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The ABC’s of Wholesaling for Quick Cash

Cody Sperber | Investing Strategies > Wholesaling
" Three times may be the charm, but twice can be very nice. I mean, isn’t something so awesome and profound worth sharing a second time? I say, absolutely yes. It’s Cody Sperber here, and I’m back to share with you (once again) the fundamentals of wholesaling for quick cash… I’ve been advising and offering some REI goodies through training calls and lessons for quite some time, but I’ve realized that many of you out there in wholesaling land could use a refresher crash course (who couldn’t?!) on wholesaling for quick cash. And today, I’m here to deliver just that – a crash course in the fundamentals of wholesaling. I’m talking about the basics of wholesaling for quick cash – quick cash 101, if you will (and we will). It’s Back to School Time: Wholesaling 101 If you think you need a fat wallet to get started in the wholesaling biz, you’re wrong! Happy day, right? It’s good to be wrong sometimes! If you’re talking about owning real estate, that’s a horse of a different color. But if you’re talking about controlling real estate – which we are when wholesaling – then I stand by my statement; you don’t have to have a ton of cash to get your foot in the wholesaling door. So when we say the word “wholesaler” what the heck do we mean, anyway? A wholesaler is someone who finds discounted properties then pairs those properties with cash investors who want great deals. When all is said and done, the end result can be big, I mean majorly big, for the wholesaler, who, as I said, never needed major dollars up front to buy or sell a darn thing anyway. Well, let’s dig in as I break down the wholesaling process step by step. Step #1: Marketing to Distressed Sellers You’re the wholesaler, right? So first you’ve got to initiate marketing that searches for distressed sellers.  I’m talking about targeting homeowners facing job loss, foreclosure, out-of-state moves, unwanted inherited properties and distressed properties. Pay attention to homeowners who are also landlords looking to get out of the tenant business. Step #2: Negotiating with Distressed Sellers From marketer to negotiator, you’re a wholesaler, which means you’re going to wear lots of hats. Once you find distressed sellers, you’ve got to negotiate to buy your properties for cash at a significant discount from the “retail value.” The property’s “retail value” is the higher price for which a distressed seller would normally be able to sell his property – if he wasn’t anxious to purge the property. Step #3: Signing the Contract Once you and your seller agree to a low sales price, you can place the property under contract for eventual purchase (typically within 30 days of signing for distressed sellers).  Be sure to include a section immediately after the buyer’s information that says “and/or assignee.”  Why? When you sign a contract to purchase the property, you gain what is called “Equitable Rights” to that property. These equitable rights, combined with your contract’s terminology for “and/or assignee,” give you the right to immediately remarket the property to other buyers.   At this point in the wholesaling process, your search for another buyer becomes your top priority.  Step #4: Marketing to Cash Buyers Once the property is under contract, you can and should immediately begin marketing that property to your list of potential cash buyers.  Your mission will be to find a cash buyer willing and able to purchase the property at a price that is (i) substantially higher than what you contracted to pay and (ii) still lower than the property’s normal retail value. Sound like mission impossible? Nah. You’ll find that cash buyer, and when you do, you’ll discover that the difference between your distressed seller’s contracted value and your cash buyer’s ultimate purchase price is your cash to keep… That’s your profit as the wholesaler. 2 Ways to Close Like an MLB All-Star If you’re gonna close a transaction and get paid, you’ve got to get familiar and comfortable with the two types of closing methods. The Assignment Method In short, simply “assign” your cash buyer to the role of stepping into your shoes with the distressed seller’s contract. Charge an “assignment fee” for the process, much like the commission that a real estate agent would earn. But because you are a principal in the transaction you do not need a Realtor’s license to wholesale properties this way. Saweeeet! Advantages: It’s the easiest way to wholesale a deal Includes only a one-page form that “assigns” your rights in the original contract over to your cash buyer Less expensive than the Double Close method (incoming) Disadvantage: Discretion? Hardly. Everyone involved in the transaction will learn how much profit you are making The Double Close Method With this method, you can just use your cash buyer’s money to fund your purchase from the distressed seller.  Think of moving from point “A” to “B” then from “B” to “C.” You’re “B,” the middle man. In the first transaction, you buy the property from the distressed seller (A), and in the second, you sell the property to your cash buyer (C). If all goes to plan, there’s a smooth, seamless transition throughout. Advantage: Here, there is confidentiality. Only you will know what your profit is. Disadvantage: You’ll have to contend with two different sets of closing costs. The Proof Is in the Property The bottom line is you can become a real estate wholesaler who makes quick cash, well… quickly. If you feel the urge to pinch yourself, you’re not alone. Until you’ve closed that first deal – and you will – you may need a little proof to give you that little push, and in the case below, a little proof will go a long way. So, if proof is what you need, proof you shall have! A 60-year-old gentleman named “HA” (not kidding, real name) reached out to me after receiving one of my (awesome) absentee owner postcards. He wanted to sell his house (built in 1925), which was located next to Arizona State University. The property was (obviously) old and deteriorating, and HA simply didn’t want to bother with the repairs and maintenance. How did I learn this? By establishing solid rapport with HA, by asking engaging questions and by reassuring him that I could offer a solution to his problem. Marketing and rapport building are essential components of Step #1. Am I ringing a bell here? I did my recon and learned that the property was worth about $110,000 in its current condition, and should HA decide to renovate, he’d be looking at a property worth $200,000. With that in mind, I offered $45,000. Here’s where the negotiation began (Step #2). As I predicted, HA felt the offer was too low, so I countered with $55,000. Same response. He was playing hardball, and I was playing right along. In round 3, I was determined to stand my ground, so I “final” offered $65,000. HA responded with “nothing less than $70,000.” Ouch. This was way more than I wanted to pay, but I was confident the property would sell to a rehabber or landlord since it was next to a major university. So on went my big boy pants, and I agreed to $70,000. We met that day (at a local Starbucks) where I agreed to pay all closing costs, and HA agreed to a 30-day closing schedule – including a 15-day inspection period. And just like that, over a Grande Non-Fat Double Shot Caramel Macchiato, the deal was done. I left Starbucks with equitable rights for the property (Step #3), and even though I technically didn’t own the house, I controlled it. I had the power! Sorry, I still get carried away with the “super hero” attitude, but come on! Controlling a property is powerful stuff, and when you get to this point (and you will), pat yourself on the back. But wait, we can’t forget Step #4. I hustled to find a cash buyer using my marketing muscle – my mobile marketing machine software. I mass emailed and texted the property details to 250 local cash investors, and I listed it for $92,500. Within minutes (literally), I had a buyer at the property for curbside inspection. Bam! He offered me $80,000 cash and promised to close in 10 days. I waited patiently a few more hours to see if anyone could make me a better offer, but he was my guy. I accepted his offer, sent over my one-page assignment form, and he immediately signed and sent it to escrow (along with a $2,500 non-refundable earnest deposit). In less than 2 weeks, I received a check for $10,320 (my $10,000 profit and my $320 earnest money refund). So let me quickly recap. I helped my buyer unload his unwanted property. I sold the property to an investor who would reno the property and rent to college students (win/win), and I made some fast, fat cash as a result. Not bad for just a few hours of work, eh? Well, I hope this wholesaling refresher was helpful and perhaps reminded you of a few tactics to help you get and close deals for quick cash. Whatcha Think? Got any basic wholesaling questions or thoughts? Hit me up down below   "
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9

'Spidey Sense' Tingling? (Learning to Trust Your Investor Instincts)

Cody Sperber | Inner Game
" Hey guys and gals, we’ve got another awesome lesson from The Amazing Cody Sperber – your neighborhood friendly investor. Today we’re going to talk about your investor Spidey Sense, aka that inner voice, intuition, instinct… a gut feeling that you get that helps you decide if an investing opportunity is good or bad. With Great Power Comes Great Responsibility Investing and making some really good money can make you feel powerful and hungry for more.  And unfortunately, sometimes we want to ignore that Spidey Sense that makes us great investors. Most of us have to learn this the hard way (often, more than just once), but today I ‘m going to share with you my story in hopes you don’t make the same mistake. I Goofed so You Won’t We bought a house at auction and the owners were still in the property. We let them know that they had to leave or we would help them move. They asked us what we were selling the property for and we told them… The next day they contacted us and said they had a real estate investing friend that might be interested in buying the house and letting them stay there. We, of course, said, “That’s great!” And about 10 minutes later we had a contract come our way. We were all excited because it seemed like a win/win situation and we were going to make about $10,000 on the flip. Well, come to find out, in this contract the terms weren’t the same as the terms we would normally put in a contract. In our wholesaling agreements, we like quick closes. Even though this buyer was buying with cash, he had it as a 30-day close. Also, he didn’t want to put down any earnest money. Two troubling things that just didn’t seem to make sense. So I call the guy, whom we’ll call Green Goblin (just for fun) and I say, “Look, Green Goblin, we gotta change some of these terms and we got to change the title company. We have to close within 7-10 business days. We also need $2,500 non-refundable earnest money.” Well, the Green Goblin just kept talking in circles and ending up in the same direction he wanted to go. Finally I said, “Look, you’ve gotta abide by our terms or Shazzam!” And he refused. So we are kind of at a weird stand-off.  But he kept reassuring me not to worry…that the deal would happen… and that he wanted the property as long as it had a clear title. He said as long as we are good with the inspection he wanted the house. I got off the phone and told my partner – whom we’ll call Captain America (just to stay in theme) – what the Green Goblin had said. Captain America says, “ABSOLUTELY NOT.” So then Captain America calls the Green Goblin and gets the same run around. And here, folks, is where I should have but didn’t listen to my Spidey Sense, and here’s why… I wanted that $10,000 so I stretched for the deal, even though deep down I had a feeling this was gonna go south. Like a gut feeling, the lure of money speaks volumes, too. So, against our better judgment, we went into escrow on a contract for a 30-day close with $0 earnest money on the deal. (I know, you’re probably shaking your head. I’m rolling my rolls at myself as I relive this. Ugh.) About 10 days later, our title company officer let us know that the guy was nonresponsive and she couldn’t get a hold of the Green Goblin. So we call, but no answer. We then cleverly blocked our phone number and finally got a hold of the guy. He said, “Look, the deal is kind of falling apart with me and the owners for the rent-to-own program.” I say: “That’s really not my fault Green Goblin. Look, whatever is going on with you guys has nothing to do with me. You have a deal with them and you have a deal with me. They have nothing to do with each other. You have to perform per our contract.” He tells me he isn’t doing the deal if he can’t do the deal with the owners. So, of course, we’re pissed off because now we are in escrow with someone who has the right to buy the property for 30 days and we can’t do ANYTHING. Unless we both contact escrow and cancel, it just sits there for 30 days. 30 loooong days. So then we call the original owners and find out that the Green Goblin was trying to rip them off big time. The Green Goblin wanted $7,500 as the option deposit, and he wanted them to pay a too-high rent for $1,400 a month (when it should have been like $1,200, max), and then he also wanted them to buy the property with cash after 12 months for $7,500 more than he bought it for from us. These people just went through foreclosure, so there is no way they would be able to do this deal. The Green Goblin was just taking us all for a ride. Lesson Learned So remember, even though you want that cash, never do the deal without: (1) earnest money to know they are serious about the deal, and (2) your own paperwork and terms to give you all the control, especially about closing. I sure hope this helps you guys from making the same mistakes. Don’t ignore the tingle! Ya know, this lesson was pretty good, if I do say so myself. So please, check out my awesome previous training call and other super-helpful lessons here at Mogul.  Share Please As always, leave any questions or comments below. I love hearing from y’all.   "
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9

A ‘Double Close’ Wholesale Case Study

Cody Sperber | Investing Strategies > Wholesaling
" Howdy, folks, Cody Sperber here... I hope all y’all are as hunky-dory as I am. Hopefully, most of you guys are familiar with me by now from my previous (awesome!) training call and other (super-duper) lessons I’ve done here, at Mogul. Oh, and check out another recent lesson I did about wholesaling for quick cash. Well, today is your lucky day because I’m going to share with you guys an experience I had with one of my own personal deals, so that some of you can have a better understanding of a double close. And, I am quite the storyteller, if I do say so myself. Let the study begin Picture it… Final Destination: 531 Alameda Drive It was an eerie, smoldering morning… the 7th day of August, I recall. I decided to take a new route to the office and “drive for dollars.” Driving for dollars is one of my acquisition strategies. Basically, it’s all about driving around town and looking for distressed, abandoned or odd-looking houses that you would have missed if you’d taken the same daily route.    Side Note… When I do see a property that is a potential deal, I do this: Write down the address Snap a picture of the exterior Grab a bandit sign and throw it in the front yard that says “I Pay Cash for Houses” along with my phone number Anyways, back to the story… I was driving for dollars when something stopped me dead in my tracks about two blocks before reaching the office. She was beautiful. Not only because of her outside, but also for what was going on on the inside. She was surrounded by a crew of people discarding all her contents (furniture, carpet, trash, etc.) into a giant dumpster.  I was diggin’ what I saw, so I took a picture, wrote down her address, and left my number (bandit sign). (Just like I explained in my Side Note above.) Once I arrived at my office, I diligently checked the tax records of my newly discovered jewel to see if its taxable mailing address was different than that of the physical property address.  DING! DING! DING! The addresses were, indeed, different. Side Note… Question: If a potential deal has a different taxable mailing address from its physical address – what does that tell us? Answer: It’s a great indicator that the owner of the property lives elsewhere.  In this case, it also told me that the property was owned by an individual, a Mrs. Dorothea B. Zimmerman (Revocable Trust), and not owned by a bank. Anyways, back to the story… Okay, so I discovered the owner’s “real address” and hastily mail merged my curbside photo of the property into a simple flyer template, designed to grab the owner’s attention by asking as simple question:   Is this your property? Because I want to pay cash for it. I then mailed out the flyer, sat back, relaxed and drank some tea. The Cliff Hanger At this point, one of two things could happen: Either… A. The owner may be so pissed off upon seeing my sign in his front yard that he decides to call me and ask why I placed my sign in front of his property. When this occurs, I politely explain that I am “truly sorry” for being “too aggressive” for his taste, but I was “only trying to get his attention” (which I succeeded in doing).  OR B. The owner may get my flyer in his mailbox and be greatly inspired to sell me their house. OR C. Where art thou? It’s a great mystery that Sherlock himself couldn’t solve. Alas… The flyer I mailed found its way into the hands of the property owner’s daughter-in-law, who called me to say that the elderly owner had just moved into a long-term care facility, due to stage three Alzheimer’s disease.  The owner’s daughter-in-law also let me know that the property I spotted had recently been occupied by crazy cat woman.  Most importantly, I learned that the owner’s daughter-in-law (and her husband) lived over three hours away – and neither of them wanted to deal with this “problem” property (Yippee!). They owned the property free and clear (such sweet words to my ears), which means nothing is owed and they had Power of Attorney over the mother’s estate.  I asked the daughter-in-law what they might want to sell the house for, if I was willing to pay 100% cash, and she said she wanted around $100,000. She also told me that the property needed a full remodel. After I asked all the questions I needed from the daughter-in-law, I immediately got off the phone and ran comps for her property and did some online research. My research indicated that the property would be worth around $200,000 if it was fully remodeled.  And since it was right around the corner, I immediately drove back to the property to conduct a quick visual inspection. Of course, the house was of great devastation. She was a horrific sight and her smell was putrid, but I loved her anyway.  I estimated that a full remodel on this 1,700-square-foot beauty would cost around $30,000 to restore her to all her glory. So I began to fantasize about my offer in my head. Romancing the Deal: The A – B Side of a Double Close So… I called the crazy cat lady’s daughter-in-law and I told her that the most I could pay was $85,500, and that we would need to split the closing costs.  She countered by telling me that she and her husband could not accept any offer lower than $90,000.  So I told them I would be willing to pay $89,000, in addition to covering all the closing costs – and they agreed (SCORE. Yeah, me!). Using email, I immediately sent them a Purchase & Sale Agreement, which they promptly signed and sent right back. I now controlled the property.  MWA-HA-HA! (If you didn’t read that in your most evil, sinister voice… please read it again). Side Note… In every single real estate transaction, I always make sure that the seller benefits in the transaction.  For instance, in this deal, the daughter-in-law and son were elated to get rid of their “problem property” in order to focus better on helping the sick owner adjust to a long-term care facility. Because they sold their property to an investor (and not through traditional channels) they enjoyed a “hassle-free” sale and received the cash they needed to care for their ill family member. Okay, so back to the story… As soon as I received the contract back, my intern added the property to our wholesaling website and blasted it to our database of cash buyers, using my Mobile Marketing Machine software to advertise a $121,000 asking price.  Simultaneously, we faxed the contract over to my investor-friendly closing agent to open escrow. Sealed with a K.I.S.S.: The B – C Side of a Double Close I let my closing agent know that I planned to use the Double Close method, because I was going to be making a lot of money on this one, and I did not want everyone involved in my transaction to know how much I was making. Within minutes of advertising the property via text message, I got a call from a guy named James who said he would take the deal if we would sell it to him for $118,800.  I agreed and emailed the Sales Contract for him to sign.  I informed my intern that he needed to take the signed agreement to my investor-friendly closing agent, along with his earnest deposit and open escrow. Then, I just sat back, relaxed, and waited for the deal to close. Here’s the double close part: We then closed both escrows, which means that part of the funds from the B-C escrow floated over to fund the A-B escrow – and the remaining balance in the B-C escrow was paid out to me as my profit. Isn’t that beautiful?! I told you I could tell a story… Who else could talk about real estate and include a little romance, horror, thrill, fabulous wit and even a bit of Shakespeare? Share Please Would you like to share some of your real estate drama?  Give us a shout out below.   "
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9

Here’s the ‘Matrix’ I Use on Every Deal

Cody Sperber | Business Development
" Hey, it’s Cody Sperber here... So, you guys are familiar with me, have read many of my lessons and heard my training calls, but one topic you can’t seem to get enough of is my fast cash profit matrix. The greatest benefit from this tool is that I’m more equipped to construct deals that meet the seller’s needs, while at the same time, fit perfectly into both my short-term and long-term business plans at any given time.  The reason I get such a positive response from this topic is that once I explain it to my students, a light bulb seems to go off in their head and they have a complete “A-Ha” moment. So are you ready to shed some light on real estate investing? Let’s get to it. The Four Transaction Baskets So, for starters, the way I see it you can take any potential deal that comes your way and drop it into at least one (maybe more) of four different “transaction baskets.” These baskets are: Wholesaling Buy, Fix, and Flip Creative Real Estate Buy and Hold Here’s a graphical look at the matrix I’m talking about: Each of the four quadrants of this matrix represents one of the “transaction baskets.” And as you can see, each one is a type of deal structure that ultimately creates an entirely different experience and net benefit for you. But Which Basket Do I Put My Nest Egg In? If you are a newer investor, I strongly encourage you to set both short-term and long-term goals for your business right from the start. And of course, these goals should take into account the type of income you’re aiming for (fast cash vs. cash flow), as well as your current available resources components, which you can see represented above and beside the matrix. So you’ll be asking yourself these 4 questions: Am I all about chunks of cash? If so, then you are all about transactional income. Or… Is cash flow more my goal? If so, you’re all about residual income. And… Do I have access to cash/credit to leverage? If not, can you get it? Or… Am I basically cash/credit broke? If so, consider this only temporary. Now… If you hold up to the matrix pictured above your honest answers to these questions, you can tell pretty fast which basket(s) will be the best fit for you to focus on primarily, right? Be aware that I always encourage you to keep an open mind, because any lead could take on a life of its own. I’m a big fan of outside-the-box thinking and highly recommend. In fact, I prefer presenting more than one offer to a motivated seller whenever possible – maybe one cash, one terms and one that’s a combo of the two. Because the fact is you never know what kind of opportunity you can open up for yourself with a little creativity. But generally, your short-term goals and resources will chiefly determine which of the four baskets your lead ends up in – or at least which basket you’ll strongly favor. Basket #1: Wholesaling I would say wholesaling is the ultimate no money down investing strategy… and you need to learn how to wholesale real estate. It’s very low risk. You don’t need a lot of resources. You do need a little money but not much at all. Basically, you need a phone, a computer and, ideally, the ability to do at least some marketing, even if it's cheap guerrilla marketing. In its simplest form, wholesaling is putting a piece of real estate under contract at a significant discount, then turning around and flipping that contract. Basket #2: Buy, Fix and Flip For many, the next natural step seems to be trying your hand in the fix and flip basket. You still get to enjoy the cash-now aspect, but it also takes a little more in the resources department – specifically you’ll need access to cash/funding. There’s also a higher risk, though your paydays will tend to be much fatter than your wholesale deals – as in slower dimes vs. fast nickels. Truth be told, the fix and flip arena is rich with opportunity – you can make a stinking fortune honestly. But it requires a different set of skills and mindset than wholesaling – a factor most don’t really tend to consider before jumping in. Dropping deals in the fix and flip basket means you’ll be managing contractors, drawing schedules, dealing with Realtors, commissions, hold times, market shifts, etc. But you should really just go in fully aware that it’s a whole different game than wholesaling and be prepared to learn about it. Basket #3: The Creative Real Estate Basket At some point, investors often find themselves getting the itch to try something a little more creative. And thus enters the basket of Creative Real Estate Investing. The world of creative real estate investing is just that – very creative. Also very deep and very wide… Seriously, you just have no idea how many different ways there are for you to skin a real estate cat until you start dipping your toes into these creative waters. This is the realm of the transaction engineer. You’re using your creativity (rather than just cash) to think outside the box and work your way into or out of transactions. Through creative paperwork and concepts, you position yourself to profit nicely from deals most “normal” investors wouldn’t even recognize if it hit them in the face. There are so many different ways you can do this, we could literally spend all day breaking down each individual technique. But here’s a few to think about: Lease options Sandwich lease options Wrap-around mortgages Creating and buying/selling notes… Subject-to investing… What you really need to understand is, in light of the matrix, the creative world typically favors those who like to get into a deal with little-to-no cash/credit involvement, and it also tends to be a great place to create streams of cash flow income. Make no mistake – you can definitely score cash chunks in the creative realm too. I think it’s the most diverse and option-full of all the baskets. But the cash flow opportunities are rich and plentiful. Also the creative basket is often a good bit more involved and in-depth than the others, which can sometimes mean a little higher learning curve. But it can also be extremely worthwhile when you find yourself being able to craft creative, profitable deals seemingly out of thin air. Basket #4: The Buy, Fix and Hold Basket Then the final frontier for most investors is typically building long-term wealth, right? That’s maybe even why we got involved in real estate in the first place. We all said to ourselves we want to get rich through real estate. And often, before we even know about things like wholesaling or creative real estate investing, we automatically think of either fixing and flipping or having huge portfolios. The great news is if you can structure a wholesale deal or a seller financing deal, then you are already in a great position for the buy, fix, and hold deal. The key to creating long-term wealth and owning a portfolio is that you make your money when you buy, right? We’ve all heard it before, but it’s just plain true. So if you can structure a good buy price or some really great creative terms, then you’ll be in a really great position to buy, fix, and hold. Pulling It All Together (Beyond Linear Thinking) Now, as I said before, generally your short-term goals and resources will chiefly determine which of the four baskets any given lead will typically end up in – or at least which basket you’ll strongly favor. And especially for newer investors – you can’t learn everything at once and you shouldn’t try. You should start off focusing on the one basket that best fits your situation right now. But at some point, you can and should mature and expand... And my advice is to start considering a number of different ways to present offers, so you can see how many of these "transaction baskets" any given deal might fit into. Then you can choose from multiple options what you want to do with the property to get either a chunk of cash today, long-term cash flow over time or maybe even both. Lemme Hear From You I hope this gave some of you a moment of clarity and that you guys start using this matrix. If you have any questions, comments or something you’d like to add, give us a shout-out below.   "
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9

Use My “MLS Hack” to Find More Deals

Cody Sperber | Deal-Getting
" Hey rock stars! It’s the Cody Sperber back again with another tip that will help you find more profitable real estate investment deals in a way you’ve probably never considered...  I’ve been lucky enough to share with you lots of tips and tricks of the trade through your beloved Mogul lessons and in the amazing 30-Day Quick Start course. Together, we even tackled the topic of Mind Control and Seller Seduction (ooh-la-la) in my last training call. Today, I’m going to share with you the ace up sleeve, my numero uno way to finding profitable deals off the MLS. I call this method my “MLS Hack.” Now I know the word “hack” can make some people squirm uncomfortably in their seats. Naturally, your first thought is “sneaky”! Am I right? Well, I’m here today to change that mindset from sneaky to smart. I’m not – even for a hot second – suggesting that your agent should make offers on bank owned, HUD or even short sale listings... Oh heck to the no! That, my friends, is sneaky, shady and just plain stupid. I am, however, talking about one incredibly smart and savvy way to expose big money deals that other investors have simply overlooked. Did I raise an eyebrow yet? Here’s the deal. Right now, as you’re reading this lesson, there is a deficit in the amount of clever investors out there, and that means good news – no, great news - for you! Great news for you because you’ll be one step ahead after reading this lesson, and you’ll be one of the few elite investors taking advantage of this highly profitable deal-finding method. Customize Your Searches to Find Premium Listings So what is the MLS? We all need a refresher from time to time, so here it is… The MLS is a database of active, pending and sold listings that is forever changing. Your agent – with whom you’ve already established a strong rapport and solid relationship with – should set up a custom search for you of listings in your target demographic and price range, one that will notify you when certain listings change. By changes I mean properties that go from “pending” to “active.” You’ll want to know when properties become high “DOMs,” meaning that have been on the market forever. Look for the following key words and phrases (contained in, not necessary starting with) within the “public remarks” or “Realtor remarks” sections: Fixer upper Repairs Probate Must sell Divorce Motivated Rehab Fire damage Quick sale Death All offers Corporate owned These are just some of the key words to watch for. If you see them, act fast! Be sure your agent sets up your notifications as “immediate.” Timing is everything when it comes to finding profitable deals. You know the saying: You snooze, you lose… And not only do you lose out, but someone else wins big on a deal that should have been yours for the taking. Get Inside the Seller’s Head, Then Make the Offer When you find a deal that looks promising, remember that making an offer and ultimately closing the deal is all about psychology. Your sellers have been experiencing property distress and need someone to alleviate their selling pain (whether they realize it or not). So remind them of their distress. Get your sellers back in close touch with the negative emotions they’ve been experiencing regarding the distressed property. This will only make them more motivated to sell, which will ultimately make you the hero of the day, the cash buyer who can help them out of their stressful situation... for the right price. I’m Listening… So, what do you think about my “MLS Hack” method? Share your thoughts in the comments section below.   "
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9

7 Essentials for Selling Your Properties on Craigslist

Cody Sperber | Investing Strategies > Selling
" Hi there, Moguls. Cody Sperber here. Most of you are familiar with me from previous lessons and training calls, so you know that I am a total guru when it comes to marketing. Well, today I am going to tell you how to market through Craigslist effectively – something every investor should know. I’m bringing this topic up because it came about through a question from a student I mentor. It’s such important information that I decided to dedicate this entire lesson to answering it. The clever student asked: “I always hear that many investors have a lot of success marketing through Craigslist. But, for some reason, I am not getting any response. What’s the secret?!” Wow, great question, right? Well, it just so happens that I’m phenomenal at getting responses on Craigslist. So, you want to know my secrets? Let’s break them down, then… Thing #1: Include the property’s address. I know most of you are thinking, “Duh…” but some people seem to think they might have a better chance of selling themselves if the person contacts them to inquire about the property address. But that’s a mistake. Here’s why… The thing is, most real estate investors do their due diligence before they ever conduct an on-site visit to the property. Your inclusion of the property’s street address allows them to look up the property immediately. NOT including the address actually decreases your odds of response. Thing #2: Pictures sell properties, especially if you are marketing to retail buyers. We all know seeing is believing. And even your fellow real estate investors will want to see at least an exterior shot. A picture can truly be worth a thousand words, especially for potential cash buyers who know exactly what they want. Including at least one good photo will allow investors to glean their most vital insights about your property with a simple glance. If your ad does not include at least one good photo, some investors will simply skip over your marketing efforts without a second thought – even if your property represents exactly what they’re looking for. Thing #3: Stay at the top of the listings. Craigslist allows you to repost an ad every 48 hours, and this alone may be enough to keep you at the top of the list. Obviously, you want your ad read as much as possible and seen before any of the competition. Thing #4: Have a clear “call to action” at the end of your ad. Be sure you instruct the reader on what to do next, using a clear call to action. Prompt your audience to contact you for further deal-related discussions and provide several ways for them to contact you – including your phone number, email address and website (squeeze page). And remember to double check (and triple check) all of your contact information for typos. Thing #5: Favor text over HTML. Ads created with HTML script may look more appealing, but text-only ads work better. So create a paragraph or two of optimized text to describe your property or service.  Don’t clutter the ad with text, but definitely focus your ad around a localized keyword phrase such as: “Searching for Discounted Real Estate in Arizona?” Also, if you are using a text-only ad, you will still want to avoid using “Realtor” words when you’re dealing with investors. Unlike retail buyers, professional investors don’t care if a house is “charming” or “cozy” – and using the phrase “lots of potential” kind of undermines your credibility as a legit investor. When marketing to investors online, use a basic text-only approach to describe: What needs to be fixed. An approximate estimate of the expected rehab costs. An approximate estimate of the property’s after-repair value.  (The term “lots of potential” does not tell an investor anything he actually needs to know. Besides, everybody thinks their property has lots of potential.) Thing # 6:  Be sure to include an accurate price. Put your correct asking price in the appropriate “Price” field, and double check to ensure that it’s right. Too many people will put in $120 instead of $120,000.  Homebuyers of all types purchase properties primarily based on price and they tend to conduct their searches within specifically predefined price ranges.  You want your property to appear in the proper searches. Thing #7: Be sure to include accurate bedroom and bathroom counts. “Number of Bedrooms” is a specific search function within Craigslist (as well as other similar sites) and, again, it helps potential buyers to qualify the house.   And if there’s an easy way to make another bathroom, then include that important information in the text of your ad as well – especially if the house only has one bathroom. Thing #8:  Make your headline stand out. Yes, a bonus habit! Technology has come a long way from the basic “L@@k” that people used five years ago. Nowadays you can use arrows, sunbursts, and even a variety of icons to catch the eye of curious potential buyers. And be sure to use the word “Investors” and/or “Wholesale Deal” in the title, if appropriate.  You are trying to catch the eye of your target market so use words that they identify with. Well, that’s a wrap, folks. I hope this will help some of you guys get killer results from Craigslist marketing and add some real cash to your pocket. And, for even more helpful info, be sure to check out Mogul’s 30-Day Quick Start Training Guide. Talk to Me Who else has some crazy good marketing tips that have worked on Craigslist? We’d love to hear from ya!   "
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9

Here's One of My Best Motivated Seller Marketing Funnels

Cody Sperber | Deal-Getting
" Hi there, Mogul folks! Cody Sperber, here. Today I’m going to give you all the secrets to having a stellar system for marketing through direct mail. We all know that direct mail is a proven marketing process that consistently yields results each time it’s done correctly, so it’s important to really master this marketing strategy. I’ve invested a substantial amount of time, tons of energy and even some hair-pulling frustration developing my near flawless system for direct mail. But today, I am going to share it all with you good folks (just because I’m that awesome). So, y’all ready? Alrighty then, let’s get to it… Keep your Prey in Sight There are some sellers who are a lot more willing to sell you their property and should be targets for us investors. Always keep an eye out for: Absentee Landlords – Obviously, empty homes are a great find for deals. I recommend getting your hands on an updated list of addresses for absentee’s owners through a source such as ListAbility.com. The mailing lists I get from ListAbility.com typically generate leads from owners with a much higher portion of equity and most of them are “free and clear.” Recipients of Inherited Properties – To find the mailing addresses of property owners who recently inherited properties, go to USLeadList.com. Familiarize yourself with both of these helpful websites, and then continue reading here in order to learn my three steps for navigating the obstacle course of direct mail marketing. Once you have gathered your list of potential motivated sellers and their addresses, you will want to continue each of your direct mailing campaigns with the goal of successfully completing three different stages. Stage #1: Communication Now that you have a mailing list of potential motivated sellers, it’s time to identify the owners who are truly interested in selling their properties. You want to “wow” each motivated seller with a totally awesome postcard delivered right to their mailbox. Your goal is to educate motivated sellers with a simple (yet informative) postcard, so that they will: A. Submit their property information to your website Or… B. Call you on the phone for a live discussion about their needs. In my opinion, one of the best (and easiest) ways to process large postcard campaigns is to use Click2Mail.com. This service will only cost you about $0.45 per postcard, which translates into a total cost of approximately $450 for a healthy campaign to 1,000 recipients. Stage # 2: Due Diligence and Analysis Okay, by now your phone should be ringing and your website getting hits. Now it’s time to start “romancing” these leads in order to learn as much as possible about: 1. The property in question And… 2 .The specific circumstances that make its owner “motivated” to sell. I always make sure that the seller benefits in every deal I close, but it’s impossible to help the seller benefit if you don’t know their true motivation and what exactly they need to accomplish. In order to get to the bottom of that, it’s a must that you’re prepared for any scenario by developing a mastery of the right scripts… This is an excellent way to leverage solid market research for maximum advantage in your personal investing business.  Be sure to fully internalize each script, so that it doesn’t come off as insincere or, you’re basically screwed. Keep in mind these goals and use this as a checklist during the conversation: Build rapport and learn about the property – this is critical Explore their motivation for selling Emphasize their need to solve the problem at hand Describe exactly how you can solve the problem at hand Explain how to implement your solutions The successful completion of this checklist phase should typically result in an on-site appointment with each motivated seller who wishes to do business with you. Using this approach generally results with about 3-5 meetings a week. Which leads me to Phase #3… Phase #3 – Negotiating Contracts Although your personal business model may include a variety of different transactional strategies, this face-to-face meeting frequently provides me with a great environment to “seal the deal.”  Upon contracting with motivated seller, I would typically move forward with placing the asset on my own website for property sales while simultaneously distributing emails and text messages to potential cash buyers. At the end of the day (regardless of whether you are a wholesaler, a fix-and-flip investor, a buy-and-hold sort of guy, or any other type of real estate investor) you simply want to maximize your on-site meeting’s potential to get the property under contract in a “win-win” solution for both your motivated seller and yourself. All Phases Set to Go Well, that’s it guys. Follow this nearly flawless direct mail marketing funnel in those 3 phases and you should get loads of wholesaling deals. During the past decade, I generated millions of dollars – literally, and I’m confident that you too will find success with a similar approach. Just work this easy system and don’t be surprised if you quickly find yourself generating 1-4 extra deals per month. Then, when the floodgates open, proceed step-by-step through the three phases. Well I enjoyed talkin’ to you guys! If you would like to learn more from me, check out my other lessons or listen to my elite training call. Or, maybe you’d like check out Mogul’s awesome 30-Day Quick Start Course. Til next time, folks… Spill the Beans So who else out there has an awesome system for direct mail? What has worked for you and what hasn’t? Give us the scoop so we can all learn here in our sharing Mogul community.   "
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5 Lessons From a Wholesale Triple Play (That Got Me $15K in 12 Days)

Cody Sperber | Investing Strategies > Selling
" Hi there, Moguls. Apparently, you guys can’t seem to get enough of Mogul expert, Cody Sperber. We’ve had numerous requests to hear more from him. And we totally get that, Cody’s awesome! So today, Cody is going to share with you his own personal story of how he made $15,000 in only 12 days. Now pay attention, because even if you aren’t new to investing, you will learn something valuable from this story. Most of you are familiar with our Mogul celeb, but if you aren’t, check out Cody’s training call and other terrific lessons. Now then, let’s hear from the great and powerful Cody himself… What Had Happened Was… Hi, guys, Cody here, thanks for having me. I have a personal story I want to share that I think will teach you some valuable lessons. So here goes… It all started with a junky little house in Phoenix. The seller contacted me and explained that he owned a property but lived in another state. He obtained the house because his parents passed away. The seller further explained that he had been paying the taxes (and so on) for a couple of years and that it was now time to sell the property and pay off some debt. I quickly did some research, gave him a call back and asked him his lowest price. He answers with the number of $30,000. I then agreed to physically go check out the property, so he had a neighbor hide the key. I get there and the place is a complete piece of poo. However (as an investor), I continue my walk-through because I know a 4 bedroom/2 bath in downtown Phoenix might be a highly profitable deal. So I call the seller back, and our conversation goes something like this: Me: I’ll give you $10,000 for it (thinking there is no way). Prop. Owner: Great. How fast can you wire the money? Me: Tomorrow. Prop. Owner: It’s a deal. Nice, huh? So, what can we learn from this? Well, let me knock it out for you real quick…. Kapow! #1 You can’t steal in slow motion (this sentence is much more effective if you also pretend like you are talking in slow motion as you say it.). Money loves speed and will not wait around for you to catch up. I acted on this deal IMMEDIATELY. I sent the property owner the paperwork IMMEDIATELY. But then, the dude tells me he has a brother who also shares ownership. So then I have to draw up another contract and get it signed right away by both the brothers. After sending the paperwork, I realize that it looks like I am purchasing the property for $10,000 from each brother (a total of $20,000). So then, I have to send an addendum for each bro to sign (agreeing that the total price between the 2 contracts is $10,000). Okay, so pay attention here… Although the deal hasn’t actually gone through, getting that paperwork done gives me control of the property. With the contracts signed, I gain what’s called “Equitable Rights” and I can put the house back on the market. This legality is worth about $30,000-$40,000 retail. So then I go to open escrow and my Title Manager lets me know I have another problem. There’s no paperwork to prove the brothers own the property. The parents never went through probate correctly. So, what is my point in telling you this? Well… Kapow! #2 When you’re in a hurry, small mistakes can cost you big. Watch out and double check the details. So anyway, how do I fix the problem of no proof of ownership for the Pop bros? I IMMEDIATELY find a Phoenix lawyer through referral. I call him up and ask him the quickest way possible to prove that the parents gave the right of ownership to their sons. The lawyer did an awesome job and guided me to find the parents’ certificates of death through the use of public records… I faxed those documents over to him and he filed the necessary paperwork to make the brothers the legal owners of the property. What is my takeaway here? Well… Kapow! #3 Confucius Says: He who’s willing to solve challenging problem gets paid. After I had proof of ownership for the bros, I put the property back on the market for $25,000 (using mobile marketing). Within 5 minutes, I received a text from another investor taking me up on the offer. I let him know as a wholesaler, I insist on controlling the paperwork and needed $25,000 cash or hard money within 10 business days. So now – wait for it – I have 2 escrows open at the same title company. The first one with the seller (the brothers) and another with the new buyer (the fast-biting investor). Fast-biting investor turned around and sold the property to another investor for $34,900. So now this property has been flipped a total of 3 times with simultaneous closings. And what’s the key learning from this? Well… Kapow! #4 As a wholesaler, it’s best to always be in control of your paperwork on both sides of the transaction (buying and selling) whenever you can. When you’re making $5,000 or less on a wholesale deal, it’s fine (and cheaper) to just assign your contract and get paid your profit as an assignment fee. If you’re making more than $5K, it’s a good practice to set up a double closing (2 back-to-back closings) — or in this case, a triple closing… which keeps your profit in the dark from people in the deal who might otherwise have a hard time swallowing your profit. So, what’s my final point? Kapow! #5 Besides the fact that I have super hero investing powers… It’s also a good rule of thumb that if you ever do a triple-play deal like this, make sure you’re working with an investor-friendly title company who really understands how to handle simultaneous closings on multiple “related” transactions. Make sense? Now go out there and kill it! Holler, Yo Who else out there has discovered they have super hero powers when it comes to investing? What are some of your personal stories of transaction engineering and creative investing? Let’s hear em’!   "
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9

Leveraging “Bird Dogs” for Off-Market Properties

Cody Sperber | Deal-Getting
" Hey Moguls, Cody Sperber here… Dogs may be man’s best friend, but if you’re an investor, wholesaler, rehabber or even a landlord, a bird dog – to be specific – is your new best friend. As a faculty advisor here at Mogul, I’ve given you lots of good info in my previous lessons and a training call about a bunch of different topics. But I keep coming back to a topic that I think you shouldn’t pass up… bird dogging. I’ve introduced the concept of “bird dogging,” and now that you know the bird dog deal, I want to share with you my thoughts on “breeding” these guys. It’s all about acquiring properties and leveraging other people who can score those properties for you. With a little guidance from you, your bird dogs can produce – for you – off-market deals. And that, my friends, is what we call one powerful strategy. Sniffing out Your Dogs Finding the best bird dogs isn’t as hard as you think, and I’ll bet they’ve been right under your nose this whole time. They hang in the same places as you, you just didn’t notice. I mean, how can you look for something you don’t even know exists, right? But now you’ve smelled the coffee. You’re wide awake and wide-eyed and ready to find your bird dogs. So, where do you look? First, know where you want deals and where you want your investors to find deals FOR you. Then, cruise through those neighborhoods and connect with everyone you see. I’m talking about the mailman, the lady walking her dog and the Starbucks barista. And now follow these steps… Leave a Paper Trail: Wherever you go, leave your business cards and flyers. Someone will get them or pass them on eventually. Get creative and remember it’s better to ask for forgiveness than for permission. Leave a trail wherever you go, and keep the communities you’re targeting connected to you... one way or another. Recruit the Rookies: It’s all about fresh meat, kids. Visit your local auction and find the newbies, those who are just getting into the real estate business. Introduce yourself and let them know you’re the guy who can help them break into the business. Give them your card and sell yourself as the one who opens doors. In return, they will want to find deals for you. Be the “Go-to” Guy: Think back to when you were still wet behind the ears and hungry (maybe even starving, literally) for your first big deal. How psyched would you have been if someone had offered you cash to find deals? Maybe you’re one of the lucky few who had the chance to be a bird dog once upon a time. So why not pay it forward? Help other newbies get the experience and cash they need by offering money in exchange for deals. Seminars Are a Sweet Spot: Seminars don’t suck. I know, it’s counterintuitive, but trust me on this one. Seminars always offer great takeaways even if you’re a seasoned investor, and they’re crawling with eager investors and rookies who need experience. So, tap into this resource and score yourself a few bird dogs. Show Them the Money It’s not uncommon for bird dogs to panic about not getting paid, but it’s your job to reassure your dogs that you are an honest professional with integrity. If they bring you a deal, they will get paid. Building their confidence in you and your word is all about follow up. Stay in touch and let them know the status of your deals as they come. Keep the lines of communication open to build solid rapport and enduring trust with your dogs. You can even include a message on your business cards and/or on your website to let bird dogs know that you’re a guy who pays! Tell them, “Yes, I’ll show you the money!” Give your cards to anyone and everyone you meet and keep building that solid reputation. Here’s the bottom line... If you want to make more deals, you need other bird dogs on your team. They will be your eyes and ears, and most importantly, they will save you time, big time. Train them right, and they will be your new best friend. It’s that simple. Pimp my Podio Investors also use Podio as a CRM for their businesses. It’s a great way to systemize the bird dog process of submitting leads. With Podio, you can set up a webpage and input fields that you want your dogs to use. This is a private page for both you and your bird dog, and it will allow you to ask the questions necessary to ensure your dog is doing his or her due diligence. It simplifies and streamlines the communication, and it beats the heck out of random texts, emails and messages that can be nearly impossible to keep up with. Talk to Me Do you have a great team of bird dogs? Tell us about it in the comments section below.   "
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9

How to Get Started "Bird Dogging" Houses

Cody Sperber | Deal-Getting
" It’s Cody Sperber back again with another power-packed lesson. This time, it’s about a great way to get your feet wet in real estate investing. People who are new to real estate investing are somewhat puzzled by the terms “bird dog,” and “bird-dogging.” And I admit, it does sound a little strange... but just think about what a bird dog does for a hunter – a good bird dog will sniff out the game that the hunter is after. Likewise in investing, that bird dog will “sniff out” deals for the wholesaler – saving them time and money. If you are just beginning in this business, it’s good for you to know that working as a bird dog is a great way to learn and earn at the same time. It’s fairly simple to get started and with little risk on your part. Before we jump in, take a quick look at this definition from Investopedia.com: A real estate investing term that refers to someone who spends their time trying to locate properties with substantial investment potential. Usually, the intent is to find properties that are distressed and selling at a discount that can be repaired or remodeled and sold for a sizable profit. Sometimes, however, the term is also used to refer to people who find underpriced properties that would make good income (rental) properties. In this lesson, you’ll learn more about this valuable piece of the real estate investing puzzle. And you’ll know if this is a fit for you. Bird Dog’s Value It’s easy to underestimate the value that the bird dog brings into the equation, but essentially you become the eyes and ears for the wholesaler. You are out there driving the neighborhoods and looking for exactly what your wholesaler needs for his business… You can locate properties that are under the radar. This can be of immense value to the busy wholesaler. You will not be sending the wholesaler a few addresses off the MLS. That’s not what this is all about. Those properties are out there for anyone and everyone to see and are not under the radar. You become valuable because you locate the address that others might not ever see. Once you find a property, you will tell the wholesaler exactly why you feel this might be a good deal for him. In other words, you make the case. If the investor can turn the lead into a deal, you can net a quick $1,000 to $1,500. You’ll have no risk in the deal. You don’t have to negotiate; you don’t have to put the property under contract. As you work through this process of bird dogging, you’re learning what it takes to make a deal work. You’re learning the neighborhoods and the real estate values in those neighborhoods. It’s a great bottom rung of the ladder to get started in the industry. How to Get Started Bird Dogging If all this sounds good so far, what could you do to get started? My suggestion is to begin by visiting a local chapter of the National Real Estate Investors Association (REIA). They have chapters all around the nation and at their monthly meetings, you will find investors and wholesalers. And these are the people who need the services of a bird dog. Not only that, but once you get hooked up with an investor, you may have also found a mentor. Eventually, you may move from being a bird dog to becoming a wholesaler yourself. Start attending the meetings, get to know those who attend and build your network. If you become good at what you do, you can be sure that word will spread. You will soon be in demand. Check out other real estate meetings in your community. Get creative – think about where RE investors might hang out. Don’t forget the internet. You can network with other investors by searching the internet – particularly sites like MeetUp or LinkedIn. Also, try going to a few foreclosure auctions. Watch and learn. Investors will be there – and they would love to have someone like you who could bring deals to them. Watch for the ones who win the bids. Later, you can approach that person and ask what they plan to do with the property. After they answer (they’re either going to flip it or rehab it), then ask if they would be interested in you bringing them similar deals. And if they would be willing to pay a commission for that service. At the auction, you will also learn just what these investors are buying. Those then will be the types of deals you’ll be looking for. Another way to think creatively is to consider where on the internet the investors are hanging out and do a Google reverse search. Here are just a few examples: IBuyHouses(your area).com Cash for Houses.com WeBuyForeclosures.com Google these sites in your own area, and then fill out their contact form, or you can email or call them. After getting in contact with them, you can ask: Where they want to buy What they are willing to pay and Which types of properties they invest in Another great way to find your customers is using postcards. First, you will need a Realtor friend who will go through the MLS for you and pull a report of all the closed sales in a certain neighborhood. Then have them select only the cash buyers. Realize that someone who paid cash for a property in a certain area is quite likely to be looking for more properties in that same area. Now that you have a list of addresses, you create a postcard that says something like:                   “Call me if you are looking for a great deal” Give several contact options on the card such as a phone number, email address or your website. The people you want to serve are nearly always browsing through Craigslist. That makes this site a perfect place for you to post an ad. Look for the Real Estate Services section and use an ad like this: I bird-dog houses for real estate investors. I find houses for investors. I find sweet deals that must be sold. I’ll provide you with the leads that you’re not already finding yourself. All I ask for is a modest referral fee. If you’re interested and you would like me to find under-the-radar deals that no one else knows about – just call or email. Repost your ad about every week or so to keep it current. You’re sure to snag a number of good responses. Summing Up This lesson gives a lot of powerful information, but nothing happens until you take action. If you want to make this work for you, you must be willing to find your prospects, and then find the deals to submit to them. Once you get on a roll, you’ll be learning and earning, and all the while you’re bringing value to the real estate investing community. So go for it! PS: If you enjoyed this awesome lesson (of course you did!) make sure you check out my other great Mogul lessons too and my training call. And while you’re at it, you might want to check out our 30-Day Quick Start Course! Say Words Got anything to say about bird dogs? Share in the comments section below.   "
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