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2 Copyright Creativerealestatehelp.com - All rights reserved. No part of this material may be reproduced, transmitted by any means, electronic, mechanical, photocopy, and recording or otherwise without written permission from the author. We are part of an extensive alliance to protect ourselves against copyright infringement. ANY unauthorized reproduction of these materials in whole or part will result in legal action against you or your company. Legal Disclaimer: All the information presented herein is based upon the author s research and experience. The author is not responsible for errors or omissions. Laws and legal practices vary from state to state, and from municipality to municipality. Furthermore, laws can, and often do, change over time. The author does not vouch for the legality of his opinions, nor is there any intent to supply legal advice. The reader is advised to understand the laws and practices in their area. The author strongly encourages the reader to consult with an attorney prior to entering any real estate transaction or contract and before taking any action on the material written or presented by the author. Page 2

3 The 3 Critical Components That Will Accelerate Your Success in Real Estate There are a lot of factors that come into play that will determine your success in the real estate business. Circumstances and characteristics differ from individual to individual, but there are certain things that are universal to those who are most successful and those who stand out from everyone else. Fortunately, all of them can be learned no matter who you are. It will require some work and effort on your part, but understand life is an open book test. You don t have to know everything before you can move forward and you can learn as you go. You ll have the resources and tools; you just need to move forward! Now, that is easier said than done, because it s more than just having the knowledge, you need the motivation, confidence and ability to apply it. So let s go through some of these principles along with some steps so you can start putting these into application for your circumstances. Some of the things we will discuss are not even specific to real estate; don t let that fool you to their significance. That is one of the reasons there are a lot of people who miss the boat and get discouraged and only attain mediocre results. One of the most neglected areas that can actually be credited to most of a person s success has to do with mindset and more specifically having meaningful vivid goals. Many people don t understand how important this is until they start hitting some roadblocks. You must have a clear perspective of what you want to accomplish and why? What are your ultimate goals and objectives? What is your driving force? Why do you want to be successful in real estate? We don t become involved in real estate just because we like to buy or sell houses. It is just a vehicle. How is it a vehicle for you? Is it to create financial freedom? Why? Maybe you want to free up your time to pursue other aspirations or travel the world or contribute to charities where money is no longer an object. Whatever it might be, you need to make sure that perspective outweighs any obstacles you Page 3

4 may come up against. What is going to happen if you don t do this? Can you live with the consequences? It is critical that your goals and aspirations are bigger than your fears. Write them down so they become tangible and attainable. The more specific, and descriptive you are, the better. You need to FEEL this so it becomes a part of you. You need to KNOW you WILL achieve your goals; this can t be just some pipe dream! I can t emphasize enough how important this is. If you don t have meaningful vivid goals that can be a driving force for you, when obstacles arise you won t have the means to follow through. You never want to lose site of the end goal. Before reading on, really spend some time digging deep so you can find that fuel that will drive and motivate you if you haven t already! The reason I say that is I would hate to have you read through all of this and never actually apply any of it. It s easy to read information, but it s quite another to put it into application. That brings us to the 2nd most critical component and that is TAKING ACTION. Once you learn and have information you need to do something with it! This goes well beyond traditional goal setting. How many times have we written down a goal or New Year s resolution and then not followed through to its completion? This is another reason that having a clear perspective is so important, then when you do, organize it into a specific action plan. This means setting specific monthly, weekly and daily goals with deadlines that are manageable and attainable. Once you have established a solid foundation, you will be in an infinitely better position to actually ACHIEVE your goals, not just talk about them and dream about them, but to actually ACCOMPLISH them! I m not saying this to help you feel good about yourself. I m saying this because this is how it actually works! Finally, the last area that is extremely important yet usually not discussed as much is the importance of effective persuasion and negotiation, not only for negotiating real estate deals but also gaining trust of potential buyers, sellers and building a solid network of business relationships. Napoleon Hill, who spent his life studying millionaires and the traits they shared, said, "Persuasion is the magic ingredient that will help you to forge Page 4

5 ahead in your profession or business - and to achieve happy and lasting personal relationships." The good news is it s something you can learn! It will take time to develop but when you understand that only about 1% of the world s population knows how to properly persuade and negotiate, it will put you literally years ahead of your competition. Though this is a subject we could go into great depth on, even as you are beginning, it is important to understand so you can establish a strong foundation! (More on these areas are discussed in our Program.) Now that we have talked about principles to help you be fundamentally successful, let s get into real estate specifically and ways to establish your business most effectively. Building Your Investment Resources There are many things you should do when setting up your business and we discuss them in the Creative Real Estate System. What I d like to do now is share a little strategy that could alone have a big impact for accelerating your success in real estate. Creatively Building and Establishing Resources for Your Business One of the great secrets of the ultra wealthy is their ability to use the power of leverage to invest, build businesses and create exponential wealth. We all know how long it takes to save and put money away in the bank, especially when you are working at a job just trying to provide for your family. Even if you have set aside substantial savings, it helps, but can only go so far. One of the other problems that most people have is they live outside there means (They spend more than they earn). Instead of having money working for them, it works against them. Page 5

6 As an example, most people have credit cards and carry large balances on them. These balances are usually made up of consumer debt (electronics, day to day expenses, extra conveniences, etc). Sometimes it can be substantial if the debt has not been managed well. The banks love this consumer mindset because you are paying them every month in interest and never paying off the debt! This is why the banks and the ultra wealthy control the majority the world s capital; they understand and use the power of leverage. Normally when people talk about debt they refer to consumer debt. Something most of the population is plagued with. That is NOT what we re talking about. When you change from a consumer mindset to an investor mindset, this will work vastly to your advantage. This is how fortunes are made seemingly overnight. If you take an overall look at the most affluent people in our world, you will find that they have all used the power of leverage to build their fortunes. As you look at traditional or creative options for funding deals, from banks, partners, private or hard money lenders, there are always expenses and splits which can be large depending on the route you take. That s ok because it is the cost of doing business. Right? But what if you had a partner on hand with 20K or more of available funds to use whenever you needed it, and you didn t have to split the deals with him. Let s say you came across a deal that would make you 60-70K and all he wanted was few hundred dollars for allowing you to use his money. Would this be an advantageous relationship? Absolutely! Let me introduce you to a couple of my partners, they are VISA and MASTERCARD. I know you are probably laughing. I know. This concept was really foreign to me at first but it was one little thing I did that opened up my options dramatically! It gave me immediate resources which at the time would have otherwise probably taken me at least 2-3 years to save up in the bank. It allowed me to do some deals I wouldn t have been able to do otherwise and ended up growing my business at a much more accelerated pace. The problem with most people is they use credit cards and lines of credit as consumers on things that will not make them money. I personally choose to Page 6

7 have my assets pay for my liabilities. But I will use credit all day long to make money on smart investments. So what if you have poor credit or no credit? Don t worry! Understand; you don t need to use credit to invest. Regardless, it will only benefit you to repair your credit even when you ll be using a lot of creative strategies since credit now affects a lot of other facets of our lives. If this is the case for you, you will want to begin using the credit repair strategies and tools included in the program; in the Credit Repair Guide. Begin now by using other funding methods and strategies (like flipping, wholesaling, subject to, sandwich lease options, etc) and start making money; then on the side, build your credit so it will be an additional vehicle that is available to you. So how can you increase your available leverage resources? The good news is, because most of society shares this consumer mindset banks are still more liberal with extending credit, loans, 0% APR offers, etc, so even if you have some bad credit you may still have some options! There is a site called that compares different rates on major cards and has less stringent credit requirements. I m sure there are many others, but this particular site is reputable and has been around for several years. The key is to learn how to make credit work for you instead of against you. The credit scoring system definitely has its flaws, but if you play by the rules it can work wonderfully to your advantage. If you have existing credit cards, I have provided a script below that can be invaluable. This will not only help you increase your limits but also help you lower your rates and fees. The best part is you have nothing to lose by just asking. Your credit card companies don t want to lose your business, especially if you have been a good customer. This script has worked exceptionally well for me and those I have shared it with; I hope you will find it to be a benefit to you as well. Page 7

8 How to Lower Your Interest Rates and Increase Your Credit Leverage Immediately There are 3 things you can accomplish with this one call. They are lowering your rate, increasing your credit limit, and lowering or even eliminating your fees. Follow the script below when the operator answers: Hi, my name is. What is your name please? (They respond) Thank you (Operator s name), I am planning on making a large purchase here in the near future, so I wanted ask you; what is my credit limit? After they respond, sigh as if you are unhappy. How much credit can you give me today? The operator will respond: How much do you need? I would like a limit of. Ask for 5 times your current limit up to $100,000. They may ask for permission to run your credit and/or a few of the following questions: Do you still have the same job? Respond accordingly and if you are just starting this new business, let them know you are also self-employed. What is the name of the business? Be prepared ahead of time with the business name and as a side note, it s better not to include real estate in your business name. How much money do you make? I expect to make. (Use your current income, plus your anticipated real estate income (You may add 100k for a common first year average) How much of an increase can you give me today? I need to make this purchase soon. Page 8

9 Many times they will tell you immediately what the new limit has been increased to. Occasionally they will send you a written letter with the new approved amount. In fact, if you are a customer in good standing, they will usually give you the full amount you requested! Once this has been taken care of, follow up by saying: Now that we have adjusted my limit, it occurs to me I should check my interest rate. What is the lowest rate you can give me today? While we re at it, would you check and see if I have any annual fees. If there are any annual fees, reply: I don t think any of my other cards have those fees. Could you have them removed? Additional Tips: 1. Stay friendly and detached, not needy, during the conversation. 2. Remain confident and firm. 3. If you feel you are lacking confidence, practice before making the call so you are more comfortable. Remember, you really don t have anything to lose. 4. If you are told no during the process, ask to talk with higher management as needed. (Remember, they don t want to lose your business.) Be confident and firm and you will succeed. One Last Important Note: Once you have increased your limits and lowered your rates, remember, lose the consumer mindset! Do NOT go and use your new credit resources on consumer purchases. Only use your new leverage on sound investments that will make you money. Fair enough? Remember; make leverage work for you instead of against you! Page 9

10 Establishing Your Power Team Once you start building your business, finding opportunities and potential deals, you re going to realize you can t do this all on your own, and you re right. One of the biggest traps beginning investors fall into is that they try and do everything themselves. They think, I ll get my first deal done and once I make some money, then I ll build a team. Unfortunately, what usually happens is they get stuck trying to learn and do everything in a limited amount of time, then get discouraged by either getting no results or getting burned from doing it wrong, ultimately giving up. Here is another way to look at it. Let's say you began to develop an abnormal lump on your arm and it is getting worse. What would you do? Would you try and cut it out yourself or ask a neighbor to help? Of course not!! You would go to a doctor or expert that knew exactly how to treat the problem and had a proven track record. Obviously this is an extreme, but because of the way most of us have been taught, we don't normally approach other areas of our life this way and it makes a critical difference. Unfortunately, if you're alone, chances are you'll fail. It's almost guaranteed statistically. This is about working smarter not harder. This is the only way to run a successful real estate business! Not only will this make it more profitable but also more enjoyable! Every professional whether an agent, attorney, appraiser, etc, makes they re money through different methods but the fees are actually very minimal when you consider the money you make in comparison as an investor! Be sure to approach potential team members with a win-win mentality. For example, when calling you can say, I wanted to find out what services you offer to a professional investor. I d be interested to meet and see how we can work together, and I d be glad to refer you to the rest of my team. Page 10

11 You want everyone on your team to make money just from knowing you. Not only will they enjoy doing business with you, but you will be a higher priority in their business! Though you may not need every team member for the strategies you are focusing on, we will discuss the top 10. The 10 Most Important People to Have On Your Power Team (in no particular order): 1. A Title Company The Title Company is there to take care of the legal process including title insurance, researching the title to make sure there are no liens, preparing title abstracts, closing the transaction and filing the appropriate paperwork with the court house. Find a title company that does a lot of work with investors similar to you and does hundreds of closings a year. 2. Real Estate Agents: Anytime you find properties that are listed with an agent, commissions are already factored into the sales price. Whether or not you have an agent working with you the price is the same, so you should have an agent you can work with as the buyer. When looking for a real estate agent, you want to find one that primarily works with investors like yourself; otherwise you will probably miss out on deals that would have benefited you because they didn t know about them or have the right network to find them. Also, let them know you are interested in working with them on multiple transactions so you can build a lasting relationship. It is best to have two or three real estate agents for each market you are investing in so you have access to a larger network of opportunities. Page 11

12 3. Real Estate Appraisers: Hire a real estate appraiser that has completed at least a couple hundred jobs. You want to make sure they have a solid background. (Your real estate agent or mortgage broker should be able to give you recommendations of good appraisers in the area.) Also, establish a long term relationship with them as they can be a great resource for a lot of different projects. 4. A Rehab Crew: This is the group you will hire to fix up your properties when needed. Make sure you find a rehab crew with experience doing the type of work you need done. For example, if they normally do large commercial projects and you re planning on doing single family homes, it may not be a good fit. Also be sure you get a crew that is licensed and bonded. They can give you a copy of the appropriate certificate/s. This way you can make sure you are dealing with a legitimate crew that is legal and will do the work set by the standards of the city or county. 5. A Property Management Company: If you are planning on holding or renting properties for the long term, a property management company will be good to have on your team, especially as you accumulate a large number of properties. You can find them through referrals from your real estate agent, mortgage broker or others on your power team. When looking for a management company, you should find one that has been in business at least a couple of years to make sure they are established. 6. Home Inspectors: Many people don t take advantage of or understand the importance of getting a home inspection. Especially as you start to do a lot of deals, you ll see how this will not only help you increase profits but also help you avoid some very costly Page 12

13 mistakes. This will also help you avoid bad deals that could cost you tens of thousands in unexpected repairs. Never take that chance! 7. Mortgage Brokers: As I m sure you know, lender requirements have become more stringent with defaulting subprime loans in recent years; however good mortgage brokers can still find more competitive programs that many banks cannot match. Even with conventional lending, there are better ways to come up with financing than making a large down payment. Something else that is important to understand is loans for investment properties are different than residential loans. One thing that will help immensely is to work with brokers that are investors themselves and have at least a couple years of experience in the mortgage business. This way they will understand investment loan programs and know more creative ways to find financing. 8. Insurance Agents: Depending on what types of strategies you are doing, you will need your properties insured. One thing that is important to understand is different insurance agents can provide very different quotes. Some may have better rates based on the criteria they go by. This also means that just because one agent gives you the best rate in one circumstance does not mean they will give you the best rates in every other circumstance. Use two or three agents from different companies to shop for the best rates. After a while you will get a feel for which are usually best for the different types of properties you are insuring. 9. Real Estate Attorneys: One thing many beginning investors do is wait until they absolutely need an attorney before they look for one. Unfortunately, by this time it is usually too late. Find an attorney you can use before you need them. They can help you protect yourself and your assets, help with your contracts, the eviction process (if needed), or anything else that has to do with the legal aspects of your business. Page 13

14 10. A Mentor: This is one point of advice can make or break you. Get a good mentor! That may sound cliché, but if you don t, your results will often be mediocre at best. I say that not just because of the huge difference it has made through my own experience, but it is the one reoccurring factor I see that makes or breaks new investors over and over again. There are very successful investors who have already worked for years and have become proven experts in the field. Take advantage of that so you can avoid all the mistakes and do it the most profitable way possible! A lot of people make the mistake of trying to figure it out on their own. We tell our children not to do this but do we do it ourselves? Why take 4-5 years to figure something out, maybe even giving up, losing millions in income when you can go find someone that s already figured it out and learn from them? The point is, get a good mentor! As you begin looking, you obviously want to find someone that is accomplished, but they should also be a good teacher and have a genuine interest in your success. Part of what will make the relationship work is to approach them with the right mindset. For example, if you want someone to work with you (especially someone who s highly accomplished) it will require that you bring something of value to the table. What can you offer that will make it a win-win relationship? What s in it for them? Just like other aspects of the real estate business, you need a win-win mentality! Success breeds success. It has been statistically proven that a good mentor can make the largest difference in the level of a person s success, so take advantage of that! The rule of thumb that will make or break you: The more you utilize the expertise of those around you, the more lucrative and *easier* your business will be. Period. More on effectively building your Power Team and tips as it applies to individual strategies is included in the Creative Real Estate System 3.0. Page 14

15 Once you understand and apply this, you will be well on your way to achieve the fastest and most aggressive results possible! Work smarter not harder! Taking Advantage of Today s Real Estate Market We really enjoy the media coverage as they talk about unstable markets and falling house prices which will only bring gloom and doom for homeowners and real estate investors. I can understand where they are coming from; having little or no knowledge about investing and that is OK, because it just creates more opportunity for all of us. Real estate is cyclical and always has been. It will go up and sometimes it will go down. There was a large national article published that stated Las Vegas real estate had completely capped out and there was no place for it to go but down. Does that sound familiar? If so, you may want to think again. That article was published nearly half a century ago! Has real estate gone up in value in Las Vegas in the last 50 years? You bet, and not just a little! Now as real estate finally begins to stabilize to where it should have been before all the exorbitant appreciation happened, it makes this sky is falling media coverage even more invaluable. 1. It creates fear that scares off a lot of people from investing (creating more opportunity). 2. It eliminates aggressive scam investments (as we saw rampant with builders in Florida and Las Vegas in previous years). 3. It makes people question the value of their properties (creating much more flexible sellers). Here is something to consider: do you know any ultra-successful real estate investor that is afraid of flat or declining house prices? Quite to the contrary, knowledgeable investors understand when markets are flat or down it just weeds out beginning investors, makes people panic and means more opportunity. Page 15

16 What's important to understand is just as real estate is cyclical, so are the amount of buyers and sellers in a given market. When markets are up, you ll have to spend more time finding motivated sellers, but you have the benefit of appreciation on your side. When markets are down, you can t depend on appreciation, but you ll have a lot more motivated sellers to work with. In fact, when markets are down, you usually have to let good deals go, so you can take advantage of the best deals! (Detailed explanation for finding and determining the best deals and ways to effectively- find motivated sellers and buyers are included in the Program.) We re not just buying properties and hoping that they will appreciate or go up in value. That s not investing, that s speculating! You re completely dependent on future growth that is entirely out of your control. That s a conventional mindset and will not work in flat or declining real estate markets especially in the short term. Like any business, you need to make well calculated decisions. In real estate, that includes making creative, risk free offers and setting up your exits appropriately for the specific circumstances as explained in the Creative Real Estate System 3.0. In fact, when you do things right, you ll actually find more (and bigger) opportunities now in most areas of the country. Buying and holding for example, is one strategy that does work in stable markets, however, not in unstable or down markets. There are much more effective and lower risk strategies to use such as wholesaling/flipping, assignments, lease options (as a seller or a "sandwich"), and "subject to" arrangements. But even when doing rehabs or fixer uppers, which are not typically recommended in down markets, there are still good ways to make a good profit with the right system and proper planning. Since they take a longer period of time and there is more financial risk involved you ll have to factor in market depreciation accordingly. This is why faster, lower risk, strategies as described in detail in the program are better to use during market declines. The point is market conditions will not determine your success; it s how you approach your market and do what is appropriate for the current trends. When you structure risk free deals and make calculated Page 16

17 decisions, the market conditions will never be a determining factor of whether you make money or not! Determining the Direction to Take in Real Estate for Your Market and Goals You must first determine what your financial objectives are in real estate. Are you looking for long term growth, cash flow, immediate cash or combination of the three? 1. Quick cash for immediate income 2. Cash flow for passive or residual income 3. Long term growth possibly for retirement There are many different strategies you can utilize but they all essentially fall under one of these three categories. So in order to keep things simple decide what your financial objectives are and as we discuss the different strategies it will help you start to determine your game plan. Once you decide the areas that align with your financial goals, you can begin looking at specific strategies and applying them in conjunction with one another. Some are more advantageous for up, down or flat markets so it s important to apply what will work in your market. One of the big problems investors face is they try to use the wrong strategy in the wrong market. If you find you are getting poor results, chances are this may be your problem. If you are only focusing on one single strategy, that strategy won t work unless your market s fundamentals support it. As an example, the strategy of wholesaling requires more equity, since you are wholesaling the property to another investor. If you are searching for wholesale properties where the average houses are only 5 years old, it will be much more difficult to find enough established equity in the homes. Therefore, the fundamental need is not being met in the area being searched, so the results are poor. Page 17

18 You need the flexibility to determine the right approach to investing in your market that sidesteps the single strategy, one size fits all mentality! This is one of many benefits of the Creative Real Estate System. So let s discuss some of the different strategies to help you establish a good foundation. Creative Real Estate Strategies Conventional Methods There are several ways to make money in real estate, starting with the conventional ways of buying rental property or multi-units through conventional methods, but due to price increases and rates, in many cases it has made the concept of renting out a single family home difficult to create cash flow on, and unless you re putting up a large down-payment, you may even have negative cash flow on the property (meaning your rental income doesn t even cover the expenses). Obviously this is not a good place to be especially if you are trying to create cash flow or quick cash. Aside from some of the hassles that come from being a land lord, if you are just trying to accumulate rental properties, you will eventually run out of resources no matter how much money you have or how good your credit is. You will acquire some great long term cash flow properties along the way especially in lower priced areas, but if this is your only focus, you will experience some inherent limitations. This is why we are going to focus on more of the creative strategies that will build wealth, create cash flow and long term growth. Foreclosures, Pre-foreclosures, and Short Sales The first topic we will talk about is foreclosures. A foreclosure is a legal procedure whereby property used as security for a debt is sold to satisfy the debt in the event of default in payment of the mortgage note or default of other terms in the mortgage document. Basically this means the bank loans money to a borrower (the homebuyer) and secures the house as collateral. When they default on the terms of the agreement, the bank has the right to call the loan due or sale the property to satisfy the debt. Usually the borrower must be 90 days behind in order for the lender to begin the Page 18

19 foreclosure process. (A Nationwide Directory for obtaining this information anywhere in the country is included in the program). After this happens, if the borrower does not pay the amount owed in the given period of time, the house will be sold at a public auction. If at that point it still is not sold, the bank will then take the property back and go through the process of listing the property with an agent as an REO or banked owned real estate. There are 5 different ways you can make money in the foreclosure process: They are: 1. Pre-default 2. Preforeclosures 3. Foreclosure Auctions or Sheriffs Auctions 4. REO s or bank owned real estate 5. Short Sales Depending on what resources you have to work with, you will find certain angles to these strategies will work better for you. Capitalizing in foreclosures can most effectively be done when used in conjunction with other strategies, such as wholesaling/flipping, assignments, options and subject to agreements. One of the great things about the market corrections and changes is that it is creating incredible opportunities to make a lot of money in real estate over the next few years. In conjunction with short sales, you can even make money on properties that are upside down in debt with no equity. This means you can create significant cash flow, quick cash, and long term growth making it a great strategy for soft and declining markets. Detailed instruction for profiting effectively now in Foreclosures and Short Sales with all applicable paperwork is included in the program. Flipping, Wholesaling and Assignments This is where you tie up a property directly from an owner or seller at a discount and assign or flip it to another investor or rehabber for a quick profit. This creates the following advantages for you: 1. It s virtually risk free Page 19

20 2. There is no need for excessive cash, credit or any financing 3. You are not taking ownership so there are no closing or holding costs (interest, taxes, insurance, etc...) 4. You do no repairs or work yourself 5. It s great for generating quick cash Essentially you get a property under contract at a discount directly from a seller. Once under control, you can assign of flip it to another investor at a higher purchase price or for a flat fee. They take your place in the agreement by way of assignment, then purchase the property, take care of repairs and either keep it or sell it to someone else for full price. This is a great no risk strategy to create quick cash without using any of your credit or money. Since you have neither of these limitations you can also do as a many as you want making it a good cash flow strategy especially once you have a consistent system working for you. Detailed instruction for how to profit effectively when wholesaling and flipping properties with all applicable paperwork is included in the program. Fixer Uppers and Rehabbing Another approach is to be the investor that buys a discounted property directly from a homeowner, through the foreclosure process, or as an assignment from another investor. Adding value to neglected homes through quick cosmetic rehabs is one of the best leverage tools available to property investors. This strategy will depend on what resources you have to work with, but your profits will also be substantially higher if done properly. It will be very important you know how to calculate your actual repair costs so you can turn the property quickly. Property Reports and Checklists are included in the program to help you with this. One problem with beginning investors is they almost always underestimate repair costs and it kills them. On average, new investors underestimate costs by about 30%! Rehabbing is a good strategy for quick cash (when flipping) or cash flow and long term growth if you choose to hold the property for the long term. You will Page 20

21 need leveraging resources obviously, so take an approach that work s best for your circumstances and goals. Lease Options A lease option is an agreement between a seller and a tenant/buyer where the tenant has the option to purchase the property during an agreed period of time. There are different angles to applying this strategy for up, down and flat markets. As an owner or seller, this is a great alternative to renting and can give you more flexibility when selling a property in a soft market. As a buyer you can lock in an option price to maximize profits in appreciating markets, and you can use Sandwich Lease Options as an excellent no credit and little to no money down strategy. There are many benefits for buyers and sellers alike which make it a win-win scenario. Some of the advantages are: 1. The seller collects a non-refundable deposit which will go towards a down payment. 2. You can also ask a higher purchase price because of the flexibility of the terms. 3. This enables buyers who may not be in position to get financing, to lock in a price, and have a vested interest in a home they can eventually purchase. (This means less maintenance for you, as the seller) 4. Better cash flow - In many instances you are able to ask more for rent All of these Lease Option Strategies with applicable paperwork and how to apply them are specifically explained in the program. Buying Subject to The Subject to strategy is a great low to no risk, no credit, and no money down Page 21

22 vehicle when done correctly. It is a way to acquire more properties without credit and financing limitations. This term comes from the clause subject to existing financing. With this strategy you are leaving the existing financing in place and just taking over those payments. One thing we need to clarify is you are not assuming a loan. First of all, there are very few loans that are assumable any more and even if you find one that was, unless it was a non-qualifying loan, you would need to use your credit and qualify to assume it. Aside from that, even if you didn t have to qualify, the rate may be higher than you would want anyway. So for clarification, you are not assuming anything. We are also not talking about mortgage assignments or selling properties as investors subject to. With new laws such as the SAFE Act that regulate mortgage origination loans there is legalese which could get you into legal trouble if a deal didn t go as planned and you happened to be sued. Even now, there are different legal opinions on this subject and even though it s still pretty common, it s certainly better to be safe than sorry. You as the buyer take over payments on the sellers existing mortgage and your name does not go on the loan. In the program, we also show you how to use land trusts correctly to limit your risk and include the agreements as well as different options for seller financing. There are other strategies that we can get into but these will give you some of the best options overall that you can use in most any real estate market. A reference diagram is also included in the Creative Real Estate System that outlines each of the strategies, their benefits and when to use them for your current financial goals, circumstances and market conditions. Also, once you learn how to apply these strategies correctly, you can start using them in conjunction with one another. This is what we call strategy combinations and it is explained in the Program. This is one of the most effective ways to capitalize on as many opportunities as possible for markets that are up, down or flat. Page 22

23 Working Towards Your Goals Remember to keep your saw sharp. Meaning, don t let your knowledge or skills become dull. A worn blade needs to be sharpened and refined in order to work with maximum effectiveness. So it is with real estate or anything for that matter, things are always changing. A technique that worked last year may not work in the same part of town this year. So how do you stay in front of the trends instead of behind them? Jim Rohn, an extremely successful entrepreneur and trainer said, For things to change, you must change, for things to get better, you must get better. Your wealth will only grow to the level of your current knowledge to attain it. The more effective tools you use, especially now, the more you ll find deals where no one else can. The good news is we re providing the Complete System for today s housing crisis so you can take a maximum share of the profits as our market re-stabilizes. (Of course, the catch is these opportunities will not last forever). It has been entirely empowering for us and we know it will do the same for you. We are excited and look forward to helping you achieve your financial goals! To your success, Matthew Sorensen Creative Real Estate Academy Our system which is specifically geared for today s housing market with all the strategies, tools, forms, etc. is available at: You will never get so much for so little. This program stands on it s own with all the tools you need to successfully accelerate your business now. Page 23