Why You Have Not Made A Dime Investing In Real Estate Investing & What You Need To Do If You Want To

May 2, 2008

Ok, so you haven’t made a dime in Real Estate yet right? You want to be a Real Estate Investing Millionaire, but for some reason you can’t seem to find good deals on houses. Well, I can tell you what your problem is.

You are doing all of the things that don’t make you money in real estate! Going around with a Realtor, looking on the web, driving around nice neighborhoods looking for For Sale signs, telling a few people that you Buy Houses….it’s a major waste of time.

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That’s just keeping yourself busy! Do you want to “PLAY REAL ESTATE” or do you want to be a “Real Deal” Real Estate Investor? If you don’t want to do what it takes, do yourself a favor and go down to Toys R’ Us pick up a game of Monopoly and call it a day. If you’re more interested in the latter, then you need to listen up! Spend that time knocking on the doors of homeowners in foreclosure. Quit doing all of the “Safe” things like meeting with Realtors. That’s why they’re safe, because you’re not going to make any money. If you don’t put yourself out there…YOU’LL NEVER GET A DEAL!

What you’re doing is looking for deals on houses & not looking for people that need their problems solved. No one sells their house at a serious discount unless they HAVE TO! Would you sell your house to me for 50 cents on the dollar because I’m a nice guy? Of course not, you worked hard for your home and you don’t HAVE TO. But if you had lost your job, were 30 days from losing your home, and I showed you how I could put immediate cash in your pocket, wouldn’t you consider it?

As investors we buy houses from people that NEED TO SELL, NOT PEOPLE THAT WANT TO SELL. When you’re dealing with a Realtor, 9 times out of 10 they’re going to show you nice houses, owned by people that are in no urgent rush to sell. I hardly ever deal with Realtors. I’m not saying to completely alienate yourself from them. That would be foolish. Simply network with them, and let them know that if a killer deal comes along, you can close with cash quickly. Explain what you’re looking for and that’s when they will call you. I wouldn’t go around looking at houses with them. Most Realtors are not trained to look for the types of deals that we’re looking for. Actually, they’ll probably tell you that it’s NOT POSSIBLE to find the kinds of deals that we do.

There’s a few things that you need to be looking for..THESE are the things that will lead you to the good deals that you’re looking for:
1. Divorce
2. Imprisonment or Court Costs
3. Loss of Job – Foreclosures
4. Bankruptcy
5. Death
6. Job Transfer
7. Bad Tenants – Contact Landlords who have filed evictions

Most of these types of people can be searched by looking through the public information on your local courthouse records. Depending on your location, most of the time these are available online. Situations like Loss Of Job would be discovered by looking through the foreclosures and knocking on their door. You need to focus your attention on people with these types of situations.

These people usually have serious issues that need to be solved. They at one time had the cash to pay for their mortgage and the expenses associated with it. Now due to circumstances beyond their control, things have been thrown out of whack and they need someone to get everything reorganized for them. That’s your job…Solve their problem and you’ll get a good deal.

Sign Up To Receive Rich Urban’s Free Real Estate Investing Course at: http://www.youngrealestateinvesting.com/freecoaching
You want know the REAL TRUTH about making money in Real Estate that everyone else is too scared to reveal you? Are you sick of all the B.S., hype, lies and scams out there?

Get your free course now — Make Sure That You Enter Your Name & Email at:
http://www.youngrealestateinvesting.com/freecoaching


How A Homeless Bag Lady Can Jump Start Her Real Estate Investing Career

May 2, 2008

Upon looking at the Real Estate Investing message boards, I’ve come to find a very common question that seems to resurface over and over again. “I have No Money and I have horrible credit. Can I still invest In Real Estate?”

I want to answer this question once and for all, so I thought about it from the perspective of having absolutely nothing. What would I do if I was homeless and had zero resources?

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Well, life is much easier if you have one of the two, but it’s not a necessity. With great credit you could write a check against a credit line and buy houses immediately.

Obviously, you’d be in an even better situation with pure cash. Still yet, all is not lost if you lack both Cash and Credit. You will merely need to use the following strategies until you can increase either your cash supply or build up your credit:

1. Wholesale properties – Locate great deals, put them under contract and sell the contract to an investor with cash or great credit. If you do a few of these you’ll be buying houses for cash in no time. Expect to make from $10,000 – $20,000 per flip depending upon the equity spread. **THIS IS THE BEST SCENARIO FOR A NEWBIE WITH NO MONEY

2. Go through a Hard Money Lender (you can find them at a local real estate investing club) and rehab the property and sell retail. Hard money lenders will usually lend up to 70% of the After Repaired Value and base their decision on the property values not your credit. Hard Money Lenders are usually real estate investors that have amassed a ton of capital and need to make an easy return on their money. Keep in mind, you’ll pay for the nose for a hard money loan and I wouldn’t use them for anything that I was planning on holding for more than 3 – 4 months total. Like I said, they’re expensive but if lack of funds is what’s standing in the way of a nice profit, it’s well worth it. What’s the cost of NOT doing the deal?

3. Purchase the property Subject to the existing financing with a promise to pay the owner’s portion of the proceeds in 90 – 120 days.

Example: Owner owes $50,000 and you agree to purchase the house for $62,000. You have the owner deed their property to you and you continue to make their payments every month. In 90 – 120 days when you sell the property or can Refinance (it’s easier to refi then to obtain a new loan) the homeowner will get their lump sum check for $12,000.

OR….you could negotiate with the seller to receive that $12,000 over a five year period and you would just make the payment each month to them. REMEMBER— EVERYTHING IN LIFE IS NEGOTIABLE!! This would be the best bet if you plan on using the property as a rental.

4. Find an established investor in your area and arrange a partnership on a “Deal By Deal Basis”. If you locate the properties, manage everything and handle any needed work & the other investor puts up his money you’ll split the deal 50 / 50. Don’t be shy about contacting other investors with this proposition. BELIEVE ME, if you have a good enough deal they’ll want in on it. This is a great scenario because aside from having a financial backing, you’ll also be taking advantage of the years of experience that the established investor will be bringing to the table. Believe me, even though you’ll be managing everything, the other investor is going to be keeping you in the right direction. After all, he wants to make money on that deal…he’ll have a vested interest in it so you’ll be getting a free education to boot! You just want to make sure that you have everything in writing to ensure that there are no misunderstandings when it’s time to split the proceeds. Write out exactly what is expected of all parties involved and you shouldn’t have any problems.

Sign Up To Receive Rich Urban’s Free Real Estate Investing Coaching at:
http://www.youngrealestateinvesting.com/freecoaching
You want to know the REAL TRUTH about making money in Real Estate that everyone else is too scared to reveal you? Are you sick of all the B.S., hype, lies and scams out there?

Get a FREE course now — Make Sure That You Enter Your Name & Email at:
http://www.youngrealestateinvesting.com/freecoaching


My New Real Estate Investing “Toy” Review

November 7, 2007

I just picked up a great new software program, and figured I’d let my readers in on it as well.

It’s called RealProspect, and I’ve found it to be the best Real Estate Investing software that I’ve tried so far…designed specifically for real estate investors to better manage our prospecting activities.
Read the rest of this entry »


Volunteer With Me – Is for a Good Cause

October 30, 2007

So while I was online, and I was just reading some of your emails, and a friend of mine sent me this link…

The link is of a myspace page, that myspace started. For Anyone that wants to Volunteer and help the less fortunate, there are many things you can do.
You could work at a hospital, Shelter, help out in fashion Shows, Theres loads of things you could do – over 100 things….

Volunteer from 1 hour to as long 4 hours per day….You don’t have to do this everyday either. You can set it up to help out only when you want to….

YOU HAVE never seem me promote anyones page here unless it was a credible thing, and this is def. something good..

I know 95% of you can’t do it because of your work schedules, children, etc… but that 5% please do so…..If you work only Monday to Friday then helping out for like 2 hours on a Saturday from like 2pm to 4pm is not going to kill you……

Please Check out the Link:

http://offto.net/volunteer/
I already signed up to help 2 things in South Florida..

PLEASE leave me a comment here….on what you thought on the Page. If you can’t do it, the least you could do is REPOST MY Blog Posting to your friends so they can help out….

Don’t Forget to SUBSCRIBE TO MY BLOG to get all the news before anyone else……….

Your friend,

Rich


Police: Westchester Couple, Unable To Sell House, Turn It Into A House Of Prostitution

October 29, 2007

The downturn in the housing market appears to have driven two New York homeowners to desperate, illegal measures when their house went unsold.

Police say the Westchester County couple, both mortgage brokers, turned their home into a brothel.

Robert Werner, 34, and Heather Mazzenga, 32, were arrested at the three-bedroom home Friday night and were charged with promoting prostitution. Four women, ranging in age from 21 to 30, are charged with misdemeanor counts of prostitution and practicing massage without a license.

All six are free on bail.

New Rochelle Police Lieutenant George Rosenbergen would not say how police learned of the alleged operation.

The house, they say, had been turned into a brothel complete with a red ribbon placed out by the sidewalk to indicate they were open for business.

Werner and Mazzenga moved out of the house roughly two years ago so they could begin renovating a home on Mountain Road in Pleasantville.

New Rochelle neighbors told CBS Station WCBS the house had originally been listed for $750,000 but didn’t sell even after the price had been dropped to $600,000. The house was rented to families who came and left, and then fell into neglect until new neighbors arrived about two weeks ago.

The lawn was mowed. Heavy windowshades were put up.

A neighbor, David Saperstein, told WCBS correspondent Lou Young that he never saw the new neighbors. “But at night there’s five, six, seven cars there,” he said.

Natalie Nanzo told Young she’d even considered buying the house when it was first put on the market. She couldn’t get over talk that the North Avenue home was allegedly a house of ill-repute.

“I’m in shock,” Nanzo said, “because these people were business people. I can’t believe they would be involved in prostitution.”

The alleged brothel sits across the street from a museum dedicated to Thomas Paine, the author of 1776 pamphlet “Common Sense,” that helped rouse the nation to war.

It’s the second alleged sex-for-sale bust in a premiere Westchester neighborhood this year. In February, Bedford police accused dominatrix Sandra Chemero of running a prostitution business out of her home – which she rented from a local yeshiva.

 


Phone Calls From Motivated Sellers

October 4, 2007

 

Eventually people will start calling YOU! Most won’t be motivated, but some will! You want the ones that are MOTIVATED! When they call YOU, that’s when you screen them over the phone first and determine their motivation. Then you go visit them and get face to face with them and build a relationship with them. You want them to get comfortable talking to you. They may want to talk about their dog for all you care. Let them! Get comfortable with them. Let them build some trust in talking with you.

Whenever they talk, you SHUT UP and just LISTEN!

Listen to everything they say. The more they talk, the more information they let out. The more information they let out, the more you learn about their PROBLEM. The more you learn about their problem, the more you will be able to find out what they really NEED! Once you got that information you can now figure out a SOLUTION that will SOLVE their PROBLEM by being able to give them what they NEED! Your solution to their problem gets them what they need and you make a profit for your problem solving skills!

You’re a PROBLEM SOLVER!

You are the DOCTOR OF SOLUTIONS!

DR. BUYER, the master of problem solving!


Real Estate Investing How To Find Motivated Sellers On A Tight Budget

October 4, 2007

You get a bunch of business cards printed up. Put them out everywhere you go. Hand them out to everyone you meet.

Get flyers made up. Post them everywhere you can. Put them in Laundromats, bowling alleys, advertising boards in supermarkets, car washes, etc. Put them anywhere and everywhere you can put them!

Then get some “bandit signs” made up for about a buck a piece. I use BanditSigns.Com they are quick and inexpensive. Just buy the cheapest signs that they have, and post them anywhere and everywhere you can. Expect some to get torn down or destroyed. That’s what happens to bandit signs..:) Put them on Telephone poles. Nail them to a stake and post them in the ground on every intersection in town. Let the world know that “YOU” buy houses for CASH! Just give you a call!!!

See The Next Post To See How To Handle The Phone Calls…