On this month’s call, Patrick chats with one of our members, Josh Borcherding, who started investing 3 years
ago… and today, owns 26 units – a mix of small multi-family properties and single family student housing. You’ll learn how Josh and his wife have built this portfolio which now provides $5,011/mo in positive cash flow!
… and step-by-step how he closed two of his recent deals.
One of which is a 4-plex and you’ll discover the website where Josh found the deal (that you can access for free), his 3-offer approach, how he negotiated seller financing at 5% per annum, and much more!
Now, grab a pen and get ready to take some notes!
Plus Josh is going to share a postcard that he used to get not 1, not 2, but 3 deals from! … and he only did one mailing!
I hope you learn a ton from this training that you can implement in your biz. Join the conversation and add your comments below.
When you use the right tools and techniques, getting private money is easy.
Sound hard to believe?
Well, then listen close because you’re about to discover the reality… that private money is indeed easy to get, and it’s available to you right now (whether you’ve known it or not).
Take Tim Bratz for instance…
Tim’s a 25 year old kid who didn’t like the idea of having a boss, working towards someone else’s dreams, doing the 9 to 5 thing.
I chat w/ Tim regularly on Facebook (and many of our other PMBP students). Check out the message he sent me below…
Isn’t that incredible!?
Tim said, “… he looked at my website & was interested in lending private money.”
With the right tools and systems, getting private money is easy.
Check out the newest update Tim just sent me last week…
Bravo Tim! Congrats on your success with PMBP!
If you like the idea of walking away from closing with cash flowing properties, putting $6K in your pocket, and using none of your own cash or credit, you may want to check out the Private Money Blueprint Training System.
If you have any questions, toss ’em in the comment area.
– Patrick
… aka P-Rid
** These private money results are not typical. The “average” person doesn’t take any action, and therefore, gets no private money.
Shae Bynes, of Good Faith Investing, has created what we like to call, “Private Money Momentum”. And it’s a beautiful thing!
It ‘took her a minute” (in her words) to get private money … but once she roped in 1 private lender, it only took 49 days to get 2 more.
We chat with our students a good bit through Twitter and Facebook. Check out her tweet below about getting her first private lender …
And exactly 49 days later, Shae updates us over on Facebook …
A quick shout out to Mike Henninger, of The Tattooed Investor, for saying, “PMBP rules!!!”
Thanks dude 🙂
Big Congrats to Shae for following the Blueprint and getting private money.
If you want to connect with her, here are links to her Facebook and Twitter.
Catch ya later,
– Patrick
… aka P-Rid
P.S. – If you’re still struggling to get private money (and you’re at risk of missing out on the greatest time to buy real estate that we may ever see in our lifetimes), plug into the Private Money Blueprint System. Many other smart investors already have.
** These private money results are not typical. The “average” person doesn’t take any action, and therefore, gets no private money.
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 will show you 5 markets you may want to look at in 2010.
Okay, with 2009 behind us… it’s time to start looking at 2010 and how we can all kick some more butt in the real estate market. With our forecasts… getting private money for real estate in 2010 should be about as plentiful as it was in 2009, so don’t hesitate to shoot us a message if you have any questions on that front anytime.
Okay, according to a recent article at the MSN Real Estate site… most of the major real estate markets in the U.S. will still be down in 2010… but, they’ve forecasted these 5 markets below to be the top 5 real estate markets in 2010 as determined by forecasted appreciation rates:
The top 5 cities for home prices
Tacoma, Wash. (+2.44%)
Memphis, Tenn. (+0.99%)
Pittsburgh (+0.89%)
Charleston, S.C. (+0.18%)
Seattle (-0.50%)
These five markets are culled from data on Moody’s Economy.com and based on the largest 100 metro areas. There are a few other really great points in the article in addition to the “top 5 markets” that you’ll want to take 2 minutes to check out.
I’m a fan of this article because it raises a few great points of interest and is in line with my personal philosophy of how 2010 should play out.
Scherzer writes (and I feel strongly that this is also the case), that “even though there are government stimuli in place (tax credit) and low interest rates (which help stabilize the market’s values) the leading factor that’s going to lead to increasing home values is a turn around in the labor markets first and foremost. “
The article lists their potential top 5 cities for the housing market in 2010. A leading factor used to determine the values includes looking at the labor market & the economies of the listed cities.
She includes some great statistical content about 2008, 2009 and probable 2010 foreclosures and also how they may relate to ARM mortgages making their first adjustments. Don’t miss the link for RealtyTrac and all the foreclosure listings (http://www.foreclosurelistings.com/). If you don’t know about this website, you should check it out ASAP!
Note that if you are in the business of buying foreclosures, this article notes an expected increase from 3.2 million foreclosures in 2009 to 4 million in 2010! As we know, one of the smartest ways to buy real estate is by using private money.
If this is your business, I think it would be smart to be aggressive recruiting funds now to take advantage of this next huge round of “low hanging fruit” to buy this year. There’s some great free articles and resources here on this blog under the “Private Money Articles” section that you can refer too.
So, whether you’re investing in one of those 5 markets or not… it doesn’t really matter. There’s deals everywhere and there’s buyers everywhere… just clarify your strategy in whatever real estate market you’re in and get ready for 2010 and the continued wave of sub prime and Alt A foreclosures (and the wave of commercial foreclosures starting to pile up too).
– Tim
————————————– Highly Recommended ————————
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One of our PMBP Platinum students called Patrick and I this week to get some last minute questions before he does his first “private lender group
pow wow” for a bit of our advice.
Anyhow, we got to talking and he just got a HUGE property under contract ($1mil apartment building) and already has all of the private $ lined up for it… 30 days before close (we taught him how to get those lenders).
Long story short… Tim’s business model for buying apartment buildings with private money is just like mine.
Buying Apartments With Private Money Simplified Process
Here’s how it goes:
Market for sellers who have owned the property for 10 years or more (the more time the more equity)
Negotiate with seller to have seller carry as much of the note back as possible. I prefer at least 80%. – Tim got a 10% rate which still helps him cashflow the property, I usually go for between 6-8%.
Bring in private money lenders for the downpayment.
Tim brought in $80k in private money from two lenders for this deal.
Own a property w/ HUGE leverage, positive cashflow, and little to nothing out of your own pocket.
Sounds simple… cause it is.
The trickiest part of the whole thing is finding enough property owners to talk to on properties that match your buying criteria.
Not all sellers of course will want to or have the means to be able to carry the note.
However, when you really target the RIGHT sellers you increase your odds and closing percentages big time.
Types Of Property Owners I Target
I like to target this type of seller for apartment buildings:
Owned property for 10 years or more
Is nearing or in retirement (45-60 years old)Property is in good shape but might need a bit of cosmetic work/upgrades…
…and as a bonus. If they seller manages the property themselves it’s even better!
It’s better because when you say the right things you can show them how you can pay them the same or more than they’re currently
making in cashflow per month if you buy the property… and they no longer have to worry about managing the place, doing repairs,
fixing toilets, etc.
Once you’ve negotiated with the owner on the purchase price and seller carry, now it’s time to get a hold of your private lender prospect list and start using the 30 second commercial, setting up 1 on 1 appointments… and gear your presentation a bit toward the end on this specific deal.
Let the strength in the deal numbers “sell” the deal for the private lender to show them it’s a no lose for them.
For Tim, our student… he got the property under contract and the seller agreed to close in I think it was 60 days… don’t quote me on that though.
Then, Tim had already been talking to people and planting seeds about what he’s doing and giving his 30 second commercial.
So, he went back to those people who showed interest and told them about the deal… and asked for a 1 on 1 appointment to show them more details.
He secured the one lender for $40k using his presentation…
… then asked that lender if he knew anyone who would be interested in this deal.
(KEY: Ask for referrals… that’s one of the best sources of instant credibility and makes it much easier to built trust with the referral).
Tim talked to the referral, presented his presentation and deal… and locked up the other $40k he needed right then and there.
Done deal.
The only difference between Tim and other people who haven’t seen this kind of success is that he took what he learned and took action on it.
He did a great job finding a great deal… and we helped him get the confidence to get the private money for the deal.
Here’s the stats:
Purchase Price: Approx. $1,000,000
Seller Carry: Approx. $ 920,000
Private Money: $ 80,000
Money out of Tim’s pocket = $ 0
(I believe the private lenders are paying for the closing costs too for Tim!).
That goes to show that there are great deals to be had out there and that those deals go to those who take action on what
they learn.
So, get out there and use some of the tips from this article to find a great property and fund it with private money so you don’t have to take a dime out of your pocket to own a million dollar property.
Lol, I get emails every week from people asking if the “no money down” deals are real… they’re skeptical.
Well… they’re 100% real… they’re all over the place… and if you don’t think they are out there… well… more for me and Tim! 🙂
There are two things that every person that you know and every person you come in contact with should know . . . you are a real estate investor and you have investment opportunities available.
But that’s it at this stage in the process. You’re not explaining the details of your investment program, how the investment is secured, what rate you are paying, how it’s all structured, etc.
Your job when “tilling the soil” is to simply pique interest . . . with anyone and everyone. And you do this by using the 30 second commercial.
Private Money Getting Tip: Do not disqualify anyone as a potential private money lender. That’s one of the most costly mistakes you can make when getting started. You don’t care if someone has the wherewithal to invest or if they’re currently interested in becoming a private lender.
Your job in this step is to get the word out about who you are, what you do, and how others can profit from it!
OK . . . now that interest has been piqued and people want to know more, go for the formal appointment.
Step 2 – Plant Seeds
When you have a formal sit down appointment with a private money prospect and they leave the appointment with a FULL understanding for exactly how your program works and where they fit in the process, you have successful planted a seed. Nice work!
You want to continuously set appointments for practice, you want them for feedback, and want one more person out in the world to know the ins and outs of your program. If someone you meet with never invests with you in a million years, that’s fine! Who knows who they’ll tell about your investment program. When the topic of real estate investing comes up, chances are, they’ll want to contribute to the conversation. That’s when the word about your investment opportunities starts to spread.
If you use the free private lender PowerPoint presenatationthat we provide, you will find out a ton of good information from your prospects about their needs and goals. There are specific questions built into the presentation so that you will know exactly how to match the right prospect with the right deal going forward.
From here, you want to . . .
Step 3 – Nourish Your Field
You’ve probably heard before that . . . The Fortune is in the Follow Up!
Well, that’s the whole truth and nothin’ but the truth when getting private money. You want to create a list of people that you’ve planted a seed with (meaning you’ve formally presented to them and they understand your investment program), so that every time you have a deal that needs funding, you can just go down the list calling every private lender prospect that could be a match.
And you follow up with these prospects until they “buy or die.” Until they tell you to get lost and quit calling them or until they write you a check to fund a deal. The more contacts that you have with each individual, the more you build trust, credibility, and your chances that they’ll become a private lender.
You’re nourishing your field by following up continually and setting yourself up for a copious harvest!
Step 4 – Harvest the Crop
You make the call saying, “Hey Bill, thought of you when another great investment opportunity came up and . . . not sure if it would be right for you but thought I would at least call and tell you about it . . . you see, we’ve got a great opportunity for the right person. It’s not going to last long though because I’m going to have a private lender commited to funding it by Friday. Is this something you might be interested in?”
And low and behold, the private lender prospect says, “YES.” You’ve successfully tilled the soil, planted the seed, and nourished your field until harvest.
Now, get back out there and start all over again . . . you’re on your way to having private lender beating down your door! Keep up the good work!
by Tim Krulia – Private Money Blueprint CFO
These five markets are culled from data on Moody’s Economy.com and based on the largest 100 metro areas. There are a few other really great points in the article in addition to the “top 5 markets” that you’ll want to 