Best Niche Now–Short Sales

How do I get started?

Most investors looking to pursue real estate just don’t know where to begin.

What courses should I take?
Where do I find money to start marketing?
Where do I find money to fund deals?
What niche should I focus on?

With today’s market there’s no doubt that the foreclosure arena is the niche to be in, but arena is pretty broad –– which one of the many aspects of the foreclosure business should you pursue?

Rehab’s?
Subject to’s?
Short sales?
REO’s?
Auctions?

Let me help you clear some things up….

Leverage may be a dirty word right now, but it’s still the best way to build wealth.

LEVERAGE, LEVERAGE, LEVERAGE, LEVERAGE, LEVERAGE, LEVERAGE, LEVERAGE: Lets begin with OPM–Other People’s Money

Leverage has gotten a very bad name in this current financial crisis. And lets be honest–debt and the deficit we’ve accumulated is the bane of our country’s present financial problems, not to mention so many individual’s over-leveraged experience, along with the anxiety-filled, sleepless nights that come along with it. What were we thinking!?!

But measured, reasonable, wisely applied leverage is still the best way someone with limited means can become someone with great means. It begins with a critical difference in mindset.

A consumption mindset asks: “How can I manage my debt in order to live the richest lifestyle possible.” The pursuit of this kind of life is an invitation to a stressful, workaholism that is something to be avoided like malaria.

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A non-leverage mindset asks: “How can I scrimp and save, and use whatever is left over to slowly build my nest egg.” The question to ask here is, “Am I avoiding leverage out of the decision to live as debt-free as possible or out of fear?” The former has a lot to be said for it, the latter is just another way to try to avoid all risk.

A leverage mindset asks: “How can I use borrow money wisely to multiply my money-making and business building activities in order to accelerate my returns?”

The biggest difference is NOT how we invest the money we HAVE but how we invest the money we DO NOT HAVE. It is how we leverage the money that we DON’T HAVE that can make us wealthy.

A leverage mindset does not look at an investment with the objection: “I just can’t afford this.” Instead it strategically considers, “How can I best use leverage to pay for this investment in a way that increases my overall return without taking on undo risk.

And don’t forget all those other…

OTHER PEOPLES’ RESOURCES that will leverage your TIME, TALENT & TREASURE…

OPE-XPERIENCE–Learning from MENTORS via in person books, etc.

OPE-XPERTISE–Using business ASSOCIATES to do what they are better trained at

OPM-ONEY–Borrowing CAPITAL which yields a higher rate than you are paying for it

OPT-IME–Building a skilled & committed TEAM to compliment and further your mission

OPS-YSTEM–Working to create the ULTIMATE in LEVERAGE: A TURN-KEY SYSTEM

Leveraging your time: never forget the 80/20 principle.

LEVERAGE: Adapting our Business to the Reality of Pareto & Parkinson’s Laws

Being busy is a form of laziness–lazy thinking and indiscriminate action. -Timothy Ferriss, The 4-Hour Workweek, p. 73 ff

Pareto’s Law–the 80/20 principle (Vilfredo Pareto, 1848-1923)

80% of Pareto’s garden peas were produced by 20% of the peapods he planted

80% of the wealth was in the hands of 20% of the people

Don’t expect loan modifications to solve the foreclosure mess!

On average the 1st lender loses $58,000 for every home that goes through foreclosure. You’d think they’d do everything possible to keep homeowners in their homes. Well, it’s a lot harder than it seems. It didn’t even work for Hitler!

Is our mission to make money or to solve people’s problems?

Obviously we have to feed our families and we want our real estate investing efforts to do so much more; namely, provide us the FREEDOM of doing something we love and getting paid enormous amounts of money to do it…. BUT we only get paid if and when we help people by providing valuable, creative, and timely solutions to their needs.

Of course, we can make a buck without a care in the world about solving people’s problems. But we do so at the risk of making everything about the money. When people around us—employees, partners, sellers, buyers, other real estate professionals and business people—begin to sense that money rules our every decision, they will resent it and our business relationships will enviably suffer. And there is something even more frightening—our soul will shrivel and die. “What does it profit a man,” asked a poor but insightful carpenter from Nazareth, “to gain the whole world but to forfeit his soul?” The answer is no less true today.

Online or bust!

Here’s some statistics to consider in building your real estate investment business:

–In 2000, 28% of buyers said that they used the Internet as an important part of their home-buying selection process.

–In 2006, 70% said they did.

–As of 2008 the National Association of Realtors says that the number is 86%.

From 28% in 2000… to 70% in 2006… to 86% in 2008. Given these statistics, where do you find your buyers, not to mention your sellers and renters?… The answer is clear: ONLINE. The implications of this gigantic change in the real estate marketing landscape is nothing short of breathtaking and requires rethinking our entire marketing strategy.

We’ll cover the implications of this change much more in depth in an upcoming training video. Stay tuned.

It’s quite simple, really: Why wholesaling is so HOT right now.

WHOLESALE, WHOLESALE, WHOLESALE EVERYTHING: True to our name, we are into every real estate niche imaginable–and some you’ve likely never imagined. But right now FLIPPING houses WHOLESALE is the rage. Why? The answer is rather simple: we’re in a full-blown buyer’s market. To sell houses in most parts of the country means you have to stand out from the crowd and PRICE is about the only thing that helps you stand out these days.

In the good ole’ days (read: seller’s market) there was plenty of room for error. If you bought it too high, or if you put too much into rehab, just wait awhile and the appreciating market would catch up with your mistakes. Well, there is just a lot more downside risk for the real estate investor in a flat or declining market which most of us are experiencing right now.

Hence, the change of strategy from BUY & RENT or BUY & LEASE/OPTION to the national rage of BUY & FLIP… WHOLESALE. Many investors, as a matter of fact, are doing every thing they can NOT to buy. By optioning properties and then assigning them for a fee, there is little opportunity to make a downside mistake and not be able to sell your property for what you have into it. But this usually means selling to someone at a discount who has the cash to make things happen quickly–another investor.

There is one other target buyer out there who we consider THE SWEET SPOT and that is the homeowner looking for a good, but not great, deal. These buyers are not quite as price conscience as the investor buyer. Thus the term WHOLE-TAILING is born which is selling at some discount to a homeowner who is the traditional retail buyer. Wholetailing is the way to go but you’ll need some tools to get there.

Do you want to get into the SWEET SPOT of real estate sales? Hold on because we’ll be addressing this in one of our segments: Selling For Close-To-Retail in a Wholesale Market

Wave goodbye to traditional financing.

Some investors are looking to option every deal and then sell with an assignment fee. But there are times this just doesn’t make sense. In those times you’re going to need money and sometimes, lots of it. Where are you going to get the capital to keep your buying and selling business going?

Well, apparently not from traditional lenders. From 2000 to 2006 1 out of every 400 deals involved seller financing. Today 1 out of every 50 deals involves seller financing. To put it another way, there is now 8 times less traditional financing available then there was just a few years ago!

To borrow money in today’s lending climate, you need:

1) To cultivate people who have capital to lend you–whether it’s from private lenders who are “hard money” sources or relatives and friends who are “medium money” and “soft money” sources.

2) To have a strategy to find these “lender partners” over the long haul.

To learn more about securing PRIVATE FINANCING check out our website: www.PrivateLenderWanted.com

What our namesake means to us… and hopefully, one day, to you.

OUR MISSION finds its vitality from our namesake of being GOOD S-T-E-W-A-R-D-S.
S ervice We want our byline to provide our focus: Serving People in Their Housing Needs
T ruthfulness We understand that no goal is worth dishonesty to obtain it. Integrity is our very first priority.
E xcellence We are professionals who know that being good at what we do takes a lot of ongoing training.
W orking Together We rely on the strength and synergy of teamwork and look to form high quality partnerships.
A bundance Mentality We don’t hoard what we know by operating with a scarcity mind set. We have no secrets.
R eal… Estate Investors We don’t hide who we are, but arrogance and boasting do not befit a steward. Humility does.
D iligence We are systems driven. In everything we do we seek to work smart and not just hard.
S uccess In the course of our work we want to make money, and lots of it. To do so we know that the second “S,” Success, comes after first “S,” Service, and that every word between them provides a critical link to any real achievement we attain.

THE GOOD
We begin with SERVICE…	S T E W A R D S
		…as we work for SUCCESS.

Starting Point: Don’t be a real estate investor, build an investment BUSINESS!

Many real estate investors, maybe most, miss the forest for the trees by going from one deal to the next to the next. They see themselves as deal-makers and end up simply creating their own full-time job of being a real estate investor. They become TRAPPED inside their business rather than being FREED by creating a well-run business.

Our desire for you is the freedom that comes from focusing on the ultimate prize—building a profitable business. This will mean that you work as hard ON your business, to build its systems of operations, as you work IN your business, carrying out the necessary day-to-day details. Our mission involves the BIG PICTURE of helping you not just become a successful real estate investor but to build a successful real estate investment business. Here’s where we’re coming from.