Rapid Real Estate Investing Results

Please read this entire post because I want you to know what is going on..
I’m trying to stay pretty low key with you, but I also want to remind you of something before you take off for the long weekend.

This is me writing to you because I’m genuinely concerned about where we are heading.

The other day I let you know about a report that I’m offering to folks looking for commercial real estate funding or business funding.

Even if you are not looking for commercial or business funding, I would recommend checking it out.  I think you will get some great ideas even for a residential loan request.
I can not help you right now with funding on residential (I’m working on it though), but I think it has some great ways to help you out, just translate it to what you want funding for in residential and then take that to a local community bank, private lender or hard money lender.

http://GetCommercialFundingHelp.com

Leave some comments on my funding blog once you have a chance to look it over.
Go to the first link up there for the report and then leave your comments at the second link.
Please Leave Your Comments over here
http://myrealestatefunding.com/blog/commercial-real-estate/who-else-wants-to-know-how-to-get-your-commercial-real-estate-loan-request-approved
____
Now, back to my “Decision Time” subject.
Why decision time?

118 bank failures this year.  It’s only Sept. 3rd!!!
Last week the FDIC took a break from the shut downs.
I would not be surprised if they take a break tonight either since it’s a holiday weekend.
If they do, watch out next week bankers!!!
I heard from someone very close to the financial “Experts” the other day that over 1012 banks are on the FDIC watch list right now.

That’s after we had
2008 – 25 failed
2009 – 140 failed
2010 – 118 failed (and still counting)

Still over 1000 on the watch list?  Ouch!! That is a big number considering there are only 7932 banks insured by the FDIC.
To be sure, no one really knows how many are on the “Watchlist” exactly except for the FDIC and it’s cronies.
Compare today with the S&L crisis from 1989-1995 – 747 “Resolved” or closed thrifts with over $390 billion in assets.

We have 283 closed banking institutions in our current crisis and it is FAR from over.

Don’t believe me, here is the FDIC failed bank list.
http://fdic.gov/bank/individual/failed/banklist.html

This is a very interesting article written in the Wall Street Journal two years ago on Sept 17, 2008.  It discusses the crisis as it was unfolding then and what the writers believed should be done about it.
http://online.wsj.com/article/SB122161086005145779.html

Here is the wikipedia article documenting the S&L crisis of the late 1980′s.
http://en.wikipedia.org/wiki/Resolution_Trust_Corporation

Well, listen, the world is not going to end today or any day soon if you don’t get in to Bulk REO.  I firmly believe this is a great opportunity for right now though based on our current economic environment.  You need to be buying as low as possible and offering either very competitive rental rates or very competitive wholesale prices to the rehabbers in your target market.  I can’t think of any way to do this consistently or more efficiently other than through Bulk REO.

To be VERY CLEAR here.  Like anything in life that’s worth ANYTHING, this takes WORK!!  Your banker is not just going to roll over and hand you the keys.  You need to know what to say to get them to talk.  It takes negotiation skills too, but you use those everyday anyway right?  Wouldn’t you rather negotiate one big package rather than one individual house?  Your efforts will pay off MUCH better.

Let’s also be clear about THIS.  NOBODY is paying retail anymore.  We have too much inventory everywhere.  Housing starts need to stop until existing inventory is absorbed by the marketplace by new households, new families, people moving back out of Mom & Dad’s place, etc.  So, if you want to make anything, you need to be buying stuff on the super super cheap.

If you are looking for a way to really make an impact in your real estate business, then this might be what you are looking for.  There is no doubt in my mind that banks need the help of smaller investors to come in and help them dispose of blocks of properties quickly.

If you could pick up 10 houses for even 60% of their “As Is” current value, meaning you already have a 40% discount even if a rehabber was to buy it from you to fix it up, do you think that would help?  There are ways to slice and dice bigger packages into smaller packages, basically wholesaling packages of deals to small investors that want to maybe pick up 5 or 10 houses to rent out.

It’s like you being the wholesaler to Costco or Sam’s Club.  You sell to them in bulk, then they sell at a discount in a little less bulk to someone else. It’s called the Distribution Channel and it’s a necessary part of any business.  You can become one of the links in the distribution channel or you can continue to be toward the end of that channel.
It’s up to you. The banks go ahead and list properties all day long for 90% of As Is value.  They don’t sell… they sit there forever unless a homeowner comes in and thinks they are getting a great deal.  Bulk REO is the way for you to tap into the “Shadow Inventory” that the bank doesn’t want to put on the market yet.  They don’t want to flood the market.

In many cases they don’t even want to take title to the property.  That’s where you get into non-performing note buying as well.
The reason they don’t want to take title is because then the bank becomes liable for anything having to do with the property.  I’m totally serious, I have had banker’s tell me that is what they are doing.  One that I dealt with had 30 houses in one portfolio of one owner.  The guy defaulted on all of his mortgages and was still taking money from people in cash for their first month’s rent, then he would disappear and not pay the bank.  No background checks, no application, nothing, for ALL 30 houses.

Imagine what those houses looked like when the bank started to investigate!!!!

They were a total train wreck.  The bank did NOT want the responsibility of those houses.  They were all in deplorable condition.  We could not come to terms with them because the trustees at the bank couldn’t swallow the loss that we were wanting them to take.  Not sure what is going on with those right now.  This happens every day of the week.
If the bank doesn’t take title and they just let it sit there, vacant and deteriorating, the mortgage holder stays on title and is technically still responsible for anything that happens at the property.

But I digress. Earlier this week I told you about two options that you have out there to learn how to do this.
I’ve taken enough of your valuable time today, so briefly, here are some highlights about the two programs I told you about.

My friend Susan has her Bulk REO program.
http://MyBulkReoSecrets.com

It’s a solid course and is less than $200 right now.  (This could change at any time, but as I write this e-mail, on the morning of 9/3/2010 it is still under $200).
Susan believes in empowering you to go out and do this stuff on your own.
It’s very much a do it yourself program and she shows you how to find the packages and how to find people to buy Bulk packages from you.

It’s possible that you want more than what she has to offer.
Download her report at that link up there and then compare for yourself what Kenny has put together for you compared to Susan’s program.  Several of my subscribers jumped on Susan’s program earlier this week.  If you did and we haven’t talked about it, please let me know.  (Yes, I get credit for the purchase and will probably be able to take my wife out for a half a dinner at some point because of it.  )

Kenny Rushing announced a price slashing and a payment plan the other day for his Bulk REO Trader Secrets program, actually right after I sent you my last e-mail.  (Notice I didn’t send you 18 e-mails about it like some people did, informed, not overwhelmed, that’s what I’m going for here).

http://rapidreiresults.com/bulkreo

You have 30 days to check it out and if you aren’t happy, you can return it.  He also offered a 6 month, do your first deal and get double your money back offer.  That is a very cool offer and Susan does NOT have anything like that.  At less than $200 though, she is not making enough to be able to do that.

One of the big differences between what Susan is doing and what Kenny is doing has to do with their business focus.  Susan is into many different aspects of real estate.
Bulk REO is NOT her only business.  It is something she knows a great deal about though.

Kenny is 100% into buying bulk REO and part of the advantage of him doing this is he’s wanting to increase his deal flow.  If he can get 100+ people sending in Bulk packages for him to look at, naturally he is going to be able to do more business. Thus, the double your money back offer.  Pretty cool if you ask me.  You might be thinking, why don’t I just submit deals to him and not buy the program?  Great question!  His focus is to make sure you know exactly what you are doing so you aren’t wasting his time or yours chasing and submitting junk deals.  If he has say 100 deals sent to his team, he’s got to pick the best ones to work on.  This training will show you how to not only find the best deals but the best way to present them to the fund that will potentially buy them.

So, in closing, if you think it’s something you might want to get into, at least go grab Susan’s report and watch her first video to see what it’s all about by clicking here.
http://mybulkreosecrets.com

Then, go take a look at Kenny’s offer and do your own comparison, your own due diligence, and see if this is right for you.

http://rapidreiresults.com/bulkreo

I hear that he is closing it down tonight so he can get back to focusing on his main business and helping the new students out.  Teaching takes a ton of time and that is why you always see hard deadlines for these programs when they come out.  It takes a good bit of time and money to put these training programs together.  If they can more efficiently deliver it to folks at the same time rather than having 5 people start this week, 5 next week, 5 the following week, so on and so forth, then that is pretty smart I think.

You don’t want to learn this stuff from someone that is just a professional trainer.  You want to learn it from someone that is doing it every day as their main business.  Kenny’s focus has to be on buying Bulk REO, not on teaching it.  He has a fiduciary responsibility to his fund investors to keep the business moving, not get too distracted with other stuff.

I hope this has helped you be a more informed consumer, whether it is for Bulk REO or for your funding needs.

Also, if you know of a great commercial property that is for sale, let me know.  We are currently looking for strong commercial properties and performing commercial real estate notes.

To your success,

Marshall

P.S. Don’t forget to leave a comment on my blog here.

P.P.S. I will be hosting a webinar soon to show you how to use your retirement funds to invest in real estate without getting a penalty from the IRS.  Can you imagine how quick you could build your IRA if you could flip a few deals in your retirement account… especially in a Roth IRA.

Quick links update for this post.
http://GetCommercialFundingHelp.com/funding <—- How to get your funding approved.

http://rapidreiresults.com/bulkreo <—-  Link to Kenny’s program if you want to see it.

http://MyBulkReoSecrets.com <—- Link to Susan’t report that I HIGHLY Recommend.

Make it happen!!

Disclosure: This is a commercial message and you should assume that if you purchase something from one of my posts or from a link you click on from this site, that I will be compensated in some form.
I only post links for products I have check into thoroughly or am already using myself.  My posts also contain valuable info that won’t cost you a dime either though,
so stay tuned. 

You CAN Make Bulk REO Investing and Trading your business.

Technorati Tags: Bank negotiation, Bulk Real Estate, Bulk REO

How many free and clear houses would YOU need in order to ride off
into retirement?
The magic number I have always heard was 10 free and clear houses…

Is that number good for you?  What’s your number?

So… what is a free and clear property?

Free and clear simply means there is no debt on the property.
So, all of the rent is coming in and going to property taxes,
repairs and then into your pocket.
When most properties only clear a few bills per month when managed
correctly, if you have no mortgage payment
that makes things work much easier.

Could you get there other ways?  Well, of course.  There are so
many ways to get there it is hard to list them all.  However,
housing is a basic need.  That’s why affordable housing is such a
strong investment but you MUST buy it right.  You can’t pay retail
for ANY investment.

Smart stock traders know this.  The smart one’s buy low and sell
high.
The stupid ones buy when prices are getting closer to peak value
and then end up selling on the downside.  So, they buy too high and
then they sell too low.

With credit markets being so tight right now, everyone that is
selling is taking a big hit… including the banks.  It does NOT
matter what asset class you are interested.
If you have capital, you are in good shape because you can hold on
until pricing recovers AND you can purchase now at deeply
discounted prices.

There are tons of people that MUST Sell in any market.  It happens
because life happens.  Even in the best of times, there are some
sweet deals made because people don’t want to go through the time
and trouble it takes to improve a property so they can get the most
out of it.  So, they take a discounted sale price just so they can be
done with it.  Those are the every day deals.

Combine those with a massively distressed real estate market and you have a
perfect storm of properties flooding the market.

What if you could get a property with no mortgage right NOW?
A friend of mine, that runs a hedge fund focusing on Bulk REO pools
gets those deals all of time.

Would you like a free report that shows you how you can do this?

Click this link for the Bulk REO Secrets Report.

Think of this, how many people buy lottery tickets?

How much do people waste on those lottery tickets?

Well, I have news for you, this real estate market could be YOUR winning lottery ticket.

Heck, maybe you don’t like to learn new things?

Get out of your comfort zone and learn some useful information.

Get in the house giveaway here:

http://rapidreiresults.com/house

What could you do with a house with no mortgage on it?
Flip it quick to pay off some big bills?
Hold onto it for a while and collect the rents?
Hold it for 40 years and use it for retirement?
Hold it for a year or two and trade up later to a bigger, better
property, perhaps a multi-family building?

P.S. I will be hosting a webinar soon to show you how to use your
retirement funds to invest in real estate without getting a penalty
from the IRS.  Can you imagine how quick you could build your IRA
if you could flip a few deals in your retirement account…
especially in a Roth IRA.

For now, go check out Susan’s free report on the Secrets of BULK REO Investing

Technorati Tags: Bank negotiation, Bulk REO, real estate investing

If you are brand spankin’ new to real estate, I would say no, you absolutely should NOT check out Bulk REO or commercial real estate for that matter.

If you have been around real estate for a while now, and you are looking for better, bigger discounted deals, then yes, this is what you should be looking at.

The typical rehabber should not be looking at bulk REO deals unless they want to get out of rehabbing or if they have a great rehabbing team that they don’t need to stay on top of things 24/7.

In fact, if you want to check out Bulk REO deals, go grab this free report.

http://mybulkreosecret.com

It’s the real deal.

I have been working with a couple of hedge funds for the last year and they are HUNGRY for these deals

You can also see my thoughts on using BULK REO investing to become the toll booth for bargain real estate in your market.

http://rapidreiresults.com/wordpress/real-estate-investing/using-bulk-reo-pools-to-become-the-toll-booth-for-your-real-estate-market/

You find the BULK REO deals, they buy or fund them for you.  Good deal in my opinion.

Check out Bulk REO Investing here

Technorati Tags: Bulk REO, BULK REO Investing, BULK REO Tapes

You can use BULK REO pools to sky rocket your real estate investing business in many ways.

Go here and check out this quick video before you even read the rest of this article.

http://rapidreiresults.com/bulkreo

I did not come up with the term “Toll Booth”.  I learned it from a marketing mentor by the name of Dan Kennedy many years ago.  I believe he learned it from someone else as well and it’s a great concept.

I have a quick question for you.

Have you ever thought about why the banks are so stupid and do not just GIVE you their properties to sell? Well, not give them, but create a significant discount right off the bat so you don’t have to go back and forth with them for several months.  You know, the type of a discount where you can make money and they can get it off their books quickly…

I mean, wouldn’t it be easier to sell something if you had multiple properties, be that residential, small apartments or commercial properties.  Well, you can with BULK REO pools and you need to be the owner of the pool to get the full benefit of this.

If you regularly pick up a package of properties, then you could march all of your buyers or potential tenants through all of the properties and surely they would find one that fits what they are looking for, especially if you target your marketing effectively.

Realtors know this, that’s why most of them strive to get as many listings as they possibly can.  Right?

It makes sense too!  If they have the most properties listed, they become the toll booth for the buyers to get through.  It doesn’t matter if the buyer is working with another Realtor either.  That’s why they have the MLS right?  It’s called broker reciprocity for a reason.  They hope to reciprocate that “Love” to another broker at some point and expect the same from another.

Now… the smart ones get as many listings as possible and get as many buyers as possible and show them their properties first.  This is especially true in the commercial market.  Many commercial properties don’t even get floated out to the public.  Why?  Because, if people get wind of a potential sale in a commercial building, tenants are more likely to move out.  Not good for the value of the building.  As Net Operating Income goes down (as tenants move out and are not replaced) the calculation of the value of the property plummets as well.

So, these commercial deals often remain hidden from most people’s view.

Another thing the really smart one’s do is they offer an added incentive to any broker that brings them a buyer.

You can do this too as an investor!!  You could offer a Realtor and added incentive to bring you a buyer.
You could also offer an added incentive to the actual buyer.
What would it really “COST” you to throw in a brand new HD Flat PANEL LCD TV?  $500-1000.  What if it kept you from holding that property for another 1-3 months?  Did it cost you anything there?

Try this on for size.  The next time you have a property to sell, put an ad out that states “Free HDTV with Purchase” and see how many more people you get to call or e-mail you.  If you were with me for the SIMS promotion several weeks ago, you know I gave you a link to watch the “Property Launch Formula”.  That is one of the key concepts discussed in there.  Adding incentives to get people to your buying event.  It’s called event based marketing… but I digress.

So, suffice it to say, becoming a “toll booth” for your specific real estate niche is a really good position to be in.
I regularly do this with lease option buyers in my area.  I have about 1500 of these that have registered on my site this year.  The only problem is, I can’t help all of them.

It takes time to talk to all of those people.  So, I have much of that part of the business automated.  They register on my website, they read my automated e-mail sequence, they look at the properties online and find out where the properties are and go look at them before they ever call me.  They can call me and some do because they would rather do that, and that is fine.  Sometimes they do that just to see if someone will actually answer the phone.  I typically make them go to voicemail at first though.  I’ve probably lost a prospect or two here and there because of this, but that’s OK.  I choose to do that rather than be on the phone with people 24/7.  That’s part of a lifestyle choice I have made.

Back to our discussion about the banks being stupid though.
I have news for you, MOST of them are not stupid!!  They are just as concerned about the real estate market as you are.  They really do NOT want to own this real estate.
BUT… they have a catch 22… and it is a BIG one!!!

If they take all of the REOs they have on their books and just shove them all on the market at the same time, the real estate market will plummet again… and it would likely happen very quickly. They are trying to help keep prices up as close to the REAL value as possible… not the INFLATED value… the real value based on the cost to build and the “Normal” amount of demand.

So, what are they supposed to do?
Well, in my search for this answer, almost 2 years ago I was introduced to a concept that I knew SHOULD exist but didn’t know how to do it or if it really did exist.

It’s known as Bulk REO trading and Bulk Note Purchasing.
It really is a cool concept and does allow you to become a toll booth.  It’s off the radar of most investors because it takes some finesse to get into it.  I bought a course from a big hedge fund that was looking for people to bring them deals.  I went through all of it and started to implement a bunch of it last year.  To my amazement, bank executives really would talk to me.  They did their due diligence on my company too.

It was a very interesting experiment.  I call it an experiment because it’s a business model that I did not pursue much but I did get a hold of several tapes to review and submitted a few to the hedge fund I was working with at the time.  Sometimes you get distracted by something and you have to refocus on your core business.  That’s what I had to do at that time so I put it on the shelf but I’m confident it works and I am still contacted occasionally by people that have tapes they are selling, all from the efforts I put forth a year ago.  In fact, the frequency of these contacts is starting to heat up and I am preparing to get back on this train because I think it will be a very lucrative route for the next few years.  It also fits in very nicely with the commercial deal funding I’m working on right now.  It’s another piece to the ever growing puzzle that is real estate investing.

If you would like to hear more about the tapes I come across or more about BULK REO investing or BULK REO Trading, join my list for this topic at the link below.

I don’t have a pool for you to look at the moment I’m writing this, but that can change and you don’t want to miss these deals.  I’m talking some properties as low as $5K – 10K.

http://rapidreiresults.com/wordpress/bulk-reo-package-available/

None of the stuff I submitted worked out for their portfolio… well, actually one did, but it worked out for someone else.  I don’t know if they ended up buying anything or not from that REO pool, I just know that another student had submitted that same tape to the hedge fund, which kind of blew for me, but I just moved on.  It was the first bank I called too!  I really couldn’t believe that I developed the relationship over the phone and through e-mail and managed to get  a crack at their BULK REO pool. It had some very good potential deals on it too. Nothing I wanted to own at the time because of location, but very good stuff.

That would have just been beginners luck right if I had gotten that first deal right there?

Of course that first Bulk REO Deal one wasn’t going to work out.
It was NOT beginners luck though.  I know the right people to contact, not the names but who to ask for, I know what the key words are that they need to hear to know what I’m talking about, and I also know how to ask the right questions in the right context.  Then I stayed in touch with this banker until the tape was ready to be released so the banker would not forget about me.

That experience inspired me to keep after it though.  Found a couple more banks with pools and started to do my own analysis of the tapes because I knew the hedge fund I was working with would not be interested, but my partner and I may have been.

Back to the topic at hand.  Can you see how getting a pool of REO properties in your inventory would make you the toll booth?  What if you grabbed a Bulk REO pool of 30-40 properties, half rented already so you know you have some revenue coming in, the rest needing some varying amounts of repairs before they could be rented, or you could wholesale them.

So, you have 15-20 properties you could dispose of via fast sale or rent and get some immediate cash and you get a nice little rental portfolio, all in the blink of an eye or build a massive wholesale buyers list because you have actual product for them to look at.  Of course, blink of an eye is a relative term.  It’s faster than buying 30-40 properties individually, but still has standard closing time frames, but then it’s all done, instant empire.  Well, not quite an empire, but you see where this is going right?

You are probably saying, yeah, but I just need the funding.
Well, stay tuned this week.  I’m going to give you some more ideas for funding.

The example above was the size of one of the pools I looked at last summer, and that was the scenario.  The one’s that needed work though needed a lot of work and we were not willing to spend that much time managing that project.  It could have been a very good deal though.

One funding option, I have the funding for you, at least a portion of it.  Now, this is not 100% financing and you do need to qualify for it, but it’s better than the alternative.  Just let me know if you are qualified and want to explore this.  YOu need to have a good exit plan though… ie. this is not for a newbie.  If you are a newbie, you better have someone on your team that is NOT a newbie and has ample experience in real estate, not necessarily BULK REO, but at least some form of purchasing distressed real estate.  As the deal size gets bigger, yes, the experience level WILL be a factor.

I also have some cool resources for you to check out starting tonight at midnight EST.  That’s the earliest I can share it with you. It will teach you more about the Bulk REO market and how you can get involved in it.

I will further share SOME of my own experiences with you even though they are limited, and give you some recommendations if you want to check this asset class out.

So, ask yourself, who has the toll booth in your market?  Is there a dominant wholesaler who always has tons of properties?  Are they buying them one by one?  Want to become like that person very quickly?  Join my BULK REO INVESTING and BULK REO Trading newsletter list below.

http://rapidreiresults.com/wordpress/bulk-reo-package-available/

Good luck in your pursuit of BULK REO investing if that is a niche you decide to go after.

BULK REO Investing, BULK REO Tapes