Ok now this was the first real estate guy they had present at the Passive Income Opportunity seminar aka Never Work Again. His name was Bill Barnett (G. William Barnett II)
His big thing: Now is the single best time to get into real estate! (of course, we all know that tho.)
He calls it Real Estate NOW and NOW stands for New Order of Wealth. He says to make sure that who you’re learning your real estate stuff from is a product of what they teach. So basically they are doing in the field actively what they teach.
He’s also a fan of what he calls “rolling up” I’m pretty sure he means 1031 exchanges cause he says to start small and use it to buy bigger.
Keys to Real Estate Success
How to go from limited to success or from just plain failure to success?
Step 1- Getting your head on right
Key Question Am I going to go with the flow and follow the pack? or Am I going to realize the market we’re in and lead the pack!!!
Step 2- Shut out the noise
How to evaluate a real estate market!
Look at Job Growth- people go where the jobs are (census.gov.)
Does it have any serendipities- does it have any extra benefit? Like a beach? technology? beautiful? conventions?
Don’t listen to the media!
Shut out the bad & open yourself to the GREAT!
The great methods are the methods that are working TODAY!
**We’ll be in this state/market for the next 1 to 2 years.**
Step 3- Put into action
Action equals OFFERS and MONEY
Action also equals follow through.
Become a pro in the biz. The size of the check makes you a pro!
*Treat real estate investing as the profession it is (you should be making “athlete” money.)
*Stop making Spaghetti offers! (i.e. making tons of offers to see what will “stick.”)
How offers should break down:
Let’s take 20 houses we just looked at; do the math on all 20 houses, break down the offers after doing the math:
Screamers low ball spaghetti offers (10 of the 20 will be these) 20% or greater off of asking price.
Counters 7 or 8 of them will be decent enough that you’ll get counter offers. 10 to 20% off of asking price.
Golden 1 to 3 of them will be Golden and accepted. 10% or less off of asking price.
The counters and screamers will go in a future wealth file for you to revisit. ONLY SUBMIT YOUR GOLDEN OFFERS!!!!!
Putting money together to fund your deals.
***Becoming the investment of choice (for people with money)***
Which do you do first? Make offers or get money? You do BOTH!
The 4 Questions to Becoming the Investment of Choice:
1) What’s my rate of return? (10 to 14%)
2) What’s my risk? (You have a 1st lien position in below market real estate)
3) How long is my money tied up for? (6 to 9 months, unless you choose to leave it in the deal)
4) How much money is required? (This is gonna depend on the deal you’re currently working on)
Solid Gold Script to Get Private Money
Harv, I know this isn’t for you, but who do you know, that might be interested in earning 10% to 12% on their money, secured by a first lien in below market real estate, short term 6 to 9 months?
When someone shows interest ask them the following 2 questions:
1) How much do you have available to lend?
2) How much lead time do you need to get access to the funds?
*Always use a 3rd party for your private money transactions. 1) Real estate lien note and 2) Deed of Trust*
3 areas of profit in real estate:
1) Wholesale – speed
2) Rental – passive income/never work again
3) Flips – big checks
Seller Financing(to sell your properties) *Sell your properties for 10% more by offering seller financing.)
1) Wholesale – this is your down payment that you receive.
2) Rental- this is the monthly spread that your receive.
3) Flips – this is your big check that you’ll receive in 3 – 5 years by a refinance
When you are seller financing deals for buyers charge them 8% compounded interest.
When you are borrowing money from private lenders pay them 10% simple interest.
For those of you looking for private money….how about some homework?
1) Create a HOT 100 list! List at least 100 folks that you know. Start right now with 50.
2) Use the “Solid Gold Script for Private Money” on at least 3 investors that you know with money and then use it on everyone from your HOT 100 list.
If you choose to do this….please come back here and report your results!