Editor’s Note: This is a follow-up to the recently posted article How to Cash In On Bulk REO Packages – a guest post by Kenny Rushing.  And based on the lively comments in response, this is clearly a topic of great interest to many.  So let’s continue the discussion, shall we?…

I mentioned recently I’d be interviewing Bulk REO guy Kenny Rushing to better understand how he pulls down his profitable REO package deals right now, how he deals with the “joker brokers” notorious in the business, where the real opportunity lies today, and how an average Joe/Jane might get started in the same.

I’m happy to say it was a great interview.  Fueled by the a stellar questions you guys asked, we chatted for basically an entire hour together.  It was totally unrehearsed and unscripted – just me, grilling Kenny about his story, and (mostly) about how exactly his business works right now.

Listen to / Download the Whole Interview Here…

I’ve broken down our 1-hour chat into four chunks to make it easier for you.  Just click the “play” buttons below…

Bulk REOs in 2010, Part 1 (15:19)
Download audio file (08-10_kenny_rushing_1.mp3)

Bulk REOs in 2010, Part 2 (14:54)
Download audio file (08-10_kenny_rushing_2.mp3)

Bulk REOs in 2010, Part 3 (17:27)
Download audio file (08-10_kenny_rushing_3.mp3)

Bulk REOs in 2010, Part 4 (14:59)
Download audio file (08-10_kenny_rushing_4.mp3)

Kenny the Phoenix…

The fact is, Kenny was once one of the biggest wholesalers in the country. But when the housing market crashed, his entire business and life came crashing down and almost went completely underwater.  But this is a guy who knows how to use those bootstraps. And in no time flat, he turned his “disaster” around and rose from the ashes right back to the top — this time in the Bulk REO arena.

Now he’s actually making more money than ever before, his business profits are shooting through the roof and he’s spending more quality time with his family.  Thought provoking and inspirational to say the least. And yes, you’ll learn a number handy tips on the wrong/right ways to do Bulk REO deals today too.

If this topic interests you, then here’s a webcast on buying and flipping REOs that you might also find interesting…

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Needless to say, I was impressed.  I’ll be honest, I’ve done a lot of wholesale deals in my 10+ years at this — but never that many from an out-of-state family vacation.

Yep, Alex is basically a poster boy for the Chico’s  “Virtual Wholesaling” business model, truly…

• He’s actively involved in multiple markets – one at home and another far away from home…
• He’s got the right systems and processes in place – a combo of technology and remote virtual assistants…
• And because of these he’s able to do quite nicely flipping deals literally part time from the beach, armed with barely more than a laptop and a cell phone.

I asked how much he expects to make from just these five deals.  His answer: “Somewhere north of around $75,000 in flip fees I think…” (Not a bad half month, eh?)

I know, I know. It does sound a little too cliche’, doesn’t it?  But the fact is, I know Alex and this is the reality he has crafted for himself.  It’s also, by the way, akin to the reality of my good friend Bob Norton, whom you all probably know pretty well by now.

Interview With a Vampire Virtual Wholesaler…

So I couldn’t resist. I thought you guys might enjoy hearing a little more from Alex about how he’s able to do all this.  So I called him up and recorded about 17 minutes worth of us chatting about it.

Enjoy my insightful 17 min chat with Alex about it all…

Download audio file (joungblood_case_study_with_intro_outro.mp3)

Download MP3…

Among My Many Probing Questions:

• “From our “17 Sneaky Wholesaling Tricks” we did a few weeks ago, how many of the “sneaky tricks” did you actually end up using on these deals?” (Hint: more than 1)

• “At what point in this deal did you eventually end up talking to the seller personally?”

• “Before contacting your potential buyer with this deal, how much of your personal time did you actually have into this?”

• “Specifically what tools, resources and/or systems are enabling you to run your business so you can flip 5 deals and make $75k+, while literally on family vacation with little more than a cell phone and laptop?

• “What exactly do you pay your full-time V.A. to do all this for you?”

• And lots of other good stuff…

Side Note Re: “17 Sneaky Wholesaling Tricks”…

If you missed our “17 Sneaky Tricks” session (I’ve gotten a few emails), you should know that we’ve made it available again briefly (72 hours).  So if you’re iinterested, check here to see if it’s still available…

This was a really great little session (actually is was nearly 4 hours long, so not so little I suppose) that everyone seemed to really enjoy and get a lot out of.  So if you’re a wholesaler, be sure to check it out before it’s gone-gone.

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The Course – 5 modules that Jack Bosch put together on Flipping Land for Real Estate Investors.

The Concept – Find people who don’t want their land anymore buy it for $100 to $2000 (he personally found thousands of them and bought and sold over 5,531 properties in 7 years) and then Flip it and sell it at Market value (or wholesale) within days.

Always eager to help in the earnest pursuit of quality REI continuing education, I emailed Jack personally about it.  And since I get a lot out of short little case studies, I asked for a real world student of his I could interview privately.  I also told him he’s not allowed to be there or prep him/her in advance, because I wanted frank answers and didn’t intend to pull any punches.

Jack’s response…

So here you go!  You can read all the questions I grilled her with below.  Anyone currently sizing up Jack’s offering will be glad you invested a few short minutes eavesdropping in on my little chat with Reneé…

Investor Profile: Reneé Riker, Southern CA

Download audio file (student_interview_final.mp3)

• Occupation: Full time in Regulatory Compliance, and part time as a Real Estate Investor based in Greater L.A. area
• Experience: Focused on out of state rentals for 5 years, then got tired of tenants, toilets and termites and discovered land flipping.
• Reneé: “For me it’s always been about the cash flow as I want that passive income like everyone else!”
• Recent Deal: Paid $27k for 6 parcels (53 acres) in the desert, then quickly sold first 2 of 6 lots for $60k by themselves.
• Familiar Story: Has purchased “many costly real estate training courses” in the past, only to discover what she DIDN’T want to do.
• On Jack: Has first hand experience in using Jack’s land profit formula system and says it, “opened a whole new world to the meaning of real estate investing” for her.

Questions Asked and Candidly Answered:

• “Can you describe the land flipping model as you’ve applied it yourself?”
• “For vacant land, the due diligence process seems more intimidating to me than for houses…what’s the process been like for you personally?”
• “How about a bird’s eye view of your first land flip deal?”
• “Do you prefer selling your land deals for all cash vs. cash flow?”
• “Being completely honest, what do you feel are the strengths and weaknesses of Jack’s land flipping training?  What sets it apart from the rest, and how could it be improved?”
• “Was there anything missing from the training material that you honestly wish had been included?”
• “Who is this model / material is ideally suited for?”
• “With a basic knowledge of real estate in place, what learning curve might someone expect with Jack’s material?”
• “What personal advice would you have for anyone who’s trying to size this model and Jack’s material up for themselves right now?”

Find Out More About Jack’s Land Profits System
from HowToFlipLand.com…

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Dang it!

Her name was Neechele, and she was a rare gem indeed.  Paid her rent early every month, took great care of the house, and even fixed stuff…on her own from time to time.

Seems low interest rates were just a little too enticing and she bought a house and moved on up to the big time.  Great for her…..but “Ouch!” for me.

So I started screening new applicants, but suddenly found the local company I’ve always used for tenant screening went out of business.  So I called up a buddy for a referral and was introduced to ScreeningWorks.com

You Had Me At Hello…

Folks, I’m head over heels here……Ok, maybe a small over statement.  But in my humble opinion, this is EXACTLY what tenant screening should always have been like…

• Easy as pie online interface
• Tenant reports a 2nd grader can understand
• Fairly priced

These guys can get you a background check, credit check and eviction check in less than a minute, in a single, easy to read report….

For me (in TN) cost for the whole shebang out the door was a very reasonable $29.95, but for some states it’s actually less.

I love these guys so much, I called up their VP and requested a short interview just for you guys.  Here it is…

LISTEN HERE Download audio file (08-09_screeningworks_with_music.mp3)

The next day “Andy the VP” emailed me this little in-house video they made…

httpv://www.youtube.com/watch?v=ZelsOtcu1Qw

So Here’s the Bottom Line…

ScreeningWorks is a dream come true for landlords and property managers. They make tenant screening so ridiculously simple, it’s almost fun.

Highly recommended.  If you rent property, bookmark ‘em.  Use ‘em.  And pay it forward to your fellow landlords.

PS…In case you’re wondering, no, I’m not getting paid anything to post this raving review. Not that it would be a bad thing… …but I’m just a happy, new customer and you’re my peeps. Pay it forward!

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This time it’s the systematic interrogation of a couple of guys who are currently extracting big profits out of one of the nation’s worst markets.

Meet Erik “MLS Sniper” Stark and Steve “REO Shotgun” Mills

This was a big, meaty interview, well worth hearing.

And just so you know, there’s nothing for sale inside.  It’s an actual case study of how these two guys are tearing it up and bringing in 6-figure profits wholesaling in today’s arena.

Erik and Steve, Part 1…
Download audio file (04-09_erik_and_steve_pt1.mp3)
Download MP3…

Erik and Steve, Part 2…
Download audio file (04-09_erik_and_steve_pt2.mp3)
Download MP3…

One interesting point is that both of these guys are KISS Flipping members.

Also, in case it’s helpful, I’ve pasted my own notes from our conversation below. Glance through ‘em real quick and you’ll get a pretty good snapshot of what’s inside the interview.

Cliff’s Notes by JP:

Brief history of two “Average Joes”:

• Started as bad Realtors
• Been in the game for 3 yrs
• Teamed up as partners a year ago-ish
• First deal as partners: March ’08 (MLS find)
• First REI eduction: “Wholesaling for Quick Cash”

Currently:

• Buys and sells 7-10 deals a month on average
• Average profit range: $6k – $15k per deal
• ($40k-$100k/mo?)

Tactical:

• Make a point to PAY WELL for referrals, and get called first as a result

“As wholesalers, who are most of your buyers today?”

• Landlords
• Bargain hunting retail buyers (Wholetale)

Market Snapshot:

• Average house price for 3br/2ba 1,200sf 2car: $120k – $150k, but recently dropped to $70-$80k; retail $90k
• Rental market (lower end) houses can commonly be picked up for $5k to $15k right now.

VERY INTERESTING:

• Uncovered a unique niche recently selling to the parents of fist time homebuyers, who turn around and owner-finance it back to challenged end-buyer.

“How are you effectively selling your wholesaling services to area landlords?”

• Saving them time
• Saving them effort
• Finding better deals

2 Awesome Tips:

• The exceeding value of branding themselves locally as, “The guys who can close in 48 hours”
• The impressive impact seeing this as a “relationship business” has had on thier bottom line.

“What are your best working deal finding strategies today?”

• REOs (special broker relationships built as “the guys who can close”)
• “Mining MLS Loopholes” (I never thought of this before!)

“What’s your business overhead like?”

• Remodeling costs
• Paying bird dogs well
• Commissions
• Salary (to themselves)

“How’s your partnership structured?”

• 50/50
• Erik focuses a lot on marketing, closings, back office stuff
• Steve finds the money, negotiates deals, the “people” stuff

Noteworthy!

• “The Velocity of Money”: The value of putting it back to work as soon as it comes in.
• The Kiss of Death: Partnering with someone who’s too much like you
• Partnership Strength: Complimentary skillsets and genuine accountability

“What educational resources have had the greatest value to your business?”

• A local mentor (name not mentioned)
• Bob Norton
• Steve Cook
• Preston Ely
• Than Merrill
• Chris Daigle
• Cris Chico

Note: Only took from each guru what they felt they could apply to their current model.  (i.e. never lost focus on their primary plan, but rather pulled from these guys to amplify and improve their plan)

“What advice do you have for others who want to follow a similar path?”

• Connect with local top dogs
• Get your first deal under your belt and LEARN from it

6 Profit Killing Mistakes Others Typically Make:

1. Writing too much on your bandit signs
2. Not ensuring others are well paid
3. Trying to be a “lone wolf” and do everything yourself
4. Disregarding “gatekeepers” or treating them poorly
5. Don’t sweat the small fees/costs on a deal (pride themselves on taking a beating)
6. Not having an ongoing hunger for knowledge

“How did you go from only 1 to 4 private lenders in an 8 month period?”

• Stumbled upon their first private lender b/c they were aggressive
• Some of their best lenders are their buyers
• Story of how they creatively financed a small apt complex with their buyer
• It’s not a secret formula, it’s taking action and money magnetism

My own private money-getting tips:

• Farming REIA connections
• Closing attorney’s client network

“How should wholesalers find buyers in this market?”

• Reverse MLS search for cash buyers in last 7 days
• Call every “for rent” sign in the n’hood

Hope you enjoyed!  Please comment below!

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I just wrapped up an interview Friday that, quite frankly, impacted me emotionally. It was raw, guts-level honest, totally unscripted, and focuses on some of my biggest personal weaknesses…

Automation, Systemization and Outsourcing…Oh My!

By now most of us have probably read Michael Gerber’s The E-Myth and/or Tim Ferriss’ 4-Hour Work Week (if not, then seriously, where’s your head been? )

But here’s the deal: If I’m really, totally honest with you, I have to admit I have a real challenge connecting the dots between the day-to-day of my business and the whole “lifestyle design” thing. Try as I might thus far, I keep getting stymied and finding myself imploring,

“Is it really possible to set this thing up to basically run on auto-pilot?  Can I really re-design all this so that I work a whole lot less, rake in a whole lot more, and don’t have to feel ‘owned’ by my business anymore?”

Can you relate at all?

Meet REI “Systems Guy” Otto Reubsamen…

Download audio file (03-09_otto_final.mp3)

I first heard of Otto from two of my “bestest buddies” Trevor Mauch and Cory Boatright. They basically described him as a brilliant “systems guy” with the following bullet points…

• After flubbing a $300k income stream through a couple of big mistakes, he apparently learned some hard lessons.
• He then recovered in a big way with a $600,000/year real estate business that takes (get this) only about 2 hours a month of his time on average to manage.
• He’s now passionate about helping other real estate investors systemize their real estate businesses for rapid growth, predictability and amplified effectiveness.

Eh…Seriously?

Have I finally found someone who can connect the dots between “The 4-Hour Work Week” and how to apply it as a real estate investor?

OK yeah, I admit my “B.S. meter” went off a little too.  Which is exactly why I decided to call him up myself and grill him about it.  And after doing so, I can say I find Otto to be an impressively bright, inspirational guy who really seems to GET this systems thing. Our little chat nearly turned into a counseling session.

So if you’re like me and you struggle with how to automate your business, and enjoy more passive income with much less work, then please feel free to eavesdrop in on our little unscripted chat…

How to Get More Good Stuff From Otto…

If all this resonates with you like it does me, then maybe (like me) you also want to hear more from this Otto guy.

In our interview Otto mentioned a couple of interesting items – an eye-opening webinar recording and a real-world case study with Robert Elder one of his first systemization clients.

Here’s the eye opening “how to” video. It’s basically a webcast overview of how to systemize and automate a real estate business.  It’s Otto going over the systemization concept and describing how to get passive income from deals without direct involvement.  Recommended.

I’m also working on getting you the Robert Elder case study, and will post it shortly.

In the meantime, please listen to my chat with Otto, enjoy the webinar, and please share in the comments below how you feel about all this…

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“…a software program that helps you do any type of deal in minutes. You can access the software from anywhere in the world, and in 5 minutes you can literally prepare complete short sale packages, REO packages, ‘justified offers’, land trusts and a number of other systems…it let’s you create any custom package you want…To analyze deals, you simply fill out one ‘intake form’, analyze the deal, and the package is done for you…It makes real estate fast, easy and profitable…It’s both Homer Simpson easy to use and engineer-level customizable.”

OK, admittedly this is promising a heck of a lot.  So if you might be looking into this, here’s a short, unscripted interview I just had with Gerald about it. This is basically me getting right down to brass tacks with him about…

• What this software really is,
• What all it really does for an average, active real estate investor
• And who it’s ideally suited for.

Download audio file (01-14-09_Gerald_Romine_Interview_Final.mp3)
Please Note: As of 2/13/09 sales for this software have been closed / sold out.  However there is a “waiting list” you can subscribe to, in order to be notified upon re-release.)

You may also remember my post last week about this, “New Software Promises Ridiculously Awesome Systemization for REI Forms/Paperwork (Video)”. This interview is a follow up to that, frankly because a number of people specifically asked me for it.  I’m happy to oblige.

My Personal Thoughts…

As I said, this software promises a lot in terms of saving time and enhancing the efficiency of your day-to-day REI endeavors.

I for one haven’t personally tested it yet.  But after seeing the preview videos (1, 2 and 3) he’s put out and then talking to him myself about it, I’m pretty impressed with that I’ve seen and heard so far.

It looks like a marriage of software technology and systemization all about streamlining and simplifying your REI biz. If the idea resonates with you at all, then I’d say it’s definitely worth a look.

Click here for more info on
“The Ultimate Real Estate Investing Software 2.0”…

Please Note: As of 2/13/09 sales for this software have been closed / sold out.  However there is a “waiting list” you can subscribe to, in order to be notified upon re-release.)

And I trust my short interview with Gerald will be helpful to anyone who’s sizing this up for yourself.

P.S. As always, your comments are welcome. And I’d especially love to hear from anyone with any previous experience with any version of Gerald’s software.

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A friend just forwarded me this video on, “How To Get Unbelievably Low Offers Accepted By Using Justification!”

I just finished watching it, and I must say I’m impressed.  OK, honestly it makes me feel all squishy inside.   

Ridiculously Awesome Systemization?

That’s what’s at the core of this I think.

While the video walks through how to create a “Justified Offer Cheat Sheet” to quickly, persuasively make your case to a seller, it’s also a “sneak peek” demo of an as-yet unreleased piece of real estate investing software that promises to make quick, easy work out of the otherwise drudgery of creating and tediously organizing your REI paperwork.

As in, type in your stuff one time, and spit out whatever paperwork (or other output) your heart desires (and deal requires) in a quick snap.

Some tasty morsels I particularly like…

From the video I’m particularly drawn to:

• Works for a number of different REI transaction types
• 1 click comps / 1 click mapping
• Looks easy enough to outsource to a brain-dead assistant
• Appears simple to use, but entirely customizable

In all fairness I haven’t test driven this software myself yet.  So a personal testimonial I am not.

But I’m really drawn to what I see in this video, so I’m making a point to explore this further with Gerald (the guy behind the software) in the near future.  And I’ll report back afterward.

For now, I definitely suggest checking out Gerald’s video “taste test” and see what you think for yourself.

As always, your comments are welcome.

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I’d like to share something with you that I don’t think anyone else has – at least not as far as I can tell. Let me be completely transparent with you…

About the “REI Wired” Buzz…

If you’re on any of the real estate investing email lists (most of us probably are) you’ve no doubt noticed more than a few emails flying around lately about the Mike Collins’ latest “REI Wired” videos.

As of the time I’m writing this, he’s released 3 of them – the first a tongue-in-cheek introduction, followed by two content videos, one of which we’ll call “Dapper Dan Does Whole-saling” and the other, a live segment clipped from his last “No Pitch” REI event in Tampa (which I actually attended).

(Update: Doors are now closed to new charter members, but should re-open at some point.)

Now I’ve known Mike for about the last 3-ish years or so, so hearing these videos were forthcoming I’ve been admittedly interested in seeing what he’s got cooking.

Sadly however, last week included the untimely death of my trusty 2005 laptop due to sudden “Imminent Hard Drive Failure” (another story for another time).

Suffice it to say I’ve been pretty out-of-pocket and unable to catch either of the last two until just now.  I actually just finished up both of them.  So right now, while it’s still fresh, I’d like to offer you…

My Frank and Honest Assessment…

First off, I should say “thank you” to Mike for putting these out – I think they’re good content, worth watching if you want to “get your head straight” about how to contend with wholesaling profitably in today’s real estate arena – which seems to be the macro goal of both videos.

I’ll admit, these clips were a little longer than I expected. It’s not necessarily a bad thing, but I was expecting maybe 10 minutes apiece, and instead found around 90 minutes (cumulatively) of thoughtful, sometimes “heady” stuff.

Thankfully with that crazy-awesome MySpeed Plugin I told you about, I zipped through ‘em in about half the time of most everyone else. (Seriously, you’ve got to try this thing out – nothing beats it for consuming online video and audio like Speedy Gonzales – It’s still free {for now} and I honestly don’t know how I got along without it before!)

The Bottom Line…

It’s no big secret Mike’s putting these clips out in advance of his forthcoming “REI Wired” product. And like the tantalizing samples at Costco Kara and I enjoy grazing on so much, the pre-launch clips have been touted thus far as,

“… hard-core real estate information…no fluff, no filler, no sales.  Just content.”

After watching the latter two videos, I’ll vouch that there’s real information and no selling in these clips. But I should also clarify this is NOT an exhaustive “how to wholesale” type of thing, in case that’s what you’re expecting.

You’ll see from my “Cliff’s Notes” below it’s really more an exercise in opening your eyes to…

• …how the wholesaling business has shifted (and is still) today,
• …how to contend with it actively and profitably, and
• …ultimately how Mike sees the good money being made in the wholesaling arena these days.

“Mike, I Respectfully Disagree…”

I should also say that, while I think almost of what Mike shares is right on target, I honestly don’t agree with all of it. I just want to be upfront about that.

In particular, he shares a few beliefs about the role of the MLS in today’s arena (or lack thereof) that I think my friend Bob Norton is blowing out of the water right now.

But no disrespect to Mike – I can’t think of anyone I agree with 100% of the time (except for Kara – you’re always right, sweetie and overall I’d rate these videos as well worth watching (especially at 2x speed

(Update: Doors are now closed to new charter members, but should re-open at some point.)

My Personal “Cliff’s Notes”…

If you’ve missed any of the 3 videos so far, you can click the links below and they’ll open in a new window.

And just because I think it might be helpful, here’s a quick copy/paste of the notes I took while listening to these two videos as well…

Video 1. “The ‘Smashing’ Opener”

I already sent this one out a few days ago.  It’s Mike’s short series opener, where he smashes a TV making a point about how we spend (or waste) our time.

It’s short and made me smile a little, but not a “must see” by any means. Feel free to skip right to the other clips.

Video 2. “Dapper Dan Does Wholesaling”

Mike in a business suit (whooda thunk?) sharing from his office about wholesaling.

• Collinsology: Wholesaling is “Job 1”
  • Why every real estate investor should have wholesaling as a key tool in your back of tricks
  • How it’s by far the best way to generate cash quickly in real estate
    
• Get educated
  • Specifically, get educated locally
  • Get an in-depth knowledge of the players in your local market
  • Collinsology: The wholesaler’s primary target buyer in today’s arena is the cash-bearing landlord
    
• Collinsology: Stop “Elephant Hunting” (i.e. trying to find something you can “feel good” about dolling up)
  • Instead, see houses as commodities
  • Ideal: 3/1 or 3/2 in solid blue collar n’hood below the median price range in your area
  • Needs to cash flow as a rental
  • Collinsology: Cut your teeth on bread and butter deals before you try to specialize on a niche
    
• Learn values, learn values, learn values
  • You’re getting paid to know values in your marketplace
  • Retail values aren’t that hard to learn from browsing the MLS
  • Learning wholesale values is a bit trickier
  • TIP: Realquest.com
    • One of the largest data providers in the U.S.
    • Uses actual courthouse sales
    • Do a radial search of all sales in your target area
      
• Learn direct marketing
  • Why direct marketing Vs. “image” advertising
  • Collinsology: “Don’t spend a ton of marketing to start with – test first”
    
• Find a niche and focus hard on getting really good at it
  • A niche in your marketing and in the type of deals you’re doing
  • Get a “farm” area
  • Your “farm” area will grow outward concentrically
    
• Other stuff:
  • Collinsology: “You should do at least 10 wholesale flips before you ever decide to become a landlord.”
  • Collinsology: “The future of our industry belongs to the wholesalers.”
  • 30%-50% of the transaction often goes to the wholesaler
  • At first, don’t worry about “lists”.  Instead use your direct marketing to lead you to dealing “belly to belly” with the seller b/c the experience is invaluable to your perspective (setting your head straight) early in your career.
  • The biggest deals tend to be repair-related issues, rather than financial-related issues
  • Look for the “Earned Equity Phenonenon”
  • Collinsology: “Everone we did a killer deal with was someone who did not earn the equity in the property they had control of.”)
  • The wholesaler’s biggest competitors right now: THE BANKS
  • Focus mostly on being a deal finder – and ideally an “advertising driven wholesaler”
  • Set your business model up correctly
  • Wholesale your first 10 straight deals (for the education, experience and contacts you’ll make)
  • Learn your target marketplace inside out
  • Collinsology: Cherry pick some of the best houses for keep for yourself along the way

Video 3. “The ‘No-Pitch’ Illumination Speech”

A segment from Mike’s presentation at his last live event. (and at one point, you see Cory Boatright nerdily answering Mike’s questions  in the audience

• Mike’s Formula: Sellers Leads + Knowledge of Values + People Skills + Contract Knowledge + Guts & Action = Cash and Freedom
  • Least important of these is contract knowledge (b/c it’s just not all that hard)
  • Collinsology: When cutting your teeth, try dealing directly with the public rather than foreclosure lists or the MLS (not sure I agree)
    
• Wholsaling Grows Up: Then, Now and Tomorrow
  • Collinsology: “The industry is standardizing, comoditizing and become more and more liquid than ever.”
  • Interesting: Realnet.com – licensed agents who are basically wholesalers first
    
• What the wholesaling industry is rapidly becoming (and why)
  • 70%-80% of the country has pricing structures for double exit strategies for wholesaling houses
  • You should start wholesaling to landlord
  • You make your money when you buy – it’s true!
  • Collinsology: “You need to reduce selling to a clerical event – it must be systematized and automated as much as possible.”
  • Collinsology: “It’s not about wholesaling, it’s about execution.”
  • There tends to be a big gab between information and actionable knowledge
  • Mike has at least 200 houses he’s purchased b/c the person selling it to him “just didn’t like” the other guy (his competitor)
  • “What’s the story?” almost always trumps “the numbers.”
  • How Mike uses “overstaying his welcome” as a negotiation tactic w/sellers.
  • Collinsology: “Listening is hypnotism”
  • Collinsology: Repair distress is almost always more profitable than financial distress
  • How to offer the same as your competition, AFTER your competition, and still get the deal
    
• Learn values, learn values, learn values
  • Block to block in your “farm area”
  • The most important number is the “Wholesale Number”
  • Become a “Transaction Analyst”
  • (which of course requires knowing the numbers in your area)
  • Collinsology: Look for the lower end of the bell curve in your area. (not sure I agree w/this either)
  • Collinsology: “You cannot find what you’re looking for in the MLS.”
  • (Really don’t think I agree with this as an “absolute”)
  • You’re looking for “virgin deals”
    
• Business Model Development:
  • Lack of focus is the new investor destroyer
  • Learn your market’s values
  • Find your market’s cash buyers
    • Go to your courthouse sales and look for someone willing to bid on a house all cash, who’s maybe never even seen the inside
  • Generate leads
  • Write the contract
  • Sell the contract
  • Cash the check
  • Make sure it clears!
    
• Other Stuff:
  • Doing 10 wholesale deals first “sets your knowledge base” for the rest of your career. (I wholeheartedly agree)
  • Collinsology: “Small deals run your business – big deals make you wealthy”
  • Collinsology: “It’s never too late to be what you might have been.”

Hope you found that helpful – using my notes and the MySpeed plugin should save you some time at the very least.

Please leave your comments below.

(Update: Doors are now closed to new charter members, but should re-open at some point.)

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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)……

http://www.youtube.com/watch?v=li6SPfSYlEA

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.

And…eh…WOW! 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.

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…
Download audio file (norton_followup_A.mp3)

Part 2-B (25m:24s)
Press “play” to listen or right-click here to download MP3…
Download audio file (norton_followup_B.mp3)

Part 2-C (27m:09s)
Press “play” to listen or right-click here to download MP3…
Download audio file (norton_followup_C.mp3)

Part 2-D (31m:12s)
Press “play” to listen or right-click here to download MP3…
Download audio file (norton_followup_D.mp3)

“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…
Download audio file (16141196226988-001.mp3)

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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