Word is out…
For the first time – my roadmap for buying and flipping countless foreclosure properties, month after month, even in what some call a ‘recession’ (and in one of the toughest parts of the country).
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***Warning***
This is not a FREE Offer. There is a small investment, but once you see it you’ll think I’m completely nuts for letting you steal this info from me. I’ll be honest…
At first I was leery about putting this together, because I thought I would invite more competition. But when you take a real look at what’s going on, you’ll see that there are plenty of deals are money to go around – for those motivated to cash in.
So, start cashing in NOW and click HERE for the details.
You’ll be very glad you did!
How to Blow Up a Private Money Deal
By · CommentsEvery once in a while I get some ‘driving time’ – just me and the road. Often I listen to books on CD, etc. Zig Ziglar calls this “automobile university.” But sometimes my thoughts drift and land on random things.
Yesterday I had some driving time and, for some reason, a disintegrated private money deal popped in my head. Must have been because I was driving by some landmark or something (damn those psychological triggers…)
Here’s how the whole deal went down:
A guy approaches me at a real estate networking event. Says he wants to invest in real estate. Tells me he used to run his own contracting company and he’s looking to do some flips.
Par for the course so far.
Then, he proceeds to tell me that he has some money he wants to invest in real estate – but he’s leaving for a warm southern state for the winter (snowbirds, we call them here in Michigan) and that he wants to get his money out and working for him soon. Then, he drops the bomb… Read More→
Quick: Somebody Call 9-1-1… Private Money Emergency
By · CommentsHoly smokes I have to get this off my chest before I check myself into the hospital to have a stent put in a rapidly clogging artery….
I wish I had a “bat phone” to all real estate investors where they could tie into this one message:
Please, Please, Please don’t overpay for your private money!
Remember how I always talk about not being ‘needy’ when it comes to private money? You remember the old adage: “bankers only lend money to those that don’t need it?”
Pay close attention ’cause this is important stuff. It could mean the difference between $200k or more per year in income to you.
Here’s what I’m talking about…
Let’s say you have a deal and it’s a good one. You’re locked in on a nice bank-owned property that you can buy for $100k, put $10k rehab into it and sell for $150k. I’m getting excited – after taking commissions and other selling costs into consideration that’s a (conservative) $35k profit for those with no abacus, slide rule, calculator, spreadsheet or little Capuchin monkey on your shoulder. You plan on no more than 60 days from start to finish.
Juicy.
Great, so now you go to your private investor who has already committed funds to you and they like the deal. They can invest the entire $110k + a little “slop money” for holding costs. (You should always have “slop money” for every deal – it’s like the old American Express Card commercials – don’t leave the closing table with out it). Probably $5k in slop money is OK for this deal.
Sweet.
Now we’re really cookin’ with gas. Big payday just around the corner. But, quick snag in the line…
Private investor wants to talk to you.
Seems that you told them they’d be getting a 10% return on their money. You did tell them that. What’s the big deal? Read More→
Yes. It’s time to visit this subject again…setting up private money deals.
One of the best things I can provide for you is a road map through the minefield so you don’t step on any of the ‘Bouncing Betty’s’ that I did.
Here’s the typical process most investors go through with their deals:
- find deal
- scramble around for funding
- hopefully close
Does this sound at all familiar?
I can already hear it: “but Adam, I’m just finding end-buyers and assigning the contract.” That’s great. If you can play the arbitrage game with real estate – more power to you. However, I’ve rarely seen investors make this a consistent and reliable stream of income. A deal here and there, but what you really have with that model is a marketing company not a real estate company, with small profit margins relative to what you get when you buy and sell or buy and hold for cash flow. Read More→
When to Roll Private Money Investors Back In
By · CommentsToday’s topic is a bit more 201 then 101 for subject matter, but good nonetheless for real estate investors of any experience level. You see, there are two basic type of private money investments: deal specific and what I call time period specific. And each has it’s own thorns to avoid.
Some private money you bring in will be tied to a specific deal. You raise money to flip a house, the house sells, and it’s time to pay the investor back. Other deals involve money being invested for a set period of time (whether loans or equity investments). The return is paid on a monthly, quarterly or annual basis.
A lot of times, when you first get started raising money, you’ll tend to go the ‘deal specific’ route. You may find it easier to have someone commit funds for the time period of a deal, which could be a few weeks to a few months or possible (such as with an apartment building) a few years. Read More→
How Much of a Deal Should You Give Up?
By · CommentsMajor burning question for real estate investors: how much of the deal should I give up when I bring private investors in?
First, why is this so important? What’s the big deal?
Well, I see way too many real estate investors who either want to give up too much of their deal and kill their own profits. Listen, if you find a deal, put it together manage it and see it through to a profitable result – YOU DESERVE TO GET PAID! You don’t have to give it all to the money person (even if it’s your first deal).
Remember that you’re in business for one reason and one reason only: to make money. No “if’s” “and’s” or “but’s”.
Now the other side of the coin is not giving up enough of the deal. Being too greedy. This can happen a lot too, and often does with inexperienced investors. You can’t keep everything for yourself, because you’re not shouldering all the risk. There has to be a balance somewhere… Read More→
The Magic Private Money Pill
By · CommentsDo you wake up every day feeling 100% like you want to feel? Do you look 100% the way you want to look, with nothing at all you want to change about yourself?
Did you answer yes to any of these questions?
If so, then you are one of the select few that has been impervious to the weight-loss/wellness industry marketing of the last 1000 years. Kudos to you for your fierce resistance to high pressure selling.
The weight-loss industry is largely predicated on selling supplements, vitamins, herbs and fitness as well as cooking devices designed to be the proverbial ‘magic weight loss pill.’
That’s right – everybody’s looking for the magic pill.
And not just in weight loss… Read More→
When I first started raising money from private investors for my real estate investments, I thought pretty much like everyone else did. Private Money ‘Lenders.’
My pitch to prospective investors was in essence: “will you loan me money secured by real estate?
You’re probably familiar with this pitch.
Maybe you’ve used it.
Perhaps you’ve had success, perhaps not (at least yet).
One day I was reading a biography on Warren Buffett, billionaire investor and Chairman of Berkshire Hathaway. Buffett has generated returns in excess of 10% higher than the market for the past 45 years. When Buffett took control of Berkshire Hathaway in 1965, the share price was $20. Today the share price is $122,000. Hmm… Read More→
How to Play the Right Private Money Offense
By · CommentsLet’s say your job was coaching a professional football team.
You’re next opponent is a division rival. They have a tough quarterback, a good defense and are well coached.
Several days before the game, your assistant get the game films together from yours and your opponents previous games. They also want to schedule meetings with you to sketch out a game plan.
But you blow it off.
You tell them that you’ll just wait until the game and then see what the other team does. Once you see the other team take the field and see a few snaps, you’ll be able to sketch out a game plan then.
Your fellow coaches leave scratching their heads.
Game time comes on Sunday. Your team gets pummeled. It’s a bloodbath.
Would this really happen in a professional football program? Read More→
The Reincarnation of ‘NO Money Down’
By · CommentsThere are a lot of no money down real estate investment strategies out there.
They seem to be never ending.
In fact, I think the modern main stream boom in the real estate information business has it’s genesis with the first no money down books written by Robert Allen back in the early 1980’s. You probably have a lot of the books and courses that I do on this stuff.
One thing that happens as you get into the details of the no money down system is that you realize you’ll need money for something.
Dang it. There’s that money thing again. It’s hard to escape in today’s real estate market, where cash is king.
No money down approaches work well in real estate markets where property values have equity. Where after-repair values exceed underlying mortgages by enough of a margin for a real estate investor to make a profit. The foreclosure boom of recent years has made many of the old approaches to real estate investment of little practical use.
The good news is, you can still do ‘no money down’ deals – at least none of your money down.
You see, there are essentially two different tracks you can take with real estate: Read More→
