Ninety percent of all millionaires become so through owning real estate. -Andrew Carnegie

Transcription

1 1 P age

2 Copyright 2013 Christopherseder.com. All rights reserved. No part of this book may be reproduced, transmitted by any means, electronic, mechanical, photocopy, and recording or otherwise without written permission from the author. Feel free to mail your questions to P.O. Box 475, Hardin MT or 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 author strongly encourages the reader to consult with an attorney prior to entering any real estate transaction and contract and before taking any action on the material written or presented by the author. 2 P age

3 Introduction I want to congratulate you for getting one step closer in your pursuit to financial freedom through real estate investing. Right now is the best time in history to start making money in real estate investing without any of your own money, any credit or experience. This 7 Step Quick Start Guide is designed to show you just how easy it is to go out and find killer deals (vacant houses) and then easily flip those deals to other investors for quick profits or even keep those deals and make HUGE profits. If you are reading this you have probably discovered that finding killer real estate investing deals is not the easiest thing in the world. Right now there is more competition than ever before; it seems that everyone (even my grandparents) is making offers on houses. If you re like most people you are either making offers on listed property (realtor) or you are sending letters to the same list everyone in your area is sending too. Right now it s getting harder and harder to find sellers who want to sell at a deep discount or every seller you talk to has 14 offers on their property and they want the highest and best offer. What if I told you there is a better way? And you might have guessed what the better way is already; I mean the title of this book is VACANT HOUSE RICHES. Yes I am talking about going out and finding vacant houses that no one else knows about and flipping them for HUGE profits. We both know that real estate investing is the fastest and easiest way for the average person to achieve financial freedom, right? Look at what some of our countries greatest men have said about real estate. Ninety percent of all millionaires become so through owning real estate. -Andrew Carnegie The major fortunes in America have been made in land. -John D. Rockefeller The small landholders are the most precious part of a state. -Thomas Jefferson I know from experience that real estate investing is the fastest and easiest way to financial freedom. I have been where you are now, but figured out a proven way to go out and find vacant houses I could easily flip. I want you to use this quick start guide as a blue print. Go out and start finding vacant houses. 3 P age

4 Right now you have 2 choices. You can either go about finding real estate deals the same old way: By making offers on the MLS, having your realtor come back to you saying the seller has 15 others offers and then finding out you were out bid by 80,000. Or you can go out and start finding vacant houses that have ZERO competition that you can buy for pennies on the dollar and easily flip working less than 4 hours. With that said, let s get into the good stuff! To your success, Christopher $eder 4 P age

5 2 Popular Real Estate Strategies Before we jump into the finding vacant and flipping vacant house process, I want to give you a quick overview of 2 of my favorite real estate investing strategies. The first strategy uses no money, and no credit. And you can do it working less than 4 hours. Strategy # 1 Wholesaling Real Estate Find a Motivated Seller that is willing to Sell the Property at a Discount. Sign a Contract to Purchase the Property Market the Property to other Real Estate Investors in your Area. Assign your Contract to one of them or Double Close Wait and Collect your Check. You earn a profit as the middle man 5 P age

6 Strategy # 2 Rehabbing Real Estate Rehabbing is simply buying an ugly property, fixing it up and then re-selling the property for a profit. Our rehab profits typically average between $30,000 and $40,000. A project from start to finish will run around 120 to 180 days on average. It takes around 30 to 60 days to fix up a project, then another 30 to 60 days to get a property sold to an end buyer and for them to get financing. Rehabbing is a great strategy to accumulate large sums of cash. Purchase The Property (Cash or Private Lender) Put together a Scope of Work (What needs to be completed) Find 3 to 5 Contractors to bid on the JOB Sign contracts and documents with the contractor (This is a must) Get the Job Started and Manage the Project Job Complete Final Walk through and Pay Contractors Sell the Property FSBO or Realtor Collect your Check! 6 P age

7 Step 1: Market Research In order to become a successful real estate investor you need to know your real estate market like the back of your hand. The goal with market research is to find out which area of your city is the best place to wholesale and to buy houses. What we are looking for is an area where there is a high number of recent cash sales and also an area where there is high inventory. The reason we look for areas with high sales and high inventory is because these have been proven to be areas where we can easily find cheap houses and also because there are a lot of sales in these areas - we can sell our houses FREAKY FAST for huge profit. In order to become a successful real estate investor you need to know how to do market research correctly. We have discovered a way where anyone can do 10 years of market research in less than 2 hours. 98% of real estate investors go about doing market research the wrong way. What we focus on is finding the absolute best areas to start flipping houses in. We use software called Microsoft map point to easily map every sale in our area in the past few months. This way we can, without a shadow of a doubt, determine where the most sales are and what the exact prices other investors are paying for houses. The way we do market research, you will never have to worry about prices again because you will know everything about your market down to the specific neighborhoods. 7 P age

8 Step 2: Finding Vacant Houses The next step in our process is to actually get out and find vacant houses. There are around 7 strategies we use in order to find our vacant houses. All of our strategies are designed to help us find as many vacant houses as possible. In order to actually find vacant houses you first need to know why a vacant house might be vacant and what to look for. Vacant houses are vacant for several reasons. In this quick start guide I want to share with you what I think are the 2 most common reasons why a house might be vacant. The first reason is that a landlord just had a renter move out. A lot of times when a renter moves out, a house may need to be renovated, and it might sit vacant for a few weeks or several months. Some landlords do not always have the extra $5,000 to $10,000 it might take the fix up the property, so it sits vacant until they can get that cash. The second reason why a property might sit vacant is because the property owner has passed away and the property is going through probate. It is also very common for an inherited property to sit vacant for months or even years before the heirs decide what to do with the property. In order to find these types of vacant houses, we need to be consistent and out looking for vacant houses. In order to spot vacant houses you will need to know a few signs that a house is vacant. One of the best signs is when the grass is grown up and there are newspapers all over the porch. Inside Vacant House Riches, I talk about 20 signs a house might be vacant and how to spot vacant houses the moment you glance at them. Once you have found several vacant houses you will then need to find out who owns the property. 8 P age

9 Step 3: Marketing and Finding Vacant House Owners Marketing is the foundation of any great real estate investing business. Every big time real estate investor knows that you need to have consistent real estate leads coming in every month or you do not have a business and you will fail. In order to be successful, you need to have leads coming in that are predictable, scalable and consistent. They need to be predictable because you need an easy way to have leads coming in every month - the same exact amount of leads coming in every single month. If you want to swim with the sharks you need to start marketing like the sharks. Or if you want to stay in the minnow pond and luck upon a deal once every 6 months, then keep doing what you are doing. Why does your marketing need to be scalable? Because you have to have the ability to ramp up your marketing at some point in time when you are more successful and really turn your business into something great. In order to really become successful, you need to be able to grow your business and grow your marketing. The last component of good marketing is being consistent. Successful real estate investors have their marketing down to a science. They know that every single Monday morning their marketing will be going out. Minnow and new investors fail big time in this aspect. They send out mailers once a month and then don t send any out for 3 more months. In order to be successful you need to be consistent in your marketing and make sure it is getting done weekly. What do we do for marketing? For marketing we have started to use direct mail almost exclusively. We have found ways to save thousands of dollars each month with our direct mail. Over the past few years we have also tested hundreds of direct mail campaigns and have found proven marketing methods that consistently get us between a 10% and 15% response rate. The industry average is around 3%. As you can see we have almost perfected our marketing. Inside our Vacant House Riches course we go into detail on how we do our marketing. We even hold your hand and show you every single thing we do in order to consistently have success with marketing. In order to actually make Money You Must Find Home Owners! 9 P age

10 If you want to have success with vacant houses you need to know how to go out and actually find home owners. Once you know who the homeowner is and what their address is, you can then either send them one of our proven vacant house letters/post cards or you can give them a call. We use several private eye techniques to locate sellers that are hiding. 10 P age

11 Step 4: Pre-Screening and Evaluating Deals Once your marketing is working and you have Vacant House Owners calling you like crazy, it s time to start pre-screening the sellers and cherry pick the best deals. The first step in evaluating deals is that you go through a lead sheet or a script with the sellers. You ask the sellers specific questions designed to help you build rapport with the sellers and also help you quickly determine if you have a deal or a dud (waste of your time). Once we go through our lead sheet, we then run comparable sales. In our business we do not run comparable sales like the rest of the real estate investors out there. We use the data that we pulled from our market research phase and the software Microsoft map point. We then can easily enter in the address of the subject property and in 1 second find out everything we need to know about an area including CASH sales and recent sales. Here is a screen shot of our super-secret software below. Believe me when I tell you the way we do market research will change your business forever. How would you like to have MLS data even if you are not a realtor? Data that you can use to run your comparable sales and determine what a property is worth in less than 7 minutes. Once we determine exactly what a house is worth we can then use a proven formula to find out exactly what to offer on the property. All of this takes us about 7 minutes to do. Yes 7 minutes. We have created a proven process that you can use to evaluate deals in 7 minutes or you can easily show someone else how to evaluate deals in 7 minutes. Once you have determined exactly what to offer you will need to actually make an offer. In order to actually put a property under contract you need to make the seller an offer. You can either do this over the phone or you can fill out a simple purchase and sale contract and send it to them. For the initial offer, I like to just call the seller up and tell them exactly what we can pay for the property. If we agree on a price then we write up a contract (takes 2 minutes) and it over to them. 11 P age

12 Step 5: The Art of Selling Your House When wholesaling a property, we are looking to assign our contract (selling our right to purchase) to another buyer who is going to buy the property and pay us an assignment fee. Our typical assignment fees range anywhere from $1,000 to $20,000. If you need more information about assigning your contract, I created a whole section just for you inside my Vacant House Riches Course which you can find in the members area of my Vacant House Riches. We like to work with buyers who can pay all cash and can close fairly quickly. When a buyer pays cash it makes the real estate transaction run a lot smoother because we do not have to deal with the buyer getting a loan, then the bank requiring an appraisal, inspection and so on. CASH buyers will make your life easier and I highly recommend you only work with cash buyers. We find cash buyers several different ways. One of the best ways to find cash buyers is by networking with investors in your area. You need to get out and just start talking to people and find out where the biggest and best Landlords, Rehabbers and real estate investors hang out. Once you have a smoking hot real estate investing deal, cash buyers will be hunting you down. I highly recommend you focus most of your time on finding awesome real estate deals. Finding cash buyers right now is the easy part. If you would like to learn how you can sell Houses for HUGE profit and make $40,000 or more per deal you should check out the Vacant House Riches Course. 12 P age

13 Step 6: Creating an Army of Property Scouts to Find Vacant Houses for You. The next step in the process is where you start scaling your business and having people bring vacant houses to you on a silver platter. In order to do this you need to start outsourcing vacant house finding processes. We hire Property Scouts who are always out searching in every nook and cranny for vacant houses. How easy would real estate investing be if you had ZERO competition and you had vacant house deals brought to you daily? Step 7: Repeating the Process The last step in our process is to repeat the process over and over again. Once you have flipped your first vacant house deal, it gets easier and easier. Pretty soon you will be able to flip several houses each and every month. Remember to always document your process so you know exactly what is working and what to eliminate. Get out and start finding more vacant houses! How to make $1, per hour - A Case Study! I want to tell you a little story about a recent wholesale deal I completed. This Deal took me a total of around 4 HOURS to complete. Yes 4 hours of work. Let s start from the beginning P age

14 A few weeks ago I was driving around a few neighborhoods. Looking for Vacant Houses, and looking for fixer uppers. This day I had compiled a list of about 50 or so vacant houses that I would send a Letter too. Over the next few days I had sent out several letters and my phone rang like crazy. One call was from a lady who had a rental property that she said was a DUMP! Over the phone I negotiated with her (she was a tough negotiator). But we finally settled on a price of $55,000 CA$H, which I thought was fair. I ran comparable sales on the property, and fixed up it would be worth around $140,000. The seller s husband who was on title was out of the country but she gave me his and I sent him a contract for $55,000. The next day he ed me back a signed contract. I had a deal... I then went and looked at the property, my over the phone estimate of about 25,000 to 30,000 in repairs was spot on... I then called an investor (cash buyer), who came over and looked at the property. I offered the property to him for $63,000, he said he would take it and the next day I had him sign an assignment of contract for $8,000. I took the contract and the assignment to the title company and my work was pretty much done. The title company then handled all of the closing and sent me a check. One small thing that the title company had to do was to get the Seller (who was out of the country), to go to the US embassy and have all of the closing documents notarized (I paid for this, for the seller; I know, I am a nice guy ). Once all of that was complete, which only took 1 week, the property ended up closing in less than 3 weeks after I put the house under contract. As you can see I really did not do a lot of work and cashed a Check for $7, plus a $500 earnest money deposit paid by the buyer. This all started with my going out and finding a Vacant House P age