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Tag: "investing"

The Forsaken Children Project

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Short Sales Taking Too Long? 5 Ways to Generate Cashflow

billsMost investors (and real estate agents as well) have two big problems with Short Sales.

And sometimes these problems drive them close or even past the point of giving up.

Here they are (and I got them from dozens of emails and blog comments of frustrated
short sale investors (and agents):

1. Short Sales are taking too long before they generate revenue (either commission or profit),

2. Short Sales too often fall apart (eliminating any profit or commission you were counting on…)

Ok, so besides tweaking your short sale business by filling your deal funnel and increasing the closing rate, what else can you do to bridge the revenue gap? Here are my favorite, “Top 5 Ways”:

1.  Wholesale Properties

Wholesaling properties is by far the fastest way to generate revenue quickly.

The characteristic of a wholesale deal is that you sell to a cash buyer at a discounted
price off the fair market value.

Two simple steps you need to focus on: Locate a handful of REAL cash buyers, and find
great deals according to their criteria. Great deals are everywhere.

And: Most great deals are MADE, not FOUND! Contact, talk, negotiate… (don’t
just look at lists or web sites and think the great deals will fall in your lap.)

Challenge: Make sure your buyers and sellers honor your position as wholesaler
both for the first deal and any follow-up deals! If you get this right, one successful
deal will lead to additional deals with more revenue for you. Don’t get greedy.

2. Free and Clear Deals

Free and clear deals (or “low-leverage” deals) are the kind of deals that can close
much faster than short sales. Free and clear deals can be sold to cash buyers at
a discount, to non-qualifying buyers with owner financing, or retail and outright
to qualified buyers (using the “Inverse Purchase System” works really well for
that last group!

These different exit strategies give you a lot of flexibility to time and structure
your revenue flow while you’re waiting for the big short sale pay days.

3. Land Investing

Land investing is another great and extremely underused niche. You will find that
there is a lot less competition when you venture into that area. An easy land flip
system can get you revenue within 30 days starting from scratch.

The simple steps to follow are: Market research (online), get a list (online or offline),
send out direct mail (online), make deals with land owners who respond (phone),
sell the deals (online).

None of these steps require that you see the property. Therefore, it does not matter
where you are located. To prove this point to yourself, just go through the steps in
a different state than where you live and you will see it works great. The best system
that I have used and recommend for this niche is Jack Bosch’s “Land Profit Generator
(if you can still find a copy…)

4. Funded Proposal

A “funded proposal” is a way to help fellow real estate investors getting started with
the best resources, education and support. When you set yourself up as an authority
in your niche and/or area you can build up your network of buyers, sellers, agents
and investors using online marketing and social media.

Besides good and valuable content that you provide free of charge, you can also send
recommendations to your list from time to time. These could be for services, useful tools
or information. When someone in your network buys through your recommendation,
you get paid a referral fee.

This is a very powerful stream of additional revenue. Now, don’t get me wrong, it can
take some time to build up your network and trust, but once you have that established,
you can generate revenue with the push of a few buttons.

A variation of this method that does not even require that you already have a list is
to search for valuable offers and partner with someone who has a larger list for a
share of the revenue.

5. Lead Referral

A common misconception in internet marketing is that you need to build huge lists
before you will be able to make a significant amount of revenue. Particularly in real
estate where the “transaction value” for each client can be thousands or even tens of
thousands of Dollars, it can be much more lucrative to focus on the QUALITY of the

You can do this in two ways: More specifically target your potential clients according
to their needs and wants, and develop your relationship more deeply. That way you
can generate high quality leads that you can refer to your network of professionals
and investors for a fee.

Sometimes real estate agents will tell you that they are not allowed to pay a “referral fee”
to someone who is not licensed. However, every agent spends significant amounts of
money on their own marketing and lead generating efforts. If you provide leads you
can get paid a “marketing fee”, and most agents will understand the difference.

This can be a great option for you if you want to focus on a specific niche for your
own investing, but keep getting leads that you can’t or don’t want to work with.

Summarizing these different ways of generating fast and steady revenue in your real
estate investing business, we need to point out that almost every revenue strategy
will work best for you when you understand how to set up your network so that you
provide real value to others.

The more people you have in your network and on your team who will benefit when
you generate revenue (either by making money or in some other way), the more and
easier will it be for you to have revenue come to you.

Please engage with this subject by leaving your comments, questions  or suggestions
below! That’s one great way of building your network and get noticed by other likeminded

Free-And-Clear Homes Review

“Are Free-and-Clear Homes a Good Target For Real Estate Investing?”

With a bit of research we found that in 2005 approximately 33% of all owner occupied homes were owned free and clear. (See pdf from US census)

Another source, dating 2001 puts it even higher – at 40% (yahoo answers)

Since this is a very significant portion of real estate, it looks like free and clear homes would be a great sub-niche to target with marketing. You can learn how to target free and clear home owners specifically with direct marketing campaigns.

“How can I find and reach free-and-clear home owners?”

The best way to find and reach free-and-clear home owners would by getting lists either from a list broker or (with some limitations) from a title company resource.

I found this free training video (<== LINK!) by Richard Roop that goes into great detail on this question.

Stay tuned, and register for a free Q&A webinar about Free-and Clear real estate investing <== free webinar access.

How to Determine Cash-Flow For Rentals

This video explains in detail how to use a parameter that is commonly used to evaluate investments in the stock market. But here you can learn how to apply this tool to income property. Looking at proeprties from a cash flow perspective helps you make a sound investment decision and eliminates confusion about values and the bad news in the media…

Note how the presenter mentions a P/E ratio of about “11″ as being a good solid cash-flow investment in Southern California. If you apply his formula to our available wholesale deal (click here), your P/E ratio will be:

$190,000 (purchase plus repairs) / $33,600 (one year rent income) = 5.64 (!!!)

Outhouse Inclusive – Bank Wants Out NOW!

==> Register for email updates on the hottest bargain deals! ==>

Nice Compton Home – Fix-And-Flip Or Hold…

The bank’s had enough of the credit crunch…

Watch this short movie to walk you through this great first-time buyer or investment home in Compton. It needs minor cosmetics, and there are several creative additions. One of the bathrooms seems to have been added (probably unpermitted), and there is an extra “bedroom” with private access that was created from a covered porch. Don’t miss the “outhouse”!

Watch the Walk-Through Video here:

E El Segundo Blvd
Compton, CA 90222
3 bedrooms, 1 bath, 956 Square feet (Actual: 3 bed, 2 bath – plus the “outhouse”)

ARV: $237,000
Sold comps in the area are almost exclusively “foreclosure resale” transactions. By and large these are bank owned properties in bad shape. The key to prosperous investing in this market is to rehab a good product and sell it at an affordable price that allows for a reasonable profit. – Or hold on to it and rent it out for the big payday and wealth building strategy.

Our cash price: Only $109,900 (includes assignments)
Repairs: $16,500 (paint, carpet, minor repairs, cleanup, appliances)

Call now to lock in this great property: 626-921-5881