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)

Watch this video from Bob for details…

www.youtube.com/watch?v=p823DEDEWWk

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

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

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

Find in the great deals and the money will come

* 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.