1. real estate

“How to Buy Your
First or Next Home,
With NO Money,
and NO Credit!”
By Jason Loucks
“How to Buy Your First or Next Home…
Dan KennedyDan Kennedy, marketing consultant extraordinaire and mentor to
many entrepreneurs had this to say about creating a money-making system:
"Entrepreneurs, probably by nature tend not to be very good at,
or happy about ‘detail work’; they are systems oriented. They’ve
discovered that... success without systems is stress and chaos...
Every one of them utilizes a lot of ‘automated’ marketing tools and
technology. Every one of them, in fact, has a system for
making money that works and is replicable, in much the
same way McDonalds has a system for profitable fast food restaurant
operations.
This is why you can look to any of these people for coaching and
direction with confidence: they provide
a system."
With No Money and No Credit!”
Disclaimer:
“How to Buy Your First or Next Home, With No Money and No Credit”
by Jason Loucks
© 2005 Home Financing Options
ALL RIGHTS ARE RESERVED. No part of this book may be
reproduced or transmitted for resale or for use by any party other than
the individual Licensee who is the soleauthorized user of this System.
Licensee is authorized to use any of the samples in this Course for his or
her own use only. All other reproduction or transmission, in any form
or by any means, electronic or mechanical, including photocopying,
recording, or by any informational storage or retrieval system, is
prohibited without express written permission from the Publisher.
Published by:
Home Financing Options
Mail Department
P.O. Box 19916
West Palm Beach, FL, 33406
This Information is designed as an information source only. It is distributed
with the understanding that the publisher is not rendering or distributing
legal, accounting or any other professional service or advice. If legal or any
other expert assistance is required, the services of a competent, licensed
professional should be obtained.
“How to Buy Your First or Next Home…
“How to Buy Your First
or Next Home,
With No Money and No Credit!”
Introduction:Real Estate Investing For the Next Millennium
The Four Things That Destroy Real Estate Careers: Cash, Credit, Time,Liability
Throwing off the limits
Work less and make more
What Is a Real Estate SYSTEM?
Don’t set yourself up to fail.
0% RETURN ON INVESTMENT
What Wal-Mart Can Teach You About Real Estate Investing
Real World Simultaneous Closings
The Art of the Quick-Turn Deal
$20,000 now and $50,000 later Vs. Cash out right now and get $40,000.
Don’t brag about getting ripped off
Get high quality Buyers on your Buyers List, for FREE
We’re not looking for “kind of” Ugly
Eliminating Competition
“Median Home Price” Defined
Dealing With Sellers in an All Cash Purchase
Silence Is Golden
With No Money and No Credit!”
The Art of The Quick Turn Deal Continued
5 Tips to closing 2-3 times as many deals
Don’t Get Ripped Off!
Useless, dangerous advice from cranks who haven’t bought a house in years!
Your Deposit
“Cockroach Theory”
Tracking Down Sellers
The Ugly House Price formula
How do you find a good Title Company to do this for you?
Who pays for the Title Insurance?
The Biggest Secret No One Ever Told You!
It works on Pretty Houses, too!
Dealing With Pretty House Sellers
How to Turn a $100 Investment Into $55,000 and Be Mad Because It Wasn’t More
Final Word on Double Closings
The Importance of Goals
Know what you need
Goals Vs. Dreams
YOU MUST START CASHING CHECKS,
Action Goals
90% of success is…
Donald Trump and the Art of the Comeback
Landlording Sucks!
Escape the landlord trap forever
Debt-Takeover Part I: Two ways
“How to Buy Your First or Next Home…
Cover Your Assets
You don’t want renters
What IS Your Job?
Debt take-Over Part II: Lease Option
Negotiating Debt Takeover Deals
How to Make a Seller Confident and Secure Working With You
How to Give a Seller Top Dollar, and Still Make More
With Real-World Seller Financing
Zero interest Seller financing
Writing up the paperwork for top dollar
How to Do Your Deals to Get More of What You Want- MONEY!
If there is no future, there is no check.
How to Increase Your Monthly Cash Flow 2-5 Times
Selling Houses- FAST!
Finding Pretty House Deals
How to get lists of Foreclosures, Bankruptcies, Probates, and Divorces for free
People want to deal with people.
Isn’t there a lot of competition?
6 Steps to Closing a Real Estate Deal
Maximizing Your Money and Happiness
With No Money and No Credit!”
“Jason is a Master at getting cash upfront out of every deal. He’ll teach you a
strategy and a system for making BIG checks in Real Estate without any
money or credit. -Tracie Schumacher, FT. Myers, FL
Real Estate Investing For
the Next Millennium
In this book, I am going to show you how to get over the four big
hurdles to making it to the “Big Money” in the Real Estate Business:
Cash, Credit, Time, and Liability.
My name is Jason Loucks. You may have heard me on my weekly
Radio Show, “Real Estate Investing For the Next
Millennium.”
If you haven’t heard my show, you’ve probably heard some pretty
bold claims in the stuff that I send out to try to entice you to learn more
about the business.
Some pretty outrageous stuff, like “you can buy houses with no
money.” Crazy stuff like “a million dollars a year is totally within your
grasp.”
On the radio show, you would have heard it a lot. The benefit of
hearing me on the radio is that you would have also heard my students say
the same thing.
“How to Buy Your First or Next Home…
I can put as many testimonials as I want in the letters that I send you,
but unless you hear it from the horse’s mouth it doesn’t stick. I know that
and you know that, so I’ve included some of the exact letters my successful
students have sent to help you understand that these techniques work, right
here and right now, all over the country.
In this book, I am going to give you a Real Estate profit system that
has the power to make you as much money as you want. The only limit
to your income is how strictly you follow the system. In
this book, I’ll prove it to you.
It’s all in how you choose to fuel it. I know people that love to crank
and they make 100 deals a year with an average net profit of $25,000 –
$30,000 a piece. I choose to do fewer deals (about 3 or 4 a month), but with
a higher profit margin.
I learned a long time ago that; “It’s
better to work less and
make more, than to work more and make less.”
Once you’ve finished this book, the choice is yours.
With No Money and No Credit!”
What Is a Real Estate SYSTEM?
A Real Estate System works in hot or cold markets, whether the
houses are $50,000 or $5,000,000. In fact, in slower markets, the Sellers are
lining up to work with you.
Where I live in South Florida of having a hot, hot market. For many
people, that’s a problem.
Many would-be Investors tell me, “I can’t find any deals, it’s a hot
market.” What a joke!
I laugh when I hear that! Hot markets are full of Sellers that don’t
even know what they own anymore. In one year, values can go crazy.
Here in South Florida, ugly houses, (the ugly, stinky houses that you
couldn’t even live in) are $50,000 more expensive than they were two year
ago. There are tremendous profits for you, once you learn how to “harvest”
that equity and turn it into cash!
The key to getting to those profits is you
to fail.
can’t set yourself up
You have to understand that you are in a real estate business, you’re
not an investor. I know that is difficult, but once you’ve read this book, it
will make a lot more sense.
But the reality is;
“How to Buy Your First or Next Home…
I Am As Much A Real Estate Investor
As A Grocery Store Is A Lettuce Investor…
The only difference is, the commodity that my business buys and sells
is houses. The profit per transaction is enormous.
I don’t have to do 5 zillion little sales to make a nickel a piece. I’m
not Johnson & Johnson looking to make 10 cents off dental floss. When I do
a deal, it’s $37,280 average profits. And that’s easy money.
If it’s up-front cash profits with no attachments (and I’ll show you
how to make these checks with no credit, no money, and no hassles), it’s
$10,000 minimum.
In fact, the least profit I’ve made on a Wholesale deal in a really long
time was $9,733 and took me about two weeks total.
When I say two weeks what that means is, from the three phone calls I
made to get the deal, it took three weeks to get the check. And I really didn’t
have anything to do in the mean time.
So in a total of about 3 hours, I made nearly $10,000.
The reason I have the authority to write this book is simple; I have
something you want- a system for getting cash from real estate right now.
Not five, ten, or twenty years from now with a rental property, right
now. Within 30 days.
With No Money and No Credit!”
The problem with rental properties is (and this is something that you
are not going to hear from the rest of the world), there is no such thing as
cash flow!
I’ve spoken to thousands of Real Estate Investors in clubs all over the
country, and I’ve done an informal survey. I always ask, “Raise your hand if
you own rental properties.” Many hands go up.
Then I ask, “Keep your hand up if, after taking out vacancy and
maintenance expenses there’s any money left over at the end of the month.”
95% of the hands go down. Rentals just don’t make money on a monthly
basis.
For the 5% who still have their hands up, I ask, “Keep your hand up if
you can afford to live off of the monthly cashflow from your rentals.” The
other 5% put their hands down.
I’m not saying it’s impossible to make rentals work, but the costs on a
rental property are enormous! The odds of you getting into a rental property
and not losing money while you own it are phenomenally small.
If you’re a Landlord, you know exactly what I mean. Landlording is a
great business if you get good at it. But it’s the 2nd hardest way to make any
money in Real Estate.
I’m sorry to break it to you, but landlording sucks. I am going to have
to kill that horse today so you don’t ride it into the gutter.
In fact, I got started buying rental properties. I bought 16 units my
first 4 months in the business. On paper, I was going to be making $2,000 $3,000 a month in cash flow, even with an escrow for repairs.
“We had the worst run of bad luck you could have, and we were in debt up to our eyeballs!
I just couldn’t keep up with tenants and repairs and taxes and everything anymore. Jason’s
system couldn’t have been easier. I’m enjoying the money a lot more than I ever liked
having renters!”
-John Edditch, Palm Bay, FL
“How to Buy Your First or Next Home…
But here’s what I learned about repairs, they don’t happen over the
course of a year for you to escrow for them, do they?
When that roof goes you’d better write a check to replace it, or there
is no money coming in for next month’s rent, that’s for sure.
So even if you say, “yeah it’s going to cost me 100 bucks a month or
so for expenses, I’ll just set that much aside each month so it’ll be available
if I need it,” unfortunately that is not how it works.
It’s more like $3,000 to repair the roof, and maybe in the next 3 years
you’ll break even.
If you don’t have any money, the last thing
you want in the whole world is a tenant.
There are 4 things that will bring your career to a screeching halt.
Those things again, are cash, credit, time, and liability. I am going to spend a
lot more time on cash and credit because if you haven’t gotten into the
business yet, you don’t understand the problem of time and liability. If you
don’t have any houses, they’re not sucking up your time.
The truth is, I left out the biggest factor, the giant, silent, number
“zero”-
Guts.
With No Money and No Credit!”
To some degree, you’ve already passed the test. You’re reading this
book. Already, I know you’ve got some drive to change your life.
There’s probably something good on T.V., or something else you
could be doing now rather than sitting here and reading this book. You’re
already one of the chosen few who decided to do something about real estate
rather than just talk about it.
Every single day there are Millions of people all over the Country and
the World talking about how real estate is great and discussing how
everybody is making a ton of money in real estate. But there are only a
handful of people that are actually doing something about it, and you are in
that handful of people.
My qualifications for being up here are that I am out there, in the
trenches, buying and selling houses. I am doing it, I am a real guy. I buy
houses.
Just so you know, unless you live in Antarctica, you don’t have the
biggest excuse that I hear from everyone I talk to- “it doesn’t work where I
live.”
I have students all over the country using these techniques. I guarantee
there’s someone in your town doing this right now. If it doesn’t work where
you live, please move so it will work for everyone else.
Just kidding. My point is, it works everywhere.
The other reason I am qualified to teach you this business is because I
am trained to be a teacher.
“How to Buy Your First or Next Home…
Teaching is really what I wanted to do with my life. When I got my
first job offer, I made the horrible discovery that I can’t afford to be a
teacher!
You may have the same experience in your career. You can’t afford it.
On a standard 40 hour a week paycheck, 3 or 4 teachers living in a house,
maybe we could all get along.
It just wasn’t going to work. And to get paid such peanuts to deal with
the administration, the lousy curriculums, and all the other B.S. stuff that I
didn’t like for 40 hours a week just to get to the part that I do like which is
teaching.
I said, “Forget it!” I’d rather control my own destiny.
I was working at GNC (the vitamin store), so I understand what it’s
like to barely make a living trading hours for dollars. I was broke, so far
below zero that I would have declared bankruptcy-except I was too stupid to
know what that meant!
When you’ve spent your whole life owing more than you’re worth, it
just seems like the way things are. I had more expenses than income, and I
was never more than one late paycheck away from a complete financial
disaster. It’s embarrassing to say, but I was a grown man still wondering
what I was going to do when I grew up.
Every day, I would work a full-time shift at the vitamin store, and
when I was done, I’d race over to the local college and put in a full time
class load- to learn to be a teacher. I figured that one day I’d get a job
teaching, and then at least I’d be able to keep my head above water. What a
joke.
With No Money and No Credit!”
I didn’t have a silver spoon in my mouth, I didn’t have anything.
In this business, it doesn’t matter if you have a rich family member or
good connections. They’re not part of the equation. It doesn’t matter if you
have good credit or bad, money in the bank or empty pockets. It’s not a part
of the equation.
Let me tell you what Financial Freedom means. Financial Freedom
means you can spend your time doing what you want with your life, because
you don’t have to sell your life an hour at a time just to survive.
Have you ever heard of the Susan G. Komen Breast Cancer
Foundation? The Susan G. Komen Breast Cancer Foundation was founded
on a promise made between two sisters – Susan Goodman Komen and
Nancy Goodman Brinker.
Before she died, Suzy asked her sister to do everything possible to
bring an end to breast cancer. Nancy kept her promise by establishing the
Susan G. Komen Breast Cancer Foundation in 1982 in Suzy’s memory.
They raised about 300 million dollars for breast cancer research.
That’s pretty amazing.
Nancy is married to the owner of Brinker International, a little
company that owns Chili’s restaurants, Macaroni Grill, Romano’s and pieces
of a lot of other businesses, too.
I’m not suggesting what she’s done isn’t heroic and amazing in it’s
own right, I’m telling you that Financial Freedom allows you to do amazing
things.
“How to Buy Your First or Next Home…
She has 24 hours a day to do whatever she wants to do with her life.
There is no clock for her to punch there’s no tyranny of a boss telling her,
“you have to do work 50 weeks just to get 2 for yourself.”
That’s crazy! You could take 2 or 3 weeks off every month, and still
have the freedom to live where you want, in as luxurious a style as you like.
That’s what an autopilot business does for you.
Maybe you’re just reading this because you want to make a lot of
money. Great! I’ll teach you how to make a lot of money real soon. How’s
that?
Maybe you’re here because you want to change your life. You just
don’t like being who you are and doing what your doing. Awesome. That’s
why I got into real estate.
Honestly. I didn’t have any particular love for real estate until I found
out how easy it is. And, there’s a certain amount of pride that comes with
owning property. If you’re a Landlord, you know exactly what I mean.
Sometimes it’s the only good thing about it. You drive by one of your
properties, and say, “yeah I own that one,” and swell with pride.
What I do is drive by the ones I used to own and I still feel that same
pride. Like “yeah I owned that one, and I owned that one.” It feels better,
actually, because there’s no negative feelings attached, just dollar signs.
Maybe you have something in your life that you want to spend more
time on, and you have to get money so you have that time. Kids, charity,
Golf, maybe all three?
With No Money and No Credit!”
Well, one of the things that I like most about this business is that it’s a
lifestyle business. You can put it on autopilot. Then, once you pick a target
of how much you want to make, it’s just a matter of running the system.
The last thing I would ever want to do to you is give you a new job.
What I would rather do is give you the system so that you can make it work
with as little or as much input as you want on your part
So the biggest hurdle that needs to be overcome, that you guys have
already raised your hand and said, “that’s not a problem for me” is GUTS.
Just plain out guts.
Because you’ve got to do the opposite (and sometimes the exact
opposite) of what everyone in your life up until now, has told you to do.
You don’t want to work 40 hours a week for 50 years so you can
retire and be poor or you wouldn’t be in this room. You don’t want to do
what everyone else said you should do or you wouldn’t be in this room.
You’ve already begun to overcome the biggest hurdle- GUTS!
1. CASHThe next thing you have to overcome is the belief that you need
money to make money. “But wait,” you say, “Isn’t that true?”
No. it isn’t. Once you learn the way money works, the money is never
a problem. In the Private Money chapter, I’ll show you how to get all the
cash you could ever need to do the 20% of deals that require money. You
already have enough money to do the other 80%- they don’t require any.
“How to Buy Your First or Next Home…
For most Real Estate Investors, it’s not a money problem, it’s an
education problem, and you’re reading this book, so I can fix that.
The idea you need cash is going to hold you back in a lot of different
ways. The biggest way is you think you need it so you don’t get started!
It doesn’t take your money to do a real estate deal, it doesn’t take your
money to buy an ugly house, it doesn’t take your money to buy a pretty
house, it doesn’t take your money to make an up front cash profit, it doesn’t
take your money to buy a long term keeper.
None of those require you to come up with a nickel or take out a loan,
and I will show you how to do it step-by-step.
I have to warn you- if you’ve been riding on your excuses, now would
be a good time to go to close this book.
All of your excuses will be gone by the time you finish reading this, it
all comes down to you actually getting up and doing it! It’s great to be your
own boss, but sometimes you’re underqualified.
Your results will be in direct proportion to your commitment. If you
put the system in gear and give it a little gas, it will spit out money. That’s
the way a good business model works.
The luxury that you have, that I didn’t have, is that somebody already
built that system. So you can get in business tomorrow with no cash, doing
exactly what we’re already doing, and skip years of pain. Years of everyone
telling you that won’t work, years of doubt, years of wondering, “Am I
doing what I should be doing?”
With No Money and No Credit!”
I am definitely going to cover the ugly house business, the pretty
house business, rehabs, and Foreclosures, and none of them are going to take
money, I promise.
The biggest problem for people who think it takes money to make
money in Real Estate is they put their money into real estate. Then pretty
soon they don’t have money anymore and since they believe it takes money
to make money, they’re out of business.
If you had a million dollars and you said, “I’m just going to use this
million bucks for down payments and buy houses”, at some point you’re
going to run out. And as soon as you run out, you’re out of business.
No matter how much money you have, you have much better choices
than to pump it into Real Estate. Whatever money you put down, or spend to
fix a piece of Real Estate, you’re that much at risk.
It is possible to lose your entire investment. It could happen. Is it
likely? No, but it could happen.
And I’ll tell you what, when you don’t have any money in a deal and
something goes bad, you don’t lose any sleep. But when you’ve got 10, 20,
30, 40, 50 thousand dollars buried into a property, man, every little breeze
gives you an ulcer.
So if you want to divorce yourself from the need to sweat bullets
while you build wealth, don’t put your money into Real Estate. Don’t do it.
You’re going to be tempted, even when I show you how to do it
you’re going to say, “Well maybe he was wrong, maybe I should put my
money in because I am not using credit, much of my time, or signing on the
doted line for liability.”
“How to Buy Your First or Next Home…
Not the case, keep your money in your pocket, I guarantee you’ll be
happier.
Besides, once you learn how to buy Real Estate without money, you’ll
very quickly realize that Real Estate wasn’t such a great place to put money
anyway.
For example, let’s say you bought a $275,000 house for $250,000 and
put $50,000 down. After a year of good appreciation, you sold it for
$300,000. What would your profit be?
Well you’d get your Investment of $50,000 back, plus an extra
$50,000 profit. That’s a 100% return on your investment. Not bad. This is
how most Investors think it works.
But IS THAT REALLY A 100% RETURN? let’s see what happens if
you don’t use any money at all.
If you bought that same $275,000 house for $250,000 and it went to
$300,000 and you sold it, you’d make $50,000 profit plus get back your
entire investment of $0. Your profit would be the same, but your Investment
would be $0.
That means, for the entire length of time your money was in that
property (as a down payment, or rehab costs, even closing costs) IT WAS
EARNING YOU A 0% RETURN ON INVESTMENT! Not good. This is
how Real Estate Business Owners think.
Using your money to buy or fix houses is a VERY bad idea. Besides,
it’s just not necessary.
With No Money and No Credit!”
2. CreditThe second thing that you have to overcome is the belief that you
need credit to buy real estate.
I’m not entirely sure where that idea came from, but I know that
there’s a lot of mortgage brokers and a lot of realtors who feel that same
way. Since they’re the only ones that get paid to tell you this business,
you’ve probably never heard the opposite.
The idea that it doesn’t take credit to buy houses is revolutionary to
the rest of the world. How many people have you heard say, “yeah I want to
buy a house but my credit stinks.”? Or “I want to buy a house so I’m saving
up a down payment.”
Well you’re never going to buy a house saving up a down payment
because the houses are going up faster than your down payment is!
When you get into the business and you do it wrong by using your
credit, you are only going to be able to do a handful of deals before the
banks shut you off.
Just ask a mortgage Broker, he’ll tell you. If you have too much debt,
even if it’s Mortgages on Income properties, the Lending Institutions shut
you off!
What generally happens is if someone gets started like lightning – this
is what I did – they rush out and they buy a three or four properties right
away. In my case it was multifamily units which is a mistake that I will not
make again. But they rush out and buy a few properties and when they go to
get the next one – No bank would touch them with a 10 foot pole!
“How to Buy Your First or Next Home…
When I was 23 years old I bought 16 units in 4 months because I
thought that was what you were supposed to do.
I did everything wrong, used my credit, borrowed money for
downpayments, I did everything that I heard wrong on that infomercial stuff
that I heard on television at 3am- it was nuts!
I wouldn’t be anywhere near where I am at now trying to do it that
way because after I got my first 4 properties, I went to purchase the fifth
and I found out they’re cutting me off.
Why’s that? I am 23 years old with just about a million dollars in
debt, why won’t you give me any money?
And the best part is, because I quit my job, I got the dubious
distinction of being able to write on a loan application, “No verifiable
income.” Know what that means in the bank’s eyes? “Unemployed.”
But quitting my job was the best thing I ever did. Nothing will kick
you in the butt faster than knowing you don’t eat next month unless you get
out there and close some deals. So if you guys want to join the ranks of the
happily unemployed, great!
The biggest problem with borrowing money from banks is the
Liability.
When you’re an investor and you borrow money from banks to buy
houses, in the fine print in the mountain of paperwork they make you sign is
a little clause. That little clause basically says, “If something happens to this
house and we don’t get our money back, we can come after everything you
own until we get paid.”
With No Money and No Credit!”
In the state of Florida, where I live, they can’t come after your
personal residence. If you like, you can check your local laws.
But they can take your car, your clothes, and your kitchen table and
not too many Mortgage Brokers or Realtors will tell you that because they
get paid only when you get loans.
Your credit will undue you in more ways than you realize. If you have
good credit that’s great. Keep it that way, don’t use it to buy houses.
That being said, I know a lot of mortgage brokers and Realtors will
read this. If you’re a Mortgage broker or a Realtor, and you are reading this,
you are weird. You’re one of the few people in your field trying to do better.
I would never be a Realtor because I don’t work for tips. Realtors
literally sit on top of the gold mine without a shovel. They are the weirdest
people I’ve ever seen. They’re in business to make me (and soon you),
money, and they don’t do it themselves.
And no matter how many times they watch you buy and sell a house
and bank a big check and they get their skinny tips, they don’t seem to get it.
When Realtors show up to my classes, I give them a round of
applause. They’ve had to go against the grain of not only the people around
them, but of every single thing they’ve ever learned about their business.
99% of realtors don’t buy real estate. Isn’t that strange?
If you don’t have credit, you’re going to find out quick that it’s
completely irrelevant. When you buy a house, no one’s going to ask for your
credit report. It’s just not part of the equation.
“How to Buy Your First or Next Home…
And I know that at this point you think it is, but I promise you when I
lay out the ways that you make money in the real estate business, credit is
not a factor.
Do you honestly think Donald Trump goes down to the bank and
signs a contract that says “you can take everything I own if this deal goes
bad”?
Do you think Trump put his house on the line when he bought his last
sky scraper? No way! That’s just not how it’s done.
3. TIMEThe third thing that will stop you if you let it is time.
I always thought the biggest problem with time is when you own
rental properties, there’s a point where you’re spending more time taking
care of your rental properties than you are going out and buying more
houses.
And if you’re not buying houses you’re not making those quantum
leaps in income and net worth that you really want to make. The deeper you
get into that pit, the less money you’ll make, now and forever.
If you own rental properties long term and you can afford to feed
them long enough for them to grow in value, and you can afford to sell them
because you don’t need the monthly income, then you can use them to build
your wealth and do okay.
With No Money and No Credit!”
It’s not impossible, but it’s the slow way. Absolutely the slow way,
and it has a lot of hidden pitfalls.
But even if you had all of those things lined up, wouldn’t you have
made a LOT more money if you’d been buying properties the whole time,
not getting bogged down in the handful you already own? Adding new
streams of cashflow, new chunks of equity, and new seeds of equity growth
for years and years, not just hassling with tenants and toilets?
You don’t want to be “okay.” I am not even willing to put you in the
“okay” business. I wouldn’t know how to do it if I tried.
But what I can do is show you how to make those long term profits
without liability, without credit, without cash down, and most importantly
with very little time. If it took you as long to buy a house as it takes most
people, you’d get one a year and give up in frustration!
If you’re spending more time taking care of what you already have
instead of going out and getting more houses, getting more big chunks of
equity, getting more cash flow, whatever it is you’re after, you’ve hit what’s
called the “landlord trap.”
I call it the “tenants and toilets trap” because I don’t want there to be
any confusion. If you’ve got tenants and toilets that are your responsibility to
fix and babysit you don’t have an investment, you have job.
It’s a job because you have to do it to get paid. And if that rent check
doesn’t come in that mortgage payment better still go out, so you’ve got to
kiss some butt or get them out and clean the place up and get somebody else.
“How to Buy Your First or Next Home…
One way or the other it’s taking your time. And if it takes your time
and there’s a correlation between how much you work and how much you
make, that’s a job.
Some people say, “Well, let’s hire a property manager.”
That’s a little better. You do have to pay the property managers, but
that’s not as big of an issue as the time it saves.
The biggest issue comes after you hire them. Then you have to
manage the property managers (ask me how I know this). And it ain’t a
whole lot easier. Getting someone to do your job is almost as much work as
doing your job.
You don’t want to waste time. It’s far more valuable than money.
I buy an average 3-4 houses every single month. I could do more, but
I don’t like to work. And in buying 3-4 houses a month, I’ll spend about 3
hours a piece on those houses. Now I do have to put in some time for the
marketing, that’s about 2 hours a week, and I make a lot of phone calls so
that’s probably about another 2 hours a month.
In fact, neither my Buyers, nor any of my Sellers talk to me first.
Unless I already know that they’re someone I should be talking to, there’s no
reason for us to chat. They’re just sucking my life away 10 minutes at a
time.
When I run an “Owner Financing” ad to Sell a house, I’ll get 800
phone calls in 30 days. I’m not answering that. In fact, my mortgage broker
meets my buyers before I do. If they aren’t qualified we’ve got no reason to
talk.
With No Money and No Credit!”
I have a student, James Eynon, who put out signs to buy houses and
got 125 phone calls from people that wanted to sell him a house. I am not
answering 125 phone calls. I don’t care how much the paycheck is, I am not
going to do it. I know that for sure.
So what I had to do instead is build a system that does most of the
work for me so I can step in at the critical moment and get it done.
I am going to beat time to death a little bit more later. But I definitely
want to cover liability.
4. LiabilityAre you the professional type that’s paranoid that a tenant is going to
try to pull something over on them? You should be. There are people who
have chosen as their line of work to put themselves over on landlords. And if
you’re just beginning in this business, you’re the one that’s going to get
nailed.
When you’ve got experience in this business you know how to deal
with tenants. You get a little experience under your belt, and you deal with it
better. Either you’ve done it before or you’ve heard about your buddy and
what he did, or you just have the money and the tenacity to see it through.
But there are “professional tenants”, especially people in the legal
field, people who know there’s nothing you can do about them living in your
house for free, as long as they file the right paper work. And if they know
how, they can stretch it out for 6 months.
“How to Buy Your First or Next Home…
Now if you can afford to live thru 6 months of vacancy and whatever
damage they do to the house (which you’re probably never going to get paid
for), then you might be able to survive a nightmare tenant. But why not learn
a better way?
After you’ve been in the business for a while, tenants are nowhere
near as much of a nightmare as they are right off the bat. I forbid you from
owning a Rental property for one full year from the time you do your first
deal.
That’s the kind of liability I am going to teach you to avoid.
In fact, there’s one super easy “pre-screener” you can use to pick the
right person to live in your house; Do they have any money?
If they give you that money, they won’t trash the house. It’s that
simple.
And I don’t mean a security deposit, that’s a joke. I am talking about
$5,000, $10,000, $15,000 or more if you want to live in my house. And it’s
on the hook, so you’d better behave.
And I am going to show you how to get it out of the people living in
your houses every time.
The other type of liability I’ll teach you to avoid is something that has
not occurred to the vast majority of Investors. That is, the minute you get
wealthy, whether that wealth is net worth or in your bank account, there is a
bull’s eye painted on your chest.
With No Money and No Credit!”
Let me ask you, if one little kid punches another little kid in the front
yard of a rental house you own and the little kid that got punched has his
teeth knocked out and the parents decide to sue, who are they going to sue?
They are going to sue you. You! Because you’re the only person
around that anyone can think of that might have enough money to be worth
suing. You’re the only one.
So if you rush out and buy 20, 30, 40 houses in your own name, you
might as well just put a “sue me” sign on your back.
But there is a very, very easy way to never have your name in public
record as the owner of a property. It doesn’t cost a nickel, but it could save
you Millions if you need it.
You think that might be beneficial?
So, are you affected by any of those 4 road blocks? Cash, credit, time
or liability? How about all four?
I’m going to tell you how you can get around all of those.
What I want you to do is note which one of those 4 (or which ones of
those 4) are affecting you the most and really pay attention when I talk about
that one, okay? Because we’re all different, so I can’t beat to death just the
one that’s a problem for you.
“How to Buy Your First or Next Home…
What Wal-Mart Can Teach You
About Real Estate Investing
When most people learn about Creative Real Estate, they’re taught to
buy properties with little or no money down, and play the “Landlord Game”
long enough to let the economy, inflation, and appreciation build in a profit
margin for them.
That’s crap!
The truth is, if you don’t have (or don’t want to spend) any money, the
LAST thing you would ever want to do is buy a no-money-down property
for full price, and hold and hope it becomes profitable.
It won’t.
When I first started as a Real Estate Investor, I worked under those
same misconceptions. I bought all the wrong properties in all the wrong
neighborhoods for all the wrong reasons.
I bought 3, and 4 unit buildings in the lower income areas because
those were the only properties I knew how to make “cashflow.” Here was
the conventional wisdom:
I bought 16 low income units in my first four months in the business
because I could. I had 16 units with an average rent of $650, for a total rent
roll of $10,400.
With No Money and No Credit!”
I even used my tremendous handyman skills, poured my blood sweat,
and tears into these places, and raised my average rents to about $700 per
unit, average. That bumped my income up to $11,200.
Then, I had the brainstorm that I could add some extra income if I
added a coin-op washer and dryer, and paid $1,000 for one of each.
My total Debt Service, which is the mortgage payments plus taxes and
insurance, was about $9,400. I also “projected” (read: wild @$$ guessed)
that I’d have $100 per month in expenses per unit. All totaled, I thought I’d
have a total monthly expense roll of $10,000.
On paper, including the laundry income, I should have been making
$2,000 or so per month. But that’s not reality.
In reality, I NEVER had a month go by without some kind of crisis.
Either someone moved out in the middle of the night (and took the
appliances with them), or I’d have HUGE expenses- like re-building the
plumbing on an entire unit because someone stole the copper pipes out of the
wall and sold them for scrap to buy drugs.
In one case, a new tenant left a box on the stove, and when the
electricity was turned on, it burned out the whole apartment, right down to
the frame. It was the most painful learning experience I ever went through.
In truth, I was lucky if I could only lose $1,000 each month.
One day I sat down to pay the bills. After subtracting the $2,100 in
rent that got stolen from my property manager at gun point, and the roof
repairs on a 4 unit building, I realized I was more than $8,000 in the hole. I
wanted to cry.
“How to Buy Your First or Next Home…
All my dreams were crumbling before my eyes.
I was a Motivated Seller.
Very quickly, I had to escape this situation! Not only was I not
making any money, I was losing $2,000 a month! And I bought these
properties No-Money down because I didn’t have any money! Very quickly,
I needed a solution.
I needed checks.
I remember the day that my classified ad first ran in the paper. I had
over 80 phone calls that day. It was the first good news I’d had in four
months.
The first property I’d bought was under contract one week later to a
Real Estate investor who loved the idea of being a landlord, and believed
that since he could qualify for a nice low interest rate, he would be better off
than I was, even though he was paying a lot more than I did.
I wish I’d known, all those years ago, to warn him. Instead, all I could
see was the light at the end of the tunnel.
I cashed that first check, for $28,872 and never looked back. Seven
months later, I unloaded the last of those wretched, evil properties, and
vowed that I would never again get involved in a deal just because I could.
There’s a lesson here for you. That lesson is this: If you don’t have
any money, the LAST thing you need is a tenant! You don’t need the
liability or the sleepless nights. You need CASH!
Which brings me to my point about Sam Walton.
With No Money and No Credit!”
Wal-Mart has become the single biggest Retail entity in the world.
And they didn’t do it by buying the most inventory, they did it by leveraging
their brains, not their wallets.
See, most people believe that a retail store buys product for a nice low
price, puts that product on a shelf, and when it sells, the difference between
what they paid for it, and what you paid for it is their profit.
Nothing could be further from the truth.
In fact, any given Wal-Mart store has millions of dollars in products,
tens of millions in some cases, and less than 15% of those products are
what’s called “high through-put.” That’s a fancy word that means “sells
quickly”.
The rest are referred to as “cold” or even “dead” stock, and are
unlikely to be bought in large numbers now or ever.
If Wal-Mart invested in these products and hoped for someone to pay
more than they did, each and every single store would go belly-up. If you
need proof, just look at all the Mom-and-Pop stores that did exactly that
after Wal-Mart came to town.
Not only that, they’d have Billions of dollars in inventory earning
them a 0% return on investment. This is not good business. It’s a recipe for
disaster. A recipe that 99% of Real Estate Investors use every day to buy
themselves into debt, and pray for alight at the end of the tunnel.
The truth is, Wal-Mart doesn’t pay for an item that
they have in stock until that product sells!
“How to Buy Your First or Next Home…
If you go in and buy a DVD for $15, Wal-Mart takes $7 out of that,
and sends it to the distributor, and pockets the other $8. It’s a double closing.
Why do you think there’s a panic whenever the dumb scanner doesn’t
go “beep”? And that’s why it takes an act of god to ring up products that
don’t scan. It’s a problem for the company!
In truth, Wal-Mart is a Retail Lease/Option business. They charge the
distributors for the shelf space to display that distributors product, and they
only pay for the product AFTER someone else pays them more. In fact,
Wal-Mart even requires that the distributor be responsible for cleaning up
their shelf space, and displaying everything well.
This is good business.
In a Real Estate Business, which is fundamentally different from Real
Estate Investing, we charge the occupants rent for the use of the space, and
we only pay cash for the product, which is Real Estate, when someone else
has just paid us more.
Houses are a commodity, just like food and clothing, and they should
be sold that way, too.
If you enter the Real Estate market, and decide to buy properties first,
and then try to find someone who will pay you more (all at once or
monthly), you cannot compete. You’re like the Mom-and-Pop store trying to
make Wal-Mart profits!
To be a genuine Real Estate Business Owner, you MUST have a
strong pool of Buyers, and leverage your relationship with those buyers just
like Wal-Mart does.
With No Money and No Credit!”
The ONLY way to do this effectively is to offer discount prices or
creative financing to create the volume of customers required to profit. And
the more you can offer properties with great prices or creative financing, the
more people will come to you to buy properties.
Your goal is to get enough of a client base that you can leverage your
buyers into a HUGE income for yourself.
Not your wallet, not your credit. Your CUSTOMERS. In this and
every other business, that’s where all the money is. Never forget that.
This is fundamental, yet understood by less than ¼ of 1% of people in
this world. Product doesn’t make you money. Houses don’t give you money.
Customers give you money. Then and only then can you consummate a
transaction.
Stray from this at your own peril. Many have been destroyed by
ignoring this advice.
In order to consider yourself a true Real Estate Business Person, you
can only pay cash for a property when someone else has already paid you
more! If not, you are an Investor at best, and a speculator at worst. That’s
bad business.
To sum up, you could learn a lot about making money from WalMart. They have leveraged their customers into a position to never pay
money for any product that they have not ALREADY collected the money
for.
Anything else is bad business.
“How to Buy Your First or Next Home…
The Art of the
Quick-Turn Deal
There are several ways to make money in quick turn real estate and it
doesn’t have to be quick.
I know that sounds kind of strange, but if you get some of your money
now and more later does that work for you? Keep in mind you did it with no
money down, and no credit, or liability, and very little time.
If you had $50,000 equity in a property and you had two choices,
which would you take:
$20,000 now and $50,000 later
-orCash out right now and get $40,000.
Which would you choose?
It depends on your personal situation. That’s my point.
Maybe you need money like you need blood! Maybe you’ve got bills
to pay, you’ve got problems money can fix, or most importantly maybe you
just need the peace of mind that tells you that if you need it, it’s available.
Does that make sense?
With No Money and No Credit!”
If you knew that at any time you wanted it, you could go out for 3
weeks and make as many $5,000 to $25,000 as you wanted, could you sleep
a little easier at night? A lot easier, I agree.
But that might not be what you need.
You may be in a tax position where selling a house and taking your
money is going to cost you big time.
If you’re in a tax bracket where you’re paying 40% or 50% to Uncle
Sam the last thing you want to do is sell. You lose the depreciation and you
lose the interest deduction. On top of that you get nailed for the taxes.
In that case, you can do one of two things. One, you can wait and the
economy and inflation and the rising price of real estate will make you
fantastically rich. That is plan A.
Or two, you could put those houses in your IRA so that when you
make profits they are tax free for life. For some of you, that’s plan B.
Your IRA can do everything that you can do in real estate. I am going
to cover that more later. I know for some people that’s a big deal.
Would you like to put $50,000 a year, tax free in your IRA with a
$100 investment? If not, you’re either 20 years old, or you’re just not
thinking about it.
I put money in my IRA because I just don’t want to pay the taxes. So I
make the decision to go ahead and pop it in the IRA so I don’t have to pay
the taxes. I don’t feel like paying out 40% to Uncle Sam on a short term
deal.
“How to Buy Your First or Next Home…
And you always have the choice to just get to the check right now. It
may not be as big, but money in your pocket sure feels good, and it will give
you the confidence to go get the next deal. Does that make sense?
Okay, let’s get down to the nitty-gritty. All the mental preparation in
the world is only worthwhile if you can buy these houses risk free.
There are a lot of different types of deals that you can do here. The
first thing that I am going to do is I am going to open up a business that you
guys have probably never really understood.
There’s a whole world of real estate that’s just outside your peripheral
vision. Have you ever seen those signs that say “We Buy Ugly Houses?” I’m
sure you have, they’re everywhere.
Have you ever seen the ones that say, “We Sell Ugly Houses?” No.
But they do.
And they get a check in the middle and they never fix a thing. And
you are going to have every tool you need to do the exact same thing.
In fact, let me give you an example. If you don’t know the ugly house
business that means that you’re not a rehabber, so just try to visualize what
$12,000 worth of work means to a house.
Well, if your working on the Taj Mahal, that means the doorknob.
But this house, was an ugly house.
It was on 39th street in West Palm Beach. This house had a cracked
foundation, a bad roof, a wooden floor that was buckling, meaning the
individual wooden boards in the floor were coming apart. The house was
With No Money and No Credit!”
tilted to the back- I call it the “Bowling Ball House”
because if you dropped a bowling ball in the front door, it
would roll through the house and out the back door
because of the tilt.
Not only that, it was ugly. In the picture, you can see
in the front yard what look like bags of garbage. You know what those
were?
Bags of garbage.
The yard was so atrocious that someone else in the neighborhood, we
don’t know who, actually took it upon themselves to go get garbage bags
and clean up the garbage from this guy’s front yard. Then they didn’t want
to do anything with it, so they left it in his front yard.
After talking to this seller for a short period of time I realized that his
motivation was he wanted out and he didn’t want to get sharked. He wanted
to get something out of this house that he put his blood, sweat and tears into
for 7 years.
He’d had renters. So when I called him about the fact that he had an
ugly house, he said, “No, no I have renters.”
I said, “Are you sure, because there’s no front door, and there are piles
of garbage in the yard. Let me guess, this month’s rent is late.”
When he told the renters he wanted to sell the house, they trashed it
and left him holding the bag. They just packed up and left and stuck him
with the bill.
“How to Buy Your First or Next Home…
He was happy to get out from under this house. The seller thought it
was worth about $110,000 and thought it needed about $24,000 in work. I
asked him where he got the $110,000 value, he told me he’d had it appraised
6 months ago, and that’s what it appraised for.
How do I know it looked like $24,000 worth of work to him? Because
the contractor’s estimate that he brought me said $24,000.
I knew it needed about $12,000 in work, and when I checked the
selling price of comparable houses in the area (called “comps” in case you
don’t know), other houses in good condition were selling for $155,000.
Why such a big difference between his appraisal and the other
houses? Well, this house was in such disrepair that any appraiser who came
out would have had to adjust the value lower to make up for the necessary
work. Voila, an under-market appraisal.
Here’s something you need to know when dealing with Ugly Housesthe “As-Is” or un-repaired value is totally irrelevant! It doesn’t matter what
it’s worth broken, it matters what it’s worth fixed, and what it will cost to fix
it!
But I didn’t let that stop me from making him a nice low offer. I got
the house under contract for $87,500.
I e-mailed the property description and my asking price of $97,500 to
my Buyer’s list, and in less than two weeks, I sold this house for $97,500.
Ten thousand dollars more than I put it under contract for with the seller.
Notice I never paid anyone any money for this house. When we
signed the contract, I gave the Seller a ten dollar deposit, and said I’d get
him the rest of the money, all cash, within 30 days.
With No Money and No Credit!”
He said, “great.”
At closing, I got a check for $9,733. I paid only $267 in closing costs
because I don’t need title insurance, I only owned it for 5 minutes.
The title company literally took the check from my Buyer, took out
what I owed the Seller, plus their couple hundred bucks for doing all the
paperwork, and cut me a check at the closing table for the difference.
hurt.
If you thought you knew what Real Estate Investing is, that probably
The only difference between my buying that house, and selling it at
the exact same time, me buying that house, sinking $20,000 into it and then
getting a check for $30,000 is not coming out of pocket for $20,000.
In fact, I didn’t even buy it until after I sold it. It’s called a
Simultaneous Closing (or a Double Closing if you can’t say “simultaneous).
It’s happening all around you every single day and now you know the
beginning of the ugly house business.
The next step in the Ugly House side of the Business is Rehabbing.
Rehabbing is, without a doubt, the hardest way to make money in Real
Estate.
Rehabs have everything going against you. Contractors who are
trained to overcharge you, large amounts of cash and expertise needed. Code
enforcement, money lenders, the works.
“How to Buy Your First or Next Home…
I’ve seen people pay triple what I pay for repairs and brag about it.
“Oh I put over $40,000 into this house.”
“Really? Because it should have been $15,000, you got robbed.”
I’ve seen people buy junkers through every unbelievable means
possible. Come up with the money in the most bizarre ways. Borrow from
three different friends to raise the money to buy a house, then put blood,
sweat, and tears to fix the thing for 6, 8, 10 months, more sometimes.
After they pay all the interest in the mean time, all the taxes, all the
insurance, plus $10,000 in repair costs, and they get a lousy $12,000 check
and think they’ve done something great!
To them I say, “Do you realize that you just spent 10 months at a part
time job for a total profit of $2,000 because you spent $10,000 to fix it? If
you wanted you could have sold it, made $5,000 and done 10 more in the
last 10 months because you didn’t get caught up fixing, you didn’t get
caught up raising money, there’s no bank, there’s no loan, there’s no
qualifying.”
The Seller doesn’t ask for your credit report, and wouldn’t care what
it said anyway. Your credit is completely irrelevant in the ugly house
business.
There’s nothing easier in the world than finding an ugly house and
passing it on to a guy that likes to fix ugly houses. Those guys are
everywhere.
Here’s a great way to get high quality Buyers on your Buyers List, so
you have them ready when you find a deal;
With No Money and No Credit!”
1. Get a Sunday newspaper, find the section where they have all the
“We Buy Houses” ads. It’s usually called “Real Estate Wanted” or
something similar.
2. Call all of those phone numbers and say, “Hi, my name’s
__________. I come across a lot of Ugly Houses at great prices, and I can’t
rehab all of them. Would you like me to call you when I get too many to
handle?”
They’re all your customers. You should never again complain about
competition. Every time you see that sign that says “We Buy Houses Cash”
you’d better write that number down because they buy houses cash from
you, too.
Dear Jason,
Just wanted to tell you THANKS Homie … Just wanted to let you know I went to
your coarse 2 months ago and since have cashed 3 deals with little work and just
contracted a fourth that was sold the same day!!!
Last mounth I made over $8,000 and worked less hours than I ever have in my
life!!! The info that I got in one day has realy changed my life and there’s so much more
two learn!!! The cash is real and so is my new BMW as a result of it!!
-Spiro “Pete” Cardaris, Wellington, Fl
Can you believe he called me “Homie?!”
Punk! :)
“How to Buy Your First or Next Home…
Finding Ugly House Deals
Here’s the fastest (and cheapest) way to find great deals on Ugly
Houses.
First, find a neighborhood where the properties
sell, in excellent condition, for less than the Median
Home Price in your area. (See the sidebar for a
definition of “Median Home Price)
Ideally, you’d want to look in neighborhoods
where the houses are selling for LESS than the FHA
and VA loan limits. To find out those loan limits, just
ask a local Mortgage Broker. They make those type of
loans every day.
This will work in higher dollar neighborhoods,
but it’s more difficult because there’s less Junkers.
Here’s a tip- if there’s a guard gate, there’s no Junkers
(at least that you can see from the outside).
Ideally, this would be an older neighborhood,
one that’s at least 10 years old, so the houses had time
to get Junky.
Then simply drive through the neighborhood
until you see a vacant, ugly house. They’re easy to
spot. It’s the one with long grass, ratty walls, and
broken glass. Or maybe it’s the house with a busted
foundation, no roof, and no front door.
Q: What does “Median Home Price”
mean?
A: The median Home Price is the
price at which half of homes in an
area sell for more, and half sell for
less.
It’s a much better guide than just
“Average Home price” because if you
take ten $100,000 houses, and average
in just one $1 million dollar house, the
“Average” is way off!
In this case, the average would be
$181,000. But if you’re looking for
lower value neighborhoods, in our
example, that $181,000 value is still
too high.
Median Home Price is a much
better guide, because it’s a more
accurate reflection of what houses are
selling for.
For example, here in South
Florida, our Median Home Price is
about $330,000. But the Average
Home Price is $480,000- that’s a big
difference, because we have a lot of
Multi-Million dollar houses on the
ocean that throw the average way off.
There are two easy ways to find the
Median Home Price in your area.
1. Ask a Realtor.
2. Check out your County Tax
Assessor’s Office- it’s usually on the
Internet!
With No Money and No Credit!”
Here’s the truth about this business;
Were not looking for “kind of” Ugly. We’re
looking for “Wow, that place is Uuuuglyyyy!”
The truth is, there’s no money in “kind of” ugly.
In fact, you’ve probably heard tons of other people tell you to look for
“cosmetic work” or “paint and carpet” jobs. That’s seminar crap.
You may find a handful of those “paint and carpet jobs” along the
way, but there’s not nearly enough of them to make a living.
Because if someone else can go down to the bank and get a loan to
buy that house, you’ve got competition. If no one can go to the bank to buy
that house, you have no competition at all.
No bank will loan money against a house with a bad foundation, a bad
roof, or a buckled floor. They won’t do it.
And if a bank won’t loan money, no Owner Occupant will be buying
that house. You’ll eliminate 90% of the problem Sellers right off the bat, and
focus your efforts ONLY on the Owners of vacant, ugly, un-finance-able
houses.
And if no one can get a loan to buy the house, you’ve got all the time
in the world to work this seller. You’re the only game in town because you
can close all cash (even though it’s not your cash- isn’t that cool?)
And by work the seller, here’s what I want you to say;
“How to Buy Your First or Next Home…
“If I pay you cash and close quick, what’s the least
you would take?” that’s it.
You’re done negotiating. Let the silence do the work for you.
You’ll find the more work it looks like it needs to the untrained eye,
the lower the price. The lower the price, the bigger the paycheck!
You’ll be amazed at what some Seller will take for their Ugly houses.
Prices like 60, 50, 40, even 20-30 cents on the dollar are not only possible,
they’re business as usual!
Once you get the Seller to agree to a dirt-cheap
price (and remember, they can’t sell the house to
anyone else), you get the Seller to sign a simple
contract, all cash, within 30 days.
Here’s 5 Tips to closing 2-3 times as many deals;
Don’t write anything “goofy” on the
contract!
1. No contingencies,
2. No Inspections,
3. No appraisals.
4. All Cash in 30 days.
5. And put your own name as the Buyer.
“But Jason,” I hear you shouting, “what if I can’t
get it sold?”
Here’s a real life conversation I
had with a Seller recently:
Me: What are you asking for the
house?
Seller: Well it’s worth about
$225,000. The least I’d take is
$210,000.
Me: If I paid cash and closed quick,
what’s the least you’d take?
Seller: All cash? I guess I could
probably take $190,000.
Me: (silent…)
Seller: Well, $160,000 but that’s the
least.
Me: Mmmm… (as if uninterested)
Seller: I could probably go
$150,000 if you close quickly.
I hadn’t even made an offer yet,
and the price came down $60,000!
Not bad for 30 seconds work.
With No Money and No Credit!”
Years ago there used to be a clause in most contracts that said you
could be sued for what’s called, “Specific Performance.” That’s the fancy
way of saying “make you buy it.”
But that hasn’t been in Contracts for 20 years! If you’re still getting
advice like, “Write and/or assigns, or ‘Subject-to partners approval’” you’re
getting useless, dangerous advice from cranks who haven’t bought a house
in years!
“But,” I hear you saying, “I still lose my deposit!”
Yes, and for a Private Seller, it’s a whopping $10. Ten bucks. Ten
smacks, ten clams. I hope you can survive that type of loss.
The truth is, your Seller’s not interested in your deposit, they want all
their money within 30 days! If the Seller wants a big deposit, their either not
motivated, or there is something wrong with the Title on the property, and
they might not be able to sell it, anyway!
I’ll tell you the truth, the majority of the time, I forget to give them the
ten bucks. It slips my mind, it really does.
When I do give them the deposit, it usually goes like this;
Me: “Okay, so the paperwork says, “I’ll pay you all cash within 30
days.” I’ll need your Okay right here where it says “Seller”.”
Seller: “You’re going to pay cash, right, so you’re definitely going
to close?”
“How to Buy Your First or Next Home…
Me: “Yup. No bank, I’ll write you a check at the closing.”
Seller: “Can we do it any sooner than 30 days?”
Me: Well, it’ll be within 30 days, so it could be sooner, but I can’t
guarantee it. The Title company has to do their thing, and I don’t control
how long they take. I’d love to do it tomorrow, but it just doesn’t work like
that.”
Seller: “Okay. I understand.” Signs contract.
Me: (Receiving contract) “Before I go, is there anything else I need
to know about this house? I’m going to have a ton of people, contractors,
inspectors, maybe even my money guy come in over the next week or so,
and I’d like to know now of there are going to be any surprises before I have
to pay the Title company.”
Seller: Just all the work I told you about. There might be more, I
don’t know.
Me: “That’s fine.” (Walking out the door) “Oh yeah, I almost forgot,
I have to give you $10. (Laughing) Don’t spend it all in one place!”
Even if your contract expired and you hadn’t gotten the house sold, I
bet if you called them and said, “Mr. Seller, I’m Sorry, the money was
supposed to be on it’s way, but it didn’t get here yet, can I get another 30
days?”
9 times out of 10, they’ll say yes! They want the other $87,490 soon!
And if they don’t have any other options, there’s nowhere else to go.
With No Money and No Credit!”
And if that doesn’t work, well then, you’ll lose your entire deposit.
Once you have that contract in your hand, you have control over the
house for the next 30 days. All you have to do now is sell it for more!
Sound complicated? Actually, this is the easiest part. If you’ve done a
deal or two before, you call up (or e-mail, which I prefer) your list of
Buyers, and say, “Who wants it?”
You simply add your profits on top of the Price you’re paying your
Seller, and offer it to your Buyers.
For example, if you were buying property worth $180,000 in excellent
condition, but it needed a TON of work, and you were picking it up for
$100,000 you just call or send it to your Buyers for $110,000.
If it’s a great deal for them, and the price is right, you’ll have it sold
within a few days, a week at the most! And the closing is a snap!
You get the contract from your Buyer for $110,000 and the contract
from your Seller for $1000,000. You take both contracts, bring them (or fax
them) to the Title company or closing agent, and call them to say “Let me
know when I should come pick up my check.”
That’s it.
They’ll do the closing, they’ll cut all the checks, you just wait- and go
get the next deal while you’re waiting.
This may not be the biggest check you’ll ever cash (in fact, it better
not be), but wouldn’t you like to make $10,000 (Continued Page 49)
“How to Buy Your First or Next Home…
He Made $16,574.47 in 5 hours of “Work!”
Dear Jason,
Just wanted to write you a quick note and let you know how awesome I'
m doing, and thank you thank you
thank you. I know that I was skeptical… but, boy has that changed. In fact, my entire outlook on my
financial life has changed.
See, this afternoon I picked up a check for $16,574.47. It took me about
5-7 hours of "work" and I can'
t believe I'
m looking at this check in front of me
right now.
This business is absolutely amazing! It was totally painless getting to my
check and all I did was follow your system the way you told me too.
I'
m human just like everybody else and I have spent a couple months not
doing what makes me money so it took a little longer to get to my first check a
couple weeks ago ($2500.00) but boy did i learn alot.
And that check was still easy. I then threw
away all that "extra" stuff I was saying and doing and, poof another one fell in my lap. You where right,
follow up makes the difference.
I was actually on my way home from the bank after depositing my check for 2500.00 when I received the
call from the seller on this new one that has netted me SIXTEEN THOUSAND FIVE HUNDRED SEVENTYFOUR DOLLARS AND FORTY-SEVEN CENTS. (Man I love the sound of that.)
So anyway, I just wanted to thank you for teaching me the truthfull and usefull and changing my life. I
know some other students and newcomers may get to read this so I would just like to say to
them.......please.... PLEASE ............. "open the envelopes" ............ THE MONEY IS IN THERE. -James
P. Eynon, Palm Springs, FL
With No Money and No Credit!”
in the next 30 days that you didn’t work for, raise money for, with no credit,
no cash out of pocket, and no liability?
Would you be able to move forward in your Investing, confident and
secure, knowing that you can generate enough money to live in style, put
your kids through private school, then college, go on vacation, whatever you
want, while you use other techniques to make HUGE profits?
Is making BIG money buying and selling houses, without cash credit,
or partners starting to seem a lot more real to you now?
There’s no reason why you shouldn’t make $100,000 in the next year,
just from this one strategy. You just have to do it.
“How to Buy Your First or Next Home…
Insider Tricks to Finding Ugly
House Deals
Ugly house deals are the easiest to find, and the easiest to get in and
out of. Now that you know what to look for, you’ll start seeing them
everywhere.
You’ll also start to see those “We Buy Houses Cash” signs
everywhere, too. So remember to write those numbers down and get in touch
with them to build your Buyer’s list.
Once you find a neighborhood with several Junkers in it, you can use
what I like to call the “Cockroach Theory” to keep yourself in the money
for a long, long time.
See, Ugly houses are like roaches, when you see one, there are 200 of
them here somewhere.
Once you get into the House Business, you’ll have Passive
Advertising bringing you leads on houses. (For a full list of advertising,
check out the Chapter on Marketing.)
I do mostly passive advertising. I don’t do a whole lot of driving
around looking for vacant, ugly houses anymore. There’s a good reason for
that.
When a Motivated Seller calls me with a Junky house they want to
sell me, I know when I get there, I’ll find 10 or twenty more with a little
driving around. In fact the last time I did this, I took one Saturday afternoon,
and found 32 vacant ugly houses in about 4 hours.
With No Money and No Credit!”
It was during one of these wonderfully rainy Florida weeks, where
you just want to be outside because the sun is finally shining.
Now out of 32 vacant ugly houses, is there a pretty good chance I can
put together one little deal? You bet. In fact, there should be 2 or 3, if I
follow up.
All you have to do is check the address against the tax records, find
out who owns it, and where they live, and call 411 to get their phone
number.
Then simply ask them if they’d like to sell!
Remember, half of them will be lousy leads. They’ll be hard to deal
with, and asking outrageous prices. The rest will be a pleasure to deal with,
and relieved that someone will take the burden of that house away from
them.
Dump the jerks. They’ll kill your dreams if you let them. Just hang up
on them. If they’re rude, you don’t have to be nice, and you provide a public
service, so you’ve got nothing to be defensive about. Next!
If I put together one deal (and by the way, I make a lot more than
this), and I only made $5,000, which is the minimum profit for one of these
deals, for working one Saturday afternoon and making 5 phone calls, does
that sound like something you should devote some time too?
Could you, if you only made $5,000, $10,000, $20,000 or $25,000 a
month stay in business long enough to get to the big checks?
“How to Buy Your First or Next Home…
Q: How Much Can I Sell These Junkers for?
Here’s the Ugly House price formula;
Before I get into it, let me give you a warning- you can occasionally
get away with Selling houses for more than this, but you’ll be destroying
your business rather than building it.
You shouldn’t charge more, because you’re setting up whoever buys
it from you to fail. And the person who buys it from you for too much is
probably a beginner, because the experienced people won’t pay you more
than this formula allows.
So if you want to stick somebody with one property once and then
run, you can sell if for more, not a lot more, but a little bit more. And you’re
never going to hear from them again.
But if you sell them the property for a good price, they are going to
come back to you over and over again.
Let me give you an example: I have 380 people on my “Junkers”
Buyer e-mail list. But just 6 of those guys buy almost every property that
comes up. That’s just the way it works because they know as soon as I put
an offering up it’s got to be a deal or Jason wouldn’t have touched it.
Here’s the Formula;
(Full Market Value X 70%) - Cost of Repairs =
Full Cash Price
With No Money and No Credit!”
Understand, that’s the most anyone should pay for that house. Now
here’s the key and I don’t want you to forget this part because it’s vitally
important-
You have to pay LESS!
Your profit has to come UNDER that “Full
Cash Price.”
If you’ve got a house worth $100,000 in excellent condition, 70%
would be $70,000. And if it’ll cost $10,000 to fix it, that means the “Full
Cash Price” is $60,000.
The most anyone should pay for that house is $60,000.
The amount below $60,000 that you have to pay is however much you
intend to make on that house.
How much less should you pay? However much you want to make on
the deal. My recommended minimum is $5,000. And if you’re dealing with
houses worth more than $180,000 it better be $10,000 minimum.
I don’t touch any of them if it’s not $10,000 cash, at least.
The truth is, the houses that need extreme repairs are a lot easier to
buy cheap. If you’ve got a house that needs $20-$30,000 worth of repairs it’s
a lot easier to buy it cheap!
In the House Business Bootcamp Homestudy Course, I go over how
to figure how much they need in repairs and all that good stuff, but it
literally takes 30 minutes to learn it, and then 2 minutes for each house for
the rest of your life.
“How to Buy Your First or Next Home…
If you want to learn more about the House Business Bootcamp, go to
WWW.HomeFinancingOptions.Com/TheHouseBusiness, or, if you’re
already online, just click on this link!)
Q: How do you find a good Title Company to do this for
you?
If you run into a Title company that gives you a problem, hang up the
phone and shout- “Next!” It means they’re new or stupid. Either way they
don’t know what they’re doing.
Just make sure you’re talking to the right person. Sometimes if you
talk to the front office secretary, she doesn’t know what you’re talking
about. But if you talk to the woman that actually does the closings, she’s on
board.
When no bank is involved, they can do anything. As long as the
money gets there, they don’t care. It doesn’t matter how it got there.
Regardless of who, somebody wrote a check.
Q: Who pays for the Title Insurance?
It will come out of the closing costs. On a Junker, it’s the buyer. The
buyer always pays the Closing Costs Junker deals.
It’s not particularly expensive, but he’s going to want title insurance
anyway. Before they write a policy binder they are going to do a title search,
so it’ll be dome anyway if you just wait.
With No Money and No Credit!”
I don’t get a title search. I don’t pay for title at all, because my Buyer
will in just a few days.
Sometimes there are surprises because of it, but I am not going to
spend $300 bucks to protect my $10 dollar investment.
“How to Buy Your First or Next Home…
Biggest
The
Secret
No One Ever Told You!
Are you excited? You should be. You now have the ability to generate
cash from Real Estate, the right way- without Cash, Credit, Partners,
Tenants, Banks, Rehabs, or Risk-something not 1 person in a 1,000 can do.
And I’m about to take this to the next level.
There’s more to this “Simultaneous Closing” business than just Ugly
houses. Want to know a secret? Come closer. Closer.
It works on Pretty Houses, too!
I have students all over the country doing 2, 3 even 4 or 5 of these
deals at a time! They are so easy, and so simple, it’s just a flood of checks.
With a few “tweaks”, the same technique will make you a lot more than just
$100,000 a year.
A whole lot more.
A student of mine named James Eynon, who you met in the last
chapter, told me he’s working on a Pretty House deal where the Seller
offered him a $150,000 discount from the appraised value of the property. It
was a $750,000 house they wanted $600,000 for.
By the way, this was one of 3 deals he was working on, all at once.
With No Money and No Credit!”
Pretty Houses are simply houses that don’t need any work, or at most
just a little cleanup. This technique is much the same on Pretty Houses as it
is on Uglies, but there are a few differences you should know about. Here’s
how it works on a Pretty House.
There’s a very common scenario you’ll run into when Sellers call you
with houses for sale (notice I didn’t say you contact them). They’re willing
to give you a bit of a discount, but not enough make it an all cash deal.
Very often, it’ll be something like this;
The Seller will say, “Well my house is worth $300,000 but the least I
could take is $260,000.”
In this case, you have to use your newfound negotiating skills to work
on them. That’s not enough of a spread (the difference between the value
and the Purchase Price) by the time you make it a good deal for somebody to
buy.
So let’s say you get them down to $240,000- that’s not a huge move
from $260,000. Then you sell that house at top speed to somebody else for
$260,000.
There’s $20,000 dollars sitting in the middle there, which becomes a
check to you at closing.
that?
now.
There’s no cash, no credit, very little time, and no liability. Remember
That’s the pretty house flipping business, when you need a check right
“How to Buy Your First or Next Home…
Let me give you another example. Here’s a pretty
house deal I did in West Palm Beach, Florida.
This property was in a Historical District called
El Cid. It’s listed on the national Registry of Historic
Homes, it’s got the brass plaque on the front door and
everything.
I Optioned this house for $100
and made a $55,000 profit!
When I spoke to the Seller, he told me he’d had
it listed with a Realtor for a year, and got 2 people looking at it, and no
offers. Then he listed it with another Realtor for 6 months and still had no
offers.
It was worth $700,000 to $750,000. The Seller had been losing money
every month for so long he just wanted rid of it. When I asked him how
much he owed, he told me, “$525,000.”
Immediately, I thought this could be a slam-dunk Debt-Takeover deal
(which you’ll learn about later), so I said, “It doesn’t make sense for me to
pay you that much, all cash. Would it make sense for me to make your
mortgage payments for you until the house goes up in value enough for
me to pay that much cash?”
He said, “Sure, but the mortgage is at 10.5%, and the monthly
payment is over $5,000.”
Forget that!
So I switched gears and said, “Well, it doesn’t make sense for me to
pay you that much cash, but I have a lot of people who like to buy
houses from me. If I can get you your $525,000 can I keep whatever I
can get over that?”
With No Money and No Credit!”
He said, “Sure!”
So I Optioned the property with an agreement called simply an Option
to purchase. I Optioned it for $525,000 and gave him a $100 dollar deposit.
That agreement gives me the right to buy that house for our agreed on
price of $525,000 any time during the length of our agreement. It also allows
me, as a “Principal” (that’s Realtor talk for a Buyer or Seller) to be able to
market that house without a Real estate agent’s license.
My goal, then, is to quickly market and sell that house for as much as
possible over the $525,000 price I have the right to buy it for. If I can’t find
a Buyer for a higher price, I don’t make any money, but I don’t lose
anything, either! It’s a great way to learn how to Sell houses- without risk, or
even making any payments!
In this case, here’s how it turned out; I sold the house to a new Buyer
for $580,000 and after giving my Seller the $525,000 we agreed to, I made
$55,000- without raising money, messing with banks, getting my credit
checked, rehabs, rentals, or any of that other junk so many people get caught
up in!
You want to know the most amazing thing about this deal? I was mad!
I only made $55,000! That’s lame. I had $200,000 in potential equity sitting
on the table there and I pulled $55,000 out of it.
I made $55,000 in 7 weeks with a $100 or so investment, and I was
mad because it wasn’t more!
“How to Buy Your First or Next Home…
I got a 55 thousand dollar check, with about 4 hours of work on my
part, and remember, my total cash in on this deal was $100 bucks for the
Deposit.
If I said “plus advertising costs,” would that scare you away? Do you
know how much advertising costs? As low as nothing, and at most a few
hundred bucks!
list.
If you’ve worked in the neighborhood before, you’ve already got a
If you don’t already have a list, finding your Buyer, and building a list
of other qualified, interested Buyers for the next house you do in the
neighborhood is simple and cheap.
Here’s what I did to Sell this house;
1. I went down to Home Depot and got one of those “for sale by
owner signs,” and I put the appropriate phone numbers on it for the system,
because I don’t take the phone calls, I told you that already.
2. Then I went and I got 10 of the little signs that you put on the street
corner with the arrow that points to the house, and they said, “must sell,
entertain all offers” and the phone number that gives them the address and
directions to the house.
10 signs cost me about $30. And maybe 20 for the front yard sign, so I
spent $140 in advertising this deal, plus $100 to the Seller, and I only pulled
out $55,000 and I was mad because it wasn’t enough.
Here’s why I wanted more- I should have done more extensive
marketing, but I got lazy.
With No Money and No Credit!”
If I had run a couple of newspaper classified ads for $400-$500 total
for both, I might have had 2 or 3 other buyers all competing on price, and I
might have made $50,000 to $100,000 MORE!
Here’s the questions I’m most often asked:
Q: How long did it take to sell?
In cases like this, the numbers don’t fit the All Cash formula, AND
the property is bank finance-able so it’s not right for an all-cash in 30 days
contract.
Instead, I use an Option to Purchase, which gives me more time,
because I’m not guaranteeing that I’ll buy it, just that I’ll try to get it sold.
This gives me time to find a Retail Buyer (an Owner Occupant, not a
rehabber or Bargain Hunter), and get them through the loan process.
This one took a little over 3 weeks to get under contract and another 4
weeks to close.
Q: How did you get them to agree to only $100 Deposit.
A: You say to the Seller, “If I can get someone to pay me more, I
am going to do that. If I can’t so be it. If you sell it in the mean time,
great, let me know so I stop paying money to advertise your house. Is
that okay?”
Most likely, they’ll say, “Yeah sure, I guess that’s okay.”
“How to Buy Your First or Next Home…
Then you say, “Great, here’s the paperwork. It says I’ll pay you the
$525,000, and anything over that I can keep. I’ll need your okay where it
says, “Seller”.
Then, once they sign, you simply say, “Oh, I almost forgot, I have to
give you $100 (or $10, or $1) as a Deposit. Here you go, maybe you can go
out to dinner, on me.”
They get a $100 Deposit, and a skilled professional dedicated to
Selling their house. I get anything over and above $525,000 if and when I
sell it.
Q: “Why would they let you take the house off the
market?”
I didn’t say I took it off the market!
With Options in the Pretty House Business, they can sell the house if
they want to, we’re not tying it up. All I ask is once I get a contract from
somebody else, we take if off the market.
I’ll tell the Seller, “Until I get a contract from somebody else, we’re
both going to try to sell your house.”
And I believe, since I have a system that works whether I work or not,
that I am going to beat them to it.
With No Money and No Credit!”
I’ll tell them, “I am not taking your house off the market at all,
until I get a buyer. As soon as I get a buyer, you can’t sell the house out
from under me. That’s all I ask.”
Q: Do you let them know that you are going to try to do
a Simultaneous Closing?
Absolutely. I put my sign in the front yard, I run the ads, and I drive
people to the house. There’s no secret I’m Selling it.
I tell the Seller, “Is it ok if I start spending some money on
advertising?” And that’s all it takes to get them to understand, we’re both
selling their house.
Q: You mean they are going to let you bring in buyers?
Yes. If they’ve got to Sell, they’ll want as many different methods to
Sell their house in place as possible.
Q: What if it’s Listed with a Real Estate Agent, or the
Seller wants to list it with an Agent?
One of the questions you should ask the Seller is “Is it listed with an
Agent? If it is, one of two things has to happen;
“How to Buy Your First or Next Home…
First, if it’s already listed, you have to wait. Do not work on houses
that are listed with a real estate agent, unless the Seller knows full well that
they have to pay the agent, or there is enough money to be made that you’re
willing to pay the commission. Don’t do it. Just wait until that listing
expires.
Second, if they haven’t listed with a realtor yet but they want to use
all their options by doing so, tell them to go right ahead, just make sure that
you are excluded from the listing agreement.
In that case, I am the only person in the world who can buy that house
without paying a commission because I found the Seller before the Agent
did.
If the house is a Pretty House, they don’t have too many more
choices. If they really want to Sell, they’ll do it.
Q: How can you guarantee that you’ll give them all
cash?
I haven’t guaranteed anything. If I can get it to them, great, if I can’t
at least they’ll have all their avenues working for them.
We’re not taking anything off the market, if they got a buyer
tomorrow, without me, I’d say “Here’s that agreement, tear it up. Sorry
about that, thanks for your time.”
With No Money and No Credit!”
Q: How did you find a pretty house if it wasn’t listed
with an agent?
The sellers call me. I cover getting the phone to ring in depth in the
Chapter on Marketing, but let me tell you one thing;
I am never going to tell you to call classified ads. If you want to get
punched in the mouth (verbally, of course), 300 times in one day, start
calling classified ads as an investor.
You’d think they put their phone number in an ad that says, “Must
Sell” because they want people to call, but that’s just not the case.
There’s a way to make a tremendous amount of money off those
classified ads, has nothing to do with you calling them.
Q: What if the Seller doesn’t want to put it in writing?
Then you don’t have a deal. It’s illegal to Sell someone else’s house
without a real estate license. And if you did use your license and list the
house instead of Option it, you’d never make $55,000 on that house.
You’d make 3%, or more likely 2% by the time you split your
commission with their Broker, any other agents, and do the advertising and
all that.
Uhh. I don’t work for tips, forget it.
“How to Buy Your First or Next Home…
Q: Did you get a cash buyer for this?
No, my Buyer went down to the bank and applied for a loan. It took 3
weeks to find the right guy, and about 4 weeks to get him qualified. He was
an Owner Occupant who bought a $750,000 house for $580,000.
That’s a pretty good deal for him, isn’t it? So he paid the $580,000
price, but he didn’t write a check for it and pay all cash, he borrowed most
of it from a bank and put a down payment for the rest.
Q: What if the Seller tries to back out of the deal?
My agreement with my Seller is that once I got a Buyer and put it
under contract, the Seller can’t sell it out from under me.
There’s paperwork you could file to stop him if he tried to Sell it out
from under you. It’s all a simple matter.
One piece of paper called an Affidavit and Memorandum of
Agreement, recorded at the courthouse, stops anyone from buying that
house. And the Seller doesn’t even have to sign it.
It’s a piece of paper that simply states that we have an agreement
pending on the property. No one else can buy that house, because he doesn’t
have clean title.
I don’t file it unless I think the Seller is going to back out. If I don’t
have a Buyer, I don’t bother. What would I be filing for?
With No Money and No Credit!”
Or, he may say, “I’ve changed my mind and I’m not selling it to you,”
in which case you could sue him to force him to Sell. But really, my advice
is, move on, you were dealing with the wrong guy.
The bottom line is, if the Seller decides not to sell it at all, I ask for
my advertising money back. Many times they’ll give it to me, but either way
I’m not mad, because I’ve built a powerful list of Buyers in that
neighborhood who will buy any other house I find there.
If the Seller decides not to sell it to me because he doesn’t like that
I’m making so much money, then I’ll file the Affidavit of Agreement and
stop him from being able to Sell that house ever again.
The truth is, if you find yourself dealing with people who aren’t
flexible, why are you in their house? We’re not here to buy houses at retail
price and hope they get better.
That’s for all the investors out there who won’t take the time to read
this book and learn a better way.
“How to Buy Your First or Next Home…
Final Word on Double Closings
So, do you understand the process here? If it’s a Pretty House with a
Retail/Owner Occupant Buyer, you use an Option to Purchase. When
you’re dealing with Junkers you use All Cash offers on a Contract for
Purchase and Sale.
With an Option to Purchase, we’re saying to the Seller, “If you’re
willing to take this price, and you’re willing to put it in writing, I am going
to try to get more, is that alright?”
With a Contract for Purchase and Sale, we’re saying, “I’ll pay you this
price within 30 days, all cash.”
Here’s the difference;
When you’re Optioning a pretty house, they have the right to sell it
without you. They also won’t get mad if you don’t close, because you never
promised you would.
When you get an Ugly House under contract, you promise to close the
deal within 30 days, or you lose your $10 deposit, and the Seller will be
miffed.
Either way, you’re in control. Either way, you have no risk in the deal.
With No Money and No Credit!”
Dear Jason,
I am delighted to confirm that I have now
completed my very first deal, a 3bed house in Dania
Fort Lauderdale, which I purchased for $130,000.
After tidying up the house and yard I have just
sold it… using all the techniques I learned from your
Course.
It Sold for $199,000 i.e nearly $50,000 profit!
Jason is a great teacher and for anyone looking
to get started his down to earth easy to understand
bootcamp is highly informative and most useful. -William Priddy, Westin, FL
“How to Buy Your First or Next Home…
The Importance of Goals
Over the last few years I’ve met thousands of active and prospective
Real Estate Investors, and one of the recurring issues I deal with when
talking to them is the importance of having clear goals.
Many Investors get started down the absolute WRONG path when
they first start learning the business of Buying and Selling houses. I blame
this on a lack of clear goals.
Far too many beginning Investors don’t know what their goals are,
and are seduced by dollar signs or equity or both.
If you need $5,000 yesterday to pay your bills, no amount of equity or
monthly cashflow from a rental property will fix the problem. If you’re
looking to ease your tax burden and build an empire to retire on, flipping a
property for $5,000 might just be fanning the fire.
I had a student a few months ago (who shall remain nameless) who
told me he’d been to a Bootcamp where they taught him to borrow downpayments on credit lines, buy Rental properties retail, and hold and hope
long enough to cash a check. According to him, the Bootcamp was crap.
I agree, but here’s the real problem; he was recently unemployed, with
no income, and needed money like he needed oxygen- now, not later.
This training didn’t deliver what he needed, but was it the Trainer’s
fault? I don’t think so. There were probably many happy students there, who
don’t know any better.
With No Money and No Credit!”
Frankly, he was in the wrong room.
I’m lucky in that it seems that people who come to my Bootcamps are
usually fairly focused. I promise to put you in business, cashing checks, to
free you from the time constraints and low expectations of a job or self
employment, and then launch your profits into the 7 figures annually from
there.
Based on the letters, faxes and e-mails I get almost daily, I deliver
exactly that.
I’ll teach you how to build passive income and a huge net worth, but
first, YOU MUST START CASHING CHECKS, or you will give up in
frustration before you even get started.
Here’s the point- if you have your current cash needs taken care of,
you can “skip a step,” and go right into long-term and massive profit
generating techniques.
If you need money now, you must build the pipeline first, and you can
arrive at rich in style.
It’s less of a training issue, and more of a goals issue. If you are trying
to build your retirement, you can use long-term strategies. If you are looking
to build passive income, and learned rehabbing, you simply didn’t have the
right goal in mind.
Though I’ve been called the “South Florida King of Quick-Turn,” I
made more money in my life from long term deals than I did short term
flips.
“How to Buy Your First or Next Home…
The cash-crunch has been over for me for quite a while. I’ve been
steadily building equity and cashflow, and have long since passed every goal
I ever had in that arena, and set new, better, action goals.
When I talk about goals, I don’t mean money goals. It’s all well and
good to say, “I want to make a Million Bucks in 12 months,” but without
clear “Action” goals, it’ll never happen.
A few of my goals for the next year are to develop a raw land deal,
increase my teaching business 3X, and acquire a non-apartment Commercial
property. Another was to line up $1M more Private Money.
To that end, I’m in negotiations on 3 land deals and 1 large Shopping
Center right now. Offers have been made, and time will tell if I achieve all
of my goals with many months left in the year. I’m preparing the “Ultimate
Foreclosure Bootcamp” for sometime in the first half of this year, and have
already had over 300 people interested in it. I only want about 60.
I’ve also blown away my expectations for raising capital. I just
brought 2 more Private Lenders on board and added over $30M to my usable
capital base. 1 goal down, 3 to go.
If your so-called goal is just dollars, it’s not a goal, it’s a dream. Make
a specific action, and a specific outcome.
If you want to make $1M in the next year, that’s great. But it’s not
what I’d call a goal. Doing your first Lease/Option deal is a goal. Finding 3
new Private Lenders is a goal. Moving from 1 deal a month to 3 per month is
a goal. There’s an action component.
If you went from 12 deals last year to 36 deals this year, and only
netted $900,000 you would have failed to achieve your $1M goal. But is that
With No Money and No Credit!”
really a failure? I hope not. What if you built a successful House Business,
and only made $250,000? Failure? No. An incredibly valuable lesson. A
perfect launching pad for massive success.
Here’s the real truth;
90% of success is all the things
you screwed up to get there.
Everyone hears about the successes, but precious few know about the
failures. If you don’t believe it takes progressive steps and constant action
goals to achieve massive success, just ask Donald Trump.
He mastered the art of the comeback out of necessity, not plan. I’m
not a Billionaire. I would LOVE to have failed as badly as he has. I’d love to
have the capacity to lose a couple Billion and come back better than before.
I hope I’m not losing you with big numbers. The truth is, when I first
started in Real Estate, any and all of what I just discussed would have scared
me a little (or a lot).
The point is, you MUST know what your goals are in order to be able
to move toward them. You should have a plan. You’re allowed to change it.
I have a friend in the business who does MANY more deals, in
number, than I do. He has no long term wealth building element in his
program, and in fact rents an apartment to live in. He built a house to move
into, and it isn’t even finished yet and he’s decided to sell it and take over
$100,000 in profits rather than live there.
“How to Buy Your First or Next Home…
Is that a mistake? I doubt it. His plan is to increase his bank account to
over a million dollars before he settles down and owns long-term properties.
etc.
In the mean time, he drives a new BMW, has a $10,000 watch, etc.
I speak to many Real Estate groups, and almost without fail, each
time, someone comes to me afterward with a story about how they are
renting now, and asks me “should I buy a house to move in, or just sell it?”
My answer, “If you find a house you love, move in. Until then, relax.
I give you permission to rent the place you live in until you feel like
moving.” Without exception, the relief they feel is immediate and obvious.
It’s all about you and your goals. Want cash now? Go get it. Want
long-term wealth, appreciation, depreciation and all that other good stuff?
Go get it.
Just make sure you know what you want to achieve, and everything
will be much easier.
And here’s the “flip side” to that. Many people never even get a Real
Estate Investing education, so they don’t know there are better ways to do
things. Many don’t even know there’s such a thing as the House Business.
You know by now that I don’t consider myself a Real Estate investor.
I consider myself a Business Owner. And the Business? Buying and Selling
Houses.
When teaching people, the hardest thing to do is get you past all of the
programming you have from decades of poor people telling you the wrong
With No Money and No Credit!”
stuff. I’m not kidding. Unless there’s a Multi-Millionaire in your family,
you’ve learned a lot of lousy stuff about making money.
In fact, a few months ago I was on a cruise, and we stopped in Grand
Cayman, and in a bout of zealous chattiness, a woman I didn’t know asked
me, “What do you do?”
(Funny, isn’t it, how many people are defined by where they work and
who gets to tell them what to do.)
I said, “I buy and sell houses.” The clearest definition of what I do.
“Oh,” she said, “so you have your license.” It was a statement, not a
question.
“Nope. I buy and sell them myself.”
Without having been there, it’s difficult to describe her reaction. It
was halfway between pretending to know what I was talking about, and the
way a dog cocks his head to the side when it can’t tell what it’s looking at.
She raced through her pre-conceived notions, and must have believed
she finally found one that fit. “Oh, so you buy them and fix them up.” This
was a statement and not a question, too.
“Not usually. Sometimes. But usually they don’t need work.”
I could practically smell the smoke as her brain overheated trying to
pigeon-hole me into one of her molds. I admit, if I hadn’t given her such
direct, honest answers, I could have gotten out of this conversation sooner,
but this kind of stuff is fun for me.
“How to Buy Your First or Next Home…
“Oh, you buy them and rent them out.” Another statement.
“No, I hate rentals. I don’t do any land lording.”
“Oh.” Every one of her sentences started with “Oh”.
The concept of buying already existing, pretty houses and making
money off of them in the short term was so alien to the way she though of
Real Estate that not only did she cut the conversation short, but she never
even asked me what it was I did to make money from houses without rehabs
or rentals!
Not a problem for me, I’m used to it, but then she told me, at length,
that she and her husband had refinanced their own home and used the
proceeds to make the down payment on a rental home.
In the same breath, she admitted that they weren’t making any moneythey were actually losing $200-$300 per month- on the rental.
“Oh,” I said, mirroring her, “and how much did your monthly
payment on your house go up?”
The short version is this: she’s out of pocket $250 per month more on
her own home mortgage, and $200-$300 per month on the rental. That
doesn’t include vacancies or repairs, or any hidden or emergency costs like
new roof, new furnace etc.
But she’s extremely happy that she bought the Rental with “No
Money Down”.
It’s sickening.
With No Money and No Credit!”
Here’s the lesson- get your training and pay for it with a smile. It’s
peanuts.
If she’d paid a few hundred to a few thousand dollars for even the
most basic Real Estate training, she wouldn’t be stuck taking money making
advice from accountants and mortgage brokers.
If you spend a handful of dollars and time on finding motivated
Sellers, you’ll make or save a FORTUNE on any house you buy.
She paid full price for two houses, and loses $500 per month plus
Rental expenses. She has no new equity from the new house, and no new
cash flow. But she’s convinced she made the right move!
When I tell people that the worst thing you can do is take advice from
broke people, I mean it. She’ll lose about $20,000 before she even reaches
break even on her new rental. Not to mention how much money she lost by
paying full price.
Learn the House Business. Yes it’s a shameless plug, but I honestly
would be upset if I found out you got an inferior education and lost your
shirt, or even worse, never even got started. I believe I have the best system
to teach you.
To learn more about the House Business Bootcamp, call my office, at
561-762-2311. We’re nice people, I promise, and no one will ever hard sell
you. Frankly, I run my Teaching Business the same way I run my House
business- I’m not trying to convince anyone to do something they don’t want
to do, I’m looking for the people who already want to work with me.
The course was very easy to understand and follow. I like Jason’s approach to the
real estate business and his tips and suggestions are very helpful and have motivated me to
start my own real estate business.
I have already started thinking about my short and long term goals and have decided
to reach for higher standards!
-Theresa Miller, Wellington, FL
“How to Buy Your First or Next Home…
Dear Jason,
The Bootcamp was exactly what we needed to get
ourselves in the right path. We are already receiving phone
calls from interested Sellers. We also learned how to manage
these Sellers once we get them on the phone.
out…
It’s great to know there are more ways than one to cash
Thank you for all your advice on selling my house. I was able to sell my house
during the end of year even with people being busy with their holiday season.
You definitely have a unique system to have a real estate business. I know many
people who have tried to do it with someone else and they stop after not making any
substantial amount of money. If any body with GUTS wants to make money with real
estate then your system is for them.
This like all real-estate transactions has been a learning experience with a
financial motivation at the end.
- Andres Escobar and Lucia Valdez, Boca Raton, FL
Here’s a copy of the check for $69,466.30!
With No Money and No Credit!”
“We had the worst run of bad luck you could have, and we were in debt up to our
eyeballs! I just couldn’t keep up with tenants and repairs and taxes and everything
anymore. Jason’s system couldn’t have been easier. I’m enjoying the money a lot more
than I ever liked having renters!” -John Edditch, Palm Bay, FL
Landlording Sucks!
You know now two of the most powerful strategies for generating
upfront cash profits. I’m going to switch gears a bit now, and show you how
to build up longer term deals, without cash or credit, and without liability or
wasting time.
In fact, I’m going to save you from the landlord trap forever.
I’m going to get a little bit crazier here, this is going to be some stuff
that’s going to really challenge the way you think Real Estate is done.
The next technique you need to learn is how to buy properties by
taking over debt. Taking over debt is how you make big money from
beautiful houses in beautiful neighborhoods.
In a Debt-takeover deal, you don’t need to go down to the bank and
get a loan because you use the existing financing to fund the purchase.
But here’s the neat part about it; you didn’t have to put any money in,
you didn’t use any of your credit, took very little of your time, and you’re
not on the loan or if you’re doing it right, in public record anywhere.
You have complete secrecy of ownership, and it doesn’t show up on
your credit, In fact, it has nothing to do with your credit, no one will ask.
There are two ways to take over debt. When you use technique
number one, to takeover debt on a beautiful house in a beautiful
neighborhood, you own it. You bought it.
“How to Buy Your First or Next Home…
Here’s how it works.
When talking to a seller, if you find out that the biggest motivator for
that seller is getting out of that monthly payment, you say, pretty simply,
“well, it doesn’t make sense for me to pay you that much cash, maybe I
could make your mortgage payments until the house goes up in value
enough for me to pay you that much. Does that work for you?”
If he says yes, all you’ve got to figure out is which technique to use.
Technique #1: You can go to a seller, place a deed in front of them
and say, “this is the piece of paper that transfers ownership from you to me,
sign right here.”
And the minute he puts his or her name on there (both of them if they
are married), you own that house.
The minute they sign that deed and you accept it, you own everything
in it, you own the air above it, you own everything around it, everything in
the yard, the dirt in the ground, and everything below that. If you were to
strike oil, you own the oil.
Now the big thing that everybody says is, “What about the bank?”
Let me ask you, would the Seller ever have seen a nickel of the money
due to the bank anyway? No. It has to be paid eventually, and you would just
have had to go down and replace one loan with another.
Have you ever made a mortgage payment for a friend or a relative
who needs help? If you have, you know the mortgage company doesn’t
grumble at all. They don’t care if it’s a different name on the check, as long
as it shows up on time. They don’t care.
With No Money and No Credit!”
Of course, when you’re buying a house and leaving the loan on it, you
do have to make sure you make it clear to the seller that the loan will stay in
their name, and you MUST get something in writing that says they are aware
of that. It’s called a C.Y.A. letter.
C.Y.A. stands for Cover Your Assets.
The reason you need to protect yourself, is because a bank can “call a
loan due.” It says in the mortgage papers “we have the right to call the loan
due.” Which means, “If the house is sold we have the right to say give us our
money.”
Now, will they call the loan due? No.
Not a problem. In fact, there are a lot of reasons why, but the biggest
reason is, the bank’s in it for the money.
Banks hate real estate. For a bank to take back a house is like a person
getting the plague.
They have all kinds of rules and regulations that say they can’t lend
out more money until they get the money they already lent out back. And it’s
about 10 to 1.
That means, if they have one $200,000 loan that goes bad, that’s $2
million dollars worth of money that they can’t loan out. That’s the way the
business works.
Don’t you wish you owned a bank? It would be nice to earn 7-8%
interest on $2,000,000 with a $200,000 investment. Where do I sign? It’s
amazing, but that’s how banks work.
“How to Buy Your First or Next Home…
So all you have to find is a seller who’s more motivated by getting rid
of that payment than about getting a big chunk of money, and let them Deed
the house to you.
Q: What kind of Seller does it take to do this?
Well first off, many Sellers who have bought their house recently
don’t have enough equity to sell it.
If you haven’t stopped to think about it, you may not realize that it
costs about 10% of the property value to sell a house. Most people don’t
realize that.
Whether they hire a Realtor and pay them 6% (plus get a less than full
price offer), or they just get beat up on price by people who feel they are
deserve that bit of equity because they’re selling For Sale By Owner,
They’re not going to get 100% of the value.
On top of that, they’re going to have to pay closing costs, they’re
going to pay the taxes, insurance, and utilities every month until this baby
closes.
All that adds up to mean it’s going to cost about 10% to sell that
house.
Have you ever stopped to think how many people get 95%, 97%,
100% financed for houses? I’ve even seen as high as 107% financed
purchases! They’re everywhere.
With No Money and No Credit!”
Do you realize if a Seller is 90% or higher financed on a house and
anytime within the next year they have to sell, they can’t!
Not without you.
And in may cases, even if they have 10% or more in equity, they still
can’t sell because they have to hold out for full price just to break even, and
they can’t afford the monthly payments long enough to wait for full price!
It’s a very bad position for a Seller to be in.
And it’s especially bad if they still live there. Because houses with
people living in them sell for less than vacant ones. That’s just the way it
works.
Because even though the Seller likes it, most people don’t like the
lime green vertical blinds, they don’t like the slightly worn carpet, or the
smell of the cat’s litter box.
It’s fine for the Seller, but not for prospective Buyers.
So, how many people are there? Let me ask you, how many houses
did you drive by on your way to that J.O.B. this morning that are 90+ %
financed? How many 10’s of thousands of houses are over-financed, or have
Sellers that can no longer afford the payments?
I haven’t even touched on Foreclosures, I haven’t gotten to
Bankruptcies, we’re not talking about Divorces, Probate cases, Evictions, or
Junkers.
“How to Buy Your First or Next Home…
I’m talking about regular For Sale By Owner Sellers who have a
really, really great reason to sell you their house. Because they can’t sell it
any other way.
Thousands of them in every city. If you put out the advertising and
wanted to buy them all, you couldn’t hire enough people to take all the
phone calls. They’re everywhere.
say,
And all you have to do, to get them to agree to a debt takeover deal, is
“It doesn’t make any sense for me to pay you that
much cash. Would it make sense for me to make
your mortgage payments for a while until the
house goes up in value enough for me to pay you
that much cash?”
For those people, (and some of them are very, very savvy individuals,
so I don’t want you to get the impression that this only works on people that
don’t know what they’re doing. In fact the smarter they are, the more they’re
going to go for this deal) it will work just like this.
This guy’s whole motivation in life, he just got retired and divorced in
the same year. He had a vacant house that just was bad memories and he
wanted out. He thought the house was worth about $180,000 and I agreed
with him. He owed $160 against the house and it needed some cleanup.
It wasn’t “ugly”- but it was rough around the edges. It had 10 year old
carpet, it actually needed about $500 worth of roof work. Some new
appliances. Good stuff like that. But nothing serious.
With No Money and No Credit!”
And this was a nice house, this was a very pretty house. It had a
garage, a heated swimming pool, screened in patio. A beautiful place with
about 1,800 square feet.
The seller said, “I just want out, I got all my stuff in there, and I need
enough money to get an apartment.” I said, “I think I could work with that.”
I gave him $2000, and bought the house “Subject-to” the existing loan
of $160,000.
Then, I quickly marketed and sold it to a Lease/Option Resident
Buyer (doesn’t that sound so much better than “tenant”?) for $211,700.
That Lease/Option tenant brought in an $11,000 Option Deposit, and
because I already gave my Seller $2,000, out of that $11,000 I made $9,000.
I made about $100 a month Cash Flow off that house, which is pure,
real profit for me because the Lease Option tenant takes care of everything.
The people who are your Resident Buyers (or Tenant Buyers,
whatever you call them) are most often really, genuinely good people.
In fact, the woman who bought that house from me is the branch
manager of a Fidelity Federal Bank. She couldn’t get a loan from her own
bank to buy that house because she has a variable income, meaning some
months she makes less, some months she makes more.
And even though the minimum amount of money she makes in any
month is more than enough to qualify for that loan, the interest rate she’d
have to pay on the loan, because of the variable income, was high enough
that she had to wait until she could get a lower rate.
“How to Buy Your First or Next Home…
When she finally purchased the house from me, it appraised for
$232,000. She’s buying it from me for $211,700.
Who got a good deal? She did.
I also made $9,000 up front, just for putting her in, $100 per month
the whole time she’s there, and about $40,000 at closing. This is like
wholesaling a house, waiting a while, and then selling it for full price!
I got depreciation, interest deduction, all the other goodies, and you
want to hear one of the coolest things? I started in this loan in the fifth year.
So I pay down that loan by $250 per month. When it Sold, I got that $250
dollars per month (for 20 months) as extra profit at closing from the reduced
payoff amount of the loan!
Does that make sense? I get all the benefits of owning this place. I
just didn’t have to risk any money, didn’t have to use my credit, took very
little time, and I am not liable for anything.
Here are the questions I’m usually asked;
Q: How long did you give her to actually purchase the
home?
A:
2 years.
Remember, I offered her a price of $196,000 within one year, but she
asked for an extra year, just to be sure. I said “okay, great. But it’s going to
have to be more.”
With No Money and No Credit!”
She said, “okay, how much?”
“$211,700 (AN AMOUNT I MADE UP ON THE SPOT!)
“Okay,” she said. And it was done.
Q: Who takes care of the property?
In a Lease option deal, the tenant does everything.
In fact, the Resident Buyer of that house called me one month and
said, “The rent is going to be a little bit late because I had to fix the roof.”
I said, “Well, as long as it’s in by the end of the month, you only get
hit with the regular late fee. Just make sure you keep me posted as things
progress, and I won’t have to file an eviction notice.”
know.
If the rent is going to be paid late, I am not a mean guy, I just want to
I’m tied to this property, so that payment still had to go out even
though she didn’t have hers coming in, (by the way, I was already over
$10,000 up, so it was her money that made the payment) and I am going to
collect the full payment and the late fees, otherwise it’s going to be late
every single time.
On another property recently, I had a tenant call me and say, “I had to
re-do the whole septic tank. It was just about $10,000. Should I send you a
receipt?”
I said, “No, but you keep it for your taxes.”
“How to Buy Your First or Next Home…
She fixed it herself. She doesn’t own the house. These are not renters.
And I will caution you, there’s a couple of things you want to do when
you’re looking for Lease Option tenants, the people who are going to be
buying the houses from you.
Never, ever say the word “rent” in your marketing, or you’ve got the
wrong person.
If you tell them they are going to rent the house from you until they
buy it, the right people are upset! And if they’re the wrong person they say,
“okay.”
You don’t want renters. I don’t want anybody who even
thinks about rentals living in any of my houses. I want people who want to
buy the house, who have most of the resources to buy a house, but just
haven’t been able to get the credit together or put a big enough down
payment together to buy a house the traditional way.
Connecting the Seller who wants out with the
Buyer who wants in is my job.
Q: Is this an Owner Carried Mortgage?
No. There’s no note to be carried, the bank’s still got a Mortgage
against the property, but it’s not in my name, it’s still in the Seller’s name.
If those payments didn’t get made, for any reason, the bank would
foreclose and guess who’s credit would be screwed? The Seller’s.
With No Money and No Credit!”
Q: Do you make a payment to the Seller, or to the Bank
directly?
I send it directly to the bank.
If the Seller ever asks how they’ll know you made the payment,
simply say, “Mrs. Seller, you know I’m here to make a profit. In fact, the
least I’d be willing to make is $25,000 or there’s no reason for me to get
involved. So I’ve got at least 25,000 reasons to make that $1,485 payment. If
it’s late, you’ll get a notice.”
If they still push to get the payments themselves, I offer to make the
check out to the bank, and sent it to them every month. That way, they can
take it out of one envelope, and put it in another and send it to the bank. But
really, why bother?
Q: What’s the seller’s motivation for putting his credit
on the line?
His credit was already on the line. I just agreed to make the
payments.
In this case, he wasn’t living there. He had a vacant house sucking
him dry every month. I stepped in and said, “Here’s what I can do for you.”
“How to Buy Your First or Next Home…
He said, “Great. How do I do this?” And he signed the disclosure
form that said he understood. And it also said if this bank chooses to call the
loan due, Jason’s not liable. And he understands that too.
Let me say this, in the over 120 houses I have bought and sold, no
bank has ever called a loan due. But it could happen, so I make sure the
Seller knows and I get it in writing.
I say, “I need you to understand that this could happen and I need you
to put it in writing. There it is, I’ll need your ok at the bottom.”
Q: Are you saying you buy the house right there at the
kitchen table?
Absolutely. Right at the kitchen table. Does that hurt to learn, that you
don’t have to go through all the B.S. and Title companies and banks and all
the other crap you may have been spoonfed by other so-called experts?
You know what the hardest part about buying a house is?
Honestly, the hardest part about buying a house is finding a notary.
Because you’ve got to get the paperwork notarized before you can record it.
It’s going to be the number one obstacle to overcome in the house business.
That’s why you and everyone you know that invests should all
become Notaries. It’s only $60 or $100 dollars, and then you can Notarize
each others’ stuff.
Q: So you’re just an in-between person.
With No Money and No Credit!”
I am not an in between person, I own that house. I am as much of an
“in between” person as if I bought the house with a new loan, rented it out
for 2 years, and then sold it to a new Buyer.
I know it’s hard to accept, BUT I OWN THAT HOUSE AS SOON
AS THE SELLER SIGNS THE PAPERWORK.
If you went down to public record you would find the name of my
Land Trust as the Owner of Record because I own that house. I just don’t
sign for the mortgage.
You know what would be nice, if he could deed me the house and the
mortgage goes away. But it just doesn’t work that way. The bank still has to
get paid someday. So, we’ll put that someday whenever we want it.
Keep this in mind, he didn’t live there, he was now making two
monthly payments (where he did live and this house), and he knew next
month, he wasn’t going to be able to make that payment.
Could I do worse?
How much worse than not making the payment could I do?
Q: How did you find him?
I saw this For Sale By Owner sign just hanging down, sort of
swinging in the breeze, and picked up the phone and I called it.
“How to Buy Your First or Next Home…
The house looked like a perfectly good house, but it looked like no
one had been taking care of it. The yard had kind of gone to seed. A couple
of dents in the garage door. Nothing major, but sort of the look that no one
has been here in a while.
So I called him up and said, ”what are you asking for the house?”
because I’d just been in the neighborhood, I kind of had an idea. In fact, I
was sort of checking up to see what another house in the neighborhood was
worth, to see if maybe I was wrong.
He said, “well, it should be worth $180,000 but it needs a little bit of
work. I am asking $160,000.
I said, “Oh. Where did you come up with that $160,000 price?”
He said, “that’s what I owe.”
I said, “I can work with that.”
Then I managed to pay him $162,000 because it’s worth $2,000 for
me to get him to get his stuff out. Because I am going to have a harder time
selling it with stuff in there. So to me, taking the $2,000 out of the money
that I am getting anyway is much less of a problem than getting him to get
his stuff out.
With No Money and No Credit!”
Dear Jason,
In the three weeks after learning your system, I bought 5 properties worth over half a
million dollars!!
Since then, I’ve also bought a 4 bedroom house for myself and my wife and kids,
and got paid $16,000 at closing when we bought it!
I can’t possibly tell you how this training has changed my life. As a soldier in the
U.S. Army, it’s nice to know that even if something happens to me, my children and
family’s future is secure.
I also take great pride in knowing that I’ll never have to settle for “average” ever
again!
-Mike & Kathy Garza, Palm Bay, FL
“How to Buy Your First or Next Home…
Debt take-Over Part II:
Lease Option
There’s one other way. For sellers who are extremely credit
conscience, you’ve got two choices;
Number 1: Forget it, it’s not a deal, you’re probably in the wrong
house, talking to the wrong type of Seller.
An Unmotivated Seller isn’t the person that you want to be talking to.
Let them sit for a while, and after they eat a couple more mortgage
payments, maybe they’ll come around to our way of thinking.
Number 2: You Lease Option it from them.
It works just like this:
“I agree to buy it from you for your asking price.
In the meantime I am going to Lease it from you
for the amount of your payment.”
“I didn’t buy the property yet, so the bank can’t get grumpy. If I screw
up, you can Evict me, just like you would have to with any other Renters.
Only I’ll take care of all the maintenance and I’ll guarantee your payments.
How does that sound?”
With No Money and No Credit!”
If you’ve got somebody that’s just stuck on the issue of their credit,
what else can they do? They don’t have too many choices.
You’re not affecting their credit. You’re doing the same thing a renter
would do if they tried to rent it out. The difference is you’re going to take
care of the place and you promised to get his taken care of so they don’t
have to think about it anymore.
And that’s the number one reason why sellers will sell you houses.
Q: Why would they give up the appreciation on the
property?
Sellers don’t give you anything, sellers trade equity for peace of mind.
You just need to be there when it happens.
Q: If I Lease Option it, how do I get the money to pay
the mortgage?
You Lease Option it to somebody else. It’s called a “sandwich lease”
(with you as the lunchmeat in the middle, I guess) if you want to get
technical.
I just Lease Option a Lease Option. My contract has the right to sublease built right in. But my Sellers know full well exactly what I’m doing.
Remember, I’ve already told them I need to make a profit or there’s no
reason for me to be here.
“How to Buy Your First or Next Home…
They know what I am doing. I say, “I am going to Lease Option the
house from you from you and I am going to get somebody in there to start
making those payments. Then, as soon as I can, I am going to get it cashed
out.”
Here’s some key words to tell your Seller, you might want to write
these down.
“I don’t get paid until you get paid.”
If they’ve got any equity coming they don’t get it until somebody
cashes us out. When the buyer cashes me out, any equity still coming to the
seller goes to them. So they know I am going to have to sell it, thus; “I don’t
get paid till you get paid.” It’s just that easy.
Q: When Selling a House on a Lease/Option, who pays
the property taxes and insurance?
The owner.
That means if you bought it “Subject to” the existing finanincing,
you’re the owner, so you have to pay property taxes and insurance.
If you Lease/Optioned it from the Seller, they’re paying the property
taxes. It works just like a regular Lease.
However, I’ll tell you, if the Seller is supposed to be paying the taxes
and insurance, YOU better make sure it’s actually getting paid!
With No Money and No Credit!”
Q: What percentage of the time do you hire an
appraiser?
Only if I’m uncomfortable with the value, and I’m willing to spend
$300 to get the answer.
Remember, In every single one of your Pretty House flips, they’re
going to have to get an appraisal anyway. On Lease/Option deals, it really
doesn’t matter, because the value has a year or more to get where you
projected it.
In the Fast Cash Course, I cover how to get the value of a house. It’s
one of the things that we in the business just take for granted, because once
you’re in the business figuring out the value is pretty simple.
You know, you just find out the Sale price of all the similar properties
in the area, average them all together, and you’ve got a price. It sounds
simple, it is simple, but it’s a little complicated to get the info.
You can get the “Comps” yourself (Comps are the “Comparable
Houses” that have sold). Or, like I do, you can have a friendly Realtor give
you Comps. In fact, if that Realtor is sending you Ugly House deals, or even
occasionally helping you Sell Pretty house deals, they should be willing to
pull comps, too.
I have a similar arrangement with my Realtor for Selling Houses that I
have with the people I Option houses from. When I put the house up for sale,
I tell my Realtor I have it up for sale, and he tries to sell it.
If he Sells it for an acceptable price, he gets his commission. If I Sell
it first, he doesn’t.
“How to Buy Your First or Next Home…
And he’s excited to have this much business, because when you’re
doing 20-30 houses a year, that’s 20 -30 checks in his mind.
So if he only gets 10 of them, is he going to cry? No. It doesn’t really
cost him anything, and he makes a few thousand dollars a month in
commissions.
With No Money and No Credit!”
How to Give a Seller Top Dollar, and Still make More On
That One Deal Than Most People Make In a Year
With Real-World Seller Financing
Now, there’s another group of Sellers that for one reason or another
want to get some money out of that house, they’re not willing to just walk
away.
They want to get something for however long they’ve been in the
house, and any monies they put into it.
Well, give it to them!
When you have Sellers who want more for the property than they
owe, you can just agree to a higher price.
Here’s how it works;
Imagine you’re buying a house “Subject-to” the existing mortgage. If
the house is worth $200,000 and they owe $120,000 the odds of them just
handing you $80,000 in equity aren’t very good (but please, give them the
chance. It does pay off occasionally).
If they won’t sell it to you for the loan balance, ask them, “What’s the
least you could take?”
If they’re willing to take $180,000 or less, you might still be
interested. Remember, you have to have some kind of a discount, or there’s
not really any reason for you to get involved.
“How to Buy Your First or Next Home…
You simply say, “Great, well how about I do this. How about I make
your mortgage payment, till the house goes up in value enough for me to pay
you that much in cash?”
Whatever their price was, you just agree to pay them the loan balance,
plus whatever they want in equity.
In my example, the house was worth $200,000 and they would accept
$180,000 as a “Subject-to” purchase or a Lease Option. If you were to resell
the property on a two year Lease Option for $229,000 you would make
$49,000- on a house you don’t own!
In this case, if they agreed to a price of $180,000 and they owe
$120,000, then when your resident Buyer cashes out the property, the Seller
gets their loan paid off and a $60,000 profit. You get the rest- $49,000!
Whether it’s a Lease Option, or Subject-to the existing financing,
either way, just agree to pay the Seller more than loan balance and you can
pretty much let them pick their price, as long as you have some “wiggle
room”.
With a Lease Option, you just write a different number on the forms.
That number is the loan pay off, ($120,000 in this case) plus the amount of
equity the Seller wants ($60,000).
When you buy a property Subject-to, you simply file a second
mortgage against that house for the amount due to the Seller.
It’s one piece of paper, and a few dollars in recording fees. That’s it.
You’re not talking big money here. If it was big money, there’d be no point
in doing it, because there’s too much free money floating around!
With No Money and No Credit!”
Understand this: whichever
way you do it, you have just
created zero interest Seller financing for the balance
due!
Your payment hasn’t increased a nickel above the Seller’s monthly
payment even though they have more money coming to them when you sell
it- this gives you an incredible opportunity, because you can buy and Cash
Flow properties that you never could with traditional financing!
I remember one property I bought where I had a $2,074 per month
payment, including taxes and insurance, on a $410,000 house! The market
rent was $3,000. Talk about Cash Flow!
Q: Why do I have to call it “loan balance plus $60,000?
Why not just write it up as $180,000?
If you agree to pay $180,000 for the house at the time of sale, you’ll
pay exactly that- $180,000.
BUT, if you agree to pay “loan balance at time of sale plus $60,000”,
you get to profit from the paydown of the loan from all the payments you’ve
made- and that can be substantial, especially on a long deal of several years!
In fact, this one technique will add several thousand dollars to each of
your deals, just by changing the way you fill out the forms!
On the deal I discussed, the 20 payments paid off an additional
$4,500. At closing, that was extra profits to me!
“How to Buy Your First or Next Home…
How to Do Your Deals to Get More
of What You Want- MONEY!
term.
So you can buy Pretty houses now, and you can profit from them long
When you pop in your Lease/Option tenants (remember to call them
Resident Buyers so they’ll respect you in the morning) you have a decision
to make; “Do I want more money now or do I want even more money later.”
You can trade away “Future price” for a bigger Upfront Deposit from
your Resident Buyer.
It’ll go something like this…
“Mrs. Resident Buyer, I tell you what, I know you said you only have
$7,000 dollars to put down as an Option Deposit, but did you know you can
get a cash advance on your credit cards? If you could come up with another
$5,000 as a Deposit, I’ll give you $20,000 dollars off the price of the house.”
Now, remember that the price we’re talking about is two years from
now’s price. It may or may not even happen. If you’re in a hot, fast
appreciating market, that’s a great deal for them. Incredibly great deal, and a
lot of people scramble to come up with the $5,000. They borrow it from
friends and family, and they get a great deal IF they buy the house.
You are getting $12,000 now, instead of $7,000. For a lot of people,
$5,000 is the difference between getting to that back end check or going
bankrupt, or eating beans out of a can, or even just working a 40 hour a
With No Money and No Credit!”
week J-O-B (Do you know what JOB stands for? Just-Over-Broke… Robert
Kiyosaki taught me that, and it cracks me up.)
If you need money now, go get money now don’t worry about
$30,000 instead of $50,000 grand some day in the future. Because
there is no future, there is no check.
if
But you might not want a whole lot of money now, at the expense of
future profits, because you’re looking to build your net worth. You want to
get rich in real estate, right? That’s why we’re all here.
Truthfully, I don’t even know how to tell you to “just make some
money in real estate.” It doesn’t fit. I can’t do that. I can’t put you in a job,
but I can tell you how to make a lot of money and do it simply and pretty
quickly.
“How to Buy Your First or Next Home…
How to Increase Your Monthly Cash
Flow 2-5 Times,
Even on Houses You Already Own!
If a Resident Buyer can afford to pay a little bit extra every month, I’ll
give them a credit toward the purchase of the house.
Not all of the monthly rental payment will be credited, but I do offer
incentives. For instance, if I know what the monthly rent minimum is going
to be, if they can pay more than that, I’ll credit it towards their down
payment or towards the price of the house.
Frankly, the more money they want to give me now instead of later,
the more I am going to take. There are several good reasons for this.
First and foremost, it’s the time value of money. Two hundred bucks
now is worth a whole lot more than 200 bucks later. Inflation, Deflation,
sure- but more importantly, what could I be doing with that money now, to
make it grow? It’s a heck of a lot more than the 0% interest I get in the
meantime if I wait for it.
The second thing is, with a Lease/Option Buyer, there’s no guarantee
they’re actually going to buy this place. So wouldn’t it be nice if they gave
me all the money now, then moved out, so I could sell the house on a
Lease/Option again, this time for even more?
With No Money and No Credit!”
In fact, you can structure your Lease/Options in such a way that you
reduce the chance they’re ever going to buy it. This is GREAT for handsfree long term hold properties.
If you put a Resident Buyer on a 5 year Lease/Option, there’s a
miniscule chance that they’re going to buy that house.
You know why? Because life happens. How long would a person own
a house anyway? 4, 5 years?
Odds are they were going to go buy another house anyway. So you
just make their Option to Purchase so long, they never get around to buying
yours.
You get to keep the deposit, keep the monthly cash flow, and do it all
over again! You have 5 years depreciation, 5 years interest deduction, 5
years more pay down on the loan, and best of all, 5 years more appreciation
when you put it back on the market.
Let’s see, you’ve made small amount of money up front, a steadily
increasing monthly cashflow (as the rents increase every year, but the
payment stays the same or close to the same), great tax benefits, and a
HUGE and ever growing profit should you ever cash out!
And you’ve dome it without using your credit, with no downpayment,
no landlording, no risk, and you’ve already made an upfront profit! I mean
it’s a dream!
Let me answer some questions before I go on:
“How to Buy Your First or Next Home…
Q: Do you always have a lot of people that want to
Lease/Option houses from you?
Yes. The last time I ran an ad that said, “Owner Financing or
Lease/Option”, I got 800 phone calls in 30 days.
800 phone calls. I’ve had as many as 1,000- the difference was the
price of the house.
How many of those people were real players, people who had the
capacity to buy the house the way I’m presenting it? About half of them. But
the reality is it only takes one.
I won’t even talk to them all, I’ll probably talk to 8 or 10 people. I’ll
get applications from ten people before I decide to call that one back.
And then, using the other 9 people, I have a Buyers list for the next
house I buy in that same neighborhood. So if you want to “own” a
neighborhood, you only have to run the ad once to buy all the houses in your
neighborhood that you can work a deal on.
There’s no reason to go all over town, or especially all over the
country. Just focus on your area, or an area you want to live, if you use these
techniques to buy your own home.
With No Money and No Credit!”
Selling Houses- FAST!
It’s a similar process to find a Lease/Option Buyer. Obviously there’s
more steps because there’s more variables, but really it’s very, very simple.
First, I set up a recorded message that gives them the details,
directions, and tells them to call my live number from the sign in the front
window of the house.
Then, after I make sure the sign is in place and someone will answer
the calls, I run an ad, or put out the signs.
In my business, I have someone else who does all of this, but when
you’re starting out, it’s best you do it yourself a couple of times so you can
get a feel for how the system works.
Then, when people call the voicemail, get the directions and
description, and like the look of the house from the outside, they call and we
give them the lockbox code so they can go inside.
By the way, you can get a lockbox at Home Depot for about $30. It’s
really not mysterious.
When they go through the inside, they decide if they like it, and they
can get a flyer with all the details, and a Buyer Easy Application from the
kitchen counter.
Then, if they like what they see, they can fax a filled-out copy of the
Buyer Easy Application to my office, and we’ll check them out and see how
we need to sell this house!
“How to Buy Your First or Next Home…
Truth is, many people THINK they have terrible credit and can’t get a
loan, but a good Mortgage broker can make it happen.
If they like the house, and want to buy it, they simply fill out and fax
or mail the Application in, or, they can just give their information over the
phone to the person taking the calls.
Did you remember that I’m asking more than full price for the house?
Well, interestingly enough, I often have people who want to go ahead and
buy it, for my full asking price, right away!
And here’s the incredible part- 90% of the time, if I have a Buyer’s
agreement to pay that inflated price, and I want to Sell for that price, the
Appraiser confirms that the house is truly worth that price!
I’ve sold $155,000 houses for $170,000 for the better part of my
career! And I’ve sold $575,000 houses for $629,000 too.
And financing these days is ridiculous. I’ve had Buyer’s with terrible
credit scores and bankruptcy on their credit report get 100% financed to buyat MORE than full price!
No earthly justification for a guy who declared bankruptcy a year ago
and has a 570 credit score to get 100% financed.
It’s as if the Bank has said, “There’s no reason to believe he’s ever
going to pay anybody, so here’s $150,000!”
time.
Seriously, these “bruised credit” Buyers buy houses from me all the
With No Money and No Credit!”
The first person that sees their application is my mortgage broker, he
calls me up and says, “Yeah, we could do it.”
I said, “Are you kidding me? Is this a joke?” did I miss the punchline?
This guy can get 100% financed?”
And then I’ll get a phone call from a friend or a Student saying, “Man,
I can’t get this house sold.”
Are you kidding me? The reason this house won’t sell is you! I
promise! Remove yourself from the equation and they go like hot cakes!
How do I know this?
I suck at selling anything. Especially houses. The only way these
houses get sold is I am not involved.
Sometimes, if I’m going to put flyers in a house or something,
somebody coming to look at the house sees me there, and I get out quick.
There’s no chance I am going to talk them into it. It’s just not going to
happen. The last thing they want is you breathing down there neck while
they’re looking at this house.
Sometimes I don’t talk to them until Monday and they may have
looked at it on Friday. So there may be a couple of days between when I get
their application, they get approved or at least my mortgage broker looks
them over to make sure it’s going to work.
And then on Monday I call them back to say, “Great let’s get you
started!”
“How to Buy Your First or Next Home…
And they’ll say, “I looked at the house on Friday afternoon, and I just
loved it! And, well, I hope it’s ok, but I came back on Friday evening to look
again, and on Saturday morning I let my niece in, and my daughter came by
on Sunday, and we all sat in the living room and decided where the furniture
is going to go.”
Am I going to go to this house 4 times to let in her niece, and let in
her daughter, and let her in, and then she’s got to ask her husband so he’s
going to come by? No way!
I’d be driving my life away! I’d sell one house ever two months if I
was lucky and put 10 million miles on my car and be a burned out wreck.
But they can get in anytime they want as far as I am concerned.
And if they like the house, and they have good credit, money, or both,
they’re in! It’s just that simple.
Remember, the number one reason why houses don’t sell is the person
trying to sell them. Guaranteed.
With No Money and No Credit!”
Finding Pretty House Deals
I already covered Finding Ugly House deals, but here’s a quick recap;
Drive through neighborhoods where the houses retail, in excellent
condition, for 2/3 of the Median Home Price in your area, or less. Find the
addresses of the Junkers, and write the address down.
Then find the seller. The easiest way is to get on the tax records and
see who owns it, then call information and get their phone number. You
know their name, you know their address, find them. Not that hard.
I have a friend who buys 5 or 6 deals a year, all Ugly, and he works
extremely part time. He has no job, no outside advertising, he just knocks on
doors.
Whenever he ends up in a neighborhood and he sees a Junker house,
he just goes up and knocks on the door and asks them if they’d like to sell
their house for cash. That’s it.
I prefer, just so you don’t waste a lot of time, that you find the ones
that are vacant. Because if a house is ugly, and vacant there’s a pretty good
chance they don’t want it anymore, but if it’s Ugly and they live there,
there’s not as good of a chance.
Pretty houses are a little more tricky, because you can’t tell a pretty
house deal when you see it.
Remember, it’s the seller that makes it a deal, not the house. With
Pretty Houses, it doesn’t have anything to do with the house.
“How to Buy Your First or Next Home…
The house: irrelevant. The seller: very important. Does that make
sense?
Because if a seller’s motivated – all of these techniques can work.
Lock it up for a low price and flip it, or take over the payments and sell it to
a Lease/Option Resident Buyer. All of it will work.
But if the seller’s NOT motivated, none of it will work. It doesn’t
matter if the house is worth $2,000,000 and the Seller owes $2, if they’re not
motivated, you don’t have a deal.
Got it?
Pretty house deals are a little more complicated to find than uglies,
because you can’t tell it’s a deal just by looking.
Have you ever had the wonderful experience of driving to look at a
house you had no intention of buying? It’s like the investor plague.
I heard someone say, “You look at 100 houses, you make offers on 10
and you buy one.”
I say, “What’s the other 99 for?”
If I didn’t think I was going to buy them why am I looking?
I have yet to get a good answer. If you want to look at 100 houses be
my guest, I prefer they were ugly. Because then at least you have some
reason to believe you have a deal.
For pretty houses, the seller calls you. One of the best ways to get the
phone ringing is with those corrugated plastic roadside signs.
With No Money and No Credit!”
You know the ones, hawking everything from diet pills to Mortgages,
they are the biggest “bang for the buck”.
I’ve never had a student put out 100 signs and NOT buy a house. If
you shop around, you can get 18 X 24 signs, with the metal stakes to hold
them for about $3 each, maybe less.
Don’t shop around too long- don’t lose a week of making $10,000 to
$50,000 just to save $50. If you look online, you can check out
www.BanditSigns.Com. They’ll have what you need.
By the way, the sign laws vary. Find out what they are in your area,
preferably by calling the people who run the “We Buy Houses” ads in the
paper and asking them. They’ll tell you.
By the way, if it’s $300 for the hundred signs, and you get a $250 fine
on top of that, but you do one deal and only make $10,000 is it still worth it?
If you see signs all over in your area, it’s a safe bet you can put yours
out, too.
I’m sure you’ve seen the signs on the side of the road, in fact, you’ve
probably seen the, “We Buy Ugly Houses” billboards.
Billboards in a busy area are $6,000 or more a month, so I don’t
recommend you use it to get started. However, if it starts to make you
$20,000 a month, suddenly a billboard’s a great idea. But you might not be
there yet.
Another dynamite technique is mail.
“How to Buy Your First or Next Home…
You want to know how to get a list of Foreclosures, Bankruptcies,
Probates, and Divorces for free?
Where you live, there’s a legal newspaper where all of these cases
are published.
No matter where you live, it exists, because these types of cases have
to be published. It always has a different name, but if you ask a librarian at a
major branch of the county library, she’ll show it to you.
The library gets it every day for free, and they have a photocopier,
in case you don’t want to write them down by hand.
When you get sick of driving to the library everyday, get a
subscription. They deliver the names, the addresses, the loan amounts,
assessed value of the properties to your front step every morning.
If you knew nothing else but to pick up the phone, call information,
and call those people, you could make $100,000 to $1M next year just off
that. And that’s the hardest way to make money in this business.
When you’re cold calling, calling them out of the blue, you don’t have
any reason to believe they want to talk to you.
I have a friend named Mike Garza that bought 5 houses in 3 weeks
after I told him how to buy houses. Literally, I said, “If someone signs a
deed over to you, you own the house.”
He said, “really?” and got on the phone. And he bought 5 houses.
Here’s why- Mike was so green, knew so little about Real estate, that
no one would mistakenly think that he was going to take advantage of them.
With No Money and No Credit!”
In fact, one of the first sellers he dealt with came to pick Mike up and
drive him over when Mike’s car broke down on the way to the Seller’s
house!
Because when a person is going through Foreclosure, or Divorce, or
even Probate, they’re less concerned about how much they’re going to make
than they are about not being “screwed”.
They don’t want to make any mistakes, and they want the situation
taken care of. Only after those two are clear are they worried about “How
Much?”
It’s last on the list.
After those big initial successes, Mike got a little bit smart and
couldn’t buy a house if his life depended on it. After he got 5 of them under
his belt, he thought he knew everything.
He’d swagger into the Seller’s house and start talking.
The last thing they want to hear is talking. They want to hear a
solution and that’s it.
If you’ve met me, you know I’m not a high-key kind of guy. “Jason”
buys 9 houses for every 1 that “Home Financing Options” buys.
Because people want to deal with people.
And if I show up as Mr. Professional, there’s a good chance the deal is
dead. If a person’s in foreclosure the last thing they’re concerned about is
“How to Buy Your First or Next Home…
how much they’re going to make. The first thing they’re concerned about is,
“I better not get taken advantage of.”
But if you put something in the mail to them, a postcard, a letter, a
flyer, whatever you want, you get the folks who are really interested in
working with you to put their hands in the air and say, “Please call me.”
You just saved yourself about 9,000 angry hang-ups and people
cursing at you.
Some people will drive to the homes of people who are in Foreclosure
and knock on the door. I did it myself. I made money doing it. But it was gut
wrenching. It was hard, real hard. And every day I’d wake up and think, “I
don’t want to do this.”
But when they call you and say, “Yeah, I am in foreclosure. It’s really
pretty bad, I had medical bills and everything, and we need to get out,” and
you make it happen, that feels great!
I was working with one Seller who was talking on the cell phone to
his wife as he signed the paperwork, and said, “Baby, I think I’m talking to
Jesus! He’s the answer to our prayers.”
(He literally signed the deed on the trunk of my car, because neither of
us had the keys to get into the house.)
Because there’s not one investor in a hundred when you walk out that
door who can buy a house where the Owner owes what it’s worth.
Think about it from the Seller’s point of view. He’s sinking. He can’t
make two payments. He’s dying. Every night he goes to bed with an ulcer,
trying to figure out what he’s going to do with this house.
With No Money and No Credit!”
Every night him and his wife would argue over money, and I came in,
using what I’ve shared here today, and said, “I’m going to make your
payments for you, until the house goes up in value enough for me to pay it
off, is that cool?”
He was so happy, he didn’t know what to do!
But if you had to call all those people who will yell at you, or try to
insult you, or just plain tell you you’re crazy, just to get to that one guy,
you’re going to quit, I know you will.
I would have quit if I wasn’t just plain ornery!
Q: “In a Hot market, aren’t people getting lots of offers
on their houses if they’re nice houses?
Some of them are. But I see a lot of expired MLS listings, and those
are all houses that didn’t sell in the last 6 to 12 months.
Don’t believe the hype. There’s one reason and one reason only that
people will call you: they want the situation taken care of.
By the way, do you know the number one reason houses won’t sell?
90% of the time it’s the person trying to sell it!
The number one reason why people can’t sell houses, regardless if it’s
their house, or they’re a Realtor trying to sell someone else’s house, is the
person or people trying to sell it.
“How to Buy Your First or Next Home…
Let me give you a perfect example- have you ever had the wonderful
experience of calling For Sale By Owner classified ads as an investor? It’s a
technique you probably heard of from an infomercial Real Estate product
from the “other guy”.
Regardless of where you learned it, what were the results?
How many people actually answer the phone? How many people
answer the phone intelligently, ready to talk about a house?
Those are the same people that will tell you they’ve been trying to
sell their house for 6 months and can’t get it sold!
Probably if you’d answer the phone it would help. At least if they had
an answering machine. So many just ring and ring!
Q: Isn’t there a lot of competition from other investors?
Well, yes and no.
There’s a lot of noise from other Investors, but precious few people
actually getting any deals done.
Here’s what I mean- I buy between 30 and 40 houses a year. If
someone were to begin Investing in Real Estate, and do things the “other”
way- with banks and tenants, etc., how many would they buy? 2? Maybe 4
or 5 at the most?
It would take 10 or 12 of those guys to equal one “me”.
With No Money and No Credit!”
So, yes, there are lots of them, but very few who are really
competition.
Some time, to convince yourself that there’s no competition you
should get a Sunday paper. Then, call every phone number under “Real
Estate Wanted,” all the “I Buy Houses” type Classified Ads.
Your cover story is going to be that you’re building a buyers list of
people who are going to buy Junkers from you.
But while you’re doing that, pay attention to how many 3 year old
kids answered the phone, how many phone numbers rang with no voice
mail, how many voice mails picked up with nothing to do with real estate,
etc.
This is your so-called “competition.”
It’s not hard to distance yourself from the pack in this business, it’s
just not.
Q: Does the Buyer ever try to go around you and get to
the Seller, and cut you out of the deal?
It’s very rare, but it does happen occasionally. Luckily, that same
Affidavit and Memorandum of Agreement that stops the seller from selling
the house from underneath you, stops anyone else from buying it. So if you
think that’s a problem, just file it.
“How to Buy Your First or Next Home…
It’s very rare because the real “players” in the game, they don’t care
how much you make, they care how much they make. And the people who
are just blowing smoke, the talkers, are easy to screen out, once you get a
system for screening people.
I haven’t run the handy man ad in a long time, but when I run the ad I
get 300-400 phone calls in a weekend. Now out of that 300 phone calls, the
people I am actually looking for, are about 10% of them.
Here’s how I screen them out; I put the address of the house on a
voice mail and another sign at the house with my “live” phone number on it.
And I say, “If you want to call me about this house go take a look, if
it’s something you like, call the sign in the front yard and I’ll tell you all
about it.”
Because if they don’t even care enough to go look at the house, I
don’t care enough to talk to them!
I’ll let my voice mail talk to them for seven cents a minute. I don’t
work that cheap. I’m waiting for one phone call from the right guy. Just let
them screen themselves out.
Q: Where did you learn all this stuff?
I’ve spent about $80,000 on my Real Estate education, and followed
that up with many years in the school with the highest tuition- Not Harvard,
Hard Knock University!
With No Money and No Credit!”
I’ve had two separate Real Estate Mentors in my career, at different
times. It’s no good to “mix” advice, so if you follow mine or anyone else’s
plan, use it, don’t pollute it with other peoples’ advice.
Mixing up what everyone’s taught you means you’ll do what no one
has taught you- and lose any value of all that training.
“How to Buy Your First or Next Home…
6 Steps to Closing a Real Estate Deal
Here’s a check list to follow so you know if you did everything right.
I can rip through the 6 steps you have to take to get and close a deal.
1. You have to find somebody who wants to sell you a house. You have to
locate a suitable prospect.
2. Then you’ve got to make an offer or buy the house. Either get the deed
or get a contract, option, Lease/Option, etc.
3. Step 3 is, you have to locate people to buy it from you. It’s all very
simple, you just run the ads and the selling system as I’ve laid it out.
4. You have to get your check.
One way or the other when you bought this place you better get a
check. Because if you don’t have money now you don’t have money later. I
hope I kicked that one to death for you.
5. You have to celebrate!
Don’t forget this step! It’s the difference between people who get
another job in this business and the people who make fantastic money.
Here’s why; when you get your first check, everything in your life is
going to change. The way you think about money is going to change, the
way you think about life is going to change, the way you deal with people is
going to change.
With No Money and No Credit!”
Do you think if you made a check for $50,000 that you could go to
work on Monday morning with a straight face?
It’s going to be the toughest Monday you ever had. I put enough
people out of work to know. I am going to put you on the fast path to wealth,
and a critical component of that is enjoying the ride!
If you got a check for $5000 would it be difficult to go to work
Monday morning and spend 40 hours doing anything but going to get the
next check?
It’s a mindset.
Now, of course, if you love what you do, keep doing it. But wouldn’t
it be nice to be rich in the mean time?
Step 5 is celebrate – because so many people just get the check, and
all they’ve done is get a new job that pays more than the last. They have a
new wealth building system, but they never “feel” rich- or happy- because
they never enjoy their newfound financial freedom!
One of my first students, James Eynon from Lake Worth, Florida
followed the system exactly as I teach it.
James got a phone call from a seller, met her at the house, got a
contract on the house, and 3 weeks later, he got a check in his hands for
$16, 754. He put 10 dollars in, 5 hours of work, and made over $16,000
(James Letter to me, and a copy of the check, is on page 48)
My interview with James, plus a host of other goodies are yours free,
just go to www.homefinancingoptions.com and log in to the free articles
area. Listen to it if you need some motivation.
“How to Buy Your First or Next Home…
He said, “it’s the easiest thing I ever did.”
Well, James didn’t forget to celebrate! He went and bought a 4wheeler because that’s what he always wanted.
When he was a kid he always said, “When I am rich I am going to
have a 4 wheeler.”
It’s no coincidence that James has 3 more deals on the hook (just two
months later, by the way). One of those three deals has a spread of about
$100,000. Another one, about $80,000.
Once you open that flood gate, once you attach good things to getting
that money, an amazing sense of freedom and accomplishment sets in, and
everything you touch seems to turn to gold!
Hey, if you’ve got to pay your bills, you’ve got to pay your bills, I am
not arguing that fact, but I want you to be excited.
I didn’t start making real money in this business until I started
celebrating. That’s how I know.
I’ve got the biggest, pinkest house in the block. I’ve got a Jacuzzi I
never go in, and a swimming pool I’ve been in 6 times in a year.
But I’ve got them.
And it makes step 6 a whole lot easier!
Step 6: Do It Again!
With No Money and No Credit!”
I’m not sure why, but there are a lot of “one hit wonders” in this
business.
People who’ve made tremendous amounts of money quickly and
easily, and instead of doing it over and over, they simply stop their House
Business altogether!
It can be a rollercoaster ride, I know, but the biggest and most
important thing you can do is get your head on straight, your self-esteem in
check, and put your nose to the grindstone and fire up the Real Estate profit
machine!
See, this is a Business where people can and will save up there life
savings, borrow money from there friends and family, and give all of that
money to you- just to get their chance at the American Dream of home
ownership!
That can be one heck of a head trip if you’re not prepared!
It can be hard to understand that you really are worth it! That you’re
the best and highest use for their time effort, and of course, money!
And, psychologically speaking, you have to be ready for sudden
wealth.
For some people, making a lot of money quickly and easily will set
off every single bit of mental self-sabotage you can imagine!
I’ve had students that have made $60,000 on one deal in just a few
weeks, and then they’d sleep in until 3pm every day for three months, so
their subconscious mind could bring them back down to where they were
comfortable!
“How to Buy Your First or Next Home…
DON’T LET IT HAPPEN TO YOU!
Get that next deal coming, and keep yourself up on that horse, raking
in the bucks, and soon, it will be business as usual!
With No Money and No Credit!”
Maximizing Your Money and
Happiness
Did I teach you a lot here today? Did I change a lot about what you
think about the real estate business? Is it pretty obvious there’s a lot more to
learn?
Would it surprise you if I told you that I have a Bootcamp, where I
can teach you the whole business, inside and out?
I can’t squeeze it into a book, it would be very cool if I could, but it
doesn’t work that way.
In my House Business Bootcamp, which you can come to live, or get
the Homestudy version, you’ll learn everything you need to know to create
the life of your dreams. It’s thorough and complete.
Little things (or big things, depending on how you look at it) can be
the huge gap in your understanding, where you just go “argghh” and give up
and don’t do anything because you don’t know how to fill out the paperwork
if the Seller says yes.
I don’t want that to happen to you, that’s why I created this event!
And I’ve made this Bootcamp an amazing event. You get the entire 3 day
event, where you’ll learn all the details, and even the ultra-advanced
strategies that allow me and my students to create huge incomes and Net
Worth without tenants, banks, rehabs, or risk.
“How to Buy Your First or Next Home…
My goal is to get you up and running in the House Business so when
you have trouble, you call me and say, “Hey, Jason let’s do this deal
together!”
Then we can split it, so you get the experience and a check, rather
than letting you throw it in the garbage because you don’t know what to do.
Believe me, there are a lot of other investors out there who are
throwing money in the garbage, because they’re too afraid to spend the
peanuts it costs to get trained!
I know that I can get you in the business, and I can get you trained, up
and running, cashing checks and taking names. And when you run into a
snag, or just want me to hold your hand, I would love to split deals with you.
If you need the helping hand, I am here for you. And if you don’t need
the helping hand- you want to do it yourself, that’s cool, but I’ll ne here for
you if you need me.
If I could squeeze this much into 120 pages or so, don’t you think 3
days with me would be pretty revolutionary?
When I tell you how you can do these exact deals in your IRA it’s
going to save you 5 or 10 million dollars over the course of your life time
just in taxes.
When I tell you how to fill out the forms for these junker deals it’s
going to add $1,500 to $1,700 bucks to every deal you do for the rest of your
life!
With No Money and No Credit!”
The cost of that investment in yourself, if it’s an issue for you, is
probably something you’ve got to get over. You’ll lose many times what this
Bootcamp costs, because you don’t know what you don’t know!
So if you guys need the resource to get started this is the way to do it.
If you have somebody in your life that you know has to be on board or
it ain’t going to happen, bring them. Let me talk to them for a while, it will
make a lot more sense.
If you try to get your husband or your wife into it and you go home
and try to explain what I just said, they ain’t going for it. But if they sit here
for 3 days and hear every detail, they don’t have any choice, it’s too obvious.
Good luck in your new life of wealth and abundance, and may all your
children have rich parents!
Sincerely,
Jason Loucks
“How to Buy Your First or Next Home…
It Was 3:25 A.M. When the Idea Hit Me, and…
I Sat Bolt-Upright In Bed
And Shouted“This Changes Everything!!
Dear Friend,
It really WAS a dark and stormy night. As I laid in bed, I was wide awake, wondering how I
could have let you get away with missing my “House Business Bootcamp”, without so much as a
slap on the wrist.
That’s the event I sent you all the letters about, where I made all the “crazy” offers to try to
entice you to join me for 3 days and learn the Real Estate Business.
Well, you missed it. But there’s hope!
At the event, I spilled my guts about what it takes to make money in Real Estate, and shared
with anyone who wanted to learn the Insider’s Secrets that have allowed me and countless others
to make BIG money, working from home, on our own terms, and without risk.
I showed them a business like no other, where huge sums of money are made very quickly,
and by the time you finish reading this report, you’ll have those same tools at your disposal.
They’ll change your life, if you let them.
Heck, just on day one I taught them exactly, step-by-step, how to create a six-figure plus
annual income from Junkers without so much as lifting a paintbrush, or even driving past a
Home Depot- and I’m NOT talking about Wholesaling.
With No Money and No Credit!”
Several of the attendees told me I’d more than given them their $2,495 worth by noon on day
one.
In fact, Steve and Sarah Martin used my techniques to work their first deal- at lunch time on
the first day!!!
I mean, come on, 4 hours and they had a deal on the hook?! I’ve had some quick starters
before, but those two must have set some kind of world record!
By all accounts, everyone in the sold out room was absolutely awe-struck by the techniques I
shared for turning houses into $5,000 to $25,000- even $100,000 paychecks- without cash, credit,
partners, tenants, banks, rehabs or risk.
Just the techniques I use for getting more money than I could ever use to buy Real Estate,
without credit checks, loan committees, or even walking into a bank were worth ten times the
cost. And that was just ½ of day one!
That’s why this idea woke me up in the middle of the night! You need to know this, and I’m
just the guy to give it to you straight!
On day 2 I covered Lease/Options, Options, and Luxury Home Techniques.
THE SAVVY, “GRIZZLED VETERAN” INVESTOR at the back of the room had to sit up
and take notice. In fact,
He Leaped Up and Ran Out of the Room
Like a Bat Out of Hell!
I gulped hard, was it something I said? Did I do something to offend him?
After the next break, he cornered me by the elevator. I braced myself for the worst, but he
said, “Jason, I’m sorry about disturbing the class like that, but I had to get on the phone- I
was about to lose over $20,000- but your advice on Selling Houses- Fast! saved my deal!
I’LL MAKE OVER $40,000 INSTEAD OF LOSING $20,000 LIKE I THOUGHT!”
“How to Buy Your First or Next Home…
I was so relieved. A $60,000 change from one technique on 1 deal. Funny how life works,
isn’t it? I love helping people stay safe and secure in their investing.
That afternoon, when I showed them how to make 2-3 TIMES the cashflow on each and
every long-term deal without hassling with renters, more than one landlord retired that day!
No more tenants or toilets for that crew, their Residents can take care of all of that for themand pay for the privilege with a smile!
It’s easy, really. Showing your Resident how they can pay their Downpayments in
installments, while building their credit and living in the house of their dreams, all at the same
time…
…It’s a no-brainer for them, and a fortune builder for you!
The next morning, the tie came off, the sleeves were rolled up, and it was time for down-anddirty, “in the trenches” real world Real Estate Secrets.
I took everyone in the room, and custom-built for them a Marketing Plan to get the phone
ringing off the hook!
I showed how to properly target areas and owners for maximum return on investment.
Like my technique for farming a neighborhood, which James Eynon used to buy his next
deal- a $170,000 property for $110,000! He spent just $200 to get that deal, and here’s the best
part;
HE’S STILL FOLLOWING UP ON 35 OTHER DEALS…
FROM THE SAME MARKETING!
Not bad for $200 and an afternoon. He just showed me yet another check, this time $5,000
for a house he’s only seen once. He hasn’t even sold it, and he’s up $5,000. I love this business.
I also showed them real life Short Sales I’ve done, right here and now. In case you don’t
know, a Short Sale is nothing more than getting a bank to accept less than what’s owed as full
payoff for a Mortgage.
With No Money and No Credit!”
Frankly, it’s not hard to buy houses for 60%, 50% even 30-40% of their value when you can
get a bank to discount what is owed.
And Sellers are lining up to give you the houses! It’s simply because no one else can buy
them because they owe too much!!
The ability to add huge amounts of equity to a property with a few phone calls is
astronomical when it comes to rapid wealth creation. I mean, sheesh, my students and I are
making $50,000 off of $150,000 houses like clockwork.
And you should see the checks from those “Elephant Deals.” You know, $1M properties and
above. It’s not hard to make six figures, $100,000 at least, from one deal, when that deal is worth
$1,000,000 or more.
But I know, you’re scared! All those zeroes…
Well that’s what I’m here for! I created this event specifically to get you up and running,
cashing checks in this business. And when you come across one of those MONSTER deals, just
give me a call- zeroes don’t scare me!
I’m on a nationwide hunt for partners. And some of those partners are cashing big checks on
deals they found that we did together. I’d love to write out one of those giant checks with your
name on it, while teaching you my Million Dollar secrets.
Here’s just a sample of the deals I’m working on with students right now:
A warehouse complex in South Florida. It’s worth $1.3M and we’re buying it for
$825,000. Neither of us will come out of pocket for a penny.
A $2,500,000 home on a Championship Golf Course. By the time the dust settles, we’ll
be into this deal for $1,450,000. Of course, not one penny of it will come out of our
pockets. I might have to wait a few extra days to sell it so I can get a few rounds of golf
in. (Who am I kidding, I don’t golf, I fish.)
20 acres of land for $500,000. Sound like a lot of money? ¼ acre home lots in the area
sell for over $150,000. Our total profits will be close to $5M by the time we’re done, and
my student won’t have a nickel invested. $5M pays for a lot of Bootcamps.
“How to Buy Your First or Next Home…
Oh wait, didn’t my next door neighbor, my high-school guidance counselor, or my mailman
tell me that it takes money to make money? Well I guess I should send all this money back
then…
There’s that sarcasm again. Seriously, if you let broke people tell you how to make money,
you’ll get the same results they get. Zip. Nada. Nothing.
It was the type of event that only happens once. Maybe the planets were aligned, maybe it
was something in the air, maybe it was just an amazing collection of people, all coming together
for one reason- to become Real Estate Millionaires.
Whatever it was,
Even Though You Missed A Once In A Lifetime Opportunity To
Join A Select Group Of Investors And Learn A Real Estate
Millionaire’s SecretsYou Can Still Get the Entire Event On CD,
to Fast Forward and Rewind, Until You Suck Out
Every Single Million Dollar Secret!
That’s what shocked me out of bed- I’d figured it out! A way to get you this information,
without missing work (heaven forbid…) or paying for a hotel room. In fact,
I’m So Convinced That You Will Love This “Bootcamp-In-A-Box”
That I’m Prepared to Make You An Outrageous Offer,
Just to Get You to Take It For a Test Drive!
Here’s what I covered at this Once-In-A-Lifetime Event:
With No Money and No Credit!”
In the “House Business Bootcamp-In-A-Box”, I cover every aspect of the system for
buying and selling houses. This Workshop is specifically designed to take you by the hand and
show you how regular people are making BIG money in Real Estate without landlording, and
without risk.
I showed real examples and current deals being done right here and now. Some of them are
$50,000 or more, each.
You’ll learn how my student Mike Garza bought five houses in a few weeks- without credit
and without a nickel invested.
I dissect his case for you, and show step by step how he did it and what he said to the sellers
to get the sellers to give him the houses.
Yes, I know it sounds too good to be true, but I assure you it’s all 100% verified.
And you now have an opportunity to see the proof, and for a limited time you can get the
entire 3-Day Bootcamp on Audio CD, plus a Custom Marketing program, absolutely FREE, so
you can Try it BEFORE you buy it, for 30 days.
Just for the record, anyone can do what Mike has done. I can’t guarantee your results will be
that great, but why don’t we start by getting you one or two houses quickly, or a $5,000 or
$20,000 check within the next 30 days?
Then you and your family will be convinced this is the real deal.
Actually, Mike isn’t that special. He’s 28 years old, has a wife and three kids, had a going
nowhere job until I got a hold of him, and frankly, he’s not too bright. If he can do it, anyone
can.
A month before, he was making $7 an hour as a waiter. 30 days later he owned 5 houses
worth over half a million dollars. Now he’s well on his way to filthy stinking rich, and he’s
never going back to “average” ever again.
I’ve enclosed what some others have said about this Life-Changing Event. And for every one
I’ve included, there are a hundred more. You will have a completely different outlook on Real
Estate, Money, and Life. I guarantee it.
“How to Buy Your First or Next Home…
After You Get The “House Business Bootcamp-In-A-Box”, You Can:
• Buy all the real estate you can handle, and do it without writing checks.
• Build a massive income stream that comes in every month, even if you don't work. It’s not
rentals, I assure you.
• Buy a beautiful new home for yourself within 30 days, and never fill out an application,
never apply for a loan, and without a down payment! You’re allowed to screw up one good
deal by moving in!
• Make money off the most expensive houses in your city. Big houses, BIG paychecks!
•
Here's the Biggie: Escape the time trap and work on your business, not in your business.
This is the key to the vault that 99.9% of active real estate investors never learn- and you get it
here and now!
Imagine having an on-call Real Estate Money making machine, that allows you to make
lump sums of cash, to pay your bills and support your lifestyle, even let you lose the J-O-B,
while you create streams of income and huge amounts of equity and net worth that will carry
you, your children, and your children’s children into retirement.
Now imagine you can have all of this with very little cost, and with a part-time effort. Once
you get your hands on this Bootcamp Package, you’ll have all that and more.
The biggest key to this or any other business is prescreening and targeting only your
most profitable prospects and dumping the rest. It’s a huge ingredient of success.
I’ll tell you in detail who your most important prospects are, and why not knowing this
means you’re certain to fail.
Let me give you an example. I never, ever call ads out of the newspaper. What an incredible
waste of time. Why should I call a Seller I don’t even know is Motivated? Especially someone
who'
ll talk to 20-40 other people?
Believe me; if you'
ve never been the only person making offers on a house, you'
re missing
out!
With No Money and No Credit!”
Why Would I Want to Be One of Dozens of People Making Offers
on a House…
Even without making a single phone call, I buy houses from sellers that have ads in the
newspaper all the time. How can that be? They call me!
…When I Could Be the Only One?
And I don’t mean from some dumb classified ad! (I don’t mean to knock classified ads,
they’re great, but the way I do things makes the results from a plain old classified ad look kind of
silly!).
I spent many hours at the Bootcamp to show you the Insider’s Secrets for getting more deals
than you can handle.
I’ll share my “Ugly House Farm” technique to get you more HOT leads on Junker
properties than you could ever hope to Buy.
It takes less than 3 days to get a stack of deals so deep, you’ll be cashing checks for over a
year. In fact, it’s 16 months of checks you’ll be making from 3 days of work, and it’s a System,
so you can’t screw it up.
Once you are armed with this new information, you'
ll be buying houses for peanuts. Prices
like 80%, 60%, 40%, even 25 to 30% of market value, are not only possible, they’re business
as usual!
For the First Time In Your Life,
You Can Decide For Yourself
How Big and How Often You Want to Get Paid!
I'
ll also show you how to market your business on a shoestring budget. You'
ll learn how to
make UPFRONT CASH PROFITS each and every time on your Real Estate Deals.
“How to Buy Your First or Next Home…
You’ve probably heard of the Huge Profits rehabbers are making- in the “House Business
Bootcamp-In-A-Box” you can make those big checks, and start making 2-3 times the profits
from every ugly house deal.
The secret is in knowing how to Find, Fund, Fix, and Flip those ugly houses for top
dollar!
You’ll learn the truth about Private Money- the source for Cash for all your Rehab deals.
You can get all the money you could ever want from regular people, not banks, and you’ll get it
faster, easier, and there’s no credit check and no limit to the amount you can borrow!
And it doesn’t take any goofy and expensive “Luncheons” or even any speaking skills at all
to find and convert all the Private Lenders you could ever need. I’ll show you one simple
technique that will double the amount of cash you get from each and every Lender- and it
doesn’t cost a nickel more than doing it the old, slow way.
I’ll also include every form you need to navigate the Rehab world, get your repairs done for a
fraction of what people think it costs, and line up all the Private Lenders you could ever need. I’ll
lay it all out for you in the “House Business Bootcamp-In-A-Box”.
I’ve spent many years honing these techniques for generating BIG checks from Ugly Houses,
but you can use them all from day one.
The paperwork alone cost me over $4,000 to have drawn up, and it’s been tens of thousands
of dollars worth of mistakes to get it complete and streamlined.
You’ll see first hand why I say:
“These Are the Real Estate Secrets
That No One Else Will Tell You!”
When you want to start making $100,000 or more per deal, you need to work on the most
expensive houses in your city. You need to learn the specialized art of profiting from Luxury
Homes.
With No Money and No Credit!”
For that, you need to learn to buy houses without being on the hook for those giant payments.
It’s Lease Options and Options, my way, that you need.
When you want long-term appreciation and cashflow, you MUST know how to build your
long-term profits and monthly cashflow without being on the hook for maintenance or repairs.
Once you do, a whole new world will open up, and you can buy as many houses as you like,
without adding extra headaches!
You’ll lock in GREAT prices and double or triple your cashflow, and with one little-known
technique, you can make better than rehab money off of Ugly Houses, without rehabbing a
thing!
You NEVER have to fix anything, ever again- once you learn this Millionaire’s Secret.
In the “House Business Bootcamp-In-A-Box”, I spill the beans on Millions of dollars worth
of secrets gleaned from over 100 deals, and the condensed wisdom of many Millionaires.
I’ll also include every form you need to bring down these “Elephant” checks. Just one of
these forms cost $12,000 to get right, and it’s been many years of testing and tweaking to get
them all perfect.
And you’ll definitely want to cash in on the fact that Foreclosures are HOT right now. In fact,
they’re at a 53 year high! Banks are taking back more properties than ever, and banks hate Real
Estate!
You’ve got the best opportunity to make BIG money buying Pre-Foreclosures in the last 53
years!
Right Now There’s A Once-in-a-Lifetime Surge in
Foreclosures, and the Chosen Few Who Know How to Profit
Are Making Huge Fortunes From This Opportunity
To build a truly functional Real Estate Business, you MUST understand Foreclosures. I’ll be
training you on all the ins and outs of the Foreclosure process, and sharing how to make BIG
money from houses with NO EQUITY!
“How to Buy Your First or Next Home…
This is powerful stuff! You could “pay” Full Price and still make a mint off these houses! If
you’ve been struggling to “skim” some of the thin profits off of over-leveraged houses, this will
be a breath of fresh air!
I’ll lay it out for you step by step- what to say to people in foreclosure to give you instant
control of their properties. They’ll be giving the houses to you!
With the technique I share for negotiating with the seller’s mortgage company to get a lower
payoff, you can kick your profits into overdrive. It’s without a doubt the hottest thing going in
the Real Estate World right now!
In the “House Business Bootcamp-In-A-Box”, I will walk you through the entire Short Sale
process step by step, and even include the forms and a checklist for you to follow to lock in these
HUGE cash profits! I’ll turn you into a Foreclosure “Assassin”- programmed to make BIG
money from these hidden deals.
I’ll also hand you ready-to-go Marketing and Forms, so you can start buying these deals the
moment you leave.
In fact, the Marketing I’ll share with you at the “House Business Bootcamp-In-A-Box” is
not available anywhere else!
Here’s a breakdown- one simple letter could make you $10,000 -$75,000 or more. I know
because it has for me and for so many of my students. I’ll share with you my secrets for getting
Sellers to call. For about $2.00 per prospect, I get as high as 20% to call to sell me their house!
And that’s just mail- I’ll also give you ready to print signs, Business cards, Postcards,
Classified Ads, and Display Ads. More importantly, I’ll show you how and where to use them
for the best response, and the best “bang-for-the-buck.”
When You order the BOOTCAMP-IN-A-BOX, You’ll Also Receive
A CUSTOMIZED MARKETING PACKAGE
Specific to YOU!
This package costs $3,000 but it’s PRICELESS for you if you’re getting started buying
houses the right way. And it’s FREE with the “House Business Bootcamp-In-A-Box”!
With No Money and No Credit!”
You’ll be finding those “one in a million” deals about once a week!
t’s easy to get great deals when you’re working one on one with your Sellers! Some of them
won’t even know their house is for sale- until you tell them it is!
This alone is worth many times the cost of attendance.
But let's face it,
You don't get paid until you SELL!
At the “House Business Bootcamp-In-A-Box” you’ll be handed my Hands-Free System for
Selling Houses. This part of the Bootcamp alone will more than pay you back for the course- in
fact, it’ll make you 100 times what the course costs, if you let it.
Or, you could do what most investors do: waste the majority of your life doing stupid crap
that doesn’t help, convince yourself that what you’re doing is important, confuse Business with
“Busy-ness,” and work ten times as hard for 1/10th of the profits.
Isn’t that what we’re told? That 90% of people make 10% of the money, and 10% of us make
90% of the money? You can decide where you are in that little formula very easily!
Do What’s Important, and Make a Fortune,
Or Waste Time on Crap, and Get Burned-Out, Poor, or Both.
It’s up to you. Either way, you’ll get what you create for yourself. Remember thisEVERYONE is self-made, but only the successful people admit it!
In The “House Business Bootcamp-In-A-Box,” You’ll learn how to:
•
Qualify Buyers for Pretty Houses and for Ugly Houses,
•
How to get Buyers to Commit before you ever even talk to them on the phone,
“How to Buy Your First or Next Home…
• How to Qualify your Buyers- Lease Option, Retail, Sweat Equity Lease Option, Owner
Financed, and Wholesale.
I’ll even show you what you absolutely MUST do to the house before ANYONE ever sees itto get your house sold quickly and for full price- or more- and what’s just a waste of time and
money!
The techniques I’ll share will make you $10-$50,000 per deal! I even share the “secret
breakthrough” that I learned just recently that would have made me over $2,000,000
dollars more in the last three years alone!
OK, OK, I’m In- How Much?
Well, I guess by some standards it’s not cheap, but like my $2M breakthrough, one single
idea I share could lead you to another $50-$100,000 deal or a $1,000,000 cash and equity empire
in 2-5 years.
Even if it was just one more small house deal that gets you an extra $20,000 this year and
every year for the rest of your life it would be worth $10,000-$20,000 for the event, at least.
Actually $2,495 was what the attendees paid, plus 3 nights in a prestigious hotel, lost work,
plane tickets and travel expenses. Even still, $2,495 was a steal to get in this event that was sold
out long before it happened.
Laura told me to remember what it was like when I first started, and $2,495 would have been
too much for me to scrape together or borrow from friends. “Don’t you wish it had been as
easy for you as it will be for your students? Isn’t that why you started teaching the Business
in the first place?”
She had me there, and she set the price for the House Business Bootcamp-In-A-Box at a
ridiculously low $997. For the record, that’s half what I wanted to charge, and to be absolutely,
completely, “over-the-top” straight with you, I know I’ll be charging $1,995 again soon.
However, I can guarantee that price for you if you order within 7 days of getting this letter.
And, you can pay in three installments of just $332.33, with shipping and handling added to the
With No Money and No Credit!”
first installment, or pay in full and take a HUGE $100 Discount! Just $895 for the same
information the attendees paid over $2,500 for!
And take a look at look at the outrageous “Double Guarantee” I offer. Not only is it
inexpensive, with a Better-Than-Money-Back Guarantee, but when you see the list of the free
stuff you get- “Thank You, Jason” will become your mantra!
Here’s $2,357 Worth of Stuff
You Get For FREE With My Bootcamp-In-A-Box
#1: A lot of people get “all-fired-up” when they learn these techniques, then go home and never
put them to use. Well, this insanity has got to stop, and I’m just the guy to do it!
James Eynon credits one conversation with me for putting over $16,000 in his pocket within
three weeks.
William Priddy made $50,000 locked in profits- on one small deal- by using my system, and
my advice.
Mike Garza bought 5 houses in three weeks with a total down payment expense of $50. He
quit his job as a waiter within a month of learning this System.
Doug Cosper bought 5 houses, made $40,000 cash upfront (without Selling them), and makes
cashflow, appreciation, and has over $70,000 more coming. It took him less than 3 months.
I could cite many other similar stories. I routinely charge $1,000.00 an hour - that’s $16.66
PER MINUTE for telephone consulting with on-going clients- and it’s worth ten times that!
I'll throw in 2 FREE 1-hour telephone follow-up consultations with me
personally, so you can make absolutely sure you have all the answers you need.
I charge $1,000 per hour for my "Inner Circle" to consult with me for an hour, and I DO
NOT consult with anyone else- until now! That’s $2,000 worth of personal Coaching, FREE!
Value: $2,000
“How to Buy Your First or Next Home…
BIG Bonus #2: 3 FREE Bonus CD's.
These are Interviews I'
ve done to "Break-In" groups of beginning Investors to the Business. They
sell for $19-$99 each, and the Conferences I taught at sold for THOUSANDS.
1:
2:
3:
“How I Turned $10 into $16,574 in 5 Hours of Work
Through Quick Turn Real Estate”!
“Personal Success Strategies; Which Ones Actually Work,
and Which Ones Are Guaranteed to Crush Your Dreams,
Drain Your Wallet, and Kill Your Quality of Life.”
“Honest Answers About Real Estate”
Value: $200
#3: 9 FREE Bonus Reports, Rehabs, Foreclosures, Getting Started Quickly and Safely, and
Finding Hidden Deals, and more…
Value: $157
The Total Value of the FREE Bonuses In This Course Is: $2,357
And Here Is My Outrageous,
“Who Does He Think He Is,
This Guy’s Crazy”
Better-Than-Money-Back Guarantee:
Here's the deal: I want you to be successful. I'
ve created this entire course to get you up and
running, cashing checks and taking names in this business! In Order to do that, I’ll make you the
following offer-
With No Money and No Credit!”
Call 1-561-762-2311 and order the “House Business Bootcamp-In-A-Box” right away.
Listen to me teach you how to painlessly become a Real Estate Millionaire. Not only will you get
all the FREE Bonuses, but you will be completely protected by my…
Double Guarantee!
Review everything for up to three full months. If you don’t agree it’ll increase your income 10-times
over, if you aren’t immediately acting on specific opportunities, please return it for a full refund.
Do NOT let this sit on a shelf. If it’s “wrong” for you, if you’re not going to use it, don’t keep it. Get
your money back.
You’ll have three months to use it, AND you can keep over $2,000 in FREE Bonuses EVEN IF You
choose to return it!
That’s like a 3 Times Your Money Back Guarantee!
The second part of this Double Guarantee is CONDITIONAL.
For 12 full months, if you show me that you used any three suggestions from the recordings and
manuals, and haven’t profited by at least $10,000.00 as a result, you just write in, tell us about it, and still
get a full refund.
I Will Send You the Course, Completely at My Risk
For Up to a FULL Year!
And If You Aren’t Up and Running, Cashing Checks and Taking Names,
You Get Every Penny Back, Plus More Than $2,000 In Free Goodies,
Just For Trying it Out!
If you do not like the course, you can just send me the CD’s, manual and CD ROM’s back,
and we’ll part friends. I’ll even refund you the shipping and handling.
“How to Buy Your First or Next Home…
I gave this same guarantee to the packed house and I did not have even a single return. It’s
that good. Let me prove it to you, at my own risk. Your only risk is that you waste a couple of
hours listening to the CD’s.
THIS IS BETTER THAN A MONEY BACK GUARANTEE!
YOU CAN HEAR WHAT I HAVE TO TEACH YOU, AND YOU CAN DECIDE THEN IF
YOU WANT TO PAY ME.
If you decide to keep it, you'
ll be charged the incredibly low price of just $997. It'
s a joke,
really. You can'
t even take your family on a Disney World Vacation for that, but you can create a
whole new life for them.
Heck, if you charge it on a credit card, it’s only about $20 a month on your credit card
statement, and you only get charged if it delivers what I promised. I can’t make it any easier for
you.
To get the Homestudy version of this Once-In-A-Lifetime Event, just fill out the order form
and fax it to my office at 1-561-892-5818. Or if you prefer, you can call and order at 561-7622311.
If you're ready to move from dreaming about a better lifestyle,
To actually living it,
Get the “House Business Bootcamp-In-A-Box”
And Get Started Right Away!
Think of this, if all you did was buy your own house to live in, you would still have made
one of the best investments of your entire life- it will literally save you thousands and thousands
-even tens of thousands- of dollars on your own home!
Why settle for just an “average” life, when you have before you the opportunity to get
everything you need to have an incredible life??
You’ve read my "put my money where my mouth is" offer. Let’s face it- you can’t lose!
With No Money and No Credit!”
Either you make tons of money off of what you learn, Or You Don’t Pay Me A Nickel I’m
the one taking all the risks!
This is no game. This is the real deal.
Even if you only Buy or Sell one house in your lifetime, Even your own house,
This course will make you MANY TIMES More than it costs!
How much is your cable bill each month? I bet it’s more than the $20 bucks or so a
month this training would cost you if you charge it. Or, you can pay it back many times over
with your first deal, and never need that card again.
This truly is an amazing offer, and an amazing business. Now you have a choice to make.
As far as I’m concerned, it’s a no-brainer.
You’ll avoid all the pitfalls and the “sharks” that eat so many other investors alive. You’re
the type of person I’m looking for, one with the drive and determination to succeed!
Get Started Right! And do it with a helping hand from a true Real Estate Millionaire who’s
not only created an empire for himself, but has also set many others on the path to success!
Unless you are already perfectly happy with every aspect of your Real Estate Investing life your lifestyle, your income, your Net Worth’s growth and stability, the way you get Sellers and
Buyers, customers or clients, and the quality of those customers - why wouldn’t you take
advantage of this offer?
Here’s a Few Things You Need To Know:
• This Bootcamp is designed to take you to a whole new level. Be mentally prepared for some
dramatic changes in the way you think about life and money, forever.
• WARNING: If you believe I can wave a magic wand and make you rich, please don’t call.
This is an incredible Business, like nothing else I’ve ever seen, but it has its ups and downs like
every other business. It requires taking action and if that’s not for you, you wouldn’t last long
anyway. Fix your head.
“How to Buy Your First or Next Home…
You obviously have goals that require that YOU be in control of your time, you obviously
want to use Real Estate to make a lot of money without a lot of headaches.
Wouldn'
t it make sense to learn this now, with a Better-Than-Risk-Free opportunity from a
Bona-Fide Real Estate Millionaire?
Whether you'
re currently a renter who'
s never owned a home or a seasoned real estate
entrepreneur with dozens of houses, my system will show you a new- and more profitable- way
to invest in real estate. If you only bought one house in your entire life, this Program would pay
for itself 10 times over.
I'
m going to now challenge you to order the Bootcamp-In-A-Box, and change your life. Take
me up on my offer. I'
ve got a lot to tell you. Click Here to order, or call 1-561-762-2311 and ask
for Laura.
Do it now, while it’s fresh in your mind. Seriously, it’s peanuts, and you don’t pay a nickel if
you don’t like it. It’s that good.
Sheesh, it’s not a life or death decision, but this much I know for sure…
It’s a Life Changing Decision.
You have nothing to lose and everything to gain!
Sincerely,
Jason Loucks
P. S. You may never have another chance to have this system for the peanuts I’m charging for
this event. Heck, you don’t pay at all, ever, if it’s not everything I say it is and more. Now that’s
the type of investment I like- No Risk, Huge Rewards!
What are you waiting for?
With No Money and No Credit!”
P.P.S.
I’ve included some of the success stories from other people who’ve taken the plunge
and demanded more from life, themselves, and their expectations. People who have decided
they’ll:
Never Be Average Again!
Won’t You Join Us?
Here’s what Some of the Past Attendees had to say….
Your course is the best I have ever studied. And you are the best teacher I have ever had.
I’ve had great teachers growing up and even professors in college but you are definitely
the best teacher I have ever had!!! I would recommend you to any one. They can call me
on my cell phone @ 561-707-4939. you have changed my way of thinking about real
estate from investor to entrepreneur. Your classes are clear, concise, and to the point. No
B.S. No wasting time. Thank you so much!!! There are so many people out there who are
stuck in dead end jobs that just need a chance. Thank you so much.
– Franc
Muniz, Jupiter, FL
Jason, the seminar was fantastic!! You have a way to get things across in an easy
to understand manner. Within the first 30 minutes of the seminar, you realize that all
your financial worries are over, if you implement what you are teaching us.
You have a lot of confidence in everything you say, because you have done it and
you really love to help your students out – it really shows!!
Jason, anything you do my friend, I am in, you are the best and I thank you for
doing what you do!!
– Carlos Quirch, Coral Springs, FL
“How to Buy Your First or Next Home…
I just completed Jason’s 3 day workshop. My mind is swimming with exciting and
unique ideas on buying and selling home techniques. It’s so clear and simple as Jason
lays out each concept step-by-step and makes it almost impossible NOT to succeed if you
go out and apply it! Jason gives scripts, websites, examples, etc. to help even the most
uninformed. No time wasting! Super class. Can’t wait to get started thanks to Jason’s
knowledge and enthusiasm.
- Linda Lomberg, Coral Springs, FL
The 3 day boot camp workshop was excellent. I recommend any upcoming and
existing investors to take Jason Loucks’s course. He broke down ugly houses,
foreclosures, and also pretty houses. Jason made the system so simple that any with
tenacity can execute making and closing deals. This was the best seminar I have been to.
Thanks, Jason
- Ducene Raphael, Miami, FL
Jason, my wife & I have been looking for a way to gain independence & a new
perspective. We know we have hit the nail on the head. Your course & seminar have been
so loaded with powerful & insightful information that we can hardly wait to put the
system to work. In fact, it is so straight forward and precise that we were able to actually
put your techniques to work during the lunch breaks at your seminar. We can’t thank you
enough for all your help.
- Steve & Sarah Martin, Clermont, FL
Jason is unique! He actually teaches things that you can immediately apply to
make good money in the real estate business. I have been in the mortgage/real estate
business for 17 years and thought I knew it all----boy was I wrong! His techniques are
current and effective!
- Ivan Alvarenga, Boca Raton, FL
Jason, my fiancé and I are very psyched about the business opportunities that are
available out there for us. We are so excited my fiance has quit his computer technician
job in order to jump into this full fledge! You’ve got great, sensable and realistic ideas
that obviously work. We are confident that this business will lead us to financial freedom!
- Lucia Valdez, West Palm Beach, FL
With No Money and No Credit!”
This is the most informative seminar I have ever been to. I have tried several
different types of weekend learning courses. One comes to mind that I really felt was a
scam and that was the Russ Whitney seminar. They spent the whole weekend trying to sell
their other courses for a ridiculous price. I feel that I am going to be able to go out and
actually apply Jason’s techniques and get very favorable results.
- John
Montour, Lake Worth, FL
Jason’s seminar was the best training that I have every received in the house
buying and selling business. So many things that I was not aware of and I am so excited
to use all this real estate knowledge into providing financial independence for my family.
Jason answered every question and everything was easy to understand. I
recommend Jason’s seminars to any one who does not want to settle for less that they can
be!
-Carlos Quirch, Coral Springs, FL
I love Jason’s style of teaching---very straight forward- no BS. He gives you all the
details you need to get started on your own. Looking forward to working with him.
- Susan Wheeler, Gainesville, FL
Jason is obviously very knowledgeable. The fact that his is younger than I am and
creates such wealth and wisdom is astounding.
- Dean H., West Palm Beach, FL
Very informative. I feel that I can go out and buy houses and make money I have
toold and information that will help me to better improve my self. I credit Jason with the
fact that I have improved myself already because of his motivation. This is a very good
course and it will help you greatly to be a much more successful business person. And to
over all make money and that’s what we all want.
- Alan Crosby, West Palm
Beach, FL
I have the opportunity to attend Jason Louck’s training. I have learned a lot about
foreclosure, sort sale, options, or lease options. Previously, I have no knowledge about
any of this. But now I believe that I have some knowledge of what to do and definitely
“How to Buy Your First or Next Home…
what not to do. I am very happy happy that I did take this class. - Veronica Bisnaught,
Coconut Creek, FL
Weekend is normally a family time to share with our 1 year old son. We had
to make arrangement for sitter for him. I just want to let you know that we do not regret it
one bit. The information Jason shared with us was very practical.
- Ian and Tessa
Williams, Margate, FL
Laura and Jason are 100% true to their words. I have driven 5 hours each way to
go to several trainings of Jason’s and actually became one of his select mentor students.
After several months of trial and errors and discussions with Jason, it was
extremely well worth the trip to be a part of his 3 day bootcamp.
I learned many great ideas and plan to put more ideas into practice and hope to
turn my 1st 5 deals ASAP and have 2005 the beginning of an incredible real estate
generating empire!
- Kathy Shepard, Gainsville, FL
Jason has more than delivered on his promises to show me how to set up a home
buying business. He’s a great communicater and makes things clear and uncomplicated.
I am confident that I now have the knowledge to successfully invest in real estate.
- Maurice Hartsook, Pompano Beach, FL
Thank you for the seminar. I’ve been to other seminars before. Yours was the best.
Jason gets right to the point about the real estate business…
- Robert Schmitz, Lake
Worth, FL
You touched on key areas and gave good explanation to questions, not just
answers. The thing I like best about your approach to buying and selling houses is you
(keep it simple and stay in your niche) attitude. I believe that is exactly the advice or
information I was looking for. You seem to have your focus on single family units – and
selling them not renting or rehabbing (in particular). The many other RE programs out
With No Money and No Credit!”
there try to encompass everything you can possibly imagine and I believe this is
information overload and leads to fear and hesitation to the beginner. I know it has had
that effect on me.
- Eunice Tatum, Ft. Lauderdale, FL
Jason was knowledgeable about every question on real estate I asked. His
responses were definite and complete. I appreciate someone who is knowledgeable and
not evasive. His seminar was informative and gave an excellent overview of what to
expect. I hope he has another in my area.
- Jerry Landrum, Loxahatchee, FL
Jason is a rational, reasonable person and businessman, who, plain and simple,
has a system and a strategy, long term and short term, to make money. He is also one of
the most honest and ethical business persons I have dealt with. The ability to use his vast
experience in business and Real Estate to your advantage is a wonderful opportunity.
I fully recommend him to any investors who want a hands-free income stream
through Real Estate. I have personally bought over $500,000 in Real Estate through
Jason’s system, with a total down payment expense of $1,500 (which I quickly got back)!
I made more last year with his system, in just a few hours a month, than I made at my 4050 hour per week job working for the government. He has a clear picture of the business
of Real Estate, and that puts him in a class by himself.
And, I can definitely say that he has become a close personal friend. Let me tell
you this: I recommended investing with Jason to my own Mother! I can’t tell you
anything more powerful than that!
-William Douglas Cosper, Phoenix AZ
“We had the worst run of bad luck you could have, and we were in debt up to our
eyeballs! I just couldn’t keep up with tenants and repairs and taxes and everything
anymore. Jason’s system couldn’t have been easier. I’m enjoying the money a lot more
than I ever liked having renters!”
-John Edditch, Palm Bay, FL
“How to Buy Your First or Next Home…
“Jason is a Master at getting cash upfront out of every deal. He’ll teach you a strategy
and a system for making BIG checks in Real Estate without any money or credit. -Tracie
Schumacher, FT. Myers, FL
Jason is captivating, knowledgeable and able to communicate a wealth of
information. He has fun teaching and creates an interactive atmosphere ideal for
learning.
I enjoyed the Workshop and walked away with a solid foundation of knowledge
and the motivation to get started. -Scott Wood, Ft Lauderdale, FL
You have a way of explaining things that takes away all the confusion that usually
comes with real estate seminars. Probably because the other people are trying to cover
up what they don'
t know! -Frank McDerment, Boca Raton, FL
“I had the easiest time leaving my old place, a rental, and getting into the new one,
which I’ll own. I feel like a new woman! I wish I had done this months ago!” -Margaret
Burns, Palm Bay, FL
The course was very easy to understand and follow. I like Jason’s approach to the
real estate business and his tips and suggestions are very helpful and have motivated me
to start my own real estate business. I have already started thinking about my short and
long term goals and have decided to reach for higher standards.
-
Theresa Miller, Wellington, FL
Great concepts, “getting to the check” is a great slogan. I like Jason more in
person and I like how driven he is to constantly continue to improve himself and find
easier, more cost effective ways of buying houses. Keep up the good work.
-Paul McPherson, Ft. Lauderdale, FL
The workshop was very informative and it really motivates me more to know that
my dreams of financial freedom are attainable, as long as I have the guts to go out there
and do the work necessary.
-Sonia Thompson, FT.
Myers, FL
With No Money and No Credit!”
Thank you, Jason for the very well written and detailed material you have provided
for your creative real estate training. Your years of training and experience shine
through as you articulate beautifully the how to’s of great alternative buying and selling
houses strategies. Thank you, I know that I now have the education I have been seeking to
acquire wealth while providing a critical service and having fun doing it. I received more
critical information on critical marketing strategies than I’ve gotten anywhere else. This
information can assure my success for getting more good leads for buying properties.
-Earl Osborne, Ft. Lauderdale, FL
Thanks for this seminar. I am finding your course innovative, enthusiastic, and
sincere. I look forward to a long and positive and profitable and enjoyable relationship
with you. Thank you!
-Steve Varhola, Jupiter, FL
This is the only class I ever took that leaves nothing out. All of my questions were
answered. Jason shares all of his material with the group. Complete step by step system.
-Kevin Rower, Ft Lauderdale, FL
Jason gave me so much information my brain leaks! I can’t stop telling people
about Jason’s system. Most systems give you enough information so that you’re
dangerous. Jason gives you all the information so you’re not! –Christopher Mitchell,
Deerfield Beach, FL
…very informative! There is a lot of information given, it is well worth it! -John Brillion,
Ft Lauderdale, FL
I have worked on many different Real Estate projects, totaling millions of dollars. I made
every penny I was expecting, even though I couldn’t believe, at first, that I could really
make such great returns!
-Daniel Medina, Wellington, FL
When Do I Get To Hear YOUR Success Stories?