You might think I’m off my rocker for suggesting that a housing boom can actually work against you, but it has happened to many, many investors, including myself.  Let me share with you two observations I’ve made after going through a housing boom into a housing collapse.

#1: A housing boom can keep you from learning to negotiate.  Think about it.  When property values are going up thousands of dollars per month, you could actually buy a house for full market value and resell it later for a profit.  You could buy just about any house on the market without picking and choosing, or offering less than asking price.

Conditions like these only last a short while and are no way to run a portfolio in the long run.  What will happen when home stop going up in value?  You won’t have any negotiating skills, which take time to develop and cultivate, and you will either waste time learning, continue offering way too much and getting into trouble, or not making any offers at all.

#2: A housing boom can make you focus on short-term profits  I remember when any investor with a pulse could get a loan to buy a rental property, often with no down payment and 100% financing.  Or, people would get short-term financing with ridiculously high payments, because they intended to (and could) sell the house for a profit in a few months.

So guess what happens when financing gets harder to come by?  Your whole operation will get shut down.  Or, you might buy several properties with short-term, expensive financing, but not be able to sell them OR rent them out, and then you’re stuck. 

#3:  A housing boom makes you too lazy to find private money.  In  my opinion, the key to success is to build relationships with private lenders constantly, so that you can always borrow money on easy terms no matter what your exit strategy.

So while a housing boom is great in regards to your houses’ equity increasing, the side effects are the 3 temptations I’ve listed above.  I recommend negotiating well and finding private lenders regardless of your market conditions.

Click Here: http://stinkymarketreport.net — In this FREE digital book, learn the secrets that a $100,000,000 real estate investor has discovered about making money in a slow market, by understanding how market cycles REALLY work.  Or, for info on Alan Brymer, go to www.AlanBrymer.com

Analyzing the structure of your deal with Filthy Riches

Filthy Riches is a concept developed by Real Estate guru Larry Goins of buying and selling distressed, low-end, and cheap, “dog with fleas” properties that virtually no one else wants which can be done in any state, and then selling them with a low down payment and carrying the financing for the buyer.

In this article we look at how this system works.

How does it work?

When you sell a property you will sell it with a low down payment and finance the balance. This is what makes low-end properties so easy to get rid of. A typical property that you buy for $5,000 will go right back on the market for around $30,000 with $1,000 down and you can finance the balance of $29,000 for 10 years at 11% interest and the payment will be $399.48 a month.

Now almost anyone can afford a $400 a month payment and if they are serious about becoming a homeowner then they can find the $1,000.

You can change the terms to fit your buyer, especially if they have more cash with a little less credit or maybe have good credit but not quite $1,000 to put down. You may have them put $500 down and finance the balance for 7 years with a higher payment. This will even give you a higher yield on your $4,000 investment.

Sometimes you will be able to get more down payment. For example, if you sell the property on eBay where the bidders are bidding n the down payment then sometimes it may go for $2,000, $3,000 or even $5,000 or more. Then you have nothing in the property. This is great for you and it is also a good deal for the buyer because they got to buy a property that YOU negotiated a steep discount on and they didn’t have to qualify to get a loan. If the buyer is an investor, even better because they now have become an instant property owner without qualifying for a loan and can fix it up and rent it out for a positive cash flow. This is a win-win situation for everyone!

As a general rule, try to keep it simple and try to keep most of your deals at $1,000 down and $399.48 a month for 120 months, which is 10 years at 11%. However never turn down a larger down payment.

Larry Goins is a coach, author, trainer, and real estate investor.  His critically acclaimed new course Filthy Riches http://www.FilthyRiches.com contains more information on deals for low end real estate for the real estate investor.  Visit Larry’s website at http://www.LarryGoins.com

Be An Ultimate Property Analyzer

By Larry Goins

Success in real estate is partially due to having the right tools and knowing how to use them.  I teach my students to maximize their time with tricks and tactics that make buying and selling real estate in any market a snap.

One of the most popular tools that I have made available to my Ultimate Buying and Selling Machine students is the Ultimate Property Analyzer.  Many property analyzers are big, slow and bulky.  They are difficult to learn to use and even more difficult to use rapidly while you are on the phone doing the deal on a property.  I wanted to find a simple program that we could use to quickly calculate how much we could afford to pay for a property.  But there wasn’t anything available.  So I had The Ultimate Property Analyzer created to help my students and I analyze a property quickly.  Remember, we make our first offer during our first phone call and this little program lets us do it with maximum confidence.

With the Ultimate Property Analyzer all you have to do is enter the repaired value of the home, use your pre-calculated closing costs and other expenses, and the program gives you an offer automatically.  You can even tweak the details around how much you want to make on the deal if you are wholesaling or retailing!  It really doesn’t get any easier than that.

Let’s say for example that we have a property with an after repaired value of $70,000.  70% of that ($100,000 multiplied by .7) is $70,000.  This is the dollar amount that my investor buyer would have in the property after all the costs are added back in.

I subtract out the hard money closing costs which average four points or $2,800.  Now I’m down to $67,200.  I also subtract out taxes, insurance, attorney fees, etc. and at an estimated $5050 that takes me down to $64,950.  Now I assume that the estimated needed repairs of $15,000 are accurate, which leaves me with $49,950 to work with.

Don’t forget your profit.  At this point you want to figure in how much money you want to make on the house.  Let’s imagine that I’m looking for a $5,000 tax free income off this property.  That means I cannot pay any more than $44,950 for the property.  We know that most sellers won’t jump on the first offer, without at least dithering a little, so I’m going to offer a little lower than that.  I always make an offer that is not a round, even number.  Say for example, I can safely make an initial offer in my first phone call of $38,780.

Why the uneven number for the offer?  It lets the seller know that I’ve done my homework on the property.  They perceive that I’ve got what I can afford down to the dollar. 

Also in The Ultimate Buying and Selling Machine course there is a DVD tutorial on The Ultimate Property Analyzer.  Its designed to teach you EXACTLY how to use it so that you can get the most out of it.  The tutorial is very short and sweet, and you should be up and running with The Ultimate Property Analyzer right away. 

Remember in our office we buy ten to fifteen properties every month.  And we don’t go look at any of them.  I know you cannot do that just starting out in real estate investing, but once you get rocking and rolling in the business you will be able to do it too.  Once you implement my UBM system and set up your own ultimate buying machine you will be able to buy ten to fifteen properties a month, too.

Once the system is implemented and the machine is in place, you can go into any city, anywhere in the United States, and buy and sell property.  Anyone can do this.  And I will teach you exactly how to do it in just a few hours a week.  Imagine using The Ultimate Property Analyzer to make ten or fifteen offers a month.  If you close 50% and do $5000 profit on each, that is an extra $50,000 in tax free money every month.  I know this sounds like a lot of rah rah and you probably wonder if I didn’t just roll out of an Amway convention.  But I cannot help but be excited about the system I’ve developed, the money I’ve made and continue to make, and the people that I’m teaching to do the exact same thing!

In our office we set up new markets every month.  Often times in areas that we have never set foot in.  For example, we just completed a transaction in Cleveland, OH (of Drew Carey fame).  It was our first deal in Cleveland.  We actually sold the property the same day that we closed on it and made $8000 without ever leaving sunny South Carolina.  You can do this too!

When buying a property, as I mentioned earlier, you need to be able to get into the deal for no more than 70% ARV (after repair value) including purchase, rehab work, and closing costs.  That is when you plan to rehab and sell to another investor.  But, if I am looking at a property that is an “Instant Landlord” opportunity – already fixed up or already in good shape, I can go up to 80% of the ARV.  I wouldn’t recommend going any higher than that.  You don’t want to risk getting upside down in your financing or your real estate ownership.  You want to leave a little bit of wiggle room in the event you ever need to sell quickly.

If you stick to the 70-80% rule, you will always be able to sell a property.  Now remember these are percentages that hold pretty true in my area.   Your location may be different.  Talk to other investors near you and do some research to see what the market will bear.  Also, if the property is already in good shape and doesn’t need any repairs, you can get into the deal without a rehab loan.  Therefore you could probably even qualify for a traditional loan up to 100% of the ARV depending on what your credit would allow you to qualify for.  Perhaps you could do this with no money down.  But, if your goal is to buy, fix it up, then re-finance and rent out, in most markets you will need to stay within the 70% ARV range.  Fix it up, then re-finance at 75-95% of the loan to value, and pull out your cash.

That cash is of course Tax Free as you don’t pay tax on borrowed money.  Then you can rent the property out at positive ash flow and have Tax Free cash in your pocket.

Let’s say that the real estate market where you invest is not necessarily doubling in value in a four-year span of time.  But it’s not crashing and plummeting, either.  Real estate markets like these range from rural communities where not much changes over the years (which I call “Mayberry”) to larger cities that are in between more drastic market shifts.

Regardless, if your market is one where values are just stable, or are going up or down too slowly to notice, then I recommend creating your own preferred combination of market strategies.  For example, you could decide to sell half of the properties you buy and keep half as rentals, while wholesaling any that don’t fit either bill.

Let me give you a list of strategies first, then you can pick and choose your favorites:

1)            Wholesaling houses – Getting a deal under contract and selling the contract to another investor

2)            Flipping Houses – Buying houses under market value and reselling for full price

3)            Buy and Hold – Buying houses to keep as rentals for the long haul

4)            Lease-Optioning – Like buy and hold, but you are leasing the house to tenant/buyers who have given you a large deposit and hope to someday buy it when they qualify

5)            Buying and Selling Notes and Paper – Not buying the property, but the seller-financed notes that are secured by the house.

Which market strategy or strategies you use will depend on your personal goals.  If you want to make as much money as you can in the long term, then it makes sense to buy and hold until you own them free and clear.  If you just want some extra cash without a lot of hassle, then wholesaling is for you.

Each of these has their pros and cons.  I would try each of them at least once and then settle on your own favorites, or combination of the above.

Click Here: http://stinkymarketreport.net — In this FREE digital book, learn the secrets that a $100,000,000 real estate investor has discovered about making money in a slow market, by understanding how market cycles REALLY work.  Or, for info on Alan Brymer, go to www.AlanBrymer.com

Commercial Real Estate: Asking the Right Questions

By Craig Higdon

There are many insider” commercial real estate secrets. One of the most important secrets is knowing the right questions to ask when investigating a commercial property investment. While I’m not going to cover all of the potential questions in detail, I will make you aware of some of the key issues. I’m also going to suggest some places to go for assistance.

Investing in real estate is a complex process. Unfortunately, far too many people jump into this complicated marketplace without the knowledge, training, and tools needed to be successful. It doesn’t help that we have hundreds of self-styled gurus” selling the latest no-money-down-get-rich-in-three-minutes programs to confuse and demoralize the un-initiated when things don’t work out as advertised.” These first-time real estate investors are often disappointed in the results they achieve and as a result, often abandon real estate investment entirely without realizing just how lucrative it can be.

Asking the right questions can greatly increase your probability of success, as can learning as much as possible about the world of commercial real estate. This is not an overnight process. One of the best place to start is to learn about your local commercial real estate market. In fact, being aware of the status of your local market can literally be half of the battle.

For example, when purchasing land it’s important to understand that the price of particular parcel varies according to a number of factors. These can include the relative abundance or scarcity of similarly sized and located parcels, the population’s growth trends for the area, and the proximity to good employers. Raw land buyers need to ask plenty of questions about such factors as local zoning laws, land use restrictions, utility easements, traffic patterns, other planned development, the permit process, and other issues. The answers to these questions can have a profound impact on the purchase price of the land and its final, developed value. Where do you go? Your city planning or building department is a great place to start, as is the local utility company. Also check in with a title company or active escrow company for contacts at the city and knowledge in their specialties.

These aforementioned factors are also important when it comes to buying existing commercial real estate, including retail, office, warehouse, and mixed use properties. Knowing the restrictions on building and use of property is essential to successful real estate investment, so investors need to learn where, how, when, and of whom to ask these questions.

One of the next best places to turn to for the answers is a commercial real estate agent, called a broker,” familiar with the area in which you have an interest. You can even ask the broker representing a specific property. But, when asking your questions of a broker representing a specific property keep in mind that he or she is working for the seller of that property, not you. A local bank loan office or independent mortgage broker are good sources to consult for alternative opinions.

Investing in commercial real estate isn’t too different from investigating a crime scene. You need to ask tough questions and find the evidence to back up the statements. It can sometimes be a tough process, but asking the right questions will only increase your chances for a profitable transaction.

About the Author:
“The Investment Property Insider” is published by Craig S. Higdon, a veteran commercial mortgage banker. He publishes the e-zine and blog, http://www.InvestmentPropertyInsider.com, for commercial real estate investors, developers, and industry professionals. Visit the blog and get this free report: “The 7 Biggest Loan Mistakes Real Estate Investors Make And How To Avoid Them.”

Double Your Income While Everyone Else Thinks That “Real Estate is Dead”

Everyone knows the current state of real estate. However, few people know the REAL state of real estate. Ghost towns exist where the next great subdivisions were built. No one wants to buy, and this is your opportunity.

Real Estate prices have dropped

No doubt, this is true enough. It seems that everyone is afraid of buying into real estate. Mortgages are also harder to get as the banks flounder in today’s economy. These are actually NOT negative circumstances, they’re POSITIVE OPPORTUNITIES!

Because so many people are scared to buy real estate, or fewer are able to, that means that there are nearly no buyers out there. This puts the seller in a bad position. They can only do two things in their situation: 

1. Keep lowering their prices until someone buys. Their sales will probably be at a loss to them.
2. They can constantly increase the bonuses and incentives for buyers. Again, this puts them in a progressively worse disadvantage financially.

Neither option is one that sellers want to use. Like everyone else, they want to get as much out of their sales as they can. The problem is they HAVE to SELL. This leaves them struggling, hoping, and pleading for SOMEONE to buy their property. This is a perfect opportunity for buyers to jump in.

What are the smart investors doing right now?

The smart investors at this moment are buying real estate like there’s no tomorrow. Since there are so few buyers, there is almost no competition at all. They may well be the only bidders on certain properties. Prices are LOW and benefits are HUGE. A bid of nearly any kind is a godsend to sellers. This is the very definition of a buyers market.

Last month, I saw a seller offering a duplex for the respectable price of $530,000. This property had been on the market for four months without any bidders. I submitted my offer to this seller and bought the duplex for only $430,000-a full $100,000 was slashed off the price in a few days of negotiating. That’s the kind of market I’m talking about.

Not to be outdone, my fiancé just recently found a property that she’s interested in buying. It’s a commercial property with two tenants and it has a lot of additional land available for another tenant. The collective rent each month is already at $20,000. If you add another tenant, we’re talking about a serious increase in rent. Right now, the property is sitting at about $2,800,000. With that price tag, the property is already a good deal with a positive cashflow. The interesting thing is that this property has been sitting on the market for over a year WITHOUT A SINGLE BID.

Now, here’s the real kicker. You’re probably not going to believe this-hold on to your seat-she’s thinking about offering $800,000. That’s right; she’s going to offer a price a full $2 million off the asking price. Of course, after sitting on this property for a year, what do you think the seller is going to do?

It’s time to change the way you think about real estate. It’s a buyer’s market, and if you’re not buying, YOU’RE LOSING.

Raymond Aaron,
New York Times Top Ten Bestselling Author, “Double Your Income Doing What You Love”

Claim your http://www.GiftFromRaymond.com to double your income. It’s free.

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60 Days To Your First Bargain Purchase
by Bill Bronchick
Finding good real estate deals is an art that takes time to master. Like any business, customers are what drive it. Your primary customer is the seller who is motivated to sell below market value. Finding motivated sellers requires advertising, marketing, salesmanship, and, like any business, keeping your nose to the ground.

Nothing happens and nothing matters in real estate until you find a deal. You cannot put together a deal without a motivated seller and you can only convince a motivated seller to do something creative or that involves a discounted price. A motivated seller is one with a very good and pressing reason to sell below market.

The most common problem new investors face is finding bargain properties. Many who start out in real estate investing quit without ever buying their first property. They go through the motions of looking for deals for a few weeks or months and then decide it doesn’t work. They forget that finding motivated sellers is similar to the salesman finding his first customer . . . it takes persistence and hard work.

Find the Motivated Seller

At the cost of sounding redundant, the concept is simple: find motivated sellers that are willing to sell their properties at a discounted price or “soft” terms. Currently, the real estate market in some parts of the country is hot, hot, hot! Many people are complaining that the strength of the market precludes investors from finding deals on properties. The popular misconception is that in a rising market, even the most motivated seller can find a buyer for his property at full market price.

The truth is, you can find deals in ANY market. Real estate legend A.D. Kessler once said, “There are no problem properties, just problem ownerships.” The definition of a motivated seller fits squarely within Kessler’s idea. A logical person knows that time, money and effort can solve virtually any real estate problem. However, some people are too emotional about their real estate problems or have other motivating issues to deal with.

Some of these issues include:

• Divorce

• Lack of concern
• Inexperience with real estate repairs

• Time constraints

• Death of a loved one

• Job transfer

• Landlording headaches

• Impending foreclosure & other financial problems

Farming Neighborhoods

Successful real estate agents utilize a technique called “farming” to increase their business activity. They pick a neighborhood or two and focus their marketing efforts within that area. You should try the same technique. Start with a neighborhood that is relatively convenient for you.

1. Drive the Area

Spend a few weekends driving around the area. The goal for you at first is to learn about the area, the style of houses and the average prices. Over time, you may expand your farm area, but stick with areas that contain the type of homes you plan to purchase. It is not necessary to begin your investment career by learning every square mile of a large metropolitan area; it is important to learn the value of “typical” homes in your target areas. This knowledge will enable you to make quick decisions about whether a particular prospect is a bargain.

2. Attend Open Houses

Visit open houses and “for sale by owner” (FSBO) properties on weekends. Speak directly with owners and their agents. Pass out your business cards. Make friends. Word of mouth and referrals are a big part of any business.

Part of the process of finding a deal is to know how to recognize one. Take a good look at the property and its physical features. After viewing a couple of dozen open houses in the neighborhood, you will get to know the value of the properties and the different styles of houses. When someone calls you about a house in that area, you will know the value by its description.

3. Look for Ugly and Vacant Properties

While you are driving around neighborhoods, look for vacant, ugly houses. How can you tell if a house is vacant? Look in the window! Of course, this practice may get you shot, bitten by a dog or arrested. First look for the obvious signs of vacancy – overgrown grass, no window shades, boarded windows, newspapers, garbage, mail piled up, etc. If you are not certain whether the property is vacant, knock on the door. If the owner answers, be polite, respectful and ask if he is interested in selling. In many cases, it may be a rental property, so ask the occupants for the name and telephone number of the owner.

If the property is vacant, ask the neighbors if they know the owner. Most neighbors are helpful, as they know “ugly” houses hurt their own property values. In addition, ask the mailman – they know all of the empty houses on the block. Leave a business card and write down the address of the ugly or vacant properties. When you get home, look up the name and address of the owner. Finding the owner of a vacant house can be difficult, which is why the persistent people who find the information make the most money. The name of the owner can be found by calling your local tax assessor’s office or by looking up the deed recorded with the County land records.

If you want to contact the owner, it takes a little more digging. Try speaking with the neighbors or asking the post office for a copy of a change-of-address form on file for the property. Online services, such as www.infousa.com, will search public databases, such as the Driver’s License Bureau and the Department of Motor Vehicles.

Some cities, towns and counties will “tag” a house with code violations. This is often a sign of a neglected or vacant property. Ask your city if you can obtain a list of such properties or find where this information is publicly recorded.

William Bronchick, CEO of Legalwiz Publications, is a Nationally-known attorney, author, entrepreneur and speaker. Mr. Bronchick has been practicing law and real estate since 1990, having been involved in over 600 transactions. He has appeared as a guest on numerous radio and television talk shows including CNBC Power Lunch. He has been featured in Who’s Who in American Business, Money Magazine, the Los Angeles Times and the Denver Business Journal. William Bronchick has served as President of the Colorado Association of Real Estate Investors since 1996.

The only saying about buying real estate investment property that we hear more than “Location, location, location, is that real estate always goes up in value in the long run.  After all, “They’re not making any more land.”

This, although true in most cases, does NOT mean that your best strategy is to buy and hold property until it goes up in value.  In fact, I don’t believe you should be dependent on real estate appreciating at all.

The reason is that if you rely on appreciation to make a profit, what will happen to you if prices don’t go up?  You make nothing, or could even lose money if values go down.  Just the closing costs you pay to buy a property would make you upside-down as soon as you’ve bought it, not to mention the closing costs you’ll have when you sell it.

The solution, then, is to buy in such a way that you do not have to rely on appreciation to make money.  In other words, create a rule that you will only buy properties far below market value.  I wouldn’t buy any property for more than 80% of what it could sell for in great condition, minus any repair costs you may have.

Right now, I can hear some people who are reading this complaining and griping already.  “But no one will sell you their house for less than it’s worth!  They’d have to be crazy!”  I promise you that not only can it be done, it should be done.

In every location and in every real estate market, there are sellers who just want to get rid of their house, even at a loss.  Perhaps you know someone who has been in that situation.  It happens all the time.  If you get good at finding these property owners, you won’t have to worry about real estate appreciation and can receive your profit from either selling right away, or buying and holding for the long run.

If you follow this rule, you will be far more likely to create large profits in real estate, both now and in the future.

Click Here: http://stinkymarketreport.net — In this FREE digital book, learn the secrets that a $100,000,000 real estate investor has discovered about making money in a slow market, by understanding how market cycles REALLY work.  Or, for info on Alan Brymer, go to www.AlanBrymer.com

Finding Motivated Sellers: Luck or Hard Work?
by Scott Rister
Did you just hear about the investor in your local RE club that closed on a deal netting them $15,000 and they didn’t even have to lay a hand on the property? Or what about the person that just bought that rental house on the same block for 30-50% less that what you paid for yours? Are you at the point of scratching your head and thinking they’re just lucky? Or probably that’s all they do and just don’t have a life outside of real estate….right?

Somewhere in between total luck and absolute sell-out hours chasing deals is where you should be in finding truly motivated sellers, or rather having them finding you. It’s a weird coincidence that the smarter I work, the luckier I get finding great deals. Did you catch that? It’s not always about how many hours you put into real estate and how hard you work at your marketing program that produces the best results which is finding great deals that puts money in your pocket and that’s what real estate investing is all about.

Let me share with you some simple principles in marketing for the independent real estate investor. You may already be in tune with some of these, but let’s all take a pulse-check here and make sure we’re on the right track.

1) What Are You Hunting?

I’m asking what types of properties and real estate opportunities are you seeking? The more narrow your focus and marketing efforts can become to a target group, the greater success you will experience. If you are seeking wholesale opportunities, then you will not gain very much success putting out “I Buy House/Lease Option” bandit signs next to established neighborhoods. In addition, you will not gain a favorable response direct mailing to preforeclosure prospects if the primary weapon in your arsenal is cash-only deals with hard money lenders that don’t go above 70% LTV.

The marketing medium you use and the message you accompany with it that hits the right target market turns sellers into motivated sellers. There simply is no generic marketing message and medium that is a “one-size-fits-all” approach in real estate.

2) Just How Much Money Can You Spend?

Now, we’re talking about something that hits home real fast when it’s about coming out of pocket with hard-earned money in the “hope” that it will come back to you in the form of truly motivated sellers. If you’re first starting out in real estate investing then it’s imperative that you have a short-term budget to work within so that you’re not forgetting about paying for all the other necessities in life: food, shelter clothing!

You simply DO NOT have to have a large marketing budget to be effective to grow your RE business. One §.34 postcard netted me §8,400, so it’s all about hitting your target market as explained in #1. However, be realistic about what monetary constraints you have and how to incrementally build your marketing program as you experience more and more success.

3) Track Your Results!

Oh, we miss the boat on this one so much. When you are incorporating bandit signs, direct mail, flyer campaigns, etc… it can start to get confusing where and if your success rate justifies the marketing mediums you are using. Tracking your responses and closures of deals is necessary so that you can identify areas that need to be tweaked or worked on. Most importantly though when you find out that great mailing list is really working or the flyers in a particular neighborhood is getting tremendous feedback….then go in for the kill! I mean when you are measuring success and can track it effectively it allows you in full financial confidence to justify increase in marketing expenditures for areas that are producing the results desired.

My hope is for you to realize that marketing to the real estate investor is the lifeblood of his/her business. Great deals rarely come knock on your door to find you. They find you when you have a marketing system implemented that is like a funnel prescreening sellers for motivation and directs them to then contact you immediately.

Alright. I know we’re in a recession, but for many people that means we’re making more money than we ever have before. However, if you’re just starting out and don’t have a lot of moolah (yet) I’m going to give you a few ways to get started with little or no money.

First of all, if you’re reading this you should know that you only want to do lease options, subject-to and wholesaling (all ways where we use other people’s money and credit). We don’t buy foreclosures because that means we would have to get a large private money loan or take out a mortgage from the bank.

Okay. Good. I’m glad that we’re all on the same page. Now, you need to figure out how you’re going to locate those lease option, subject-to and wholesale deals right? Well, it ALL starts with marketing. And if you genuinely have no money for marketing, here are a few ways to get going:

1. Driving for dollars- Drive around neighborhoods where you want to invest and write down the numbers off of the “for rent” signs and “for sale” signs. This is a fast and easy way to get deals and only costs gas money.

2. Craigslist.com-Yes, I harp on this one all the time. But it’s FREE. Email all of the “for rent” listings and “for sale” listings.

3. When you’re out and about running errands, hand out your business cards to everyone you can. Your dry cleaner, the guy at the gas station, the store clerk. Business cards are cheap……….network, network, network.

4. Car signs- Magnetic car signs only cost $50 for a set. And once you get them you can drive around with them on your car and advertise forever.

5. Social Networking- I will be the first one to admit that I’m not very technologically savvy. However, here’s my idea of social networking. Go to all of your REIA meetings and network. Then get on everyone’s email list, so when they have deals they will email them to you. Of course there are other ways to social network, but this is not my area of expertise.

6. Mailing Lists- You need to send out letters and postcards and I know that mailing lists can be somewhat expensive. Here’s how to get FREE mailing lists. Contact the Realtor® on your power team. Tell them you want them to email you absentee owners in whatever zip codes you choose (they come in 500 at a time). The only problem with this method is that you have to comb through each listing to see if it is quality (3 beds, 2 baths, not a condo, etc.). Then you have to take that info and put it into an excel spreadsheet. This is 100% free, but time consuming.

No more excuses for not marketing. The most expensive one on the list was $50. And do you want to know what the most successful people who are reading this are going to do? Okay, I will tell you, but only if you follow their lead. They are going to do all six methods. Successful investors have several irons in the fire because you never know where you’re next deal is going to come from.