Author Archive

The Meeting with the Mighty BPO

Posted on November 11, 2015 by

I have spoken with several Realtors and Investors who say that they don’t like short sales and I always ask them “WHY?” They tell me that the Short Sale Lenders never come back with a value that matches the offer that they have on the property. I always ask them did they go out and meet the real estate agent or the appraiser who was sent from Short Sale Lender to provide the value back to the Lender? Their answer is always “NO.” In fact, many Realtors who list short sales will list high because they are paid on commission thinking that the house should sell at list price. However, they never take into account all the repairs needed or the updates that are required to allow the house to obtain an appraisal at list price. Therefore, their short sale sits for months and ends up going to foreclosure sale. In fact, because they said they didn’t go meet the BPO Agent and just gave them the lockbox code or they have an electronic lock box on the house, the BPO Agent is able to get into the house and only spends about 5 minutes at the house.

As a Real Estate Broker who gets commission on short sales, I would always like to get as much as I can, however, not meeting the BPO Agent can cost me big time and big money. Read More→

I am so excited to tell you about a trend that I am finding on short sales that I am negotiating! You have read in my previous articles and I also mention in my Home Study Course about an interview that went worldwide on 60 Minutes which named Wells Fargo, Chase, Citibank, just to name a few, as Lenders and Banks who were falsifying documentation regarding Notes that Docx Company had destroyed. The interview referenced all of the “Robo Signings” that were occurring. After this was announced to the Public, the Lenders and Banks that were involved in falsifying documentation were fined big time. However, the Lenders and Banks were very smart on helping Homeowners who were taken advantage of. What they did was they looked at 2nd loans on properties that were in default and forgave them. When choosing the loans that were in default, they were able to add all their interest and late fees on top of what was owed, so that when they forgave the debt, they were forgiving a loan that probably would have been put in their collection department and eventually written off anyway. I would recommend that each of you go to www.60minutesovertime.com and type in Robo and find the airing of the show so that you will know all the Lenders and Banks that you should be looking for on 2nd loans. The Lenders and Banks would just file a discharge of lien against the property and as to whether or not they really notified the Homeowners, I am unsure about. The reason I state this is that many Homeowners who aren’t paying their loans on the 2nd mortgage, they probably aren’t paying their loans with the 1st mortgage either. Meaning that the property is probably in foreclosure on most transactions. The Homeowners who are in default have probably moved from their homes and they would ignore all the paperwork that’s coming in their mail and would never even see a notice if their debt was actually forgiven. Read More→

Negotiating is a vital part of your business when it comes to cashing in big on short sales. It is always important to know who the investor is on the loan, and I’m not referring to who is servicing the loan and collecting the Sellers payments. There is an investor behind the scenes. Also, find out the type of loan, ie: private, conventional, FHA, Fannie Mae or Freddie Mac and whether there is private mortgage insurance (PMI) or mortgage insurance (MI) on the loan. Knowing all these facts allow you to negotiate based on the percent of value each one of the Investors and/or Private Mortgage Insurance Companies on the Loan will accept on a short sale.

I found this new information to be very interesting and should not be taken lightly when negotiating on a short sale. Many Sellers are behind on their monthly payments which include principal, interest, taxes and hazard insurance. When the Sellers make their payments, the taxes and insurance monthly payment is placed into an escrow account to pay the taxes and hazard insurance when they become due. When there is not enough money in the Sellers escrow account to pay taxes, the Lender will pay them. However, when there is not enough money in the Sellers escrow account to pay the hazard insurance policy, the Lender still pays it, but it becomes Mortgage Forced Insurance. This is in place only for the protection of the Lender, not the Sellers, and normally costs 2 to 3 times more than normal Hazard Insurance. Read More→

Mailing for Dollars

Posted on August 10, 2015 by

My students always ask me “How many letters do we have to mail in order to get a deal?” Before I answer, I want to state that the #1 reason a Seller sells their house for less is because they are motivated. An unmotivated Seller will not take less for their house, as they are not in a hurry to sell. Let me clarify the situations that make a Seller motivated:

  1. Property is upside down – they owe more than it is worth.
  2. Property taxes have increased and they can’t afford to pay them.
  3. Mortgage interest rate(s) adjusted to a higher payment that they cannot afford.
  4. Job Relocation and they can’t sell the house fast enough.
  5. Divorce or Separation will send individuals into foreclosure because they depended on two incomes.
  6. Job loss or reduction in their income.
  7. Bankruptcy – For most people who are upside down on their bills, it also includes their house payment. It is important to know whether or not your Seller is in bankruptcy or planning on it. No transfer of a property can be done while the Seller is in bankruptcy.
  8. Retirement causes a reduction in income.
  9. Insurance rates have been increased and they can’t afford the insurance.
  10. Illness, Permanent Disability or the Death of Spouse/Family Member causes individuals to get behind on their payments.
  11. Exhausted Landlords – Most of the time, the Landlords had great credit but the Tenants won’t pay and the Landlord may have used up all of their financial reserves.
  12. Economic and Functional Obsolescence The Seller may own a residential property, but it’s located in a commercial district. The floor plan of the house is old and chopped up.
  13. Business or Partnerships failing
  14. Vacant House

Read More→

Calculating costs to purchase, fix and resell a house has always been a downfall for many Investors. At a recent Real Estate Investor Meeting, I heard a great explanation of how people come up with their numbers. You all need to be sure you don’t fudge your numbers and fool yourself into thinking you are going to make a profit. This Article focuses on all the things you must consider when purchasing a property, such as holding costs, cost of the money, and closing costs that you will incur on properties.

When a student contacts me on a property and says “This is a great deal,” I always ask “Why do you think so?” Their response is “because.” Well….”because” is not a good enough answer. This is how I analyze a deal. First, I look for the Sold comps in the same subdivision that have sold in the past 90 days. I will then look at a total of 6 months in that subdivision. I look at square footage, garages, bedrooms, bathrooms and pools. I then look for the Active, Active with Contract and Pendings which all affect the value of my property. I budget accordingly as if I am going to hold it for at least 4 months, which is required in order to sell to a retail buyer with FHA funding. Depending on the price point, about 80% of our buyers have FHA funding. I look at the Active, Active with Contract and Pendings and note what ‘type’ of listing they are. If they are short sales, I really give weight on these sales because it’s very possible they would not be bank-approved and could sell lower or higher than list price. If they are Pending sale which is a straight sale, I can assume that they are close to list price; however, until they sell, I can’t be sure. I will then look on MLS or REIFAX and search a half mile radius to see what other comparables I can find. Based on all the comps and the repairs in which I plan on doing, I will determine if I believe the value of the home will be close to the middle value of the comparables or the high value of the comparables. Read More→

Many Buyers start house shopping without even knowing the price range in which they are qualified. At Sell Fast Realty, our company policy is that the Buyer must be pre-qualified by a Mortgage Lender and has already submitted all their financial documents so their debt to income ratio can direct them to the correct price range of homes. I get a lot of Buyers who have no idea if they can qualify for the price of the home that they want to buy. My Mentor Students and I use my Buyer information sheet to pre-qualify all of our Buyers.

  1. Are they a Homeowner, Investor or Realtor?
  2. Their full name, telephone number and email address.
  3. What are their wants versus needs: how many bedrooms, bathrooms, and then garage/pool etc.
  4. How much money do they have to put down NOW? (Notice the now, because they could be waiting on income tax refund, lawsuit or gift money etc.
  5. How much can they afford monthly? I use this rule of thumb: If a house is selling for $100,000 then their monthly payment will be close to $1,000 principal, interest, taxes, and insurance (PITI). However with lower interest rates, then their payment would be lower).
  6. Are they a CASH or Mortgage Buyer?
  7. If Cash, then what is the price range they can afford? We would request a bank/IRA/investment statement showing this amount.
  8. If they are a Mortgage Buyer, have they been pre-approved and for how much?
  9. How is their credit? Good, Fair or Poor and what is their credit score?
  10. Have they ever filed bankruptcy and when was it discharged (Chapter 7) or dismissed (Chapter 13)?
  11. How soon are they looking to move and why?

Before I give information about the house that I am selling, I will ask these questions. If they are represented by a Realtor then I want to know if they are a CASH, FHA, VA or Conventional Mortgage Buyer. Read More→

There are times when we are going to purchase a short sale and then rehab the property for a higher profit. During the rehab on the property, I take my partners shopping. We go to Home Depot and look at all the items I normally put in my cookie cutter houses and I show them why I have chosen each and every product. Then they get to pick their own products and we discuss the price differences to analyze the affect on our profit. It is really fun shopping for an entire house in Home Depot, but the bottom line is to save money. After our trip to Home Depot, we will head over to the cabinet shop if it is a higher end property and we will pick the cabinets and handles. Then we are off to the granite company with a piece of floor tile and a cabinet door so that we can match our granite throughout the house. I call this program my Mentor Program as I bring everything I have learned and taught through my Real Estate Junkie course to my students. By the time we are done, it’s been a “power-shoppin’ day!”

I always recommend that you have a Pro Account at Home Depot which gives me an automatic 10% off everything and if you are a member of a REIA group, you can save another 2% so … working with me already has saved you the cost of a new kitchen on the rehab or more. Read More→

In the past several months, Wells Fargo has taken on a new policy wherein they want a copy of all lien releases for any outstanding liens on the property PRIOR to submitting the file to the negotiator for review. They are now pulling their own title work and reviewing it to make sure that all liens are being reported to them. This may cause a huge battle because often the Second Lender will not approve the lien release until they have the written approval from the First.

I have always said that Wells Fargo is one of the strictest Banks that requires a crazy amount of paperwork for them to move forward. We recently had a file wherein the second mortgage, even though they had a second mortgage on the property, took the Sellers to court on the Note and received a Final Judgment against them. The seller was even garnished. However, in Florida, if you are head of household, you can stop the garnishments if you do not agree with the garnishment, so that ended. We have been fighting with a Negotiator that cannot put the second mortgage payoff and the Final Judgment Payoff together as one.

The Bank Negotiator keeps asking for another payoff from Citi Financial which is both the second mortgage and the Final Judgment Plaintiff. She just can’t get it thru her head! We have gone over her head multiple times to a supervisor and she refuses to submit our file. I requested a copy of her title work so we could see what she is seeing, but she just keeps sending us the recorded page number of the Judgment. We have contacted Citi Financial and they said yes this payoff includes the mortgage and the Final Judgment. We have asked Citi Financial to state that in their letter but they complain that this is a standard letter and it will not be tailored to the request of the First Mortgage Company. Read More→

Let me summarize with a question before I start writing…. How many hours in your current job or situation will it take for you to make $65,000? For most, this is more than an annual income, so I know your answer would be 2,000 hours or more. I didn’t count the hours on this deal, and we haven’t closed yet, but I know it will be double digit hours, not in the thousands. If someone has told you that short sales don’t work, they either didn’t have the right partner, weren’t properly trained/educated, or… they are lying to you because they want all of the short sales to themselves and don’t want you as competition.

My office exploded in December! I’m thinking “time off, relax, jingle bells” but I had a short sale deal that had other plans for me. I ended up at the City of Margate fighting two liens that were filed against my short sale deal, in addition to a $2,300+ water lien. Lien #1 was for a Dirty Pool and Lien #2 was because seller did “not” file a Vacant Home Affidavit, Lien #3 was the water. The total due, without the Water Lien, was over $40,000. The Lien notices were attached to the front door, which was covered like a jungle, on April 7, 2014. I represented the Seller as a Listing Agent and the Buyer as a Selling Agent. I got a Power of Attorney from the Seller so I could appear before the City of Margate and negotiate the liens. Whatever was agreed upon at that hearing would be set in stone and could not be re-negotiated. Before we could even get the City to stop assessing daily fees, the dirty pool had to be cleaned. We didn’t know there was a Water Lien of $2,300+, as the lien that was recorded was only for $500.00 but the City charges a maintenance and garbage fee monthly of $70.00 no matter if the water is on or off. Not Good! I needed water in order to drain the uncovered pool (no screen) and refill it. Read More→

Experienced Negotiators, you and I, know that December is time to help the banks clear their books. Since many of the Bank Negotiators get bonuses, they want to see as many short sales close as possible in December.

Recently, we fought on several deals wherein the Banks kept asking for higher counter offers. Holding off until the beginning of December can put more money into your pocket. In Florida, the Banks pay all property taxes at the end of November, just before the due date, so they don’t get penalized. After that date, when you make offers, the taxes are paid and the Bank’s net has increased versus what they would have received in the month of November when taxes were not yet paid. Recently, we were fighting with a lender over $2,000 on the purchase price because the bank wanted a specific net. You might say ‘that is not much,’ but once the taxes were paid, the bank’s net was higher. Remember, that once the taxes are paid, they are no longer on the HUD as a deduction to the banks net, so by default the bank’s net increases. Did the bank still pay them either way? Absolutely, but that doesn’t affect us. The investor’s offer no longer needed to be increased to reach the bank’s net and that’s all we needed. The investor’s offer was now right in line with their value to receive short sale approval. Read More→

In January of 2014, Florida passed a law that allowed the Banks to push their foreclosures through the court system faster than the normal 879 days that it used to take. I have seen foreclosures go through the court as quickly as 4 to 5 months because the Sellers, even though they do not have an attorney, do not take the time to file an “Answer” when they are served with the Summons and Complaint. An Answer, in which they themselves can file, simply states that they would like this matter set for trial. This letter includes the caption of the court pleading and their address and telephone number. They would have to file this Answer with the Court along with a Proof of Service that they mailed a copy to the Attorney representing the Plaintiff (Bank). Once an Answer is filed, the Court must slow down the Foreclosure proceedings to allow enough time for the proper hearings that are entitled to the Sellers.

I used to advise my students to wait to send marketing letters to Sellers who were in Foreclosure for at least 6 months. Times have changed! I am now recommending, due to this new law, that the marketing starts as soon as the Notice of Lis Pendens (a document letting the public know that the Sellers are in Foreclosure) is served to the Seller. Many Sellers are running scared. They are moving out before they even have time to fight the fight. I say “Don’t Run and Don’t Let the Bank Win” and do a short sale. Even if you are doing a Loan Modification and/or Short Sale, the Bank is still pushing through the Courts to get a foreclosure hearing date set. However, a short sale takes control of the Sellers destiny. Read More→

Every day the Banks are making minor and/or major changes on how they do short sales. What was once an easy short sale system, now varies depending upon each lender. Many lenders will want the Sellers to use their own in-house short sale package, even though my detailed generic package pushes the deals forward. Sellers really don’t have a true concept of how much debt they have when it comes to paying all of their debts. Many of them will not even include a debt on their financial statement to the lender, just because they are choosing not to pay it. In my short sale system, I have created a detailed short sale package with forms that are used to help my Sellers make sure that everything is included and maximize their chances in the consideration of the short sale.

In January of 2014, Florida allowed a law to be passed that the Short Sale Lender may receive a Deficiency Judgment at the time of the Foreclosure while still having the asset (property) in their portfolio and not even selling it yet. Before this law was passed, the Short Sale Lenders could foreclose on the property and then they have a choice whether or not to either forgive the debt or pursue the Sellers. If they forgive the debt, they still issue a 1099 (Forgiveness of Debt Form) which means the Sellers would have to pay taxes on the amount that the bank has forgiven. Or the Lender could go after the Sellers again by filing a new lawsuit for a Deficiency Judgment on the balance that is owed AFTER the Lender sells the property and releases it from their portfolio.. Many Short Sale Lenders are amending their complaints to request this immediate deficiency judgment. Sellers are blind to the new changes and they are burying their heads in the sand, thinking they are living in the house for free and then letting the property go to foreclosure with no repercussions. Read More→

I recently had a transaction wherein the Homeowner was attempting to use a Stated Income Loan Program which requires 1) that the property be purchased in a Limited Liability Company and 2) a 35% to 40% down payment. I was very concerned, yet excited about the Loan, due to the fact that these lenders are very picky and it was a new loan product for Investors. The mortgage broker that I was working with had “NO doubt” that this Buyer would be entitled to this loan, considering that he was giving such a large down payment.

Well … that is when it all started. After the appraisal was done, survey completed and the loan was being submitted to this Lender in St. Petersburg, Florida, all we were waiting for was the hazard insurance policy. However, the lender decided to use a program called CoreLogic which tracks if the Buyers currently have or previously had any outstanding mortgages and guess what? Yep, they did, and I was furious! This mortgage should have shown up on his credit report and when title work was pulled for a name search for the Buyer, we should have been notified that he owns another home. However, there was a HUGE lack of communication with the mortgage broker and the Buyer. The mortgage broker did not speak the native language of the Buyer. So … when the mortgage broker asked the Buyer “do you have any outstanding mortgages on any homes,” the Buyer replied “no.” However, they did say that the old mortgage they had on their personal house was “short-saled” and since the Bank wasn’t reporting it on their credit, the mortgage broker never mentioned it to anyone! This was a big mistake and costing the Sellers, the students and I, lots of time, money and effort to get this deal to happen. Read More→

All Investors and Realtors need to know the guidelines of their Title Company’s requirements for buying and flipping short sales. Each Title Company may have one or two underwriters which tell them how to conduct their business. I am a firm believer in having all my i’s dotted and my t’s crossed with full disclosure. Whenever I want to use the end buyer’s money to fund the first transaction “A to B” closing, I have already sent all my forms to the Title Company to send to their underwriter to review. This way, I will not have any problems when it is time to close. Some Title Companies will require additional documentation and others approve my forms and are ready to close, saving you points and interest on hard money.

Recently though, I had a short sale closing set on Friday with a Foreclosure Auction set on the following Tuesday, leaving 3 days after the closing to get them the money (which must be certified funds), and have them stop the Foreclosure Auction Sale. Obviously, when purchasing short sales, we don’t want to procrastinate it to the last minute due to the new guidelines with the Florida statutes about the timeline for postponing Foreclosure Auctions. These guidelines of making sure that the Plaintiff’s Counsel and/or the Defendant’s counsel has filed a Motion to Cancel Sale at least 10 to 15 days prior to the actual auction make it difficult to get Fannie Mae and Freddie Mac to act due to the fact they follow that guideline. Meaning, if you have passed the window of the 10-15 days and it’s down to only 8 days before the sale date, they will say you missed it and it’s too late to request postponement. However, there are times when “stuff” happens and you close within that 10-15 day timeline, not giving the Plaintiff’s Counsel enough time to get a Motion to Cancel heard before the original Judge. Our court system has turned into a mill! Even if both parties agree, Plaintiff and Defendant, they are having a hearing before the original Judge. When I worked for attorneys, all you had to do was prepare a Stipulation and Order of Postponement and/or Cancellation, both parties would have agreed and the Judge would sign it without a hearing. I believe the Plaintiff’s attorney just likes to charge the bank more money for representation and this would be too easy for all parties. The Foreclosure Auction could be held on line or before a different Judge that does not know the Seller’s situation, nor do they care. Many times, if the Sellers wait to file their Motion to Cancel in Pro Per (acting as their own counsel), the Foreclosure Auction Judge will deny it versus the Judge who has heard their case all along. Read More→

I received several emails after my article last month regarding “Are Investors Flipping over the Gray Line.” The questions were about Land Trusts and transferring the beneficial interest at the time of closing. So … I am writing to all of those individuals who might be ‘Flipping Over the Gray Line’ but not really knowing it. Or maybe you are being coached by mentors and/or partners who are advising you that this is alright to do. If that is the case, then I want you to fully realize who will be liable for the wrong doing.

First off, the Short Sale Approval Letter and the Short Sale Arm’s Length Affidavit will advise you how you can conduct the closing regarding several factors: Closing Date, Approved Short Sale Amount, Approved Commission and Closing Costs, Approved Buyer Name, and any Deed Restrictions such as how long the new Buyer must hold the property before selling the property or if you are aware of any other agreements to sell this property to someone else at a higher price. All of Bank of America’s short sale letters and/or the Short Sale Arm’s Length Affidavit state that the Buyer cannot resell the property for 30 days. However, sometimes the Title Company, due to the wording in the Short Sale Approval Letter and/or the Short Sale Arm’s Length Affidavit, is not instructed to place this restriction directly on the Deed. This is where the Investor/Buyer thinks they have found a loop hole! The Investor/Buyer will close with Title Company A and then the same day or shortly after will turn around and close with Title Company B who has no knowledge of the Buyer’s requirement to hold the property because they did not do the first closing. Read More→

Recently I got a short sale approved on a 4 bedroom, 1 bath for $43,800.00 and my partners and I were going to flip the property to another Investor. However, after reading the required verbiage that the loan servicer required to be written into the Deed, it made it impossible to sell the property on the same day that we purchased it. The servicer was Bank of America and the Seller was going through the HAFA program. Bank of America always places a 30 day hold on the property. In addition, item #8 on their Approval Letter states “Another buyer cannot be substituted without prior written approval of Bank of America. The buyer may not alter how he will take title. For example, a buyer may not enter into a contract to purchase a property and then amend the contract to purchase the property as Trustee for a trust or any other legal entity.” Based on that verbiage, you cannot close in the name on the approval letter and then immediately place it into a Land Trust, even though I hear people state that the Land Trust is for Asset Planning. I totally disagree with the fact that a Land Trust is used for Asset Planning, as it only covers who the beneficiaries are, and the Trustee is responsible for signing all the documents. In addition, this means you must not sell the property to anyone until 31 days have expired. There are ways around the 31 day hold; however, I only teach that Super Secret at my Foreclosures Gone Wild Boot Camp. Check my website for the next event.

On the HAFA Short Sale Affidavit, which all parties sign including the Realtor, it states “(b) There are no agreements, understandings, contractors or offers relating to the current sale or subsequent sale of the Property that have not been disclosed.” What this means is that you cannot have a signed contract with another Buyer to purchase the property from you until after the sale of the property. Read More→

I partner with my students on short sale deals and my Mentor students on all types of deals. As a mentor, my students obviously learn the importance of negotiating as low as possible in order for us to get a good deal on a property. But even after the student has negotiated as low as they can go with the Seller, I will walk through the house and tell the Seller that the price that my partner offered is too high. I finish up by negotiating the property even lower. Why? Because my students are just looking at the front end of the deal and I’m looking at all the expenses to purchase the property, private or hard money interest and points, and the rehab costs for materials and labor. In addition, I’m looking at the cost of insurance, taxes, and the utilities plus the hold time until we sell it, the cost of another Realtor to sell it should the student not conduct open houses/auctions to sell the property themselves.

It’s really hard for my students to see the entire back end of a deal when they are just focusing on the front end. When we go to Home Depot, we must be aware of which features sell a home. Kitchens and bathrooms sell BIG, so we spend extra money in those areas. We get nicer cabinets, granite countertops, medium grade faucets and lights that all match the hardware throughout. Recently I have negotiated and closed several short sales and straight purchases that need rehab. I always stay with a neutral wall color (Behr Toasted Cashew – a light beige), flat white ceilings, and semi-gloss white around the trim and doors throughout. The walls and ceilings are a knock down texture throughout for consistency. Read More→

If you have too many emails in your inbox you can change your set up and create direct paths to instruct your emails to go directly into your subfolders without you even having to look at them and then next to the folder you created on the left there will be a number, for example: Seller leads (1), which means you have 1 unread email in the Seller lead subfolder.

Statistics show that 75% of workers feel colleagues overuse “reply to all.” I can attest to this. I always ask my students to email only one person in my office versus emailing the admin, Kristen, and myself. That is a waste of everyone’s time, as the email was only supposed to go to one person, not three. 15% of workers admit that they themselves overuse “reply to all.”

70% of workers often receive email with vague subject lines. I always recommend if you are emailing someone about a particular property that you put the address in the subject line. This way, in the future, you can search your emails more efficiently, if you don’t file them away. I often use the subject line as a quick message, so it would read: “Need copy of Seller info sheet for Smith.” Then there would be nothing in the body of the email. However, I was informed by one of my students, his phone does not allow him to see all of the subject line, so I quit doing that as much. Read More→

Time is the most important part of our life that we can never get back. When I started as an Investor back in 1998, I worked a full time job as a legal secretary, was married with 2 children ages 2 and 6, a step-son age 20, and worked part time in my real estate career. Time Management was very important to me as I needed to be able to earn 1 year’s salary before I was able to quit my job and work a full time real estate career. Just like most new investors, we attended numerous boot camps to sharpen our skills and take that leap of faith into the real estate arena. I chose this article about time management because I do a One Day Safari with my individual students by coming to their own home to evaluate how they are spending or wasting their time and how can I help them improve their production in addition to reviewing multiple other marketing and business systems to move them forward.

As I write this article, I need you to “act as if” I am sitting in your home, evaluating your production and asking you, ARE YOU WASTING TIME? The most important part of your business is to make sure that you have a designated workplace separate from all of the noise and interruptions of your life. Well? I tried having my office upstairs so I could keep track of my children when I quit full time…that didn’t work. I had a private phone line and a business line set up at my home. When the business line would ring, I used to grab the phone no matter what time of the day it was. I was hungry for a deal! After trying this for a couple of months, I decided it didn’t work because as soon as I would get on the telephone the kids would always want something and I literally would have to run into the basement or my bedroom and lock the door. However, the kids still followed, knocking on the door and wanting something! Even though I was working full time as an investor, I had to put my kids in day care and/or work around their schedule (i.e. naps, bedtime). I decided it was best that I would set up my office in the basement. I got tired of running to the office phone for deals, so I decided to work normal business hours 9 to 5 p.m. However, if you hunger for deals, you may want to answer the phone every time it rings, day or night. Read More→

Investors get into the real estate business to become ‘Millionaires,’ however, many listen to courses that contain outdated information where the systems are no longer working. They follow the wrong advice which seriously stalls a successful kick start. This industry is changing monthly; be sure your trainings are coming from a Mentor who is out doing deals on a consistent basis. I stand firm on my philosophy of “Don’t quit your job until you have at least one year salary in the bank.” Why, you ask? Because it puts unnecessary pressure on many marriages, families and individuals when they quit their job and the deals are not consistently coming in yet. I not only teach Short Sales, I also teach how to buy, hold, flip, subject to’s, lease option techniques, etc., which allow you, the Investors, to truly understand all of your available exit strategies.

In order for anyone to become a Millionaire with consistent and dependable cash flow, they must hold properties. In my Real Estate Junkie Course and my Mentor Program, I always recommend that you flip 2 houses and then hold 1 house. Below is an example of a short sale deal where the Investor ended up holding the property. I negotiated the short sale with my student and also partnered with her. My exit strategy was for her to hold the property, lease it out and my student will never have to lift a finger or do any maintenance to the house for a 15 year term. I explain this exit strategy from A-Z in my Mentor Program. One important criterion for holding a house is that it has 3 bedrooms, a garage, a basement (if applicable) and a swimming pool is optional. Read More→