Real Estate Investing For Beginners - Starter Guide

Real Estate Investing For Beginners - Starter Guide

Real Estate Investing for beginners, we go into the three stepping stones of investing, creative financing methods and how to get your first check.

The Mother Course: Real Estate Investing
Everything You Need to Know About
Making Your First Deal (and More…a Whole Lot More)

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My Real Estate Dojo

Real Estate Investing For Beginners  Starter Guide

Mike De 

Hey gang this is Mike with MyRealEstate DOJO, today we’re going to talk about real estate investing for beginners.  Let me pull the curtain back and get started because I don’t want to waste your time, I value your time. Let me get my little handy pen, and we’ll dive in right now.

 

Today’s lesson is going to be divided in following categories;

  • I’m going to talk about the three stepping stones to any real estate investing.
  • Then I’m going to talk about uncommon funding methods,creative funding methods so if you don’t have money, if you don’t have good credit, how can you find money to fund your deals.
  • The next thing is start to finish process to get any kind of real estate deal. So again, I’m going to talk about the start to finish process of any real estate deal.

 

It doesn’t matter what area you’re in, what market you’re in. if you’re in the top  market, you’re in the down market, the processes of getting a deal. Then I’m going to talk about, where you go to advertise, to find these motivated sellers so you can get these strategies that we’re going to talk about.

Now, real estate is very complex.  If you’re watching me on Facebook or YouTube or you go to REI investment clubs, you realize that there are many strategies, there are many different ways and they make it very complicated. So, at the Real Estate Dojo and Mr. Investor, what I’ve done is take a very complex idea and narrow it down into three stepping stones. And the reason why I call it three stepping stones is you have to go to step number one before you can get to step number two, before you get to step number three. And if you fail to do them in these specific steps, you’re just going to spend a lot of time learning, a lot of time spending money, and you’re not going to make any money. I take a very complex idea and I simplified into three stepping stones. What are the three stepping stones? But before I go into these, I want to let you know that I can’t spell worth a dime, I’m a refugee to America, you know, my mom is illiterate, even though I have a college degree, when we go to the restaurant, I have to read the menu for her. But the point of the story is, you have to start where you stand, and be your dreams. Because it’s not about what you lack, it’s not about your advantages; it’s about your will persistence. And I can’t spell or read. I finished college, I own seven-figure business for 14 years, I own two other companies, I own real estate and it all “Starts Where You Stand.” So why am I trying to make fun of myself and become vulnerable? Because you have lacks too, and people are going to tell you, you can’t do something, okay. Whatever it is, and you can’t listen to that, if you are looking at your situation with your lacks only, then you can never be your dreams. But if you want to be your dreams, you have to accept your lacks; you got to give love to it. And it is okay if people will laugh at it, I don’t give a f*ck, because I’ve met people that I’ve hired that have PhDs’ and I pay them the check. I’ve met people that are smarter than me that wrote books, and they didn’t get it on Amazon’s top sellers list. So, your advantages don’t define you guys, your lacks don’t define you, your will persistence will define who you are and it can be your dreams. Let’s get back to the story, so the story is I can’t spell, but you know, I can’t even speak but I’m doing it to help you guys make money. I do know how to make money, I’m the alchemist, I come here as a refugee, start from a hundred bucks, never borrowed any money from a credit card company, never borrowed money from a stinky banker or hard money.

The Three Stepping Stones

The First step is called Lead Generation. The second step is called Conversion. In this step, you’re going to be worrying about how to talk to a seller, how to fill up the contract, learn different strategies out there like short sale, Subject To’s, Assignments, Double Assignments, Wholesaling, Land-Lording, how to give estimates, how to give offers, how to set up your corporation, set up your logos.

And the stepping stone number three is your Exit Strategy. In the exit strategy, you’re learning, you’re deciding what are you going to do. For example, I’m a Buy and Hold guy, when I buy a deal, my strategy is I’m just going to have this cash cow and generating me money for generations to generations so I can give it to my kids. If your strategy is Wholesaling, then you’ll apply a different type of action plan. But it doesn’t matter; I simplified it to three stepping stones, doesn’t matter what part of real estate you want to be in; Fix and Flips, Wholesaling, Land lording, doesn’t matter, it all comes to this:  Lead Generation, Conversion and Exit Strategy.

This is very important because when you go to REI clubs and when you listen to these other people that are training, they’re always talking about this, and and that, but they make it very confusing and they make it so you have to learn about step number two and step number three, which is absolutely false. If you learn about step number two and step number three, you’ll be a very highly educated investor but you’re not going to be a successful investor. Because what’s going to determine your success is this,... When I started real estate investor in 2007, fourth quarter, I started not because my mom was an investor, my daddy was an investor, I knew cousins, no. My dad sold ice cream in the ice cream truck and my mom, I told you she’s a refugee she comes here, illiterate. I got into real estate investing because I realized 2007 fourth quarter, the market had crashed, stock market has gone down, Bank of America stocks had gone down. Everybody was running this way, and I was going to get into stocks, but after I did my due diligence, I realized I can’t control stocks, I can’t buy it in discounts, so many other things which I’m not going to go into here, so I decided to get into real estate investing business. Because real estate was crashing in my area, just like probably everywhere in America, and everybody is running away from the fire, I decided to go towards the fire and I got into real estate investing and I didn’t know anything. I did have a successful moving company that I started with a hundred bucks, that was making seven figures, and I had some cash. But I didn’t know exit strategies, I didn’t know Subject To’s, Wraparound Mortgages, wholesaling, fix and flips, assignments, any of that stuff. But I did know lead generation, and by having lead generation I had a little amount of success, because these things came in second or third in this step process for having success. And when I tell you that if you go to REI clubs, or you listen to some other people that are teaching, you do need step number two and step number three, because you have to go from here to there to make the money. However, if you learn step 3, before step 1, you’ll just be an educated investor, you are not making any money. If you learn all the exit strategies like what should you do, you retail it or should you wholesale it, should you do this, should you do that, should you owner finance, should you create a new note. Again, you’ll be a highly educated investor, but you are not going to have the money. To get the money, the very first step is to do lead generation, I commonly get asked – Mike, what do I do or what do I say when the phone starts ringing? My very first thing is – you’re thinking too far ahead, you’re having fear because as Buddha said; you’re not in the present time, all you got to focus right now my friend is to get the phone to ring. If you haven’t got the phone to ring and you’re thinking about what’s going to happen down the line, then you are not in the present time, you are not in here now. And as Buddha said, you are having fear because you project out, you’re going to have fear and worry okay, you’re not going to have success, Start Where You Stand means you Start Where You Stand. I can’t spell, but if I waited to become the best speller, I would never write a book and put it on Amazon, I would never get up here and help you guys to reach your dreams. I can’t speak, I got an F in speech class, I was so scared, and I’m still scared. But hey, I want to change your life, and my mission, it’s what gets me up it’s not about the money, it’s about changing lives. Everybody reaches out to me on Facebook, YouTube, Instagram; I read that, right, people that email me. Okay, I may not respond but I read every single one of these.

So what am I trying to say with the three steps?  Last time I try to drill it in and I’m repeating, because it is so crucial. It doesn’t matter if you don’t know all these. If you cannot generate leads, then you’re going to be out of business. So the very first thing in this business is learn how to generate leads, learn how to get your phone to ring, before you setup your logo, before you set-up your t-shirt, your website, your corporations, learn about fix and flips, give estimates, closing cost, all of that. Because if you could never generate leads; and if you can’t ever take step number one, and have success with it, there is no reason to go to step number two or three. All you’re going to do is waste your time, make some other people rich and waste your time and then say – hey, this business doesn’t work. No, it works, you just got it confused either the step number three, the step number two and you really didn’t do step number one. You’re not good at step number one. And why not start with step number one if you’re not good at it, you don’t like to do marketing, you don’t like to talk to people, then this business is not for you and get to know it right now, before you spend any time and energy, start with number one guys.

Creative Financing/Uncommon Ways To Fund Your Deal

Now, let’s talk about the next step which is funding. Uncommon funding or Creative Financing  uncommon way to fund. Now, many of us, we start out as new investors; we may not have money, or we may have just a couple grand, a couple of hundred bucks or just 10, 20 grand, it depends on the beginners. Some of us may even have a couple of hundred thousand dollars and we’re just new to the Real Estate Investing Business or even millions of dollars just new to business, we have successful businesses, but it doesn’t matter if you have a job and you’ve never been an entrepreneur or if you’re doing this for the very first time, or if you have businesses or you have money, it doesn’t matter. There are some uncommon funding methods also known as Creative Financing that I’m going to talk about, how you can get the money to invest in real estate. Now this is not your average place where they talk about hard money, lending or private money, again I talk about uncommon/creative. Not to get into debt, because I believe that you have everything inside you, and you don’t need a stinky banker to give you a loan to make your dreams. The creator put you here, with the dream already in you, this is already in you, and all you have to do is just take the sunshine and work your ass off and harvest that, that’s it, and use your imagination and creativity.

One way to use your imagination and creativity strategy, uncommon ways to fund your deals is to have the owner of the house fund it. The strategy is actually called Subject To. I didn’t name this, but it is named on the HUD one form, HUD is a government agency that regulates real estate. On the HUD-1 there’s a section specifically for a Subject To, and what it says is you’re buying it “Subject To” the existing mortgage. What does that mean?  buy it subject to an existing mortgage? It means that you met a seller, and he was motivated, maybe they’re going through a divorce, which a lot of times happens, considering America has 50% divorce rate. And they couldn’t pay for the house anymore; because they used both their incomes to pay for it, and the wife left and the husband can’t deal with the situation anymore and they’re just willing to give it to you. And all you do is, step into the seller’s shoes, and take over their payments. You don’t go assume it, you don’t have to qualify for the loan, you don’t have to give them your social security, and you don’t have to put a down payment down, no money down strategy basically. You’re just stepping into the seller’s shoes and taking over their payments. Now, I know you’re thinking this is not going to work, trust me, because I thought the same exact thing. Now, it’s okay to be logical and say that this is not going to work, but the difference between some of you guys and me is that I thought the same thing, but I’ll take action because I think to myself, this is a great opportunity if this works. Let me take action to see if what this guy says is true or not. And I took action and I got my first deal and that was back in 2008. I started at 2007 fourth quarter and in 2 or 3 months boom I started getting deals.  The point I’m trying to make is, it’s okay to think if this strategy doesn’t work, but please take action to verify it. That’s all I’m saying, don’t take my word to verify it, but I bought 90% of all the deals that with this strategy called Subject To.

I do cash deals like other guys talk about. But there’s not that many deals out there that are 60 cents on the dollar, not in this Market. Not every seller wants to sell their house for pennies on the dollar.  The majority of the sellers are in debt, and they have all these loans, first, lien, second, mortgage, they have home equity loan. They don’t have equity like that. That’s the majority of people so it’s hard to find those deals. Plus, I don’t want to get in debt, and if this seller already has a mortgage on their home under their social security, and he or she’s willing to let me take over the payments, it’s a no-brainer!  And if I’m making money out of this property, let’s say that this guy’s house that I took over, going through a divorce, just to make it a simple, his payments were a thousand dollars a month which includes P.I.T.I, which includes principal tax interest and insurance; a thousand dollars a month, and I turn around and I put it on Craigslist and I rent it out for $1,300 a month, I’m getting $300 positive cash flow. Did I have to get a loan? No, I just took over the seller’s payment. Now, I talked about this significantly in my Mother Course, which we’ll talk about later guys, it has 171 chapters, we talk about Owner Financing, Subject To, so much, all video training, but I’m not going to get to it right now.

So, one uncommon way to get deals is called the Subject To.

Owner Financing

What happens if this seller doesn’t have a loan on the house, they own it free and clear? Then you could do a strategy called owner financing; where you just give him a note, create a note. If you don’t know what a note is, get my Mother Course we go into it all. Simply put; if you target motivated sellers, there are all of them out there, kinds of motivated sellers, it doesn’t matter if the market is good like we had in 2007 or it doesn’t matter if the market is shitty like we had in 2008, 2009, 2010, it doesn’t matter, there’s always motivated sellers. Now, when the market is lower, there’s definitely more motivated sellers, because the newspaper is saying it’s bad, the TV is saying it’s bad, there’s going to be more because they’re mentally motivated, not financially motivated. They see the news – my house has gone down, better sell it before I lose more money, that type of scenario.

Subject-To Case Study

Subject to is a very powerful way to buy real estate that most of people don’t talk about. When I heard about it, I didn’t believe it, I was just like you. But the only difference is I took action, during the real estate crash, I had nothing to lose and everything to gain. Now I can just take over people’s houses, I made a lot of money. One house that I took over is; I’ll give you the address, it’s 3054 Rambling Drive, Dallas, Texas 75228. It’s been quite some months ago that I sold this property, and I sold the property and cashed out  $76,000 in equity, or 67, one of those numbers. Since the time I owned it, which was in the crash, I rented that property out, and when I added the cash flow that I got them and rented the property out, the amount of years that I owned it, plus the equity cash out that I got was a hundred thousand dollars plus. I don’t have the paperwork in front, anybody should go to my blog and you’ll see that information there; myrealestatedojo.com, look at the blog.

Now, this deal 3054 Rambling, I bought it subject to and I bought it from a firefighter in Dallas, a good guy that had fell off the horse and they couldn’t continue making their payments and they were behind just three months, and I ended up only paying for the three months that were behind which was roughly about 2,000, 2,500 let’s say it’s $3,000 with my closing cost. So I took that property, I didn’t have to give the seller any money, I didn’t have to do all this crazy stuff, I didn’t have to get a loan, to put a down payment, I didn’t have do any of that. All I did is put it under contract, close on the deal and start making payments and then pay the rears that were behind the loan which is about $3,000 with my closing. Five to seven years later; I don’t know the numbers right now. I made cash-out equity, what that means is I sold it to another investor in the MLS and they give me, $76,000 or $67,000 when I cashed out. Imagine getting a check for $67,000, imagine getting a check for $76,000 where you only put $3,000, only $3,000!

You didn’t have to get a loan, you didn’t have to go to a hard money lender, no private money lender, not asking your mama, your daddy, not getting partners, none of that crap, and then you make sixty seven thousand dollars of equity or seventy six and then you make out the cash flow, you add it up and you make A Hundred Thousand Dollars. All you did was take over the guy’s payment.

Let’s talk about motivation, because this is a very good example. 3054 Rambling Drive, I highly recommend, you pull it up guys, you’ll see two things; I buy from motivated sellers, and when I sold this property, I was motivated because I had some family problems. I let this property go for a hundred thousand, actually hundred twenty thousand dollars below market, because I was motivated, I just wanted to get out. So you guys that say, no one is going to sell you a property motivation, bullsh*t!  I just showed you an example where I bought properties from motivated people like this firefighter but then I became motivated too, and I put enough meat on the table, hundred twenty, hundred thirty grand for the next investor, for them to close down and buy my deal as fast as possible and do whatever dance I wanted to tell them; pay for my closing, buy house As-Is, I’m wasn’t going to do any repairs, everything – you pay for my title policy, everything.  I give them a discount, but they have exactly dance to my tune, if they didn’t want it, I had other people lined up for, because there was that much equity in there. Why did I let it go? Because I was motivated!  I was emotionally motivated, I wasn’t financially motivated.

Let’s recap, I bought a property Subject To, for Three Thousand dollars from a motivated seller that was a firefighter and his lovely wife and two kids and their dogs that I held unto for them until they found  a place, created win-win situation. Fast forward a few years later, I sold the property six, seven years later; I sold the property because I was motivated. I made a hundred thousand dollars plus on it, I left enough meat on the table for another investor make another hundred twenty, hundred thirty thousand (I don’t remember the exact number on it), himself. And everything works on motivation. I bought from a motivated; I sold because I was motivated. And whenever you’re motivated, people make money and it’s okay with me because I made my money. And the home seller is okay because all they were looking for is somebody to save their credit, which I did. Their house was going to foreclosure, they were three months behind, I saved their credit, I stopped the foreclosure, I start making payments on their home, I increased their credit when I sold it. I improved their credit when I cashed it out. And I used a strategy called, uncommon strategy that I call subject to, subject to its existing mortgage. Now, is it legal? I just told you on a HUD-1, Google it, HUD-1 line 203: Existing loan(s) taken subject to. Now, this is pretty easy strategy, it’s what I call exponential lever guys. Now, if you want to know about this strategy, I highly recommend it, I do the majority of my deals this way, you need to get the Mother Course.

The Mother Course, I have over a hundred plus hours of advanced training which is two weeks plus, seven days a week, you watch it. Advanced training, such as subject to, owner financing,  so many different things that I’m not going to cover in here, but as you can see, this a great way to find your deals.

Wholesaling

Let’s talk about another strategy to fund your deals, called wholesaling. Wholesaling is a very powerful way if you’re new to real estate, if you’re a beginner or even advanced, because it makes you so much instant cash. It can be a great way to build capital, or if you’re already a medium-advanced or pro, it’s a great way to generate money to do your fix and flips, to buy and hold, it is a great way for beginners to get their feet wet, learn the whole aspect about the business from how to give estimates, how to fix the repairs, where to find a title company, how to do the closing, how to fill out the contract, how to talk to a seller, how to look at a house, everything under the moon and stars. That’s what wholesaling is going to do. And the great thing with wholesaling is; one, you don’t need any experience. Two, you don’t need to have any cash, zero. Three, you don’t need to have any credit, now; you can have credit, now you can have cash, and you can have experience. But the great thing is the entry level is so great and anyone can do it.

Now, what is wholesaling? Wholesaling is, you’ve done it guys, and I’m sure. Some of you guys done it, some of you guys bought something, and then put it on Craigslist and sold it for a little bit more, right? If you ever done that before or you bought something for a friend, from a friend, like you bought his video game and you sold it to somebody else, and you bought a couch and sold it, you bought a motorcycle and you sold it, you bought a car for a lower price and you sold it. If you’ve done any of that, where you were the middle man, you bought it for low and you sold it high, then you’ve done wholesaling. The only difference is, we’re not wholesaling cell phones or cars or motorcycles that makes this kind of money 250 buck or a thousand. We’re a wholesaling real estate that makes thousands of dollars, so you’re stepping your game up.

What is wholesaling? Wholesaling is marketing.  You’re becoming a master marketer. You’re marketing to people, that are motivated, just like I was. I put my house on the MLS but if one of you guys have reached out to me, offered me $50,000 down, I probably would have done wholesaling, I probably would have done owner financing. But I didn’t want to wait for that, so I just put it on the MLS, I put it $120,000 below I just got a lot of people and offers coming in, but wholesaling, what you do is you market to motivated sellers like myself, in the last situation with the Rambling house or anyone else; like people going through a divorce, people that are going to foreclosure, etc. and you market to them. Then you go out there, you talk to them, negotiate and put the deal under contract, which doesn’t cost any money, maybe a dollar; and then you take your contract and you sell it to somebody else. Just like what you did in Craigslist with the car or cell phones or furniture that you have done before. The only difference is it’s not a small item where you just buy and put it in your pocket. In this case, you didn’t even have to buy. When you’re on Craigslist you buy a car for five grand, you got to come with your five grand and then turn around and sell it for seven grand, and you make your two grand. In wholesaling, you don’t have to buy the house, that’s a powerful thing. All you do is to put it under a contract, that’s it guys, once you put it under contract, it’s like you have an interest into it; it’s called equitable interest to the property and then you turn around and sell your positioning or that contract to an end buyer, whoever that might be, if it that’s a cash buyer, if that’s a fix and flip, if that’s a retail buyer that can’t get a loan, it doesn’t matter, it depends on your exit strategy.

So in wholesaling, what you do is you’re marketing, leads comes in, you put the property under  contract and then you sell your positioning to someone else, and that someone else comes and performs or does what the contract says. And what is the contract say? I’m going to buy the house for X many dollars, and that person has to come up with money, not you. That person has to get a loan, not you; if they’d choose to, it depends on what the exit strategy is. So wholesaling is so powerful because; entry-level into the business is very low, it teaches you a lot and it generates you big sums of money. And every one of you guys, I’m very confident has whole sold one way or another. You bought something and then you sold it and made a profit from it, that’s wholesaling. And you’re not doing just real estate, you don’t need any money, you don’t need any credit, it’s what I call pushing paper. You go get the paper and then you push the paper, you go get the paper and then push the paper, and you never have to bring money or credit. You never have to buy the house, the deed of that property never comes to your name, which is the title never comes into your name guys, very, very powerful.

Master Lease

Let’s talk about another uncommon way to fund it. Now, this is a great way because it’s great for new people. If you have no money, no credit, nothing, I’d like to do an idea that’s called master lease. And with a master lease, you don’t even have to fund the deal. So what you do is, you market to landlords and say; I’m going to rent your property and then you turn around and you sub-lease it to whoever, like you put it on Airbnb and lease it for a hundred dollars a day or your rent, let’s say to your landlord’s a thousand bucks and you put it on Craigslist and you lease it for 1,300 dollars a month, or you put in furniture in there, and lease it for $50, $1,600 a month. Does that make sense?  A master lease is great because you don’t even have to fund the deal, the landlord is funding the deal, the master lease is great because if the AC breaks, you don’t have to fix it, the master lease is great because you don’t have to get a loan, you don’t have to make a promise to the seller, you got to make them monthly payments because there’s two ways to structure it; if the property is vacant, you don’t have to make payments to the seller, the seller will make the payments because he owns it, not you. Or you could have it performing, where if the property is vacant, you would have to pay for it. But again, in The Mother Course, I go into it so deep guys, there’s so much more stuff to get cover, that I’m not going to be able to cover everything. In The Mother Course, I talked about nine different ways to find your deals, I talked about different strategies from whole selling, land lording, Airbnb investing, fix and flips, owner financing, how to create notes, options, lease options and so forth.

Let’s go talk about the next idea, the next idea is – and it’s very crucial you guys who are starting new, you understand that the real estate business is not a one way pony, it’s not like selling pizza, it’s not like they order and they come and pick it up, no it’s nothing like that. It’s a very complex transaction process. So I want to show you from, this is you through getting a deal. How does that look like, because there’s a process into this that you have to know. If you don’t know this process or blueprint, you will think that you are getting lost or the thing is not going your way. Again, if you don’t know the blueprint, for example if you don’t know how to make a cake, are you supposed to put the ingredients into the oven and turn on and then mix it up later, or should you mix it first and put it in the refrigerator and then put it in the oven, so if you don’t know the pattern, then you are going to be confused. You don’t know the processes so, it’s very important that you pay attention because I’m giving it to you. As if you had paid me $25,000 like my coaching students had. I don’t want the money; I just want to feel good, know that I’ve made impact in your life.

The Process

First in the process is you’ve got to find these motivated sellers. Remember on the three stepping stones, the very first step was lead gen. For you to go from here to a deal the very first step is lead gen, to find the sellers, because with this type of strategy you’re not targeting people with realtors, you’re not targeting people that are trying to sell with a real estate agent, you’re not targeting people that want top dollars, maybe you give someone top dollars but they have to be motivated. So simply put, you’re only targeting a certain type of audience and that’s it. You don’t care about the other 90%, and if there’s this much audience of people selling their home, the only one you’re caring about are these. These are what I call a pawn shop audience, these are the ones that are called motivated, they have to sell, they don’t just want to sell, they’re not just going to put their house on the market and seem you know what did he did for it, they must sell like I was motivated, that Rambling house, I must sell. I put it hundred ten, hundred twenty, hundred thirty below market because I wanted to get out, as soon as possible, I didn’t want to deal with it,, I wanted to move out of the state . So that’s who you have to find, and the great thing is whenever you download The Mother Course, I have my other course included in there that I have given to you as a bonus for free, which is a top seller on Amazon and even on my own website, it’s called The 39 No Fluff Real Estate Marketing Bootcamp. I talked about 39 ways to find motivated sellers, where to go look, and I also talked about free ways to find motivated sellers. Now, I’m really big on free, I don’t want you to spend your money, I don’t want me to spend my money. I like to use house money. I want to find a deal and make money and then the money I make, use it to do more marketing.  In The Mother Course I give you my 39 No Fluff Real Estate Marketing BootCamp. In there we talk about 39 ways to get deals plus bonus marketing assets in there that will help you. I give you free flyers, free auto email responders, give you text messaging that you can send to find sellers, to get the buyer. We have online ads, offline ads for you to find buyers, to find sellers, etc.

Market To Find Motivated Sellers

The very first thing you have to do is you must find the motivated sellers. The second thing you need to do is to filter or qualify them. Why filter them?  This is where most people go wrong guys, most people run out there and look at houses, go out there and take pictures, figuring out what the comps are, figuring out what the tax roll is, go out there and figure out how much repairs. I don’t do anything of that!  That’s why I get deals, because I do everything over the phone or even if you want to go ride to their home, you can do that, but it’s very important that you filter them out, so you have a lot of leads  comes in and you have to filter them out, and only work with the cream.

Filter/Qualify Your Leads

The cream or the people that are motivated, what I call the pawnshop customers, they’re willing to give you the deal. If you don’t do filtering, then you are basically driving around and you’re not going to get deals, wasting a lot of time, wasting a lot of money and you’re talking to bunch of people they’re not going to go with a deep discount offer, they’re not going to go to a subject to, they’re not going to go to any kind of deal that you want because they want top dollars, they want realtor and that’s not what you do, that’s not what you do. Please pay attention, you’re not a realtor, you cannot pay top dollars. Those people, you pass it to your realtor friend and they’ll give you some kind of bonus or some kind of hook up because you’re scratching their back. So those people you don’t want to deal with. So what do I use for my filtering system? Guys, what I use is my Ninja Seller Phone Script, I use everyone to filter those out. All my students use it, I use it for my business, and my virtual assistants use it. We all use this to filter out all the leads, we find sellers, there’s going to be so many of them right, and what we want to do with this filtering system is take these people and then sit down just a couple and all the other ones, doesn’t mean we trash them, we’re going to do follow up with them until they become motivated more; they filter both. These are the only ones we’re going to give offers and talk to guys. So there’s a lot of people here okay, all right, there’s a lot of people during the marketing phase. And what we want to do is just get a couple of these people, and all we’re looking for is the motivated ones. We’re not looking for unmotivated ones, and they’re going to seem like a lot more unmotivated. That’s true; bingo, bingo, and bingo a lot of unmotivated, but they will be motivated if you follow what I teach you on my Mother Course with the follow up system, because time will make them motivated guys.

Give Offers

So now that you filter them out; found the motivated ones, the motivated sellers. Now, what needs to happen, what needs to happen now is you got to give offers, and you got to start having more strategies. You’ve to give offers, if you’re not giving offers, you’re not going to get deals. I don’t care how many people you talk to, I don’t care how many people you get motivated, separate them like oil from water but if you don’t try to scoop that oil up then you got to scoop it out and give the offers guys. And that’s where many people are scared that they don’t give the offers.

The second thing is you’ve got to have a lot of different tools in your toolbox because not all motivated sellers are going to want one cookie cutter. You got to have different cookie cutter, some people like the square, some people like the stars,some people like the cow, so you have to have different cookie cutters for them, different cookies for them to pick. And what are those cookies? Well they’re the tools in your toolbox. For example; like subject to, we talked about master lease that we talked about, there’s options, there’s so many other tools out there guys, and I go into it in my Mother Course, so I don’t have time to go there into here but I’m just talking about the lead processing system because it’s so crucial to getting a deal. If you don’t understand this, you’re not going to get a deal.

Secure the Deal- Exit Strategy

After you give the offer and you have different strategies, the very next thing you got to do is you’re going to secure the deal, alright; you’re going to secure the deal. Now, some of you guys are thinking hey, it’s over now man, I’m getting paid; no, please understand that you’re not going to get paid right now at all, zero. All you have done is you market it, you found the seller, and now you secured the seller, you put it into a platter like a box right, and now you’re going to sell your box, you can sell your phone, your car, like whatever the item is. Now, you’ve got to start this journey all over again, now where were going for now is the deal to the money, so now we’re going from the deal to the money. First we went from you to the deal, now we’re going from the deal to the money. Because you don’t get the money to the deal part, which is getting the contract, you don’t get paid on that part. You got to do your exit strategy. So now, once again, what we’re going to do is we’re going to find buyers. Just notice that it’s very similar, that’s like I said, what part of the business you want to do, the three stepping stones are always the same; lead gen. is the first thing, conversion is the second thing, and exit strategy. Now, to find the deal, to take your deals and cash them out, the very first thing you got to do is to find the buyer. Now, what type of buyer do you need? Very good question, it depends on what type of deal it is. If it’s a high equity deal, then you’re going to sell it to a cash investor, if it’s a low equity deal or no equity deal, you may want to sell it to a retail buyer. Someone that can’t get a loan, because they have bad credit or they own a business and they don’t have a track record of their income, so there’s always an exit strategy; it just depends on the deal and which one you like to apply.

So once you start marketing it to find a buyer; if it’s a cash buyer or a retail buyer, what you’re going to do again is you’re going to start filtering. In my book I showed you how to filter for cash buyers and I also show you how to filter for retail buyers. Without filtering guys, you’re just going to be talking with all these stupid people. Let’s say you’re trying to wholesale it, sell it to a cash investor, that’s what wholesaling is. So many investors are going to call because you have a deal at a deep discount, not all of them have the money, not all of them have a fund so you have to have systems in place to filter out the tire kickers from the real deals. Same thing if you’re going to do financing, you bought a deal and you’re going to do owner financing and sell it to somebody that doesn’t have good credit, and you’re going to say – hey give me 20 grand down, give me $1,300 a month and the sell price is this. Everybody that’s going to call on this property is going to have the 20 grand. So filtering is the key to success guys, in any business, so you’re going to filter it. After you start filtering it, then you’re going to show it to only the filtered people, you’re not going to show it to everybody and their mama, because you don’t have the time for that. Then you got to show the property or the deal to people that have already been filtered out; the motivated buyers again, so notice, everything is about motivation. We’re looking for motivated sellers and they were looking for motivated buyers. And the way we found the motivated buyers is by filtering them. Then we do the showings, once we do the showing and somebody wants it, then what we’re going to have is what we call the closing and securing, so the securing, and closing of the deal. And then that is when you will get paid and you will have a super duper smile guys, because now you got paid.

If you don’t understand this process, there’s a good chance you’re going to quit as a new investor. I’ve met a lot of pro investors that I coached; they don’t even understand this process. A lot of the pro ones, they come to a deal, they get the deal and the contract and they never go to closing, and they’re wondering why; well because you don’t understand again that you got to go back, remarket, re-filter, do the showing, secure the deal, put it on a closing, for you to get paid. So it doesn’t matter if you’re brand new or you’re medium, high. Some investors don’t even understand this process. This is where I’m really good at, I’m really good at taking complex ideas and making them into stick figures for you, so you could understand it, you understand, okay. Where am I? Am I at level one where I’m trying to get the deal? Or am I in level two trying to get the cash. And where am I at, am I just talking to every seller – yeah it’s a two bedroom and two bath, it's two bedroom and two bath, its two bed and two bath. MF that sh*ts already in ad!  You don’t want to do it like that, you want to have filtering system so you don’t have to talk to a bunch of idiots saying “how many bedrooms is it? Are you willing to rent it or sell it?” No,dude no!  So you got to have filtering system.

Four Ways To Find Motivated Sellers

All right, let’s talk about three or four ways to find these sellers totally for free right now, okay. Now again, not only I’m giving you the information for free, how to find them for free, four ways to find them for free, but I’m also showing you how to get the deals for free without spending any money finding these motivated sellers. Isn’t that awesome? I’m giving it to you for free, my trade secrets, and then I’m going to show you how to get the deals for free so you don’t have to spend any money in marketing guys, I rock and I hope you guys go out there and buy The Mother Course. I cover everything under the stars and the moon about real estate investing, from Airbnb investing, from land lording, to fix and flips, to owner financing, to lease, to lease options, to cold calling, door knocking, negotiation, how to give an offer, technologies like how to setup your website, all this types of stuff how to generate leads, marketing.  It’s 171 chapters, guys, I’ve never bought a course that has 171 and I’m almost 40 years old. I read like 60 plus books a year. Now, let’s talk about four ways to find these motivated sellers.

One of the very first one that I like and I always tell everyone is that you should get on Craigslist and Backpage, and then start getting on the rental section, and then type a query “for sale”. What that does is, you’re looking for sellers, home sellers that say – look I want to sell my home, and I want to rent my home. What that mean is that they’re motivated, they’re trying to get whatever is possible because more than likely they’re tired of paying the monthly mortgage on the property and they just want to sell it, or they want to rent it. Besides that, there are a lot of leads on Craigslist for FSBO. So Craigslist and Back pages are great way to start and get your first deal then use that money and use it for marketing, don’t go out and drink booze or stuff, that’s not going to help you. Make that money, use that money – what I call house money to make you more money. So Craigslist and Backpage, very, very powerful.

The second way is to do a Google search; FSBO or for sale by owners is what FSBO is okay, again, there’s website after websites that have a bunch of sellers in all America or your area, whatever you want to do, people are trying to sell their home, okay and you’re going to reach out to them, and see if they’re motivated. These are all for free, all totally for free. Now, when I say free, it doesn’t mean that you can lie on your back and drink alcohol and watch TV and the money will come in, you’ve got to put some action to it.  I don’t have any “just lay there and get deals ideas”, okay. You’ve got to put action, you’ve got to put money, you got to put action or money. And even if you put money, you still got to put some action to it, but you got to be a lot less then if you don’t have any money and you’re trying to do it for free.

The next one is working foreclosures The foreclosures are totally for free, because many of the counties; all over America, I’ve gone to many different states now, and they all have their foreclosure list posted. All you got to do is go to the county clerk’s office, you’ve got to spend a little time to dig for it, find it and it’s a sweat equity, and getting these people’s information and then reach out to them to see if they’re motivated to do one of these deals okay, so the foreclosure list.

Let me add the last one, evictions. Do you think somebody’s going to be motivated when they’re accidental landlord and now they’re evicting their tenant, because they haven’t paid, do you think it makes sense to spend time and energy to find these people and reach out to them? All these things that I showed you are free guys, you don’t have to buy a list, and you’re creating your own list. Make sure you create an excel sheet and you write all these leads down because I bet you 9 out of 10 times you’re going to call them, they’re not going to be motivated, 9 out of 10 times, that’s the way it’s going to work. So if you want to get that one, then you’ve got to do a lot of numbers, but two, to follow up you got to put these leads in an excel sheet so you could follow up with them in one month, in three months, in six months. I follow up with every lead that comes in for three years; okay so that’s the way you should do it, because follow up is the king and the queen guys, so that’s four ways to find motivated seller for free guys.

Now guys, as a new real estate investor, you can go to all these clubs and pay 10, 20 bucks to go through free ones, they’re all trying to sell you some stuff. If you go to these gurus of Facebook, they’ll give you little modules okay, like I’ll teach you how to do land lording, I’ll teach you how to do fix and flips, I’ll teach you how to do wholesaling, I’ll teach you how to do Airbnb, guys with me, I’ve given you the whole thing into one, it’s called The Mother Course. It retails for $1,500. If you go to my website, you’re going in Facebook, Google, you can read the reviews; I over deliver, I go the extra mile and I’m not going to let you down, I’m not doing this for money. But the great news is I’m having a sale right now for this product, instead of $1,500, you can get it for $325.. You also get my bonus, my marketing boot camp that shows you 39 ways to find motivated sellers plus it gives you all your marketing assets you need from marketing flyers to online flyers to emails to text messaging, everything you need to get started okay, and for a bonus as well, for the first 19 people that sign up and download this book, I’m also going to provide you coaching, to help you do the deal and please pay attention. You have to download my seller phone script, in this book I also give you the promotion, my seller phone script is 325 bucks, you get to download for just $49 when you get the book, there’s a promo code in there okay, if you fill out the seller phone script and you send it to me via text over our phone number that we have in our website, me and Soraya will help you get your first check. It’s very simple guys, so you get your first check which is you first which is 1 to 3 check in 59 days, which is basically what the Mother Course does. My Mother Course helps you get your first check or 1 to 3 checks in 59 days. And to get your first deal, I’m even going to hold your hand to do it. There are two requirements; you download the Mother Course and you watch it, so you know all aspects of real estate. Two, you download the seller phone script and you fill it out; you got to fill that a hundred percent. When you talk to a seller, three you text it to our website; myrealestatedojo.com the number you see on there, and me or Soraya or my team member will reach out to you and help you get your first check. Now guys, I chose $25,000 for coaching, you see on my website. You don’t have to get in the sales funnel or anything like that. I show you the price upfront because I’m upfront with you. I’m a no fluff guy, but I’m willing to help you for almost for free, coaching is for free, because I want to get you your first check, because I’m confident that I’m going to change your life with your first check. The world is going to be a way better place for me and you, and other people around us. So, I’m going to put, not a guarantee, I’m going to put my sweat equity and back it up with my Mother Course for the first 19 people that downloaded my Mother Course. I’m going to give you the coaching manpower that you need to help you structure your deals, to help you put it under contract, and at the same time, I hope you find a cash buyer and help you on what to do on the cash buyer if you can’t do it, I’ll do everything I can to find you a cash buyer, it might be just me that will end up buying it. It might be one of my friends’ ends up buying one of your deals, but I’ll do anything I can to get your first check. When you go to step number one to get you a deal and from a deal you get to the money, for the first 19 people that download the Mother Course. Retails for $1,500, you can get it now for $325, I’m not going to let you down. It’s over a hundred hours of advanced training; we’re talking about owner financing, we’re talking about how to give offers, we’re talking about wholesaling, land lording, marketing, everything you need; cold calling, door knocking, negotiations, sales, prospecting, I mean the list goes on and on and on. It is a hundred and seventy one chapters, all videos, exactly what you need to do, plus you get my bonus; marketing boot camp and on top of that, I’ll give you my $25,000 coaching. I’m not going to get a level, but all you got to do is just fill out the seller facts and send it to us and we’ll give you help. We’re not going to call you and motivate you and see how you’re doing; it’s what I call self-coaching, to initialize the coaching, you got to have the seller phone script, you fill it out a hundred percent. Don’t call us – what should I do? Go ask your Mother Course, that’s what the Mother Course is all about. But if you have done the Mother Course, you done the marketing and you have a live fish on the hook, and you didn’t even reel in, I will help you for free. You don’t have to pay me a dime because I get the joy of seeing you get your first paycheck, if you’re new investor or if you’re a pro investor guys. So for a limited time, you can download my Mother Course, its $325, I go to everything I’ve talked about, how to fund, how to find deals, how to structure deals, how to fill out the contract, how to setup a website, everything you need in one course, its $325 for a limited amount of time and I’ll see you whenever you setup the seller’s facts and you send it to me and I’m going to help you get your first deal and I will do it if you commit.

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