Most real estate investors think the way to riches in real estate is to buy a property, fix it up, sell it, and cash the big fat check then do it again.

Do it again? Start all over and do it again? That sounds like WORK to me. Doesn’t it to you? That’s not what investing is.

These good souls have the real way to wealth all confused. Whether I am investing time or investing money, to me investing is doing something today that pays you forever. First these “fast flippers” think that in order to make a profit they have to buy cheap. That’s true but that’s only part of the story. I say you make your money going in, but you realize your profit when you sell. You must be able to sell the thing and sell it quickly to realize that profit. What if you could realize profit when you sell and ALSO get cash every month as well? Most long-term investors these days are watching their returns erode at an alarming pace. Property taxes, insurance, maintenance, yard care… it doesn’t stop. But even more costly is the interest on the loan to buy and repair the property. This could all be avoided if they just understood where the real money is.

As I said, you might make your money when you buy but you don’t realize it until you sell. Every expense between these two events comes right off the bottom line. Your final check, after all costs and expenses, tells the story. How long it took to make it and how much pain and suffering you went through to get it doesn’t show on the check. But it tells the truth. How about another way? A way I have found that makes this business so brain dead simple and profitable it will surprise you. It’s what I call the Street Smart® way. What’s really powerful about this is that by buying right and buying cheap using the right method of financing allows you to offer the property with very favorable terms to your buyer. Instead of sending them TO the bank you BECOME the bank through several programs I’ll discuss later.

Due to space limitations, I had to edit out parts of this, but it will help give you the gist of a few of the things I will be teaching when we meet.

Step 1: A Better Way

So what is the Street Smart® way? When it comes to the safest way to make the most money quickly it’s to get your buyer before you buy. That’s right. Have potential clients tell you exactly the type of property they want, when they want it and where they would like to live. Talk to and interview anyone and everyone… from the restaurant server to the shoe store clerk. From the nurse to the policeman… from the teacher to the fireman… interview everyone you meet. Become a housing consultant. Soon you will find out the power in this. Action Step: Learn to find buyers.

Step 2: Generate Leads Now

Everyone you meet is a prospect. Everyone. There are two scripts that I use… you should memorize them. This is just one of the many proven lead generators you will learn in my “House Monster™” system. Following this way is powerful, productive and profitable. Even though the Federal tax credit program is gone we replaced it with “Uncle Sam Bucks” as there will always be some program you can offer. These “bucks” grab attention and give people a chance to dream of something they didn’t think was possible. Action Step: Memorize and use these two scripts.

Step 3: Uncover Your Money

Once you have found the prospect and generated interest, you ask questions to uncover any money the potential buyer may have. Your “Preliminary Application” form will do the work for you. Ask, “How much do you have to work with towards your next home?”

It’s amazing to me that since I started doing this I have uncovered numerous real people with real money they will put down to buy a property.

Recently at one of my “Down-payment Auctions,” a visitor told my friend and coaching client, Ron, that he had bad credit and he would not be able to qualify for a loan. Ron explained that with our program that was not a problem. Ron asked him how much he had to work with. He said $50,000. Turns out he has some serious credit issues but those were caused by buying a property that has lost a lot of value and he’s way upside down. He tried to get a workout but the bank wouldn’t listen. He said he was giving up and moving on. He loves our program and has looked at 3 houses. We are working with him now.

In just a few weeks of “House Monster™” marketing, we found two people with $40,000 for a down payment, one with $20,000 and two more at $10,000. Not to mention lots of people with $2,000 to $3,000 cash!

So why am I telling you this? The reason is there is plenty of money when you have something that works for real people. The House Monster™ solution I’m sharing with you transforms the typical investor strategy into a way to help people and make money at the same time. Action Step: Ask the right questions to determine how much cash your prospect has, or has access to.

Step 4: Create a Business with a Greater Purpose than Money

Become an “Affordable Housing Provider”. Our mission statement is “Transforming Lives Through Affordable Housing to Empower Families and Individuals to Enjoy the American Dream of Homeownership”. Do you believe owning a company that does this is a good thing? Do you feel your company would be blessed if you embrace this mission? We do and you should too. This truth will show through. You can earn publicity and support that you simply can’t buy. It will open doors with churches, government, foundations, non-profits and more. Action Step: Adopt a new mission for your company, serve the community and serve yourself.

Step 5: Understand Your Client and Their Issues

It’s the rare bird who can qualify for a home loan in this economy. In fact, 73% of the home loan applicants are turned down! The reality is your client will likely have credit issues. The large majority of buyers today have some kind of credit issues. Damaged or no credit will become your specialty. This opens your doors to many more clients than the few who can qualify for traditional loans. Let the real estate agents deal with them and give you all of their leftovers.

Being willing to work with those who have had credit problems in the past gives you much more opportunity than the traditional investor gets. During the interview process (script) you will uncover core issues that have prevented these prospects from buying in the past and worse yet stopped them from even considering it.

As you learn this new way of approaching your business you will uncover issues that debilitate really fine people. I have a saying, “Sometimes bad things happen to good people.” When you reveal that it is possible for someone who never saw themselves owning a home ending up with one, it blows them away. You bring options. Not only that but doesn’t this make you feel really good about yourself and your business? It doesn’t stop there because this is really profitable for you and your family as well. Action Step: Get to know your prospects – ask more questions.

Step 6: Have Many Solutions to Solve Client’s Problems

Now for the real magic of the Street Smart® way. Most investors have one way to sell… All Cash, usually paid with a new loan from the buyers lender. With the Street Smart® ‘Path To Home Ownership tm’ method we have many ways to sell our properties. Four of them are:
1. Rent
2. Rent-To-Own
3. Owner (In-House) Financing – Agreement For Deed
4. Cash (typically FHA or conventional financing)

Action Step: Learn all the Street Smart® methods to take any lead and turn it into a client. (Don’t worry – I’m going to teach you these in this system.)

Step 7: Discover All the Ways to Add to the Down Payment

Cash is not the only source of down-payments. Government grants for housing are plentiful. Find it locally and I’m going to tell you how. People can borrow from their IRA and 401k plans for down-payments. Again, you will scoop your competition as they do not know these things. You will sell while everyone else stands by and wonders what’s happening. Truly amazing they will say. You will say, “I’m sure glad I found out about the Street Smart® way to sell.” 

Okay, so now I’ve given you some ideas on how you can help others while making a very tidy profit for yourself. I’m looking forward to meeting you and giving you a lot more details on how we recently bought AND sold over 50 properties in 12 months and how you can easily copy what I do to this day.

Here’s to your profits!

Lou Brown

Come hear Lou Brown at MP on March 7th at 7:00