Transcript Focus Friday - FORTRIS Tax Sale Training

Special Operations
Mastery Event
June 16
Review
Money Tasks
Vs.
Optimization Tasks
Special Operations Mastery Event 2013
Optimize Profit
• Buying Criteria
• IRAs
• Private Money
• Outsourcing
• Fortris Rehab Network
Special Operations Mastery Event 2013
Optimize Profit
• Trailer Conversion
• Cashing in on Overages
• Markets for Buying
• Generational Wealth
Special Operations Mastery Event 2013
Buying Criteria
Deeds
• 60% of repaired value minus
repairs cost
• Don’t have to pay more, keep
looking
• Residential or Commercial
Special Operations Mastery Event 2013
Buying Criteria
Liens to Redeem and pay int
• 30% of estimated value
• Residential or Commercial
Special Operations Mastery Event 2013
Buying Criteria
Liens to Become Deeds
• % of estimated value depends
–Luzerne 225k value 19k tax
–Newburg NY 395k value 150k tax
• Residential or Commercial
Special Operations Mastery Event 2013
Investing With IRA
• REAL Self-Directed Custodian
– Camaplan.com
• Roth or Regular
• Check Writing
• LLCs owned by IRA
Special Operations Mastery Event 2013
Investing With IRA
• Saves a TON of MONEY in
taxes whether you are flipping
or holding
• UBIT
• Self Dealing
Special Operations Mastery Event 2013
Investing With IRA
• How to invest with IRA
–Fill Form
–Don’t mingle money
–Proceeds back to IRA
–Income to IRA (rentals)
Special Operations Mastery Event 2013
Private Money
• Don’t Take It Lightly
• Don’t Sign Personally
• They Need to Make Adult
Decisions About the Deal
• ALWAYS SECURE THE MONEY
• Get them Out Soon, Don’t Drift
Special Operations Mastery Event 2013
Private Money
Common Arrangement
• They lend for Interest
• They partner in deal
• You Fly they Buy, split profit
–How many of these do you need to
be independent?
Special Operations Mastery Event 2013
Private Money
How to Present
• Balance Info, Not Too Much
• Price, Repairs, Value, Repaired
Comparable sales, Comparable
Actives
• One Page for Specific Deal
Special Operations Mastery Event 2013
Private Money
How to Present
• If you have no deals, Forget the
Credibility Kit. Waste of Time
Special Operations Mastery Event 2013
Private Money
How to Transact
• Private money Instruction letter to
Attorney (example)
• They Preview Note beforehand
• Even if partner, secure money with note
• Prevents Problems
Special Operations Mastery Event 2013
Private Money
Summary
• It’s only Leverage if used correctly
• You better know what you’re
doing
• Get Experienced Partner
• Private Money uses IRAs
Special Operations Mastery Event 2013
Outsourcing
CAN BE HUGE MONEY MAKER
• Leverage Labor for tasks that help
you make money
• Must measure the Cost vs Return
• WHEN should start outsourcing?
Special Operations Mastery Event 2013
Outsourcing
Tasks for outsourcing
• Get List (Command Center)
• Filter List land vs structure
–Support Ticket or you hire own
• Hand you list ready to evaluate
– Must Evaluate and Monetize!
Special Operations Mastery Event 2013
Outsourcing
Who to hire?
– Someone local
– 123Employee.com
– Easy Payment
• Reliable and Consistent
• Some Tech Skills, English
• Use Fortris video to train them
Special Operations Mastery Event 2013
Special Operations Mastery Event 2013
Fortris Rehab Network
Nationwide Vendor Network
• Taking Advantage of Volume
• You’re in by coming to event
• Order through Fortris and get
20% off most material
Special Operations Mastery Event 2013
Fortris Rehab Network
Details will come
–Site to choose products
–Instructions on how to purchase
–Policies..etc.. Look for emails
Special Operations Mastery Event 2013
Cashing in on Overages
• Property Owner is owed
difference from Foreclosed bid
and tax amount owed
• County doesn’t do a good job of
contacting them
Special Operations Mastery Event 2013
Cashing in on Overages
• Get List of Foreclosed Property
• Look at case # to see how many were
involved, have to find ALL
• Find people on list
– Friends
– Family
– Last known addresses
Special Operations Mastery Event 2013
Cashing in on Overages
• Mail them & call them
• Get them to believe you
“Hi I have money for you, I promise
I’m not a Nigerian Scam”
Special Operations Mastery Event 2013
Cashing in on Overages
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They sign paperwork
Submit to county clerk
Wait for county clerk
Submit to county clerk
Court says Yes
Special Operations Mastery Event 2013
Cashing in on Overages
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Submit to county treasurer
Wait for county treasurer
Submit to county treasurer
Wait for county treasurer
Check shows up
Deposit check, send to client
Special Operations Mastery Event 2013
Cashing in on Overages
Cons & Pros
• Response rate is low
• Some counties try to limit fee
• Hard to find people without
expertise even on internet
• Know how to work county
Special Operations Mastery Event 2013
Cashing in on Overages
Cons & Pros
• Selling money is a nice product
• You don’t need real estate eval
experience
• Will never go away
Special Operations Mastery Event 2013
Cashing in on Overages
Summary
• Hard, not sure we’re going to
keep doing it when other things
are making more money
Special Operations Mastery Event 2013
Markets - Where to Buy
• “Where” to look depends on what
you can do (investor type)
• If investor type limits you to certain
strategies, learn what states don’t
facilitate that strategy
FL & NC for example
Special Operations Mastery Event 2013
Markets - Where to Buy
• Look at tax sale calendar (cc)
• Can you pursue strategies for the
upcoming auctions?
• Look at markets within that state
to narrow down the counties to
get lists in – Rising tides
Special Operations Mastery Event 2013
Markets - Where to Buy
• Jobs = Industry moved in
• People coming or going?
• Income level
• Near bigger City?
Special Operations Mastery Event 2013
Markets - Where to Buy
• City-data.com
• NACO.org
Make your own “WHERE” by
immersing in the calendar and seeing
what strategy you can apply
Special Operations Mastery Event 2013
Trailer Conversion
• How you can get trailers in tax
sales
• Convert to Financable property
• All About the Foundation
• Are there enough to go around?
Special Operations Mastery Event 2013
Trailer Conversion
Contacts in Command Center
–Engineering contact
–HUD approved contractor
–De-license the trailer
–Discussion video
–Call Fortris
Special Operations Mastery Event 2013
Success Tasks
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Reviewing Lists is everything
List Management is the MONEY
Find Properties – All exits rely on this
Outsource if necessary
Must Become Routine!
Special Operations Mastery Event 2013
Success Tasks
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Save with IRAs
Do deals with Money Partners
Save on Rehab Costs
Can turn trailer lemons into lemonade
Special Operations Mastery Event 2013
Generational Wealth
Passive Income
Work Once, Keep Getting Paid
Think Longer Term
The Next, Next
Special Operations Mastery Event 2013
“ At One Point in Your Life You Either
Have the Thing you Want or the
Reasons Why You Don't “
- Andy Roddick
No Excuses
Special Operations Mastery Event 2013