Real Estate Investing by fanzhongqing


									    Brought To You By:
•   Before Real Estate I worked as a IT
    contractor for the U.S. Army Corps of
    Engineers as a network technician. I'm also
    by nature as systems person

•   Licensed Real Estate Agent Since 2005

•   I'm a in the trenches real estate investor. I
    have personally brought and sold over
    5,000,000.00 Dollars worth of real estate and
    have generated over 1,000,000.00 in profits
    in the last two years.

•   I have Spent Over $100,000.00 In Real
    Estate Training Materials and Boot camps

•   I have Made Mistakes
• Tools Needed To Get Started

• Seller Lead Generation Using
  Online and Offline Tactics

• Talking To Sellers

• Making Offers

• Buyer Lead Generation Using
  Online and Offline Tactics

• Talking To Buyers

• Closing The Deals!
•    Phone With Unlimited Long
     Distance (cell Phone) or (Voip
     Phone Like Vonage)

•    Computer or Laptop With Internet
     Access (Wal-mart) or Micro center
     (Under $500)

•    Website (Go daddy or 1 and 1)

•    Fax Machine or (e-fax

• Patience and Endurance

    You Don’t Need an Office, Good
             Credit Or A Lot
              Of Money!!
• Register A Domain Name With
  Go daddy
• Setup Your Web Hosting
• Setup Your Email Auto-
• Outsource If Techie
• Use Free Services- for domain
  and hosting go to
• For Auto Responders- go to
• Find FSBO Websites That
  have homes for sale in your
  area. Gather Multiple e-mail
  address and send a generic
  email with your contact info
• Find More FSBO Websites
  and Gather Phone Numbers
  For Generic VM Blast
• Post In Forums Where Sellers
  Maybe Asking Questions,
  Make Sure Your Website Is In
  Your Signature For Posting
• Post Ads We Buy Houses In
  Free Ad Placement Services
  Like Craig list
• Business Cards- Are A Must
  (Office Depot or Print Yourself)
• Bandit Signs- (fellars 24X18
  Corrugated Plastic) The Bald
  Guy Buys Houses, Any Where
  Any Condition
• Flyers- (Grocery Stores
  Posting, Public Posting Places
• Classified Ads – (How To Sell
  Your Home In 7 Days Call For
  Free Report) or (Behind In
  Payments? Sam Can Fix It For
• My Personal Favorite Direct
  Mail- Design Mail Peace &
  Select List To Purchase
• Select Your Target Market
  (Pre-Foreclosures, Absentee
  Homeowners, Vacant Home
• Purchase List From List
  (,, ,)
• Use USPS Click 2 Mail to
  automate sending letters and
  postcards button style
• Be Sure To Put Answering
  Service Phone Number and
  Website For Sellers On Post
•   First Determine What Is The
    Seller’s Reason For Selling This Is
•   Ask Probing questions (ex- how
    long have you been trying to sell,
    are payments current, how much
    is owed on the property, will you
    sell for what you owe).
•   Once You Determine Their
    Reason For Selling You Must Find
    Out What they need, And Not
    What They Want. Ex (I need 1000
    for moving money, or I need
    money for surgery
•   Get as much financial info about
    the property as possible,
    payments taxes insurance. This is
    critical information as well
•   Formulate offer based on sellers
    answers to your questions
•   Write Offer Based On Sellers
    Needs & Motivation To Sell
•   Submit Multiple Offers i.e. multiple
    ways you can buy their home (All
    cash, owner financing, lease
    option, or option)
•   If Assigning deal or wholesaling
    write offer at 60% of ARV- Repairs
    (You Can Always Renegotiate
•   Insert Escape Clause (subject to
    final inspection, subject to
    partners approval)
•   Give Yourself as much time as
    necessary to close deal minimum
    30 days, write in 60 days or more
    from seller.
•   Make Sure You Have Pics Of The
    Property & Full Description (Go
    the extra mile and Shoot Video Of
•   Send Email Blast To Your List, If
    You Don’t Have A List Rent One.
•   Post Property For Sale On
    Multiple Social Networking Sights
    (Your Tube, Myspace For Video),
    & Also Free Real Estate Listing
    Sites(,,, )
•   Post Property For Sale On Free
    Ad Services Such As Craig list,
    Flat Fee Listing Services, FSBO
•   Post Property For Sale On ebay
    ($cost money$) & Run Online
    Ads On Google
• Your Local REIA Group Is A
  Good Source For Investors
• Run Classified Ads-
  (HandyMan Special Cheap
  Cash 555-5555)
• Put Out Hand Written Bandit
  Signs On and Around Property
  (Investor Special Must Sell
  Call Now!! 555-5555) (Rent To
  Own Move In Today!) (Owner
  Financing Bad Credit Ok!)
• Post Flyers In Around Location
  Of Property
• Round Robin Auctions
•   First Determine What Type Of Buyer
    You Are Dealing With- (Investor Buyer,
    Or Owner Occupant Buyers)
•   If Investor Buyer Ask For Proof Of
    Funds From Hard Money Lender, Or
    Proof Of Cash To Purchase. No
    Conventional Loans When Dealing
    With Investor Buyers For Rehab Deals
•   If Owner Occupant Buyer Ask For Pre-
    Qualification Letter From Lender. If
    They Are Not Preapproved, Get Them
    Prapproved With Your Loan Officer.
    Also You Should Know If Buyer Has
    Cash To Put Down On Property, &
    How Much.
•   Once Buyer Is Determined To Ready
    Willing And Able, Then Sign Contract
    & Collect Earnest Money
•   Submit Contract & Your Buyers
    Lender Info To Closing Attorney
• Research & Find Investor
  Friendly Closing Attorney Or
  Title Company (REIA’s Are A
  Great Resource For Investor
  Friendly Attorneys)
• Submit Executed Contract &
  Your Buyers Lender Contact
  Info To The Closing Attorney
  Or Title Agency
• Make Sure You Keep In
  Communication With The
  Closing Agent To Ensure
  Everything Is On Schedule
Collect Your Check, Be
 Sure To Make A Copy
 Of It and Fax It To Me.
• If you think you can do a
  thing or think you can't do a
  thing, you're right. - Henry

• Anyone who stops learning
  is old, whether at twenty or
  eighty. Anyone who keeps
  learning stays young. The
  greatest thing in life is to
  keep your mind young. -
  Henry Ford
      The Anatomy Of A
  “No Money Down” Rehab Deal
4291 Oakview Drive Forest Park,
        Step 1 Find Buyers
Setup Website To Catch Name, Email
  address, Phone Number, And How
 Much Down Buyer Has To Put Down
 Step 2 Advertise In Local Paper and
 Online For Rent To Own Home. Make
    Sure To Put Website URL In All
Example Ad: 7 Rent 2 Own Homes Bad
 Credit OK, Move In Today Must Have
         Small Downpayment!
      Step 3 Prescreen Leads
Ask Pre-Qualification Questions, and
  Make Sure Buyer Has Option Fee.
Step 4 Send Pre-Qualified Tenant Buyer
      To Look At Properties. (REO
   Foreclosures, or Wholesaler Deals)
Step 5 Put Property Under Contract and
     Purchase Using Hard Money or
  Private Funds. Use Option Fee Buyer
 Gives You Up Front To Pay For Points
   On Hard Money Loan, and Startup
           Cost For Contractor
 The Numbers Behind The No Money Down Deal!

Option Fee Paid By Tenant Buyer =$5,000.00
1st and Last Months Rent Collected =$1,600.00
Purchase Price = $36,000.00
Rehab Estimate = $12,500.00
Points and Fees For Hard Money Loan = $3,000.00
After Repaired Value = $90,000.00
Purchase Price Of Tenant Buyer =$86,000.00
  Initial Cost To Get Into Deal And Projected
Upfront Money From Tenant Buyer = $6,600.00
Points and Fees For Loan = $3,000.00
Cost To Get Contractor Started = $2,000.00
Money Left Over After Initial Cost = $1,600.00
Project Cost Including Purchase Price And Repairs

Repairs $12,500 + Points $3,000 + Purchase $36,000 = $51,500

Purchase Price of Tenant Buyer Minus Upfront Option Fee

= Purchase $86,000 – Option fee $5,000 = $81,000 – our cost of $51,500

Projected Profit Not Including Rents = $29,500.00

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