Profit Blog - Real Estate With Gary Wilson

How do successful real estate agents promote themselves to investors?

Marketing

How do you market yourself as an Investor Agent?

Join Local Investor Clubs – I have belonged to multiple investor clubs. I highly recommend REIA (Real Estate Investor Association) clubs. There are some with hundreds and thousands of members. Every time I go to a meeting I get multiple deals – listings, buyers and property management. Warning: don’t join unless you are an investor or you have gone through our training. If you don’t walk the talk they will simply ignore you or worse.

Write Articles – I have written articles for several years now – at least three times a week. This really helps you establish credibility. The investor clubs will reward you also. They will publish these articles in their newsletters!

Create a Monthly Community Workshop – This is one of my favorites. I started in a local library with maybe a handful of people. The word spread and I grew to 12, 24, 48 then 70+ and the library said I had to go! Then I went to a hotel and grew to over two hundred people. Even when I had only a small group in the beginning I got a deal out of every single meeting. When it grew to over two hundred people I always had a line 20+ deep waiting to talk to me at the end of the session. I always got multiple deals out of these events. Amazing!

Write a Monthly Newsletter – OK I have to admit I started and stopped this multiple times. It is time consuming. However, when structured and titled properly it does bring in business. BIG HINTS: Don’t call it “John’s newsletter”. No one will open it and the pros will make fun of you. Call it something relevant like Jacksonville Investors Press. Also, don’t just put real estate related info in there. Include information on other subjects like local events, personal development, health, money, cars, children, shopping – you get the picture. Make it interesting. It is work and it does work.

Here is a rundown of available advertising mediums:

Craig’s List – Bar none, this is one of the best ways to reach your marketplace. It’s free and has a wide audience. They even have a tutorial for you to learn from.

FB, Twitter, LinkedIn – Use your network(s) in Social Media to get the word out. Be careful how you use social media. There are rules of etiquette that you must first learn for each one. The number one taboo is spamming your network. Never abuse the privilege of social media. If you do you will be shunned, un-friended, un-liked, un-connected and unsuccessful!

Church – Churches usually have weekly bulletins in which you can advertise your vacancies. This works well for large congregations but I would use it in small churches as well. Look in your church’s current bulletin and there should be instructions or at least contact information that you can use to get started.

Grocery store – Usually have a bulletin board where you can pin a flyer with tear off phone number tabs. You need to check this regularly. Sometimes they disappear. Sometimes other people will post their notice right over top of yours. If you’re really lucky all of your number tabs will be gone!

Restaurants – They often will let you put a stack of flyers of business cards near the check out. The next time you’re dining at one of your local favorite restaurants speak to the owner or manager. Someone with the authority to act is always on duty at a restaurant. Please note that there are some other great marketing and advertising opportunities here. For example, ask the proprietor if he/she will offer a discount or free meal coupon (get several) for you to use as a reward to give to your good tenants who refer other good tenants to you. Use your imagination!

Local publications – Penny Saver, Green sheet, they’re in every community and are very inexpensive. Unlike the large publications like your big city paper, I have had a lot of success with these types of publications. Call and ask for their rules and regulations. Learn the rules of their advertising game and you will master the game. Some ads you will place for one to two weeks. Some you will place for a year. You will also learn where in the publication to place your ads, how big, how small, special features, etc. Hint – Any time you can have your ad placed in a box you will get better results!

Direct Mail – By far this brings in the best leads. You can identify your target prospects by accessing local tax records – usually free and online – and locate the owners of multi-unit properties. Then send them something they will see perceived value in. Remember the old saying in advertising “WIIFM” What’s in it for me?

Your Own Website

Blogging

Ad Words

Joint Ventures

Affiliates

YouTube

The possibilities are endless. I believe God wants us to be happy not sad, wealthy not poor, healthy not sick. I believe it is our duty to fulfill the purpose that He has intended for our lives, which is to bring others closer to Him. What better way to do this than to be our highest and best selves, living examples of how joyful life can be when we make the absolute most of the precious gift of life He has given us?

When you own investment real estate you are providing a good service to your fellow man. You are helping yourself by helping others first. And herein lies one of the greatest truths of success and that is that if you help enough other people get what they want then you will get plenty of what you want. You can thank Zig Ziglar for that pearl of wisdom which is actually scriptural in its origin.

There are three basic ways of investing in real estate as a beginner. You can invest in rental properties. Please read Real Estate Investing For Rental Profits And Winning Every Time and Rental Profits Without The Pain for more information on investing in rental properties. Secondly, you can invest in flipping properties. Please read Flipping For Profit Without The Risk for more information on Flipping properties. Thirdly, you can wholesale properties. Please read Wholesaling so Everybody Wins. Please visit www.myinvestment services.com to get these books and other books and training courses as well.

For more information please visit MyInvestmentServices.com, call 1-800-931-2605 or email Gary@winrealtyadvisors.com.

Written by Gary Wilson, June 18, 2014

How I Did 110 Transactions A Year With NO Assistants…And You Can Too… Get My Case Study Now>> https://www.myinvestmentservices.com/gift

“Guiding You to Massive New Wealth in Real Estate in 1 Year or Less Guaranteed!”

Investor-Agent Rules of Engagement

As you begin the process of using your real estate license to build your thriving, profitable Investor business, you should be aware of some of your clients’ expectations and the possibilities for you to create multiple streams of income. Some of the information in the beginning of this article may be a refresher for more experienced agents. I would still review it though so the rest of the article will have more meaning for you,

Real Estate Agent Rules of Engagement

MyInvestmentServices.com

Before you can practice real estate you need to obtain a real estate practitioner’s license for the state in which you wish to represent others in real estate transactions. There are typically two classes you need to take, one is national and one is state. They are usually 30 hours each. You can now take these completely online, in a physical classroom with other students or a combination of the two. There are multiple providers for these classes. Many Real Estate firms offer these classes to prospective agents. They may even offer to pay for your classes if you sign up with them for one year. I do not normally recommend this latter approach. I recommend you take the classes and pay for them out of your own pocket. Then after you take and pass the licensing exams you can choose which company to practice real estate with. In order to practice real estate licensees do need to place their license with a real estate firm.

Once you have taken the classes you will then be required to take two exams, state and national. I highly encourage you to take several practice exams and even take a class that prepares you specifically for the exams. When I prepared for the broker’s exam I took thirty practice exams.

Once you have taken the classes, taken and passed the exams, and placed your license with a real estate brokerage firm, you now have the right to practice real estate. This does not mean you are prepared to practice real estate; rather you simply have earned the right to practice because you now supposedly have a fundamental understanding of real estate laws. That is all the classes you have taken so far are designed to do, that is, educate you on the very basic legal rules and regulations you need to be familiar with so the consumers you represent get fair representation from you.

Now you need to learn how to use your license in the business sense. This book is not intended to educate you on all of the skills necessary to be a successful real estate agent. This requires continuous education on your part for as long as you practice. The world of marketing and advertising is constantly changing. You will learn a lot of what you need to know from your broker, other agents in your office and your own blood, sweat and tears. I will go over, in simple terms what is expected of you in the roles of agency.

Seller Representation

Real Estate agents could be involved in representing users and investors who are interested in disposing of their properties. This is a traditional activity in a commercial and investment brokerage, just as it is in a residential brokerage. When acting as a selling broker, an agent has an agency relationship with the seller and owes him or her fiduciary duty.

Buyer Representation

Another activity in which Real Estate agents might be involved is representing users and investors who are potential buyers of properties in selecting and acquiring these properties. When acting as a buyer’s broker, the agent has an agency relationship with the buyer and owes a fiduciary duty to him or her. This activity is more common in commercial and investment brokerage than in residential brokerage. For example, an agent could represent several fast food chains in their search for locations to purchase as sites for their restaurants. By becoming familiar with the specific requirements of a few users, the broker can provide a service to his or her clients.

Landlord Representation

Further activity in which investment real estate agents might be involved is the exclusive representation of landlords in their attempts to locate tenants who would be users of their vacant spaces, negotiating the leases for the use of those spaces.

As leasing agents, brokers would be involved in many more transactions than brokers involved in the investor or development part of the business. In fact, many commercial investment managers agree that the best way to transition from residential real estate to nonresidential real estate is through leasing commercial space. This activity allows agents to interact with many tenants and property owners, all of whom have specific needs that agents can try to fulfill. In addition, brokers can become familiar with a variety of properties present in their marketplaces.

By showing potential users several properties, agents get to see a variety of spaces and have an opportunity to become familiar with the available inventory in the market.
By showing several properties to potential users, agents get to talk to and meet many property owners who have spaces to rent.
By showing multiple spaces, agents interact with other tenants who anticipate moving from their spaces and will need to find new spaces to occupy in the future.

Tenant Representation

Still another brokerage activity in which investment real estate agents could be involved is the exclusive representation of users looking to relocate and negotiating leases for space in landlords’ properties. By representing specific users, agents become aware of the users’ needs and the requirements properties must meet for the users’ businesses.

Of course you can use your license to help owner occupants buy and sell their own homes. Even though I was opposed to this at first I later warmed up to the idea and made a lot of money doing it. Let’s face it, all of the investors you service at one time or another will want to buy or sell their own home. You will also have come across many tenants who will one day buy their own home. You already have a database full of these folks. You might as well service them and further leverage the use of your real estate license and earn more commissions!

What’s more, these folks all have friends, relatives, neighbors, co-workers and fellow church members who want to buy and sell homes from time to time. I highly encourage you to remind your clients that you can service them too and encourage them to refer these people to you. When that happens you should reward them for their good behavior!

Speaking of referrals, the more you grow and prosper with your license the greater your reputation will spread. One way you can benefit from this is by sending referrals to agents in other areas. Surely, your clients have friends and relatives in other areas that either want to buy or sell their own home or may want to invest in real estate. A referral from you will carry a lot of weight and it will earn you a referral fee. Do not overlook this very valuable income stream. I have built an entire line of business around this very concept.

Build a Team

Ah, yes, building a business. First of all I remind you to treat this entire venture as a business and run it as such. One of the best ways to manifest this is to build a team around yourself and your business. When I first got really busy, I had developed systems, processes and procedures for me to follow every day so I could handle all of the business. When building my brokerage company, Win Realty Advisors, I actually built a team first. The first person I hired was an admin person. She was from another brokerage company and had an awesome reputation for being able to manage multiple tasks simultaneously and get a lot done – a lot more than 99% of other people.

My recommendation to you is, when you get really busy, hire a superstar admin. Be picky, don’t settle. Remember the old saying – hire slow and fire fast. Your definition of busy may be different than that of the next person. I was juggling more than twenty transactions, teaching classes, investing in property and managing property all at the same time. I was pretty busy. Whenever you find yourself heading down the road of unhappiness from relationships that need more of your time, or you need more of your time, and God needs more of your time then it is time to make your first hire. Nothing is more important than you fulfilling God’s purpose for your life and that will likely include being a good partner, husband; father, brother, son and friend for those in your life. You can get a copy of my book Husband, Father, Brother, Son from the website www.MyInvestmentServices.com.

After that you will figure out what to do next. It may include delegating the execution of your marketing plan, delegating buyer showings. You will know when the time comes.

One of the best things about building a team is that it will position you to build your own brokerage firm in the future if you choose to do so. You can read more about that in my book Build a Real Estate Brokerage Company for Profit and Build Wealth for Life. You can get a copy of this from the website www.MyInvestmentServices.com.

There’s more! All of your investor clients are accumulating a lot of rental properties and they need help managing them. I think it is a really good idea for you to offer to manage these properties for them! As a real estate licensee with your license in a brokerage firm you can this. Some firms are more accommodating than others. I have found Keller Williams is the best real estate company for entrepreneurial real estate agents who want to grow their own businesses. In fact I know personally several KW agents who manage several hundred units each as an agent with KW. You can learn more about this by reading my book Build a Property Management Business for Profit and Build Wealth for Life. Not only do you earn management fee income but all of these folks can bring in additional sales for you too!

As you can see there are a number of opportunities for you to build wealth and income by working with investors. You simply leverage what you are already doing. You can leverage your systems and operations, including bookkeeping and marketing, in many directions.

Even at the most basic level, you can’t buy every property and neither can your clients. When you identify more great investment properties than you or your client can handle, refer the deal to another agent or investor and earn commission anyway from your efforts. Remember, your real estate license is an income producing asset. Treat it like that and you will profit.

As you grow you will need systems, processes and procedures to allow for successful growth. These systems are not just for bookkeeping, marketing and advertising, and transaction flow but also for client support and representation.

Client Support and Representation

One of the first things you need to do when working with investors is to become familiar with the instructions I give to investors who work with me. You will find them in the Flip and Rental Rules of Engagement sections of this blog. Please remember that there are major differences between working with owner occupants and working with investors.

When working with owner occupants you generally do most if not all of the work. You do a lot more hand holding. They don’t usually know a lot and so you have to explain everything to them. They also tend to be more emotional in their selling and buying behavior. They also only need you once every several years.

Investors, on the other hand, get easier and easier to work with over time. They continue to learn. They are hands on. In fact, if you follow my instruction sheets, you will see that I delegate a lot of the work to them. You give them the data and let them do the financial analysis. They do drive by’s. They do the physical analysis. Anytime an investor approaches me and wants me to do all the work for them I take it upon myself to educate them first. If they don’t want to do things my way then I send them down the highway to some poor sucker of an agent who doesn’t know any better and has time to waste. Not me and not you. I also command a minimum commission. This protects me when working with investors who want to buy cheap foreclosures.

With investors I get to dictate that they work on my schedule. They may not know it but that is what is happening. I always schedule my showing days and times a week in advance. I send an email to my active clients on Wednesday and give them the day and time blocks I have available the following week. Then it’s first come first serve. They must give me the MLS numbers of the properties they want to see at least two days in advance of our scheduled date and time to meet and view properties. Oh, I occasionally get the knucklehead who can’t follow simple instructions. You know the ones who never could get to school on time and when they did they turned in their homework with food stains on it and that’s if they even had their homework. I give them a chance or two to correct their behavior, and I help them do that, but if it appears habitual I draw the line and they get the message.

I love working with investors because it’s repeat business. It’s the gift that keeps on giving. Many of my students have gone on to buy large apartment buildings earning me large commissions and large property management contracts. I am able to leverage all of my activities working with investors into additional lines of business providing additional income streams and wealth building opportunities. Perhaps one of the best benefits of working with investors is how many friendships I have developed where I actually get to spend time with them doing something we both love to do – build wealth and income with Real Estate!

Being the Right Kind of Realtor

If you are not a licensed real estate agent then read this. If you are a licensed real estate agent then you need to read this too so you will know what all of my students expect from you!

The following is an excerpt from my other books on what I teach investors to look for when selecting a real estate agent. This should be an eye opener for you. Also, I do not intend to insult you. I am one of you! I am merely enlightening you to what is expected of you as an investor agent. OK Ready? Here we go:

“The Investor Realtor! In the world of Real Estate Investing there is no other kind. If you are using your neighbor’s son then you are a loser and you will pay a dreadful price. Every real estate agent on the planet will tell you that he or she is the right agent for you and they are the best at helping you. Make sure you ask them how much real estate they own. How many other investors are they working with? If they have so many other investors then how do they have the time to help you? Keep asking questions. Eventually, they will run out of crap to tell you.

I originally got my real estate license because I was sick and tired of realtors who didn’t know what they were doing in the world of real estate. The rules of engagement for real estate investing are 180 degrees different form the rules of engagement of the owner occupied real estate business.

My neighbor was my 1^st realtor. I had to fire her and it pissed off the whole neighborhood. She wouldn’t or couldn’t learn what she needed me to teach her. So I fired her and got my license. I eventually developed a system to teach other realtors how to work with investors. Trust me. It makes a huge difference. Having a traditional real estate agent try to help you with your real estate investing is like having a motorcycle mechanic work on your airplane.

If you invest in real estate the way I am teaching you to, then you will one day own an airplane. Now imagine yourself getting ready to take your plane down to Florida to play golf and you just found out your regular mechanic was off sick and the airport had a motorcycle mechanic, who happens to be the air traffic controller’s nephew’s neighbor, who just happened to be a recent graduate of the Acme school of motorcycle mechanics because he got laid off from his last job. How does that make you feel? Well, remember a lot of real estate agents are real estate agents because they got laid off from their last job and getting their real estate license took only 60 hours and cost only a few hundred bucks. Does it sound like they are highly qualified to help you invest your precious hard earned money? I didn’t think so. Don’t be stupid. If you use one of these Imbeciles you will end up losing your money and wishing you were going down in that plane that the bozo motorcycle mechanic worked on. By the way, I have no problem with motorcycle mechanics in general, only the ones who are foolish enough to work on an airplane.

There are a few things you can do to enhance your relationship with your real estate agent. One of them is to sign a Buyers Agency Agreement. I have taken and have seen material from other real estate gurus who say you should have as many real estate agents working for you as possible. Trust me, they don’t understand agency from a legal point of view, an ethical point of view or a business point of view. In this business you need real players on your team. A good real estate agent who really understands the rules of engagement when it comes to real estate investing is worth their weight in gold. You wouldn’t have multiple tax accountants prepare your taxes. You wouldn’t have multiple lenders making you the same loan. You wouldn’t have multiple closing companies working on the same file. So why would you have multiple real estate agents sending you properties from the same pool of properties? They all are pulling properties from the same database and they all have the same tools and access. Using multiple agents is only going to piss them off. They won’t stick around and they certainly won’t give you their best when they don’t have an exclusive agreement with you. Get real. If you were working for commission and a client was using multiple real estate agents how much energy would you put into that effort with little to no assurance of getting paid?

More importantly, you don’t want traditional real estate agents working for you anyway. You want an investor/agent who is themselves an investor and/or has a proven track record of helping other investors profitably grow their portfolios using the rules of engagement I teach when I show investors how to invest and real estate agents how to correctly work with investors.

The other important factor in using a buyer’s agency agreement is that the agreement affords you certain rights and requires the real estate agent to assume certain responsibilities that would otherwise not be in place and in the end be to your disadvantage.

Another important piece of information is having Proof of Funds. This tells your real estate agent you are qualified and it also gives your real estate agent leverage and power when working with other real estate agents. Proof of Funds can either be a bank statement showing you have the available cash to make a purchase or a lender pre-qualification, lender pre-approval for a loan or Line of Credit statement showing that you have funds ready for you to borrow.

Think Military. Think Sports. Think Family. Think Friends. Think profitable business. A good Real Agent is a critical member of your team. I strongly encourage you to treat them that way.

Well that ought to give you a little insight into the current state of affairs and what is expected of you and what you can expect from investors!

For more information please visit MyInvestmentServices.com, call 1-800-931-2605 or email Gary@WinRealtyAdvisors.com

Written by Gary Wilson, June 16, 2014

How I Did 110 Transactions A Year With NO Assistants…And You Can Too… Get My Case Study Now>> https://www.myinvestmentservices.com/gift

“Guiding You to Massive New Wealth in Real Estate in 1 Year or Less Guaranteed!”

Agents – This is how to work with Wholesalers

How to Work with Wholesalers

First a little background so you’ll understand later how to fit in and profit.

Wholesaling For Profit

What is wholesaling? The short answer is that you can get a property under contract and then sell the contract to another buyer. Here is a brief explanation in practical terms. Assume the owner of a property is Party A. Another person, Party B, makes an offer on that property. Party A and Party B come to terms and execute a legally binding contract for the sale of that property. So far so good!

Party B does not intend to actually buy the property. He would like to profit from his efforts in identifying a good deal so he, Party B, sells the contract he has to Party C. He does this for a fee. In other words Party B charges a wholesale fee to Party C in exchange for Party C purchasing the rights of the buyer in the sales agreement to buy the property form Party A. Party C actually follows through and buys the property from Party A.

Graphically this looks like:

A -> B = original sales agreement

B -> C = Wholesale Deal

A -> C = C buys property from A

Here are two examples of wholesale deals I was involved in. In the first example I was Party B.

Smithton Avenue

Smithton Avenue was my first experience wholesaling properties. It was almost accidental the way it came about. I was out looking for properties for myself. As usual I had found more than I could take on and was dreading the thought of deciding which one to turn loose when I got a call form one of my fellow investors who had a friend looking for an investment in my neck of the woods. This other person was a dentist and didn’t have a lot of discretionary time to spend looking for investments. I was literally standing in the very property I was to eventually wholesale to this other investor. I had gone back to go over my notes and reassure myself that of all the good deals I had this was the one I could most easily let go of and miss the least. I knew what wholesaling was at the time, I just simply hadn’t done one yet. I wanted to buy every one that I had determined to be a good deal. Sound familiar? After I hung up the phone with my friend the dentist called me. We struck a deal right there on the spot. So, I got the property under control with my own offer. My offer had an assignment clause in it so that I could assign the contract to someone else.

And that’s what I did. I assigned the contract to the dentist and asked for and received a $2,500.00 fee. It was truly as simple as that. I had to do almost no work to strike that deal. $2,500.00 may not seem like a lot of money but keep in mind that at the time I knew nothing about wholesaling. I had not yet been in a wholesale transaction.

I did no advertising. The end buyer landed in my lap. All I did was locate the property and do the financial analysis on it to determine that it was a good deal. I certainly should have asked for a larger fee but being that I didn’t know any better I thought I was doing pretty good by getting $2,500.00. I never even had to go to a closing for this one. The end buyer (C) bought directly from the seller (A) and sent the check for $2,500.00 directly to me in the mail!

There a few lessons in here that we will expand upon further, but first I want to give you an example of another wholesale deal where I was the other party.

1304 Superior

1304 Superior came across my radar screen at a time when I was investing quite heavily. It was located in a part of town I was not completely familiar with yet but it was in my sights as an area to explore for future investing. The way it came to me was through another fellow investor who had his real estate license with the same brokerage company that I did. He and his brother, who happened to be running for city council at the time, were well known local investors. They had come across an estate sale that involved multiple properties.

They only wanted and could afford two of the three properties that were being sold as part of the estate. They had all three properties under contract as a package deal. They called me because they had heard I was an active investor in the area. This third property was actually pretty nice. It was completely sided with all the trim wrapped in aluminum. It sat on a large corner double lot. It had a great front porch and new windows. In other words it had great curb appeal. The inside had all the original hardwood floors, crown molding, chair rails, and hand rails. Even though it didn’t have separate gas, and it was being used a single family home, it did have separate electric and could easily be setup as a two-unit. And that’s exactly what I did.

I asked the other investors what they wanted for the property. They wanted only $16,000.00. It took me exactly .001 second to accept their terms. I spent another $16,000.00 splitting and renovating the property. When I was all done I refinanced it at 80% loan to value on a $75,000.00 appraisal. You do the math. As you can see I made $60,000.00 cash on a $32,000.00 purchase plus rehab. That’s a $28,000.00 cash gain plus another $15,000.00 in equity all because I bought a property wholesale for $16,000.00. In other words, I more than doubled my money PLUS I had $1,200.00 per month in rent coming in.

We actually did the entire transaction at the closing table at one time. In other words : A -> B, B -> C, and A -> C all occurred in one sitting involving the seller (A), the wholesaler (B), and me the end buyer (C). Wholesaling allows you to have some control over, and therefore, profit from, Real Estate without actually taking ownership of it.

Why It Works

Wholesaling works because of two important factors. 1. Some people have available time but not available money and 2. Some people have available money but not available time. Everyone fits in one of these two categories. There are exceptions. Some people have available time and money. Your goal is If you are in category 1 (Party B) then you can serve those in category 2 (Party C).

How It Works

If you have a short term memory then make sure you implant permanently what I am about to tell you. The way wholesaling works, in fact, the only way it can work so that everybody wins, is that you, as the wholesaler (Party B) must find your buyers first! That’s right. You first market, advertise, capture and nurture a growing list of people who are interested in finding great real estate deals, whether they be flips or rentals, and have the money but don’t have the time to do it. Then and only then do you go out and find great real estate deals and get them under contract. Nothing could be more damaging to your reputation than getting properties under contract than not being able to sell the contract or follow through on the purchase of the property.

Those who teach that it is easy to get out of a contract if you can’t sell it (so it is not something to be overly concerned about), are damaging to the world of investing and wholesaling in particular. This implies a lack of proper execution of the principles and if you have to break a contract then you violate the principle of “Everybody Wins”. In this case the sellers (Party A) lose. And you lose too because you will develop a reputation of someone NOT to be dealt with.

Don’t fall into this trap. Follow the easy, simple processes I teach and you will profit so that everybody wins! All you are doing is filling orders. Part of nurturing your buyer clients is asking them questions, listening to their answers and understanding what types of properties they want. Then you go out and find those properties, get them under contract and sell the contract to your buyer.

To learn more about wholesaling please visit www.myinvestmentservices.com. You can also call 1-800-931-2605 and email Gary@winrealtyadvisors.com.

How Do I Find Buyers for my Wholesale Deals?

Marketing and Advertising! That’s right. You market yourself as the Go To guy or girl in your area who knows how to sniff out those awesome real estate deals. You can easily market yourself by creating an impressive image on Facebook, LinkedIn, Google+, Twitter, and even more social media venues. You should also create your own website. All of this is simple. It may not be fast because it does take time, but it is easy.

You advertise by sending messages through LinkedIn, and posting messages on Facebook, to those who are following you, showing them the deals you have done and promoting the one(s) you currently have. You can also use Postlets to advertise your current deals. Furthermore, you can identify (through public records) those who are regularly buying properties in your area. You can send them, through the US mail, your latest deals and entice them to sign up with you as their provider of great real estate deals. Of course you can use Craigslist, Bask Page, bulletin boards in your church or grocery store, and yard signs.

Wholesaling Business Structure

Note: I am not a lawyer. I recommend that you seek the advice of a competent lawyer when deciding on which entity to use when growing. When it comes to wholesaling you have to beware of the rules and regulations regarding the transfer of real estate, and for the subject of this blog, specifically those rules and regulations dealing with the subject of a net listing.

Net Listing

In certain states, like Pennsylvania, if you are a licensed real estate agent, you can use the existing real estate rules and regulations in your state to participate in wholesaling. The way this works is that if you area a licensed real estate agent you can play the role of Party (B) from within the context of serving as a real estate agent to Party (A). This is how it works. Assuming that you are a licensed real estate agent and you are also an investor you (B) can approach the seller (A) with the concept that you will list their property for sale under the following conditions: 1. The seller determines what final sale price they would like to see, 2. You enter into a listing contract for that price, 3. You agree that your compensation will be any amount of money that is over and above the final sales price that the seller is looking for, and you list the house for a price that you believe it could actually sell for. Here is an example:

Seller (A) wants $100,000.00 for the sale of his house. You agent/investor (B) enter into as listing agreement that will net the seller $100,000.00. You advertise the house for $125,000.000. You sell the house for $120,000.00. The seller gets $100,000.00 and you get $20,000.00 as your commission on selling the house. If you are a savvy agent/investor and the buyer of this house is going to remodel this house and sell it for profit (Flip) you will propose that when he buys the house from your seller that he also agrees to sell it with you as his agent when the remodeling is complete and the house is ready for resale. I’m sure you can see the tremendous potential in this if you are a licensed agent in a state that recognizes net listings. If you are licensed agent in a state that does not recognize net listings or you simply are not a licensed real estate agent then I recommend you set up an LLC to conduct your wholesaling business.

One more thing, in most states, if you do more than 5 wholesale deals a year you could be viewed by the taxing authorities as a dealer. You will have to check with your tax accountant and/or attorney to verify the federal tax rules and the state as well.

Always remember that when you are using a LLC to conduct business that you always sign your name with “, member (your LLC name here), LLC” after your personal name> Here is an example:

John Smith, member ABC, LLC. Do this on any of your business documents involving your LLC, wherever you would normally sign your personal name. If you don’t do this and you sign your name personally, it could expose you to liability if there is a problem down the road with this particular transaction.

How You Fit In

Because of the risk of dealer status and the desire for separation of duties I recommend that wholesalers have an agent represent the original seller and potentially represent the ultimate buyer. This separates the buyer form the transaction side of the deal. It allows you to act as an agent and earn one or more commissions and uses the established rules of real estate brokerage. It allows the wholesaler to still profit as the investor and separates him or her from potential liability should the original seller or ultimate buyer file a complaint. It is simply a more legitimate way to wholesale where everybody wins and the consumers are protected under brokerage law. You can actually use this as a selling proposition.

Selling the Contract

You have established a database of buyers and now you have filled an order for the buyers in your database who have indicated they want to buy this type of property. So, now you have to tell them about it. You have to sell it so that the current owner gets his price, the buyer gets a great deal and you make a wholesaling. Remember this classic description by Bill Cosby: “If you give me a prime rib complete with a potato and sour cream and chives and a side salad served on a trash can lid I won’t want what you are offering me. However, if you present this same meal to me on fine china and silverware then I will want it.”

When you are wholesaling you want to create an investor package showcasing your wholesale deal in such a way that it gets attention and appeals to your buyer(s) enough so that they will want to buy it. I suggest creating a brief portfolio with photos, a written description of the property and the surrounding area, and a pro-forma projection of financial results for the buyer of this property. You can initially create a flyer to pique the interest of several buyers and only provide the portfolio to the buyer who is interested. You will want to showcase this juicy deal on your website and even post a Facebook ad and a LinkedIn post to attract your buyers. There is a free system called Postlets you can use to drive buyers to your website along with the Facebook and LinkedIn traffic. If you have done a good job building your database of buyers, and you have found and secured a great deal, then built an appealing presentation and communicated it to your buyers using the channels available to you, then you should make a profit for all of your effort.

For more information please call 1-800-931-2605 or email Gary@winrealtyadvisors.com or you can visit MyInvestmentServices.com

Written by Gary Wilson, June 13, 2014

How I Did 110 Transactions A Year With NO Assistants…And You Can Too… Get My Case Study Now>> https://www.myinvestmentservices.com/gift

“Guiding You to Massive New Wealth in Real Estate in 1 Year or Less Guaranteed!”

RE Agents – This is how you make $ with Rental Investors!

Locating Rental Properties

Areas to Target

When you go out on your hunt for rental property you must keep things in perspective. First of all, you are not going to live there, your tenants are. What you perceive as being acceptable may or may not be acceptable to them and vice versa. As a result, if you find yourself saying, “I could never live here, let’s go,” then you are already in trouble.

A good rental area may not be an area where you would live, but it may have some of the same characteristics such as the proximity to schools, shopping, bus service, parks, major highways, hospitals, police stations and fire houses. Generally speaking, it is good to be near schools and parks. It is also good to be close by shopping and transportation. While you don’t want to be miles and miles away from hospitals, police and fire protection you also don’t want to be only a block away from them either. You do not want to be too close to industrial sites, directly behind shopping centers or storage facilities.

How to Find the Right Neighborhood

Focus on where you will get the best return on Investment (ROI)

By now, I’m sure you have questions and maybe even concerns. If so, please call me at 1-800-931-2605 or email Gary@WinReatyAdvisors.com. You can also learn more by visiting MyInvestmentServices.com

Fear not. Millions of others have walked your path before. Here is a brief explanation of the different socio-economic classes of neighborhoods. You may be surprised to know that there are rentals in all of these areas including luxury high end.

Low income neighborhoods usually work well as rental neighborhoods. Notice I did not say bad neighborhoods, I said lower class. What I mean by that is lower on the socio-economic scale.

If you would like to learn more about this process, please call me at 1-800-931-2605 or email Gary@WinReatyAdvisors.com. You can also learn more by visiting MyInvestmentServices.com

Analyzing Rental Properties

The first and most critical research to perform is the financial analysis. The first ratio is that when you add the cost of purchasing a property to the cost of rehabbing a property the total of these two costs must not exceed 70% of the After Repair Value (ARV) of the subject property. This is the minimum acceptable ratio. The less money you have in purchase and rehab costs relative to ARV the better.

Financial Analysis – The following is an example of a property I owned and sold to a fellow investor. I actually sold it for $65,000.00 so it was an even better deal. Let’s take a look and break it down.

3834 Brighton: Large up and down duplex with, new and separate G + E and new furnaces. Tenants pay G + E, I pay water. Residential neighborhood. List for 79,900

Income: 1125/mo ( 1st fl 1 bedr = 450, 2nf + 3rd fl 3 bedr = 625, garage = 75) = 13,800 yr

Taxes: 695.96/yr

Insurance: 322/yr

Water: 1388.50/yr ( includes sewage and garbage )

Maint/repair: 600/yr

Net Operating Income: 899.46/mo = 10,793.54 yr

Purchase price: 70,000, Down payment: 14,000

Loan: 56,000, 20 yrs, 5 %

Debt Service: 369.58/mo

Cash return: 529.88/mo = 6358.56/yr

Cash on Cash return rate = 45%, Cap Rate = 15.4%

Notice that I provide the gross income first. Then I give the basic routine expenses of the property on an annual basis. Then I provide the net operating income (NOI). This format follows closely the IRS Schedule E format. This is for a very good reason. It is a pretty good format to use when analyzing properties and it is also in the format the tax accountants and the IRS use.

After the NOI, I provide a projected financing scenario based on the current lending environment. The terms may change with the economy but the math is the same. This gives a prospective investor a pretty good picture of what to expect. It also allows me to project income on a cash basis and the cash on cash ratio. The cash on cash ratio is the cash income after all expenses plus debt service (loan payment of principle and interest) divided by the capital outlay to purchase the property (down payment or out of pocket cost to acquire the property). This ratio is what you can use to compare to returns on other types of investments like stocks and bonds. This to me is one of the most important ratios to look at when analyzing a property.

The next important ratio is the capitalization (CAP) rate. The cap rate is the NOI divided by the total purchase price (down payment plus principle amount of any loan) or sales price of the property. In this ratio debt service is not factored in. So, the NOI is used before debt service is paid for. The CAP rate is the industry standard for evaluating a property particularly from a lender’s perspective. It is used to compare properties against each other. CAP rate also reflects the relative risk of a property. So a property that has a high CAP rate may be in a less desirable neighborhood and naturally a low cap rate may reflect a property in a good neighborhood. The CAP rate is an inverse ratio. In other words, the lower the cap rate the more expensive the property and the higher the CAP rate the less expensive the property. I suggest you get used to using both ratios. I personally put more emphasis on the cash on cash return because cash is king and I want to know how much is coming in and how much is going out to get the cash coming in.

Here is another way to view cash flow analysis:

Cash flow Worksheet

Gross Rent:

Expenses:

Taxes:

Insurance:

Utilities:

Maintenance and Repairs:

Property Management:

Net Operating Income (NOI) = Gross Rent – Expenses

Mortgage payment:

Cash flow = NOI – Mortgage Payment

Cash flow Formula: Rent – Expenses = Cash flow

Terms:

Gross Rent – The highest amount you can get monthly from the property.

Expenses – The total amount of necessary payments for the property.

Cash flow – The amount of money you pocket after all expenses and mortgage payments are paid from the rent.

If I like the return I next have to determine if I like the property itself from a physical perspective.

Physical Analysis – Once you have identified properties is priced at or below market value for the neighborhoods they are in and with negotiating you can get the prices down even further (more on this later) it is time to do the physical inspection (after you do drive-bys) of the property to determine what is needed for rehab and how much it is going to cost.

Making Offers on Rentals

This is where the rubber meets the road.

You have come a long way and now it is time to make the offer. You should not violate the maximum allowable offer (MAO). If you trespass beyond this line you will be tempting fate and less profit. The MAO is the most you should offer for a property. MAO is the ARV of the property less your 30% profit margin, then less your rehab costs. So, if you have a property with an ARV of $100,000.00, and subtract the 30% profit margin, that leaves $70,000.00. Then if your rehab costs are $20,000.00 you subtract that from $70,000.00 to arrive at an ARV of $50,000.00. I suggest starting out offering less than $50,000.00. Depending on the market I would offer from 5-20% less than the MAO. In a market where there is a lot of inventory I would offer as much as 20% less than MAO, $40,000.00 in this case. In a market of tight inventory I would offer 5% less than the MAO or $47,500.00 in this case. ARV is arrived at by looking at comparable sales, comps, from the area. Either you or your realtor needs to be the expert in the area in which you are investing. I cannot emphasize how important this value is. If you project too low your offer will not get accepted. If you project too high then you risk paying too much for the property. You have to get it right. Period. The following is a chart you can use in your efforts:

Maximum Allowable Offer (MAO)

ARV:

Less Costs (30%):

Less Repairs:

Equals MAO:

Starting Offer (MAO less 15%):

Formula: ARV – 30% – Repairs = MAO

Terms:

ARV – After Repair Value. This number is derived from Comps, CMA’s, and other appraisal tools.

Costs – These are the costs to get into (and sometimes out of) the property. The table below depicts the cost breakdown. Costs average around 10% and include commissions to real estate agents, carrying costs and closing costs.

Repairs – These are the estimated repairs. Use the supplied Rehab Worksheet to get your initial estimate.

MAO – Maximum Allowable Offer. This is the theoretical maximum you can pay and NOT leave any of your money in the deal after refinancing. This is NOT a requirement to do a deal, however what is acceptable to leave in will be different for everyone depending on your own cash flow and financial ability.

Starting MAO – Get this number by subtracting another 15% from your MAO. This is a decent starting point to begin your negotiations. If you get no counter offers at starting MAO, you will need to increase your initial offer. Market conditions will always impact starting MAO.

Before going over the forms to use let’s look at a plan for you to follow when going on your hunt:

Instructions for new Win Realty Advisor students – rentals

This is the exact plan I followed when I made all of my investments. It is the plan I used when teaching several hundred students and it is the plan I follow when I teach real estate agents how to work with investors. It is a good plan. Follow it.

1. First we will have a telephone conversation to go over goals. At this point you need to have available cash or credit to continue .

2. Send in email to me: your name, email address, and phone number.

3. I will set up your search criteria on the MLS system.

4. Initially you will get an email with a link to the MLS system. The first property matching the search criteria will be shown with a drop-down box at bottom left allowing you to scan forward to other listings. You will be receiving the “FULL” listings. This first email will consist of several hundred listings.

5. Next, you will separate the good from the bad. Your objective is to narrow the list down to about 30 properties. You do this by comparing the list price to the market values for the area. The list price should be below the market value. Also, look at the photograph(s) of the property, the lot size, room sizes, and other characteristics of the property. This will take a few passes of the listings. As you narrow the list down also use the county web site for further research. This is a process that you will get better at with experience.

– For multi units my experience shows me that I should get $400-500 for 1-bedroom apartments, $450-650 for 2-bedroom apartments, $600-750 for 3-bedroom apartments. Taxes can be obtained from the listings. Insurance should be 0.5% of value annually ($100,000 property is $500 per year). I try to keep price per unit to $35,000 or less per 3-bedroom unit, $30,000 or less per 2-bedroom units, $25,000 or less per 1-bedroom unit. *NOTE: different areas will have vastly different models. Study your area and make adjustments accordingly*

– There are variables here like the condition of the property (turn-key verses rehab).

– Trust your instincts to focus on what you think are better deals and eliminate the rest.

– You will get better with experience and I will be guiding you.

6. The resulting list of 30 or so properties is your drive by list. Now you will drive by the properties to further narrow your search down to 10 to 15 properties.

7. At this point you will email to me the MLS #’s (in a string separated by commas) of these 10 to 15 properties. At this point I will review your homework and narrow the list down further. I will make notes to show you my work. This will typically result in 7 final properties.

8. Now we will schedule an appointment to go see the properties.

9. After viewing the properties you should have a list of 4 to 7 properties that you will fill out the MAO, CASHFLOW and cost sheets for.

10. I will review this work and with my help you will decide which properties to make offers on.

11. We will fill out the sales agreement, make a photocopy of your hand money check, and provide both with your proof of funds to me. I will provide comps to verify your ARV(s).

12. Now we make the offer(s) !

As you can see, in the way I teach investors and the Real Estate agents who work with them, most of the work is performed by the investor! You get a commission when they buy the property and they are repeat customers. You also can get the commission when they sell their rentals. You can even earn money by managing their rentals. What’s not to like?

To really grasp this process I recommend you take the accompanying training course for buying rental properties. To learn how Please call me at 1-800-931-2605 or email Gary@WinReatyAdvisors.com. You can also learn more by visiting MyInvestmentServices.com.

Written by Gary Wilson, June 11, 2014

How I Did 110 Transactions A Year With NO Assistants…And You Can Too… Get My Case Study Now>> https://www.myinvestmentservices.com/gift

“Guiding You to Massive New Wealth in Real Estate in 1 Year or Less Guaranteed!”

RE Agents – This is how you make $ with flippers!

Many real estate agents struggle when working with investors. It doesn’t have to be that way. In this blog I will show you what I do when working with investors who want to flip homes and how I make a lot of money doing it while they do most of the work.

Investor Rules of Engagement

Flipping Houses for Profit

Locating Properties

Areas to Target

When you go out on your hunt for a property to flip you must keep things in perspective. First of all, you are not going to live there. Maybe you will but it doesn’t matter. What matters is data supporting your investment decisions. That data must suggest that any house you flip should be in an area where homes are selling easily, quickly and for all if not most of the listed asking price. Also, what kinds of homes are selling? Three or four bedrooms, two or three bathrooms, two stories or ranch? Do most of them have garages and family rooms? You want to flip the same kinds of houses that are already selling. This information is available to you from your investor/realtor.

How to Find the Right Neighborhood

Focus on where you will get the best return on Investment (ROI)

By now, I’m sure you have questions and maybe even concerns. Fear not. Millions of others have walked your path before. Here is a brief explanation of the different socio-economic classes of neighborhoods. You may be surprised to know that you can flip in all of these areas including luxury high end.

High End neighborhoods are not where you want to be in the flip business if you want a decent return on investment (ROI).

Middle class homes are generally where you want to be when flipping houses. This is a broad range and best of all it includes the range where first time home-buyers are active! There are some areas of the country where middle class houses work exceptionally well for flips. If you are in one of these areas middle class homes may be your thing.

Low income may work for flips but it is generally not as good as middle class. The people living in these neighborhoods may not be as financially well off as you or me, but it doesn’t mean they are bad people.

War zones are usually identified by your intuition telling you to RUN!!!! Trust your intuition. Trust your powers of observation too. If you see cars up on blocks or homes up on blocks, run. If you see windows and doors boarded up, run. If it is a bright sunny day and you don’t see a living soul around, run. If you hear pop, pop, pop, run. Do I need to say anymore?

At the end of the day you need to get to know your neighborhoods. You can change a house but you can’t change where it is.

Targeting Properties to Flip

Some markets have almost no inventory while other markets still have too much inventory. I will describe the pros and cons of the different types of properties.

REO – REO is the accounting term banks use to categorize properties that they have taken back in foreclosure

Short Sale – A short sale is a laymen’s term for properties that are technically in default but have not yet gone through foreclosure.

Estate sales – Estate sales usually come about as the result of the home owner dying and leaving property to their heirs. If there isn’t a spouse still alive then the ownership usually passes to sibling children. More often than not the sibling children at first see dollar signs and are hopeful for a windfall. The reality is that the home they inherited is usually old and in need of a variety of repairs, systems upgrades and just downright remodeling.

Analyzing Properties to Flip

He who masters the discipline of proper property analysis will become the master of profit.

The first and most critical research to perform is the financial analysis. There are certain formulas and ratios you must learn and they are easy to perform. The first ratio is that when you add the cost of purchasing a property to the cost of rehabbing it, the total of these two costs must not exceed 70% of the After Repair Value (ARV) of the subject property. This is the minimum acceptable ratio. The less money you have in purchase and rehab costs relative to ARV the better.

Financial Analysis For Flips – Before you even set foot outside your house and turn over the motor in your car you must do some financial analysis on your desktop.

Before going over the forms to use let’s look at a plan for you to follow when going on your hunt.

This is the exact plan I followed when I made all of my investments. It is the plan I use when teaching several hundred students and it is the plan I follow when I teach real estate agents how to work with investors. It is a good plan. Follow it.

Instructions for new Win Realty Advisor students – Flips

1. First we will have a telephone conversation to go over goals. At this point you need to have available cash or credit to continue.

2. Send in email to me (gpwsaw@comcast.net) your name, email address, and phone number.

3. I will set up your search criteria on the MLS system.

4. Initially you will get an email with a link to the MLS system. The first property matching the search criteria will be shown with a drop down box at bottom left allowing you to scan forward to other listings. You will be receiving the “FULL” listings. This first email will consist of several hundred listings.

6. The resulting list of 30 or so properties is your drive by list. Now you will drive by the properties to further narrow your search down to 10 to 15 properties.

7. At this point you will email me the MLS #’s (in a string separated by commas) of these 10 to 15 properties. At this point I will review your homework and narrow the list down further. I will make notes to show you my work. This will typically result in 7 final properties.

8. Now we will schedule an appointment to go see the properties.

9. After viewing the properties you should have a list of 4 or more properties that you will fill out the MAO and cost sheets for. Sometimes you will do this for all the properties.

10. I will review this work and with my help you will decide which properties to make offers on.

11. You will fill out the “Offer to Purchase”, make a photocopy of your hand money check, and provide both with your proof of funds to me. I will provide comps to verify your ARV(s).

12. Now we make the offer(s)!

As you can see, in the way I teach investors and RE agents who work with them, most of the work is performed by the investor! You get a commission when they buy the property and you get the commission when they flip it. And they are repeat customers. What’s not to like?

To more fully appreciate and learn to use this process please call 800-931-2605, email Gary@WinRealtyAdvisors.com or visit MyInvestmentServices.com.

Written by Gary Wilson, June 9, 2014

How I Did 110 Transactions A Year With NO Assistants…And You Can Too… Get My Case Study Now>> https://www.myinvestmentservices.com/gift

“Guiding You to Massive New Wealth in Real Estate in 1 Year or Less Guaranteed!”