Transcript BUYING AND SELLING REOs- Bank Owned Properties

Week 4
REO Boot Camp
with Nancy Geils
What We Will Cover
 Review Last Week
 Getting Business Lines of Credit and Business Credit
Cards
 How to Set Up An LLC
 Best Credit Cards to Use
 Making Your Offers!
 Proof of Funds and One Day Funding
 Rehab and Flip
Successes!
 Congrats to Barry in Atlanta who just closed on his
first deal making $4500!
 Congrats to Shaina in North Carolina got her first
property under contract.
 Congrats to BJ in California, just got his cash buyer
under contract and getting ready to close!
YEAH!!
Inside Scoop
 I was talking to a mortgage broker whom I found on
LinkedIn. He said that HSBS is going to be dumping
the largest amount of foreclosures ever.
 I asked “Why are they holding onto them for so long”?
 If they dump them all at once it will be devistating to
the economy and the market because it will bring the
market down even more than it is now! Very
interesting…
Tricks To Finding the BEST Deals








Place a newspaper ad
Place an ad in the Penny Saver
Bandit signs, supercheapsigns.com
Drive thru neighborhoods looking for vacant houses
and FSBOs (put a note in their door or mailbox telling
them to contact you because “you buy houses”
Contact landlords with properties for rent
Contact other wholesalers
Magnetic car sign (Get Them!)
Distribute your business cards EVERYWHERE
More Tricks
 Foreclosure auctions
 Hud and VA houses - www.hudhomestore.com
 Network with professionals (i.e. attorney, CPA,
Realtors and even postman and UPS man!
 Use all of these or a combination to find motivated
sellers
Review
The Steps “How to Wholesale Bank Owned Properties”
1. Submit offers for REOs with proof of funds letters
2. Contract to Buy the Property with the Bank
3. You have your Buyer’s List already created and you send
an email and contact each Rehab Buyer.
3. Get property under contract with you new Rehab Buyer
4. Submit papers to your lawyer and to Ivisionary for one
day funding (unless your using your own money to close
the deal, then you don’t need Ivisionary)
Find the Property Deals to
Wholesale
 Buy Low and then sell it to another investor for a low
price” so that it is a win-win for everyone.
 Everyone has to make money! Win-win situation.
 BUY LOW, SELL LOW! Don’t Get Greedy! Rinse and
Repeat!
Building Your Buyer’s List
 Don’t wait until you have a property under contract,
start building NOW, and don’t stop adding names.
Remember these investors are potential repeat
customers so your reputations is imperative.
 If you wouldn’t buy it yourself, don’t try and wholesale
it!
Some Questions to Ask your
Investor Cash Buyer?
 How soon after seeing the property can you close?
 I will require a $1000 earnest money deposit if you
approve of the property and want to sign the
contract, is that ok with you? You don’t want to
spend time with investors who will not be able
to pay at least $1000 in earnest money. The
investor’s ability to handle this amount quickly and
without hesitation will tell you a lot about them.
 Do you need to see the property? I have a few others
who are interested but what’s the time I can show
you what a solid deal this is?
Remember This Deal?
 I made offer of full




asking price $265k
ARV = $400 – 450
There were over 10 offers
that came in!
Realtors calling the
listing agent like crazy
Bank came back and said
that they want “owner
occupied” !
 Wells Fargo
You Probably will Need Some Cash
 From time to time you will need some cash for either a
down-payment or earnest deposit or for repairs on a
house! If you have access to some credit it makes
things much easier for you!
 www.creditcards.com
 Business credit cards do not report on your personal
credit report!
 If you have an LLC, you can get a business credit card
 Apply for a few! If you have decent credit…you must do
this! Just be responsible with the card!
Getting Your LLC Set Up
 Tax Savings - As an LLC owner, you can deduct business expenses since
you and your business will be two separate entities. LLC is not a separate
taxable entity, but is instead a pass-through entity. This means that only
the members (not the LLC) are taxed. This prevents any possibility of
double taxation.
 Total Business Control - An LLC allows you to maintain full control of
your business, and its day-to-day management. There are no mandatory
annual general meetings for shareholders, and no board of directors.
 Choose a Business Name - As your first step, you must choose a good
business name for your LLC. To do this, you will need to conduct a name
and trademark search to make sure that no one else is using the same
name. All you have to do is call your Secretary of State Office and I have
found that if you put “Group” on the end of any name you want, it will be
available. My LLCs are my animal’s names – Sammy Group LLC, Mollie
Group LLC and Jingles Group LLC
Creating Your LLC
 In Connecticut the LLC formation document is called
the Articles of Organization. Once it’s prepared, you’ll
file your Articles of Organization with the Secretary of
State. The Articles of Organization should include
your LLC's name, its purpose, its address, and the
name and address of your registered agent. Then you
would fax this information to the number you get from
the Office of the Secretary of State with dollar amount
that is required for your State! It is usually around
$100.oo to set it up. That is it! Simple…
Once You Have an LLC Set Up
 It’s time to put in an offer! How do we do it?
 Okay! Here we go! You found a deal…
 You tell your Realtor you want to make an offer! If
the house listed at $100k, put an offer in for 15 –
20% less to start!
 Type your Proof Of Funds Letter and Print!
 http://www.ivfinancialsolutions.com/pof/
No Contingencies except…
No contingencies are to be put in the offer except that
you want a 10-15 days to do the inspection!
This gives you time to get your cash buyer lined up
and/or get out of the deal if you can’t get a buyer!
The Bank Says Yes
 The bank has accepted the offer – Yikes! Okay get your
buyer’s list out and START MARKETING! THIS WILL
BE YOUR BUSIEST WEEK – BUT KEEP IN YOUR
MIND YOUR MAKING 5k – 10k!!!!!
 Make Your Flyer’s, call your buyer’s on the list, put the
deal on Craigslist, put your deal on websites I gave you
last week! www.postlets.com, www.rehablist.com,
www.backpage.com
 Our Real Estate Investor Associate has a “advertise
your deals” section – post it there if they have one.
My Email/Flyer I use to send to my Cash Buyers
Your Price- Only $55,000
Fair Market Value- $95,000
123 Main Street, Bridgeport CT
3/2 1200sq ft Very Good Condition, Cosmetic Repairs Needed
only (Approximate $3k)
Major Profit Potential on this one- you do the math! First Come
First Serve!
Call me at xxx-xxx-xxx
Your Buyer Says he wants the house
 Now you get your Buyer to sign YOUR contract.
 I will send you my contract that I use
 Submit these documents, all of them, to your Attorney
and to place you are getting your funding!
 If you have cash to close, then submit paperwork to your
Attorney or Title company. If your using Ivisionary
Financial, call them and see where to submit the papers
and contracts.
RINSE AND REPEAT
 COLLECT YOUR CHECK! OKAY, THAT IS IT! GO
DO IT AGAIN AND MAKE LOTS OF MONEY!
SPECIAL BONUS!!!
 YOU ARE INVITED TO ATTEND THIS COURSE
OVER AND OVER AS MANY TIMES AS I DO IT!
“Nancy, I found a deal that I want
to keep! Buy, fix up and flip…”
 Ok, your ready to take the next step and buy, fix
and flip. The profits are most of the time, much,
much more but keep in mind there is more risk!
But…
 If you buy right, only fix up what needs to be fixed
and don’t go crazy with rehab costs and sell under
market value…you can make a boatload of cash!!
Rehab and Flip
 This is a ‘whole different ball game”
 The Steps to Buying and Flipping are:
 Find a great deal
 Do your Due Diligence
 Find the ARV
 Find you MAO
 Make an offer, negotiate the lowest possible
 Buy and close with bank funding, hard money or
Cash!
Where are Hard Money Lenders
 There are many of them. Try going to Google and
search for hard money lenders in your State
 The one I use is www.brookviewfinancial.com
 If you call them speak to John McEwen and tell them
I sent you!
These lenders are very expensive. The cost of money is
anywhere from 2-5 points upfront and 12-15% interest. So
if you are using hard money you must have a really good
deal! I have used them many times. I believe some
money is better than NO Money!
When You Close The Deal
 Now you own the house and getting it sold the fastest
way possible is the KEY!
 Fix the house up as fast as you can at the least expense.
 Hopefully you have lined up your handymen or
contractors before you closed on the house!
 Once you have a deal and the house is under contract,
the Realtor will always let you bring in people to get
estimates on fix up costs
Bought $250,000,
Rehab Costs $30K, Sold For $345.00!
 Before
 After
Bought for $140K, Rehab 25K, Sold
for $ 245K
 Before
 After
Be Careful How Much Rehab Is
Needed!
 When you are buying a rehab make sure you get an
inspection done so that you know that the house is
structurally sound and that the repairs you think it
needs is really ALL IT NEEDS! The last thing you want
to do is buy a house, realize it needs so many more
repairs than you thought and make NO PROFIT!
 If you are thinking of doing this strategy and are a new
investor I recommend you have a Coach that will guide
you so you don’t make any mistakes!
Social Media - Facebook
 Quick Tutorial on “How to Advertise on Facebook to
find Cash Buyers!
 http://www.facebook.com/ads/create/?act=42385894
If You Want To Continue Working
With Me!
 Thank you so much for being on the training! I
enjoyed working with you and wanted to make an
my new one-on-one coaching program available
to you if you feel you need more training and more
coaching!
One-On-One Coaching
 I have opened a Coaching program for all of you!
 It is a 12 week coaching program where you and I meet
personally each week on the webinar and we go over
your goals, your strategies, what your working on, how
I can help you, and I hold you accountable to get’r
done! This way you are guaranteed to make this work!
I won’t let you off the hook! Because this coaching
takes so much of my time, I can only take a handful of
students. In this coaching, I guarantee you will get
your first deal done providing you do all the steps and
you take ACTION!
Coaching
 Usually I have my coaching students fill out an application
to tell me why they want coaching and how committed
they are before I will accept them into my coaching
program.
 I want students who are willing to really go above and
beyond and do what it takes to become successful. I
can tell you what to do, and trust me, I will! But, if you
don’t do the steps and take the action it won’t work for you!
 Because you were on the training and I can see how
committed you all are, I will not require you to fill out the
application to apply for my coaching program!
Are you convinced as I am that I
should be your Coach?
 I am sure by now you’ve already discovered all of the
positive reasons you should work with me and be
realistic about your future and how I can help you
achieve your goals and increase your income.
 Are you starting to think of all the reasons, why it will
be easy to sign up for coaching today so I can help you
expand your income? When you sign up now you’ll
know you made the right decision. Shall we do it now?
You can sign up now at
www.nancygeils.com/personalcoaching or call me at
800-804-5390.
Thank You For Being Here
 Thank you for being on the REO Training Boot camp. I
wish you all the success in the world! Don’t forget you can
join my REO boot camps for FREE anytime I have them
available! Also, please continue to email me with your
questions and successes! [email protected]
** I would love your testimonials for my website!
If you liked this training, please write to me and tell me what
you liked about it in a short paragraph so I can add it to my
testimonials on my website!
 For more information on my Personal Coaching One On
One Program go to:
www.nancygeils.com/personalcoaching