Are You Using These Contract Clauses When Wholesaling Real Estate?

The quickest way to make money investing in real estate is wholesaling.

Basically, you find a great deal, get the property under contract, and assign the contract to a buyer.

That’s it!

… and often times you can walk away with $3k, $5K or even more (in the video below I show you a check for $6,700 from one of my more recent wholesale deals).

And you can do this…

- Without cash

- Without good credit

- Without ever owning the property

- With virtually no risk

Pretty cool, ehhh?

Well, having the right clauses built into your contract can make or break a deal.

So, I decided to shoot a quick video and outline some clauses that you want to make sure you have in your contract when wholesaling real estate.

If you’re new to real estate investing and don’t have any contracts, I have a great resource for ya… more on that in a min.

Check out the video below now…

As I mentioned at the end of the video, we came across a great resource that you may want to check out…

It’s the best darn software I’ve seen for auto-filling your contracts… and for right now, you can grab it for free. Plus you get 9 contracts with it – a purchase and sale agreement to use when buying and one for selling, an option agreement to use when buying and one for selling, an assignment contract, and more.

>>> Grab Your Contracts & Auto-Fill Software HERE While It’s Available for FREE<<<

My favorite thing about it…

I can even upload MY contracts into it and auto-fill ‘em, and either email or print ‘em out. A great time saver!

Anyway, thought you’d enjoy these wholesaling clauses and free tools.

Happy Investing!

- Patrick

P.S. – Got something on your mind? A question. A thought. A tip. Leave it in the comment area before you go.

5 Easy Ways to Build Your Buyer’s List (plus free form)

A great way to make quick cash investing in real estate is wholesaling.

Now, this isn’t private money related like most of our content… but this is valuable info for any real estate investor.

Imagine being able to create $3K, $5K or even more simply by finding a great deal and referring that deal over to another investor.

In the video below, I show you a check I just picked up last week on my most recent wholesale deal. You’ll learn 5 pretty simple strategies (this isn’t rocket science) to build your wholesale buyer’s list… and get a free form to walk you through the process.

So, click below to learn how to wholesale deals for quick cash…

Click Here to Grab Your FREE Wholesaling Form

 

Got a question, comment, tip?

Toss it in the comment area before you go.

… and Happy Investing!

- Patrick

One of My Favorite Real Estate Investing Strategies

You’re about to learn the ins and outs to one of my absolute FAVORITE real estate investing strategies. This was one of the first strategies I learned when I got started in real estate… and has been responsible for hundreds of thousands of dollars in additional profits.

With this REI strategy, you can:

• Implement on both the buy and sell sides of the biz (and even in between) to make big money
• Get 100% control of real estate with NONE of your own resources
• Profit from real estate without ever owning it with ZERO risk
• Fill your properties with someone with an entirely different mindset than a tenant (often times they’ll even improve your property for you)
• and MUCH MORE!

Not only are you gonna learn exactly what this strategy is and how to use it… but I’m gonna share my secret $25,000 purchase price clause to use when implementing this strategy on the sell side of your biz.

So, without further ado, watch the video below now! (also, make sure to watch the entire video… there’s some info near the end you don’t want to miss)

>> REGISTER FOR OUR FREE WEBINAR ON LEASE OPTIONS HERE <<

Join us for a free Lease Options Training this Thursday, 9/30 at 6pm PST (9pm EST).

Alrighty, that does if for today.

Before you go, give us some feedback in the comment area… your thoughts and questions are welcome.

Catch you later,

- Patrick

P.S. – Keep an eye out for our next (much more in-depth) training on lease options coming soon. This is gonna be GOOD stuff!

Private Money 101: A Crash Course in Private Money

Before we dive right in, answer these questions for me …

= > “Are you frustrated because you can’t get your hands on the cash you need for your real estate deals?”

= > “Are you scared to make an offer for fear that it will get accepted?”

= > “Have you ever lost a great deal because you didn’t have cash to close it?”

= > “Is a lack of financing killing your real estate investing dreams?”

If you answered “yes,” to any of the questions above, then private money may be THE solution for you.

To find out, let’s take a quick crash course in private money … aka Private Money 101.

What is private money?

Private money is cash from an individual that is lent to you, the real estate investor, rather than being invested traditionally through stocks, bonds, mutual funds. When you think about private money, think investment funds from an individual … any individual.

Is private money the same as hard money?

Far from it!

Hard money lenders finance deals for real estate investors as a business. They lend to investors based on the property, not necessarily based on the person. The hard money lender dictates the terms of the deal to you, the investor.

A typical hard money loan has high interest, points, and is short term. For instance, I purchased my second deal with a hard money loan. I was charged 15% interest, five points (or 5% of the loan balance), and had a term of six months to repay the loan in full.

Do you see why they call it “hard” money?

On the other hand, with private money, you dictate the terms of the loan to your private money lender. Based on the deal and your business model, you offer terms that suit your needs and provide a good return for your private lender. A typical private money loan could have 6% to 10% interest, no points, and a term that suits your exit strategy.

What type of properties can you buy with private money?

The primary niche for my real estate investing business is single family homes. But, single family homes are not the only type of property you can buy with private money.

Trevor only buys apartment buildings. He has been investing for several years now and has accumulated a nice portfolio. Each property cash flows well, is managed by a professional property management company, and is in or near his local market.

And how do you think he finances every one of his purchases?

You guessed it … Private Money!

Any great real estate investing deal can be financed with private money; it doesn’t matter if it is a house, condo, townhouse, apartment building, skyscraper, or beach front home.

Do you have to do lender luncheons to get private money?

One of the popular methods taught to get private money is to host a lender luncheon. You would be required to rent a facility, advertise to fill the room, and you would present your private lending program in front of the audience. While I believe this to be a good strategy for some, hosting a lender luncheon is not a viable strategy for most.

Why you might ask?

The number one fear in our country is public speaking. And you know what is number two … death! Most people would rather die that speak in front of an audience. Even if it was easy to get private money by hosting a lender luncheon, the majority of people would not do it.

So the question still remains, “Are lender luncheons required to get private money?”

Luckily for you, the answer is “no.”

I actually found that it is easier to get private money by presenting your investment program to prospects one on one. Plus, you don’t have to spend money to rent a room at a restaurant or hotel, pay for marketing costs, deal with the anxiety of presenting in front of an audience, etc. etc.

What types of people are the best private money prospects?

The first type is people who know and trust you. This could be a family member, long time friend, neighbor, someone from church or school . . . really anyone that you have built a long term relationship with could be a good source for private money.

The second is people who know a good deal when they see one. Anyone who works in a field related to the real estate industry could fit in this category. Examples would be real estate agents, mortgage brokers, bankers, appraisers, home inspectors, attorneys, accountants.

And yet another type most likely to lend to you is the best source of all . . . people who know someone who has invested with you. Or, in other words, referrals! Once you get your private lender base established, ask them who they know that would also like to make a good solid rate of return backed by real estate.

Would my local real estate investing association (REIA) be a good place to find private money?

Yes, it would!

REIA meetings are filled with people who have heard real estate investing is lucrative, want to make money doing it, but do not have the time, energy, motivation, or know how to do it themselves. That’s where your private lending program comes in …

You offer a hands off real estate investment with a good return. Your private lender gets to “invest” in real estate without having to deal with the hassles that come with owning property like repairs, managing contractors, dealing with tenants, and other general property management duties. All they have to do is stroke you a check.

People who attend REIA meetings are already sold on real estate investing, all you have to do is sell them on lending against one of your deals.

How do you convince someone to lend you private money?

You don’t!

That is coming from the wrong mindset. You’re not out to “convince” anyone to lend money to you. Your goal is to educate people about your investment opportunities. If someone is interested, great. If someone is not, next.

Class adjourned. That’s it for your crash course, Private Money 101.

If you have any questions, comments, or additional tips, throw ‘em in the comment area.

Happy Private Money Getting!

- Patrick & Trevor

Why Private Lenders Say “No” And What To Do About It

So, you’re meeting w/ a private money lending prospect. Let’s call him Joe Lender.

You find out that Joe is currently getting a 3% return on his investments. You offer him 6%… and he says “No.”

Why would he say “No” when he could DOUBLE his current return by simply lending you private money?

And more importantly, how do you get Joe to change his mind?

Watch the video below to learn how…

Alrighty, time to take action on what you’ve learned… because action is the big differentiator between success and failure.

… and don’t take my word for it. They all agree.

“Action is the real measure of intelligence.” – Napoleon Hill

“Everything you want is out there waiting for you…Everything you want also wants you. But you have to take action to get it.” – Jules Renard

“The path to success is to take massive, determined action.” – Tony Robbins

Happy Private Money Getting!

- Patrick

… aka P-Rid

P.S. – Be a giver. Leave a comment before you go and give your feedback, opinion, thanks, whatever comes to mind. We LOVE hearing from you guys and gals

How to Save Time, Make More Money, and Have More Fun

You’re About to Discover…

9 time-saving, money-making tips to help you get more done in less time… so you can have more fun and make more money.

How many of you like that concept?

Well, that’s EXACTLY what will happen when you implement these tips.

I’ve borrowed many of these from Dan Kennedy and his phenomenal book, No BS Time Management for Entrepreneurs. Get the book, consume it, live it.

Watch the tutorial below now…

3 High Impact Places to Get Private Money

Let’s face it …

Some places are better (and easier) to get private money than others.

So, you may be thinking, “what are the best highest impact places to easily get private money?”

In a moment, I’m gonna share 3 of these places with you in a video I just shot for ya. .

So, get out your pen and pad because class is in session. Prepare to get schooled.

3 HIGH IMPACT Places to Get Private Money Now

Watch the video NOW!

So, now for your homework …

Pick out 1 of these places and GO! Set a date for when and do it. Action is the key here.

So, networking is a GREAT way to get private money. And is the primary way that I’ve gotten most of my private money ($6 million plus).

But, as I mentioned to you at the end of the video …

How many of you want to get private money without networking?

How many of you don’t have family and friends with extra money to fund your real estate deals?

If that’s you, we’ve got somethin’ for you too.

So, keep your eye out soon for a brank spankin’ new in-depth presentation on an old (but little known) private money getting method that we’ve perfected over the last 8 months.

You’re gonna LOVE this!

Talk soon,

Patrick

P.S. – What other spots have you found to be HIGH IMPACT places to get private money? Be a giver. Share ‘em in the comment area.

P-Rid’s Private Money Millions Series: Private Money on a Silver Platter

Buenos dias fellow private money getters.

Referrals are like getting private money handed to you on a silver platter and are extremely POWERFUL. Getting referrals puts you on the fast track to unlimited funds for your deals. How?

Let me explain …

To sell anyone anything (in our case, selling a private money prospect on the idea of lending us their investment funds), there is typically a process of converting a prospect’s mindset from unmotivated and skeptical to a motivated buying mindset … let’s call it the “buying process”.

A cold prospect – someone that you do not know nor have any relationship with – begins unmotivated and skeptical. The process of converting them over to a client is MUCH more difficult than say a warm prospect or referral because you start with absolutely zero rapport, credibility, and trust.

A warm prospect – someone you know and have a relationship with – starts further along the “buying process” than a cold prospect. There is already some rapport, credibility, and/or trust inherent in the situation since you’re not Joe Blow off the street who they’ve never heard of.

Warm prospects are the easiest place to start in your private money getting efforts, and, once you get going, getting referrals literally opens up the flood gates of private money to your business.

One of the big reasons why is that the rapport, credibility, and trust that the referral has in the referrer is transferred from the referrer to you and your private lending program. Thus, eliminating in many cases the skeptical mindset that keeps people from lending to you or even meeting with you in the first place.

So, your referred prospects come to you as far along in the “buying process” that the rapport, credibility, and trust (that was transferred over to you) takes them. I’ve had private money referrals where all I did was show up to have a check handed to me. No presentation, no questions, no objections.

Now that’s the POWER of a referral!

So, the next question would be …

How do I Ask For and Get Private Money Lender Referrals?

There are two specific times in the private money getting process that I like to ask for referrals. Below, I’m gonna tell you when to ask and exactly what to say … I’m gonna give you exact scripts that you can immediately “plug and play” into your business.

1. Ask for referrals once you’ve presented your private lending PowerPoint presentation, followed up with the prospect with several lending opportunities, and they still haven’t jumped on a deal with ya.

At this point, you’ve established a relationship with the private money prospect, BUT, for whatever reason, the prospect hasn’t jumped on a deal.

Here’s what you want to do …

After you pass the next deal by the prospect, if they say, “No thanks,” say …

“Well, I understand. Even though this is a great investment opportunity, I know that it’s not right for everybody.

Would you even like for me to continue contacting you with these opportunities?

(if yes) … Ok, then it’s obvious <Insert Prospect’s First Name> that you understand why our lending program makes sense, why it makes sense to invest with us …

I’m not sure if this is you, but … who do you know that may be interested in an opportunity like this? … you know, a great investment opportunity …

(at this point, specify how many referrals you want and name off any groups, organizations, etc that you know the prospect is affiliated with)

<Insert Prospect’s First Name> let’s see if we can list 3 people if … that’s ok with you … people from your church or neighborhood, people that you work with or who attend Rotary with you?”

And then, pick up your pen, look down, and SHUT UP.

No matter how long the silence. Do not say a word.

2. Ask for referrals once you’ve borrowed some dinero from a private lender AND you’ve either made several interest payments to them or you’ve paid them off in full.

Depending on how you structure your private money loans, it will depend on how soon after signing up a new lender you should ask for referrals.

Personally, I do not like to ask a new private lender for referrals until they’ve seen actual results, until they’ve received interest payments or been cashed out in full (if the interest accrued until the loan was paid in full).

So, imagine having a private lender who has been in your program long enough to see and feel some results.

Call ‘em on the teléfono (yep, just added another word to my Spanish repertoire) and say this …

“Hey <Insert Private Lender First Name>, this is <Your Name>, did I catch you at a bad time?

(if no) Great. Well, I wanted to ask you a few quick questions about your experience with our investment program. Would that be ok with you?

Thanks. I appreciate it.

First off, how has your experience investing with us gone so far?

(if their experience has been enjoyable/positive, focus on asking additional questions that get them talking about those benefits and then say …)

I’m glad to hear that <Insert Private Lender First Name>.

Well, who else do you know that may be interested in an opportunity like this? … someone who would also enjoy <Insert the Benefits the Prospect Mentioned>  …

(specify how many referrals you want and name off any groups, organizations, etc that you know the prospect is affiliated with)

Let’s see if we can list 3 people if … that’s ok with you … people from your church or neighborhood, people that you work with or who attend Rotary with you?”

And then, you know the drill …

Pick up your pen, look down, and SHUT UP … (or in Spanish) … Cierra La Boca!

No matter how long the silence. Do not say a word.

With your new list of private lending prospects, strike while the irons hot! Set aside time the next day to set up the formal appointment.

Hasta luego,

~ P-Rid

Meet the Private Money Blueprint Team

Together in a live setting for the first time EVER … meet the PMBP Team!

Our Getting the Money Bootcamp was an absolute slam dunk (that’s what brought us from our respective sides of the country together).

Check out some of the feedback from attendees:

“The content here was AMAZING – specific, understandable and immediately usable. Thank you!” – Bernadette Davis

“The Getting the Money Bootcamp was not only packed with top-notch, excellent content, but the quality and caliber of attendees made for one of the best networking opportunities I’ve ever experienced. Job well done Patrick, Trevor and Susan!” –Jeremy Crutchfield

“As always, you delivered much more than expected.” — Les Bick

“This is the best real estate seminar I have ever attended.” — Steven Thronbrugh

“This is one of the best seminars I have been to, and I’ve been to a lot! Thank you for 3 great days!” — Kevin Guttman

“Extremely informative and intense 3 day event that will have a surefire impact on any Real Estate Entrepreneur regardless of experience.” — Jamie Matheny

“An outstanding experience that will educate and further the business results of all who attend. Also, the best networking event I have ever experienced.” — Thom Paterson

“Awesome! Demystified those sexy syndications and hedge funds. Thank you! Better than anticipated!” — Denise Eccher

“The best hands down real estate event I have attended. Packed with content, real people who are accessible and truly want us to succeed. This ROCKED!” — Carlton Linder

Happy Private Money Getting!

- Patrick, Trevor, & Tim

Real Estate “Shadow Inventory” Lurking in our Midst……

by Tim Krulia – Private Money Blueprint CFO

As part of our quest here at PMBP to give you the single best resource on the financial aspects of growing your real estate investing business (aka, we help people find private money quickly, easily, and abundantly)… here’s an article I found that explains the different fluctuations in today’s market and why it’s going to struggle again before getting better…

Four great topics are discussed in this article:
1) Post tax credit prognosis
2) 4 strong negatives dragging on the market
3) What the heck is Detroit doing!?!?!
4) “Shadow Inventory”  Dun, dun, dun!!!

Two friends of mine (newlyweds) closed on their first house on Monday.  They were super stressed out to make sure that they had the house under contract and closed by the specified cut-off dates of the tax credit policy.  They are perfect examples of folks who got up off their behinds and bought now rather than later because of the tax credit expiring.  They had plans to buy a house sometime in the next year or so but jumped now for the $.

Real Estate Market Hangover Effect

The author of this week’s article hits the nail on the head when saying that the tax credit’s effect has “borrowed buyers” from later months and now it’s time for the hangover effect.  Meaning, the supply of buyers was potentially pre-maturely depleted a good bit from our government’s incentive plans leaving the next few months or so to suffer from the reduction of supply of buyers.

The author gives 4 great reasons why the market (although had a great recent short term – thank you tax credit boost!!) is going to start to struggle again.  During the early 2000’s refi-boom, equity in houses was leveraged to the hilt with high LTV and CLTV loans.  When I was originating mortgages, it seemed like everyone and their mother either bought their houses with 0% down payment or opened a second mortgage to super high CLTVs.(i.e. only leaving a small amount of equity in their homes).

In the past few years as home prices fell, many Americans had to stand by and watch as the values of their houses fell below the amounts they owed for the house.  These underwater swimmers are what the author is referring to in the article.  It makes total sense what the author is concerned about and the remedy (well one anyway) is appreciation.  If there is enough equity in a house, it can just be sold if the owner loses their jobs, moves, has a divorce, etc.  If a house is underwater, the number of choices is limited as to what the owner can do and well, we’ve seen that foreclosure has been the poison of choice for the masses the past few years.

Detroit Michigan Real Estate Being Demolished

Detroit, Michigan, ouch……sorry man.  Even as a loyal Ohio born and bred Buckeye it makes me feel awful for what’s going on up there.  It’s just too bad that all those houses might just be destroyed.  Coming from a background of personally overseeing about 50+ real estate rehab projects (and seeing first hand what can be done to bring a house back to life & how awesome that really is to watch), I wish there could have been a tax base in place from somewhere to commission thousands of out of work contractors in the Mid-West to rehab these houses & bring them back to life.  Maybe these neighborhoods have really got into such bad condition that this is really the best route to take.  After watching the video in the article, I sure wouldn’t want to be talking a stroll though some of those neighborhoods at night……or even in the daylight for that mater!

Last, but certainly not least, “Shadow Inventory.”  What a great name for these houses!  I don’t know if the author made the name up for this article or what, but it’s catchy nonetheless.  Ok, but what the heck is the author talking about?  Basically, there are lots of home owners that want to sell their houses, but have decided that they will just stick it out until the housing market comes back first before putting their property up for sale.  Well, logic would lead one to believe that as this lull in the real estate market continues grow in time, there is probably some relatively similar proportional growth of home owners that are falling into this category.

Let’s just say that IF all the markets were doing great again (employment, stocks, real estate, foreign trade, etc.); all the people that wanted to sell their houses would put them on the market and try to get a good sales price.  The problem is simply a supply and demand issue.  Over the past few years the supply has been so much greater than demand that it became a main driver of the prices of homes depreciating in value.

If a huge number of home owners are waiting for a rebound in the real estate market to sell their homes, as soon as they hear that the markets are rebounding it’s a very real possibility that a ton of houses will slam onto the market thus pressuring depreciation again.  The author of the article makes note that if these “Shadow Inventory” homes keep popping onto the market every time things start to look a little better, the supply increase from shadow inventory will pressure the market negatively again and again.  I hadn’t thought of that segment of the market like that before but my parents fit that description to a T.  They are baby-boomers. I wonder how many others in that cohort are standing in the same shoes as my parents.  If it’s a significant number, as I’m afraid it may be, that’s a BIG hindrance on any substantial short-term recovery of the real estate market!

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