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Sunday, December 19, 2010

Someone asked me what my formula is when calculating the profitability of a rental property, so I thought I’d post it!!

But before I do that, I just want to take a minute to disclaim that there are multiple formulas you can use effectively.

And honestly? It’s probably best if you figure out your own to fit your investment model or partner with someone like myself that really knows what they are doing.

The very first thing you should do before buying a rental property is visit other rental properties in your area to determine what the competition typically charges for rent. This is also great for one uping your investor competition, If your properties have better fit and feel they will rent before any of the others. Note: Dress down and do not drive your luxury vehicle when viewing the properties.

"To do this, I’ll usually pose as a tenant looking for a new place to live and take a few tours of different homes." Then, I’ll check back periodically to see how long it took for the home to be rented.

For example, if I find a 3 bedroom home for rent for $1400 a month and it took 2 months for the landlord to get it rented, I will assume the rent is slightly higher than it should be.

After all, a 2 month vacancy can kill your profits for the year. I prefer to keep my rent low enough that I can re-rent it in 2 weeks. One month, tops.

OK, so you’ve done the footwork and found that you can rent a 3 bedroom house with air conditioning and a dishwasher (Remember to keep your amenities comparable to other properties in your area!) for around $1200 a month.

You will need to plan your budget per month to cover:

1. The mortgage (Pay Cash or Partner with fund that can if at all possible)
*** Remember: I buy and Renovate homes to brand new for around $65k / so cash partners collect straight profits from day one of rented unit, not to mention a boatload of equity.

2. Your taxes

3. Your insurance

4. Maintenance costs (How much I put aside for maintenance every month depends on the age of the property. For example, if the property is fairly new and won’t need any serious repairs for a few years, I’ll only put aside $30 per month. If it’s an old property, maybe I’ll decide on $70. But no matter what, put aside something every month. After all, eventually you’ll need to replace the roof, the furnace, etc, someday and you don’t want the cost of that coming out of your profits. Also, it’s good to have some extra money put aside in case you end up with a problem tenant who trashes the place. On average, I put aside $50 per month per unit.)

5. Utilities, if you elect to pay them. (I usually don’t elect to pay the utilities)

6. Vacancy (I generally plan on a 1-2 month vacancy per Home, per year. If I luck out and no one moves out that year or if the empty home gets rented quicker, I consider it gravy.)

7. Your profit

As far as profit goes, I minimally need to make $800 per unit in straight profit. So if it’s a single family property, I would have to be able to pay all my bills and still pocket $800 a month. With a duplex, I’ve got to make $1600 a month right off the bat. A four unit apartment building would have to generate $2400 a month for me. And so on and so forth.

This might not seem like a lot of money at first… (that's me being sarcastic)especially when you consider the time and effort it will take you to find the right home, renovate it completely and then rent it.

You’ll rack up minor expenses simply by placing ads in the newspaper, placing signs in the yard and on corners around the neighborhood or just using gas to head to the home periodically to show it to potential tenants.

Service Calls / Property Management:
Also, you’ll have to answer service calls (sometimes in the middle of the night) should something break, lawn upkeep, shoveling snow. A lot of people consider these things and ultimately decide owning rental property isn’t for them. ** Again This is why you want a partner like me that has the management company internally and in place.

Nevertheless, here are the other things you need to make sure you remember:

1. Tax write offs. I do not factor in how much I get back in taxes into my monthly profit. I consider it all gravy. Still, it’s nothing to sneeze at. *Also keep mind that any repairs you make to the property can be written off as well. "So I will scream this for the cheap seats, just in case you are not getting the point of making sure I am your partner, or you invest in my properties... We own my homes for an average of 65K, we get to write off an average of $50k per house the first year just in renovations!"

2. As the years go buy, you will eventually be able to charge more and more for rent. However, your monthly expenses will generally remain the same. The longer you own a property, the more your profit will increase.

3. At the end of the day, you own a property that generates a steady cash flow. Not only that, but it will have likely increased in value substantially. Hello, easy retirement fund!

4. $800 per unit is what I want to make minimally. Generally, I end up making more.

So back to our single family property that will generate a rent of $800 a month….

For the sake of easy math, let’s just decide to leave the utilities up to our tenant. In my area, taxes and insurance on a single family property will run around $180 per month. We’ll say the property is in great condition (just renovated), so we’ll only be putting aside $30 per month for maintenance costs. A one month vacancy per year will cost us about $100 a month. That gives us a total of $310 for expenses. Add on the $800 a month profit and we’re looking at $1110.

Also consider that single family homes usually generate the least amount of profit. Duplexes and apartment buildings will get you more cash for your buck. However, single family homes are easier to get rid of should you decide the money you’re making isn’t worth it. It’s much harder to dump an apartment building.

I recommend beginning investors start off buying a single family home for their first investment property "preferably one of my properties or system". If, for no other reason, than to ‘try out’ being a landlord.

To be a successful landlord you’ve got to be a good judge of character and have a low tolerance for bullshit. "This is why I prefer you buy my properties and use my management company"

For example, if you’re the type to always give people a break, you may just end up with tenants who don’t pay rent for months at a time. You’ve got to be willing to be the bad guy. You’ll have tenants who will call you up with all sorts of sob stories about sick children and lost jobs and you’ve got to be able to say, “Too bad. I still need the rent.” If your personality is such that you’re unable to be a real prick when the situation requires, then you’ll find this out when you’ve only got a small, easy to sell building that can be dumped fairly quickly.

Of course, if you find that you have no problems whatsoever being an asshole from time to time, you can always start looking at duplexes and apartment buildings then. Once you’ve perfected your personal system, you can start making some really tremendous cash flow providing something that everyone will always need " A roof over there head".

Angel Investors / Private Investors
Angel Investors

Staying ahead of the trend: CHECK OUT THE VIDEO....

Friday, October 8, 2010

4th Quarter Rally "To All Looking For Great Returns!!"

I am the Director of Investor Relations for one of Southern California’s leading participants in the dynamic world of rehabbing and reselling foreclosed properties. We are presently seeking interested parties to partner with us to purchase, rehab and resell our ever-expanding pool of homes.

We are rehabbing and reselling foreclosed properties profitably throughout the United States. We are currently raising money for our newest fund which is focused on distressed residential properties.

Our process is very simple: we believe in taking a low risk, high turnover approach. Under this, we do not seek high returns from individual properties, but rather consistent returns from multiple properties. We are constantly purchasing homes to return to best-of-market quality, and typically complete the purchase/repair/disposition cycle in about 90-120 days. We would be happy to discuss our approach or send you additional information or a prospectus. Please contact me if you are interested at

Average investment is $60k per home all inclusive, *financing is available for the right partners. (*650 minimum fico, verifiable income and assets, minimum 10 homes)

Six Reasons Our Homes Will Make You Rich

1. Inflation - Past, Present & Future. The historic rate of inflation is roughly 3 percent but double digit inflation has taken place during periods of economic volatility and expansionary monetary practices such as those embraced by the current administration. Experts ten to believe we may encounter inflation in the 8 or even 10 percent rate within the next three to five years leading to high rates of nominal returns among all physical assets including real estate.

2. Demographic Demands - Immigration, escalating birth rates among minority populations and longer lifespan for elderly citizens all adds up to a rapidly expanding number of people seeking shelter and basic homes.

3. Declining Inventory - The media makes much ado about excess inventory but savvy REO sale investors will also notice the simultaneous reporting of a 'shortage' of affordable housing. Can both situations be true?

Yes. While the absolute number of housing units available may currently exceed demand, the actual number of affordable and desirable units is much more restrictive. For example, pier construction, energy efficiency, zoning regulations and other mandates often result in a lack of affordability even if the primary mortgage is acceptable. As units become functionally obsolete, the demand for safe, convenient, inexpensive homes will grow.

4. Leverage - Real estate benefits the small investor via the use of leverage; few other investments have the advantage of leverage combined with physical assets and alternative sources of income; it's a winning combination that provides maximum flexibility and minimal personal risk when properly structured.

5. Taxing Tribulations - Budget shortfalls and aggressive social support obligations are stressing federal and state budgets to the maximum. Earned income taxes, estate taxes and even a newly proposed VAT tax are likely to take a big bite out of average taxes for middle class Americans. Shifting from higher taxed earned income to lower taxed Capital Gains is a quick way to reduce the overall tax burden by 10 to 15 percent.

6. Short vs. Long Term Strategy. The age old adage to "buy and hold" stocks, bonds or even real estate for the long haul has come under increased scrutiny in the wake of fiscal irresponsibility, irregular reporting habits and unreliable regulatory agencies. The new trend is to take profits when they are available, maximize cash flow and focus on short term gains rather than the promise of long term appreciation. REO and Short sales provide exceptional ROI without the long term risk.

Average example of standard Property:
Purchased / renovated / rented: 50-60% LTV CMV
Sold to Investor "Rented" (average 120-180 days): 70 – 80% LTV CMV
If property portfolio average home is rented out at $1200 per month.



Angel Investors / Private Investors
Angel Investors

Friday, May 21, 2010


According to the Mortgage Bankers Association (MBA), 1.2 million households were lost from 2005 to 2008, despite the population increase of 3.4 million in the study area.

This decline in households is likely what contributed significantly to the excess supply of apartments and single family homes on the market. The study, “What Happens to Household Formation in a Recession,” was conducted by Professor Gary Painter of USC and sponsored by the Research Institute for Housing America (RIHA). It analyzes the impact of economic and housing conditions on household formation and how the recent recession has affected Americans’ propensity to form new households, mobility trends, and changes in the rate of overcrowding.

Key trends are:

- In a recession, the likelihood that a young adult will form an independent household falls by up to 4 percentage points depending on the age of the person and severity of the changes in unemployment rates. In this particularly severe recession, this prediction has been borne out with data through 2008 revealing a reduction of nearly 1.2 million households nationwide despite the continued increase in population and likely even more households lost in 2009.

- Though the national homeownership rate has fallen from a peak above 69% to just over 67%, this decline may be understating the magnitude of the change when we take into account the simultaneous drop in renter household formation. In fact, the rental market saw a steeper decline in new households formed than the homeownership market. As a result of this drop, the denominator in the homeownership rate calculation has been reduced, mitigating the decline in homeownership.

- This recession has also caused a dramatic increase, almost five-fold, in the rates of overcrowding (defined as having more than one person per room in the household), indicating that many families are doubling up in response to the downturn.

- Overall, there was a greater impact on the creation of new households among native born Americans over new immigrant households. The data show native born Americans experienced a larger decline in household formation and a larger increase in overcrowding rates than immigrants.

- Children whose parents have higher incomes are more likely to remain at home, with this effect largest for youths moving into the rental market. However, children whose parents have higher financial wealth are more likely to form their own new rental households.





The REO product is direct from the source for all states and regions. The most comprehensive thing about these programs is the direct cost given to you the end buyers. The company acts as the buying Mandate allowing our partners and clients to access the same inventory we purchase at the direct price we receive it for. We act as you’re buying Mandate passing the direct cost on to the buyers without all of the daisy chains. All fees associated with purchasing is 3% for a full service suite of services, all you have to do as the client is sign the contracts and show up for the closing.

The Official website will be up and running full steam on or before August 14th 2010 offering bulk product direct from the banks to buyers across the globe. Make sure if you are a real buyer to register today and make sure to review the programs below for immediate purchase of inventory direct at real direct bank pricing.

Buyer Programs:

1. Daily Buying by City and State.
This program is designed for all buyers who are looking to purchase specific homes based on geographic regions on a daily, weekly or bi-weekly basis.
• All 50 States
• 1unit – Unlimited
• $2k Earnest per home
• Buyer Specific Properties

2. Custom Tape Nationwide “5 Million Minimum”
This program is designed for the larger buyer looking to purchase Bulk REO properties in Tapes across the country. These tapes are built directly for the specific buyer with the supplying banks.
• All 50 States
• 5 Million Minimum
• 10% Earnest per tape
• Monthly Closing

3. Monthly Nationwide Tapes by State
This program is designed for buyers that purchase smaller to medium Bulk REO tapes averaging 20- 100 properties per state. Tapes are delivered on the first of every month for closings on the 15th of every month.
• All 50 States
• Unlimited amounts of inventory if purchasing nationwide
• 150k Earnest
• Consistent monthly supply up to 200 million per month

4. Non Performing Notes Nationwide
This Program is designed for buyers that purchase Nationwide NPN’s. Product is delivered on the first of every month for closings on the 15th of every month.
• Nationwide
• 10% Earnest
• Consistent monthly supply at $.30 cents or less

Angel Investors / Private Investors
Angel Investors

Saturday, May 15, 2010

Top Trends for Real Estate in 2010!

A lot has changed in real estate; those that fail to keep up with the most recent trends risk more than the title of "antiquated"...they risk missing out on the best deals.

1. Buying in Bulk.
Banks have a lot of non-performing properties to unload so it should come as no surprise that trying to sell foreclosures one at a time is not only time consuming but also expensive. One of the hottest trends emerging in 2010 is for well funded investors or investment groups to purchase steeply discounted properties by buying in bulk....often for as little as 30 to 50 cents on the dollar. It's a win-win situation for all parties; investors obtain maximum discounts and heightened ROI while banks save time and money by rapidly disposing of properties all at once.

2. Social Media Marketing.
With nearly 90 percent of all buyers starting their real estate search online, social media marketing is growing at a fast and furious pace. Photographs and virtual tours are not just expected, but failure to include extensive visual elements is akin to a death sentence for most agents. Tweets, blogs and information marketing is more than a way to get the word out about a's increasingly viewed as a prerequisite for obtaining the trust of future clients. Recent surveys found that over 80 percent of people read a blog, signed-up for email newsletters and read other online forms of communication provided by the agent before deciding to do business with them. Make your mark count by learning how to effectively use social media marketing, email newsletters, blogs and other forms of mass communication to market your services and homes.

3. Banking & Broker Blues.
Although rates have remained low, banks have been sending signals that tougher lending standards are only the tip of the iceberg when it comes to financing. Brokers remain at risk for the loans they write resulting in increased vigilance and intense scrutiny. New Fannie/Freddie guidelines that go into effect this summer will further constrain already stretched consumers by increasing down payment requirements needed to obtain conventional financing after a pre-foreclosure event. Even top rated investors with perfect credit are finding it increasingly difficult to deal with number of loan limits and other constraints.

4. Going Green.
From lead laws to EPA regulations, real estate is slowly but surely going green. Although tax incentives and other initiatives have failed to make the desired impact, escalating utility bills combined with tax credits and legislative restrictions are beginning to show in the market. Expect to shell out big bucks for energy efficient appliances including new air conditioning/heating, pay more for repairs thanks to lead law certification and reap larger returns for properties that already conform to environmentally friendly guidelines.

See you at the top!

Angel Investors / Private Investors
Angel Investors

Sunday, April 18, 2010


Foreclosure rates surge, biggest jump in five years (OH SHUT THE FRONT DOOR)Hey we didn't see that coming. Read the rest of the article but at the bottom I have an axe to grind, "Pay attention because again I have to scream it for the rest of the losers in the cheap seats!"

Foreclosures hit a record in the first quarter. According to RealtyTrac Inc. more than 900,000 households — or one for every 138 homes — received a foreclosure notice in the past three months. Experts say it’s a sign that banks are beginning to sort through a backlog of troubled homes at a faster pace. The rate of foreclosures had eased last year as the Obama administration sought to modify loans to give owners more time to work out problems. As several states had similar programs, the trend of foreclosures slowed down, but now that appears to be reversing. “We’re finally seeing the banks start to process the inventory that has been in foreclosure, but delayed in processing. We expect the pace to accelerate as the year goes on,” said Rick Sharga, a RealtyTrac senior vice president.

About 231,000 homeowners have completed loan modifications as part of the Obama administration's flagship foreclosure prevention program through March. That's about 21 percent of the 1.2 million borrowers who began the program over the past year. But another 158,000 homeowners who signed up have dropped out-either because they didn't make payments or failed to return the necessary documents. That's up from about 90,000 just a month earlier. Last month, the administration expanded the program, launching a plan to reduce the amount some troubled borrowers owe on their home loans and give jobless homeowners a temporary break. But the details of those programs are expected to take months to work out. Homeowners continue to fall behind on payments because they've lost their job or seen their mortgage payment rise due to an interest-rate reset. Many are unable to refinance because they now owe more on their loan than their home is worth. The Obama administration's $75 billion foreclosure prevention program has only been able to help a small fraction of troubled homeowners.


The axe I have to grind is very short and sweet the analogy is simple: "If you place ants in a can they will all scurry to get out by climbing out to the top, the problem is none of them will allow another to get out first, hence pulling each other down every time one gets to the top"

Same rule in Human Nature the first rule they teach you in saving a drowning person is that they will take you down with them.

That being said it is simple "losers want everyone else to lose" Remember that.

Angel Investors / Private Investors
Angel Investors

Saturday, March 27, 2010

Simple Backout Clause! And weekend education...

This is in response to the sassy young man (actually he is a 50+ loser from MN) that sent me an e-mail this morning after I posted this weeks article "LESS THAN AN HOUR AGO". The e-mail basically stated that the banks are the ones helping the country and that there is no way to truthfully take control of our own destiny. "To wrap up this idiots jarble"

So I wanted to respond publicly: #1 If you buy one of my homes and rehab it to new for under $30k anywhere in America, regardless of how bad the economy is you can rent it out for a profit all day long. Prime example this week there are 127 homes for sale from me for $900,000. These homes are worth over $10 Million dollars. Due the math!


Did You Know....

No Congress, no President has been strong enough to stand up to the foreign-controlled Federal Reserve Bank.

Yet there is a catch - one that President Kennedy recognized before he was slain - the original deal in 1913 creating the Federal Reserve Bank had a simple backout clause. The investors loaned the United States Government $1 billion. And the backout clause allows the United States to buy out the system for that $1 billion.
If the Federal Reserve Bank were demolished and the Congress of the United States took control of the currency, as required in the Constitution, the National Debt would virtually end overnight; the need for more taxes and even the income tax, itself would come to an end.

Thomas Jefferson was concise in his early warning to the American nation, "If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered."

Mr. J nailed it on the head, lets start taking bak americas land one house at a time. I can help starting at $8,000 per door.

Angel Investors / Private Investors
Angel Investors

Banks Closing every week, Social Security is Underwater. The sky is falling what are we to do?

I will go over the News “Bad” as reporters always put it. But I will make humble “but sensible” suggestions for your review and hopefully call you to action.

Bank closures are making the news nearly every week with plenty more on the horizon.

Although very few people have ever lost money during a bank failure, extensive delays can still wreck havoc when attempting to close on a time sensitive purchase / or bulk transaction. Staying ahead of the bank closures is crucial. And fortunately, it's relatively simple to apply for a second account that serves as a "back-up" bank. Use these quick tips to implement this 15 minute resolution:

1. Select a Secondary Bank. Make sure it's not on the FDIC's list of questionable or failed banks by visiting
If you’re current bank is on the list...better open an account sooner rather than later to assure smooth processing of all transactions.

2. Rate the Bank. Just because a bank or lender isn't facing immediate failure doesn't mean they are healthy. Rate the bank by contacting one of the major bank rating entities below:

A.M. Best Company:
Bankrate, Inc.:
BauerFinancial, Inc.:
Institutional Risk Analytics:
Weiss Ratings Inc.:

3. Sign-Up. In most cases you can open and fund the account online. Simply collect your current banking information, driver’s license and other pertinent documentation and allow yourself 15 minutes to establish a new account and transfer funds. Remember to remain below the FDIC insurance limits especially if opening a new account with the same bank or a subsidiary of the same bank.

4. Set-Up Automated Features. Banking shouldn't be something you need to invest time toward so be sure to set-up automatic deposits and payment features to keep the account active and in good standing. Now you are not only prepared should a "worst case" situation arise with your own bank but it's a simple way to keep an emergency funds in place for unexpected repairs or other needs.

Social Security underwater “They have been talking about it for years, now it finally here”

Social Security will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office. Stephen C. Goss, chief actuary of the Social Security Administration, said that while the Congressional projection would probably be borne out, the change would have no effect on benefits in 2010 and retirees would keep receiving their checks as usual. The problem, he said, is that payments have risen more than expected during the downturn, because jobs disappeared and people applied for benefits sooner than they had planned. At the same time, the program’s revenue has fallen sharply, because there are fewer paychecks to tax. Analysts have long tried to predict the year when Social Security would pay out more than it took in because they view it as a tipping point — the first step of a long, slow march to insolvency, unless Congress strengthens the program’s finances. When the level of the trust fund gets to zero, you have to cut benefits,” Alan Greenspan, architect of the plan to rescue the Social Security program the last time it got into trouble, in the early 1980s, said yesterday.

Now that the banks that keep our money are failing and shutting there doors, the Federal Reserve that is suppose to pay us our retirement pension is underwater; what are we suppose to do? How will we ever survive?

If you can’t tell I am being sarcastic, it is times like these that really create true wealth.

“You can print money, manufacture diamonds, and people are a dime a dozen, but they'll always need land. It's the one thing they're not making any more of.”

I leave you with this "The failing bank systems and government organizations have never been the solution."

The solution comes in simple human needs. We as humans need necessities and those that provide these necessities are the Kings. Housing and shelter are at the top of the priority list.

And I have it starting at .20 cents on the dollar all across the United States. Just this week we have over 500 homes in inventory and more coming every day. But these homes are only for real cash buyers and financial partners.

Angel Investors / Private Investors
Angel Investors

Tuesday, March 16, 2010

All of my frustration occurs when buyers puff out their chest and demand to dictate what the seller will give them and at what price point!

As a principal or DIRECT authorized principal representative, I will share this information with you. If you are an intermediary, don't bother to ask.

Principals, you've got to have and prove you've got deep pockets to play in this game. Take what you are given to start, then negotiate for what you want later.

I'm going to take a leap of faith and assume if you're here, you already know what the prchasing process is... BUT, if you don't or are foggy about the industry process and only way it will get done, I'll take a minute to give you some BG (BackGround) info.

Please bear in mind, I put this site together to educate. The instruments discussed should only be considered by those who have consulted with their financial advisor and fully understand these topics.

Right here, right now, let's dispell the internet myth that "...large REO tapes of up to $1b are readily available."

" me what you've got in a tape. And Show me the Seller or LOA" "People like this are not buyers they are oxygen theives trust me ask two of my account executives that just wasted a whole week with a big group that did nothing but shop suppliers."

Ask yourself this: If you were the owner of a valuable asset, would you throw it out on the internet to see if anyone would buy it? I didn't think so.
And neither will any bank or servicer.

There exists a process or "protocol" which must be adhered to. If you don't yet know the rules or think you're someone special to which such rules don't apply, have fun wasting your time. Unless you're "hooked up" to the source as direct as possible, you're going to be involved in the most hellalcious exercise in futility of your life known as..."the daisy chain".
Or as my partner refers to it (TSI) "Three Stooges Investing"

There are a number of ways or methods in which to use these instruments to make money. Lots of money. Each instrument is a complex but easy to comprehend maze of intricacies. As you read through this information, you will have questions. Questions that I invite you to ask after following protocol.

REO: "Real Estate Owned". The liquidation of "Bulk" REO assets is typically handled by an "Asset Manager". Most times internally to the institution or servicer.

They will typically deliver a pool ($10 Million to $100+ Million) of properties at 55% to 80% (depending on area, even steeper discounts) of the true value including fees. While the pricing has been about that percentage, getting to the list of properties is another story. The reason the pools are elusive, is simply because they are purchased by well positioned investors before anyone "sees" the list.

Buyers must be ready to pull the trigger at a moment's notice on REO packages (1-2 hours max for commitment of LOI,12 hours for deposit into escrow to hold inventory)That means we need to have our buyer's educated and well prepared.

The REO process is extremely competitive so "newbie" buyers/investors to the game will have great difficulties in securing packages if they don't know "how" the deals work and are structured which is where I come in.

The buyer/signatory MUST be identified upfront on the initial note order form or letter of intent. The seller's must know "who" they are potentially doing business with from the start because of the U.S. Patriot Act so if we cannot get past this key buyer ID disclosure issue with involved buyers we cannot move forward.

Buyer ID is crucial and the first step as the seller will be to check their "watch lists” for certain organizations, names and parties that they are prohibited from doing business with under law. Secondary to that critical item is the new "internal" watch lists the banks have in place due to the unbelievable level of fraud occurring in the arena so the involved parties requesting product for purchase “MUST” be disclosed.

Realistic buyers are a must. We need to ensure we are working with buyers who clearly understand the current market and price points.

Much of the frustration occurs when large buyers with deep pockets puff out their chest and demand to get to the front of the line to dictate what the seller will give them and at what price point. They want high-end everything for little or nothing.

Yes, we are in a correcting real estate market but buyer's must be realistic. This type of attitude and behavior will not fly with the banks and selling sources. These types of buyers/investors will never secure product and will likely get themselves blacklisted.

This is one of the "hot" topics with bankers and private sellers right now. They are sick and tired of arrogant buyers, uneducated brokers and consultants.

Financial performance - last but not least is necessary. The buyer's MUST have their finances in order and be able to prove it.

Cash is king and cash buyer's trump buyer's that use credit. Hard money loans from shakey lending sources for newbie buyer's will not impress the sellers and will likely lessen the buyer's chance of securing a REO or notepool.

We all must remember at the end of the day the Seller decides "who" they will do business with period. They are trading trust deeds for cash and they choose who they will conduct business with. Unfortunately, the buyer's and involved parties are not in the driver's seat on this one as there are more buyer's than seller's right now. So let's all be clear on that...the seller's are in control.

NPN: "Non Performing Notes".

Very simply, these are individual or "pools" of residential or commercial mortgages. Once the borrower fails to meet the promise to pay on the note, the note becomes "non-performing". These instruments can be accessed via similar channels as REO portfolios.

Now for the "Catch 22"..."The" Protocol.

That's just it...there isn't just ONE protocol.

Each seller has their own.

Then the paperwork starts flying all over the place - everybody wants "to be protected".

My advice? Forewarn your clients ahead of time that each seller has their own legal department which means their own set of protocol. Which means thier own "Buyer Profile" form and their own "LOI". In addition, your buyer will need to "proof up".
Typically called a "POF" or proof of funds. A simple statement from the buyers financial institution indicating they do in fact have the required liquid funds to close the transaction. No account numbers necessary. If your deal gets this far, it will then be buyer and seller on the phone hammering out thier deal. So, just relax.

And speaking of the seller...
if you're trying to get next to them...It's like this... you have an exotic Italian car. The best mechanic in town is the only person you let service your car. In fact, every exotic car owner in town wants him to service their car.
This many clients keep him extremely busy. So busy in fact, they don't speak directly with him. They make an appointment with his assistant. The work gets done. Everybody's happy.

That's the game.

CA Partnership is filled all CA properties sold!
Nationwide partners being sought: Available 300+ Properties mixed states available / 300+ Non performing notes available

Angel Investors / Private Investors
Angel Investors

Sunday, March 7, 2010


Number of bank failures this year: 22 and counting

Last week, regulators closed 2 banks, bringing the number of bank failures to 22 so far this year. The banks which were shut down are Carson River Community Bank, based in Nevada, with $51.1 million in assets and $50 million in deposits as of Dec. 31 and Rainier Pacific Bank with $717.8 million in assets and $446.2 million in deposits as of Dec. 31. The Federal Deposit Insurance Corporation (FDIC), which insures up to $250,000 per account at member institutions, will take a hit of over $100 million on account of the 2 failures. FDIC says the number of troubled banks jumped to 702 in the fourth quarter from 552 in the earlier quarter. Nearly one in every three banks reported a loss in the latest quarter. Amid recession and a rise in delinquent loans, the pace of bank failures has been rising, from 25 in 2008, to 140 in 2009, and to 22 in just the first 2 months this year. Banks are likely to incur as much as $300 billion in losses on Commercial property loans in the near-term, according to a recent report by the Congressional Oversight Panel, the watchdog that monitors financial bailout. With the economy not showing any signs of sustained recovery, the FDIC’s insurance fund is expected to take a hit of over $100 billion in the next four years.

Construction spending falls 0.6%

According to the Commerce Department, construction spending in the U.S. fell for a third straight month by 0.6% to $884.13 billion in January; construction spending dropped 1.2% in December. Nonresidential buildings in the private sector dropped 0.9% in January, while state and local government construction dropped 0.7%. Federal construction spending rose 1.9% to a high of $30.68 billion in January, increasing for the fifth straight month. Spending on private home buildings rose 1.3%. While housing starts rose 2.8% in January from December, construction permits, an indicator of future projects, dropped 4.9%. New home construction which rebounded strongly in the third quarter of 2009 seems to have lost some momentum. The economy was pushed into its worst slump since 1930s on account of the housing collapse. “We haven’t really seen much improvement in housing,” said Michael Englund, chief economist at Action Economics. “Residential construction is still weak. On the non
-residential side, builders are hesitant to go along on new projects and banks are reluctant to provide the capital.”

HARP gets extension for 12 months

The Obama administration introduced the Home Affordable Refinance Program (HARP) last year to help about 4 to 5 million borrowers who have little or no equity in their homes. The program, administered by Fannie Mae and Freddie Mac, refinanced 190,180 mortgages in 2009 with loan-to-value between 80% and 125%. The program which was set to expire June this year has been extended by 12 months. Edward DeMarco, acting director of the Federal Housing Finance Agency, said the program has been extended to June 2011 in order to "support and promote market stability and to encourage lenders and other mortgage market participants to fully adopt the HARP program, including the implementation of the October 2009 expansion of loan-to-value ratios to 125%." Analysts have been critical of the program and say it has had a limited impact so far. "The overall volume last year was an embarrassingly small amount. I don't think it will make a big difference" to have the program extended, said Thomas Lawler, a housing consultant.

Bankruptcies drop in the U.S. says only 5 public companies filed for Chapter 11 or Chapter 7 bankruptcy protection in February, compared to 19 in the same period in 2009. In January, 12 public companies filed for bankruptcy while 11 public companies went under in December. Bankruptcies of large companies -- with more than $1 billion in assets -- have slowed down. In 2009 about 25% of the companies that filed for bankruptcy had assets over $1 billion while so far this year only 19% percent of the total 16 bankruptcy filings have had more than $1 billion in assets. The improved economic situation and buoyancy in capital markets are helping companies stay afloat. Analysts however warn that the scenario is not entirely rosy and more bankruptcies can be expected. "Last year was like a tsunami, but this next phase will be more like a rising tide; consistent and steady," said William Snyder, a managing partner with CRG Partners. Analysts feel capital restructuring can help companies only to a limited extent. In the long run, what really matters is operational efficiency. Alan Cohen, chairman of Abacus Advisors, a turnaround and restructuring firm, said: "You can correct a balance sheet by manipulating debt into equity, or reducing debt, but unless the entity focuses on improving operations, they're going to have a tough time."

Now after reviewing the short list of information I have provided you above, I will still point out what I feel is the obvious. People everyday waste my time with there buyers "brokers" all stating they can buy 100's of millions of dollars in real estate. Yet not one of them can follow simple instructions, proof up or come to the closing table.

So for Sundays discussion topic:

Parkinson's Law & REO Sales

Cyril Parkinson must have been an astute student of human behavior especially when it came to economic trends and traits; a British Civil service employee, Parkinson originally noted the tendency for bureaucracies to expand over observation sure to be noticed by short sale / REO buyers waiting for approval from big banks. In fact, many of the Parkinson's observations seem to apply especially well to short sale / REO investments including:

"The demand upon a resource tends to expand to match the supply of the resource"

Think about "easy credit". Without easy credit and lax lending terms many people would not have bought homes they were unable to afford to begin with; it's also why modification programs simply won't work in the majority of situations. Despite decades of government intervention designed to make everyone a homeowner, the ratio of renters versus homeowners tends to remain the same over time. Essentially the current situation can be considered a correction back to the "mean."

"The amount of time in which one has to perform a task, is the amount of time it will take to complete that said task"

Again, how many last minute approvals have you encountered recently? While procrastination isn't limited to bankers or brokers, it's certainly alive and well in today's economic arena.

So, how can you use Parkinson's Law to your advantage? It's simple...

1. Expedite Deadlines...for yourself and others. Rather than wait until the last possible moment, start setting deadlines ahead of time for both yourself and others. This not only reduces stress but tends to put you back in control of sluggish situations and lagging negotiations.

2. Put a "product" back into productivity...rather than outline a "to-do" list, start measuring actual outcomes instead. For example, set a date to have all your social media marketing up and running then clearly define what it should consist of and look like. If you aren't able to get it done by a specified date, pull in the big guns and have it done for you; remember, the objective is to achieve a final outcome or goal rather than just "make busy work."

3. Calculate the value of your time...then hire out others to do at least the bottom 20% of the least profitable errands and chores. By consistently doing this on a regular basis it is possible to increase your personal productivity and hourly time value by well over 20 per annum.

Angel Investors / Private Investors
Angel Investors

Thursday, February 18, 2010


I've heard of this all too often.

You have a A to B to C closing all lined up.
You (or hopefully your negotiator) has finally made it through the voice mail hell with B of A. And your gross profit spread is solid and definetly worth your time.

And then it happens. You begin to read the approval letter.

AWESOME! You think as you notice the deficiency judgment
is waived and some of the concessions you've asked for got
approved. And then you see it. As plain as day.

Item #10: "There are to be no transfers of property within
30 days of the closing of this transaction."

Hmm. Ok, you think. Let's forget about this purchase and move onto the next one, because you don't have the capital to hold it for 30 days or more.

The next day you come into the office and think...forget those Bank of America stiffs. Here's another purchase agreement from ASC. I'll get busy on that one. And then guess what happens?

The approval letter comes. And it says

"If the closing agent has any knowledge of any sale or transfer of property within 30 days of this transaction, closing agent must immediately notify lender prior to closing, funding, and/or recording."

“Damn”. Twice in one week!

Then you decide to finish up some of the purchase flips you've been working on, and you're excited to know that Wells Fargo recently relaxed its guidelines to allow financing for "C" buyers.

But then you read their guidelines and it sticks out like a sore thumb:

"Seller must be in title to the subject property."

Oh, that means same day deals can't happen, because at the time of underwriting you, the B investor, aren't on title.

Forget Wells Fargo you scream ...

The next day you wake up and think ... forget those stiffs at Wells Fargo, it is time for FHA. After all, these short sale gurus blew up your inbox with the good news that FHA 90 day seasoning had become a thing of the past.

Until you read the guidelines ... which state that the lender is required to assess, as one of the conditions of the 90 day waiver,whether:

"The seller holds title to the property."


Same day flips can't happen with FHA either.
It looks like there has to be a better way, right?

Well, there is...but only for a select few investors and there brokers!!

Drum Roll………………………

“Its called buying the properties in bulk from us!

No more Hasssles, guidelines, hoops or wasted time.

So "Qualify" your buyers "Proof Up" the funds and "contact us" today to get your future in bulk purchasing rolling today!

Angel Investors / Private Investors
Angel Investors

Friday, February 5, 2010

Quick Trip Down Investment Memory Lane, But read the end because the inventory has never been better.

"Houses cost too much for the mass market. Today's average prices is...out of reach for two-thirds of all buyers". (1948 when the average cost of a home was $8,000).

"In's not unusual to find families of average means buying $100,000 houses. I'm confident prices have passed their peak" (The Coming Real Estate Crash, 1980).

"Most economists agree...a home will become little more than a roof and a tax deduction, certainly not the lucrative investment it was through much of the 1980's" (Money magazine, April 1986).

Think the days of getting rich from real estate are over? Better think again. Take a few minutes to explore real estate predictions from days gone by to see how history tends to repeat itself then get set to join the ranks of the rich by building a REO portfolio. The majority of self-made millionaires derived their wealth directly from real estate but even more importantly, when asked where they are putting funds today...the majority rank real estate as a top designation.

So, what drives the local market? It's a simple question but one which the majority of investors can't communicate when put on the spot.

1. Are basic jobs increasing or decreasing in the surrounding area? Remember, all real estate is local but even within any given town, there are areas of growth and blight. Keep an eye out for business or government building projects, new construction of hospitals or schools and other activities that lead to the need for shelter.

2. Recovery efforts.
Donald Trump has long been associated with the ability to transform undesirable properties into cash cows but the so-called secret of his success has less to do with strategy and more to do with outright courage than anything else. Plain and simple, Trump bought when others walked. Economic downturns tend to frighten away people at the very best time to buy. Position yourself to profit from the eventual recovery by buying right.

3. Migration.
Business and individuals tend to migrate from high cost areas to low cost areas. Follow the tax laws, energy expenses and other information to find out where tomorrow's hot growth areas are likely to spring up.

4. Quality of Life.
Beach-front property never goes out of style since it affords a very specific quality of life. Even the most hum-bug little cottage can fetch tens-of-thousands more than a comparable property located anywhere else due to the lifestyle issue. Properties that provide a lifestyle -not just a home- are likely to remain in high demand long after building styles change.

5. Cost.
No discussion of REO profits would be complete without mention of cost but price alone rarely determines the full potential of any property. Defining a "great buy" is much like's in the eye of the beholder. Learn to see the value of every property in order to sell it successfully.

I have bulk REO Inventory available in many states for .50 cents on the dollar. Contact me today with POF (Proof of Funds) and have your REO Inventory within days!!!

Angel Investors / Private Investors
Angel Investors

Monday, February 1, 2010


It is estimated over 95% of millionaires made their money from real estate. (REAL INVESTORS, BUYING AND SELLING)

On the other hand, the average Realtor / Broker earns less than $40,000 annually.

Why the discrepancy?

Obviously it's quite possible to make stellar returns from real estate yet each and every year plenty of people barely make ends meet even while working at it full-time. Yet research shows that success in real estate doesn't require full-time work, a large private income or many of the other trappings of success typically associated with wealth creation from other venues. In fact, plenty of part-time investors far outperform full time real estate associates each and every year.

Here are some quick tips:

1. Accept Success -
Seriously! Have you ever stopped to contemplate how easily most people accept failure or fate versus those that take responsibility for their own success? It's quite remarkable when you stop to think about it. Understand that everyone is capable of making a success from REO investments - but few people actually do so not because they are helpless but because they wait for help rather than forging their own path. When in doubt about what to do, first find a partner (ME) and then...simply do it.

2. Work at home when possible.
Set a schedule then stick to it. Don't allow distractions to clutter up your productive REO investing time. Hire childcare if needed, find a reputable and reliable virtual assistant and then focus time and energy on building the foundation for your REO empire by automating as much as possible.

3. Dump Dumb Rules.
Simplify your life and investing goals as much as possible. Sit down and think about how much time it takes you to argue / guide or demand things with your partners or employees about some minor situation versus finalizing a deal or making offers on upcoming REO's. Re-evaluate what rules and roles dominate your day then eliminate those that don't enhance your life. "IF THEY ARE COSTING YOU, NOT MAKING YOU MONEY THEN CUT THE CORD IMMEDIATELY"

4. Learn to say NO.
Stop apologizing and don't try to do it all yourself. It's not in your best interest (or that of your family and friends) to tackle more than you are able to deal with on a regular basis. Leave space for down-time as well as impromptu activities. REO investments are especially prone to last minute maneuvers where those that win aren't necessarily the most prepared but simply those in the right place at the right time ready to act with the right partners in place. (WHEN I SAY PARTNERS, GOOD CREDIT, MONEY IN THE BANK AND A WILLINGNESS TO FOLLOW DIRECTIONS....ANYONE WITHOUT THESE QUALITIES DO NOT EVEN WASTE YOUR TIME. "YOU KNOW WHO I AM TALKING ABOUT, THE GUY WITH 20 YEARS IN THE GAME AND NOT A POT TO PISS IN".)

5. List- Buy.
The more you list the more they buy and vice versa...the more you buy the more you have to list as a REO investor. It's a numbers game so take action and automated it as soon as possible. Increase your target marketing efforts on a regular basis; once you reach the desired number of homes, begin to switch your strategy to include more affluent clients.

Angel Investors / Private Investors
Angel Investors


TARP and HAMP failed to halt foreclosures! (Really, did anyone really expect a government program to come through)

In his latest quarterly report to Congress, special inspector general Neil Barofsky said that the Troubled Asset Relief Program, or TARP, has failed to boost bank lending as well as halt the spread of foreclosures -- two key aims of the sprawling program. "Whether these goals can effectively be met through existing TARP programs is very much an open question at this time," Barofsky said in the report. Since Congress enacted TARP, lending to both consumers and businesses has continued to decline. Earlier this month, the Treasury Department reported that the 22 banks that got the most aid from the government's various bailout programs have actually cut their small business loan balances by $12.5 billion since April. "For those of you new to reading between the lines, this is the money that would typically be given to private entrepreneurs and business to reinvest and employee people"

The Obama administration did propose a joint program between the Treasury Department and the Small Business Administration in October to make capital cheaper for community banks that commit to increasing their small business lending, but three months later the government is still drafting guidelines for that initiative. Barofsky, whose office has been closely tracking the evolution of TARP, also criticized the Obama administration's Home Affordable Modification Program. Even as Treasury allocated $35.5 billion towards that foreclosure-prevention program as of the end of last year, only 66,500 homeowners have received permanent modifications, with another 787,200 homeowners in trial modifications. There is no sign that the rate of foreclosures is slowing down anytime soon.

OK Kids lets do the math to make sure everyone understands the numbers:

$35.5 Billion (9zeros) / 853,700 modifications (ya we believe these numbers) = $40,998.00 per mod.



Earlier this month, RealtyTrac, the online marketer of foreclosed homes, reported that foreclosure filings surged to a record 3 million in 2009, up 21% from 2008.

There was at least one bit of good news from Barofsky's latest report however. He acknowledged that while the ultimate cost will still be "substantial" for American taxpayers, it will be less than originally estimated. (HEE HEE HEE, IF HE CALLS THIS GOOD NEWS I WOULD HATE TO SEE WHAT IS BAD NEWS)

Thursday, January 28, 2010


First it was the sub-prime market and now experts agree, adjustable rate mortgages combined with rising unemployment and falling property values could create another economic storm capable of ravaging the weak economic recovery. Here's a quick breakdown of the ARM Storm-Tracker for those savvy investors "FOLLOWING ME" to beginning their planning:

Resetting Rates:
Current interest rates are at or near historic lows with 30 year fixed mortgages below 5 percent while ARM's are likely to readjust and drive the cost of monthly mortgage payments to double their former payments. Unfortunately, many current ARM holders do not qualify for refinancing due to changes in employment status, high loan to value ratios and increased debt to income percentages.

Evaporating Equity:
Not only did millions of Americans take out Adjustable rate mortgages but they built additions and over-improved their homes based upon loans. As home values fell, so did the equity reserves required to refinance their ARM mortgages. Whether it was a first mortgage with minimal down payment or a second (and even third) mortgage, lower property values have all but erased excess equity from a large number of buyers.

Cheaper to Walk:
Many homeowners are finding it less expensive to simply walk away from rapidly rising mortgage, rent for awhile then repurchase. According to industry experts, a significant number of homeowners are capable of making the mortgage payment but simply don't desire to do so given the cost of purchasing the same home after foreclosure. Current homeowners are eligible for FHA loans in as few as three years after default - creating an inverse incentive to continuing paying on a property worth tens (or even hundreds) of thousands dollars less than the existing mortgage.

Renting an Increased Option:
Throughout the nation lenders are getting creative in order to reduce the inflow of defaulting properties on their portfolio; one of the more popular options among existing homeowners is the ability to rent your current property for a specified period of time.

ReFi with an ARM?
It's true, the FHA has a 3.87 five year adjustable rate mortgage option designed to help keep payments affordable.
Unfortunately, it may simply delay the pain until interest rates continue to rise later. However, with a 2 percent cap on each adjustment/rate increase, it could conceivably buy time for those in unusual short term situations such as temporary illness, job loss of other large expenses. It also has the benefit of "buying time" for the banks and lenders who are in no hurry to acquire even more properties given the current backlog of non-performing properties in their portfolio.

What is a savvy investor to do? Get ready for the coming wave of ARM properties to hit the market. But more importantly partner up today with me, Be sure your credit is in place and position yourself to solve problems for both homeowners and lenders in need of a new start.

Angel Investors / Private Investors
Angel Investors

Saturday, January 16, 2010

Auctions have been capturing alot of headlines lately!

So people are trying to sell me on auction services and of course everyone is asking what is better:

What's Better - REO or Bank Auction?

Big nationwide auctions have recently made headlines but what is actually better for the average investor...REO or bank auctions? Let's take a few minutes to examine the pros and cons for each.

Title -

Purchasing a property via auction frequently entails a commitment to all outstanding debts including unexpected liens and other judgments in addition to those for which the auction is taking place. By purchasing a bank owned property you will typically have assurance of clear title or at least a complete awareness of other fees or liens due.

Occupants -
Property sold at auction frequently has tenants or prior owners still in place, causing new owners to engage in immediate action in order to take possession. Bank owned properties have often evicted former occupants thereby eliminating the need for out of pocket legal expenses. Just keep in mind, this is changing and some short sale investors have encountered squatters. On the other hand, depending upon you plans for the property, having paying tenants may be a strong positive.

Finance Terms -
Auctions require advance funding to be in place while bank owned properties may actually offer added terms or beneficial interest rates in order to move a non-performing property off their portfolio. Since it can cost a lot of money for a bank to keep a property on their books, one way they entice others to purchase is by negotiating the terms of the finance offers. This is especially true in areas where lenders may be limited by the number of homes they can release on the market (ie, federal regulations prohibit "dumping" in certain neighborhoods - often the same ones where many non-performing loans were originally written). By offering highly favorable financial terms, banks are able to shift properties off their books without continuing to drive down prices.

Bottom line -
Short sales are perhaps the best bargain of all but don't underestimate the value in bank owned properties. Auctions are a lot of fun but not always indicative of the best value especially for those just starting out or who only intend to purchase one or two properties.

If you are searching for REO properties I am including a link for the properties directly from the banks. Review them and if you have any questions or need help growing your business let me know. We are opening offices Nationally but only one netbranch / partner per state!

Click on the link below for the list of properties for sale in your area: Most people would charge thousands for this list and inventory!!!
AltiSource Homes - formerly Ocwen

JP Morgan Chase Bank REO (also includes Wells Fargo properties):

M&T Bank REO:

Wachovia REO:

SunTrust REO:

Compass Bank REO:

Fannie Mae REO:

Freddie Mac REO:


Regions Bank Properties

Citibank REO

SBA Properties

FDIC Real Estate Owned

BB&T REO (Branch Bank and Trust)

Beal Bank Commercial REO

GRP Financial Services Properties

People's Bank REO,,1355,00.html

National City Mortgage REO

Taylor Bean REO

Downey Savings & Loan

Beal Bank



Compass Bank

Fannie Mae


Fidelity National Financial

First National Bank of Alaska

First Preston

Freddie Mac




HSBC Commercial


Kennedy Funding

Kentucky Housing Corporation

Keystone Asset Management

Lexington State Bank

M&T Bank

Mortgage Lenders Network

New South Federal Savings Bank

PNC Bank

Private Financial Services (Bank of OK)

Regions Bank

REO Trans

Security National

U.S. Department of Agriculture

U.S. Government Home Sales

Virginia Housing Development

Wells Fargo Commercial

Zions Bank

Angel Investors / Private Investors
Angel Investors

Wednesday, January 6, 2010

Can you sell a house over the phone! Does your realtor make 3% commission for doing nothing? The answer is Yes!!

Much has been written about secrets to telephone success for all types of sales but rarely is it possible to obtain all the best possible tips in one convenient place. Here at my blog I make a practice of providing information you can really use in your day to day investing techniques so without further ado, here are the top eight secrets to phone success for REO investors. I am sure you are all aware that I am not a big fan of people that expect to get paid for doing nothing. So make sure you try selling your own projects to have a better understanding of what is involved. Craigslist, postlets and signs are very inexspensive and the same tools that realtors use. Just save you up to 7%!!

1. UP the Ante.
Buyers who call to inquire about homes listed in advertisements with a price listed can usually afford more. Research indicates most people responding to an ad with a listed price tend to be more conservative and searching for bargains. Make a point of asking about upper limits then provide enticing alternatives whenever possible.

2. Downsize.
Buyers calling about homes with signs in front are usually at - or above - their upper limit. Research indicates prospective buyers that respond to yard signs often have lower income or credit scores. Be sure to screen callers carefully and have other more affordable options available.

3. Ask questions.
The person who asks the most questions tends to be "in charge" of the conversation. Be prepared to ask plenty of questions when responding to a call or inquiry; it's a good way to begin building a list of potential prospects.

4. Follow-Up.
Experts have found that buyers and sellers rarely tend to call back but will respond to information that meets their search criteria. Make it a priority to gather relevant information then follow-up whether via email, phone or standard mail.

5. Ask.
Always ask buyers if they have a house or other property for sale. Even if you don't make an offer, it could become an important part of the negotiation process. It's also a quick way to generate a little extra cash or goodwill by making a referral to your favorite agent or broker.

6. Don't Make Assumptions.
Investors tend to have clearly defined goals so it can be difficult to realize that both buyers and sellers may have little idea what they really want. Don't make assumptions - instead, realize that lack of information is a rampant problem among many Americans. Be prepared to provide information, examples and education
to make the deal work.

7. Compare the Competition.
Most of the time, both buyers and sellers will have other ads circled. From time to time savvy REO investors should know the local competition both in terms of what is for sale and the amenities offered. Don't shy away from comparing your property or service against others - just be sure to do it in a positive way that reflects information.

8. Sell a Service - Not a House!
This is a common mistake among novice REO investors. Remember, every contact is an opportunity for present or future clients so make the most of it. Rather than responding about a specific property, learn to develop a relationship instead. After all, once the caller has rejected the property they have typically rejected your service. Differentiate yourself by providing solutions to their problems rather than just information on a single property.

See you at the top!