Finding, Flipping & Fixing The Beginning Real Estate Investor s Basic Training Course

1 Finding, Flipping & Fixing The Beginning Real Estate Investor s Basic Training Course Timothy McKierney

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3 Finding, Flipping & Fixing The Beginning Real Estate Investor s Basic Training Course Introduction.7 Section One Birddogging (Finding) Find a Property.15 Lead Sheet 28 List a Property.31 Sell the Property..34 NCND.41 Resources 1..46 Section Two Wholesaling (Flipping) Wholesaling.49 Finding Sellers 64 Investor Profile Sheet.69 Filling Out the Lead Sheet and Profile...72 Agents and Properties.78

4 Contracts..86 Section Three Fix and Flip (Fixing) Fix and Flip..95 Resources Videos...109 Resources Books...116 Forms and Documents Forms and Documents.118 Affidavit & Memo...121 Back to Back Closings 127 B-C Real Estate Purchase and Sale Sample.129 Business Card..143 Buyer Script.145 California Information.147 Commission Agreement..150 Disclosure Agreement.151 End Buyer Down Payment Statement.152 Land Contract.153

5 Land Trust Revocable Trust..159 Probate Letter 166 Probate Tracking Sheet..168 Property Appraisal Sheet 172 Real Estate Affidavit & Memo Generic..177 Real Estate Affidavit & Memo Simple 187 Realtor Script..190 Resources Books.193

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7 Real Estate Investor Training INTRODUCTION Welcome to Real Estate Investor Training! The objective of this course is that you will be able to find, evaluate and sell properties quickly at wholesale prices. To do that, you will also need to find buyers, market your properties, write contracts to protect yourself both as a buyer and seller and to negotiate effectively for the best deal. You will learn all of that in this course. And you don t need a website. All you need to succeed is a cell phone and internet connectivity. You may think there s a lot to learn but don t worry, we ll take it step by step and learn it one piece at a time so that by the end of this course, you will be a true real estate investor. As you go through this program, you may discover many things you do know, you just haven t applied them to real estate. Take notes, study and apply your knowledge as soon as you can. I recommend doing at least one thing a day, beginning today. In this course you will learn three methods of making money from real estate. The first method is commonly called birddogging. In this method, you collect a Finder s Fee for each property you find and sell to an investor. How much you receive from each home you find is negotiable

8 but I recommend you use either a percentage method or a fixed fee basis. The second method is Wholesaling. This is when you find a property, put it under contract and then either assign or sell the property to an investor. This has a bit more risk than birddogging and will require you have some cash to pay the deposit and possibly a down payment. That s why birddogging comes first, so you can build up your cash reserves before going into Wholesaling. Wholesaling is also called simply Flipping. Method three is Fix and Flip. Locating and evaluating a home is the same as in the first two strategies, but in Fix and Flip, you will buy the house and then fix the minor deficiencies with the property. Next you will raise the price of the property to a level you think is fair lower for a quick sale, higher if you can afford to wait longer for the sale. Fix and Flip requires that you are able to evaluate the costs of repairing and upgrading the property accurately (within a range) and that you have the cash set aside to repair the property and then that you have the cash set aside to hold the property until it sells. Some investors use this strategy exclusively and have made millions using Fix and Flip. We also provide a Financial Management Planning course. This is available separately and will help you manage your income, invest for cash flow and provide a means to monitor your income and expenses.

9 With the Financial Management Planning course, we will show you several passive income sources. Passive income is ideally where you make an investment and then never go back to it, but the money from that investment keeps rolling in forever. Less ideal is where you make an investment but then have to spend a few hours a week (or a month) to maintain the cash flow from that investment. Passive income sources vary widely in their returns ranging from just 2% or 3% a year (or even negative) to well over 100% a year. More typical returns currently are 15% to 25% each year. As you may imagine, the higher the return the higher the risk so we will also teach you how to evaluate the risk and benefits of an investment. Most passive income investments require that you be an accredited investor. The IRS defines an accredited investor as someone who has earned an income of at least $200,000 in the previous two years AND has a net worth of at least one million dollars AND you expect to earn at least $200,000 in the current year. This means you probably won t be able to make a passive investment tomorrow, but if you keep investing in real estate, sticking to the basics and don t get crazy or make outrageous risks and if the economy doesn t poop on us you will be an accredited investor sooner rather than later. OVERVIEW OF STRATEGY ONE 1. Find a property 2. List the property 3. Sell the property

10 Let s take each step one by one and explore what you ll be getting into. Find a Property We will show you 7 different ways of finding suitable properties for sale. Then we ll show you how to evaluate a property to weed out those that are not suitable, keeping only those that will sell fast and start putting money into your pocket quickly. List the Property Listing a property for sale begins with finding possible buyers for your properties. We will show you at least 3 different ways of finding buyers. Next we will provide you with a set of websites that allow you to post your home for sale for free so that you receive national exposure for your homes. Sell the Property Most likely you will be selling your homes to other investors. These will be the on the list of potential buyers you developed from above. As buyer inquiries come in, you will respond with a Finder s Fee agreement, telling them that specific details of the property (address & MLS number if it has one) will be sent to them as soon as they have signed, dated and returned the Finder s Fee agreement. You will also tell them that they may use your broker to buy the property or they can acquire their own. I suggest this for two reasons. 1. If they use your broker you have greater control over the transaction meaning you will be less likely to get cut out of the deal (doesn t usually

11 happen, but sometimes it does). 2. By using your broker, it saves your buyer time in finding their own broker. Because the homes you find often are sold within a few days (by others competing against you), you want your buyer to be able to buy from you as soon as possible. We will give you an email format to use for this. And that s pretty much it for the Overview of the program and the Overview of the first strategy. A few tips: For your phone number, I do not recommend you use your home phone. Either use your cell number or get a separate cell phone or online phone number for your business. See Resources for details. Business cards. You will need business cards eventually. You can order up to 250 cards free from Vistaprint.com and just pay the shipping charge usually $9.95. Emails: When corresponding to sellers, agents, buyers, attorneys or other professionals, you should keep the length of each line of your email to a maximum of 60 characters. There are several studies that indicate that emails with a line length of 60 characters or less are viewed more favorably and as being more professional by their recipients. Also emails with line lengths of 60 characters are replied to more often. Your office: You don t need one. Use your bedroom, the local McDonald s, a spare room, closet, the garage,

12 whatever. I used a table in the shade of the veranda in the courtyard at Tempe Mission Palms Hotel in Tempe, AZ. I was outside all day (Loving it!) and when I got too hot, I went inside for some cool air. I was within walking distance of a Dunkin Donuts and Starbucks where I got my coffee and donut or bagel for breakfast and within walking distance of about 20 restaurants of all types for lunch. After a long, hard day of work (LOL), I was within walking distance of about 15 taverns, bars and pubs where I would go for a beer or two and fries, wings, a burger or sometimes a salad if I was feeling in a health mood. Business license. You are operating a business so technically you will need one. But I would be careful about this. The odds are high that as a private investor, the office providing business licenses will have no category in which to place your business and as a result they may give you a license that is unsuitable for what you do, requires undue restrictions or places restrictive regulations on your practices. As a private investor I never got a business license. It was only when I started a trust, LLC, partnership or corporation that I obtained a business license. But remember, you are not an agent or realtor so stay away from anything that suggests you are. Why? Real estate license. If you say you are an agent or realtor you will need to get a state real estate license. You aren t an agent or realtor. You don t need a license to be an investor, but you may want to get a real estate license for your own education. I don t feel a real estate license is necessary and they may be more of a hindrance than a help. I never got one.

13 Internet connectivity. You can t operate this business without some way of accessing the internet. You will be locating, listing and evaluating properties largely through the internet. You will also find many of your buyers on the internet. As long as you have internet access and a device that connects you to the internet, you have all the internet connectivity you need. Two Final Thoughts There are two axioms in real estate investing that you may have heard: Cash is King. You make your money (profit) when you buy a property, not when you sell it. The location, location, location axiom you may be familiar with does not apply here because, if the price is right, there will always be someone who ll buy, regardless of where the property is located. Cash is King. If you have cash to make a deal, you will always get the deal over someone who does not or who has to borrow money to make the deal. Our goal is for you to have enough cash on hand eventually for cash is king to be a reality for you. You make your money when you buy a property, not when you sell it. Ok. This may be new to you and a little difficult to understand. Proper real estate investing is when you buy

14 a property and know that no matter what happens, you can make a profit from that property. That may be the ideal, but it doesn t usually occur in practice. Instead, what most successful investors do is evaluate a property, estimating their potential profit and establishing an exit strategy for that property all before they buy it. That way the odds that they will profit from the deal rise substantially and risk is greatly reduced. That s what I teach and it will save you a lot of heartaches (and lots of money) if you follow it.

15 FIND A PROPERTY I am very excited for you to begin this training and I know that you will become a very successful real estate investor if you stick with it. Getting started as a birddogger is easy. You won t be getting rich, but you will be making a good enough income to live on. This is an action-oriented program. You must do what is necessary in order to succeed. There may be days in which you don't feel like working, but those are the very days which will define your success. Get out there and do what you know you must do. You can take a vacation when you have achieved your first monetary goal. Follow this training in order and you should have no trouble in learning and implementing the material. My goal is for you to become a successful and skilled real estate investor and you must learn the material and do the work in order to succeed. I have total and complete confidence in you and I know that your success is just around the corner. A quick review of what you'll be getting: Section 1 - Finder's Fees (Birddogging) Section 2 Wholesaling (Flipping)

16 Section 3 - Fix and Flip Along the way you'll be receiving a list of resources - ebooks, books, articles and videos. Read and watch these at your convenience. They are not required, but they will be very helpful to your real estate education. You may order any of these books from me. I will be happy to send them out right away. You will also learn how to negotiate a deal, write a contract, conduct marketing and buy, sell and evaluate properties. This is an exciting course and I am excited for you! I know you are going to be successful! This training manual is organized into three sections. Please go through each section in the order described in the first part of each section. The sections are: Finder s Fee (Birddogging) Wholesaling (Flipping) Fix and Flip You are currently in the first section Finder s Fee. FINDER S FEE Please read the following in this first section in this order:

17 Find a Property (what you re reading now) Lead Sheet List a Property Sell the Property NCND Resources FIND A PROPERTY Following is a list of sources for finding homes to sell. Hud.gov This is hands down the best place to find homes at wholesale prices. You can t just buy a home here, you have to place a bid and you have to place a bid through a NAID broker, but we ll go over that in a bit. We ll come back to this in a bit. Other Wholesalers There are other investors in your area that are selling homes at discount prices. Find them and offer to help sell their homes for them. Who is going to say No? Bandit Signs

18 These are those obnoxious yellow signs you have probably seen at intersections, nailed to utility poles and alongside the road. They usually say something like I Buy Homes Cash or something to that effect. This is one of the best means of attracting sellers as well as buyers if you post your signs in well-trafficked locations. Flyers Create a flyer saying you buy properties cash and then hand them out all over the place or get someone to hand them out for you. Not real effective, but you get some inquiries this way. Business Cards Get a business card and hand them out to everyone, place them wherever you can and stick them up on community bulletin boards etc. These work fairly well. Craigslist Ad A Craigslist ad is one of the best ways to get buyers but not so effective to obtain sellers. To get sellers using Craigslist, you will have to go through the real estate for sale section and start emailing or calling the ads. Backpage Ad I ve heard good things and bad things about Backpage. What I mean is that for some people it seems to be effective while for others it has not been. Backpage has not worked for me, but maybe it will for you.

19 There are literally dozens of ways to attract sellers and buyers, but we will focus on just these seven, especially the first Hud.gov Hud.gov If you haven t taken a look at Hud.gov, go there now. On the first page you will see a lot of information about all the areas and issues the Department of Housing and Urban Development (HUD) is involved with. We will use Hud.gov to find our first set of homes and you may want to use this exclusively if it is working for you. Because this is a government site, they don t make navigation easy so copy and paste the following link to go to the homes for sale page. https://www.hudhomestore.com You should see a map of the United States in the upper right and a field for searches roughly in the center. To find a house for sale, simply click on your state. Click on the down arrow on Buyer Type and click on Investor. For Status click on Accepting Bids. Next on the beds and baths, click on 3 beds and 2 baths. 3 beds and 2 baths are the most sought after homes and you should be able to sell one quickly if the price is right. If you don t have enough homes listed, or any, change your parameters to 2 beds and 1 bath and see if that works. If you still don t get any homes, begin searching through

20 neighboring states beginning with 3 beds and 2 baths and dropping that down to 2 beds and 1 bath until you get a few homes to review. Don t use the Any category in either field and don t use the 1 bedroom option. You will have a hard time getting someone to buy a one bedroom home unless you get a specific request for one. When you have a list of homes on the hudhomestore site, arrange them by price by clicking on the down arrow next to the Price column. You may need to click a couple of times. I begin with lowest price first because I want to find homes that are highly discounted from the local market value. You need to establish the ARV and market value of a home before you place a bid. ARV stands for After Repair Value. To get the ARV, open up a new tab and paste in the following http://express.realquest.com 80% of the time, Realquest will provide the best estimate of the ARV for any given home. Sometimes it doesn t which is why you will also need to establish the market value. For Realquest, go to the Hud site and copy the street address of the home you need to compare and paste it into the Realquest search field. Then type in the zip code and click on the search button.

21 You now come to a page that has information about the home. There should be photos as well as a description of the property. In the upper left you will see Estimated Value. This is the ARV for that home according to Realquest s estimate. Jot down the estimated value. To obtain the market value, copy and paste the following http://www.zillow.com Copy and paste the street address in to the zillow search field, type in the zip and click on search. The page that opens in Zillow should be a page with information about the home. At the top left of the page you should see the address of the home. To the right is a button with the word Filter, click on it. Uncheck For Rent if it is checked and check Recently Sold. Then click the Apply button. You may have to go back and close and reopen the Zillow page before you get to this screen. If the home you need to get a figure for does not show up on the map, just go up to the address of the property, go to the end of the address and click. A small panel or field should show up on the map with the home on it. Click on the address of the home in the panel or window on the map. This will take you to a description of the property with several photos of the home.

22 To the right there is a column, often with the names of 2 or 3 agents at the top. Scroll down this column until you come to Nearby Similar Sales. Scroll a little further and click on See sales similar to xxx, with xxx being the address of the property. This will bring up a map and list of recent sales. Beneath the map and above the list of recent sales there is a group of tabs. One of these reads Sold On, and has a down arrow below it. Click on the down arrow a couple of times. You want to have the sales in descending order with the most recent sales at the top. Review the square footage of the properties sold and ignore any in which the square footage is 50% higher or lower than the square footage of the home you are researching. You want to be able to compare the sales prices for at least 5 or 6 homes of similar size if possible. But if less, just get as many as you can. I use Excel, but you can use any spreadsheet you prefer for the next step. Type in the sales price of each home from Zillow and sum them. Then get the average. This is the estimated market value of the home and may be a more reliable figure than the ARV, but you need them both. I now create a worksheet for each home filling in the details of the home. You are going to be using these details over and over again so you need to have this data readily available.

23 This is the template I use for each home. Home cost: HUD ID #: State: Description: Inspection Report HVAC Appliances Plumbing Water heater Septic Roof Electrical ARV per Realquest: ARV per eppraisal.com: ARV per Zillow: ARV Average: Comps: I use the average of 3 ARV estimates and then compare that to the comps below. A comp is the market value based on the average of the last several sales of similar sized homes. To fill in the details of the home, go back to the hudhomestore site and click on the Addendums tab. Under Addendums you will see a list of reports regarding the home. These usually, but not always, include a lead paint report, sales contract packages and a PCR or Property Condition Report. The PCR is what you need. Download the pdf and choose the data you need to fill in the template. You will note that I don t have it in the same order as the PCR. I suppose it doesn t make a difference

24 really, but I wanted to disguise my source for the data, so I rearranged the headings under Inspection Report, but I m guessing I m not fooling anyone who is aware of the hudhomestore site.

25 If they tell you they may be interested in buying a home from you ask them what they are looking for in regard to a home. You may have to dig a bit, but try to get them to divulge the following information if you can: Size of home you are looking for, (number of beds and baths). Type of home, (single family, multifamily, etc).location or area you want to buy in? What percentage of fair market value do you prefer to buy at? How fast can you close? Will you be using cash or financing? Another good source for other wholesalers is your local real estate investors association. Join and attend the meetings and network with as many people as you can. Hand out your business cards to everyone. Ask them the same questions as above. These people should be a good source of both homes to sell and buyers who will buy homes you find. Here s a good technique I learned from China. Before you attend the next meeting of your local real estate investors meeting, buy yourself a small (5 inches by 8 inches or so) spiral bound notebook. Also get yourself a small stapler and some staples. Now everytime you meet someone, staple their business card to the top of the page and write in your notes about that person on the page. Include contact info, the types of properties they are looking for, whether they are cash or finance buyers, etc. Evaluating homes from other wholesalers To evaluate a home provided to you from another wholesaler, open up zillow.com, eppraisal.com and Realquest (express.realquest.com). Then for each of these, go through the process you used to evaluate a home above.

26 You won t be able to use the template for hudhomestore, just use something that makes sense to you. Generally try to fill in as much of the same data as you can. Bandit signs Some investors swear by these and others claim they are ineffective. They work ok for me. (If the police or DPW doesn t take them down). I would tell you to follow the sign regulations in your city. Bandit signs are the yellow 24x15 or so signs you see everywhere. They are the same signs you used to obtain the list of other wholesalers. To attract sellers, get a Sharpie and write I Buy Homes Cash. Fast Closing. 999-555-1212 Use whatever works for you. Replace the phone number above with the phone number of your cell or your real estate business number. From here and for all the rest of the selling sources, you will be using the Lead Sheet. This document (attached) will give you the data you need to acquire every time you talk with someone about buying their home. Either transfer this data to your spreadsheet or type directly into your spreadsheet when obtaining the data. Also from here on out, evaluate the ARV and comps (market value) for each home using the procedure above. Flyers On a 8x10 or 8.5x11 sheet of paper write the information you would for your bandit signs, then hand these out everywhere. Don t put these into mailboxes, that s illegal. You can stuff them into the crack of a door, underneath the

27 windshield wiper of a car or as doorhangers for the home doorknob. Business cards Get your business cards from Vistaprint.com or some other source. Hand these out everywhere, post to community bulletin boards and leave wherever you can. Some shops and stores allow local residents to leave a small number of business cards on the counter or elsewhere in the store. Some investors use fluorescent yellow or green cards so they will stand out from all the other business cards. Craigslist ad I ve had some of my best results in getting buyers from a Craigslist ad, but for sellers, not so much. Give it a try and see if it works for you. Backpage ad Same as Craigslist ad, try and if it works great, if it doesn t, you haven t lost anything except a few minutes of time. LEAD SHEET When you find a home for sale or someone calls you regarding a home they want to sell you, complete a lead sheet on each home. I have included a Lead Sheet for you to use. Just go through the Lead Sheet asking about item and filling in the details as you go. This will help you to evaluate a lead and help you to decide if it is a home that merits further attention.

28 LEAD SHEET Seller Contact Info (include phone, fax, and email) - Address of Property for Sale How you generated this lead Bedrooms and baths Square footage Construction type (block or frame) Repairs needed

29 Reason for selling (be specific. moving out of state is not specific. moving out of state because mom is DYING is specific) Are there any taxes due or liens on the property? Loan balance - Will you take what you owe? Are payments and taxes current? If not, how much is owed? How much was paid in last year s taxes? When are the next payments due? Asking price

30 If we pay cash, close quickly, and take the property in its as-is condition, what is the LEAST you will take? (ask it JUST like this) - TAV (tax assessed value you can find this on county tax website) - (zillow.com or trulia.com may also have this as well as realquest.com) ARV (use realquest.com ONLY) -

31 LIST A PROPERTY To sell a property you will need to find buyers first. We have gone over a couple of these methods such as your local real estate investors association and calling the numbers on bandit signs. We will review a couple of other methods that have worked. Craigslist ad Craigslist is a great way to find buyers for your properties. Just create an ad describing the property and post. Then wait for the emails to come in. It s easy, quick and costs nothing. Local agents You can also contact local real estate agents. Many may want to work with you to help you sell your property. They can sometimes be an impediment but often they can help. Try this avenue if you want to give it a try. Classified ads You may want to place an online classified ad on a free site like Backpage or other. These have worked well in the past and are likely to continue working well. You may also want to use paid online ads.

32 Facebook Create an ad in Facebook and direct them to a website where you have your properties listed. I said you don t need a website, and you don t, but if you have one you can send people to it using Facebook and other online paid ads. Website You don t need a website but this is an option you can choose if you decide to follow this route. You can either get a paid website or use any of the free website services or a free blog site. I use several including Blogger.com, weebly.com, Bravenet.com and others. Groups Join several online real estate groups. You can find these at Yahoo.com and Linkedin.com If you search you will find others you may want to join. Usually I recommend waiting a week or two after joining before listing a property, but use your own best judgment. Listing a property I define this as posting a home for sale to a real estate listing site. These include: equitypropertydeals.com postlets.com sellmyhousefast.org

33 myhousedeals.com/property/create/ postyouradvert.com sellpoint.com Sellpoint is a pay to post site so it isn t necessary to use, but take a look at it and decide for yourself if you want to use it or not.

34 SELL THE PROPERTY OVERVIEW 1. Write the Finder s Fee Agreement 2. Send the Finder s Fee Agreement to inquiring buyers 3. Receive dated and signed Agreement back from buyers 4. Provide property details (address) and broker information to buyers Write the Finder s Fee Agreement A Finder s Fee Agreement is a legal document between you and the person you will be referring the property to. You are not selling the property, you are selling access to the property. This is worth whatever you can negotiate for it, but I typically charge 2.5% of the selling price. Percentage Method At 2.5%, I don t always get much, sometimes just $50 or $75, but sometimes you can get a payday of a couple of thousand dollars. You may want to charge more or less for your percentage. If you re a good negotiator, you might be able to charge a higher percentage.

35 Set Fee Method Other people charge a set fee to provide access details to a property. Sometimes they only charge a few hundred dollars but I often hear figures in the thousands. I have heard of some people charging $5000 or even $10,000, but that is uncommon. Usually I hear figures of between $2000 or $3000 to about $5000. I don t use the Set Fee method because I don t feel I have to. The properties have a certain value in the marketplace. By charging a set fee, I may upset that perceived value making the property more difficult to sell. By charging a percentage, I may not always get much, but the perceived market value of the home is not skewed out of place. Use whatever method you feel will work best for you. Next we will take a look at the different parts of the Finder s Fee Agreement. The official name for the Finder s Fee Agreement is actually the NCND. This stands for Non-Compete, Non- Disclosure. This will legally protect you from having the person you give information about a property to from going around your back and cutting you out of the deal. It may still happen, but now you have legal recourse if it does. You won t have to write or find your own NCND. I am giving you mine to use and you can make changes as you see fit, but it will be helpful for you to understand what each part of the document does.

36 The first part of this document is the representation of participatory parties. What this long title does is simply tell us who the parties signing the document are. Next is the reason the document is necessary. What is the purpose for this document? This should be a concise, succinct statement, no more than one or two sentences in length. Next is a set of definitions as used in the document. In the NCND I have provided, there is only one definition stated Confidential Information. After this we have the clauses of the agreement. Properties Purchased does not indicate what specific properties are being purchased, that is left to a different document, it describes what happens if and when a property is purchased under the terms of the agreement. The Finder s Fee statement provides for the amount of the Finder s Fee. Next is another definition; in this case Introduced is defined. Non-Circumvention as well as the first clause of the document are the enforcement paragraphs of the agreement. They set the parameters and responsibilities by which signatories are bound. After this comes a set of short clauses which further define the document and set the parameters and conditions by which the signatories are confined.

37 Finally are the signature and dates section which make this a legal document, binding on all parties. If you prefer, you can use the document I provide, or go ahead and download one from the internet, write your own or have an attorney write one for you; the choice is yours. The remaining steps in selling access to your property are really easy. Send the NCND to each potential buyer. Do not provide additional details about the property until you have received a signed and dated NCND from them. When you receive the NCND, review it for signatures and dates. If anything is missing, return it stating they missed something and you will provide the information as soon as you have received the corrected NCND. With a properly signed and dated NCND in hand, send out the address and contact information for the property. Also let your potential buyer know that you have a broker that you can provide at no charge in order to expedite the

38 click on your state and fill in your city or zip and make note of the available brokers. If there isn t any or if no one accepts your offer, widen your search by including neighboring zip codes, cities or states. When you begin calling brokers do not email (never worked for me) simply ask them if they would be willing to place bids for you on the Hudhomestore site. When a potential buyer accepts your offer of using your broker, simply put the two in contact with each other. Follow-Up If a deal does not go through quickly it probably won t go through at all, houses often do sell fast on this site. If you don t hear anything from the buyer or your broker in a few days, email the buyer and find out what is going on. Also call your broker and ask about the transaction. If you find out the deal is in progress, follow-up with the buyer and ask a few questions about the transaction. Act as if you know what it is happening (you do) and ask about prices, actions and what the buyer s hopes are in buying the home. This should be enough to remind the buyer that you are keeping on top of the transaction and that you are expecting a paycheck from them soon. I wouldn t be blatant and start accusing people of trying to go behind your back and cut you out of the deal. They may be doing that, but to accuse people in that manner will be sure to generate more enemies than friends. If things work

39 out, you can continue your relationship with that buyer or discontinue your relationship with them as you choose. Recourse If someone does go behind your back and buys a house you referred to them and they don t pay you the Finder s Fee, there really isn t a whole lot you can do. This shouldn t happen ever, if at all, because most business people at this level need to maintain a clean reputation to remain in business. But if it does happen, stop working with that person, obviously. If it happens you have two possible courses of action you can take; 1. You can sue the person and 2. You can forget about it and move on. I seriously recommend you select option 2. The repercussions, negative feedback, lost time (and lost deals) and costs associated with pursuing a lawsuit are just not worth it. There are plenty of buyers out there; just choose the next and move on. Why California? You probably noticed that the Agreement is bound by the laws of California. The reason for this is that California has the most stringent and effective legal codes for dealing with disputes between parties. Next Steps Begin. Order your business cards, start looking at homes on the hudhomestore site and list them on the listing sites and Craigslist.

40 Begin finding buyers, join your local real estate investors association, get your bandit signs handwrite them only printing is less effective and get in contact with other wholesalers and ask if you can help them sell their homes and if they would consider buying your homes if the price is right and then find out what that price is. Get started, nothing happens until someone buys something get someone to buy something today.

41 NCND AND FINDER S FEE AGREEMENT This Agreement is effective on the date signed below between (the Representative) and (name) or assigns (the Recipient). WHEREAS, the Representative wishes to provide to Recipient certain proprietary information pertaining to properties that Representative provides to Recipient, the Representative and Recipient agree as follows: 1. CONFIDENTIAL INFORMATION Confidential Information is defined as any financial, business, customer or technical information previously or hereafter supplied to or acquired by other or learned by Recipient and/or Recipient s officers, partners, shareholders, unit holders, employees or agents in the course of our discussions or in communiques with Representative. Recipient acknowledges that information concerning opportunities, situations or persons are the personal property of Representative who brought this information to the awareness of Recipient and, therefore, Recipient agrees not to circumvent or bypass Representative in any way, and agrees to maintain the confidentiality of information concerning Confidential Information. 2. PROPERTIES PURCHASED

42 If, and only if, Recipient or assigns purchases and closes on any property which was introduced ( Introduced is defined below) to Recipient by Representative, or introduced to Recipient by Representative whom received the property from Representative, then Recipient agrees to pay a Finder s Fee as follows: FINDER S FEE: Pay to Representative 2.5% of purchase price. Total Finder s Fee paid by Recipient will be two and one half percent (2.5%) of purchase price paid from escrow on the recorded date of closing. Representative shall be paid separately and individually. If Recipient or assigns does not purchase and close on said property, then Recipient shall not owe to Representative any fees, payments or compensation of any kind. INTRODUCED is herein defined as a direct email or other communication from Representative to Recipient enabling Recipient to ultimately contact the seller or seller rep of said property. 3. NON-CIRCUMVENTION Throughout the process, Recipient may learn the names, telephone numbers, websites, online profiles, email and contact information of investors, borrowers, lenders, agents, brokers, banks, employees, principals, officers, lending corporations, individuals and/or trusts, herein called Contact(s). Recipient acknowledges, accepts and agrees that the identities and contact information of the

43 Contact(s) will be recognized by Recipient as exclusive, valuable and proprietary information of the Representative. The Recipient agrees to keep confidential any names or contact information of any Contact(s) introduced or revealed to the Recipient and that its firm, company, joint ventures, other associates, corporations, partnerships, divisions, subsidiaries, employees, agents, unit holders, shareholders, heirs, assigns, designees, co-brokers or consultants will not contact, deal with, negotiate or participate in any additional transactions with any of the Contact(s) without first entering into an agreement with the Representative. Such confidentiality will include any names, addresses, telephone, telex, facsimile numbers, email and/or other pertinent information disclosed or revealed by Representative. Representative also mutually grants the same rights to the Recipient in regards to their Contact(s) as defined above. 4. GENERAL A. Representative and Recipient agree to keep the details of this agreement confidential. B. Recipient agrees to return to Representative, upon written request by Representative, all writing and other materials containing Confidential Information. C. This Agreement shall be binding upon the parties hereto, and also for the successors and assigns of the parties hereto, and upon any corporation or legal entity in which the Recipient holds an ownership interest.

44 D. This Agreement shall be governed by the laws of the state of California. E. This agreement may be amended from time to time by mutual consent. F. It is agreed to by all parties to this Agreement that an e-mailed or facsimile copy of this Agreement is to be considered as valid and as acceptable as the original, and that separate signed copies may be considered as an original if supplying the necessary signatures in the aggregate. G. REMEDIES FOR DEFAULT: The parties acknowledge that in the event of a breach of the provisions of this Agreement, damages alone shall not be a sufficient remedy and therefore each party shall be entitled to all equitable remedies, including injunctive reliefs and specific performance of this Agreement. ACKNOWLEDGED AND AGREED; Representative: Signature: Address _ Address City, State Zip Email Office/Cell Date, Recipient:

45 Company Name, Individual Name, Authorized Signature, Date, Address, Address, Phone, Email,

46 Resources Articles, Videos 1 & Listing Sites Free Online Real Estate Investing Articles http://www.reiclub.com/real-estate-articles.php Free Online Real Estate Investing Videos 1 http://www.reiclub.com/realestateinvestingvideos.php Listing Sites use the following sites to list your properties Connectedinvestors.com Freerealestatenetworking.ning.com Invesdoor.com Equitypropertydeals.com Postlets.com Sellmyhousefast.org Myhousedeals.com Postmyadvert.com

47 Craigslist.org Backpage.com The following is a fee based site, but the fee is low. Sellpoint.com

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49 REAL ESTATE INVESTOR TRAINING SECTION TWO - WHOLESALING Introduction to Section Two - Wholesaling With this section please read the following sections in order: 1. Wholesaling 2. Investor Profile 3. Discussion 4. Agents and Properties 5. Contracts The Discussion is how to fill out the Lead Sheet and Investor Profile.

50 WHOLESALING Simply put, wholesaling is buying a home at a discount and then selling it at a profit, most likely to other investors. This section will give you the information you need to successfully and profitably find, inspect, evaluate, market and sell a wholesale property. Secondary objectives include contacting real estate agents, what to say to them and how to get them onto your team; how to write contracts and understanding the closing process. We will also take a look at different types of financing. We will look at these areas in the following order. WHOLESALING How to Find a Wholesale Home How to Conduct an Inspection Evaluating a Property (for Wholesaling) Marketing to Buyers and Sellers (Additional techniques) Real Estate Agents How to Write Contracts Understanding the Close Financing

51 I know that seems like a lot to learn and it is, but you probably already know more than you think you do. AN OVERVIEW OF WHOLESALING Wholesaling has been popular with savvy investors for a very long time, but it has really taken off and been adopted by many more investors since the Market Crisis of 2008. There is a specific reason for this: foreclosures skyrocketed and banks had to dispose of properties quickly. Banks needed to dispose of properties partially for regulatory reasons, but also because every foreclosed home was a debit on their balance sheet and the amount of money they could legally borrow or receive from the Federal Reserve is limited by their net assets as reported on their balance sheet. To quickly dispose of their properties, many banks put their foreclosed home portfolio up for sale at prices equaling the value of the mortgage remaining on a home. Investors realized this was a golden opportunity and quickly stepped in to help the banks (and line their own pockets with cash). Cash buyers (because banks selling REOs (their foreclosed homes) (REO = Real Estate Owned) only sell to cash buyers) were able to buy a home for just the amount remaining on the mortgage. This could vary widely with many newer homes having a high mortgage remaining, but there were nearly as many with low balances the recession was an equal opportunity recession everyone got hit.

52 Investors could conceivably buy homes in some areas for as low as 10% of their market value. In parts of Ohio, upstate New York, Nevada and Arizona, homes that had cost hundreds of thousands of dollars could now be bought for as low as a few thousand dollars the amount remaining on the mortgage. These investors then turned around, upped the price of the home by 10, 20 or 30 thousand dollars, or more, and still quickly sold the home. This could only happen for investors who had boatloads of cash; cash is truly king. Of course, into this market another market arose; the hard money lender and the transactional funding strategy. Hard money is money loaned to an individual often by another individual at high interest rates for short periods of time. Interest rates were often 12%, 15% or even 18% with typical terms of the loan for a commercial property of 3 to 5 years. Residential hard money loans were typically 1 to 3 years. But this didn t always work for the investor who needed cash in 72 hours (for example) and only needed it long enough to close a deal. In steps the transactional funding model. Transactional funding is money loaned to an investor to buy a home. Often, they only need the money for 24 hours. In order to stay clear of usury laws, cash heavy lenders charged points rather than interest on the loans they made. One point is $1,000 per $100,000 loaned. Usury is a law prohibiting extreme interest rates. If the lender loaned their money out for just 1% interest but the loan was just for 1 day 24 hours the annual interest rate would be 365%,

53 which would clearly be breaking the usury laws if anyone chose to enforce them. To avoid this potential conflict with usury, the lenders charged 1 to 3 points on their loans, often collected only when the deal closed (if it closed) and often collected from the buyer. The investor had the best of all worlds. He or she was able to buy a property using no cash of their own except for the deposit, sell the property and have the buyer pay for the costs associated with the closing (This is called a net closing). The investor saw only profit. Transactional funding lenders also made off very well. Buyers also did well they purchased a decent home for a price they could afford - and perhaps it was the banks that fared the worst. That is a brief overview of wholesaling. Now it s your turn. The industry began slowing in 2011 but it is still a great time to buy (and sell) real estate. For wholesalers, an increase in national housing starts and local home prices indicate the party is very quickly coming to an end, if not already over in some places. Good deals may still be found in high cost states such as California, New York and Massachusetts, but they as of 2012 are already rare and will only become rarer in the days and years ahead, barring another recession or even, possibly, a depression. HOW TO FIND A WHOLESALE HOME The techniques discussed in Section 1 Finder s Fees remain valid and still must be the primary sources you use to locate homes. Look again at Craigslist and place an ad there once a week. It should say something like I buy homes cash. Close today and then your phone number

54 (cell phone or business number). Thursdays and Fridays seem to be the best days to place real estate ads on Craigslist or Backpage. (Don t ask me why, I don t know, but several studies substantiate this.) You should also be upping the number of bandit signs you put out in the area you want to operate in. The bandit signs should say the same as your Craigslist ad. These two sources alone should bring in a large percentage of your homes. Also contact the other investors in your area; they may have homes you can buy and then sell for a profit or as with the Finder s Fee method you can sell the home for them for a percentage of the sale. Concentrate on the members of your local real estate investors association, they will provide many leads, homes and advice as you continue your career as a real estate investor. Your best source may remain the HUD site. Here you may find many homes that need more work than an investor may want to consider, but you will also find many homes that will work for you. If you can t find homes on the HUD site in your area, there is no reason you can t go out of state (on the HUD site) and buy and sell homes in other states using virtual methods. You attract buyers with Craigslist ads and work the deal the same way you would as with the Finder s Fee method. HOW TO CONDUCT AN INSPECTION Inspecting a property is actually one of the easier things you will do in wholesaling. First, fill out the Lead Sheet on each home. Next, make an appointment to visit the home. Be sure to take a pad of paper with you and take notes, (or take notes on an electronic device) you will also need a

55 camera or your phone to take photos. While there, look for any obvious defects, check the roof, is it sagging? Do shingles need replacing? Take photos of every defect you find. Look at the siding and paint, does it need repair or repainting? Inside, check door and window seams, paint and paneling on the interior walls and flush the toilet and run the shower for a second or two. Look for stains on the ceilings. They could be indicative of water leaking from the roof. Are the appliances in the kitchen present; if so do they appear to be in working order or do they need to be repaired or replaced? Turn the faucets on are they working? Are the kitchen cabinets in place? Turn on the lights in each room, do they work? In the basement look at the foundation. Are there leaks or stains? Is there water on the floor? How is the home heated/cooled? Is the furnace and/or ac unit in working order? Is there are a water heater present and if so, does it appear to be in working order? If you have reviewed all these areas you now make a guesstimate of what the costs of repair will be. I compute costs in $5,000 blocks. If I find just a few things are wrong, I say the home needs $5,000 worth of repairs or less. If there are a few more things wrong I add another $5,000 to the cost of repairs. A few more and I add another $5,000. If the house is perfect I say it is in move-in condition, or of it just needs a splash of paint on a wall stain or a new carpet in a room or two I say the home is in near move-in condition. Use your own best judgment to assess repairs. If you really want to go the extra step, hire a contractor to inspect the house and provide you with a written estimate of repairs.

56 Always provide the level of repairs when you speak with a potential buyer and always list the repairs required on the contract when you sell the home. (You do this as an addendum to the contract). That way a buyer can t come back to you and demand recourse because you failed to mention an obvious defect. Your primary source of buyers will be other investors. Most buyers will have a level of repair they are comfortable with. Only offer them homes in their comfort range. Some buyers will have little or no interest in the cost of repairs; they may want to do a full rehab or take the property down to rebuild another structure in its place. Allow the buyer to guide your search for homes to sell to them. I also post the photos of the repairs required online and then direct my potential buyers to the photos. That way they can see for themselves what needs to be done and they can make their own assessment as to the costs of repairs. EVALUATING A PROPERTY Evaluating a property for wholesaling purposes is a little different and more involved than it is for a Finder s Fee home. With a Finder s Fee home you simply were looking for the ARV and the market value or comps. Your goal will still be to establish these figures, but because you will be buying and then selling the home in your own name (even if you control it for just a few hours) you want to get a more precise idea of the costs and profit potential of the home.

57 Your investor will want a certain discount on the homes they buy from you. This could be 15%, 20%, 30% or even 50% or more off the market value. And this price must include the cost of repairs plus your profit. It s easier to understand this with an example. Let s say you found a home and you have run the comps and estimate the ARV at $100,000. Let s also say that you have inspected the property and, using our method above, estimate repairs at $20,000. If your buyer will only buy a home at 30% off market value = $70,000 then you need to subtract the cost of repairs from this figure - $70,000 and that will be the price at which you sell the home to the buyer. And this still needs to include your profit. If the ARV is $100,000 and the buyer wants to buy at no more than 70%, then your current price for the home is now $70,000. The next step is to subtract the repairs. If you are doing a Fix and Flip, you will be conducting the repairs, but with wholesaling, your buyer will be doing the repair work. Because you want your buyer to keep buying homes from you, you will inform them of all repairs you know about, provide the photos of the repairs and then subtract the cost of the repairs from the sale price. Your $70,000 sale price has now just dropped to $50,000. You now subtract your proposed profit margin let s say you want to make at least $10,000 and that s the maximum price you can buy the home at. Anything over that and you re cutting into your profit or losing money. So for your $50,000 home (with an ARV of $100,000) you can only buy the home for $40,000 or less. (40% of ARV)

58 Now you see how difficult it may be to find a home that works with all these conditions but they are out there, and in some places, they remain just as plentiful as they were during the 2008-2011 housing crash. MARKETING TO BUYERS AND SELLERS Building Your Buyers List As a wholesaler, in order to sell your homes quickly, you will need to have buyers lined up BEFORE you buy your first home. One of the best and easiest ways to do this is through Craigslist. It also happens to be free. =) Pick a day of the week - Thursday or Fridays are usually best and place your ad once a week on the same day. Do this every week and stop only when you have built up a significant number of buyers or you feel you have the most you can handle with quality. Place your ad for your city, or the nearest city available. Your ad should say something like Handyman Special 3/2 available call xxx-xxx-xxx Of course, fill in the 'x's with your phone number or the 800 number of your business or service.

59 Another ad is Wholesale Houses! Cheap xxx-xxx-xxxx Anything similar should be just as effective. Use the same ads on Bandit signs and place them wherever you do business. If you want to do business in a distant city, put an ad on Craigslist to hire someone to place bandit signs offering to pay them $25 or $50 to put up some bandit signs. To confirm they have put up the bandit signs, have them take a photo of each bandit sign they put up in both a close-up - so you can see what is written - and a wide shot so you can see were the sign is. Also, place the same ad on Craigslist as you did with your own city. Get a bunch of bandit signs - 25 to 50, write your ad on them, put your 800 number on it and then mail them to the person who will be putting up your signs. Use yellow bandit signs and write on them with a black sharpie. Whenever someone calls about a sign use the following script. Freebanditsigns.com is a good place to get bandit signs. (Fill out the Investor Profile as you go along.) Hi, thanks for calling. Before we continue can I get your cell number so I can call you right back in case we get dropped?

60 Thanks. And your name? Ok, (use their name) Could I also get your email so I can send you details? (Do not say anymore than this because you don't currently have a home, or if you do, you may not have a home that meets their criteria) Ok, great (or whatever you would say) Well, I'm out of inventory right now (If you are or if you have something that meets the criteria, then describe your property and then continue) but I have property coming in all the time. If I can get some basic information from you I will give you a call (or send an email if you don't like calling) when I get something that meets your requirements. Are you looking for residential or commercial? (If residential, continue with next question to end. If commercial skip next question only) What kind of property are you interested in? 2/1, 3/2, 4/2? (This refers to the number of beds and baths, the first number is generally considered to be the number of bedrooms) And what kind of neighborhood are you looking to buy in?

61 Do you have a specific price range? 50-150? 150-200, 250-300? 300-500? 500-1 million? (They will probably stop you before you go through this and tell you what price range they are looking for). Are you looking for a rehab or something in move-in or near move-in condition? What is your price range for repairs? If commercial ask the next 2 questions, skip if they want residential: And what are you looking for in an occupancy rate? And what kind of cap rate do you prefer? Finish with: Ok, (use their name), when I have something that comes in that meets your requirements, I will notify you promptly. (And that's all) Note: Commercial property is anything that has 5 or more units, regardless of whether they are business units, residential units or a mix. Of course, a commercial property also includes any real estate used primarily for nonresidential business purposes. A residential property is anything that has 1 to 4 housing units.

62 Cap Rate Where residential value is determined by condition of the property and by comparing the sales price of recent sales of nearby properties of similar style and size (the "comps"), commercial values are based on the cap rate, (primarily). The cap rate is determined by taking the net income of the commercial real estate and dividing it by the asking price. In today's world, anything above 8% is good and may be something you want to look at further. Anything below 8% may be something you want to stay away from unless you have a specific plan in mind for the property. I still don't look at anything below 10%, but the cut-off figure is up to you if you're buying it for yourself or up to your buyer if you're looking for a property to sell to them. Regardless of who you are buying for, always check the crime map to assess the level of crime in the neighborhood. Always provide this figure to your buyer although you can phrase it in a more palatable way. Go to http://www.mylocalcrime.com and type in the address of the property you are considering. That will bring up a map of recent local criminal activity. A high crime rate is not necessarily a "no-go" factor for a commercial property. If a warehouse you can always put up fences and hire extra security. If a retail facility, you can

63 always emplace extra security and provide shuttle service from distant parking areas to your retail center. An office building in a high crime area won't work regardless of what you do, (unless you buy the whole high crime area, tear it all down and rebuild). (If you want to do this, ask me, I've written an article about this). For an apartment or condo complex, one way to reduce the crime rate is to offer 50% off or even free leases to police officers and firemen. If the cap rate is too low, that's a negotiating point and you may be able to get the seller to reduce the price to a value that makes sense for you. When you have the Investor Profile sheet filled out for your buyer, your next move is to start looking for property that meets their criteria.

64 FINDING SELLERS HUDhomestore, bandit signs and Craigslist ads will still be important for you to use to obtain sellers, but you will also need other methods to keep your sales funnel full. Networking Networking is nothing more than meeting people and talking to them. Join local groups, the first of which you should join is, of course, your local real estate investors association. Also look into such groups as the PTA, (yes, really), The Elks, Knights of Pythias, Knights of Columbus, Rotary, VFW and American Legion. You never know where you will find potential leads. Once at a meeting, talk it up and hand out your business cards. Let people know you are a real estate investor and that you have discount homes for sale and that you are looking for discount homes to buy. Business Cards Hand these out and leave them everywhere you can. You may want to set a goal of how many cards to hand out each day; if you do, stick with it religiously. As you hand out cards, give a little background about what you are doing and why you are handing out your card to a perfect stranger. They may want to buy a house from you, know someone looking to buy or have a home to sell or know someone who has a discount home for sale.

65 Classified Ads Your local community paper will have classified ads. Look for the real estate section and place an ad using the same wording on your bandit signs. Online Classified Ads Craigslist, Backpage, etc. Run a search and find out how many sites will allow you to place a free classified real estate ad. Social Media I m going to bunch Facebook, Twitter, tumblr, YouTube et al all together in this category. Most of these sites will let you buy an ad and with YouTube you can also create a video or an infomercial about your business. You may not get many hits from a specific social media site, but if you do, they tend to be more highly motivated than other sources. Inline Ads Inline ads are what I call the signature at the bottom of your email. You will need to review your email setting on how to change your signature, but this is something you can use to promote your business. Online Groups There are many online real estate groups out there. Join them and get active; these could be a very good source of leads for you, both for sellers and buyers. Linkedin.com is a good site to find groups that suit your interest. You can

66 also find good real estate groups on Yahoo. Do a search for other groups and you will almost certainly find several you can join. Flyers and Door Hangers Flyers are what you hand out or post on windows or doors of local shops or restaurants and door hangers are a printed medium hung on the doorknobs of homes. Contact your local printer for details. Mailers You may have received a mailer. These can either be a single postcard or letter or you can have your ad packaged in a group. Again, contact your local printer for details or research these sources online. Click2mail.com is a postcard mailing service that will do a lot of the work in getting your information out to potential buyers or sellers. Mobile Marketing and Apps There s an app for that! Yes there is, or if there isn t, you can have one made. Apps and mobile marketing may be the wave of the future. We are right at the beginning of this form of marketing right now, and my guess is that it will grow significantly in the months and years ahead. How you will use this medium I will have to leave up to you because this avenue is still too new for anyone to know exactly what is or what isn t effective. You will need to find a mobile marketing specialist or service and ask them what they offer and how what they have may help you with your business.

67 PR This is one of my favorites because it has never failed me. And it s free. (Other than the initial cost of the mailing) I send out press releases to local newspapers, radio stations, cable services and television stations. Every time I have done so, someone has always called me to set up an interview. Try it and see if it works for you. Big Media I m going to make another group of sources. This consists of radio and TV ads, infomercials, magazine and newspaper ads and mass mailings. You may want to wait until you have a good cash flow coming in from your business before you want to try this because it is capital intensive, or if you have a lot of cash on hand, you can use this method right away. Create a Class Once you have some sales and experience under your belt, you could create a class, seminar or talk. Go to your local community college, tech school or high school and offer to talk about your experience as a real estate investor. If you have a lot of experience, create a class offering your insights and the wisdom from your experience worked for me (you re reading this right?) Other I once read that there was over a hundred different means of marketing a real estate business, if so, I sure don t know

68 what they all are, nor do I use them, the above work for me and I find it is pretty much all I need. SUMMARY Wholesaling has the potential to make you a lot of money. With wholesaling you find a home at a discount, contract to buy it, and then either sell it or assign it to a buyer. We ll go over this process in more detail in the next section. Wholesaling carries more risk than collecting Finder s Fees but the potential rewards (money in the bank) are also much higher. The marketing process is the means you use to find both sellers and buyers. How effectively you use marketing multiplied by the quantity of your marketing is what determines your success in this business or any business.

69 INVESTOR PROFILE SHEET Real Estate Investor Training FIRST NAME LAST NAME ADDRESS CITY STATE ZIP OFFICE PHONE HOME PHONE CELL PHONE FAX EMAIL ABOUT YOUR INVESTOR Would you consider yourself - Beginner (3 years or less) Intermediate (4-10 yrs) Advanced (10+ yrs) WHAT AREA OF INVESTING INTERESTS YOU THE MOST? Wholesale Buying and Wholesale Selling Wholesale Buying and Retail Selling Buy and Sell Owner Finance Assigning Contracts Buy, Rent & Hold Other

70 WHAT PERCENTAGE UNDER FAIR MARKET VALUE DO YOU LIKE TO BUY AT? WHAT AREA DO YOU BUY PROPERTY IN? WHAT AREAS INTEREST YOU THE MOST? LOW INCOME AREAS WORKING CLASS NEIGHBORHOODS MIDDLE CLASS AREAS HIGH-END HOMES PRICE RANGE WHAT PROPERTIES ARE YOU INTERESTED IN? 1 FAMILY DUPLEX 2 4 UNIT COMMERCIAL DO YOU CURRENTLY OWN PROPERTY? HOW OFTEN DO YOU INVEST? DO YOU PLAN TO INVEST IN THE NEXT 30 60 90 DAYS? CAN YOU CLOSE IN 5 DAYS? 10 DAYS? ARE YOU OPEN TO PARTNERSHIPS? NOTES

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72 Filling Out the Lead Sheet and Investor Profile Lead Sheet Filling out the Lead Sheet is pretty straight-forward. Fill out the seller contact info, address of the property and how you heard about this property. Next you describe the property filling in such details as number of beds and baths, square footage of the home, construction type whether it is frame, brick or block, and then describe the repairs needed. Later, you will estimate the cost of repairs and put that figure here as well. The trickiest question to ask may be the why? Why are you moving? or Why are you selling? You need this information in order to gauge the motivation level of the seller. If they are highly motivated to sell, they may be a party you can work with, if they are not highly motivated to sell, you still may be able to buy the property, but sometimes it may be more of a hassle than you want to go through. Taxes due and liens are important to know. If there are any back taxes due or if there are any liens against the property, the property cannot be legally bought or sold without resolving these issues first.

73 You may be able to resolve these issues in the process of selling the property to your buyer. If so, you should almost never sell the property to an owner-occupant but only to an investor. Investors are usually familiar with these situations and know how to handle them, but a homeowner, family or young couple looking to move into their first home may have no idea how to handle these issues and feel you are trying to do something illegal or unethical. Either fix these issues yourself or only sell a home with taxes due or liens to another investor. And always provide all the detail you can to the buyer about these issues. The loan balance is how you gain leverage. If low, you may be able to negotiate the property purchase for a lower price. If the balance is high, you may be able to extend the terms or have the seller take back some of the financing seller financing. You achieve this leverage with the next question; Will you take what is owed? If they are highly motivated to sell, this answer will often be Yes, but if they are not highly motivated you may hear No s more often than you hear Yes s. Taxes and payments. The next two questions deal with payments and taxes. You want to know if the home is current on its taxes and payments. If not, these must be fixed first. Taxes is a bit redundant to ask again, since you asked this question earlier, so feel free to skip it if you like, but the purpose it is here to ask again is to provide a check against the first time you asked the question. You would be surprised at how often someone will remember they have a recent tax payment due or a tax payment coming due soon

74 after they have been talking to you for a while about their home. Asking price is straight-forward. Many real estate guru s and trainers may tell you to try to talk this price down by negging the property or by complaining about what a bad condition the property is in. To me, that s just petty. Don t do it. You can get a good deal with everyone feeling good without saying their property is a dog. If it is, they know it and they don t need you to remind them. If it isn t, you simply want to negotiate from a position of strength and putting the property down is not a position of strength it will often put the owner on the defensive. In the event you meet a seller who feels their property is in great condition and their asking price indicates this but the property really is in terrible shape or simply not worth the price they want for it, go ahead and tell them about the comps. The house down the street sold last week for xxx dollars. This house here sold for xx dollars. The house on the next block sold for xxxx dollars. This house is worth about xxx dollars according to these sales and in order to make a profit, I have to offer xxx. If you say something like that, you have educated the seller about recent sales prices without talking down to them and you ve also provided a way for them to negotiate with you for a good price for you both I have to offer xxx. The next question in bold is the magic question. Ask it just as it is written always. If we (or I) pay cash, close quickly and take the property (or home) in it s as-is condition, what is the least you will take?

75 This gets the seller thinking you can close quickly and put cash in their hand quickly money in hand is always a great motivator, Cash is king. I know of some investors who will take out their checkbook at this point, fill in a figure (but not sign the check) and then hand the check to the seller and ask Will this work for you? I ve heard this works about a third of the time for an experienced investor which is pretty good, especially since the price the write on the check is often far less than the seller is asking for a check in hand really does make a big difference. So what do you do if you do this and the seller says Ok? Take out your state approved purchase and sale agreement and begin filling it in. So what do you do with the check? You have two options, one is to sign it and let the homeowner cash it not suggested or two is to tell the seller that you will sign and date the check upon closing. (You will actually be writing another check to the title agency but it s the same thing). A check in hand increases your leverage with the seller and shows them you mean business. And a check is a de facto indication that they have accepted your offer even if they change their mind in the next few days. Should another investor come in and offer them more money, you can always tell the seller you already bought the property and you are just waiting for the paperwork to clear might work or if it doesn t, tell them you will void the check. And then wait for their response. They may say OK and

76 you get the property or they may say Go ahead and void the check. If you don t get the property, don t despair, they are still a lot more around. Phone Voice Many years ago, when 1-800-Flowers was just getting started (and before I got into real estate), I was a manager there. I used to say to my associates to always smile when they were speaking on the phone because the other person can hear you smile. I am sure the associates thought I was a little crazy, but when they tried it, they found it was true, the other person related to them better, was more engaged with the process and often purchased a little higher of an order then they were originally intent upon buying. Smiling on the phone works, try it. Investor Profile The Investor Profile sheet is also pretty straight-forward. Just ask the questions on the sheet getting all the information you can about your investor. Your investors are the people who you will be selling the homes you find to and you don t want to waste your time or theirs by offering something that doesn t meet their criteria. As you talk to your investors, you will find that some are more interested in one thing while others are more interested in something else and neither is indicated in the Investor Profile. Just go ahead and write in whatever notes

77 and comments you need to find the properties that investor wants from you.

78 Agents and Properties This section includes a discussion of agents (real estate agents and realtors), properties, contracts and assigning contracts. This document will include agents, properties and an overview of information regarding the laws concerning real estate investing. Agents The world of real estate agents and real estate investors are two distinct worlds with very little overlap. Real estate agents are licensed professionals working under state guidelines representing individuals who have property for sale. Because of this, they must maintain high legal and ethical standards in order to meet their client s needs professionally and effectively. One of the most successful of all real estate agents is Barbara Corcoran from the TV reality show Shark Tank. Successful investors include Donald Trump, Ted Turner and McDonald s. I include McDonald s because part of their business (and a very big part of their business) is to own the real estate they build their restaurants on. In a sense, McDonald s is a real estate development business on which they take raw real estate and build a franchised fast food restaurant. Real estate investors have an entirely different focus than real estate agents. Agents must meet their guidelines and

79 licensing requirements for their state and must keep their licenses current. Investors are professionals working for themselves and they thrive or starve by the amount of profit they derive from their investing activities. Real estate is and has been a factor in approximately 70% of all millionaires and billionaires wealth. Today, almost every wealthy individual has some degree of their portfolio invested in some form of a real estate investment. You will need a real estate agent on your team. This doesn t mean you employ them and provide them with a check every two weeks. This means you consult with them on a periodic basis to pick their brain, ask their advice and determine what properties they may be representing at that time that meet your purchase criteria. Often they won t have any themselves, but real estate agents to be successful have a very wide network and they may know of someone who has property available that will be exactly what you are looking for. Make an appointment to interview several real estate agents in your area. Offer to meet them for lunch if they have the time and of course, mention you will be paying for the meal. Tell them you are a beginning real estate investor and you were hoping to ask them for advice. That will usually work. Most people like to be recognized for their achievements and when you approach people in this manner even potential competitors oftentimes they will be happy to meet with you and provide advice in the field. You are looking for an agent you can work with. That will vary based on the type of personality you have and on how

80 well you are able to recognize those areas in which you need help and in which the agent will be a complement to you. Agents often have back-pocket listings. These are private listing that are not advertised and which they provide only to those people they trust. You want to be one of these people. Maybe the prices will be outside your investment range many times, but if you are clear about the type, size, condition, area and price of home you are looking for, your friendly agent will be referring more and more back-pocket listings to you. Do not hesitate to ask about these listing during your first meeting. You need to know if the agent is going to be someone you will be able to work with and one of the means to determine this is to gauge their willingness to talk with you about their private listings. You don t need to know the details about any listing and make sure the agent knows this you just need to know if they have any and if they would possibly be willing at some time in the future to refer any such listings to you if the property meets your criteria. When you have found an agent or two (or three) you can work with, I suggest taking them out to lunch on a periodic basis. Meet them every three or four weeks or so. You don t always need to talk business 100% of the time. Get to know then personally, ask about their families and become friends with them but only do this if you can be sincere. If not, don t even bother. If you re not the personable type, keep your meetings on a professional level.

81 When you call an agent about a property and you don t know the agent, be friendly. It may seem odd to you that I am mentioning this, but my experience has been that if it isn t mentioned, there will be someone out there who won t do it. You can begin with small talk but keep it short. Next you will ask about the property and simply fill in your lead sheet as you go along. Always conclude by asking if the agent has other similar properties available and to keep you in mind if they should have any property coming up which meets your criteria and then reiterate or provide your criteria and contact information. Properties As a wholesaler, you are looking for properties you can purchase at a wholesale price and then turn around and sell them at a wholesale price. You do this because you will primarily be selling to other investors who will also need to make a profit from their sale of the property. We have gone over evaluating a property for wholesale purchases. This process will assess whether a property you are looking at makes sense for you to buy. If so, buy it. Always have in mind the thought that when you find a property that even comes close to what you want you will buy it unless With this thought in mind, you will be buying property at a pace that will make a decent profit for you and will help

82 you to overcome procrastination and unease about jumping into investing. The first step is always the hardest. We have the systems in place that will (hopefully) prevent you from making such a disastrous deal that you lose your shirt or are ruined, but, as with any business, such possibilities cannot be entirely eliminated. Most investors invest in only one type of property and specialize in properties if that type. Other investors are more generalist in nature. Usually, if you are just starting out, you begin with specializing in a certain type of property, often within a certain price range and condition and usually in certain types of neighborhoods. Specializing in this manner will, over time, make you an expert in that type of property and your business will flourish (barring economic distress, etc). Only after time would I suggest you begin looking into other areas and types of real estate. And there are many types and areas you could look into commercial property, storage units, medical, $100,000 homes, $300,000 homes $500,000 homes, million dollar homes etc. Frank McKinney specializes in building and selling homes ranging from 10 million dollars and up. There are several investor groups you could join which specialize in buying and selling homes only in the $300,000 to $500,000 range. Others specialize in small, starter homes, while still other investors specialize in buying and selling 3 bedroom, 2 bath homes.

83 The most popular home to sell is the 3 or 4 bed and 2, 2 ½ or 3 bath home with plenty of living space, garage and yard. These are very popular with the middle income class, young professionals building a family and others settling into family life and new communities and jobs. These homes can be found on the HUD site, but are also available as estate sales (when someone dies), when an older couple with grown children is looking to sell their family home to move into something smaller or as a result of some form of economic distress. When you locate a home that is for sale as a result of some form of economic distress, I don t feel as if I am robbing the homeowner or that I am taking advantage of them or preying on people who have fallen on hard times. I know many will tell you and many believe this is so. I disagree. The way I see it is that I am helping them to attain a solution that would only be a disaster if I hadn t stepped in to help. I see it like this: Maybe they are losing their home. Admittedly, they may be angry, confused and stressed out. I m certain I would be if I was in a similar situation. But I would also realize that if I don t sell my home, my credit will be ruined, the debt on the house will be hanging over my head, the headaches won t go away and the stress will just continue even if the bank reclaims the house. I would know that I need to sell the house for the best deal I can get so I can make this headache go away. That s where I come in and that s where I want you to come in. You are kind, you are friendly, you are full of optimism and

84 enthusiasm, you are a professional and you can present a solution the owner can live with. You work with the seller, not against them. You work to find a solution that works for you both. You need to make a profit but you also want to take into consideration the situation that the seller is in. Sometimes you can help them to part with their home by offering something other than money. Maybe you have an agreement with another party that can help with college tuition for their children, maybe you know someone who is an attorney who can help the family, maybe you can put them in contact with a good financial or tax advisor, maybe all they need is someone they can talk to. I knew someone who would throw in a free one-time time share at a resort in the Caribbean. I also knew several people who would throw in a car. I heard of someone offering to pay for piano lessons for one of the sellers children and another who offered to help locate a school for an autistic child. Be creative. There are many ways to work a deal and you are limited only by your imagination (and the bounds of the law, of course). Which brings me to the next point. The law. The law on real estate investing varies from state to state. Some states allow you to assign contracts freely while others have very strict guidelines on what constitutes an assignment. Some states allow seller financing while others do not. Do not ask the real estate agent or any real estate agent on what laws govern real estate investing. Trust me, they won t know unless they are a real estate investor themselves and invest on a regular basis. The only advice you will receive

85 from a real estate agent about real estate investing is bad advice. Only ask other real estate investors about the laws in your state regarding real estate investing. Also search your local library or surf the internet. Most states have some information online about their rules and guidelines regarding real estate, although they often have little to no online data about real estate investing. Your best source of the laws about real estate investing will most likely be other real estate investors, but an attorney skilled in the area of real estate investing will also be able to provide competent advice. To find these attorneys, either browse online or contact your local title companies and ask which of the attorneys close on properties the most. You may or may not get an answer, but if you do, that may be a good lead for you to follow.

86 Contracts A contract or an agreement to buy or sell real estate is a legally binding document between two or more parties to buy and sell real estate. This agreement specifies the property to be bought and sold and specifies the conditions under which title of the said property will be transferred upon execution of the contract. Most states have extensive laws governing the purchase and sale of real estate and it is never a good idea to attempt the process alone. You will need a competent attorney and a title company to manage the sale. You may also need representation in the form of a real estate agent whether they are acting as a seller s agent or a buyer s agent. Other professionals may be required depending on the laws of the state, the property in question or the conditions or circumstances of the sale. The Wholesale Transaction A wholesale transaction is different than a simple purchase and sale. A wholesale transaction consists of three not two steps or parts. In a regular real estate purchase, a seller must sell the property part 1. The buyer must buy part 2. In a

87 wholesale transaction, there is an additional part the endbuyer. This process is known as an A-B-C transaction. You, as a wholesale investor, are the B in the above process. You buy the property from A, and then around and sell it to C. Because of this, the wholesale transaction is a bit more involved than a straight A to B purchase, but not markedly so. B to C It may be easier to review the B to C transaction first. As the wholesale investor, you are the B. Your objective is to find a property from a seller A at a steep discount, so you can mark it up a bit and sell it to a buyer C at a profit. When you buy the property, you put your name in the name field of the purchase and sale agreement at least you do with a simple A to B transaction. You don t do this with a wholesale transaction. With a wholesale purchase, you always write in your name (or that of your company) plus and/or assigns And/or assigns gives you the legal right to sell the property to a third party. Although the price you sell the property to the third party ( C ) to will be the same price you paid for the property from A, you will also create a separate document specifying an assignment fee that you will assess to C.

88 How much you charge for the assignment fee is entirely up to you and your negotiating skills, the house or real estate in question, market conditions and whether or not C can make a reasonable profit from their eventual sale of the property. We have gone over how to value a property for resale to an investor. For a brief review, you want to sell the property to the investor at a low enough price that they can make decent profit from the sale. To do this, you need to find a property at a sharp discount from market value, which you determine by establishing the most recent comparable sale prices of homes in the area the comps. The investor will need to sell the property at perhaps 70% to 80% of market value in order to make a quick sale, but your investor will let you know what discount rate works for them. From your projected sale price to the investor, you must subtract your intended profit, and you subtract the estimated repair cost. Someone has to pay for the repairs before the property is sold and if you aren t doing the repairs your investor-buyer will have to. After you subtract these amount, you are left with the maximum value at which you can purchase a home. The average is about 30% to 40% of the market value, but it could be as low as 20% or even lower. On the contract, there is almost always some room for you to write in several conditions of the sale. Here you want to describe the repairs necessary and what you have observed or have not observed about the property. You also must indicate that the property is being purchased As-Is. When

89 you sell a property As-Is, the seller understands that there may be work required on the property before it can be sold. The buyer is also informed by this statement that there may be issues with the property that neither you nor the buyer have yet discovered. Although many real estate trainers will say that describing the repairs isn t a necessity if you have the As-Is statement included, ( This property is being sold As-Is. ), I always recommend that you describe, to the best of your ability, the repairs required. Although you do not generally indicate so on the contract, you may also want to tell your investor-buyer of your estimate of the cost of repairs. I recommend you do this for two reasons. The first is that it shows a level of professionalism that others may not and that will set you apart from other sellers the investor may work with. The second is that, in my opinion, it is more ethical to indicate your assessment of the property than to not mention them, even if you have verbally told your investor about them. By including them with the contract, you assure your buyer that you are taking the high road in your activities. By noting the repairs on the contract for sale, your buyer will notice and may come to you before going to other sellers in the future. Some contracts will have a section titled Defects, Warrants or something similar where it will say that the seller knows of no issues with the property and that there are no known liens or encumbrances against the property. Either cross this statement out or have your attorney draw up a new agreement where you can write is in the repairs required.

90 Net purchase A net purchase means the buyer is going to pay all closing costs. You will need to indicate this on the contract or the title company will automatically assume you will be paying closing costs and deduct those costs from your proceeds. Including a net purchase statement on a contract with an owner-occupant will almost certainly cause confusion and could cost you the sale; I don t recommend including this cost with an owner-occupant. Use the net purchase clause only when dealing with buyers who are investors they will understand what it means and commonly have no issue with it, (although they may claim they do, I usually refuse to remove this statement when working with an investor, but when I get the feeling that the statement will cost me the sale, I remove the statement and pay for closing costs myself). A net purchase statement can be as simple as Buyer to pay all closing costs. I recommend you keep it simple to avoid confusion or any potential obstacles to the sale. Inspections The only thing you may want to change here is the duration of the inspection period. Shorten it when you are selling, lengthen it when you are buying. Acceptance is usually the term for how long the buyer has to accept the contract before it becomes void. I have heard some investors say that 24 hours is the figure they use. I usually use 48 hours. Some will provide 3 or 4 days. 5 days in my opinion is excessive. Use your own best judgment, after a few sales, you ll get a feel for the right amount of time for you.

91 The A to B Contract The A to B Contract is the contract used when you are buying a property to flip. This isn t a special contract, it is just a description of how a contract is used. Generally, speaking there are very few changes between the B to C contract and the A to B contract. The only differences may be in the amount of time you allow yourself for the inspection, see above, and the net purchase clause. Usually the seller pays the closing costs and investors recognize this and will often pay the closing. When you are buying from a distressed homeowner, you may want to get the deal done as soon as possible. In order for this to happen, you may want to pay the closing costs yourself to buy the home, then have your investor-buyer pay the closing costs when you sell the home. Deposit The only thing you may want to change is the deposit. When you sell the home, you want to make sure you keep the deposit if the deal should fall through for any reason. When you are buying, you want to insert a clause that will give you your deposit back if the deal falls through for any reason. Earnest money deposit shall be returned to buyer upon non-performance of contract, is one phrase you can use to get your money if you are buying and something goes wrong that prohibits the purchase. Earnest money deposit shall not be returned except upon specific non-performance of seller, is a term you can use to keep the deposit if you are selling.

92 For all contracts, review them thoroughly with your attorney before signing on the dotted line. Taking the time to review a contract line by line will help avoid a lot of mistakes that many buyers and sellers can make when buying or selling a property. ASSIGNING A BANK-OWNED OR REO HOME It can t be done, is the first thing you ll hear from most people when you ask if it is okay to assign a bank owned property. The banks will certainly tell you this. You also can t do it with a HUD home. But, you can. You have partners of all kinds when you buy or sell a home. These partners include the bank, the seller, the mortgage company, the title company, the lawyers, accountants and attorneys, building or real estate inspectors, brokers, real estate agents and the person you sell the home to. You may have additional partners in your business or you may have partners other than those detailed above. Most investors will have a bit fewer partners than those described, but, you will have partners of one kind or another. The reason I m making such a point out of partners is that you will need a partner in order to assign a bank-owned or HUD home.

93 Assigning a property means to sell the home to another buyer when you buy the home. Generally this is accomplished through a two-step process. The first step is to write and/or assigns after your name in the original purchase and sale agreement. The second step is to write a separate assignment fee document describing the assignment fee amount and referencing the home mentioned in the purchase and sale. You can t do this with a bank-owned or HUD home. But you can add your partner s name after yours. When assigning a bank-owned (REO) or HUD home, leave enough space after your name on the real estate contract to write another name. Then, when you have a buyer for the home, call the bank or HUD and ask them if you can add your partner s name to the agreement, they will almost always say yes. What happens if they say no? Don t buy the property. If the bank or HUD says no, you can t add your partner s name to the contract, that means you are going to have to buy the home and hold it for a period of seasoning before you can sell it. Most often, you will need to keep title of the property for at least 90 days, although some states are now requiring 6 months to a year or more. If you can afford to hold a property that long, fine, but most investors don t want their capital tied up for that length of time. Another way of getting around this is to start either a trust to buy the property although the banks are now scrutinizing this method also or you can create a

94 partnership or LLC. For some reason, the trust structure is invoking a high level of scrutiny by the banks while the LLC or partnership seems to avoid this level of attention.

95 REAL ESTATE INVESTOR TRAINING SECTION THREE FIX AND FLIP Introduction to Section Three Fix and Flip With Fix and Flip, you will complete your training to be a real estate investor. This section is also the shortest section because you have learned nearly all you need to know to get started in this industry in the previous two sections. If you have any questions or are unsure of anything, please go back and reread that section and then implement it do it! The best and most effective means of figuring something out is to try it and make any necessary adjustments as you go along. I m very happy you have made it this far in your training and I know your success as a real estate investor is just around the corner. This section consists of just one unit Fix and Flip.

96 Real Estate Investor Training SECTION THREE FIX AND FLIP OVERVIEW The objective of this section is: 1. Find a property 2. Fix a property 3. Sell a property You have learned steps 1 and 3 in earlier sections of this training. The only step you need to learn is how to fix a property cost effectively so that you can sell it for the highest profit. First let s review steps one and three and then we ll build in step two. ONE Find a Property In section one you were introduced to several different methods of locating a property. These methods included online resources and sites, Craigslist, using bandit signs and flyers, handing out business cards and networking with other investors. Of course, you should be talking to everyone you meet including your children s teachers and soccer coach, the person at the Laundromat or grocery store, the cashier and

97 your pharmacist. Tell them what you are doing and ask them if they know anyone who is interested in either buying or selling a home, then hand them your business card. You shouldn t be afraid to talk with anyone about your business, if you are, you re in the wrong business. You should fell proud and have a sense of joy and excitement when you are working for yourself and if these attributes are missing, you are not doing what your spirit is longing to do. Find out what you love to do, what your passion is, do that and find a way to make money from doing it. If you do that, you will as someone once said Never have to work again. You ll still be working, but you ll consider more like getting paid to play or being paid to be on vacation rather than working for a living. Once you have found a property that you will fix and flip, you will need to inspect it, conduct a survey of the repairs required and obtain a professional estimate of the repair costs and then obtain a general contractor to make the repairs or do the repairs yourself. We will discuss all this in detail a bit later. For now, let s move on to the next step you have learned. STEP THREE Sell a Property One of the most effective means I have found to sell a home is Craigslist. I have never failed to find a buyer using Craigslist, but there are many other sources you may use including selling your home on ebay, posting it to real estate websites, contracting with an agent to sell it, posting bandit signs in the yard and at nearby intersections and

98 offering it to members of your local real estate investors club. If you are selling a property in a Fix and Flip, the process of selling it will be different than the process you learned in Section One of this training. In Section One, you sent Finder s Fee Agreement to potential buyers and provided the details of the home you had located to the buyers when you received a signed Finder s Fee Agreement back from them. With a Fix and Flip you are going to need to list the house for sale using any means described in the List a Property section. The purpose of this section is not so much to sell a house as it is to build a list of buyers who will want to buy homes from you over and over again in the future. Because this is so important, we will review this also. LIST A PROPERTY In the List a Property section, you were introduced to Craigslist, Backpage.com, real estate agents, Facebook, classified ads, groups and websites. Of course, you can also use mailers, flyers and other handouts, business cards, doorknockers, etc. With the rise of apps, you may be able to find someone to build an app that will post your homes for sale or that push your home for sale to mobile users. In all of this, you may realize that the primary objective of listing a property is not to sell the property, but to build a

99 list of buyers who may want to buy a home from you in the future. EVALUATING YOUR BUYERS When anyone calls you or contacts you about a property you have for sale, you are going to fill out an Investor Profile on each person. This is from Section Two. You want to find out what kind of property the buyer is interested in, if they are an investor or owner-occupant, the size of homes they are interested in ( 3 bedroom 2 bath homes sell best), the location they are interested in buying homes in, the price range they want, the amount of repairs they are comfortable with, other home details they require and how soon they can close on a sale. Cash buyers are going to be your cash cow your money machine so you are going to want to focus on them, without disenfranchising your other buyers. But if for some reason you have to make a choice, concentrate on your cash buyers. People who use cash can often close very quickly and will keep your cash flow in place. In the Wholesaling section, we also took a look at the neighborhood crime level. This could have a high impact on your ability to sell a home in any given area. Some buyers are only comfortable with very low rates of crime while others will find slightly elevated levels of crime acceptable. I suggested you type or paste the address of the home you are considering buying into the website mylocalcrime.com

100 before you buy the home in order to gauge the level of crime in the neighborhood. FIX AND FLIP Now that we have overviewed the basics of what you have learned so far, let s get into the essentials of the Fix and Flip process. OVERVIEW OF FIX AND FLIP To fix and flip a property means to find a property that needs some degree of repair, buy it or put in under your control (there are other ways of controlling a property without buying it but those are beyond the scope of this training), make the repairs and then sell the property. The training you have received so far has taught you the key tools you need to be successful at parts one and three of this process find and sell. In the Wholesaling section you also learned how to evaluate, interpret and negotiate contracts so that you have the advantage in any deal whether you are the buyer or seller. EVALUATING A PROPERTY Primarily, the basics of evaluating a property will be no different than what you have learned in the Wholesaling section with the following differences. Because you are going to be making the repairs yourself or you are going to be hiring a contractor to make the repairs for you, you want to have a detailed estimate of the repairs

101 required to sell the property for a family to move in at closing if they should so choose. In the Wholesaling section you were taught to make a gross cost estimate of the repairs required and to base your decisions on this estimate. That won t work when you are using a Fix and Flip strategy. First, take a look at the property estimating the cost according to the process as detailed in the Wholesaling section: If you have reviewed all these areas you now make a guesstimate of what the costs of repair will be. I compute costs in $5,000 blocks. If I find just a few things are wrong, I say the home needs $5,000 worth of repairs or less. If there are a few more things wrong I add another $5,000 to the cost of repairs. A few more and I add another $5,000. If the house is perfect I say it is in move-in condition, or of it just needs a splash of paint on a wall stain or a new carpet in a room or two I say the home is in near move-in condition. Use your own best judgment to assess repairs. With a Wholesaling strategy, that was all you needed in order to assess whether or not a property was up to the standards you need to sell the home quickly. In a Fix and Flip strategy, that is only your starting point. When you make that assessment of the cost of repairs, you now have a decision to make: Based on your guesstimate, is the house you are considering going to make you a profit after you complete the repairs, hold the home for a month or two (or three or four or more) making tax and whatever other payments may be required before you sell the home?

102 If your guess is it will, then you move forward on this home. If your guess is that it will not make you a profit, then pass on the home and move on to the next. When you have acquired the skills and experience in buying and selling homes, making repairs, effectively (and profitably) negotiating with contractors, buyers and sellers and have a couple years of experience doing this then you can adjust your decision template to include homes you would not have considered buying when you first started. But if you are first starting out and especially if you are doing this on your own or with someone else that has little or no experience in real estate investing or providing accurate repair and holding costs, then you are going to want to pass on any home that seems like it might not work for you. There may be real estate gurus that will tell you to say yes to every deal unless you find out some way or somehow that the deal won t work. That sounds like a high risk strategy to me and it is beyond my comfort level but you will need to do whatever fits within your own comfort zone. PUT THE PROPERTY UNDER CONTRACT When you have decided to move ahead on a property, the next step is to put the property under contract. We also discussed in Wholesaling how best to do this so that you are protected in your purchase of the property. Let s take a look at this again.

103 When you wrote a contract to buy a property, you want to include and/or assigns after your name. Banks and HUD won t permit you to do this, but private sellers will. This procedure allows you the opportunity to assign the home to another buyer. If you are working with HUD or a bank owned home, leave enough space after your name if possible to include another name. Then if you do find another buyer that wants to buy the home from you right away and at your price, go ahead and call the bank or HUD and ask them if it is okay to add your partner s name to the agreement as an additional buyer. Almost every bank will allow this as will HUD (at this writing). Then sign a separate assignment fee contract with your buyer and sell the home to them. INSPECT THE PROPERTY With the property under contract, the clock is ticking and you are going to want to move fast. The next step to do is to arrange an inspection of the home by a third party real estate inspector or appraiser, general contractor or builder. Make sure they understand that you need a detailed written estimate of the repairs required. Assure them you will not hold them to an exact figure, but let them know you need as accurate a figure as possible. MATERIALS AND SUPPLIES If you want to repair the home yourself, you will need the proper tools and equipment. This report does not go into

104 the tools and equipment you will need to be a general contractor or builder or even a do-it-yourself repair person. But you will need all the tools and hardware a builder will require. Making the repairs on your own will require a trip to your local hardware store, lumber yard or Lowe s. Take the estimate of repairs required that you obtained from the home inspection and purchase everything on the list. You may want to do this in stages to prevent a large outlay of money upfront and to prevent cluttering the work space around your project home. This will also reduce the potential for loss from thieves or passersby. HIRING A CONTRACTOR Most real estate investors utilizing the Fix and Flip strategy are builders first and real estate investors second. Being savvy business people they recognized opportunity when they saw it and realized that fixing and flipping property for a healthy profit could be something they could do. Other real estate investors use a different strategy. Often this group are real estate investors first and builders second. Although they also recognized the large profits that could be made from a fix and flip strategy, they don t possess the skill set to actually make the repairs that are required. So they outsource the work to competent builders or contractors. They trade making lesser of a profit for a skill they do not possess.

105 EVALUATING A CONTRACTOR OR BUILDER The best way to find a competent builder or contractor is simply to ask around of people who have had homes built, homes repaired, additions built or framing, siding or plumbing work done. Then consult with these people to ascertain who you can work with and who seems the most complete to you to complete the work required within the budget you have proposed on your estimate of repairs. Have the builder or contractor complete their own estimate of the cost of repairs necessary and compare their estimate to the earlier estimate you received. You will always get minor differences but if the differences seem major or are over a thousand or 2,000 dollars, you will want to question the contractor or builder for their reasoning behind the difference in prices unless their estimate is lower of course. Most times, the same contractor or builder completing the original estimate will be the builder or contractor you hire to make the repairs. MAKING THE REPAIRS The next step is to make the repairs. This may require anywhere from a few days or a few weeks or up to several months or more depending on the amount of repairs required. The specific details of what repairs will be needed on each house will vary from property to property depending on what needs to be done. Because of this, there is no way for this book to conclude how long repairs will take or what

106 the cost of those repairs will be. But there is one thing that is certain: you will feel a great sense of satisfaction when the repairs are completed, especially if you did all the work yourself. SELLING THE HOME When all the repairs have been made you are ready to sell the property. To sell the home, utilize all the steps you learned earlier. Contact all the buyers on your buyer s list. I usually email them 24 hours before I post the home for sale on websites or place bandit signs. Post bandit signs telling about the home for sale remember, hand written bandit signs work best tell the people in your network, offer the home to the people in your local real estate investors association, post or hand out flyers, send out emails and post notices to Twitter, Facebook, Instagram and other sites. WRITING THE CONTRACT OF SALE When you have found a buyer, you want to write a contract that protects you to the greatest degree possible, limiting your risk, while obligating your buyer to follow through on the transaction with as great as security as possible. Clauses you can use on the purchase and sale agreement when selling the home include as-is or home is sold asis, indicating that the buyer is creating a legal bind to purchase the property regardless of the condition of the property. Time is of the essence is usually a printed

107 portion of all modern agreements but check to be sure it is there, if not, write it in. State that the offer price as agreed is only for a limited amount of time and then specify the time 72 hours, 48 hours or even 24 hours. This places a degree of urgency upon the buyer and helps them to make a decision quickly. You also want to consider all the local, state and federal riders required. These may include lead-paint inspection, pest-free certification, airport warning, flood zone statement, et al. You may want to have your buyer initial next to each of these to indicate that the buyer understands these. Further, the process of initialing next to each of these riders affects the psychology of the buyer obligating their subconscious further into buying the property. You also want to limit the inspection period of the property. Often this is anywhere from 10 days to 2 weeks. With bank-owned or HUD homes, the original purchase and sale agreement will often state that no prior inspection is permitted, but upon you actually signing the document, or somewhere through the process, you usually receive a document from the bank or HUD that will include the period of time you are allowed to inspect the property usually 10 business days. When writing a contract to sell your home, you may want to reduce the inspection time to five days or even three days. I know of no study or research that indicates this improves the percentage of successful sales, it is simply a suggestion you can experiment with.

108 THE CLOSING The closing itself is usually a fairly straightforward process. Although often fraught with a greater level of stress for all parties, the actual procedure is almost entirely controlled by the lawyers and title companies representing the parties involved. You merely have to endure the process, sign where they tell you to sign and proceed from step A to the final step as instructed. CONGRATULATIONS With this, you have finally bought and sold your first home, you are now a real real estate investor and I am so proud Or, at the very least, you have completed this training, either way I am very happy for you and I hope to see you in the investors circle soon. Good luck and may all your deals be profitable. Timothy McKierney

109 Resources Videos Part 2 These are additional videos to use for training. You may view these at any time. How Do I Find Motivated Sellers? http://joecrump.com/qandavideo/qandavideo9.html Can You Really Buy Houses with Zero Down Payment and Bad Credit? http://joecrump.com/qandavideo/qandavideo14.html Tony Robbins The Power of Clarity and Purpose http://www.youtube.com/watch?v=on4lbznhhkq 4 Tips for Marketing to Motivated Sellers (Offline Marketing) http://www.reversewholesaling.com/video3.html 5 Common Mistakes New Investors Make http://www.reversewholesaling.com/video5.html

110 Getting Started Real Estate Investing Checklist http://reiclub.com/videos/real-estate-investing-checklist How Do I Clean My Credit? http://joecrump.com/qandavideo/qandavideo8.html I Need a Mentor, But Can t Afford Your Fee http://joecrump.com/qandavideo/qandavideo10.html How to Build a List of 200 to 400 Motivated Sellers in 3 Minutes http://joecrump.com/qandavideo/qandavideo19.html How to Create $10,000 Passive Monthly Income and Retire http://joecrump.com/qandavideo/qandavideo2.html How Can I Help Sellers Who Are? http://joecrump.com/qandavideo/qandavideo6.html Sellers Laugh at Me When I Make Zero Down Offers http://joecrump.com/qandavideo/qandavideo17.html

111 Life Gets In My Way How Do I Get My Business Going? http://joecrump.com/qandavideo/qandavideo4.html Where Is the Best Market to Invest? http://joecrump.com/qandavideo/qandavideo12.html Are Lease Options Legal in All States Including Texas? http://joecrump.com/qandavideo/qandavideo3.html How to Build a Massive, Effective, Profitable Buyers List http://joecrump.com/qandavideo/qandavideo18.html 7 Steps to Building Your Buyers List http://reversewholesaling.com/video2.html How to Find Cash Buyers for Your Real Estate Deals http://reiclub.com/videos/cashbuyers Does Your System Work in Canada and Other Countries? http://joecrump.com/qandavideo/qandavideo15.html

112 Quick Formula for Estimating Repairs on a Junker http://reiclub.com/videos/quick-formula-estimating-repairsjunker How to Perform a Basic Home Inspection http://reiclub.com/videos/homeinspections What Zero Down Structure Should I Use? http://joecrump.com/qandavideo/qandavideo5.html How Do You Do Creative Financing in a Boom Market? http://joecrump.com/qandavideo/qandavideo7.html How to Get Signed Contracts without Ever Talking to a Seller http://joecrump.com/qandavideo/qandavideo20.html Making Your Real Estate Offer as a Wholesale Buyer http://reiclub.com/videos/realestateoffers

113 Tips for Making Offers on Properties http://reiclub.com/videos/tips-for-making-offers-real-estateproperties Investor Checklist to Negotiate with Sellers http://reiclub.com/videos/sellernegotiations How to Find and Train Realtors to Sell Your Homes http://joecrump.com/qandavideo/qandavideo1.html Are You a Scam? http://joecrump.com/qandavideo/qandavideo16.html Real Estate Closing for Wholesale Property Deals http://reiclub.com/videos/realestateclosings What Kind of Business Structure Should I Use as a Real Estate Investor? http://joecrump.com/qandavideo/qandavideo11.html

114 How to Get a Life Like Mine http://joecrump.com/qandavideo/qandavideo21.html Try a Virtual Assistant Free for 40 Hours http://reiclub.com/videos/virtualassistant Setting Up Your Real Estate Investor Website http://reiclub.com/videos/realestateinvestorwebsites I m Having Problems Buying REOs, Can You Help? http://joecrump.com/qandavideo/qandavideo13.html 7 Keys to Hiring a Property Management Company http://reiclub.com/videos/keys-hiring-property-managementcompany Should Real Estate Investors Hire Property Managers? http://reiclub.com/videos/propertymanagement

115 Commercial Real Estate Introduction to Commercial Real Estate Investing http://www.youtube.com/watch?v=f0tgkrr4muq&feature=pla yer_embedded

116 Resources Books You may order any of these books at any time. You will need a PDF reader to read them. A popular PDF reader is Adobe. (Adobe.com) Please go to FindingFlippingFixing.com to order. Real Estate Investing: Tips, Myths and Realities Flipping Your Way to Financial Freedom Think and Grow Rich Success Secrets of Self-Made Millionaires Conquering Your Life Goals Automatic Reverse Marketing Systems about real estate marketing Flipping Fortune: Making Big Money Wholesaling Real Estate How to Buy a Wholesale Deal without Taking a Bath Mentor for Life Insider Secrets to Real Estate Wholesaling Getting Started with Wholesaling Real Estate Investing Simplified

117 Monster Wholesale Profit System FreedomSoft Outsourcing Guide creating a virtual real estate office 12 Issues to Discuss with Your Real Estate Partners The Property Manager Your Wealth Is In His Hands Quit Your J.O.B. in 19 Weeks or Less

118 Forms and Documents Real Estate Investor Training I have included all the forms and contracts I use on a day to day basis. I have also included a few bonus documents that help you out with some issues that come up from time to time. When you wanna be a rockstar, you need to be smarter and faster than your competition. Using the right forms and setting things up the right way, will make your life a lot easier and help your business run a lot smoother. I will be giving a quick summary of each document/form and then giving detailed instructions for each document in my instruction manual. Forms and contracts included: Affidavit & Memo You can use this document to record notice of your contract on a property with the county. The document will cloud the title and mean that the title company needs to contact you before the property can be bought or sold. The only time I use this is when I am the buyer with a seller that I don t trust or is trying to back out on a deal with me. When you need this document though, it is GREAT to have!!! Back to Back Closings This give an explanation of the back to back closings.

119 B-C Real Estate Purchase and Sale Sample Sample of a B-C closing agreement, modify as you need. Business Card a sample of a business card you can use Buyer Script What to say to potential buyers. California Info. California has some unique differences. We have a summary of how to do these REO deals in California plus a list of a couple escrow companies and an attorney familiar with these kind of transactions. Commission Agreement Agreement for commission you should get. Disclosure Agreement Just a suggestion. End Buyer Down Payment Statement Insert this in your contract to insure you get the down payment if the buyer cannot complete the transaction. Invoice Some title companies require an invoice before they pay marketing fees on the HUD. Here is a blank template of an invoice for you to use. Land Contract Sample of a Land Contract. Land Trust Revocable Trust - This is a state specific document but the principle can be used in any state if you wish to flip the property using a land trust. Property Appraisal Sheet You should keep a sheet like this for every deal you do. Keep you accounting in order and all the relevant info. in one place.

120 Real Estate Affidavit & Memo Generic Generic form of Purchase and Sale. Real Estate Affidavit & Memo Simple Simple form of the Purchase and Sale. Realtor Script How to talk to Realtors.

121 AFFIDAVIT AND MEMORANDUM OF PURCHASE AND SALE AGREEMENT STATE OF COUNTY OF BEFORE ME, the undersigned authority, on this day personally appeared, who being first duly sworn, deposes and says that: 1. A Contract for the Purchase and Sale of the real property described herein was entered into by and between the Affiant, as Buyer, and, as Seller, on the day of, 20. 2. Any interested party may contact:, whose mailing address is, and whose telephone number is.

122 3. ALL PROSPECTIVE PURCHASERS BEWARE, Affiant has an equitable interest in the herein described real property by virtue of a properly executed contract. Affiant is, and has been, ready, willing and able to close this transaction. DESCRIPTION OF REAL PROPERTY (Insert Legal Description) FURTHER AFFIANT SAYETH NOT.

123 Signed, sealed and delivered in the presence of: AFFIANT: Sworn to and described before me this day of, 20. NOTARY PUBLIC After Recording Return To:

124 Agreement to Assign Contract for Sale and Purchase Subject Property:. Legal Description: This agreement is made between (ASSIGNOR) and (ASSIGNEE) regarding purchase of above referenced SUBJECT PROPERTY. Whereas (BUYER) has entered into a Purchase and Sales Agreement with (SELLER) for the purchase of SUBJECT PROPERTY, and whereas BUYER wishes to assign its rights, interests and obligations in the Purchase and Sales Agreement, it is hereby agreed between ASSIGNOR and ASSIGNEE as follows: 1. ASSIGNEE shall pay ASSIGNOR a NON-REFUNDABLE assignment fee of (payable $ with signing of contract and balance at close). 2. Assignee s inspection period shall expire upon execution of this Assignment.

125 ASSIGNEE accepts all terms and conditions of the contract for Sale and Purchase between BUYER and SELLER in its entirety. 3. ASSIGNEE acknowledges receipt of legible copies of the original Contract for Sale and Purchase in its entirety including all Addendums associated with this transaction. 4. Additional terms and conditions of this Assignment are as follows: - This assignment contract is non-assignable without the express written consent of the ASSIGNOR. - No changes to the Purchase Contract can be made without written Consent of. 5. Disclosures and Acknowledgement: a) ASSIGNOR and affiliated associates make no warranty, expressed or implied, regarding inspection reports or other reports provided to ASSIGNEE by ASSIGNOR or third parties concerning this property. b) ASSIGNEE acknowledges they are conducting a transaction dealing directly with ASSIGNOR for the purchase of SUBJECT PROPERTY.

126 ASSIGNEE is not relying upon or being represented by a REAL ESTATE BROKERAGE in this transaction. AGREED AND ACCEPTED ASSIGNOR ( ) ( ) ASSIGNOR Signature: Signature: Date: Date: ASSIGNEE( ) Signature: Dated:

127 EXPLANATION OF DOUBLE (BACK- TO- BACK) CLOSING A double close has the following requirements: -The first half cannot be a short sale. -The end buyer must be a cash buyer or using hard money/private lender -The commitment will say that title is vested in the owner of record, i.e. the seller in the first transaction. It will also disclose to the end buyer that two deeds will be recorded and there may be a delay in recording the second deed as the closing agent must wait for the deed in the first transaction to be recorded. -The funds transferred to the first title company must be disclosed as a line item on the Hud-I. -The contract from the investor to the end buyer discloses to the buyer that the seller has a contract to purchase only and is not the title owner at the time of execution. If all the above conditions are met and the title is clean & insurable, then we can conduct a double closing wherein the middleman need not fund the first transaction.

128 My title company puts this EXACT language in their title commitment also: For Informational purposes only: This is a simultaneous land flip transaction wherein sellers proceeds will be used for the purchase of the property from the current title owner identified on Schedule A and this payment will be reflected on the HUD-1 at closing. Consequently, there may be a delay in recording the deed.

129 SAMPLE B-C REAL ESTATE PURCHASE AND SALE AGREEMENT PARTIES: SELLER NAME HERE and BUYER NAME HERE hereby agree that Seller shall sell and Buyer shall buy the following described Real Property and Personal Property (collectively Property ) pursuant to the terms and conditions of this Contract for Sale and Purchase and any riders and addenda ( Contract ): I. DESCRIPTION: (a) Legal description of the real property located in COUNTY HERE County, Florida: LEGAL DESCRIPTION HERE (b) Street address, city, zip, of the Property: ADDRESS HERE (c) Personal Property includes existing range(s), refrigerator(s), dishwasher(s), ceiling fan(s), light fixture(s), and window treatment(s) unless specifically excluded below. Other items included are: As-Is/Where-Is Items of Personal Property (and leased items, if any) excluded are: As-Is/Where-Is II. PURCHASE PRICE (U.S. currency):... PAYMENT: (a) Deposit held in escrow by (escrow agent) in the amount of (checks subject to clearance)... (b) Additional escrow deposit to be made to Escrow Agent within after Effective Date days (see Paragraph III) in the amount of...

130 (c) Financing (see Paragraph IV in the amount of... (d) Other Non-Refundable Deposit to TITLE COMPANY NAME HERE... (e) Balance to close by cash, wire transfer of LOCALLY DRAWN cashier s of official bank check(s), subject to adjustments or prorations... III. TIME FOR ACCEPTANCE OF OFFER AND COUNTEROFFERS; EFFECTIVE DATE: (a) If this offer is not executed by and delivered to all parties OR FACT OF EXECUTION communicated in writing between the parties on or before ACCEPTANCE DATE, the deposit(s) will, At Buyer s option, be returned and this offer withdrawn. UNLESS OTHERWISE STATED, THE TIME FOR ACCEPTANCE OF ANY COUNTEROFFERS SHALL BE 2 DAYS FROM THE DATE OF THE COUNTEROFFER IS DELIVERED. (b) The date of Contract ( Effective Date ) will be the date when the last one of the Buyer and Seller has signed or initialed this offer or the final counteroffer. If such date is not otherwise set forth in this Contract, then the Effective Date shall be the date determined above for acceptance of this offer or, if applicable, the final counteroffer. IV. FINANCING: (a) This is a cash transaction with no contingencies for financing; (b) This contract is contingent on Buyer obtaining approval of a loan ( Loan Approval ) within days(if blank, then 30 days) after Effective Date ( Loan Approval Date ) for (CHECK ONLY ONE): a fixed; an adjustable; or a fixed of adjustable rate loan, in the principal amount of $, at an initial interest Approval by Loan Approval Date; satisfy terms and conditions of the Loan Approval; and to close the loan. Loan Approval which requires a condition relate to the sale of other property shall not be deemed Loan Approval for purposes of this subparagraph. Buyer shall pay all loan expenses. Buyer does not deliver written notice to Seller by Loan Approval Date stating Buyer has either obtained Loan Approval or waived this financing contingency, then wither party may cancel this Contract by delivering written notice ( Cancellation Notice ) to the other, not later than seven (7) days prior to Closing. Seller s Cancellation Notice must state that Buyer has three (3) days to deliver to Seller written notice waiving this financing contingency. If Buyer has used due to diligence and has not obtained Loan Approval before cancellation as provided above. Buyer shall be refunded the deposit(s). Unless this financing contingency has been waived, this

131 Contract shall remain subject to the satisfaction, by Closing, of those conditions of Loan Approval related to the Property; (c) Assumption of existing mortgage (see rider for terms); or (d) Purchase money note and mortgage to Seller (see AS IS Standard B and K are riders; addenda; or special clauses for terms). V. TITLE EVIDENCE: At least days (if blank, then 5 days) before closing a title insurance commitment with legible copies of instrument listed as exceptions attached thereto ( Title Commitment ) and, after Closing, an owner s policy of title insurance (see AS IS Standard A for terms) shall be obtained by: (CHECK ONLY ONE): (1) Seller, at Seller s expense and delivered to Buyer of Buyer s attorney; or (2) Buyer at Buyer s expense. (CHECK HERE): If an abstract of title is to be furnished instead of title insurance, and attach rider for terms. VI. CLOSING DATE: This transaction shall be closed and the closing documents delivered on or before CLOSING DATE( Closing ), unless modified by other provisions of this Contract. If Buyer is unable to obtain Hazard, Wind, flood, or Homeowners insurance at a reasonable rate due to extreme weather conditions, Buyer may delay Closing up for 5 days after such coverage becomes available. VII. RESTRICTIONS; EASEMENTS; LIMITATIONS: Seller shall convey marketable title subject to: comprehensive land use plans, zoning restrictions, prohibitions and other requirements imposed by governmental authority; restrictions and matters appearing on the plat or otherwise common to the subdivision; outstanding oil, gas and mineral rights of record without right of record without right of entry; un platted public utility easements of record (located contiguous to real property lines and not more than 10 feet in width as to the rear or front lines and 7½ feet in width as to the side lines); taxes for year of Closing and subsequent years; and assumed mortgage sand purchase money mortgages, any (if additional items, see addendum); provided; that there exists at Closing no violation of the foregoing and none prevent uses of the Property for Single Family Residential purpose(s).

132 VIII. OCCUPANCY: Seller shall deliver occupancy of Property to Buyer at time of Closing unless otherwise stated herein. If Property intended to be rented or occupied beyond Closing, the fact and terms thereof and the tenant(s) or occupants shall be disclosed pursuant AS IS Standard F if occupancy beyond Closing, Buyer assumes all risks of loss to Property from date of occupancy, shall be responsible and liable for maintenance from that date, and shall be deemed to have accepted Property in its existing condition as of time of taking occupancy. IX. TYPEWRITTEN OR HANDWRITTEN PROVISIONS: Typewritten or handwritten provisions, riders and addenda shall control all printed provisions of the Contract in conflict with them. X. ASSIGNABILITY: (CHECK ONLY ONE): Buyer may assign and thereby be releases from any further liability under this Contract; may assign but not be released from liability under this Contract; or not assign this Contract. may XI. DISCLOSURES: (a) CHECK HERE if the Property is subject to a special assessment lien imposed by a public body payable in installments which continue beyond Closing and, if so, specify who shall pay amount due after Closing: Seller Buyer Other (see addendum). (b) Radon is a naturally occurring radioactive gas that when accumulated in a building in sufficient quantities may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon or radon testing may be obtained from your County Public Health unit. (c) Mold is naturally occurring and may cause health risks or damage to property. If Buyer is concerned or desires additional information regarding mold, Buyer should contact an appropriate professional. (d) Buyer acknowledges receipt of the Florida Energy-Efficiency Rating Information Brochure required by Section 553.996 FS. (e) If the real property included pre-1978 residential housing, then a lead-based paint rider is mandatory.

133 (f) If Seller is a foreign person as defined by the Foreign Investment in Real Property Tax Act, the parties shall comply with that Act. (g) BUYER SHOULD NOT EXECUTE THIS CONTRACT UNTIL BUYER HAS RECEIVED AND READ THE HOMEOWNERS ASSOCIATION/COMMUNITY DISCLOSURE. (h) PROPERTY TAX DISCLOSURE SUMMARY: BUYER SHOULD NOT RELY ON THE SELLER S CURRENT PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT THE BUYER MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR PROPERTY IMPROVEMENTS TRIGGERS REASSESSMENTS OF THE PROPERTY THAT COULD RESULT IN HIGHER PROPERTY TAXES. IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY PROPERTY APPRAISER S OFFICE FOR INFORMATION. XII. MAXIMUM REPAIR COSTS: DELETED XIII. HOME WARRANTY: Seller Buyer N/A will pay for a home warranty plan issued by at a cost not to exceed $. XIV. INSPECTION PERIOD AND RIGHT TO CANCEL: (a) Buyer shall have 0 days from Effective Date ( inspection Period ) with which to have such inspections of the Property performed as Buyer shall desire and utilities service shall be made available by the Seller during the Inspection Period; (b) Buyer shall be responsible for prompt payment for such inspections and repair of damage and restoration of the Property resulting from such inspections; and (c) if buyer determines, in buyer s sole discretion, that the condition of the Property is not acceptable to Buyer, Buyer may cancel this contract by delivering written notice of such election to Seller prior to the expiration of the Inspection Period. If Buyer timely cancels this Contact, the deposit(s) paid shall be immediately returned to Buyer; thereupon, Buyer and Seller shall be released of all further obligations under this Contract, except as provided in this Paragraph XIV. The above provision (b) shall survive termination of this Contract. XV. RIDERS; ADDENDA; SPECIAL CLAUSES; CHECK those riders which are applicable AND are attached to and made part of this Contract: CONDOMINIUM VA/FHA HOMEOWNERS ASSN. LEAD-BASED PAINT COASTAL CONSTRUCTION CONTROL LINE INSULATION Other Comprehensive Rider Provisions Addenda Special Clause(s): The Seller is (related to) a licensed real estate agent in the state of Florida and does not represent the Buyer in this transaction. Money listed

134 on line 21, section II (d) is a non-refundable down payment paid to TITLE COMPANY NAME HERE, Should buyer be unable to close by 5:00pm on the closing date, due to no fault of the seller, buyer authorizes TITLE COMPANY NAME HERE to immediately disburse entire deposit amount to Seller without signing a cancellation of contract and release of escrow. Price is net to seller less any mortgage, liens and prorated property taxes not yet billed. Closing shall take place at TITLE COMPANY NAME HERE. Buyer s down payment is refundable if this contract is unenforceable due to the fault of the seller or if the seller can not deliver clear title. This contract is contingent upon SELLERS NAME HERE closing on the subject property. The word Seller on line 217 in section K shall be replaced with the word Buyer. Seller has never occupied the property and is exempt from providing the buyer with a property disclosure XVI. AS IS STANDARDS FOR REAL ESTATE TRANSACTIONS ( AS IS Standards): Buyer and Seller acknowledge receipt of a copy of AS IS Standards A through Z on the reverse side or attached, which are incorporated as part of this Contract. THIS IS INTENDED TO BE A LEGALLY BINDING CONTRACT. IF NOT FULLY UNDERSTOOD, SEEK THE ADVICE OF AN ATTORNEY PRIOR TO SIGNING. THIS AS IS FORM HAS BEEN APPROVED BE THE FLORIDA ASSOCIATION OF REALTOR AND THE FLORIDA BAR. Approval does not constitute an opinion that any of the terms and conditions in this Contract should be accepted by the parties in a particular transaction. Terms and conditions should be negotiated based upon the respective interests, objectives and bargaining positions of all interested persons.

135 (BUYER) BUYER NAME HERE HERE (DATE) (SELLER) SELLER NAME (DATE) (BUYER) (DATE) (SELLER) (DATE) BROKERS: The brokers (including cooperating brokers, if any) named below are the only brokers entitled to compensation in connection with this Contract. Cooperating Broker Broker Listing AS IS STANDARDS FOR REAL ESTATE TRANSACTIONS A. TITLE INSURANCE: The Title Commitment shall be issued by a Florida licensed title insurer agreeing to issue Buyer, an owner s policy of title insurance in the amount of the purchase price, insuring Buyer s marketable title to the Real Property, subject only to matters contained in Paragraph VII and those to be discharged by Seller at or before Closing. Marketable title shall be determined according to applicable Title Standards adopted by authority of The Florida Bar and in accordance with law. Buyer shall have 5 days from date of receiving the Title Commitment to examine it, and if title is found defective, notify Seller in writing specifying defect(s) which render title unmarketable. Seller shall have 30 days from receipt of notice to remove the defects, failing which Buyer shall, within 5 days after expiration of the 30 day period, deliver written notice to Seller either: (1) extending the time for a reasonable period not to exceed 120 days within which Seller shall use diligent effort to remove the defects; or (2) requesting a

136 refund of deposit(s) paid which shall be returned to Buyer. If Buyer fails to so notify Seller, Buyer shall be deemed to have accepted the title as it then is. Seller shall, if title is found unmarketable, use diligent effort to correct defect(s) within the time provided. If, after diligent effort, Seller is unable to timely correct the defects, Buyer shall either waive the Commitment and it is delivered to Buyer less Than 5 days prior to Closing, Buyer may extend Closing so that Buyer shall have up to 5 days from date of receipt to examine same in accordance with this AS IS Standard. B. PURCHASE MONEY MORTGAGE; SECURITY AGREEMENT TO SELLER: A purchase money mortgage and mortgage note to Seller shall provide for a 30 day grace period in the event of default if a first mortgage and a 15 day grace period if a second or lesser mortgage; shall provide for right of prepayment in whole or in part without penalty; shall permit acceleration in event of transfer of the Real Property; shall require all prior liens and encumbrances to be kept in good standing; shall forbid modifications of, or future advances under, prior mortgage(s); shall require Buyer to maintain policies of insurance containing a standard mortgagee clause covering all improvements located on the Real Property against fire and all perils included within the term extended coverage endorsements and such other risks and perils as Seller may reasonable require, in an amount equal to their highest insurable value; and the mortgage, note and security agreement shall be otherwise in form and content required by Seller, but Seller may only require clauses and coverage customarily found in mortgages, mortgage notes and security agreement generally utilized by savings and loan institutions or state or national banks located in the county wherein the Real Property is located. All Personal Property and leases being conveyed or assigned will, at Seller s option, be subject to the lien of a security agreement evidenced by recorded or filed financing statements or certificates of title. If a balloon mortgage, the final payment will exceed the periodic payments thereon. C. SURVEY: Buyer, at Buyer s expense, within time allowed to deliver evidence of title to examine same, may have the Real Property surveyed and certified by a registered Florida surveyor. If the survey discloses encroachments on the Real Property or that improvements located thereon encroach on setback lines, easements, land of others or violate any restrictions, Contract covenants or applicable governmental regulations, the same shall constitute a title defect. D. WOOD DESTROYING ORGANISMS: DELETED

137 E. INGRESS AND EGRESS: Seller warrants and represents that there is ingress and egress to the Real Property sufficient for its intended use as described in Paragraph VII hereof and title to the Real Property is insurable in accordance with AS IS Standard A without exception for lack of legal right of access. F. LEASES: Seller shall at least 10 days before Closing, furnish to Buyer copies of all written leases and estoppel letters from each tenant specifying the nature and duration of the tenant s occupancy, rental rates, advanced rent and security deposits paid by tenants. If Seller is unable to obtain such letter from each tenant to confirm such information. If the terms of the leases differ materially form Seller s representations, Buyer may terminate this contract by delivering written notice to Seller at least 5 days prior to Closing. Seller shall, at Closing, deliver and assign all original leases to Buyer. G. LIENS: Seller shall furnish to Buyer at time of Closing an affidavit attesting to the absence, unless otherwise provided for herein, of any financing statement, claims of lien or potential lienors known to Seller and further attesting that there have been no improvements or repairs to the Real Property for 90 days immediately preceding date of Closing. If the Real Property has been improved or repaired within that time, Seller shall deliver releases or waivers of construction liens executed by all general contractors, subcontractors, suppliers and materialmen in addition to Seller s lien affidavit setting forth the names of all such general contractors, subcontractors, suppliers and materialmen, further affirming that all charges for improvements or repairs which could serve as a basis for a construction lien or a claim for damages have been paid or will be paid at the Closing of this Contract. H. PLACE OF CLOSING: Closing shall be held in the county wherein the Real Property is located at the office of the attorney or other closing agent ( Closing Agent ) designated by the party paying for title insurance, or, if no title insurance, designated by Seller. I. TIME: In computing time periods of less than six (6) days, Saturdays, Sundays and state or national legal holidays shall be excluded. Any time periods provided for herein which shall end on a Saturday, Sunday, or a legal holiday shall extend to 5:00 p.m. of the next business day. Time is the essence in this Contract.

138 J. CLOSING DOCUMENTS: Seller shall furnish the deed, bill of sale, certificate of title, construction lien affidavit, owner s possession affidavit, assignments of leases, tenant and mortgage estoppel letters and corrective instruments. Buyer shall furnish mortgage, mortgage not, security agreement and financing statements. K. EXPENSES: Documentary stamps on the deed and recording of corrective instrument shall be paid by Seller. All costs of Buyer s loan (weather obtained from Seller or third party), including, but not limited to, documentary stamps and intangible tax on the purchase money mortgage and any mortgage assumed, mortgagee title insurance commitment with related fees, and recording of purchase money mortgage, deed and financing statements shall be paid by Buyer. Unless otherwise provided by law or rider to this Contract, charges for the following related title services, namely title evidence, title examination, and closing fee (including preparation of closing statement), shall be paid by the party responsible for furnishing the title evidence in accordance with Paragraph V. L. PRORATIONS; CREDITS: Taxes, assessments, rent, interest, insurance and other expenses of the Property shall be prorated through the day before Closing. Buyer shall have the option of taking over existing policies of insurance, if assumable, in which event premiums shall be prorated. Cash at Closing shall be increased or decreased as may be required by prorations to be made through day prior to Closing, or occupancy, if occupancy occurs before Closing. Advance rent and security deposits will be credited to Buyer. Escrow deposits held by mortgagee will be credited to Seller. Taxes shall be prorated based on the current year s tax with due allowance made for maximum allowable discount, homestead and other exemptions. If Closing occurs at a date when the current year s millage is not fixed and current year s assessment is available, taxes will be prorated based upon such assessment and prior year s millage. If current year s assessment is not available, then taxes will be prorated on prior year s

139 bodies as of Closing are to be paid by Seller. Pending liens as of Closing shall be assumed by Buyer. If the improvement has been substantially completed as of Effective Date, any pending lien shall be considered certified, confirmed, or ratified and Seller shall, at Closing, be charged an amount equal to the last estimate or assessment for the improvement by the public body. N. INSPECTION AND REPAIR: DELETED O. RISK OF LOSS: If the Property is damaged by fire or other casualty before Closing and cost of restoration does not exceed 1.5% of the Purchase Price, cost of restoration shall be an obligation of Seller and Closing shall proceed pursuant to the terms of this Contract with restoration costs escrowed at Closing. If the cost of restoration exceeds 1.5% of the Purchase Price, Buyer shall either take the Property as is, together with either the 1.5% or any insurance proceeds payable by virtue of such loss or damage, or receive a refund of deposit(s), thereby releasing Buyer and Seller from all further obligations under this Contract. P. CLOSING PROCEDURE: The deed shall be recorded upon clearance of funds. If the title agent insures adverse matters pursuant to Section 627.7841, F.S., as amended, the escrow and closing procedure required by this AS IS Standard shall be waived. Unless waived as set forth above the following closing procedures shall apply: (1) all closing procedures shall be held in escrow by the Closing Agent for a period of not more than 5 days after Closing; (2) if Seller s title is rendered unmarketable, through no fault of Buyer, Buyer shall, within the 5 day period, notify Seller in writing of the defect and Seller shall have 30 days from date of receipt of such notification to cure the defect; (3) if Seller s fails to timely cure the defect, all deposits and closing funds shall, upon written demand by Buyer and within 5 days after demand, be returned to Buyer and, simultaneously with such repayment, Buyer shall return the Personal Property, vacate the Real Property and reconvey the Property to Seller by special warranty deed and bill of sale; and (4) if Buyer fails to make timely demand for refund, Buyer shall take title as is, waiving all rights against Seller as to any intervening defect as may be available to Buyer by virtue of warranties contained in the deed or bill of sale. Q. ESCROW: Any Closing Agent or escrow agent (collectively Agent ) receiving funds or equivalent is authorized and agrees by acceptance of them to deposit them promptly, hold same in escrow and, subject to clearance, disburse them in accordance with terms and conditions of this Contract. Failure of funds to clear

140 shall not excuse Buyer s performance. If in doubt as to Agent s duties or liabilities under the provisions of this Contract, Agent may, at Agent s option, continue to hold the subject matter of the escrow until the parties hereto agree to its disbursement or until a judgment of a court of competent jurisdiction shall determine the rights of the parties, or Agent may deposit same with the clerk of the circuit court having jurisdiction of the dispute. An attorney who represents a party and also acts as Agent may represent such party in such action. Upon notifying all parties concerned of such action, all liability on the part of Agent shall fully terminate, except to the extent of accounting for any items previously delivered out of escrow. If a licensed real estate broker, Agent will comply with provisions of Chapter 475, F.S., as amended. Any suit between Buyer and Seller wherein Agent is made a party because of acting as Agent hereunder, or in any suit wherein Agent interpleads the subject matter of the escrow, Agent shall recover reasonable attorney s fees and costs in favor of the prevailing party. The Agent shall not be liable to any party or person for misdelivery to Buyer or Seller of items subject to the escrow, unless such misdelivery is due to willful breach of the provisions of this Contract of gross negligence of Agent. R. ATTORNEY S FEES; COSTS: In any litigation, including breach, enforcement or interpretation, arising out of this Contract, the prevailing party in such litigation, which, for purposes of this AS IS Standard, shall include Seller, Buyer and any brokers acting in agency or non-agency relationships authorized by Chapter 475, F.S., as amended, shall be entitled to recover from the non-prevailing party reasonable attorney s fees, costs and expenses. S. FAILURE OF PERFORMANCE: If Buyer fails to perform this Contract within the time specified, including payment of all deposits, the deposit(s) paid by Buyer and deposit(s) agreed to be paid, may be recovered and retained by and for the account of the Seller as agreed upon liquidated damages, consideration for the execution of this Contract and in full settlement of any claims; whereupon, Buyer and Seller shall be relieved of all obligations under this Contract; or Seller, at Seller s option, may proceed in equity to enforce Seller s rights under this Contract. If for any reason other than failure of Seller to make Seller s title marketable after diligent effort, Seller fails, neglects or refuses to perform this Contract, Buyer may seek specific performance or elect to receive the return of Buyer s deposit(s) without thereby waiving any action for damages resulting from Seller s breach. T. CONTRACT NOT RECORDABLE; PERSONS BOUND; NOTICE; FACSIMILE: Neither this Contract nor any notice of it shall be recorded in any public records. This Contract shall bind and inure to the benefit of the parties and their successors in interest. Whenever, the context permits, singular shall

141 include plural and one gender shall include all. Notice and delivery given by or to the attorney or broker representing any party shall be as effective as if given by or to that party. All notices must be in writing and may be made by mail, personal delivery or electronic media. A legible facsimile copy of this Contract and any signatures hereon shall be considered for all purposes as an original. U. CONVEYANCE: Seller shall convey marketable title to the Real Property by statutory warranty, trustee s, personal representative s, or guardian s deeds, as appropriate to the status of Seller, subject only to matters contained in Paragraph VII and those otherwise accepted by Buyer. Personal Property shall, at the request of Buyer, be transferred by an absolute bill of sale with warranty of title, subject only to such matters as may be other- wise provided for herein. V. OTHER AGREEMENTS: No prior or present agreements or representations shall be binding upon Buyer and Seller unless included in this Contract. No modification to or change in this Contract shall be valid or binding upon the parties unless in writing and executed by the parties intended to be bound by it. W. SELLER DISCLOSURE: (1) There are no facts known to Seller materially affecting the value of the Property which are not readily observable by Buyer or which have not been disclosed to Buyer; (2) Seller extends and Intends no warranty and makes no representation of any type, either express or implied, as to the physical condition or history of the Property; and (3) Seller has received no written or verbal notice from any governmental entity or agency as to a currently uncorrected building, environmental or safety code violation. X. PROPERTY MAINTENANCE; PROPERTY ACCESS; ASSIGNMENT OF CONTRACT AND WARRANTIES: Seller shall maintain the Property, including, but not limited to lawn, shrubbery, and pool in the condition existing as of Effective Date, ordinary wear and tear excepted. Seller shall, upon reasonable notice, provide utilities service and access to the Property for appraisal and inspections, including a walk-through prior to Closing, to confirm that all items Personal Property are on the Real Property and that the Property has been maintained as required by this AS IS Standard. Seller will assign all assignable repair and treatment contracts and warranties to Buyer at Closing

142 Y. 1031 EXCHANGE: If either Seller or Buyer wish to enter into a like-kind exchange (either simultaneous with Closing or deferred) with respect to the Property under Section 1031 of the Internal Revenue Code ( Exchange ), the other party shall cooperate in all reasonable respects to effectuate the Exchange, including the execution of documents; provided (1) the cooperating party shall incur no liability or expense related to the Exchange and (2) the Closing shall not be contingent upon, nor extended or delayed by, such Exchange. Z. BUYER WAIVER OF CLAIMS: Buyer waives any claims against Seller and, to the extent permitted by law, against any real estate licensee involved in the negotiation of the Contract, for any defects or other damage that may exist at Closing of the Contract and be subsequently discovered by the Buyer or anyone claiming by, through, under or against the Buyer.

143 BUSINESS CARD WE BUY HOUSES! CALL NOW! Inside fold XXX-XXX-XXXX Are you making payments on a house you can no longer afford? Been transferred and need to sell quick? Making double payments? Facing foreclosure? Inherit an unwanted home? Divorce? No equity? House simply won t sell? NEED TO SELL FAST FOR ANY REASON??? WE CAN HELP!! 1-800-CASH-FOR, America s leading home buyer is here to assist you NOW. We buy all types of

144 property in all areas in all types of condition and can close very quickly (even within a few days). We may even be able to pay your asking price!! Call the automated 800 # below to find out more about some of our exciting programs. (800) CASH-FOR (houses) P.S. It has been our experience that problems do not simply go away on their own. Call today!! Know of someone who needs to sell their property FAST and at a FAIR back price? We will give you $500 just for calling and telling us about it!!!!!

145 BUYER SCRIPT Keep in mind that this script is a roadmap of the type of conversation you want to have with an end buyer so that they understand the kind of deal you are doing. No-one wants to feel like they are being scammed in any kind of way so you want to make sure that you represent yourself and the deal correctly. You don t need to go into detail regarding the use of their cash in the closing to fund your deal. Let your escrow/title company explain that part. After all, they can explain the legality of the deal and will be much better suited to answering any questions your buyer may have regarding the nature of the transaction and the use of their cash. You simply want to make sure that the buyer understands that you have a contract on a bank owned property that you do not yet own. You also want to let them know that although their deposit is no-refundable if there is a problem on your end they get their money back. (See my addendum in my B to C contract) Once they are ready to buy: I m glad you are buying this GREAT property. Deals like this go FAST which is why you were smart to jump on it. It is a bank owned property that I just put under contract. I wholesale many bank owned

146 properties in this area because I have established relationships with the banks agents which is how I able to sell deals like this. Basically I buy and sell bank owned properties the same day at small markups and work on a volume basis. My closing date is (21) days from now so that would be our closing date too. Of course my contract with you depends on me getting clear title from the bank and closing on time with the bank. I wanted to let you know this upfront because sometimes there are delays due to title issues or other problems related to the foreclosure. If you have any other questions regarding the transaction, feel free to call (TITLE AGENT) and he/she can answer any other questions you may have. I look forward to getting this deal done with you and doing other deals in the future.

147 California Information First of all, for students in California, you have 3 ways of closing: write the offer in your own name and at the bottom of the contract under "Additional Information" put "Vesting To Be Determined At Close of Escrow".Then simply close into your wholesale buyers entity. OR Write the offer like the attached offer and then close in your wholesale buyers trust and draw up an amendment to change trustee at close or Grant Deed to change the trustee.

148 OR Do a back-to-back and fund with your money or borrow the cash for a day from one of the "one day money" people. Escrow companies Bella Vista Escrow Inc. (909) 946-9188 750 N Mountain Ave Upland, CA 91786 Len Schaustal, Jr., Owner/Manager Zemrus Escrow, Inc. 125 West Green Street

149 Pasadena, CA 91105 Phone: (626) 449-1974 Fax: (626) 449-2085 E-Mail: len@zemrusescrow.com Mary Kendall Escrow Officer Foundation Escrow 2020 Camino Del Rio No. Suite 306 San Diego, CA 92108 Ph: (619) 327-2140 Fax: (619) 327-2144 Email: mary@foundationescrow.com Attorney Ron Ballard Ballard Law Offic22996 El Toro Road Lake Forest, CA 92630-4961 Phone: 949-597-9596 Fax: 949-597-1649 www.ballardlaw.com ballard.ronald@ballardlaw.com

150 COMMISSION AGREEMENT, AGREES TO PAY A FINDER S FEE OF IN CONJUNCTION WITH THE CLOSING OF: THIS FINDER S FEES SHALL BE PAID UPON CLOSING, WHICH IS SET FOR. X DATE:

151 DISCLOSURE AGREEMENT Date: Be it known on this day of, 20, that We/I acknowledge that has not in any way received direct monies from the undersigned in relation to any real estate agreement. Furthermore, We(I) hold harmless from default, non-performance, or illegal acts of other interested parties for any real estate agreement we may engage in whether intentional or non-intentional. SS# Ph# (Person Issuing Statement) SS# Ph# (Person Issuing Statement)

152 End Buyer Down Payment Statement Money listed on line xxx is a nonrefundable down payment paid to (Title co). Should buyer be unable to close by 5:00 PM on the closing date, due to no fault of the seller, buyer authorizes (Tile co) to immediately disburse entire deposit amount to seller without signing a cancellation of contract and release of escrow. Price is net to seller less any mortgage, liens and prorated property taxes not yet billed. Closing shall take place at (Title co) Buyer's down payment is refundable if this contract is unenforceable due to the fault of the seller or if the seller cannot deliver clear title. This contract is contingent upon your name closing on the subject property. Seller has never occupied the property and is exempt from providing buyer with a property inspection report, lead certification, et al.

153 Land Contract This Agreement is made and entered into by and between: (seller) whose address is: hereinafter called the Vendor and (buyer) whose address is: hereinafter called the Vendee. Witnesseth: The Vendor, for himself, his heirs and assigns, does hereby agree to sell to the Vendee, their heirs and assigns, the following real estate commonly known as: and further described; as: together with all appurtenances, rights, privileges and easements and all buildings and fixtures in their present condition located upon said property. 1. CONTRACT PRICE. METHOD OF PAYMENT, INTEREST RATE: In consideration whereof, the Vendee agrees to purchase the above described property for the sum of Dollars ($ ), payable as follows:

154 The sum of $ as down payment at the time of execution of the within Land Contract the receipt of which is hereby acknowledged, leaving principal balance owed by Vendee of $ together with interest on the unpaid balance payable in consecutive monthly installments of $ beginning on the day of, 20, and on the day of each and every month thereafter until said balance and interest is paid in full, or until the day of 20 at which time the entire remaining balance plus accrued interest shall become due and payable. The Interest on the unpaid balance due hereon shall be ( %) per annum computed monthly, in accordance with a monthly amortization schedule during the life of this Contract. Payments shall be made to the Vendor at the location above, unless otherwise directed by the Vendor, and such payments shall be credited first to the Interest, and the remainder to the principal or other sums due. The total amount of this obligation, both principal and interest, unpaid after making any such application of payments as herein receipted shall be the interest bearing principal amount of this obligation for the next succeeding interest computation period. If any payment is not received within ( ) days of payment date, there shall be a late charge of ( %) percent assessed. The Vendee may pay the entire balance due under this contract without prepayment penalty. 2. ENCUMBRANCES: Page 2 of 3 Land Contract Said real estate is presently subject to a mortgage, and neither Vendor nor Vendee shall place any mortgage on the premises in excess of this Land Contract balance without prior written consent of the other party. 3. REAL ESTATE TAXES: Real estate taxes shall be the responsibility of the Vendee as of the date of the execution of this agreement. Said taxes shall be escrowed and added to the principal and interest payment required hereunder.

155 4. INSURANCE AND MAINTENANCE: The Vendor agrees to keep the premises insured against fire and other hazard for at least Dollars ($ ), and shall escrow and add the cost for said insurance premiums to the Vendee's principal and interest obligation herein. Vendor herein shall have the right to enter the premises at least once per year with twenty-four hours notice to Vendee of his interest to exercise his right. Vendee shall keep the building in a good state of repair and well painted at the Vendee expense and no additions or alterations shall be made to the building without the Vendor's permission, which shall not be unreasonably withheld. At such time as the Vendor Inspects the premises and finds that repairs are necessary, Vendor shall request that these repairs be made within thirty (30) days at the Vendee's expense. The Vendee has inspected the premises constituting the subject matter of this Land Contract, and no representations have been made to the Vendee by the Vendor in regard to the condition of said premises; and it is agreed that the said premises are being sold to the Vendee as the same now exists and that the Vendor shall have no obligation to do or furnish anything toward the improvement of said premises, except as may be provided herein. 5. POSSESSION: The Vendee shall be given possession of the above described premises upon Contract execution, or as otherwise provided herein and shall thereafter have and hold the same subject to the provisions for default hereinafter set forth. 6. ASSIGNMENT: The Vendee shall not sell, assign, or pledge their interest in this Land Contract without the Vendor's written consent which consent shall not be unreasonably withheld. 7. DELIVERY OF DEED: Upon full payment of this contract, the Vendee shall receive a General Warranty deed to the property free of all encumbrances except as otherwise set forth.

156 8. DEFAULT: If any installment payment to be made by the Vendee under the terms of this Land Contract is not paid by the Vendee when due or within one (1) Installment thereafter, the entire unpaid balance shall become due and collectable at the election of the Vendor and the Vendor shall be entitled to all the remedies provided for by the laws of this state and/or to do any other remedies and/or relief now or hereafter provided for by law to such Vendor; and in the event of the breach of this contract in any other respect by the Vendee. Vendor shall be entitled to all relief now or hereinafter provided for by the laws of this state. Page 3 of 3 Land Contract Failure of Vendee to maintain current the status of all real estate taxes and insurance escrow payments and/or premiums as required herein shall permit Vendor the option to pay any such escrow amounts, premiums, taxes, interest, and/or penalty(ies), and to add same to the next due installment payment or principal amount owing under this contract, or to exercise any remedies available to Vendor. Waiver by the Vendor of a default or a number of defaults in the performance hereof by the Vendee shall not be construed as a waiver of any default, no matter how similar. In the event that the Vendor's interests in the property should become compromised or otherwise extinguished for any reason, or should there be an acceleration of any debt secured by the property, the Vendee shall be entitled to a refund of all downpayment monies paid to the Vendor, plus the principal portion of any payments made to date, as follows: Upon notification of such conditions, Vendee agrees to suspend subsequent payments due hereunder, and must continue to occupy the property until required to vacate by judicial order. Vendee further agrees that any refund amounts due hereunder will be reduced by the amount of the missed payments. Both parties agree that this shall constitute the entire liability of the Vendor, and that Vendor shall have no liability to Vendee beyond this amount for any reason whatsoever.

157 9. GENERAL PROVISIONS: There are no known pending orders issued by any governmental authority with respect to this property other than those spelled out herein prior to closing date for execution of this agreement. It is agreed that this Land Contract shall be binding upon each of the parties, their administrators, executors, legal representatives, heirs and assigns. 10. SPECIAL PROVISIONS: IN WITNESS WHEREOF, the parties hereby set their hands this day of 20, WITNESS: VENDOR: VENDEE:

158

159 LAND TRUST REVOCABLE TRUST ARTICLE ONE This trust agreement, executed, 20 is between (AND) (OWNER(S)), as Settlor and as Trustee. The Settlors has/have transferred or will transfer property to the Trustee, which shall be held, in trust, on the terms set forth in this agreement. ARTICLE TWO A. Property subject to this instrument is referred to as the Trust Estate and shall be held, administered, and distributed in accordance with this instrument. B. Other property acceptable to the Trustee may be added to the Trust Estate by any person, by the Will of the Settlor, by the proceeds of any life insurance or otherwise. C. All the property in this trust is the separate property of the Settlor and there is no community, domestic partner, or marital property interest in the Trust Estate. ARTICLE THREE A. While living, the Settlor reserves the right to amend or revoke this trust, in whole or in part, to withdraw property from it, and to make gifts from it at any time or times during the Settlor's lifetime. B. On the death of the Settlor the trust created by this Declaration shall become irrevocable and not subject to amendment. C. In this instrument, the terms incompetent and disabled shall refer to a physical or mental inability to carry out one's usual business affairs, whether or not such person is legally determined to be incompetent or in need of a Conservator. To

160 prove a change of Trustee based on incapacity, a Successor Trustee may rely upon a written declaration to determine the incompetence of the Settlor made by, in order of priority, 1) (PERSON 1), or 2) (PERSON 2). Any action taken by a Successor Trustee pursuant to such declaration shall be binding on all persons interested in the trust. No statement of incapacity from any physician shall be required to prove a change of Trustee as it is the Settlor's specific intention that physicians and courts not be involved in the determination of incapacity for any purpose. No third party shall incur any liability for relying on such declaration to prove a change of Trustee. ARTICLE FOUR During the life of the Settlor, the Trustee shall pay to or apply for the benefit of the Settlor monthly or as received all of the net income of the Trust Estate. If the Trustee considers the net income insufficient, the Trustee shall pay to the Settlor as much of the principal of the Trust Estate as is necessary, in the Trustee's discretion. ARTICLE FIVE In the event of the death of the Settlor, the Trustee, in the Trustee's discretion, shall receive monthly payments for the transfer of beneficial interest and pay out of such payments to lender or mortgage holder the remaining mortgage of the Trust Estate. These payments shall be paid from the portion of the Trust Estate described in Article Six without charge against any beneficiary of the Trust Estate. ARTICLE SIX Upon the death of the Settlor,, the Trustee, after making payments provided in Article Five, shall distribute the residue of the Trust Estate, free of trust, to the following beneficiaries in the percentages stated: 100% to (PURCHASER

161 OF BENEFICIAL INTEREST OF TRUST OR SURVIVORS THEREOF). If any of the above beneficiaries do not survive the Settlor by 30 days then the share that the beneficiary would have taken shall be divided among the survivors of the Beneficiary herein designated as named in the Last Will and Testament of the Beneficiary. If the Settlor is not survived by any survivors, then the residue of the Trust Estate shall be distributed, free of trust, according to the terms as declared in the Last Will and Testament of the Beneficiary. ARTICLE SEVEN A. If the individual Trustee named in Article One, shall for any reason cease to act or be incompetent to act, then there shall be, in order of priority, 1) an attorney so designated by Beneficiary or beneficiaries estate, 2) other Trustee as so shall designated by Beneficiary or estate thereof; to assume the position of Trustee of this Trust. B. Any Trustee appointed as provided in this Declaration shall on appointment being made, immediately succeed to all title of the Trustee to the Trust Estate and to all powers, rights, discretions, obligations, and immunities of the Trustee under this Declaration with the same effect as though such successor were originally named as Trustee in this Declaration. C. Any Trustee may resign without need of court approval by giving written notice to a Trustee who accepts the trust. A Trustee may be selected by a resigning Trustee if the Settlor has not provided for one in this declaration. Under no circumstances shall a corporate Trustee serve as Trustee of any trust created under this instrument. A Trustee shall not be removed as a Trustee solely because they are also a beneficiary. D. No bond shall be required of any person named in this instrument as Trustee, or of any person appointed as the Trustee in the manner specified here, for the faithful performance of his or her duties as Trustee.

162 ARTICLE EIGHT In order to carry out the provisions of the Trusts created by this instrument, the Trustee shall have these powers in addition to those now or hereafter conferred by law: (1) To continue to hold any property of and to operate at the risk of the Trust Estate, any business that the Trustee receives or acquires under the Trust as long as the Trustee deems advisable upon and with the consent of the Beneficiary. (2) To manage, control, grant options on, sell (for cash or on deferred payments), convey, exchange, divide, improve, and repair Trust property. (3) To rent and or lease Trust property for terms within the terms of the Trust. (4) The Trustee shall have the power to release or to restrict the scope of any power that he or she may hold in connection with the Trust created under this instrument, whether said power is expressly granted in this instrument or implied by law. (5) To take any action and to make any election, in the Trustee's discretion, to minimize the tax liabilities of this Trust and its beneficiaries, and it shall have the power to allocate the benefits among the various beneficiaries, and the Trustee shall have the power to make adjustments in the rights of any beneficiaries, or between the income and principal accounts, to compensate for the consequences of any tax election or any investment or administrative decision that the Trustee believes has had the effect of directly or indirectly preferring one beneficiary or group of beneficiaries over others. (6) To encumber Trust property by mortgage, deed of trust, pledge, assignment of beneficiary interest or otherwise. (7) To commence or defend, at the expense of the Trust, such litigation with respect to the Trust or any property of the Trust Estate as the Trustee may deem advisable, and to compromise or otherwise adjust any claims or litigation against or in favor of the Trust. (8) To carry insurance of such kinds and in such amounts as the Trustee deems advisable, at the expense of the Trust, to protect the Trust Estate and the Trustee personally against any hazard. (9) To withhold from distribution, in the Trustee's discretion, at the time for distribution of any property in this Trust, without the

163 payment of interest, all or any part of the property, as long as the Trustee shall determine, in the Trustee's discretion, that such property may be subject to conflicting claims, to tax deficiencies, or to liabilities, contingent or otherwise properly incurred in the administration of the estate. (10) To partition, allot, and distribute the Trust Estate, on any division or partial distribution or final distribution of the Trust Estate, in undivided interests or in kind, or partly in money and partly in kind, at valuations determined by the Trustee, and to sell such property as the Trustee may deem necessary to make division or distribution. In making any division or distribution of the Trust Estate, the Trustee shall be under no obligation to make a pro rata division, or to distribute the same assets to beneficiaries similarly situated. The Trustee may, in the Trustee's discretion, make a non-pro rata division between Trusts or shares and non-pro rata distributions to such beneficiaries, as long as the respective assets allocated to separate trusts or shares, or distributed to such beneficiaries, have equivalent or proportionate fair market value and income tax basis. (11) Each Trustee shall have the power to employ any custodian, attorney, accountant, financial planner, investment advisor or any other agent to assist the Trustee in the administration of this Trust and to rely on the advice given by these agents and to compensate such agents with the receipts and undistributed cash assets of the Trust Estate. (12) Subject to any limitations expressly set forth in this Declaration and the faithful performance of fiduciary obligations, to do all such acts, take all such proceedings, and exercise all such rights and privileges as could be done, taken, or exercised by an absolute owner of the Trust property. (13) The Trustee shall be entitled to pay him or herself reasonable compensation for services rendered to the Trust without prior court approval, not to exceed five percent per year of the trust's asset value. ARTICLE NINE A. The Trustee shall provide an accounting at the request of any current or remainder beneficiary if the Settlor is not acting as Trustee in which case accountings are waived. B. The validity of this trust for real property shall be governed by

164 the law of the state of its situs. The construction, interpretation and administration of this trust shall be governed by the laws of the state of Illinois regardless of its situs or the domicile of the Trustee with regard to all other matters. This choice of law provision is based in part on the legal authority stated in the Illinois Code. This choice of law provision is intended to be exclusive. C. A contestant shall be considered to have predeceased the Settlor without surviving issue. In this instrument, contestant means any person other than the Settlor who, directly or indirectly, voluntarily participates in any proceeding or action which seeks to void or set aside any provision of this trust or any provision of the Settlor's will. The term contest shall include, but not be limited to, the filing of a creditor's claim or prosecution of an action based upon it, an action or proceeding to determine the character, title or ownership of property held in the trust, to challenge the choice of law provision of the trust, or a challenge to the validity of an instrument, contract, agreement, or a beneficiary designation to which the Settlor was a party. D. If any provision of this trust document is unenforceable, the remaining provisions shall remain in full force and effect. This trust shall be known as the REVOCABLE TRUST. Execute o d at, n, (City) (State) (Date) 20. (signature) State of County of } ss. On this day of, 20, before me, the undersigned Notary Public, personally appeared (name of document

165 signer), proved to me through satisfactorily evidence of identification, which were (description of satisfactory evidence relied on), to be the person whose name is signed on the preceding or attached document and acknowledged to me that he/she signed it voluntarily for its stated purpose. (official signature and seal of Notary)

166 September 31, 2005 ProbateLetter Blanch and Roy Day 403 E. Westbrook Brandon, FL 33511 Dear Mr. and Mrs. Day, May I offer my condolences on the passing of your loved one, Roy Day. The reason I am contacting you is I understand the property located at 716 Sunlit Ct. in Brandon may be available to purchase. I am looking for property in this area and would be interested in making an offer if it is going to be sold. Of course, I m sure at this time the property may not be a priority for the family, but if in the future the heirs decide to sell, please call me and give me the chance to make an offer. I will purchase the property in it s As-Is condition and pay all cash with no contingencies for financing. I can close the sale within 14 days or less. This will save the estate time and extra estate/sale fees. I hope you understand you do not have to wait until this probate is completed to sell the property. You can sell now outside of most of the court red tape and cash out the asset with very little trouble at all. If the property is going to be sold, there is no reason to go through the entire court confirmation process, run up extra attorney and miscellaneous fees, and pay a 6% real estate

167 commission. If you wish to discuss this further, I can be reached at (555) 555-5555. In any event, I wish the best for your family in their time of loss. Sincerely, J. Edgar Hoover 108 Moody Ave S #2 Tampa, FL 33609 Cc: Judy Gay Wayne Hancock Glenda Fahey

168 Probate Tracking Sheet Date Case No. Name of Deceased: Property address: Property Value: Attorney for Personal Representative: Name: Address: Phone:

169 Personal Representative #1 Name: Address: Phone / Email: Beneficiary #1: Name: Address: Phone / Email: Beneficiary #2: Name: Address:

170 Phone / Email: Beneficiary #3: Name: Address: Phone / Email: Beneficiary #4: Name: Address: Beneficiary #5 Name: Address:

171 Phone / Email:

172 PROPERTY APPRAISAL QUICK ANALYSIS Special Note: This document is for personal use and not intended to be legal tender document. In addition, the person assimilating this information does not warrant the below listed information. Property Address Seller s Name Date: Tax Role Info: Square Footage Assessed Value Year Built * have this info complete if possible before meeting seller Comparable Sales Info: a) 1 st Comp Address Date Sold Amount Sold For Square Footage b) 2 nd Comp Address Date Sold Amount Sold For Square Footage c) 3 rd Comp Address Date Sold

173 Amount Sold For Square Footage Total Sum of Amounts Sold of A-C Total Square Footage of Comps A-C Average Square Footage Price of Comps (Divide total sum of amounts sold of comps a-c by total square footage price of comps) Estimated Retail Value of Subject Property (Multiply the average square footage price of comps by square footage of subject property) Average Retail Value (Fill in from express.realquest.com) Note: Try to get the comparable information about the subject property if you can before you visit the seller. Sometimes the situation may call for you to make an offer right then and there, and you want to be prepared. Exterior of Property Type of Exterior and Condition (Brick, Siding, Stone, etc). Roofing and Condition (Wood Composite or Regular Shingles).

174 General Landscaping Appearance (Fence Condition, Shrubs, Plants, Foundation Status). Interior Features Number of Rooms to be Painted Kitchen To Be Replaced: YES NO If Yes, # of cabinets Comments: # of Bathrooms to be Renovated? Comments Carpeting & Other Flooring (Condition and # of Rooms to Replace) Other Features to Consider Condition and Possible Replacement (Windows, Lighting Fixtures, Ceiling, Doors, etc..)

175 House Operating Systems: Condition of Air Conditioning (Central Air Conditioning/Evaporative/Window Units?) Condition of Heating Units (Floor Furnace, Central Heat, Wall-Mount Heaters) Condition of Plumbing (Noticeable Leaks, Exposed Pipes, Properly Working Faucets) Condition of Electrical (Light Fixtures, Breaker Box, Exposed Wall Plugs) Miscellaneous Items To Evaluate (Stove, Dishwasher, Microwave, Dish Washer/Dryer Included?) General Comments:

176

177 REAL ESTATE CONTRACT FOR THE SALE & PURCHASE OF REAL ESTATE - GENERIC PARTIES: their heir(s), successors, administrators and assigns, as Seller who s address is: and their heirs, successors, administrators and assigns, as Buyer, whose mailing address is. WITNESSETH: That Seller, in consideration of the payments, covenants, agreements and conditions herein contained which on the part of the Buyer are to be made, done and performed, has this day sold, upon the conditions hereinafter recited, to the Buyer the real property legally described as: SUBJECT PROPERTY:, hereinafter the property, LEGAL DESCRIPTION:

178 SALE PRICE: $ SUBJECT TO: $ EQUITY: $ PAYABLE: This is a CASH transaction. Buyer pays ALL closing costs. Purchase price is NET. EXISTING MORTGAGE (S): Existing financing on subject property will be current in all payments of principal, interest, late charges and escrow amounts required by the mortgagee. Escrow balance has been calculated into the price and will transfer to the Buyer along with title. Buyer will take title subject to his debt. EXPENSES: Buyer pays all closing costs.

179 INSURANCE: As consideration for this purchase the Seller will assign all insurance policies on the property to the Buyer and Seller will grant a limited power of attorney to the Buyer to deal with the lender(s) and insurance provider(s). RISK OF LOSS: If subject property is damaged prior to transfer of title, Buyer has the option of accepting any insurance proceeds with title to the property in as is condition or of canceling this contract and accepting the return of the deposit. PRORATIONS: Real property taxes will be prorated based on the current year s tax without allowance for discounts, including homestead or other exemptions. Rents will be current and be prorated as of the date title transfers. DEFECTS: Seller warrants subject property to be free from hazardous substances and from violation of any zoning, environmental, building, health or other governmental codes or ordinances. Seller further warrants that there is no material or other known defects or facts regarding this property, which would adversely affect the value of said property. NO JUDGMENTS: Seller warrants that there are no judgments threatening the equity in subject property, and that there is no bankruptcy pending or contemplated by any titleholder. Seller will not further encumber the property and an affidavit may be recorded at Buyer s expense putting the public on notice that the closing of this contract will extinguish liens and encumbrances hereafter recorded.

180 RADON GAS & LEAD PAINT: Lead based paint and Radon, a naturally occurring radioactive gas that may present health risks to persons who are exposed to it over time, may exist in this property. Buyer may obtain a risk assessment of the property by licensed inspectors. Dangerous circumstances and the conditions, which caused said circumstances will be corrected at the Seller s expense before title transfers. LICENSURE: The trustee of the above-mentioned Buyer s Trust may or may not hold an inactive real estate license. POSSESSION: Possession of the property and occupancy (tenants excepted), with all keys and garage door openers, will be delivered to the Buyer when title transfers. Leases and security deposit will transfer to the Buyer with title. INSPECTIONS: This contract is contingent upon the Buyer s inspection and approval of the property prior to transfer of title. Seller agrees to provide access to the Buyer s representatives prior to transfer of title for inspection, repairs and to market the property. ACCEPTANCE: This instrument will become a binding contract when accepted by the Seller and signed by both Buyer and Seller. If it is not accepted and signed by the Seller prior to, this contract shall be void. DEPOSIT: Upon acceptance Buyer will place in escrow an earnest money deposit of $ with title company which will be part of the cash paid to the Seller when title transfers. This deposit will be returned to the

181 Buyer if title does not transfer in accordance with this agreement and said title company will close this transaction. SELLER: Agrees that the buyer may place signs and show the property immediately upon acceptance of this contract by both parties. CLOSING: Closing will take place on or before: at Subject to a 90 day period in which the buyer/seller shall be permitted to clear any title problems. OTHER AGREEMENTS: This is a CASH transaction. Buyer pays ALL closing costs. Purchase price is NET. TIME IS OF THE ESSENCE with this agreement. Each contingency contained herein shall be satisfied according to its terms by the closing date or this contract extends to provide time for satisfaction of said contingencies. Each party shall diligently pursue the completion of this transaction. Each warranty herein made survives the closing of this transaction. PROHIBITION: This agreement establishes a prohibition against transfer, conveyance or encumbrance to the property.

182 Seller Date Buyer Date Seller Date Date Buyer STATE: COUNTY: The foregoing instrument was acknowledged before me this day of, 200_, by and, who have provided driver s license as identification and who did not take an oath.

183 Release of Affidavit and Memorandum of Purchase and Sale Agreement Date: Claimant: Property: assert Claimant has on or about, attempted to

184 Claimant hereby releases the Property owner, the Property and all properties referenced therein from the Affidavit and Memorandum of Purchase and Sale Agreement and from all claims and liens and equitable interests held by Claimant against the Property and the Property s owner in consideration of TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged.

185 STATE OF COUNTY OF This instrument was acknowledged before me on, 2006, by Notary Public, State of Texas STATE OF COUNTY OF

186 This instrument was acknowledged before me on, 2006, by, as the President of, a Texas corporation, on behalf of said corporation. Notary Public, State of Texas My commission expires: AFTER RECORDING RETURN TO:

187 REAL ESTATE AFFIDAVIT AND MEMORANDUM OF AGREEMENT FOR PURCHASE AND SALE - SIMPLE State of STATE NAME HERE County of BEFORE ME, the undersigned authority, on this day personally appeared YOUR NAME HERE, who being first duly sworn, deposes and says that: 1 An agreement for the Purchase and Sale of the real property described in the attached Exhibit A was entered into by and between the Affiant, as (Buyer/Seller), and, as (Buyer/Seller), on the th day of, 20. 2. The closing of the purchase and sale of the said real property, per the terms of the Agreement, is to take place on or before the day of,20

188 3. A copy of the agreement for the purchase and sale of said real property may be obtained by contacting YOUR NAME HERE, whose mailing address is YOUR MAILING ADDRESS HERE, and whose telephone number is YOUR TELEPHONE NUMBER HERE Dated this th day of,20. FURTHER AFFIANT SAYETH NOT. Signed, sealed and delivered in the presence of: WITNESS AFFIANT WITNESS Sworn to and described before me this th day of,20. (Seal)

189 HERE NOTARY PUBLIC STATE OF STATE NAME My commission expires This instrument was prepared by: DESCRIPTION OF REAL PROPERTY Exhibit A

190 REALTOR SCRIPT Keep in mind that this script is a roadmap of the type of conversation you want to have with a Realtor on the phone. You already have the introduction E-mail to use when E- mailing agents for the first time. Keep in mind that not all REO agents will want to meet you for lunch straight away or ever. The most important part is that you come across friendly, sincere and confident and give them the security that you are a real buyer when you are speaking to them. What you want to establish with these REO agents is a rapport where you are a recognizable name and not just another offer. Like every relationship, they get stronger over time, but using this kind of language will speed up this process for you in building relationships with the top REO agents in your area! Hi, my name is YOUR NAME HERE. I am calling you because I have done my research and you are one of the heavy hitters in REO s in this area. This is the reason I want to do business with you direct because winners hang out with winners and you are obviously at the top of your industry. Myself and my partners have been investing in Real Estate for a long time but not in REO s. We have seen the market change and realize that REO agents like you hold the keys to the best deals in town. I know that we have never done business with you before but I am looking forward to getting some deals done with you. I want you

191 working on my side which is why I will never take any of your commission on a deal. When I close my first deal with you, you will see how I do business. In fact, I am going to bet you right now that within a couple months, I will be your biggest client because you will enjoy working with me. I know you are real busy so if you have any properties that you could send me that are coming up in the near future I will look at them and let you know what I can offer so you have a solid offer in hand before you list the property. Let s grab lunch sometime in the next few days and we chat more about this. I would like to meet you in person so you know I am real buyer. I look forward to getting our first deal done Common questions/objections from REO agents Agent - What kind of houses do you buy? Answer I buy investment homes that would make great flips or rentals. Agent - I currently work with a couple investors already Answer I figured you were because you are so well established, but I also know that not everyone has a 100% batting and you could always do with a solid investor like me around that is a guaranteed close.

192 Agent What other agents do you deal with? Answer Myself and my partners have been investing in Real Estate for a long time but not in REO s. I am only working with a couple other of the Top REO Agents like (have their names ready) that are big players like you. Agent I m too busy to meet you for lunch right now Answer I know you are very busy so maybe after we close our first deal, I ll buy you lunch.

193 Resources Books You may order any of these books at any time. You will need a PDF reader to read them. A popular PDF reader is Adobe. (Adobe.com) Please go to FindingFlippingFixing.com to order. Real Estate Investing: Tips, Myths and Realities Flipping Your Way to Financial Freedom Think and Grow Rich Success Secrets of Self-Made Millionaires Conquering Your Life Goals Automatic Reverse Marketing Systems about real estate marketing Flipping Fortune: Making Big Money Wholesaling Real Estate How to Buy a Wholesale Deal without Taking a Bath Mentor for Life Insider Secrets to Real Estate Wholesaling

194 Getting Started with Wholesaling Real Estate Investing Simplified Monster Wholesale Profit System FreedomSoft Outsourcing Guide creating a virtual real estate office 12 Issues to Discuss with Your Real Estate Partners The Property Manager Your Wealth Is In His Hands Quit Your J.O.B. in 19 Weeks or Less