM Central / 9PM Eastern.
This is your chance to discover how to
finance any real estate deal even if you have:
- No Money
- No Experience
- Big Debt
- And B'ad Credit
At last, you can learn how to consistently
obtain the cash you need to invest in
profitable real estate deals. In fact,
with this new, bottomless source of funds,
you will:
- Never have to miss out on a great deal
due to lack of cash again!
- Never have to place a limit on the amount of
money you can earn as a real estate investor!
- Never have to wait for a bank loan again (or go
through the time-consuming loan application process)!
- Never have to pay points to hard money lenders again!
- Always be able to deliver on all your short sales!
- Always have more than enough money chasing you to
do any deal you want!
So what are you waiting for?
Sign up today and discover how to get all
the private money you need to explode your
real estate investing business and begin
earning the type of profits that you have
always dreamed about!
commercial mortgage lenders
commercial lenders
commercial bridge loans
commercial truck financing
mortgage lenders
commercial refinance
mortgage loan lenders
second mortgage lenders
commercial mortgage refinance
mortgages sub prime
realestate investment
foreclosed property
foreclosure homes for sale
effective in the way you present your
multifamily deals.
Ever wished you could get your hands on
all the money you need to do any real
estate deal you want?
Well, that's exactly what you will learn
how to do in Alan Cowgill's upcoming "Real Estate
Investing Made Easy With Private Lending?" training
call to be held on Tuesday October 27th, 2009 at
6PM Pacific / 8PM Central / 9PM Eastern.
This is your chance to discover how to
finance any real estate deal even if you have:
- No Money
- No Experience
- Big Debt
- And B'ad Credit
At last, you can learn how to consistently
obtain the cash you need to invest in
profitable real estate deals. In fact,
with this new, bottomless source of funds,
you will:
- Never have to miss out on a great deal
due to lack of cash again!
- Never have to place a limit on the amount of
money you can earn as a real estate investor!
- Never have to wait for a bank loan again (or go
through the time-consuming loan application process)!
- Never have to pay points to hard money lenders again!
- Always be able to deliver on all your short sales!
- Always have more than enough money chasing you to
do any deal you want!
So what are you waiting for?
Sign up today and discover how to get all
the private money you need to explode your
real estate investing business and begin
earning the type of profits that you have
always dreamed about!
commercial mortgage lenders
commercial lenders
commercial bridge loans
commercial truck financing
mortgage lenders
commercial refinance
mortgage loan lenders
second mortgage lenders
commercial mortgage refinance
mortgages sub prime
realestate investment
foreclosed property
foreclosure homes for sale
Apartment Wealth Nuggets
Welcome to this issue of Apartment Wealth Nuggets.
Never underestimate the importance of knowing
your target market.
Knowing your target market enables you to address
their particular needs.
Find out some possible target markets by visiting:
http://www.apartmentwealthinfo.com/?p=126
Never underestimate the importance of knowing
your target market.
Knowing your target market enables you to address
their particular needs.
Find out some possible target markets by visiting:
http://www.apartmentwealthinfo.com/?p=126
To your Quick Self Storage Success
HI there!
You know, one of the most frequent objections I get when I tell people about how cheaply and easily you can enter the commercial real estate business with self storage is "yeah, but it's commercial; IT'S ALL EXPENSIVE!" Even after I have shared the numerous examples of dozens of deals we've uncovered all across the country for less than $50,000!
Well to prove my point to the rest of the naysayers, I am requesting your assistance - and you will DEFINITELY be rewarded. For the person who can produce the lowest advertised price on a self storage facility for sale, or that has been closed within the past 12 months
You know, one of the most frequent objections I get when I tell people about how cheaply and easily you can enter the commercial real estate business with self storage is "yeah, but it's commercial; IT'S ALL EXPENSIVE!" Even after I have shared the numerous examples of dozens of deals we've uncovered all across the country for less than $50,000!
Well to prove my point to the rest of the naysayers, I am requesting your assistance - and you will DEFINITELY be rewarded. For the person who can produce the lowest advertised price on a self storage facility for sale, or that has been closed within the past 12 months
Latest Video from Robert Kiyosaki
Latest Video from Robert Kiyosaki
When you watch my latest video. I'll show you why this is such an important seminar - especially considering the current financial crisis. This is a once-in-a-lifetime seminar about doing deals without money. At this interactive event, you will experience a new way to think about structuring transactions.
There is no credit. People are being wiped out. The rich are becoming poor. Yet, there is still opportunity everywhere. If you are financially educated you do not need money to take advantage of these opportunities.
At the The Art of a Deal seminar I will teach you how to put deals together without any money.
I started out with no money and interest rates were around 20%. I learned to operate with no money in adverse situations. I did this because I HAD to operate with no money.
Today there is no credit, valuations are dropping at high speed, wealth is disappearing and people are being wiped out left and right. So, while the economy is terrible and you may not have money, opportunity is still tremendous - if you have the know-how. This seminar is your chance. This is your chance to change your life. You will walk away seeing a whole new world of opportunity.
When you watch my latest video. I'll show you why this is such an important seminar - especially considering the current financial crisis. This is a once-in-a-lifetime seminar about doing deals without money. At this interactive event, you will experience a new way to think about structuring transactions.
There is no credit. People are being wiped out. The rich are becoming poor. Yet, there is still opportunity everywhere. If you are financially educated you do not need money to take advantage of these opportunities.
At the The Art of a Deal seminar I will teach you how to put deals together without any money.
I started out with no money and interest rates were around 20%. I learned to operate with no money in adverse situations. I did this because I HAD to operate with no money.
Today there is no credit, valuations are dropping at high speed, wealth is disappearing and people are being wiped out left and right. So, while the economy is terrible and you may not have money, opportunity is still tremendous - if you have the know-how. This seminar is your chance. This is your chance to change your life. You will walk away seeing a whole new world of opportunity.
Alan Cowgill's training
Still not sure this training call is right for you?
Ask yourself this question: What would you do if you
had access to all the money you needed to complete any
real estate deal?
- Would you be more aggressive in hunting for
profitable deals?
- Would you do bigger deals that offer the possibility
of greater profits?
- Would you begin buying higher value properties
that offer bigger returns?
- Would you leverage the power of your unlimited
funds to secure bigger discounts in your deals?
- Would you be willing to take more chances knowing
that if they succeed you'll net much higher
profits than usual?
- Would you sleep easier at night knowing that your
funding needs are taken care of and that you'll never
have to miss another deal due to lack of cash?
- Would you begin enjoying a true life of luxury?
- Would you decide to retire early?
- Would you take the time that you used to spend
trying to get funding and now use it to be with
your family or to work on other areas of your business?
No matter what you decide to do, Alan Cowgill's training
call (which will be held Thursday, October 29, 2009 1pm CST)
will tell you exactly what you need to know to use private
lenders to get all the financing you need to realize your
goals and take your real estate investing success to
the next level!
Ask yourself this question: What would you do if you
had access to all the money you needed to complete any
real estate deal?
- Would you be more aggressive in hunting for
profitable deals?
- Would you do bigger deals that offer the possibility
of greater profits?
- Would you begin buying higher value properties
that offer bigger returns?
- Would you leverage the power of your unlimited
funds to secure bigger discounts in your deals?
- Would you be willing to take more chances knowing
that if they succeed you'll net much higher
profits than usual?
- Would you sleep easier at night knowing that your
funding needs are taken care of and that you'll never
have to miss another deal due to lack of cash?
- Would you begin enjoying a true life of luxury?
- Would you decide to retire early?
- Would you take the time that you used to spend
trying to get funding and now use it to be with
your family or to work on other areas of your business?
No matter what you decide to do, Alan Cowgill's training
call (which will be held Thursday, October 29, 2009 1pm CST)
will tell you exactly what you need to know to use private
lenders to get all the financing you need to realize your
goals and take your real estate investing success to
the next level!
Alan Cowgill's training
Still not sure this training call is right for you?
Ask yourself this question: What would you do if you
had access to all the money you needed to complete any
real estate deal?
- Would you be more aggressive in hunting for
profitable deals?
- Would you do bigger deals that offer the possibility
of greater profits?
- Would you begin buying higher value properties
that offer bigger returns?
- Would you leverage the power of your unlimited
funds to secure bigger discounts in your deals?
- Would you be willing to take more chances knowing
that if they succeed you'll net much higher
profits than usual?
- Would you sleep easier at night knowing that your
funding needs are taken care of and that you'll never
have to miss another deal due to lack of cash?
- Would you begin enjoying a true life of luxury?
- Would you decide to retire early?
- Would you take the time that you used to spend
trying to get funding and now use it to be with
your family or to work on other areas of your business?
No matter what you decide to do, Alan Cowgill's training
call (which will be held Thursday, October 29, 2009 1pm CST)
will tell you exactly what you need to know to use private
lenders to get all the financing you need to realize your
goals and take your real estate investing success to
the next level!
Ask yourself this question: What would you do if you
had access to all the money you needed to complete any
real estate deal?
- Would you be more aggressive in hunting for
profitable deals?
- Would you do bigger deals that offer the possibility
of greater profits?
- Would you begin buying higher value properties
that offer bigger returns?
- Would you leverage the power of your unlimited
funds to secure bigger discounts in your deals?
- Would you be willing to take more chances knowing
that if they succeed you'll net much higher
profits than usual?
- Would you sleep easier at night knowing that your
funding needs are taken care of and that you'll never
have to miss another deal due to lack of cash?
- Would you begin enjoying a true life of luxury?
- Would you decide to retire early?
- Would you take the time that you used to spend
trying to get funding and now use it to be with
your family or to work on other areas of your business?
No matter what you decide to do, Alan Cowgill's training
call (which will be held Thursday, October 29, 2009 1pm CST)
will tell you exactly what you need to know to use private
lenders to get all the financing you need to realize your
goals and take your real estate investing success to
the next level!
Thursday, October 29, 2009
Dear Fellow Member:
First, the remaining guest spots are starting to dwindle for
the Property Discovery Day the end of the month. To make
sure you should (or shouldn’t) join the others that will be here
the end of the month go to www.GarmanUpdate2.com
Now you can find out what it is really like here..
-----------------------------------------------------------------------
Now on to it..
What Is Your Most Important Skill?
Is it knowing financing?
Is it knowing how to get down payment money or private money?
Is it being able to analyze a deal effectively?
Is it good looks??
What is it??
My opinion...
TIME. Being able to use time effectively and spending your time on the
most important things at any given moment.
More than likely, if you are ‘behind’ where you want to be a big reason is
this – not spending your time very effectively and not getting the most
out of every day that you should be getting. Hey, I am not just talking
about work – I am also talking about personal things too.
For example – the best thing I could have been doing with my time last
Saturday was spending time with friends at the football game.
You see, it’s a choice. What are you choosing to spend your time on?
If you don’t get the time ‘thing’ down then the rest of your achievement
will be very difficult to find...
Best
the Property Discovery Day the end of the month. To make
sure you should (or shouldn’t) join the others that will be here
the end of the month go to www.GarmanUpdate2.com
Now you can find out what it is really like here..
-----------------------------------------------------------------------
Now on to it..
What Is Your Most Important Skill?
Is it knowing financing?
Is it knowing how to get down payment money or private money?
Is it being able to analyze a deal effectively?
Is it good looks??
What is it??
My opinion...
TIME. Being able to use time effectively and spending your time on the
most important things at any given moment.
More than likely, if you are ‘behind’ where you want to be a big reason is
this – not spending your time very effectively and not getting the most
out of every day that you should be getting. Hey, I am not just talking
about work – I am also talking about personal things too.
For example – the best thing I could have been doing with my time last
Saturday was spending time with friends at the football game.
You see, it’s a choice. What are you choosing to spend your time on?
If you don’t get the time ‘thing’ down then the rest of your achievement
will be very difficult to find...
Best
Mobile Home Parks
I didn't know that so many people were passionate about
making money with Mobile Home Parks like me. From the
emails I've gotten back I can see 3 main reasons for this:
1) In hard times Mobile Home Parks stay full
2) Most investors love the idea of owning JUST the land, not
the "Boxes"
3) You can get easy owner carry financing because "that's
the way it's done".
Then when my friend Frank Rolfe mentioned "The Magic Number" for
Mobile Home Parks the other day a light came on in my head.
"That's it Frank!", I exclaimed. That's why anyone can afford to live
in a Mobile Home Park - the lot rent plus the cost of the home
need to be right at this "magic number"...
making money with Mobile Home Parks like me. From the
emails I've gotten back I can see 3 main reasons for this:
1) In hard times Mobile Home Parks stay full
2) Most investors love the idea of owning JUST the land, not
the "Boxes"
3) You can get easy owner carry financing because "that's
the way it's done".
Then when my friend Frank Rolfe mentioned "The Magic Number" for
Mobile Home Parks the other day a light came on in my head.
"That's it Frank!", I exclaimed. That's why anyone can afford to live
in a Mobile Home Park - the lot rent plus the cost of the home
need to be right at this "magic number"...
"Driving for Dollars"
I just conducted an interview with Darren Dicke... a very
successful investor who wholesales houses in Columbus, Ohio.
During the interview, Darren shared with me a KIILER TIP
about how he finds and sells wholesale deals -- so simple
and brilliant -- and I wanted to share it with you today.
Darren calls this tip "Driving for Dollars".
Here's how it works...
When Darren is driving around neighborhoods in Columbus, he
looks for houses with "For Rent" signs in the front yard.
When he finds one, he pulls over, gets out his cell phone,
calls the number on the sign, and
asks the owner of the house (the landlord) these 4 simple
questions:
1. "I'm calling about the house you have for rent on
123 Birch Ave. Would you be interested in selling the
house?"
(If they answer "no", he asks...)
2. "Do you own any other houses you'd be interested in
selling?"
(If this answer is "no" to this question, he then asks...)
3. "Do you know anyone else who has houses that they may be
interested in selling?"
(If this question is also answered "no", he asks...)
4. "Are you looking to build your personal portfolio? From
time to time, I come across houses in this neighborhood.
Would you like me contact you when I know of a house that
becomes available for sale in the area?"
Approximately half of all the deals that Darren does is a
result of him asking those four questions. The first 3
questions get him seller leads, and the fourth question
allows him to add qualified names to his buyers list
(landlord buyers). If any of the first 3 questions are
answered "yes", he treats it like any other seller lead.
During my interview with Darren, I suddenly got the idea
that you could also apply this tip to houses you see
advertised for rent on Craigslist.com, in your local
newspapers, and in the Thrifty Nickel and Greensheet papers.
Just contact landlords with houses for rent and ask them the
4 questions above. You are certain to find some motivated
sellers (burned-out landlords) and some very qualified
landlord buyers (for your deals)... that can easily turn into
a big payday for you in a short period of time!
Try this tip out for yourself... and let me hear about your
success stories.
All the best,
Michael Kimble
P.S. Here's another tip: You can also automate this
process by compiling a list of phone numbers of houses for
rent in your area and then send out a recorded voice
broadcast that says something like...
"Hi, my name is [your name]. I'm calling about the house
you have for rent. I buy houses in your area. If you're
interested in selling this house or any others, please call
me. Also, from time to time, I come across houses in your
neighborhood. If you're looking to add to your personal
portfolio and want me to contact you when I find houses in
your area, also please call me. My telephone number is
555-5555. Again, that's 555-5555."
successful investor who wholesales houses in Columbus, Ohio.
During the interview, Darren shared with me a KIILER TIP
about how he finds and sells wholesale deals -- so simple
and brilliant -- and I wanted to share it with you today.
Darren calls this tip "Driving for Dollars".
Here's how it works...
When Darren is driving around neighborhoods in Columbus, he
looks for houses with "For Rent" signs in the front yard.
When he finds one, he pulls over, gets out his cell phone,
calls the number on the sign, and
asks the owner of the house (the landlord) these 4 simple
questions:
1. "I'm calling about the house you have for rent on
123 Birch Ave. Would you be interested in selling the
house?"
(If they answer "no", he asks...)
2. "Do you own any other houses you'd be interested in
selling?"
(If this answer is "no" to this question, he then asks...)
3. "Do you know anyone else who has houses that they may be
interested in selling?"
(If this question is also answered "no", he asks...)
4. "Are you looking to build your personal portfolio? From
time to time, I come across houses in this neighborhood.
Would you like me contact you when I know of a house that
becomes available for sale in the area?"
Approximately half of all the deals that Darren does is a
result of him asking those four questions. The first 3
questions get him seller leads, and the fourth question
allows him to add qualified names to his buyers list
(landlord buyers). If any of the first 3 questions are
answered "yes", he treats it like any other seller lead.
During my interview with Darren, I suddenly got the idea
that you could also apply this tip to houses you see
advertised for rent on Craigslist.com, in your local
newspapers, and in the Thrifty Nickel and Greensheet papers.
Just contact landlords with houses for rent and ask them the
4 questions above. You are certain to find some motivated
sellers (burned-out landlords) and some very qualified
landlord buyers (for your deals)... that can easily turn into
a big payday for you in a short period of time!
Try this tip out for yourself... and let me hear about your
success stories.
All the best,
Michael Kimble
P.S. Here's another tip: You can also automate this
process by compiling a list of phone numbers of houses for
rent in your area and then send out a recorded voice
broadcast that says something like...
"Hi, my name is [your name]. I'm calling about the house
you have for rent. I buy houses in your area. If you're
interested in selling this house or any others, please call
me. Also, from time to time, I come across houses in your
neighborhood. If you're looking to add to your personal
portfolio and want me to contact you when I find houses in
your area, also please call me. My telephone number is
555-5555. Again, that's 555-5555."
Monday, October 26, 2009
Vital Ingredients of a Good Rental Application
If you recall, last week I talked about the importance of being certain that the information your are given on a Rental Application is correct. Jim Cole from the LandlordAssociation .Org Yahoo Group suggested that an applicant's driver's license or state I.D. should be copied if at all possible. I wrote back to him to confirm that also making a copy of the applicant's actual social security card is a good idea. Especially since people may often try to use another person's identity on a Rental Application. If there is no way to copy the identification, it's a good idea to look over them very carefully when an application is completed. I suggest that when you're talking to them on the phone or by email that you tell them ahead of time to bring their I.D. and social security card with them. I thank Jim Cole for reminding me about this important step.
The second most vital information on a Rental Application is their current address and any past addresses. I encourage you to get addresses for the last 5 years. Why so much address information? Eviction records from the court system are based upon name and address only. Think about it, that's all you list on an eviction notice. This is the only information the court has when they complete an eviction so it's the only identifiers that end up on an Eviction Report.
The question is... Would you deny an application if you saw several evictions filed from the same address against your applicant four years ago? I probably would. It indicates they could be a chronic late payer. I remember a woman telling me once that she thought she might have an eviction filing at an apartment complex she lived in four years earlier. Well she did. Twelve of them to be exact for ever single month she lived there.
So getting as much past address information as you can allows you to properly compare name with address on the Eviction Report against the name and address information on the SSN Trace Report and with the Rental Application. You need a good indicator of rental payment history so this is the first step in finding it.
This brings us to Landlord information. I say get Landlord information for the past five years too. Why? If you see a prior judgment for eviction from a few years ago, you should have the Landlord's name and phone number to call. If the applicant says they can't recall names or phone numbers use your County Clerk of Courts or County Auditor website to look up the Landlord information through the Property Tax Records. You can do this with any addresses that the applicant failed to list too. Don't depend on the applicant 100% to give you correct information. It's too easy for people to simply list a friend's name and phone number as their Landlord. Of course you would get a fantastic reference.
Yes, screening a Rental Application is like being a good detective. You must look at all resources possible to make an informed decision about your applicant's past rental history.
At Management Information Services, we get your Screening Reports to you in minutes. There is no account set up needed, when you use our Resident Screening Services For Individual Landlords. Just go to the web page and order the reports anytime you need them. Please click this link for more information.
If you would like a sample copy of a Rental Application, send me an email and I'll be happy to send it to you. Nearly 100 people asked for it last week and I enjoyed sending them out and hearing their comments. But don't worry, I don't ever send unsolicited advertising emails to yahoo group members personal email addresses. I will simply send you the Rental Application as you requested.
Enjoy your day,
The second most vital information on a Rental Application is their current address and any past addresses. I encourage you to get addresses for the last 5 years. Why so much address information? Eviction records from the court system are based upon name and address only. Think about it, that's all you list on an eviction notice. This is the only information the court has when they complete an eviction so it's the only identifiers that end up on an Eviction Report.
The question is... Would you deny an application if you saw several evictions filed from the same address against your applicant four years ago? I probably would. It indicates they could be a chronic late payer. I remember a woman telling me once that she thought she might have an eviction filing at an apartment complex she lived in four years earlier. Well she did. Twelve of them to be exact for ever single month she lived there.
So getting as much past address information as you can allows you to properly compare name with address on the Eviction Report against the name and address information on the SSN Trace Report and with the Rental Application. You need a good indicator of rental payment history so this is the first step in finding it.
This brings us to Landlord information. I say get Landlord information for the past five years too. Why? If you see a prior judgment for eviction from a few years ago, you should have the Landlord's name and phone number to call. If the applicant says they can't recall names or phone numbers use your County Clerk of Courts or County Auditor website to look up the Landlord information through the Property Tax Records. You can do this with any addresses that the applicant failed to list too. Don't depend on the applicant 100% to give you correct information. It's too easy for people to simply list a friend's name and phone number as their Landlord. Of course you would get a fantastic reference.
Yes, screening a Rental Application is like being a good detective. You must look at all resources possible to make an informed decision about your applicant's past rental history.
At Management Information Services, we get your Screening Reports to you in minutes. There is no account set up needed, when you use our Resident Screening Services For Individual Landlords. Just go to the web page and order the reports anytime you need them. Please click this link for more information.
If you would like a sample copy of a Rental Application, send me an email and I'll be happy to send it to you. Nearly 100 people asked for it last week and I enjoyed sending them out and hearing their comments. But don't worry, I don't ever send unsolicited advertising emails to yahoo group members personal email addresses. I will simply send you the Rental Application as you requested.
Enjoy your day,
Friday, October 23, 2009
Vital Ingredients of a Good Rental Application
Part Two
Dear Group,
If you recall, last week I talked about the importance of being certain that the information your are given on a Rental Application is correct. Jim Cole from the LandlordAssociation .Org Yahoo Group suggested that an applicant's driver's license or state I.D. should be copied if at all possible. I wrote back to him to confirm that also making a copy of the applicant's actual social security card is a good idea. Especially since people may often try to use another person's identity on a Rental Application. If there is no way to copy the identification, it's a good idea to look over them very carefully when an application is completed. I suggest that when you're talking to them on the phone or by email that you tell them ahead of time to bring their I.D. and social security card with them. I thank Jim Cole for reminding me about this important step.
The second most vital information on a Rental Application is their current address and any past addresses. I encourage you to get addresses for the last 5 years. Why so much address information? Eviction records from the court system are based upon name and address only. Think about it, that's all you list on an eviction notice. This is the only information the court has when they complete an eviction so it's the only identifiers that end up on an Eviction Report.
The question is... Would you deny an application if you saw several evictions filed from the same address against your applicant four years ago? I probably would. It indicates they could be a chronic late payer. I remember a woman telling me once that she thought she might have an eviction filing at an apartment complex she lived in four years earlier. Well she did. Twelve of them to be exact for ever single month she lived there.
So getting as much past address information as you can allows you to properly compare name with address on the Eviction Report against the name and address information on the SSN Trace Report and with the Rental Application. You need a good indicator of rental payment history so this is the first step in finding it.
This brings us to Landlord information. I say get Landlord information for the past five years too. Why? If you see a prior judgment for eviction from a few years ago, you should have the Landlord's name and phone number to call. If the applicant says they can't recall names or phone numbers use your County Clerk of Courts or County Auditor website to look up the Landlord information through the Property Tax Records. You can do this with any addresses that the applicant failed to list too. Don't depend on the applicant 100% to give you correct information. It's too easy for people to simply list a friend's name and phone number as their Landlord. Of course you would get a fantastic reference.
Yes, screening a Rental Application is like being a good detective. You must look at all resources possible to make an informed decision about your applicant's past rental history.
At Management Information Services, we get your Screening Reports to you in minutes. There is no account set up needed, when you use our Resident Screening Services For Individual Landlords. Just go to the web page and order the reports anytime you need them. Please click this link for more information.
If you would like a sample copy of a Rental Application, send me an email and I'll be happy to send it to you. Nearly 100 people asked for it last week and I enjoyed sending them out and hearing their comments. But don't worry, I don't ever send unsolicited advertising emails to yahoo group members personal email addresses. I will simply send you the Rental Application as you requested.
Enjoy your day,
Dear Group,
If you recall, last week I talked about the importance of being certain that the information your are given on a Rental Application is correct. Jim Cole from the LandlordAssociation .Org Yahoo Group suggested that an applicant's driver's license or state I.D. should be copied if at all possible. I wrote back to him to confirm that also making a copy of the applicant's actual social security card is a good idea. Especially since people may often try to use another person's identity on a Rental Application. If there is no way to copy the identification, it's a good idea to look over them very carefully when an application is completed. I suggest that when you're talking to them on the phone or by email that you tell them ahead of time to bring their I.D. and social security card with them. I thank Jim Cole for reminding me about this important step.
The second most vital information on a Rental Application is their current address and any past addresses. I encourage you to get addresses for the last 5 years. Why so much address information? Eviction records from the court system are based upon name and address only. Think about it, that's all you list on an eviction notice. This is the only information the court has when they complete an eviction so it's the only identifiers that end up on an Eviction Report.
The question is... Would you deny an application if you saw several evictions filed from the same address against your applicant four years ago? I probably would. It indicates they could be a chronic late payer. I remember a woman telling me once that she thought she might have an eviction filing at an apartment complex she lived in four years earlier. Well she did. Twelve of them to be exact for ever single month she lived there.
So getting as much past address information as you can allows you to properly compare name with address on the Eviction Report against the name and address information on the SSN Trace Report and with the Rental Application. You need a good indicator of rental payment history so this is the first step in finding it.
This brings us to Landlord information. I say get Landlord information for the past five years too. Why? If you see a prior judgment for eviction from a few years ago, you should have the Landlord's name and phone number to call. If the applicant says they can't recall names or phone numbers use your County Clerk of Courts or County Auditor website to look up the Landlord information through the Property Tax Records. You can do this with any addresses that the applicant failed to list too. Don't depend on the applicant 100% to give you correct information. It's too easy for people to simply list a friend's name and phone number as their Landlord. Of course you would get a fantastic reference.
Yes, screening a Rental Application is like being a good detective. You must look at all resources possible to make an informed decision about your applicant's past rental history.
At Management Information Services, we get your Screening Reports to you in minutes. There is no account set up needed, when you use our Resident Screening Services For Individual Landlords. Just go to the web page and order the reports anytime you need them. Please click this link for more information.
If you would like a sample copy of a Rental Application, send me an email and I'll be happy to send it to you. Nearly 100 people asked for it last week and I enjoyed sending them out and hearing their comments. But don't worry, I don't ever send unsolicited advertising emails to yahoo group members personal email addresses. I will simply send you the Rental Application as you requested.
Enjoy your day,
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