THE DEATH OF THE SINGLE FLIPPERS..LEADS TO THE BIRTH OF BULK BUYERS WITH ME !

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."

Ouch!

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

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 California...it'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 beauty...it'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

REFOCUS TIME, TIPS TO REMEMBER !!!

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

Seven Key Rules for REO / SHORT SALE Investing!!

Foreclosure flipping can be deceptively simple even for novice investors but that doesn't mean it is risk free.

Like any investment strategy, a bit of intelligence can go a long way. Here to help get you up to speed are the seven most important rules for intelligent investing:

1. The Greatest Risk to Your Return is YOU!
Repeat this every day until it sinks in. Nobody else is to blame for your failure or success but both are within your grasp. Recognize how your actions and attitudes either work for or against your success on a daily basis then get busy building wealth.

2. Don't Hire Advisors Without Value.
Mentors, information products and advisors are essential but make sure they will actually add value rather than just costing you more in the long run.(95% of the people that want to learn, work for you or partner really are only there for themselves and will only cost you time and money out of your budget.
**Ask your self this: Did this person bring money, credit, or physically work and rebuild the house with you. If the answer is no to any of these dump them like a hot potato. They are leaches and will do nothing but drain your budget.

3. Ignore Short Term Noise.
The media thrives on generating chaos - its entertaining but not necessarily good investment advice. Learn how to see beyond the madness to see true opportunity. They make money by telling stories, we make money by rebuilding the community. Houses don't lie reports and writers do!

4. Manage Expectations.
Learn how to crunch the numbers, generate profit potentials, remain liquid and tackle taxes to keep expectations in alignment. If you find your numbers are "off" then understand why and how..then fix it. If they are consistently off then you don't have a math problem...you have an attitude issue to work with. Likewise, learn how to manage the expectations of others - from sellers to bankers it is important to keep the lines of communication clear.

5. Don't Confuse Investing with Entertainment or Speculation.
Hey, REO's really are fun once you get a system in place but that doesn't mean you shouldn't treat it like business. Avoid ego trips, power plays or any type of games -keep the speculation for the tracks and entertainment for poker night.

6. Reduce Costs - Maximize Write-Offs and Enhance Profits at each and every step.
Do not allow yourself to fall into the pattern that it doesn't matter (Everything and every penny matter, speaking from personal experience I just had a project manager cost me 20k over budget because he just wanted to stand around and order people to do things instead of doing it himself).
A little extra here and a little extra there add up to big differences in the bank account over the long haul.

7. Focus on Real Returns.This isn't Monopoly money. Focus on after cost, after tax, after inflation, actual risk adjusted real returns on every dollar invested. That is the final measure of risk versus reward so make sure it accurately reflects your total investment. While the government might be satisfied to play games with inflation adjusted returns, don't believe it for a minute.

I was asked what the magic trick was, or which bank I was paying off. I stated no just simple rules of engagement!

New Rules for Investing after the Bust

Investing in short sales / REO's after the big real estate bust is different.
There was a time not so long ago when the only factor required to make a profit in real estate was ownership; wait long enough and the price would go up magically.
There was little need to repair, renovate or even rent out the property. Just sit on it a few months and allow the market to drive up the cost until it was time to sell. Today, things are not so simple; it requires an entirely different mindset to invest in real estate after the bust but that doesn’t mean there are no profits to be made.

In fact, there might be more profits than EVER for those willing to keep pace with change and modify their investment strategy.

Here to help are new rules for investing in short sales / REO's after the big bust:

1. Know the Area and Audience. Take the time to understand the area, target audience and banks you will be working with. The more informed you are the better prepared you will be to take advantage of the best opportunities.

2. Follow the dumb-money. Unlike investing in the stock market where people constantly try to figure out where the smart money is going…short sale / REO investors should be on the trail of ‘dumb money’…those people that bought more than they could afford, failed to have a safety net or otherwise need out –now. You are their solution so search for the problem.

3. Don’t take it personally. While some media pundits make short sale / REO investors out to be greedy land barons (you should be so lucky!), the reality is those that dislike short sales / REO's are no more honest nor less self-interested than those that deal directly with foreclosures, by-owner listings or other types of investments.

4. Understand opportunity. There are times when “averages” don’t truly reflect the full value of short sales / REO's; remember, there are always bad deals made by ill-informed people including those new to short sale / REO investing. Unfortunately, it tends to drive down the full potential by hiding the outstanding profit potential realized by those that work deals right from start to finish.

5. Admit when you are wrong. Falling in love with a property happens – it shouldn’t but it does. Learn how to cut your losses and work this system like a business. If you don’t know enough – learn it. If you are making emotional decisions – get a mentor. Everyone has something to learn so face the facts…admit when you are wrong or in need of help then take action.

6. Don’t take advice from inferior agents or others without a proven track record! Book knowledge is one thing but results are entirely something else. Before taking advice from anyone – ask to see their real results….the ones with the dollar sign in front. Then ask to see how many times they were able to repeat the results. Remember, anyone can get lucky once in awhile but that doesn’t mean they have a system that really works. (NOT LIKE MINE!!!)

7. Portfolio’s matter especially when credit gets tight. Have a track record of success to show prospective lenders – it makes each consecutive deal even easier.

8. For the right price even inferior properties can be a good buy. Perhaps a house isn’t to your personal preference but it could be the perfect bachelor pad for someone that desires low cost and easy maintenance; whatever the specifics of the property may be – chances are it works for someone. Learn to ascertain the value of the property by price, cash flow and appreciation rather than personal preference.

9. Keep your eye on the big picture. Know why you are investing in short sales / REO's and then work the program.

10. Beware of hysterical analogies. Yes, the nation has problems but we’ve had problems before. Rather than take a hysterical outlook on life, learn how to become proactive instead. It refines the ability to invest, protect your financial future and form a strategy for tomorrow. Even if this nation were to confront a “lost decade” like that experienced by Japan…take a look at how real estate performed. While it didn’t go up (little did), it managed to hold its own…an impressive feat considering they have 100 year mortgages (intergenerational) in some part of Japan.

THE BEST QUESTION I HAVE BEEN ASKED IN A VERY LONG TIME!!!!

I had a great conversation today with an old business partner of mine, and he asked me the best question I have been presented with in a long time. That question inspired me to write this blog and hopefully will inspire some of you to partner up / invest and help grow the company. The question you ask: Why I left the Import / Export business to wholesale REO properties to investors and home buyers?

The answer was simple, yet led into a two hour conversation with him and by the end of the phone call he was talking about moving to MN and looking into who he knew or how he could help me get the financing needed to partner with me on my deals.

For those of you reading I will go into short but further detail explaining the science, math and exit strategy behind why I left the import world for the world of REO investing. The answer was simple ‘I explained’ Why buy 1,000 Ipods just to make $20,000, when I can buy one (1) home for less cost and make $50-60,000.

BUYING WHOLESALE ELECTRONICS:

When buying wholesale electronics I would purchase hundreds to thousands of units directly from the factories, just to wait for them to clear customs and be delivered by cargo freight to the United States. Once they arrived I would have to warehouse them and then hustle to get them to distributors for sale online or in smaller retail shops. This process takes all cash up front to purchase and ship, and the average time for purchase, shipping and sale is 120-150 days. Imagine all that work, stress and time to make what an average of $10.00 per unit after all cost. So do the math:

Simple Math:

1,000 IPOD’s = 1,000 x $100 (Wholesale cost from factory)= $100,000.00
Wholesale price to distributor from me (includes all fees and shipping) = $123.00
Profit per unit after costs= $20.00

This is a Standard deal for a medium sized online retail group. So as you can see the total profit is only $20,000 for something that might take four to five months.
The huge downside to this business is you are buying directly in cash from overseas, there are no guarantees that you even get the product let alone that it is even officially licensed product. Lastly once you have the product state side you need to sell it cheaply enough to compete with the big box stores.

INVESTING IN WHOLESALE REO PROPERTIES:

When investing in Reo properties I have taken everything I have learned from over 14 years of my Import and Global Executive career in wholesaling and applied that in a approach formula that is a win for the banks in removing there toxic assets, a win for my partners and investors and a win for the buyers and communities we invest in.

This will explain the formula in brief detail for your review of the REO Investment program. I am buying houses at .20 (twenty) - .30 (thirty) cents on the dollar. These homes are 3 bed+ 2 bath 2 car garage in prime locations throughout MN (program can be applied in any state or country). When it comes to the Rehab of the property we handle all construction management. This ensures the margins are kept for all renovations at under .50 (fifty) cents on the dollar. The Rehab quality we perform on our properties is to “NEW” construction condition.
Meaning our homes look, smell and appear to be new construction to the investor and buyer.

OK, we have a home fully renovated to new condition in a prime location that is purchased and rehabbed at less than .50 (fifty) cents or 50% of its current true market value.
During the process of purchase and renovations my team of real estate agents and marketers has been advertising the home for direct sale to investors and end home buyers. Selectively making sure that by the end of construction we have a buyer lined up to close in under 20 days after inspection. Total time is 30-45 days from purchase to sale of property to end user.

Simple Math:

1 of “MY” REO Homes = 1 x $20,000 (average cost to purchase) = $20,000.00
Renovations of the home = $40,000 (average cost everything upgraded to new) = $40,000
Total cost to purchase, renovate, and close = A + B = C($60,000.00)
True Market Value in Today’s Market after repairs = $175,000.00 (average)

Exit Strategy:
We are here to move the houses as fast as we can and sometimes we will sell the home even before we purchase or start construction. The difference is not just finding superb properties but adding and giving value to the buyer whether they are end buyers or investors. The way we do that is the quick sale model of selling the property at an average of 75% LTV* for the sample property that means we would sell this home to the investor for $131,000.00 leaving over $44,000.00 in equity with a completely like “new home” as incentive to buy from us.

Profit for the company and partner after selling the house and paying interest and fees = $61,000.00
Fees include closing cost, agent fees, misc. =10,000 on average.

If you are my new partner or client I just split $61,000.00 with you 50/50. I currently have more properties than I can handle and need the influx of new partners or investors to make our company the hottest investment firm to hit the Midwest.

After reading this I hope you are as excited about the opportunity as I am, please contact me directly with any questions you might have. And I look forward to seeing how many properties we can buy and sell together.

Looking for Business partner!

I can Buy Homes at $0.20-0.30 Cents on the dollar in great structural shape, Rehab them in less than 30 days to new current condition and sell them to investors or end buyers at $.070 Cents on the dollar for great returns Average sale price $125-175K

Looking for Investor or Capital Partner to launch company!
*Needed Immediately: $3-5,000 for operating capital (secured with collateral and ownership) *Construction Investment: Needed to cover project rehabbing. (30 days)
* Purchase financing already arranged.

Here is the breakdown of my business and what we have set up. My company wishes to purchase and help real estate investors locate properties here in the Twin Cities that are listed, or not listed on the MLS ( Multiple Listing Service) and arrange the investor to pick up the properties typically around .20-30 Cents on the dollar. Once the property is acquired we receive our fee of $5000.00 at closing. We are a full service agency that arranges everything for the investor. So after acquiring the property we handle all project management for the renovations. As a company we make 10-15% of construction cost for this service, example of profit $40,000 in renovations x 15%= $6,000 company profit. We also help market the property during the construction stage for the investor to flip the house to an end user. We make 2.7% if we are able to sell the house without the use of a realtor. I have currently three real clients I am working with that have the ability of purchasing houses this month. I need to devote all of my efforts and attention to them and the continued growth of the company. (Hence the need for immediate Partners).

I have current obligations that must be met immediately that is why I am in need of the working capital. If you and I can come to an agreement immediately I will be able to pay you back this month with interest if that is agreeable. In regards to collateral I am a start up company but could offer idealistically a partnership with you long term, or place some of my personal belongings up that would more than equal the short term loan amount, or ownership in the business. Please let me know your thoughts. Please contact me directly to discuss this as I am sure a phone conversation will better explain my company, myself and the needs for the capital. I would like to buy these homes for the company itself, but have set two avenues to generate income.
1. Company home and 2.Investor Services.
1.If purchased by company and sold: House apprised at $150K (Average profit if sold at 120k is $60,000 Cash)
2.If purchased through us to investor: House apprasied at $150k (Average profit to Netbryce from fees $12,000 Cash)

There are an endless supply of homes and qualified rent to own tennants, buyers and investors to flip too. Contact me today so that we can discuss terms of agreement and set up a meeting to get together. The state of the market has never been better for this type of investment and multiple exit stratagies are in place for Netbryce homes or investor homes ranging from portfolio,rent-to-own and wholesale.

The team has been established and all parties are ready to go once I have secured capital for full time commitment on my part. Full service team consist of Reo Buyer and negotiator, Real Estate and Short sale agent, Loan Originator and Broker, Title Company and Closer, Marketing and Exit Stategy Manager and Construction Project Management and Sub-contractors.