2K Dinner Questions
July 3, 2008
Happy Independence Day!
I hope you’re enjoying financial independence and if not - I hope you’re making the arrangements today to celebrate your own Financial Independence in the near future.
I made the mistake of posting the $2K Dinner Video just before leaving for Orlando on a 9 day vacation. I say it was a mistake because I only looked at the computer but two times the entire time I was gone and couldn’t answer some of the questions you had.
Anyway, I’ll try to answer the questions in this post.
First, in case you missed the video, here it is again:
Your questions:
“Where is Swampers Studios?”
There’s no such thing - it was intended to be a joke because I confessed in a previous video that I had no idea what the hell the Swampers were, here’s the other video:
you never showed how you assign the deal, weather it was a deed or an option you got from the homeowner.
Plus you didn’t mention that these techniques will only work with homeowners who owe far less than what there home is worth, or you’ll never find a motivated buyer to assign them too.
Unfortunately, in todays market I think there is a much more abundance of homeowners who owe more that what there house is worth
1st - yes I did show how I did the deal. I used a warranty deed to take over the home, then resold the property to another investor in my market that I saw at dinner netting me a little over $2K. Remember, I didn’t want this deal because there wasn’t a lot of equity, however the investor I flipped it to, was happy.
Just because the deal may be tight for you doesn’t mean there isn’t someone else that’d be happy with that same deal.
I’ve seen deals that I wouldn’t touch that other investors are totally stoked to get. That’s why it’s important to build a list of buyers. There’s 3 different list of buyers you can target:
- A list of investors ( one of the easiest to find, focused strictly on the numbers )
- A list of A credit buyers looking for homes to live in ( focused on falling in love with the home - looking for a pretty house )
- A list of buyers looking for houses with credit challenges with a money to put down ( need flexible financing )
Finally- yes there are more deals where the homeowner owes more than the home is worth, however there’s still deals (remember - this is a numbers game!)
And what are you doing with the deals where homeowners owe more than the home is worth but are willing to deal?
Are you not pursuing short sales for these deals?
I’ll tell you what - Send me those deals and I’ll do ‘em.
Banks don’t want houses, so they’ll discount. So, lets say you send in 5 short sale offers - will you get every deal?
Probably not, but what if you get 1 or 2?
Remember - it’s a numbers game!
Who’s the chick in the film?
That’s my new girlfriend…
Just kidding - I have no clue.
What about investing in California
I feel there’s still money to be made in the California market, however investors should be crystal clear on the numbers. I like Kiyosaki’s outlook in these videos:
Rich Dad Video on the California market
Most “short sales” are failing, because the bank “loss mitigators” are not responding before the auction date and the property is foreclosed. If you can negotiate with a loss mitigator before the auction date and reach agreement, then you can “double close” with your buyer.
This continues to be a challenge, that’s why I highly recommend marketing to obtain pre-preforeclosure leads, so that you’re able to get the lead before anyone else knows there’s a problem and so you’re given enough time to negotiate, then sell the deal.
Gotta go and get ready to bbq and blow up some stuff.
Have a safe 4th
Derek
I’m still alive
June 6, 2008
As you can see, it’s been a few weeks since my last post.
It’s been extremely busy here with kids getting out of school, planning a vacation, and running multiple businesses…
Let’s get back on track with this week’s Free question:
I missed my opportunity in California in 1998, it is now 2008, and I
don’t want to miss it again. I’m looking at buying your
pre-foreclosure coarse, but I want to ask you a couple of questions
first.
1)I know this will work anywhere, but the California market appears
to be a different animal. My question is, will your program work for
California. The reason I ask that is some gurus give great advice,
but it is only for their specific market.
2) Maybe your coarse will cover this but I would like to know first
if this is OK how in the world do you get the loan current on a
preforeclosure, without using your own money?Derek, if you ever come to California I will take you to see the
Clippers, naw just kidding, the Lakers I mean. We also could catch a
baseball game( wherever) my treat just to pick your brain a bit
First, understand the market is just making a correction. You know 10 years ago, people were wondering if they could still make money in the California market as prices continued to soar. Some sat on the sidelines and just wondered…
And some made money, but investors had a different complaint 10 years ago. The complaint was that they couldn’t find the deals.
Now, people are lining up ready to hand the deed over just to get out from under the deal. And, now people complain they can’t sell the deal.
Let’s look at my market - good ole’ Alabama…
Different market entirely - It never really took off like some of the bigger markets, and investors here would complain that they couldn’t make money because of lack of appreciation.
People will always wonder, always complain but the only people that really make any money at all are the ones that stop wondering and start doing.
Let me ask you this - do you think there’s no one making money in California investing in Real Estate?
Someone’s buying deals left and right and I’d almost be willing to bet there’s a significantly lesser amount of competition.
Play it smart but get going.
On to question #2:
I have buyer’s lined up ready and willing to invest in the deal before I ever talk to a seller.
They know if I call, then they’d better get off their ass and look at the deal. I’ll use their funds with a double close or to catch the payments up if I’m in a time crunch.
When you already have a backend (a buyer) then you’ve just got to focus on finding good solid deals that meet their criteria.
Lastly, I’d love the Lakers game, but you’ll probably never see me in California cause I hate flying.
I’ve flown several times with each time hating it a little more. I believe it has something to do with the lack of control.
Gotta go -
Derek
PS -By the way, this next week celebrates my 8 year wedding anniversary!
Owner Wants Out - Big Deal?
April 25, 2008
Howdy…
It’s Friday and I’m taking the afternoon off, but first I owe you this week’s Free Question Friday - right?
I received several questions this week, but the one I received this morning made my blood boil…
Here’s the question:
Message: Hi Derick!!! Hope everything is going fine with you!!! My
question is I have a home ownwer who is 1 payment behind has a very
nice home wants to short sale Don’t know what year was purchased but
it was for 55,000 owes 196,000 in a good market would probably bring
this is a guess but I figure around 225,000+ has made alot of up
dates even added on a work shop. 5 beds 2.5 baths is upside down in
his morgage. Do I need comps to make a sensible offer or would you
shoot from the hip? Small town Iowa. I have a network of all cash
Investors Owner wants to sell Now!!! Any help would be
appreciated!!!! Thanks .
FRUSTRATED- your Free Question Friday
April 18, 2008
Hola,
Hope you guys are doing well…
A comment appeared on the blog this past week:
“Im just so freakin frustrated…”
For many, they never take any action. Sure, they’ll read a book, grab a course, take a seminar, but for some reason - they never get around to running their first classified ad, never call a realtor to build a relationship, and never even begin to think of starting a direct mail campaign.
Is it fear?
I think so, but I can’t say for sure.
I believe for some, they intend to do well. They mean to get going, but something always comes up today.
And as a result, we put off our intentions for another day, and then another, till we’ve completely lost sight of our vision in the first place.
Then, just maintaining our concentration is a challenge in of itself. Read more
An Intimate Proposal, plus Preforeclosure Questions - This Week’s Free Question Friday
April 4, 2008
Howdy…
You’ll not believe the question from this week’s Free Question Friday.
I guess you’ll have to see it for yourself…
Gotten lots of feedback on the videos from this past week in my truck. Just so you know, I wasn’t being tailed like I initially thought, I guess I’m just paranoid.
Feel free to comment on the blog and pass it along to someone you know by clicking the “Share This” button below the video.
Keep your questions coming, by submitting them here
By the way, I hope you like the smooth intro and fancy music with this week’s issue…
Enough talking - so here’s ya go:
Finding Private Money - your Free Question Friday
March 28, 2008
This question keeps piling up in my email inbox:
“Where are the best places to find private money?”
First off, early in my career, I went to several websites, applied and what I found was that it was easier to get loans through a bank than some of these so called hard money lenders.
It seems many of these guys want their cake and eat it too- good credit, good down payment, and expect you to pay a hellashish interest rate.
The best way I know is through building personal relationships with other professionals. I’m talking people in your own local market.
Here’s some ideas-
- Research the assignments of mortgages to find out who’s buying notes at your own county records. (then start marketing to them with direct mail letters, postcards)
- Look in your local papers for hard money lenders - be sure they’re the real deal and not trying to broker the loan to someone else
- Look for other real estate investors to partner with. I’ve used private money - they put up the money, I did the work, we split the profits.
-Talk it up! When people ask what you do - tell ‘em. Let them know you partner with people and can bring them ridiculous returns all secured by real estate at pennies on the dollar.
Lastly, I’ve got some super cool videos I’m uploading that you’re gonna dig.
Derek
Free Question Friday
March 21, 2008
I’m about to head off to the NCAA Road to the Final Four First Round games in Birmingham. So today’s Free Question Friday is more of a general real estate investing tip instead of taking a question.
A student of mine called to asked if I wanted a Free ticket to tonight’s games and take me to dinner.
Knowing how much I love basketball - I agreed. This guy will get the most exclusive real estate training and the ability to ask me any question for the price of admission to a basketball game. (except he better not ask during the game or I’ll have to get medieval)
Not a bad deal -huh?
Recently, I carried someone to lunch that I have the utmost respect for in the business world and was hoping to pick their brains during lunch.
Well, not only did I get to pick his brain during lunch - we spent an additional 3 hours driving around looking at his latest projects and hanging out in his office while he dished out thousands of dollars worth of advice - all for the price of a meal.
So, this next week, make it a point to take someone to lunch.
Take an interest in what they’re doing.
Generally, people love to brag about what they’re doing .
Ask questions and learn. Strive to build the relationship.
Usually, all you have to do is ASK!
-Derek
Free Question Friday- Dealing with Motivated Sellers
March 14, 2008
The last two weeks have been insane!
My father in law (Tony) almost past away last week due to complications at the hospital. Last Tuesday he arrived at the ER sick from the flu thinking they’d give him some meds and send him on his way, but instead they admit him into the Intensive Care Unit and literally all heck breaks loose.
They tell the family he’s in serious condition (keep in mind he’s 50 years old with nothing wrong and strong as an ox) and they need to do exploratory surgery. They open him up for about 15 minutes and said - everything looks good - let’s close him back up.
48 hours later - Tony is on a vent, a feeding tube and has packed on some major weight from the fluids and yet the hospital still doesn’t have a clue what’s wrong with him. One thing that was wrong was the feeding tube- his stomach wasn’t processing the food, so it was overflowing into his lungs.
Anyway, he was stable enough to move, so the family moved him to another hospital and he’s looking better every day. But the hospital made some major blunders.
Moving on to this week’s Free Question: Read more
Free Question Friday - The Bank’s “Credit Line” Disappearing Act plus more
February 22, 2008
What a week…
Sorry for my absense this week on the blog, but I’ve had some pressing issues that’s involved falling trees, fighting with contractors, and more…
Enough - check out this weeks Free Question Friday:
Bank Drops The F Bomb
February 8, 2008
This week’s Free Question Friday revolves around what options you have when then bank drops the “f” bomb.
This week’s question will help you when talking with homeonwers in preforeclosure.
Click play for streaming:
Or you may click on the link to download the file:
