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Be a Real Matchmaker!

Now that the push for real estate matchmaking software has ended again for now… There is more to being a real estate matchmaker other than getting a buyer and seller and putting them together. I

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Be a Real Matchmaker!

209 Days of Silence Ended by 209 Gurus&#

Well it’s been 209 days since my last post this one will be short the next one won’t be nor will it be in 209 more days! I guarantee it won’t even be another 209 hours before the nex

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209 Days of Silence Ended by 209 Gurus…

Howdy It’s Been A Minute!

So it has been awhile, but every time I had a post I wanted to write the flavor of the month would come out with an email that all of his large list of friends would send you also that was close to th

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Howdy It’s Been A Minute!

A Picture is Worth a Thousand Questions&

I know several people have asked me about doing deals in other markets what’s my best tip? This is a good tip for doing deals in your own  market also though… There is an old saying that

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A Picture is Worth a Thousand Questions…?!?

Yeah Buddy!

So I’m just gonna say something real quick like… Be careful what you ask for you just might get it is a powerful old ass saying… I’m gonna have start digitally bitch slapping p

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Yeah Buddy!

Really Again? F**k Them Too

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by on July 20, 2010 at 2:33 am

I have decided to ignore any tweet with the word list in it, because I’m tired of all of these ratings people who base all of their criteria off of not a  damn thing. The real estate business isn’t rocket science is there plenty to write about? Yes yes there is if you are in the business for real doing the correct things everyday you should have an infinite supply of stories to tell as well as giving good advice.

Between twitter, facebook, talking to aspiring real estate investors and other blogs you will see and/ or hear the seeds for failure every 4.3 seconds. I almost did this, I didn’t have time for that, I don’t like this, I don’t know how to…, I’m too tired, I was sick…, my dog had bad gas, Zillow says its worth…, I was gonna but didn’t, I missed that goal… again, I am creating…These are all  the very reasons people are failing except at getting e-cred and blogosphere love. You know how much all of those statements put in your pocket… $0.00 every second for the rest of your life.  Why am I writing a blog post at 2:00 am central standard time, because I have been busy doing things that create income. Like making offers, doing marketing campaigns, placing ads and talking to buyers. You see lead conversion is the most important thing in wholesaling, real estate investing as a whole, or any business for that matter. All of you people who bought that one thing last week are in for  a rude awakening whether you are doing it yourself or paid extra for them to do it all for you… If you are going to make a dime one from those leads you have to convert them!

Here is your free big money tip if you made it to the end… Do the things that make money and forget the things that are for your leisure. Building relationships with people is a great thing to do with your time. They don’t have to be the most authentic relationships with a Realtor or other investor, but don’t completely fake it either. You don’t have to become fifteen Realtor kids’ god-parent by any means, but be real. Build a team or dare I even say a network of people you can work with or at the very least kick some ideas back and forth. I have a contact page if you want to see if we can get along. Unlike some people I don’t play “favorites” with my lists, or blow smoke up anybody’s ass so we can be “pals.”

The next post will be the second in the Ninja Marketing series. I actually will even throw in a case study post from the latest deal in the 50 in 52 challenge. To get back to what I do at a high level regardless of what some people “see” (I’m tired of the borderline “bitching” and electronic ass chewing posts myself… almost)

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Baby’s First Steps For Ninja Marketing 101

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by on June 28, 2010 at 11:44 am

One of the most overlooked however important aspects of building a successful real estate investing business is organization. Now I realize the title of the article mentions marketing and that’s what this is about so just keep reading and chill it’s not polite to interrupt! Everyone hopefully knows that they need leads to even have a business, and unless you  live in some yet to be discovered by science dimension where they have lead clouds that produce lead showers you are going to have to market for those buyer and seller leads to come in.

Here is where the organizational skills come in to play; when you decide to start marketing and you are doing more than one campaign whether it’s direct mail, online marketing campaigns, or dropping parachuting naked midgets stamped with your contact information into people’s front yards you are going to need a way to track how each method is  performing response rate wise.

Why would you want to know where the calls are coming from? So that you aren’t wasting your marketing dollars or time on something that isn’t working! How do I know where the calls are coming from? By A. Having multiple phone numbers (no that’s not expensive either!) B. Having a phone system that has the ability to set up multiple extensions. C. By putting your exes number on the midgets, or I suppose by having friends/family help take calls.

Where do you get these numbers? Skype, google voice (just opened to the public so you don’t need an invite any more), evoice has 800#’s you can try for 6 months or 1000 minutes for free (and is really cheap but solid after that), Adtracker (which is pricey), and then I am sure an internet search would turn up hundreds more options.

It’s imperative that you have some alternative numbers before you even acquire your first or next list that you intend to experiment with or post your next online ad. Also you should set up a spread sheet to track your response rate which you figure on direct mail by dividing the number of different phone callers you received by the number of the pieces of mail that you sent out. The effectiveness of your marketing increases exponentially by knowing exactly what is working and how well. Doing things that are unproductive are just a waste of time and money that will also cripple your wholesaling or real estate investing business.

P.S. Shae Bynes of Good Faith Investing always refers to my Ninja Marketing techniques so she can have half credit for the title haha.

P.P.S. I have added threaded comments to help promote actual discussion and it does look kinda lame to respond to four people in one message.

P.P.P.S If Justin McClelland’s and this aren’t top 20 REI Blog’s you aren’t paying close enough attention no bullshit. See I had made it all the way through without cussing and then I seen the list more fucked up than the MMA pound for pound list after Fedor’s loss Saturday.

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Big Dogs Start As Pups!

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by on June 7, 2010 at 3:05 pm

Every big dog at one point in time or another started as a pup! Name anybody doing big things at anything let alone real estate they have one thing in common. They paid their dues! People just starting out see all of these guys and gals doing huge numbers and think if they are doing it I can to exactly the same way they are. It’s true you can become a top producer in any field with some effort! You absolutely have to do the little things first there is no way around it. It’s perfectly fine that you have people you look up to, but you can’t repeat can not just pick up doing the same things the big producers are!

One thing I see a lot of people trying to do is automation and outsourcing which is okay except for the fact you can’t automate a business you don’t have yet that’s the bottom line point blank period! If you truly want to have the grand life not working for someone else you need to put in the work needed to get there. That means putting out your own signs, calling every lead you get whether you think it’s good or bad, answer your own phone calls or at the very least return them, and remember exactly where you are in the pecking order.

No matter what stage of the game you are at realize that time is of the essence in a multitude of ways. You can’t wait at any point in business in the beginning it’s important to be putting in time to learn your chosen profession inside and out. The best way to learn is by talking to sellers, buyers, other investors, and mentors. As you move forwards you still have to be conscious of time you can’t take your sweet time on deals, because one of the hungry young pups who gets it will step in and snatch it up.

You don’t want to be the baby in the game shooting themselves in the foot by trying to play big shot and just throwing away leads for chump change or the guy who used to be the top real estate investor that got passed by being comfortable let alone lazy!

That doesn’t mean that you can’t help people along the way or wholesalers have to hate each other it’s about establishing and protecting your bottom line. Which will actually get bigger if you learn to work with other wholesalers I kid you not on that one. You are in real estate investing to make money as an entrepreneur and stop being just an employee for someone else! Realize though it’s gotta be done the right way.

2 Quick tips before I sign off when doing ads for craigslist or whatever make 2 versions one in English and one in Spanish! Just use google translate if you don’t know it.

Tip 2 learn about other forms of investing or at least meet other investors who are doing different things so you can do something with every lead you get.

PS be sure to check out the new fan page!

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Curiosity Killed the Cat… B.S.!

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by on May 5, 2010 at 5:03 pm

They say curiosity killed the cat, I’m calling bulls*#t! If curiosity killed the cat then how did he get rich off of the story or how did he tell anyone about it? So my curiosity and love for impossible challenges has gotten the best of me. I decided to attempt something that when you read it will seem entirely impossible yet at the same time doable after some thought. I am challenging myself to close a deal in all 50 states within 52 weeks from next Monday. Some will think I am crazy , some will think it’s borderline genius and the rest will call it a combination of both. My answer is I don’t know which is correct, but it’s never boring to be me for very long!

I will use every single tip and trick in the book and write so many notes for new ones that the book will need a second volume! What does this have to do with all of you? I only live in one state thus to ensure this has a true chance of success I will need to do a lot of joint venture (jv) deals with other wholesalers/ real estate investors ( or a paid learning experience for newbies). So feel free to contact me if you can’t wait for the actual details to be released.

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WTF Happened? Lots of Craigslist Tips

3
by on April 27, 2010 at 9:32 pm

I can answer that title question I have no clue where the follow up post went. So I will try something else and just write what I always do until I find that post or specific set of notes again. So here we go with a little craigslist primer. Since a lot of people I talk to aren’t really using it to their advantage properly. I view it as a tool for free leads! Of all types not just seller leads. You can find people actively buying, and or other wholesalers to network with. All without placing an ad of your own for the lazy members of the viewing audience.

First thing when I have a craigslist cruising session I have a pen, paper, a calculator, and cell phone right next to me. I also have my property and buyer databases open so as I can track everything about my current or potential deals. (Tip: track everything! Original Asking price, Offer price, Accepted price, dates, comp averages, addresses, contact info, deals you didn’t get or couldn’t sell, just everything! For the simple fact that it puts numbers in front of your face to show you what is or isn’t working.)

Second when I open it up for whichever city or area I am looking in I actually open up the real estate for sale section and open up the F.S.B.O.’s (for sale by owner) in another tab on my browser by right clicking on a label to the right that says owner. In the original tab I click the broker label and have them completely separated. Which is good for those of you looking for a Realtor or dozen to contact to work your short sales or R.E.O. (real estate owned a.k.a bank owned) deals. From right here you should decide what it is you are looking for lead wise. If you want a Realtor or REO’s go to the broker page. Buyers (for the most part), other wholesalers and private sellers go the the owner page.

Some people think the only way to find buyers on CL is by searching the for rent and cold calling all of them or searching the for sale section and finding people with multiple listings. These are good ways to find them yes, but far from the only way. If you look through posts titles I almost guarantee within the first 200 posts you will see an ad title something along the lines of: House Wanted $0-50,000. This is usually an actual cash buyer who rehabs houses either to rent or resell a few at a time or lives in it and fixes it up to flip. (Time saving tip: use the search feature and just put in a $ symbol to search for cash buyers quicker)

Now of course you need property to sell to these buyers. The way I do it is if it looks interesting I bookmark it. (Organizational tip: If you are doing more than one area set up individual folders for that area when you favorite sites put it in the respective city ) Then if there is a number then I write it down  and whatever property info there is to call them  later. If not then I send them an email immediately now if an actual email addy is available I will take it down also to follow up later. Now if you have questions if a house is even a possibility open up your favorite quick comp site and have it ready to go for when you need it.

When just getting started I do recommend talking to other wholesalers and even those seemingly useless people known as Realtors … Why? Because if you are going it alone completely you will end up broke. Seriously though think about it if you have to split a few deals because you have no list or replies to your properties posted  half of a closed deal is worth a lot more than a piece of paper with an expired closing date on it! Some of them will even tell you the best areas to contract properties in.

As for the announcement its now a riddle… If you look with a moderate amount of effort and use common sense you will figure out what this means. An opportunity I extend to any of you will soon be going away in present form and coming back in a toned down version… First person to figure it out and email me the answer wins a prize.

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How Do I Negotiate? Its a Numbers Game

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by on April 7, 2010 at 7:27 pm

I’ve been asked that questions a few times since my last “real” post. This was actually gonna be a video post, but the sound was just too bad to use. The picture was great ,but then again why wouldn’t it be it is video of me after all… Okay enough of the self love lets just get started.

First things first though make sure you know how much the property is really worth before you even start negotiating. Why? Because you actually want to make money right? You don’t go into anything without the necessary preparation or you will come out of it defeated! It’s one of the few reasons I hated actually being on organized sports teams growing up, but that is an entirely different story. You have to have a plan in place to succeed bottom line. When I am doing my due diligence I look at things from a slightly different perspective than a lot of people do. I get 4 numbers ready in my head.

Number 1 is the mark where they just finish the phone conversation speaking to the click if you don’t know what that is give me a call and find out. (620-212-4910) That’s my real number btw.

Number 2 is if I know an investor specifically who wants this property (meaning its their area and price range blah blah blah) I will take it at that price with them being the first option.

Number 3 is a good price to market and get a close out of. (optimal #)

Number 4 is exactly the perfect price to get the house at for a quick close to pretty much any investor buying at this moment.

Now with these numbers in place I make the phone call to the lead which came from whatever marketing tool that hopefully they have already told you what it is. (So you know what is really working) I’m not real big on a whole lot of chit chat with people I don’t know. So I just say a few pleasantries and jump right in with qualifying or feeling out process.

I get them to throw out the first number every time. Why? Because you never want to throw out the first number if you do you have lost what little leverage you have to negotiate! Once you throw out a number you are pretty much stuck the only direction you can go is up. Some people are reading this going well yeah duh that’s common sense, but not everyone realizes that if your number is higher than what they even want you are screwing yourself without lubrication! If you have to throw out the first pitch though be better than a President on opening day at least. Shoot them a number that’s below your perfect number. If you want to get to the #3 area with contract price you have to leave yourself room especially if they aren’t far from #1.

Don’t waste your time holding firm for very long to the perfect number, but don’t budge too much from  your optimal wholesale number! Why? Because the is wholesale real estate investing! Not putting a bunch of houses under contract like a blind jackass real estate investing! If you want to sell houses for full price get a real estate license. Because it is definitely gonna take you longer than 30 days at the wrong price!

Everything you find out repair wise has to come off of your offer price and you have to use as a reason to justify your offer to the  seller. They won’t like it, but then again why would they? It’s a business you can’t please everyone a hundred percent on everything every time or you will be the one left with nothing.

Anyways the point is that if they can’t get into your optimal/perfect zone, or you don’t have the investor in love with the area don’t  waste any more of your time with the property. What is the reasoning behind this thinking? It’s the good old magic trick of once you have a final number in front of their face you don’t have to follow up with them twice a month for a year to get them to sell. They will come right back to you when the house doesn’t sell at their bad number!

I value you my time highly so I don’t spend more than 20 minutes at a time negotiating with anybody neither buyer or seller. If you talk for 2 hours and they aren’t moving anywhere near the right price you’ve wasted time that you could have used to call 5 other people! Wholesaling, buy and hold, or whatever your fancy may be not only in real estate investing, but life your time should be important to you!

Wholesaling real estate is a numbers game not just the money, but time also! The least amount of time you waste the more money you can make. Hence the saying “time is money” hasn’t been around for a hundred years because its just so darn catchy it’s because its so damn true!

The 3 keys to good negotiating are:

1. Don’t go over your numbers

2. Don’t waste your time (know when to give up for the time being)

3. Do your homework!/ Have a plan.

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Are You Negotiating?

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by on March 30, 2010 at 8:35 am

Okay your eyes aren’t playing tricks on you I am really blogging 2 days in a row, and this one is even about real estate! I have been busy with lots of different things including talking to some of you via email, phone, twitter, google chat, and Facebook. In the hospital, making movies, et cetera (yeah that’s how you actually spell etc.) and on  down the line! Yet I haven’t forgotten any of you or wholesaling real estate during any of all this craziness!

In talking to so many of you it has once again been brought to my attention that for some reason there are investors out there that don’t realize that it’s pretty much mandatory to negotiate. I’m not saying that everyone should take my approach and negotiate everything business related, but you could learn a few things from some tips I use day-to-day. (Personally I use alibaba.com to negotiate prices on everything I use from pens and pencils to the paper for my printer.)

Tip # 1- Every seller you talk to is essentially after the most money they can get.

As a real estate investor when you go to “buy” a house the seller wants as much as they think they can get! Whether you are a wholesaler or whatever this is a fact. They want the most cash out of this asset that they are selling to you. It’s not rocket science! If they realize it’s run down they will say hey I’m “giving it at this price” sometimes that may be the case, but even still negotiate! It doesn’t matter if you only end up squeezing a mere thousand dollars off the asking price that’s where the difference in your bottom line comes from. If you do one house a month which isn’t big time by any means a grand more on your profit each deal is 120 thousand extra in your pocket over the next ten years!

Tip #2- Make sure you pay attention to others negotiations!

Here is something I have noticed throughout my dealings with buyers the one’s that don’t negotiate from your asking price any are usually the one’s who don’t end up buying! I don’t care if you have an in demand “perfectly priced” property and getting your asking price isn’t a problem they shouldn’t just accept your price as the gospel. If this keeps happening and you actually do close them like this regularly then your asking price is too low! It’s not greedy for me to say this the important part of entrepreneurship is having a grasp of the concept that you making money is just as important as anything else! The “freedom” of working for yourself doesn’t mean anything if you can’t afford to pay your bills.

Tip #3- The fear of speaking up will kill your business!

I know anyone who tries to do even part-time investing is actually trying to bring as many leads as they can in. The way I look at is don’t waste any of your marketing efforts! If a seller contacts you and their price is just outrageous try to do a quick negotiation anyways! You have them on the phone or are emailing them anyways why not just “Speak Up” and ask for something more favorable! Even if you hear no at least you heard something! This is actually a scientifically based thing here. For every rebuttal someone hears there will be a reaction and in more cases than you realize that reaction will be the seller caving in quickly to get some actual favorable terms out there!

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