Tuesday, September 23rd, 2014

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“Norton’s Secret Profits Formula, Part Duex (Plus, Win a Flip Cam)”

Hey, let me just say, I think you’re going to be really glad you opened this blog post today. :-)

For starters I have something really freakin’ awesome to share: Part two of my “grilling” interview with “Mr. Six-Figures-A-Month”.

I’m also hereby inviting you to toss your entry in the hat for a big contest this week, and the prize is a brand new Flip Mino video camera (NO real estate investor should be without one of these babies IMHO).

Quick Update: The contest is over, and the winner is announced in Bob’s video, which you’ll find embedded in the comments section below. Just keep scrolling down till you see the video of the guy with the crazy-awesome goatee…

To understand how this is gonna work, please watch this short video I made at Starbucks with my 7 year old Alyssa (No, I don’t let her drink coffee, and yes, that’s one GIANT Rice Krispy Treat)……

Yep. Norton Kills It. Again.

If you were able to eavesdrop in on our pre-holiday expose’ (“6 Figures-A-Month Investor Reveals New Secret Profits Formula”) then you already know it was a powerful impressive couple of hours.

Clearly a nerve was struck with more than a few folks who really appreciated the eye-opening excursion through Bob’s current biz model.  We can tell…cause frankly the emails just keep coming.

We tried hard to get through as many questions as possible, but ended up closing out with a number still in queue.  So we promised to answer the rest of them in a follow-up session - which we just finished.

AndehWOW! I honestly think session 2 might be better than session 1. At least in my opinion. You can tell me if you agree.

A Few Tasty Morsels From Part 2…

It’s really too much to list, but here’s a partial smattering of what we talked about…

  • Another look at his “new formula” for buying in today’s market
  • What exactly is a “clean REO”?
  • How to understand the mindset of today’s “wholetale” buyers
  • How Bob feels about properties with mold
  • How his formula changes for higher-end markets Vs. medium-range markets
  • A closer look at his Utah Vs. Detroit flips
  • How he’s best testing verbal offers with FDIC properties
  • How to effectively “shop” a bank’s counter offer (takes your risk to zero)
  • What type of market does this model work best in?
  • Investor/agents: How to find an “investor friendly” Broker
  • Is Bob still lending private money? If so, on what terms?
  • Right/wrong ways to approach people for private money
  • Story of a guy who tracked him down (from LA) and showed up on his doorstep for advice
  • Can/can’t you assign contracts with this model?
  • And a whole bunch more…

Guys, this is killer stuff. I really hope you get how powerful it is what Bob’s sharing.

(I want!)How to Win the Flip Cam…

Step 0: Watch the “Starbucks” video (top of this post) if you haven’t already.

Step 1: Listen to Bob’s 2 “Secret Profits” sessions (below).

Step 2: Take written, ACTION-ORIENTED notes.

Step 3: Post your action-oriented notes in the blog comments below.

Deadline: Conest runs from Mon. 1/5/09 thru Fri. 1/9/09

Quick Update: The contest is over, and the winner is announced in Bob’s video, which you’ll find embedded in the comments section below. Just keep scrolling down till you see the video of the guy with the crazy-awesome goatee…

How to Listen to the Free Replays…

Easy as pie.  The whole thing’s pasted for you below.  I broke it into 4 easy-to-digest chunks which you can listen to right here from this page, or download MP3s and stick ‘em on your iPod or burn CDs if you prefer.

Please keep in mind that since this is “Part Duex” (2), you should really make a point to hear part 1 first if you haven’t already.  To make it super-easy, I pasted that below for you also.

“Norton’s Secret Profits Formula” – Part 2 of 2

Part 2-A (36m:46s)
Press “play” to listen or right-click here to download MP3…

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Part 2-B (25m:24s)
Press “play” to listen or right-click here to download MP3…

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Part 2-C (27m:09s)
Press “play” to listen or right-click here to download MP3…

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Part 2-D (31m:12s)
Press “play” to listen or right-click here to download MP3…

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

“Norton’s Secret Profits Formula” – Part 1 of 2

If you missed this one, start here (or don’t come crying to me if you’re confused).

Part 1 (entire original session – approx 2hrs)
Press “play” to listen or right-click here to download MP3…

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

A Quicky Tip: Taken the survey yet? (mentioned in the audio) If not, do it here. (opens in a fancy new window)

Another Quicky Tip: Want to speed up the above audios so you can listen in half the time? Try the free MySpeed plugin for Windows.  (Honestly, I don’t know how the heck I ever got along without this thing.)

Ok, so enjoy, and I look thoroughly forward to your riveting, action-packed comments!

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About 

JP Moses is a roughly-hewn man-child who first got into REI after reading Rich Dad, Poor Dad back in Y2K and went full time in 2002. He's tinkered in everything from landlording to short sales to rehabs to Realtoring to REOs to notes to owner financing, blah, blah, blah...Till he finally stuck his flag deep into wholesaling and has since flipped somewhere north of a couple hundred deals.

JP's not a “guru” but also doesn't think it's a bad word. Among his core values are authenticity, creativity, big honkin' value, general fun-ness and being unshaven. He's super proud to be chief blogger guy at REItips.com and host of the free REIology podcast. He also thoroughly enjoys sharing his 53 best real estate investing forms with anyone who wants them. You should totally check that out. :-)

  • Brooks Conkle

    I am brand new to investing (24 yr. old, just back in the county from trip to New Zealand). 2 weeks ago, I called an ad in our local newspaper — someone had 5 houses listed for sale in one ad. That phone call turned into a lunch appointment (I just happened to call a local investor that purchases approximately 100 houses a year).

    I listened to segments 1&2 yesterday morning. I had a second lunch appointment with this investor yesterday. He liked my youth and enthusiasm and decided to bring me on to assist him and his partner screen deals : )

    So, I have found my first money people. If I bring them a hot deal, they can close ASAP.

    I listened to segments 3&4 today.

    I have been researching whether or not to get my license. From what I gather (JP and Bob — feedback?) the most important thing you can get is access to MLS.

    I have an agent friend who I gave leads to (not enough equity for any type of deal but a retail one) that have lead to multiple listings and a sale for her! She is willing to show me Any house at Any time and has also granted me MLS access whenever I want it (please don’t tell her I use it daily).

    I have since researched and found the 4 top agents last month in my market (Mobile, AL) — turns out, all 4 of them were REO/Foreclosure agents — go figure. My next plan is to contact all 4 of them.

    I also drove around my town 2 days ago and wrote down every number on ‘We Buy Houses’ signs. I’ve called half of them already. Just a simple way to meet more buyers in your city…

    Looking forward to more hints and tricks on Reitips.com and Bobnorton.com !!

  • Brooks Conkle

    I am brand new to investing (24 yr. old, just back in the county from trip to New Zealand). 2 weeks ago, I called an ad in our local newspaper — someone had 5 houses listed for sale in one ad. That phone call turned into a lunch appointment (I just happened to call a local investor that purchases approximately 100 houses a year).

    I listened to segments 1&2 yesterday morning. I had a second lunch appointment with this investor yesterday. He liked my youth and enthusiasm and decided to bring me on to assist him and his partner screen deals : )

    So, I have found my first money people. If I bring them a hot deal, they can close ASAP.

    I listened to segments 3&4 today.

    I have been researching whether or not to get my license. From what I gather (JP and Bob — feedback?) the most important thing you can get is access to MLS.

    I have an agent friend who I gave leads to (not enough equity for any type of deal but a retail one) that have lead to multiple listings and a sale for her! She is willing to show me Any house at Any time and has also granted me MLS access whenever I want it (please don’t tell her I use it daily).

    I have since researched and found the 4 top agents last month in my market (Mobile, AL) — turns out, all 4 of them were REO/Foreclosure agents — go figure. My next plan is to contact all 4 of them.

    I also drove around my town 2 days ago and wrote down every number on ‘We Buy Houses’ signs. I’ve called half of them already. Just a simple way to meet more buyers in your city…

    Looking forward to more hints and tricks on Reitips.com and Bobnorton.com !!

  • Mike Cellini

    After listening to the audio, I wanted to rip off my clothes and run around the house yelling Woo-Woo.
    Hopefully I put a smile on your face, if not, then I am sorry.
    I have struggled with my real estate investing business. I began as a landlord- not for me. Now, I am retailing 2-3 deals a year. My income is slightly above the poverty line.
    This audio helped me climb to edge of the proverbial box. Mr. Norton described wholesaling in a way that make sense in my market- this excites me. The 20-80 Rule fits me. I love that he, Mr. Norton, spends 20% energy to get 80% of the results- the dept of energy could learn from you.
    I love both of you for your inspiration and your constant generosity to me and the community who listen to the audio and read the text from your site.
    I would love to have Mr. Norton as myh mentor – if he should ever consider 1-on-1.

    Thanks guys and may God continue to bless you and your families.

    Respectfully,

    Michael L. Cellini
    Rochester, Minnesota

  • Mike Cellini

    After listening to the audio, I wanted to rip off my clothes and run around the house yelling Woo-Woo.
    Hopefully I put a smile on your face, if not, then I am sorry.
    I have struggled with my real estate investing business. I began as a landlord- not for me. Now, I am retailing 2-3 deals a year. My income is slightly above the poverty line.
    This audio helped me climb to edge of the proverbial box. Mr. Norton described wholesaling in a way that make sense in my market- this excites me. The 20-80 Rule fits me. I love that he, Mr. Norton, spends 20% energy to get 80% of the results- the dept of energy could learn from you.
    I love both of you for your inspiration and your constant generosity to me and the community who listen to the audio and read the text from your site.
    I would love to have Mr. Norton as myh mentor – if he should ever consider 1-on-1.

    Thanks guys and may God continue to bless you and your families.

    Respectfully,

    Michael L. Cellini
    Rochester, Minnesota

  • Lloyd

    Action oriented notes for Bob Norton’s method:

    * Get my real estate license and hang with investor friendly broker…
    Actually, finished everything for the license in Nov, 2008; after listening to the first call, I decided to activate the license. I found a small investor friendly brokerage to hang my license with. Actually, the brokerage was established as funnel for a local mortgage company/ bank to generate business. As a benefit, I have an opportunity to quickly develop relationships with a lender and people who have money.

    * Establish deal parameters – price points, types of residental properties, desirable locations and neighborhoods to buy…

    * Farm the neighborhoods – use the mls to identify REO properties located in these neighborhood; visit the properties (with contractor) and identify potential opportunities

    * Run the numbers to identify deal from the potential opportunities

    * Establish relationship with REO brokers and make offers on the deals

    * Establish credibility… As a recent victim of corporate downsizing I now have access to my 401k. I am considering converting my 401k into a self directed IRA and use it to do my first deal in order to claim a success story to present to pontential partners/ private money sources.

  • Lloyd

    Action oriented notes for Bob Norton’s method:

    * Get my real estate license and hang with investor friendly broker…
    Actually, finished everything for the license in Nov, 2008; after listening to the first call, I decided to activate the license. I found a small investor friendly brokerage to hang my license with. Actually, the brokerage was established as funnel for a local mortgage company/ bank to generate business. As a benefit, I have an opportunity to quickly develop relationships with a lender and people who have money.

    * Establish deal parameters – price points, types of residental properties, desirable locations and neighborhoods to buy…

    * Farm the neighborhoods – use the mls to identify REO properties located in these neighborhood; visit the properties (with contractor) and identify potential opportunities

    * Run the numbers to identify deal from the potential opportunities

    * Establish relationship with REO brokers and make offers on the deals

    * Establish credibility… As a recent victim of corporate downsizing I now have access to my 401k. I am considering converting my 401k into a self directed IRA and use it to do my first deal in order to claim a success story to present to pontential partners/ private money sources.

  • joan west

    I’m first time flipper. This is my Contest Flip entry. Have a deal where I went to Georgia during the holidays. I put an option on 21/2 + acre property with the seller and their bank, and in two days found a buyer. After listening to your audio Bob are you still doing private money? and can I borrow private money from you pay the seller and silmultaneous at the same table sell that property to my buyer. Paying you back your borrowed money plus interest and walk away with a great first deal and a smile. Remember this is a 1st and I don’t have a list of private money or bank that will meet my time table Jan. 26, 09. I need to join.

  • http://no joan west

    I’m first time flipper. This is my Contest Flip entry. Have a deal where I went to Georgia during the holidays. I put an option on 21/2 + acre property with the seller and their bank, and in two days found a buyer. After listening to your audio Bob are you still doing private money? and can I borrow private money from you pay the seller and silmultaneous at the same table sell that property to my buyer. Paying you back your borrowed money plus interest and walk away with a great first deal and a smile. Remember this is a 1st and I don’t have a list of private money or bank that will meet my time table Jan. 26, 09. I need to join.

  • Lear Kruse

    Jp and Bob,

    *Search my area of town that has clean foreclosure and/or retail price points that are able to cash flow and also has a lot of investor activity.

    *Must talk to reo Realtors, pay them for their time if need be, to show me all the reo properties in that good price pointed area. Don’t necessarily make any promises to buy, but say I need to do my due diligence and look at the properties.

    *Spend a couple of days to look at the properties. Get the lock box codes and (as Bob mentioned in another video) call lots of contractors and get real estimates of repairs on one of the properties. Like Bob says, short bursts of energy go a long way.

    *Find which properties need little work to get them into the clean foreclosure market. Fix the “scary” repairs, i.e. mold, plumbing, electric work.

    *Fix up those things and use the same Realtor that gave us the listings to sell so they can get both sides of the commission and make sure they show my property first. Associate us with the “easy button” like Bob said in an earlier video.

    *Repeat and send you guys a thank you video on the new flip cam!!! :)

    (Quick aside-Thank you for everything you do on the site. We all know you could be doing other things and making more money. Your posts on here, the forum, and youtube and others are greatly appreciated! Thank you Jp and Bob!!!)

  • Lear Kruse

    Jp and Bob,

    *Search my area of town that has clean foreclosure and/or retail price points that are able to cash flow and also has a lot of investor activity.

    *Must talk to reo Realtors, pay them for their time if need be, to show me all the reo properties in that good price pointed area. Don’t necessarily make any promises to buy, but say I need to do my due diligence and look at the properties.

    *Spend a couple of days to look at the properties. Get the lock box codes and (as Bob mentioned in another video) call lots of contractors and get real estimates of repairs on one of the properties. Like Bob says, short bursts of energy go a long way.

    *Find which properties need little work to get them into the clean foreclosure market. Fix the “scary” repairs, i.e. mold, plumbing, electric work.

    *Fix up those things and use the same Realtor that gave us the listings to sell so they can get both sides of the commission and make sure they show my property first. Associate us with the “easy button” like Bob said in an earlier video.

    *Repeat and send you guys a thank you video on the new flip cam!!! :)

    (Quick aside-Thank you for everything you do on the site. We all know you could be doing other things and making more money. Your posts on here, the forum, and youtube and others are greatly appreciated! Thank you Jp and Bob!!!)

  • Don Corson

    J.P./Bob -
    Great content on this call. I can attest that the Clean REO market is the hottest right now, at least in my market in Central Ohio. I was speaking with my brother-in-law, who has been a Realtor since 2001, and has had quite a few REO listings in the last year, and he wholeheartedly agrees. He had a recent listing that went up about a week before Christmas. Great house, extremely desirable neighborhood. He had a handful of showings within 5 minutes of it being listed on the MLS. Within a few days, 40+ showings, 5 offers (the bank ended up taking the lower, cash offer.
    Here were the #s on that one: Market value in 2006: ~$325k; Listed last month: $179.9k; Bank accepted $185k cash; needs about $25k in work (bank is paying $5k for mold remediation).
    Most of the potential buyers were owner occupant buyers. There ARE many qualified buyers out there looking to move up and snatch the low-hanging “equity” fruit that exists in this market.
    I had already been planning on re-activating my Real Estate license this year (had it since ’03). We are in the final stages of forming our team. We were discussing the opportunities that exist in the Clean REO market for us. Unfortunately, one of the top REO agents also works in his office, so a conflict would exist there. But there are plenty of other REO agents at other brokers in town. We will try to meet with as many of the “heavy-hitters” as possible. Having an actual REO agent on my team should open more doors than if I were just a newbie on my own.
    I will be setting up a notification form on our MLS system to get notified of any new bank-owned listings or price changes that hit the system.
    I will also be setting up our team web site, with “lead capture” in place, to gather names for our buyers list (these buyers could be clients for our Realtor services, or actual buyers for the WholeTail houses that we will be acquiring).
    I am also planning on utilizing the best WEB 2.0 technologies in developing our web site, in order to capture the most potential clients/buyers for our list. Maybe even use Twitter! “Don is stepping in a petrified pile of dog poo in a smelly REO…”

    Thanks for the great content, guys — keep up the great work on REITips, J.P.

  • Don Corson

    J.P./Bob -
    Great content on this call. I can attest that the Clean REO market is the hottest right now, at least in my market in Central Ohio. I was speaking with my brother-in-law, who has been a Realtor since 2001, and has had quite a few REO listings in the last year, and he wholeheartedly agrees. He had a recent listing that went up about a week before Christmas. Great house, extremely desirable neighborhood. He had a handful of showings within 5 minutes of it being listed on the MLS. Within a few days, 40+ showings, 5 offers (the bank ended up taking the lower, cash offer.
    Here were the #s on that one: Market value in 2006: ~$325k; Listed last month: $179.9k; Bank accepted $185k cash; needs about $25k in work (bank is paying $5k for mold remediation).
    Most of the potential buyers were owner occupant buyers. There ARE many qualified buyers out there looking to move up and snatch the low-hanging “equity” fruit that exists in this market.
    I had already been planning on re-activating my Real Estate license this year (had it since ’03). We are in the final stages of forming our team. We were discussing the opportunities that exist in the Clean REO market for us. Unfortunately, one of the top REO agents also works in his office, so a conflict would exist there. But there are plenty of other REO agents at other brokers in town. We will try to meet with as many of the “heavy-hitters” as possible. Having an actual REO agent on my team should open more doors than if I were just a newbie on my own.
    I will be setting up a notification form on our MLS system to get notified of any new bank-owned listings or price changes that hit the system.
    I will also be setting up our team web site, with “lead capture” in place, to gather names for our buyers list (these buyers could be clients for our Realtor services, or actual buyers for the WholeTail houses that we will be acquiring).
    I am also planning on utilizing the best WEB 2.0 technologies in developing our web site, in order to capture the most potential clients/buyers for our list. Maybe even use Twitter! “Don is stepping in a petrified pile of dog poo in a smelly REO…”

    Thanks for the great content, guys — keep up the great work on REITips, J.P.

  • Craig(MI)

    The information you put out is the most complete I have found and seems to be common sense but Bob Norton unselfishly fits it all together for anyone to use. Great work and thanks. I’m very excited to get started as veryone knows we have tons of REO’s in Michigan.

  • Craig(MI)

    The information you put out is the most complete I have found and seems to be common sense but Bob Norton unselfishly fits it all together for anyone to use. Great work and thanks. I’m very excited to get started as veryone knows we have tons of REO’s in Michigan.

  • Jerry Parks

    Hello JP and Bob,

    This is Jerry here in Orlando. I listened to the audios and was really inspired to take action. So at the end of year I contacted several REO Realtors. I found one that understands what I want to accomplish. We are working in a 7 mile radius and good desireable neighborhoods close to where I live. Nice REO houses in nice neighborhood that I can buy at 60% – 65% LTV with little to no rehab. I also contacted a couple Mortgage brokers that specialize in the FHA loans and also quick closings for good credit conventional buyers. I will provide Downpayment Assistance for them to get in for No Money down and then I can close quickly and avoid the 90 day seasonng issue with FHA. I may do the Lease options plan on a few of the houses like Bob does, but in the beginning I need the Cash flow. I also have contacted 2 private money transactinal funders to buy the properties all cash so I can flip them at closing to a Retail Buyer and Not use my own money.
    Well the REO Realtor found me a great 3/2 SFR for 130K that was bought in 2005 for 249K and now is worth approx. 200K. I put an offer contract on it for 129,900 all cash, with a POF letter I got from the transactional funding source. I’m adversing a blind add for End user buyers and starting to build a buyers list. Once I get my offer accepted, then the realtor will list it on MLS with my Seller DPA incentives feature to get buyers quickly. I will do a double closing and buy the property in the morning and sell it as is to my retail buyer in the afternoon and put approx. 30K in profits in my pocket. Thank you JP and Bob for the ideas to do this type of investing. I currently work as a wholesaler of New Builder closeout properties and sell to Investors at a 40% discounts with Seller Inventives ($$$). But I am expanding my “Niche” using Bob’s “WholeTaing” Stratgy. I plan to do 1 House per month and then work into buying and selling 2 or more per month. I am hiring 2 1099 Assistants next week to streamline the process and do the paperwork and property value analysis for me so I can spend my time working witht the REO Realtors to find better deals.

    Thanks again, Have a great year.
    “Fortune Favors the Bold”
    “Making Money Is A Team Sport”
    Jerry, Orlando FL

  • Jerry Parks

    Hello JP and Bob,

    This is Jerry here in Orlando. I listened to the audios and was really inspired to take action. So at the end of year I contacted several REO Realtors. I found one that understands what I want to accomplish. We are working in a 7 mile radius and good desireable neighborhoods close to where I live. Nice REO houses in nice neighborhood that I can buy at 60% – 65% LTV with little to no rehab. I also contacted a couple Mortgage brokers that specialize in the FHA loans and also quick closings for good credit conventional buyers. I will provide Downpayment Assistance for them to get in for No Money down and then I can close quickly and avoid the 90 day seasonng issue with FHA. I may do the Lease options plan on a few of the houses like Bob does, but in the beginning I need the Cash flow. I also have contacted 2 private money transactinal funders to buy the properties all cash so I can flip them at closing to a Retail Buyer and Not use my own money.
    Well the REO Realtor found me a great 3/2 SFR for 130K that was bought in 2005 for 249K and now is worth approx. 200K. I put an offer contract on it for 129,900 all cash, with a POF letter I got from the transactional funding source. I’m adversing a blind add for End user buyers and starting to build a buyers list. Once I get my offer accepted, then the realtor will list it on MLS with my Seller DPA incentives feature to get buyers quickly. I will do a double closing and buy the property in the morning and sell it as is to my retail buyer in the afternoon and put approx. 30K in profits in my pocket. Thank you JP and Bob for the ideas to do this type of investing. I currently work as a wholesaler of New Builder closeout properties and sell to Investors at a 40% discounts with Seller Inventives ($$$). But I am expanding my “Niche” using Bob’s “WholeTaing” Stratgy. I plan to do 1 House per month and then work into buying and selling 2 or more per month. I am hiring 2 1099 Assistants next week to streamline the process and do the paperwork and property value analysis for me so I can spend my time working witht the REO Realtors to find better deals.

    Thanks again, Have a great year.
    “Fortune Favors the Bold”
    “Making Money Is A Team Sport”
    Jerry, Orlando FL

  • Becky

    * Get understanding of lease options in case need to deal with FHA buyer and access to contracts.

    * Master Bob’s system and formula. Identify area where
    – buyers are looking with 3-4 bed, 2 bath homes.
    – Clean REO’s available
    – Homes need some work, not just carpet & paint. (Mold)
    – Offer equity – only do enough work to not scare homeowner then pass on equity to homeowner willing to do some work. 10-20% off retail is good.

    * If I focus on a higher end market – look into short sales.
    *Learn the basics of making offers to banks. Only counter if I already have a buyer.

    *Find a partner or private lender with money. Sit down and tell them numbers and my strategy. Find out if they are interested.

    * Learn the Established ARV in the area I identify.

    * Find a more investor friendly broker for husband to have license with.

    * Look at MLS every night and go visit every house I am interested in until I get a solid understanding of values.

    * Establish focus and clarity of purpose.

  • Becky

    * Get understanding of lease options in case need to deal with FHA buyer and access to contracts.

    * Master Bob’s system and formula. Identify area where
    – buyers are looking with 3-4 bed, 2 bath homes.
    – Clean REO’s available
    – Homes need some work, not just carpet & paint. (Mold)
    – Offer equity – only do enough work to not scare homeowner then pass on equity to homeowner willing to do some work. 10-20% off retail is good.

    * If I focus on a higher end market – look into short sales.
    *Learn the basics of making offers to banks. Only counter if I already have a buyer.

    *Find a partner or private lender with money. Sit down and tell them numbers and my strategy. Find out if they are interested.

    * Learn the Established ARV in the area I identify.

    * Find a more investor friendly broker for husband to have license with.

    * Look at MLS every night and go visit every house I am interested in until I get a solid understanding of values.

    * Establish focus and clarity of purpose.

  • Mike Cellini

    Damn!! Mr. Norton does it again for me.
    I have been using “The Formula” and 99 of 100 times everyone (banker, Realtor) are saying, “What the heck?!” to my offers – .
    Thanks Mr. JP and Mr. Norton

  • Mike Cellini

    Damn!! Mr. Norton does it again for me.
    I have been using “The Formula” and 99 of 100 times everyone (banker, Realtor) are saying, “What the heck?!” to my offers – .
    Thanks Mr. JP and Mr. Norton

  • Mike Cellini

    Money! (Pink Floyd playing in the back ground)

    -Private Money Lenders
    -Hard Money Lenders
    -Norton Money Lenders

    Find in the great deals and the money will come

  • Mike Cellini

    Money! (Pink Floyd playing in the back ground)

    -Private Money Lenders
    -Hard Money Lenders
    -Norton Money Lenders

    Find in the great deals and the money will come

  • Jean

    I would like to be your REI wife

  • Jean

    I would like to be your REI wife

  • CWS

    Bob and JP,

    Thanks for all this valuable information. Here are some action steps I put together based on the call.

    • Make 6-figures a month :)
    • Win a Flip cam :)

    • Take BOLD action
    • Don’t see the problem, see the opportunity
    • Adapt to the changing market
    o buyers needs and wants will changes
    o variables will change
    • Focus ONLY on finding good deals, find others who are good at the other aspects of the process to be on your team
    • Get access to MLS (80% of deals are on MLS)
    o Get licensed and hang it under a broker
    ? Stay away from REO guys and others with a lot of requirements
    ? Be upfront with what you want
    o Find a realtor to help you search (don’t be afraid to pay some $)
    o Become a realtors assistant
    o Get MLS access in exchange for benefit to Realtor
    • Figure where the market is at
    o What price range are buyers buying in
    o What type of home do buyers want
    o Where are the flipping hot beads
    • Look at houses
    o Make estimates on the houses and watch the end result if I don’t buy
    • Follow formula
    o Optimum formula uses 60% of CREOARV – repairs, where ARV is clean REO value, not value of full retail solds
    o Situations may allow for alteration of formula, don’t worry about formula if you have a buyer
    o Watch what houses on the market sell for and adjust formula accordingly
    • Make offers
    o Bob targets mold houses as owner occupants don’t like them, thus decreasing his competition
    o Hard to follow 60% houses when only paint and carpet
    • Get deals under contract that make sense
    • If deal doesn’t make sense, use counters to know where the bank is willing to sell and shop the deal verbally.
    • Use options or shortsales to minimize risk for higher end homes or homes that don’t meet the formula but may still provide profit on the A-B / B-C spread
    • Be a marketing cheapskate
    o Cultivate relationships with REO realtors so they associate me with easy $
    ? Make them your birddogs by letting them know what type of deals I’m looking for
    ? Let listing agent double dip
    o Be friends with the deal makers
    • Sell the houses
    o Determine whether the house should be a wholesale, wholetail (aka CREO) or retail
    ? Dollar value doesn’t determine complexity of a rehab
    o Make sure it’s a deal for the buyer, owner occupants want a deal with equity (what matters is their perspective, not necessarily reality). Leave something to negotiate (e.g., furnace, upgrade, etc.)
    o Search MLS for realtors that sell houses in the area you have a house
    o Look for trends and area experts
    o If I find an area expert, have them list the house so they get both sides of the commission, increasing motivation
    ? Ask them what to do with the house regarding rehab
    ? Have them manage the rehab if they have experience
    o FHA sales
    ? Search MLS for realtors that have sold a lot of houses using FHA financing, determine if they have a system. Typically 30-40+ sales
    ? Bring these realtors on board your team along with the lender they use to secure the buyers FHA loans
    ? If an FHA buyer is best option, consider a short term lease option with 3% nonrefundable option fee. Make sure buyers don’t ruin credit in interim
    ? Realize if an FHA offer is obtained very quickly, will probably receive a conventional offer soon as well as this means house is priced well
    • Funding
    o Partner
    ? Idea guy and $ guy
    o Private lenders
    ? Family and friends
    ? Search MLS and public records for sources
    ? Tell others you flip houses, if they show interest tell them more and ask if they would be interested in funding
    • Be credible in communications
    o Don’t say, I’m a newbie, would you like to buy houses, have a house that you know they will want based on your research
    o Don’t be overconfident either
    • Be like WalMart, find a deal and pass it on
    • Check out http://www.bobnorton.com
    • Watch for upcoming training JP and Bob are putting together
    • Listen Bob’s Saturday workshop again

  • CWS

    Bob and JP,

    Thanks for all this valuable information. Here are some action steps I put together based on the call.

    • Make 6-figures a month :)
    • Win a Flip cam :)

    • Take BOLD action
    • Don’t see the problem, see the opportunity
    • Adapt to the changing market
    o buyers needs and wants will changes
    o variables will change
    • Focus ONLY on finding good deals, find others who are good at the other aspects of the process to be on your team
    • Get access to MLS (80% of deals are on MLS)
    o Get licensed and hang it under a broker
    ? Stay away from REO guys and others with a lot of requirements
    ? Be upfront with what you want
    o Find a realtor to help you search (don’t be afraid to pay some $)
    o Become a realtors assistant
    o Get MLS access in exchange for benefit to Realtor
    • Figure where the market is at
    o What price range are buyers buying in
    o What type of home do buyers want
    o Where are the flipping hot beads
    • Look at houses
    o Make estimates on the houses and watch the end result if I don’t buy
    • Follow formula
    o Optimum formula uses 60% of CREOARV – repairs, where ARV is clean REO value, not value of full retail solds
    o Situations may allow for alteration of formula, don’t worry about formula if you have a buyer
    o Watch what houses on the market sell for and adjust formula accordingly
    • Make offers
    o Bob targets mold houses as owner occupants don’t like them, thus decreasing his competition
    o Hard to follow 60% houses when only paint and carpet
    • Get deals under contract that make sense
    • If deal doesn’t make sense, use counters to know where the bank is willing to sell and shop the deal verbally.
    • Use options or shortsales to minimize risk for higher end homes or homes that don’t meet the formula but may still provide profit on the A-B / B-C spread
    • Be a marketing cheapskate
    o Cultivate relationships with REO realtors so they associate me with easy $
    ? Make them your birddogs by letting them know what type of deals I’m looking for
    ? Let listing agent double dip
    o Be friends with the deal makers
    • Sell the houses
    o Determine whether the house should be a wholesale, wholetail (aka CREO) or retail
    ? Dollar value doesn’t determine complexity of a rehab
    o Make sure it’s a deal for the buyer, owner occupants want a deal with equity (what matters is their perspective, not necessarily reality). Leave something to negotiate (e.g., furnace, upgrade, etc.)
    o Search MLS for realtors that sell houses in the area you have a house
    o Look for trends and area experts
    o If I find an area expert, have them list the house so they get both sides of the commission, increasing motivation
    ? Ask them what to do with the house regarding rehab
    ? Have them manage the rehab if they have experience
    o FHA sales
    ? Search MLS for realtors that have sold a lot of houses using FHA financing, determine if they have a system. Typically 30-40+ sales
    ? Bring these realtors on board your team along with the lender they use to secure the buyers FHA loans
    ? If an FHA buyer is best option, consider a short term lease option with 3% nonrefundable option fee. Make sure buyers don’t ruin credit in interim
    ? Realize if an FHA offer is obtained very quickly, will probably receive a conventional offer soon as well as this means house is priced well
    • Funding
    o Partner
    ? Idea guy and $ guy
    o Private lenders
    ? Family and friends
    ? Search MLS and public records for sources
    ? Tell others you flip houses, if they show interest tell them more and ask if they would be interested in funding
    • Be credible in communications
    o Don’t say, I’m a newbie, would you like to buy houses, have a house that you know they will want based on your research
    o Don’t be overconfident either
    • Be like WalMart, find a deal and pass it on
    • Check out http://www.bobnorton.com
    • Watch for upcoming training JP and Bob are putting together
    • Listen Bob’s Saturday workshop again

  • Lisa Reissmann

    What I learned listening to Bob…
    1.Even in the worst markets, there is opportunity, change your limiting mindset to know the market or find someone who does.
    2.Utilize the experience of a realtor who has found a system within that market. This can be done by looking on the MLS to see who has sold the most properties in the last few months, and see how they were funded. The realtor has resources to not only buyers, but the best mortgage brokers, contractors, and can give you advice on how to rehab for that market, and even manage your rehab for you!
    3. When making an offer on a reo, consider paying listing price with a cash offer to win the acceptance.
    4. Become a “whole-tailer”, opening yourself up to a conventional or FHA end buyer versus flipping to another investor. You can use a 3-month option with a non-refundable earnest money contract; during the time the house is seasoning for FHA guidelines, the soon to be buyer is renting from you.
    5. Understand the changes in FHA lending, how the lending guidelines have lessened, and how confidently the deal will close with a FHA approval. The government is pumping money into these programs. With the change in lending guidelines many more buyers with poor credit and little money down will be coming into the market.
    6. Pay attention to margins. Focus in on more middle market areas with homes that need some repair too significant for a homeowner to do themselves, and fix the problem. Watch your margin before doing a full top-notch rehab, your margin could be the same with less work.
    7. With a decline in property values, and low interest rates, some current homwowners confident with their jobs are looking to upgrade to more home for their money.
    Thanks for you insight. Best wishes for 2009.

  • Lisa Reissmann

    What I learned listening to Bob…
    1.Even in the worst markets, there is opportunity, change your limiting mindset to know the market or find someone who does.
    2.Utilize the experience of a realtor who has found a system within that market. This can be done by looking on the MLS to see who has sold the most properties in the last few months, and see how they were funded. The realtor has resources to not only buyers, but the best mortgage brokers, contractors, and can give you advice on how to rehab for that market, and even manage your rehab for you!
    3. When making an offer on a reo, consider paying listing price with a cash offer to win the acceptance.
    4. Become a “whole-tailer”, opening yourself up to a conventional or FHA end buyer versus flipping to another investor. You can use a 3-month option with a non-refundable earnest money contract; during the time the house is seasoning for FHA guidelines, the soon to be buyer is renting from you.
    5. Understand the changes in FHA lending, how the lending guidelines have lessened, and how confidently the deal will close with a FHA approval. The government is pumping money into these programs. With the change in lending guidelines many more buyers with poor credit and little money down will be coming into the market.
    6. Pay attention to margins. Focus in on more middle market areas with homes that need some repair too significant for a homeowner to do themselves, and fix the problem. Watch your margin before doing a full top-notch rehab, your margin could be the same with less work.
    7. With a decline in property values, and low interest rates, some current homwowners confident with their jobs are looking to upgrade to more home for their money.
    Thanks for you insight. Best wishes for 2009.

  • Brooks Conkle

    I got so much out of this stuff!! I listened to the 2nd set again this morning. I left the first comment — up there : )

    This is EXACTLY the rest that I plan to do:
    -getting Really good at finding Great deals.
    -tell everyone that I flip houses (HGTV lovers)
    -find the right mortgage broker for my team.
    -perfect wholesaling to the retail buyer
    -answer the survey to help JP/Bob decide what to teach at the seminar
    -if the bank counters my offer, they are most likely trying to meet me halfway
    -I will let the team bring me the deals rather than spending a ton on marketing
    -I will use the video cam I win to close my first big deal and then buy the newest investor the same camera!
    -I will find more money people to do more deals. I found my first one 2 days ago! (see my first post)
    -Yes, Bob is still in business (hard money) so send him your deals.

    Thanks a 2nd time guy! Hope to post a YouTube video soon

  • Brooks Conkle

    I got so much out of this stuff!! I listened to the 2nd set again this morning. I left the first comment — up there : )

    This is EXACTLY the rest that I plan to do:
    -getting Really good at finding Great deals.
    -tell everyone that I flip houses (HGTV lovers)
    -find the right mortgage broker for my team.
    -perfect wholesaling to the retail buyer
    -answer the survey to help JP/Bob decide what to teach at the seminar
    -if the bank counters my offer, they are most likely trying to meet me halfway
    -I will let the team bring me the deals rather than spending a ton on marketing
    -I will use the video cam I win to close my first big deal and then buy the newest investor the same camera!
    -I will find more money people to do more deals. I found my first one 2 days ago! (see my first post)
    -Yes, Bob is still in business (hard money) so send him your deals.

    Thanks a 2nd time guy! Hope to post a YouTube video soon

  • http://www.reitips.com/ JP Moses

    Ok, so here’s a video from Bob with the contest results.

    And the responses were so good, that in addition to the singular winner of the Flip Mino video camera, we decided to reward EVERYONE who left ANY response above by the deadline with a one-time-only private session w/Bob.

    Watch this video from Bob for details…

    httpv://www.youtube.com/watch?v=p823DEDEWWk

  • http://www.reitips.com JP Moses

    Ok, so here’s a video from Bob with the contest results.

    And the responses were so good, that in addition to the singular winner of the Flip Mino video camera, we decided to reward EVERYONE who left ANY response above by the deadline with a one-time-only private session w/Bob.

    Watch this video from Bob for details…

    httpv://www.youtube.com/watch?v=p823DEDEWWk

  • Mike Cellini

    Hey guys, this was great fun. I appreciated the honorable mention in Mr. Norton video (1/19/09).

    What I liked the most of this contest is the exchange of ideas and Mr. Norton’s comment why he thought Brooks won the contest, Brooks took action. A good teacher always reviews the exam questions and give an explanation or reason for the ‘correct’ answer.

    Thank you Mr. JP for making this happen.

    Blessings.

    Michael Cellini (MN)

  • Mike Cellini

    Hey guys, this was great fun. I appreciated the honorable mention in Mr. Norton video (1/19/09).

    What I liked the most of this contest is the exchange of ideas and Mr. Norton’s comment why he thought Brooks won the contest, Brooks took action. A good teacher always reviews the exam questions and give an explanation or reason for the ‘correct’ answer.

    Thank you Mr. JP for making this happen.

    Blessings.

    Michael Cellini (MN)

  • http://www.moldremoval.com/ mold removal

    Thanks

  • http://www.moldremoval.org mold removal

    this was great fun. I got so much out of this stuff!! Thanks for all this valuable information.