Hungry Investors on Rampage!

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Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and/or believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

Rent To Own Exposed by Charles W. Moore

I just received this email from Charles W. Moore about the benefits of lease options.

Lease option tips benefit the seller and the buyer
in an equal manner. They help in creating a
finance required for the transaction of a home
deal. The lease option permits the tenant to buy
the concerned property within a time period of 12
to 24 months.

Lease options are a good source for purchasing
homes for the first timers of home buying who have
not qualified for the finance options. They give
the buyer's time for getting their finances in
shape for purchasing the property. The lease
options are also great marketing tools for the
sellers of properties for finding good buyers.

The sellers can place advertisements in the
newspapers, or contact the offices of Corporate
Relocation specialist for helping them find the
buyers of lease options. The mortgage bankers can
also help in this process. The internet can also
be useful for finding the buyers.

Benefits of the Lease Options:

There are various benefits for the buyers as well
as the sellers of the lease options. The lease
option tips for the buyers are listed below.

1.The tenants get the facility of paying a small
amount upfront for the house. This amount is
smaller than the normal down payments.
2.The possibility of a monthly credit rent helps
in generating the down payment, resulting in a
savings account for the buyers.
3.The buyers can enjoy the benefits of living in
the house that they dreamt of now instead of
renting an apartment and waiting to repair their
credit.

But, this convenience is not available without
costs. An option fee needs to be paid by the
buyers, in addition to any potential rent credits
and the monthly rent. The seller can keep this
money if the buyer is not able to work out the
option.

The lease option tips for the sellers are as
follows,

1.This option increases the monthly flow of cash
for the sellers.
2.This also helps in solidifying the cost of the
property before the selling date. This rate of
solidifying is good in the real estate market.
3.The lease option prompts the tenants in taking
care of the property, as they have the intention
of buying it in the future.
4.The sellers receive money upfront and can retain
it if the tenant fails to exercise the option.

Conclusion:

The contracts of the lease options are sometimes
very complex in nature. The tips of lease options
suggest that the language of the contract has to
focus on the contract terms, rather than the
price. The finding of buyers for the lease option,
demands a considerable amount of time investment
on part of the sellers.

But the lease option tips are an encouragement for
the sellers to investigate the markets thoroughly
for predicting the appreciation of the property's
value in the future. Hence, it is recommended that
the sellers invest time in forecasting the price
of selling along with the search for prospective
buyers of the lease option. Laws of the state have
also to be investigated for ensuring abidance with
the regulations for the mechanism of the lease
options.

Take care,

Charles W. Moore
http://www.Rent2OwnExposed.com

Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and/or believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”

Triple Your Income in the Next 12 Months by Ron LeGrand

We all have choices in life. We can spend our lives making a living or we can choose to make some real money. Unfortunately, most people choose to make a living. They don't take time and spend their lives walking over the dollars to get to the dimes. Most real estate investors are no different.

Oh sure, you've decided to either increase your income on a part-time basis or you've quit your job and taken the full-time plunge. So what! All that means is you've decided to take control of your own financial future and make things happen. I'm proud of you if you have made that choice.

But wait! Before you pat yourself on the back and your head swells up like a basketball, answer this question:

Are you running your business with blinders on?

I mean are you so narrowly focused on one little piece of the business that you're letting the real money fly right on by? Most people get started in real estate and learn one or two ways to make money. Then they spend ten or twenty years doing the same stupid things over and over.

Oh sure, most make good money and others do exceptionally well. But what saddens me the most is, in all my years of training in this business, I've only seen a handful of sharp entrepreneurs really grasp the big picture. Most are so content making a good living that they miss the most profitable part of the business.

Let's look at the big picture and what you can do to triple your income in the next twelve months.

Four ways to profit

There are four basic ways to profit as an investor. The way to make the most money the fastest is to use all four. Don't get so narrowly focused on one that you miss out on the real money.

The BIG four:

Wholesaling

Retailing

Lease Options

Creating No-Qualifying Financing

Of course, these ways have several offspring and variations, but these are the big four (assuming you're not holding for the long term). Even if you are, your exit strategy will fall into one of the big four unless you exchange or die.

Wholesaling

Wholesaling is finding bargains and quickly passing them on to bargain hunters. The house usually needs to be rehabbed and the buyer is willing to do the rehab. The buyer then retails to the consumer or lives in it.

The plan is to find the bargain, tie it up with a purchase contract, then quickly sell. The profit comes from doing a simultaneous closing with the buyer who brings to the closing a few thousand dollars more than you agreed to pay the seller. Many of my students do nothing but wholesaling a few hours per week and earn more than their full time jobs.

Retailing

Retailing is getting these same houses fixed up and sold to owner/occupants through new financing. Most beginners look at investing through this window. Conventional wisdom says the way to make money is to either buy, fix, and resell or to keep and rent.

If you've ever heard me speak, you know how I feel about conventional wisdom. It's almost always wrong. However, in this case I agree, there is real money in retailing and renting.

But you see, here is something you'll never learn from conventional wisdom that can only come from a battle-scarred warrior who's learned the hard way. This one lesson alone could make the difference between success and failure.

Do not do any repairs or become a long-term landlord your first year in business.

How does that stack up to conventional wisdom? You've been told by all your real estate courses and investor buddies that the best thing to do is rush out and buy a rental property or a fixer-upper. You know what? Even though that's the last thing I want you to do, I'd still prefer it to doing nothing.

However, before you do, let me briefly make my case and see if you agree with me. First, let's look at why you want to do either. Your reason for buying and selling a fixer-upper is to make some cash within the next few months. If that's your objective, why on earth would you want to begin with the hardest way?

And believe me, it is. Retailing is a lot of work and takes time. A lot can go wrong, especially for a beginner. You have to buy the house, raise the money, hire a contractor, and then the hard part--find a qualified buyer. If you attempt this without the proper training, I assure you you'll get those battle scars I mentioned earlier.

What's my problem with rental property in the first year? The answer is simple: you're not ready yet. The only real reason to own rental property is to build wealth. The real money is in the equity. But what's your rush? The first lesson I learned in my early days was:

Take care of today's cash flow needs before worrying about getting rich.

Let's get the bills paid and get out of debt before we start building an empire. "I'll create a cash flow I can live on in my early days as a landlord." If you think this is the case, take a current landlord to lunch and ask him/her where all the money goes from rentals. You won't like the answer.

I suggest you wait. Learn the ropes before you take an ugly seminar. Give yourself a year to learn which components make a good "keeper." Find out how and where to buy properly. Get a feel for the business. If you don't, your education will come from all those investors who bought incorrectly and are trying to sell you their stupid mistakes.

You'll learn the ropes all right. Unfortunately, one might be tightening around your neck. This lesson holds true whether you retail a house or rent it. Both are good reasons for getting in the business, but neither is a good place to start.

Back to the big picture. I would like to see you in the business, not just the junker or rental side. You must expand your horizons; take off the blinders. There's more to life than cheap, ugly houses.

Lease options

Lease options deal with pretty houses in lovely neighborhoods in all price ranges. They have nothing to do with contractors, raising money, and taking big risks. They're fast, relatively easy, and produce just as much money, or more, as retailing houses. Most investors let these go by because junkers are all they can see.

No-qualifying financing

Another solution is creating no-qualifying financing. Between these two you can literally do many times the deals you're currently doing and probably not need to generate any more leads.

Most of your income should come from pretty houses

The big money is in the art of creating Multiple Offer Strategies, not fixing houses. That's why you're shooting yourself in the foot every time you let a potential pretty house deal go by because you never learned how to capitalize on it.

Your job is to take information you get from the seller and create as many solutions as possible to solve his/her problems and create a profit center for you.

When you do this, you'll be in the top 1/2% of those who qualify as "transaction engineers." In the process you'll eliminate your competition. In fact, you could easily make 250,000 per year from their leftovers.

So, get out of the box and see yourself as an entrepreneur who truly understands the business, not just a rehabber or a landlord. I don't care how hard you work at the wholesale and retail business, you can never reach your full potential. You must expand your horizons to learn and practice the pretty side--the profitable side.

You won't get rich with junkers

No matter how good you get with junkers, you'll never make more than 30% of your potential. There are three reasons.

The junker business revolves around low-price properties, while the pretty house business has no upper price cap. In fact, I prefer the higher prices. It just stands to reason when you deal in bigger dollars, more of them will be left over for you.

When you get paid from wholesaling or retailing, you get one check and you're out. Not true for lease options and no-qualifying financing deals. They create multiple streams of income that keep coming in, whether you're still out there working or not. You do the job once and get paid over and over.

There are more pretty houses than ugly ones.

Obviously, the part of the market that provides the biggest supply of houses warrants the most attention. When you learn to capitalize on the big supply, not just the uglies, your income will skyrocket.

Yes, I know it sounds like I have something against the junker business. But that's not true. I love to make something pretty from something ugly. I began and prospered in junkers and still work them to this day. But I grew up...

Taking off the blinders

Several years ago I discovered the rest of the story and took off my blinders. I'm only suggesting you do the same. It's just a marginal shift from what you may be doing now.

If all you want is a good income and you're happy in your comfort zone, then please don't let me disturb you. I'll allow you to settle with whatever failure rate you want. It's your life, your family, and the income you're willing to accept. At least you have the freedom of running your own business and you're the boss, right?

What the heck, you're making more than you did in your old job. When you get out of bed in the morning you're already at the office. No traffic hassles, no time clocks and no lay-offs. Look, you can convince yourself you're doing great. Maybe even your family and friends are fooled, but not this old war horse.

I have too many students making too much money to accept anything less. If you're not growing, you're dying. Is it time to get to the next level and start treating this as the extremely profitable business it is? If you've been dealing in junkers for a while, the answer is yes. Become a transaction engineer now buy investing in my Cash Flow Home study System At:

It may take a while to learn the business, but it's worth it. 

---

Ron LeGrand had to borrow money to attend his first real estate seminar twenty years ago when he was bankrupt and running a gas station. Today, he is recognized as the nation’s leading authority on buying and selling single-family homes for fast cash with no credit, little or no personal investment or risk. Ron has personally bought over 1500 houses and still invests in real estate. 

Author, trainer, lecturer, consultant and entrepreneur extraordinaire, Ron has earned a reputation as the best in his field. His one-day workshops are routinely standing-room-only and his Boot Camps continue to grow in popularity. Ron’s secret is simple: his programs work -- as evidenced by the thousands of successful real estate entrepreneurs all across North America who call him by the affectionate title, “The Guru”. Ron is literally creating millionaires all over North America.

Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and/or believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
 

Magic Words That Make Millions by Ron LeGrand

I've just finished reading (for the second time) a book called Magic Words That Bring You Riches, authored by my good friend Ted Nicholas, a member of our Board of Directors. Ted has sold over 200 million dollars worth of information products worldwide by direct marketing. Over the years he put together a collection of Magic Words to get people to do things they ordinarily wouldn't do.

In Magic Words, Ted discusses how to do such things as get the best table in a restaurant and first class seats on airplanes. He talks about how to slash the cost of a room at first class hotels and attract all the money you need for any business venture. Want to approach a member of the opposite sex and immediately gain interest? How about renting a Mercedes for the price of a Ford or buying jewelry at below wholesale prices?

Ted can tell you how to attract the best employees to make your business prosper, as well as how to get capable people to work for free. He even discusses ways to gain financial interests in other people's companies without investing one red cent. Pretty cool stuff, huh? And that's just the first few chapters. This book is also a masterful direct marketing bible covering every aspect of the business by a consummate professional. Like I said, I read it twice.

Then it hit me! Like Ted, I've got a collection of magic words I've accumulated over the years. Most are designed to help me get into or out of a real estate deal. All of them work.

The words you are about to read have made me millions of dollars and, if used properly, could do the same for you. The truth is, students have been trying to get me to do this for years, but it was Ted Nicholas book that pulled the trigger. Incidentally, this one issue of the Mentor could easily justify your cost for the next ten years.

Okay, here goes. Here's a set of magic words you should know by now and use daily:

"If I pay you all cash and close quickly, what's the least you would accept??

and that's always followed by:

"Is that the best you can do?"

If you're not using these words to get to the bottom line quickly, you're making a mistake, not to mention wasting valuable time. These words cut to the chase and save you a lot of time otherwise spent beating around the bush. Of course, if you're naming the price you'll pay before you ask what the seller wants, I'll have to take you out behind the woodshed . . .

Ye who speak first have big mouth & will pay handsome price for house.

Those words aren't exactly magic, but they speak the truth nonetheless. Never, never name the price you'll pay or the down payment or monthly payment you'll pay or accept when selling.

Okay, lets say you've asked 'Is that the best you can do,' and the seller says yes. A good follow-up line that works for me is . . .

"So you're saying if I don't give you $_____, you won't sell the house?"

Now if the answer is still yes, you won't be buying today unless you're willing to change the focus to a terms deal rather than a price deal.

A good icebreaker to use when you want to make it clear that you're not happy with the number you've been quoted is . . .

'What's your second choice?'

I usually chuckle or use a hint of humor when I ask this. It's better than simply saying I won't pay the asking price.

Let's say you're trying to get a seller to name the asking price and they won't. You know better than to pressure them, but you just can't get them to break. Try this . . .

"How about a dollar?"

This will get through to them and probably produce an answer. If so, you're back in the screening process and you know where you stand. If not, you can come back with . . .

"I simply have too many prospects to work with to waste time on those I can't buy. If you'll tell me what you're asking, I'll know quickly if we can do business. Is that fair?"

By this time, they're usually in or out. You can't buy houses from uncooperative sellers. By the way, did you notice some powerful magic words hidden in there? Take note of how I tend to answer a question with a question. 'Is that fair?' turned my response into a question and put the responsibility to answer back on the seller. It also softened the blow and made me seem more warm and fuzzy. 'Is that fair?' is a powerful set of magic words that should become a part of your everyday vocabulary with almost everything you negotiate.

Let's say you're pre-screening a seller who has a house with a mortgage balance. First, you want to know what's owed on the property or you can't possibly determine whether it's a deal or not. These aren't magic words, but are critical ones:

"What do you owe on the house?"

What if they say it's none of your business? You say . . .

"I buy ____ houses per year and use many different methods. I'm probably the most serious buyer you've talked to yet. However, I'll need the facts to be able to present you with an intelligent offer. Will this be a problem for you?"

Again, a question in an answers clothing. Did I not sock it to them on that one?

Frankly, anyone who won't give you the facts is not ready to sell yet. You got your answer . . . move on. You can't make un-motivated sellers motivated.

Now you have your answer. You know the loan balance. Now it's time to find out where you're headed with this deal, so ask . . .

"Will you sell the house for what you owe on it?"

Those magic words can make you $500,000 per year if you ask them on all your deals. With just those twelve little words, you'll instantly know whether you'll be getting a free house by taking over the debt or an almost-free house with debt plus a little cash thrown in. Of course, you may also learn that the seller wants full price and is not flexible. Again, you found out what you needed to know with twelve words. Now you know whether to proceed with the deal or move on.

Now let's say you can't get a deed because of the due on sale clause or the seller won't trust you with their credit. But you see opportunity there and a lease /option makes sense. Here's the opening line to present the offer . . .

"I will lease your house with the right to buy it for the loan balance when I purchase. I'll guarantee your payment and maintenance until the loan is paid off and the house is out of your life. How does that sound?"

Notice how all the benefits come before the question. The seller has enough information to encourage a positive response. Isn't that better than will you lease/option your home to me?? Another good question that will ease the seller's mind and make you seem genuine is . . .

"If it doesn't work for both of us, then we don't want to do it, do we?"

That makes it pretty clear that you're not desperate to make the deal. Another version is . . .

"If this will cause you to lose sleep at night, I'd rather not do it. Is it going to be a problem?"

Here's a good one to break a stalemate and get you back in negotiation as well as collect more facts that might lead to different offers . . .

"If you and I can't do business today, what will you do with the house?"

This also gets the seller thinking, particularly about all the ugly answers to that question. Their answer may be, 'I'll put it on the market or list with a Realtor until it sells.' Your response . . .

"And what if it doesn't sell?"

At least you'll get a feel for whether this seller is worthy of your follow-up list. I hope you know by now that . . .

"All seller's minds will change with time and circumstance"

Here's one you'll love if you're a beginner and worried about the seller finding out that you don't exactly know what you're doing. First, don't sweat it. You don't have to appear to be an expert. You can try to fake it, but if you're confronting an intelligent seller, many times they'll see through you and try to ask you embarrassing questions. So if you're asked if you've ever done this before, use these words . . .

"Well actually, no. This is my first deal after graduating from some rather intense training. I was hoping you'd help me do it right, OK?"

Asking for help brings you down to the seller's skill level and you've built trust by answering truthfully. Don't worry about the seller expecting you to be an expert. If you seem sincere and excited, you'll usually get the deal. In fact, being too smart or seeming too confidant will often turn off more people than if you appear to be a novice. They'll think you're too green to cheat them.

Now let's say you're talking to a seller about carrying a mortgage and the subject of interest comes up. Your goal is zero interest, so you shouldn't be the one to initiate conversation on this topic. If the seller doesn't mention interest, you shouldn't, either.

When presenting an installment offer, the magic words are . . .

"I'll pay $____ per month until you're paid in full."

Of course, this means you've divided the loan amount by the monthly principal payment you want to pay, excluding interest. If the seller comes back with ?what interest rate is that?? Your response is . . .

"Why do you need interest?"

Then if you get more argument and it becomes a sticking issue, you could respond by saying . . .

"What's more important, your interest or getting the house sold now?"

If that doesn't get the job done, say . . .

"If I give you interest, how much can we lower the price?"

Or . . .

"Will you sell to me with no down payment?"

Or . . .

"Would you wait six months(or a year) for your first payment?"

Or . . .

"Would you take 25% off the balance I owe you if I agree to pay you off within _____ years?"

Of course, these same tactics can be used if the seller is asking you to raise your offer. You'll notice it all comes down to some very powerful magic words that can be adapted to many uses (If I . . . , Would you . . .). How about when you're raising private money and approaching potential lenders? Here's my icebreaker that hasn't changed one whit in 16 years . . .

"Do you have an IRA or any other investment capital that's not getting you a 15% return safely?"

These magic words will get you all the money you need assuming you ask at least some people who have money to invest.

Now let's look at the selling side and discuss a few choice words I use to find good buyers. When wholesaling, I want to know my buyer will come to closing with the money and isn't simply trying to jerk my chain. In this case, the magic words are . . .

"When do you want to close?"

If they need more than ten days, they're a time waster and I'm at risk. If they say "ASAP", I know they're serious.

There are so many magic words to use when pre-screening buyers, it's easier to simply use the whole script because these words are all magic. I can't tell you how many hundreds, maybe thousands of buyers (idiots) I talked to before I developed the words and the order in which I use them. Here we go . .

"Do you want to buy or rent?"

If the answer is rent and you want to sell, the rest is worthless conversation. But before giving up, use one more line . . .

"If I can show you how to buy and get you financed, would you rather own than rent?"

If yes, continue. If no, save your breath. Next . . .

"Have you ever tried to buy before?"

"Yes."

"What stopped you?"

This lets you know immediately what you're dealing with.

"Is your credit good, fair or poor?"

Don't ask how's your credit.' Some people are ashamed to tell you it's ugly and will simply lie. Give them a multiple-choice question so they know you won't be shocked if they have poor credit. If it's bad . . .

"What's on it a bank wouldn't like?"

This breaks the ice and gets the customer to open up.

Now the big question . . .

"How much money can you raise for a down payment?"

Whatever the answer . . .

"Can you get any more?"

"Can you borrow from relatives?"

"Do you have credit cards?"

"Do you have something you could sell or trade to me?"

"Can you repair houses or have other skills to earn more?"

"Are you willing to rob a bank to raise cash?"

Oops! Got a little carried away on that last question. It might not be appropriate.

Now let's assume you see someone you can work with and you want them to get excited and realize that you are their solution to home ownership. Here are the words that will glue them to you . . .

"If you can convince me you want the house and make a commitment to buy, I'll get you financed one way or another. Even if I have to be the bank. If I can't get you in a home of your own, no one in this city can."

These words have sold a lot of real estate for me. They really make an impact on your buyer's level of hope. Follow them up with assurance that you are easy to work with and very flexible and the prospect will be putty in your hands.

"We can do whatever you and I agree. I own the house and I'll do what it takes if you will. Is that fair?"

Well that ought to be enough magic to keep you practicing awhile. Of course, these words aren't really magical until you begin to actually use them and make them work.

---

Ron LeGrand had to borrow money to attend his first real estate seminar twenty years ago when he was bankrupt and running a gas station. Today, he is recognized as the nation’s leading authority on buying and selling single-family homes for fast cash with no credit, little or no personal investment or risk. Ron has personally bought over 1500 houses and still invests in real estate. 

Author, trainer, lecturer, consultant and entrepreneur extraordinaire, Ron has earned a reputation as the best in his field. His one-day workshops are routinely standing-room-only and his Boot Camps continue to grow in popularity. Ron’s secret is simple: his programs work -- as evidenced by the thousands of successful real estate entrepreneurs all across North America who call him by the affectionate title, “The Guru”. Ron is literally creating millionaires all over North America.

 

Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and/or believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.” 

It Takes Money To Make Money, And Other.....Big Lies! by Ron LeGrand

Whoever said it takes money to make money was someone trying to justify why they're broke. It does not take money to make money, and I'll prove it. I'll give you a step by step plan to buy and sell a house, even if you're absolutely broke, have a negative net worth, no job, no friends, no credit and just got pardoned from the state prison. The truth is, if you can't make money without money, you can't make money with money! When I started in 1982, I had no money or credit. I was broke. I had no credit cards, no rich relatives, not even a wife working to support me. I was lying in the gutter looking up at the curb. I'd quit my job and burned the ships behind me. The only way out was to make it, or get another job. I had a mortgage and bills just like everyone else, yet somehow I made it happen. I succeeded in spite of the odds stacked against me.

You wanna know why? I'll tell ya why! I succeeded because I had no money or credit! Believe it or not, having money and credit when you begin your career as a real estate entrepreneur can do you more harm than good. It can ruin you if you're not careful. Having no money keeps you focused on doing the deals that don't require money. If your credit sucks, like mine did, you can't apply for bank loans. Therefore, you have inadvertently avoided the two biggest mine fields. Not because you were so smart, but because you had no choice.

Whether you have money or not, you should learn to leverage your brain, not your wallet. When you do that, having money becomes a non-issue because you don't need it to buy houses. If you write big checks, you're always worried about losing those checks. If you guarantee loans, you risk everything you own. Do neither, and you eliminate your risk. I bet I've said those words a thousand times, and I still see people who should know better doing it anyway.

Don't get me wrong, I'm not saying you shouldn't have money. I'd actually prefer you to be filthy, stinking rich! I'm just saying you'll get there a lot quicker if buying houses doesn't depend on your capital or the number of loans you can borrow. Because if it does, you're a slave to your limited resources and your business will move at a snail's pace.

How many loans can you get before you get cut off? Only a handful! Then what? How many deals can you buy if you have to write a check for each? You get the drift. On the other hand, how many loans can you take subject to before you get cut off? That's right, there is no limit! And no one's counting, because it's endless. You can buy 500 houses and never ask permission or fill out an application to submit to a brainless loan officer.

The loans are not on your credit, and you aren't personally liable. If disaster strikes before the loans are paid off, like a deep recession, it's now the banks problem, and not yours. If you're new and I lost you there, subject to simply means the loan stays in the sellers name, but title transfers to you. You can learn more about this from the For Sale by Owner Cash Flow System and the Multiple Offer Strategies Boot Camp.

If you're buying junkers to rehab, how many private loans can you get before you get cut off? All you want! You should always come away from closing with more than you need to buy and fix the house. So having enough money to buy a junker isn't a problem. The problem is lining up your lender or mortgage broker to get you the money, which you can do in a coma once you make up your mind to get it done and quit using money as an excuse to fail.

"But Ron, I can't find any private lenders or mortgage brokers that will work with me!"

Whine, whine, whine. Well here's my response to that: bull! What you really mean is no one has come to you and begged you to take their money, so it gives you an excuse to be a lazy loser. Have you ever asked for money? How many times? What did you say? Who did you ask? Were they broke? Have you looked for brokers? If I put a pistol in your ear and gave you ten days to find a private lender or get exterminated, would you find the money?

Okay, forget private money and forget rehabs. How much money do you need to wholesale a house? You guessed it: nada! Well, maybe a $10 deposit to the seller. Can you raise that all by yourself? How much do you need to lease option a house and then sublease it to a tenant/buyer? You know the answer: none!

So let's recap for a minute. Taking over loans subject to on pretty houses usually requires no money from you, or, at most, a small amount. Yet you can immediately lease option the house or sell with owner financing and pick up $5,000, $10,000, $20,000 or more from a deposit or down payment, all within a few days.

You can also buy junkers and rehab them using private loans. Getting cash when you buy and sell, never spending a dime of your own money. You can also lease option pretty houses from the seller and sublease to tenant/buyer, picking up deposits in the thousands within days and huge back-end checks when they cash out.

Wait, I'm not finished! Don't forget about the bargains! Flip them to bargain hunters and make $5,000, $10,000 or more and never own the house. All of this with none of your own money or credit.

So I ask you, what's all this crap about how you can't get started or get moving because you don't have the money? I think I made it very clear, money is not your problem.

Since I don't know you, I don't know what's stopping you, but I'll tell you what stops a lot of folks...grit, or the lack of it! No guts. Afraid of their own shadow. Going through life avoiding confrontation or pain. Can't grow because they won't go. You wanna know who seems to do the best in this business? The people without money or credit, but lots of grit. And how do you get grit? It's simple. You first suffer adversity and get beat up and kicked around awhile. Then one day you wake up and realize they canÕt hurt you anymore and there's only one way to go...up.

When you quit worrying about losing, you can start thinking about winning. You see, people with grit have learned to quit playing not to lose and begin playing to win. Does this mean you don't have grit if you haven't been to the bottom? Of course not. Adversity is not a requirement for grit. It just seems those who are the bloodiest seem to be more fired up and move quicker, with more passion. They've seen the black hole and they don't want to go back.

It's quite common for those who begin with money to leap before they look and spend money on stuff that doesn't produce revenue. Stuff like office furniture, computers, electronics and foolish advertising that wastes money. A smart entrepreneur will put their money in the bank and start their business on a shoestring. All the fancy stuff doesn't put a dime in the bank. In order to do that, you must make offers, and you should be making them without using your money or your credit.

Here's a simple plan to do your first junker deal from your home using no start up capital (eliminating the risk). When you get that first check you can use some of it to get the things you'd like to buy to help you grow the business. This plan applies to you whether you're dead broke and bankrupt or loaded with dough and can't wait to spend it.

1. Ride around and find 20 ugly, vacant houses. Copy down each address and get a photo. You'll find them in the lower priced areas. Here's a tip: you won't find junkers in gated communities!
2. Call the houses with FSBO signs and see if you can buy them at a wholesale price of 50 to 60% of the after repaired value or less. Be sure to let the seller name the price first. "He who speaks first have big foot in mouth." Call the Realtors on listed properties and get the facts. Make an offer if it makes sense. These will not be your best deals in today's market and they'll require bigger deposits, but can still be worthwhile. Track down the owners of the houses with no sign and call or visit them to make a deal. These will be the best deals, but require more work.
3. Persist with step two until you get a signed contract on an ugly house that excites you. This step is crucial and you must keep charging until it's done. If you're broke, it should take about a week. If you're loaded, it could take a year.
4. Have the title checked by ordering a title search from a title company. When you learn it's clear, move to step five. If it's not clear, go back to step one or two.
5. If it's clear, run an ad for three days in your paper that says "Handyman Special, Cash, Cheap, 555-5555." Put it in the investment property section.
6. Take the calls, tell them you're asking price (which should be at least $5,000 more than you're paying) and send them to the property. Build a buyers list in the process.
7. Meet the first person who wants the house at your price and get a $500 deposit and a signed agreement assuring they're ready to close within two weeks.
8. Set up a closing date with the title company and let them do a simultaneous closing. Pick up a check and celebrate. You also may simply assign your contract and get paid directly from your buyer.
9. Do it again.

That's it! Your first wholesale deal. Do you have questions? Of course. So what! Just go do it and use your best judgment. Will it go much smoother if you get trained first and are schooled on each step? Yes, it will. No question. But hey, you said you were broke and couldn't afford training. So just go make a mess and blunder your way through until you get a check. Then get the training as soon as you get paid.

By the way, I've had people do deals from just reading my book, others from attending my one day workshop, and still others from listening to just one tape they borrowed from someone. These are my kind of people. People who just do it and don't listen to dream stealers and broke morons. People who don't let any S.O.B. tell them they can't because they don't have any money or credit. People with grit.

See Ya - The Guru

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Ron LeGrand had to borrow money to attend his first real estate seminar twenty years ago when he was bankrupt and running a gas station. Today, he is recognized as the nation’s leading authority on buying and selling single-family homes for fast cash with no credit, little or no personal investment or risk. Ron has personally bought over 1500 houses and still invests in real estate. 

Author, trainer, lecturer, consultant and entrepreneur extraordinaire, Ron has earned a reputation as the best in his field. His one-day workshops are routinely standing-room-only and his Boot Camps continue to grow in popularity. Ron’s secret is simple: his programs work -- as evidenced by the thousands of successful real estate entrepreneurs all across North America who call him by the affectionate title, “The Guru”. Ron is literally creating millionaires all over North America.

Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and/or believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
 

Deadly Mistakes You Can Avoid by Ron LeGrand

Is there a magic formula for success? I wish I could tell you there was. It could have saved me a whole lot of headaches over the years. And having the copyright on that formula would have made me an awful lot of money. Unfortunately, there's no more magic in being successful than there is in anything else worthwhile in life.

1. Lack of focus. I define focus as concentrating only on the work you must do to succeed in your business, avoiding all distractions and not getting side-tracked by every "great idea" that pops up.

2. Getting into the rental business before your cash-flow needs are met. Boy, did I ever get tangled up in this one. When I first got started with real estate, I decided to buy all the rental property I could. I figured with a lot of tenants in a lot of houses, the cash would just fall into my lap every month, right?

Wrong. It was the biggest single mistake I made for a very simple reason - I just wasn't ready. Like yours truly, many beginning real estate investors get into the rental business because they think it's some kind of quick path to wealth. But it's not. It's slow and long-term. Don't get me wrong, I've got nothing against rental property as an investment. I'll probably have them until the day I die. However, if you don't have a cash cushion built up, you'd better get really good at buying properties dirt cheap. But even when you do, you'll discover a million ways to spend down your cash flow.

Bottom line, my advice is this: Make some fast cash by quick-turning a few houses before you get yourself mired down with rentals. Get into some low risk, high-return deals before you start piling up equity and dealing with tenants. Then, when you do become a "Super Landlord," your chances of retiring on your rental income will be much better.

3. Listening to poor advice. This is something you probably already know. As you go through life, there will never be a shortage of people who want to give you advice. Your parents, your spouse, friends, in-laws, kids, they all have opinions about what you're doing and what they think you should be doing. Very often, the value of their advice is worth exactly what you paid for it . . . nothing!

So, who should you be listening to? I believe in taking advice only from people who are:

1. Qualified experts in their field and

2. Making a whole lot more money than I am.

4. Listening to negative thinkers and "Dead Heads." Nothing kills the entrepreneurial spirit like negativity. With all the challenges you face in business, you need to keep a positive, upbeat, enthusiastic attitude about what you're doing’

5. Lack of action. Movement, action, activity, progress . . . they're essential in any successful business. Without activity on your part, nothing positive will happen for you. It starts with that first call, that first conversation with a seller, even the first visit to a Realtor. But your ship can't come in if it never gets launched.

6. Wasting time with un-motivated sellers. They may be interesting. They may be wonderful people. They may have heartbreaking stories to tell. But if they're not motivated to accept your offers, they're wasting your precious time and sucking dollars out of your pocket. If you waste enough of your time waltzing around with people who aren't serious about doing business, then you're not going to be in business for very long. It's just that simple.

7. Chasing dead-end leads. Chasing dead end leads is very similar to dealing with unmotivated sellers and can be a tremendous waste of time and energy. Unfortunately, many people never really learn how to avoid it. Well I can solve this problem very simply. Pre-qualify every prospect that comes your way.

Properly pre-qualifying a prospect will help you to determine if further action is warranted. When making the initial contact with a prospect, you should ask yourself three questions to determine whether you can make a deal:

1. Can I buy the house wholesale?

2. Can I create a subject- to deal or seller financing or both?

3. Can I option the house?

If the situation doesn't fit one of these three models, you don't have a deal. It's that simple. There is no reason for you to waste any further time on the conversation, much less traveling across town to look at a house you'll never own.

To Find Out More Information …CLICK HERE

Ron LeGrand had to borrow money to attend his first real estate seminar twenty years ago when he was bankrupt and running a gas station. Today, he is recognized as the nation's leading authority on buying and selling single-family homes for fast cash with no credit, little or no personal investment or risk. Ron has personally bought over 1500 houses and still invests in real estate.

Author, trainer, lecturer, consultant and entrepreneur extraordinaire, Ron has earned a reputation as the best in his field. His one-day workshops are routinely standing-room-only and his Boot Camps continue to grow in popularity. Ron's secret is simple: his programs work -- as evidenced by the thousands of successful real estate entrepreneurs all across North America who call him by the affectionate title, "The Guru". Ron is literally creating millionaires all over North America.

Learn More About Ron LeGrand CLICK HERE

NOTE: You may reprint/reuse this article as long as the article and author box remains unchanged and intact.

Disclosure of Material Connection: Some of the links in the post above are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and/or believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”