powerpoint_presentation_reo_flips

Millions in Reo Flips:

Millions in Reo Flips

Coaching DVD:

Coaching DVD

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Step One

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Assest Protection Sole Proprietorship Regular C Corporation S Corporation LLC (Limited Liability Company) Living Trust

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Sole Proprietorship

C – Corporation / S – Corporation :

C – Corporation / S – Corporation A “C corporation” (unlike an S corporation) is not restricted as to the types of eligible shareholders. Thus, the shareholders can include individuals, other corporations, trusts , partnerships , LLCs , and other quasi-entities. The terms " C corporation " and " S corporation " are used to distinguish corporations governed by Subchapter C of the Internal Revenue Code from those governed by Subchapter S. Differences are basically in how the corp is taxed and the limit of shareholders/owners

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Provides limited liability to its owners, it is a hybrid business entity having certain characteristics of both a corporation and a partnership or sole proprietorship . The primary characteristic an LLC shares with a corporation is being limited in liability , and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. It is often more flexible than a corporation and it is well-suited for companies with a single owner. Courts can and do pierce the corporate veil of LLCs when some type of fraudulent activity or misrepresentation is involved.

Living Trust:

Living Trust A living trust is a trust created during a person's lifetime to either save money on taxes or set up long term property management. All living trusts are designed to avoid probate proceedings and may in addition be used to reduce taxes, safeguard financial privacy, and regulate the use of assets if the owner becomes incapacitated. It is also a separate entity from you personally , allowing for better protection against suits. Always check with an attorney in your state.

What is an REO?:

What is an REO? A. Pre-Foreclosed home B . Home sold at auction C . Banked owned Property

REO – Real Estate Owned:

REO – Real Estate Owned A PROPERTY THAT THE BANK HAS FORECLOSED ON

Working Toward Mastery:

Time Spent Projects Worked On Get Familiar Achieve Mastery Working Toward Mastery Get Experienced

HOW REO’s ARE CREATED :

HOW REO’s ARE CREATED Once the home owner has stopped making payments, the bank will send out a “notice of default” The owner has certain time frame to respond, and if payment or agreement of payment is not reached, the bank will then start the foreclosure process.

REO EVICTION:

REO EVICTION Bank will have eviction process performed through court system and local county and state laws. They will then have an agent they work with have a team clean out the property ( which banks pay for) and then list it on the market The bank sends out their own BPO agent ( usually the listing agent ) to determine a value

REO’s & Profit:

REO’s & Profit Out of all the real estate investment techniques REO’s offer some of the highest returns Has the least amount of work and time needed Lets you focus on a few tasks VS. many Deals close faster than with short sales

WHAT YOU WILL BE LEARNING?:

WHAT YOU WILL BE LEARNING? LOW TO ZERO OVER HEAD APPROACH ON MARKETING. IT CAN BE APLIED TO ANY PRODUCT OR SERIVCE USING LITTLE TO NONE OF YOUR OWN CASH OR CREDIT HOW TO HAVE OTHER PEOPLE DO MOST OF YOUR WORK, BASED ON A SYSTEMATIC APPROACH USING A PROVEN TEMPLATE

Building Your Team :

Building Your Team Broker Private Investor Hard Money Lender Real Estate Agent Transactional Lender Credit Partner

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Real Estate Already Has A Method That Works.

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SELLER YOU Real Estate Agent BUYER APPRAISER BANK TITLE ESCROW

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BROKERS They make money by producing loans They are a vital role in the real estate market When you approach them , remember you are bringing money to them when you bring your buyers.

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HELP GET YOUR BUYERS FINANCED THEY SHOULD BE FHA QUALIFIED THEY WORK WITH TITLE AND APPRAISERS BUYER

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THEY PUT TOGETHER THE LOAN PACKAGES THIS INCREASES THE CHANCES OF GETTING AN APPROVAL BUYER THEY COMMUNICATE WITH LENDERS TO QUALIFY BUYERS. THEY USUALLY HAVE MORE THAN ONE LENDER THEY WORK WITH.

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ASK IF THEY HAVE BUYERS WITH OUT PROPERTIES BUYER BUYERS GET OUT-BID OR A REJECTED OFFER, AND IF A BROKER HAS A BUYER WITHOUT A HOME HE DOES NOT HAVE A DEAL. IT IS ALWAYS A GOOD IDEA TO ASK

getting a mini app from a broker:

getting a mini app from a broker A mini app is a short version of what brokers call a 1003 aka loan application A mini app has just enough info on it for the broker to run credit

COMMUNICATION WITH BROKER:

COMMUNICATION WITH BROKER BROKER: Hello this is ______ , thank you for calling how can I help you? YOU: Hello , my name is ____ and I am a real estate investor. I want to know if you are an FHA approved broker. BROKER: Yes I am approved with FHA, are you looking for a loan?

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BROKER: Yes I can , do your buyers have good credit? What kind of investing do you do? YOU: Not to worry, I pre-screen the buyers before I send them to you. And I work primarily with buyers who are looking for good deals on homes. BROKER: Ok great , let me know when you have your buyers ready. YOU: I sure will . In the meantime please send me a mini app, or comparable form I can have my buyers fill out for me to send to you.

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BROKER: Yes, I can send you our mini app. What is your fax/email ? YOU: My email/fax is ___. Is there anything specific you are looking in potential buyers? BROKER: We’re looking for ____. (Make sure you take notes.) YOU: Sounds good. I will make sure to use your conditions as part of my pre-screening process.

QUICK TIP TO SUCCESS WITH BROKER:

QUICK TIP TO SUCCESS WITH BROKER The better you pre-screen your buyers, the more deals you push through, and the better your broker works for you. You can use the broker’s network of title agents , realtors , and whoever else ….. This will help with fast growth in real estate.

How to find FHA brokers:

How to find FHA brokers There are 2 very easy ways to find FHA BROKERS 1. www.craigslist.org 2. www.yellowpages.com

How to use www.YellowPages.com:

How to use www.YellowPages.com

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www.yellowpages.com

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Once you click on “find”, yellow pages will then populate a search result list. It lists phone numbers for easy access or you can click on the company name for additional info.

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Notice once you click on company name you are then given some additional information about company

How to use www.CraigsList.org:

How to use www.CraigsList.org

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Once you are at craigslist look under the Jobs section for real estate then click on “real estate”

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NOTICE: you may get this page after you click on “real estate” it is a scam alert , go ahead and click on “continue to real estate job posting”

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NOTICE: The first listing on top says mortgage broker. Click on the different listings you see until what you read is a good fit for you.

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NOTICE: read the ad and look for a contact number. This will go directly to broker or whomever is in charge that you can speak with.

WHAT IS A HARD MONEY LENDER?:

WHAT IS A HARD MONEY LENDER? A bank that deals with real estate agents who do short sales Some one who has a hard time lending money An ATM that gives out free money A lender who does not lend based on your credit Criteria is based on the property and deal A great alternative to NOT having cash or credit

HARD MONEY LENDER:

HARD MONEY LENDER They do not have nearly the same condition requirements that FHA DOES about the property They also do loans for Rehab properties You can also use them to market financing for investors and end buyers

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CONTACTING AND COMMUNICATING WITH HARD MONEY LENDERS Look for hard money lenders using yahoo , simply type “hard money lenders” in the search bar When you call a representative, ask for an explanation of how their process works and they will walk you through it They will send you all the necessary documents ( via fax / email )

WHAT IS A TRANSACTION LENDER?:

WHAT IS A TRANSACTION LENDER? MORTGAGE COMPANY BANK REGULATOR PERSONAL LENDER A – B LENDER TEMPARARY LENDING SOLUTION PRIVATE LENDING COMPANY

TRANSACTIONAL LENDER:

TRANSACTIONAL LENDER A. Bank B. You C. End Buyer They Lend to you for your A-B transaction This a temporary loan until the B-C closes Both deals open escrow same day

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TRANSACTIONAL LENDER This is a double close Between A-B then B-C Use “old school title and escrow”; they specialize in this method

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A – B would open escrow At the same time (day) B – C would open escrow This would not be a simultaneous close, but a DOUBLE close . TRANSACTIONAL LENDER

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TRANSACTIONAL LENDER REVIEW - THEY LEND FROM A-B NOT B-C - THEY SHOW PROOF OF FUNDS - THEY GIVE A TEMPORARY LOAN - BEST USED WHEN BUYER IS ALREADY LINED UP - DOUBLE CLOSE - USE “OLD SCHOOL TITLE AND ESCROW”

PRIVATE INVESTOR :

PRIVATE INVESTOR Can be anyone who wants to invest with you. You can increase your chance of finding a private investor at your chamber of commerce meetings Offering 45 -50% on profits will help motivate private investors to work with you You can also use social media to find a private investor. Always strive to expand your network; this will also make real estate in general easier.

PRIVATE INVESTOR TIPS:

PRIVATE INVESTOR TIPS Never give up your sources for the contacts you have gathered If you have a deal, present it to them. If not, contact a real estate agent and ask them to send you their REO list. Once you have a list of properties that are potentially good deals, you can then present them to the investor With great deals on properties, buyers are very attracted to such deals. Investors cannot deny this truth.

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REAL ESTATE AGENTS Deal with sellers and REO’s all the time. They market for sellers and some also have REO’s. REO agents have REO listings that you can use to find buyers. This helps find properties without home owners which helps dealing with just buyers instead of both sellers and buyers.

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Look for REO’s that are listed with agents; they will have more. They have REO’s that are not LISTED on the MLS (properties that are being cleaned) This allows you to research and run numbers with out the worry of being out-bid or rushing.

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This way they know that their commission will not be split. In fact, it might increase if they represent you on the buying side of the deal Let them know you do not have an agent Ask them to email you a list of their REO’s This will help avoid being asked for proof of funds since they are just emailing them to you.

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REAL ESTATE AGENTS REVIEW By getting your REO’s from agents you don’t spend any time looking for sellers OPT: other peoples time. No energy is spent on finding properties yourself. By allowing them to represent you, you increase their chance of getting more commission This will make them work harder for you, and they do most of the paper work. This allows you to make at least a 20% deduction in the offer REO rep at bank can accept 20% less without needing additional approval

TITLE AGENTS:

TITLE AGENTS hey work for title companies. Title companies insure that the title to the property is free of any liens Title agents have access to property profile information such as mortgage amount, last sold amount, title holders, mortgage payment, etc.

SELLERS:

SELLERS Take an outside-the-box approach to finding sellers www.fsbo.com Social media People who are looking for homes are potential sellers (sellers who are looking for a property)

MARKETING FOR SELLERS:

MARKETING FOR SELLERS - ZERO OVER HEAD APPROACH SHORT TERM MARKETING www.craigslist.org www.kijiji.com www.backpage.com

Step by Step Walk Through For Craig’s List:

Step by Step Walk Through For Craig’s List

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NOTICE CRAIGSLIST.ORG IS IN THE ADDRESS BAR AT THE TOP OF THE PAGE Click “Post to classifieds”

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On the next page, click Services Offered.

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NOTICE , there may be other sections you can post in for different results

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IF YOU CURRENTLY DO NOT HAVE A CRAIGS LIST ACCOUNT IT WILL ASK YOU TO SIGN IN OR CREATE AN ACCOUNT. THIS IS VERY EASY WE JUST NEED TO TAKE A FEW STEPS.

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Click “Click here to sign up”

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FILL IN “EMAIL ADDRESS” AND THEN TYPE THE WORDS THAT APPEAR FOR VERIFICATION

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AN EMAIL WILL BE SENT TO YOUR INBOX TO VERIFY. CHECK YOUR EMAIL AT THIS POINT.

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ONCE YOU HAVE ACCESSED YOUR EMAIL AND CLICKED ON THE LINK CRAIGSLIST SENDS, YOU WILL THEN BE ASKED TO CREATE A PASSWORD.

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YOU WILL BE ASKED TO READ AND ACCEPT TERMS AND CONDITIONS. ONCE READ, CLICK ACCEPT.

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CRAIGSLIST WILL HAVE YOU VERIFY ALSO BY SENDING A TEXT OR CALLING YOUR PHONE WITH A VERIFICATION CODE. THIS IS TO HELP STOP SPAMMERS.

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AFTER INPUTING YOU PHONE NUMBER, CHOOSE ENGLISH AND THEN VOICE OR SMS FOR TXT.

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ONCE YOU HAVE RECEIVED YOUR TEXT OR CALL, ENTER THAT CODE IN THE BOX ABOVE

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PICK A CITY NEAREST YOU TO PROCEED POSTING.

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THIS IS WHRE YOU CREATE THE POST OR AD THAT YOU WANT. IT WILL APPEAR ON CL FROM THIS POINT. CREATE A CAPTIVATING TITLE & CHOOSE A SPECIFIC LOCATION INDICATE WHETHER OR NOT YOU ARE LICENSED.

Walkthrough for www.kijiji.com:

Walkthrough for www.kijiji.com

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ENTER YOUR ZIPCODE.

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CLICK ON POST YOUR FREE AD

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ADD YOUR TITLE CREATE YOUR AD POST IN THIS TEXT BOX ENTER YOUR EMAIL ADDRESS

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CLICK POST TO PROCEED

www.Backpage.com Walkthrough:

www.Backpage.com Walkthrough

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CHOOSE THE CITY NEAREST YOU.

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CLICK ON “POST AD”.

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CLICK ON THE SERVICES TAB.

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CLICK ON “REAL ESTATE SERVICES”.

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THIS IS THE SECTION BELOW THE POST. SKIP ALL OF THIS AND CLICK “POST” ON THE BOTTOM LEFT HAND CORNER.

ANSWERING INBOUND CALLS:

ANSWERING INBOUND CALLS GET CONTACT INFO RIGHT AWAY, JUST INCASE YOU GET DISCONNECTED. RETRIEVING CONTACT INFO AT THE BEGINNING OF THE CALL ALSO SHOWS HOW SERIOUS THE CALLER IS. IF THEY DO NOT WANT TO GIVE YOU THEIR CONTACT INFO, AND JUST ASK A QUESTION. THE CALLER WAS NOT VERY SERIOUS. WHEN SELLERS CALL, ASK AS MANY QUESTIONS AS POSSIBLE. START WITH CONDITION OF PROPERTY, THEN WORK YOUR WAY TO SELLERS FINANCING

INBOUND QUICK TIPS:

INBOUND QUICK TIPS TAKE NOTES AS THE SELLER SPEAKS ABOUT THEIR CURRENT SITUATION. Let them talk as long as they want. This helps build rapport. Read back number and say the last digit wrong to see if they correct it. If not, it’s the wrong number.

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INBOUND CALLS FROM ADS DEAL: Hello, I am calling with regard to your ad about buyers for my home. YOU : Oh, yes of course. Before we continue, I’d like to get your contact info in case we get disconnected . What is your name and call back number please? DEAL: My name is JOE SMITH and my call back number is 555-555-5551. YOU: Great, thank you. So tell me: how I can assist you today ?

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INBOUND CALLS FROM ADS DEAL: (after they have explained) so what do you think? YOU : I can tell you exactly what I can do. I just need to get some information from you to better assess our options. DEAL: Sure, what kind of information? YOU: The first set of information I will need is about your home.

BASIC QUESTIONS TO ASK A SELLER:

BASIC QUESTIONS TO ASK A SELLER How much is the house? Will you do owner financing? Square footage? Where is it located? Is the price negotiable? Back yard front yard? What's the address? How long has it been for sale? HOA dues?

FAST ACCELERATED LEARNING AND SELF-TEACHING TIPS :

FAST ACCELERATED LEARNING AND SELF-TEACHING TIPS Call a few different mortgage companies Listen to what they say and how they say it Make notes on the types of questions they ask Mimic those same questions for your incoming calls (call a few different places)

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OUTBOUND SCRIPT I am calling with regard to the home that you have for sale. PAUSE FOR THE SELLER TO GIVE YOU THE SIGNAL TO GO AHEAD Can you please tell me a little more about your home? WAIT FOR THE SELLER TO FINISH AND TAKE NOTE OF WHAT THEY SAY

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OUTBOUND SCRIPT THEY WILL MOST LIKELY TALK ABOUT BEDS, BATHS, CONDITION OF HOME, AND LIST AMENITIES AND UPGRADES ( IF THEY HAVE ANY ) At this point, ask as many probing questions you want, but keep them focused and talking about their home. How much is the house? How much is the house? Square footage? Where is it located? What's the address? Back yard front yard? Is the price negotiable? How long has it been for sale? HOA dues?

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OUTBOUND SCRIPT The seller is not going to make their home sound crummy; they will always try and make it sound good. The next question is a “feeler”, so set up for information beyond the words. Your homes sounds nice. Why would you want to sell such a great home? WHAT WE ARE LOOKING FOR WITH THIS QUESTION IS THE LEVEL OF MOTIVATION. THE ABOVE QUESTION WILL HELP YOU DETERMINE THE REASON WHY THEY ARE SELLING. THE MORE DISTRESSED A SITUATION THEY ARE IN, THE MORE MOTAVITED THEY WILL BE . THIS LETS YOU KNOW HOW MUCH TIME AND ENGERY YOU SHOULD OR SHOULD NOT PUT INTO THIS SELLER.

WRAP-UP:

WRAP-UP My name is ______ and I work with 1 st time home buyers and buyers who used to own homes who are waiting for their loan approvals. Your introduction is made at the end; the phrase above tells the seller what you do and how you can benefit them. I help buyers find homes. I do not charge you, the seller; I make my money from the buyer. Would it be ok with you if I told them about your home? This statement of purpose tells the seller how you make money, and that you do not charge the seller. This is very exciting for the seller, because in real estate, sellers usually get charged. This method vastly improves your leverage.

WRAP-UP:

WRAP-UP Can you send an email with some pictures of your home please? You can use these pictures to show your buyers or post them online to start marketing to prospective buyers RIGHT AWAY. If the buyers want to come by to see the home, would it be ok if we stopped by? We will call ahead of course. This will segue for you to come to inspect the home and negotiate or even bring a buyer by who you might be working with.

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SUCCESS AD

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The key to a successful ad is to get the attention of the target market you are going after. Financing is the SECRET to getting buyers; the more financing options you have, the more buyers will contact you. Short, simple, and to the point ads are the key to maximizing your conversion rate.

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HAVE AN ATTENTION GRABBING HEADLINE. INCLUDE ONE SIMPLE, FRONT VIEW PHOTO.

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These are sample ads; notice there are financing options which is the key to attract buyers.

RENTERS = BUYERS:

RENTERS = BUYERS Most renters pay more or around the same per month as home owners do. Most renters have a false disposition that they cannot afford a home based on what they see on TV. The truth is it’s a buyers market, and it’s the very best buyers market: both home prices and rates are low! Market directly to the renters showing a diagram of what they pay vs. what a mortgage would be.

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HOME OWNER RENTERS 4 BED , 1 BATH HOME MORTGAGE, TAX, AND INSURANCE ( P.I.T.I)…….. 810 ________________________ TOTAL ……………………..$810 $810/mo TO OWN 4 BED , 1 BATH APPT RENT ……………………… 1,620 ________________________ TOTAL ……………………….1,620 $1,620 wasted on rent Save $810/mo to own FLYERS

QUICK TIP FOR RENTER MAKETING :

QUICK TIP FOR RENTER MAKETING CALL THE LEASING OFFICE OF THE APPT BUILDING YOU ARE GOING TO MARKET ASK HOW MUCH THE RENT WOULD BE FOR (X) AMOUNT OF BEDS AND BATH USE THAT INFO ON YOUR FLYER SO THAT THE NUMBERS REFLECT THE RENTERS TRUE PAYMENT

THE KEY TO YOUR FIRST FIVE MILLION:

THE KEY TO YOUR FIRST FIVE MILLION

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EQUITY PARTNER CREDIT PARTNER Most successful investors use these type of partners. There is VERY low to no risk for these partners. The best part is equity and credit partners are easy to find, you just need to stay persistent .

HOW EQUITY & CREDIT PARTNERS WORK:

HOW EQUITY & CREDIT PARTNERS WORK YOU. CREATE A LLC/LIVING TRUST WITH PARTNER. CREDIT PARTNER LIVING TRUST WILL PURCHASE REO AGENT REO PROPERTY REO PROPERTY PURCHASED WITH CREDIT PARTNER

HOW TO JOINT VENTURE EQUITY AND CREDIT PARTNERS:

HOW TO JOINT VENTURE EQUITY AND CREDIT PARTNERS Create an LLC or living trust You can simply create a joint venture contract in lieu of LLC/Living trust Create an M.O.U. Offer at least 50% to ensure your credit partner joint ventures with you

CLOSING OUT THE DEAL:

CLOSING OUT THE DEAL All documents are to be turned into title and escrow. Loan docs come from lender that they will send to escrow. Sales contract comes from the Real Estate agent.

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Reviews and processes both parties’ paper work Reviews and processes both parties’ paper work Wires monies once escrow is closed AWAITS CONFIRMATION FROM ESCROW GETS ALL PAPERWORK AND DEED PREP SENDS DOCS TO TITLE & ESCROW SEND ALL LOAN DOCS TO ESCROW RELEASES FUNDS TO ESCROW APPROVES BUYER FOR LOAN CLOSING OUT THE DEAL