“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?
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