New Forum Idea - New Investors: How to get started, how we got started, a Mentor for everyone, etc.

One of the best things you can do is try to netwrok with other investors and realestate professionals. A real estate invetsment club is a great way to do this. Look for one in your area. Attached is a link to one of several directories:
http://www.reiclubdirectory.com/

A good way to get started is try to build a buyers list. Then you should be able to do assignments or maybe even lease options. Once you have buyers and know what they want, the idea is to find the sellers and match up the deals. Good luck with real estate investing. Believe and Achieve! - Joe

Fear is natural and everyone experiences it the first time they may try something new whether its riding a bike or swimming for the first time. The fear is of the unknown. Once we try something it may not be as bad. We just have to figure out exit strategies in real estate.

The best way to get out of a real estate contract is to include contingencies such as "contingent on the approval of a partner" or "contigent on acquiring financing acceptible to the buyer". That way if it does not work out, you have "an out". The most important thing is try to have one or more exit strategies for each property you make an offer. If you find and lock up a great deal, the buyers should be lining up. Thus, if you know what buyers want and find it, things should go as planned. Another key is get your buyer's list built up and know what people are looking for. Once you do, things should fall into place. I hope this helps. Believe and Achieve! - Joe

Yes, the Fear Factor. That is so the number one stopper of Success. Did you know that "Successful People have Fear too, It just doesn't stop them." T. Harv Ecker

Having a buyers list is key, but even more important than that is knowing what those buyers want (locations, beds, baths, etc), what they will pay for it and how quickly and willing to act they are. Once you have that and have a healthy level of comfort that they will come through you are in good shape.

The second item I want to touch base on is making offers and not having them accepted. This happens a lot - DO NOT LET IT GET YOU DISCOURAGED. Sometimes you have to make 100 offers before you get one. I know that sounds like a lot of work it is, but once the system is in motion it gets easier. Additionally, once you have a team to help you locate properties and make offers, it gets easier.

Okay, back to doing a deal. When you know what your buyers are looking for specificly look for those homes specificly that will meet their criteria. When you find some homes make an offer....Make the offer (and or assigns) so you can assign it if need be. (Assignements are a second contract that pays you and removes you from the closing equation.) Also put in your offer contingent inspection by your partner (who is your partner, the Buyer from your buyers list or a handy man that has an objection for you). You'll know if your buyer is going to take it within a few days so that shouldn't be a concern being at closing. You'll have your exit clause being your partner's approval.

Hope this helps! Best of luck to you!!!

We are so on the same page - obviously, you're a genious

Since you have provided me with tons of info im sure you can answer this. When it comes to proof of funds if your using a private lender(partners father) how would you show proof of funds? Also if your partnering on the deal how do you write the Offer To Purchase contract do both our names go on it with and/or assignee?

When you are doing a purchase with a partner you put both names on the contract to purchase then &/or Assigns. I just did that with a bank this week. They questioned the &/or Assigns and I said we may assign it or we may just close under a new LLC that includes both of our companies to hold the property in. They seemed good with this explaination.

As for Proof of funds. If you are privately funding (which I've done with my own father's $), just get a letter from the private lender's bank. You do not need an actual statement from the account, just a general letter that says:

So and So has $X (whatever the offer amount is) in available funds. See if that will work. I have several letters from my father's bank that says that in different amounts that I used when offering on a deal.

~Andrea

As you can see there are a lot of great people on the DG.com website. We had the pleasure of meeting Chip and Andrea at Dean's live event last year in April 2009 in Arizona. They were so great at answering questions and helping the group. The great thing about the DG.com community is you can meet so many like minded investors and we all help, inspire and celebrate in others success. Good luck with your potential real estate deals and be sure to come back and share the updates. Believe and Achieve! - Joe

I love this site ! so much great information at your finger tips. I have to ask a quetsion ? in regards of a buyers list , if one does not have access to a REI group,what other options are there for creating a buyers list? Should I start my own? If so how do I began? Im sorry to be asking so many questions im just trying to get started.

I look forward to any and all feed back

Thanks
LawrenceM

Well Lawrence first thing is you should do is buy Deans books and read them they have everything you need to know in them!

I have Deans books and have read all of profit from real estate, and I'm about half way through your town your real estate profits. I bought the first book last year but I never took action. I got an email a few weeks ago about the new book so I bought it. I finally got on Deans web site and now WE've found the motivation to take action. My wife and I put an add on craigs list, were going to make sign's and I have found an auction to go to tomarrow. We have a real estate agent and a bank on our side. We have searched the internet and drove all over looking at homes. Making a list of witch ones we want to be shown. Were interested in doing lease with option and finding killer deals, but the contracts and paperwork is what scairs me. The lease option is'nt so bad but a double close or a reasignment of contract looks hard. Should I have my realitor do this for us? My wife is concerned that we may need a business license to do this. Does any one know? Thanks for your time. P.S. Were in Nevada

Welcome to the DG website, it is packed with information and inspiration. Congratulations for taking action with real estate. The DG.com website has a ton of information on building a buyer's list. Attached below are links for building a buyer's list that I believe are very helpful:

Dean's Success Academy Coach Jeff Jenson Building buyer's List Tips:
http://www.deangraziosi.com/real-estate-forums/marketing-buyers-and-sell...

Video by Dean on Building a Buyer's List
http://www.deangraziosi.com/emd/videm/buildbuyerlist

Conference Call with Dean and Jeff Jenson on building a buyer's list
http://www.deangraziosi.com/content/conference-call-tuesday-december-22n...

These links will give you enough inforamtion to start building your buyer's list today! Try to do a little each day to get you closer to your goals and dreams. Good luck with real estate investing. Believe and Achieve! - Joe

Congratualtions for getting Dean's book and taking action. In Dean's new book, Greg Murphy 's chapter (Chapter #4) really does a great job of explaining sandwich lease options. Dean had a live conference call with Greg as well. They discussed lease options in detail.

The link to Greg and Dean's the call is found below:
http://www.deangraziosi.com/content/conference-call-tuesday-march-24th-2...

The forms that Greg uses are found on the DG.COM site under "forms and docs" . There is also a link foudn at: http://www.deangraziosi.com/yourtown/gregforms

If you still want to walk through the first one, consult a real estate attorney in your area that specializes in real estate and is familiar with the process. Good luck with real estate investing. Believe and Achieve! - Joe

Hi DG Family,

My first post here, and I know there are team members working in Arizona
who may be able to guide me in what works best in this state.

Right now I am working on "Short Sales" but would like to know if "Find & Assigns"
are working here or not.

I have all of Deans books and this site is awsome so what ever information anyone can
share with me would be great. I'm looking to do great things in this business and share with others my success and failures to learn from.

Im 73 years young, retired from law enforcement, married 44 years to my more then wonderful wife with 3 daughters and 9 grand children.

I have a saying: 'Never let anyone intimidate you to have a bad day" & Keep your attitude in a high altitude , always think good of yourself.

Thanks Indiana Joe I will check it out!

When im filling out my Offer To Purchase when using a partner do both our names go on the line with and /or assignee if we are splitting things 50/50 or is there another way of doing this so we both can be compensated?

Both on the line is the best way to make sure both parties split the profits 50-50. I also like to do this as it will be reported the same way to the IRS from the title company. That way you do not have to do extra paperwork on your end to make sure you profit equally and are taxed equally.

Will there be separate checks for us at closing?

It depends on the Title Company. If you want separate checks, I would just request that from the Title Company. I'm sure they will do it, but may not think of it unless you ask.

ANd my guess is if we decide to keep it the property it will go in both our names. Once again Chip thanks for the info....priceless...placing my bids in the morning!

Thanks Joe , that was exactly the information I needed. You are truly a superstar. Now I understand the buyers list and will keep you posted on my next moves. Oh by the way what do you think about me starting a REI ? What steps do I need to take to get this started ? look forward to your feed back.

Thanks again.
Yours truly
LawrenceM
POCONO's PA

Thanks for the response. I am glad the information helped. I believe you are asking about starting a REI club? If so, the best way to start one is find other investors in your local area and start meeting informally for say coffee on the weekend. As thr group grows larger you can maybe do lunches or breakfast. I know of various groups that have grown large by starting small. Believe and Achieve! - Joe

Today Icalled a guy I worked for last winter,While I was unemployed. We were working for a lawyer. Basicly I knew more then my boss knew because I'm twice his age and have been In the construction buisness alot longer. I asked him If lance, our lawyer boss wouldbe Interested In buying some real estate for future investments.He said that was how they done business for for years. he would find the deals for the lawyer ,he would invest, and then we would do the remoldeling.But.....When I explained i was starting to become a realestate invester,he told me I couldn't find better deals on real estate because he had the towns assers office tyed up. Well,I Just had to ask one last question. I ask, what type of a lawer our boss was? Because if he's not a deviorce lawyer, a bankruptcy lawyer,a probate lawyer,and so on. I can find better deals,and much quicker! I didn't tell him I had alot more ways of finding motivated sellers. I just wanted him to know that he had some comitution. Needless to say he hung up on me.

Thank you Joe, i have been looking at your empowering conversation video, I was amazed at your way of doing business, and you are in a small town, it's increadible the success you are having, the only thing that holds me back is that by nature I am a thinker, I sit and think, think, think. i have read all three of deans book but i seam to be stuck on how i would go about aproaching some one to eiter partner up or join, you are right some of us here are looking for that how do i start question, I have spoken to a few realtors, but they are all nay sayers, i have spoken to a title company who does not deal with Investors LOL <--That surprised me, i have tryed to talk to the REO dept at the banks they all send me to a Realtor they use, its been though to start, but i will not give up, Real Estate is the way to go!!!

Thank you Joe for all your time and efforts to make DG.com a better place for all of us.

Luiz

Well I finally did it! I joined the academy after a week of thinking about it. What brought me to my decision to join was, i have been trying all the things i read in the book and i am so close to my first deal. I put 2 offers on property that out-of-towners inherited. When i submitted my offers to the realtors my offer contract was all wrong. Well at least i tried but they said they will work with me to get everything on the up and up to submit the offer. I felt like such a rookie. So i believe i have all the right intentions and drive just need a little coaching, so i decide to join the Academy! The way i work is i can read all the books i want but til i go threw it several times i just wont get it. I hope i made the right decision in investing in my future by joining! I am so excited i start tomorrow at 1:20 et i cant wait, Looking for a brighter future in a world that seems limitless. So if anyone out there is either goin through the Academy or has already can you share your experience so i know what to expect. I hope to hear alot of great things!

Congratulations for joining Dean's Success Academy. I had an opportunity to meet with several of the coaches in person and at the Gain the EDGE 2009 event. They are very dedicated to helping students succeed with the program. Like any program it takes committment and effort on your part but the coaches and staff are there every step along the way. I know of many other DG students that have also had a tremendous experience amd success with the program. Congratulations you made a great choice. Believe and Achieve! - Joe

Hey mehlich1,

Congrats - this will turn out to the best decisions of your life. A doctor or lawyer just doesn't become a lawyer they get training first. The Academy provides a first class education and wonderful support along the way for your first deals - just keep the energy going!

Now is as good a time as ever to tell you about our next set of deals...

We continued to read Dean's book after our first $4400 and joined the Academy to get the tools needed to be successful. We wanted to be able to do more and do the deals on our own not just introducing 2 parties. Our best approach to start a deal was always to network - tell everyone that we are Real Estate Investors and looking for deals.

A friend introduced us to a hedge fund (which we've done numerous deals with since then). They told us about 2 townhomes they were about to foreclose on in MN. They told us we could make an offer. We did some research on prices in the area along with what the rates were for the area. We felt the properties were worth around $150k so we decided to offer 50% of that. We offered $75k each. The bank countered back with $80k. We wanted them to help with closing costs as we had very little $$$ so we agreed upon $81,600 and they would apply $1,600 for each closing.

We tried to do traditional financing, but found out that we had to put 20% down. We didn't have 20% to put down. With the help of the Adacemy and Dean's Program we decided to "Think a Little Different." We asked a family member to loan us (private money) the down payment.

So now we've negociated a short sale and used traditional financing and private money to close on the deal. Meanwhile we found a property manager to help us do the final rehab items to get rent ready and get tenents moved in.

After 90 days (back in the good old days), we were able to do some cash out refiance. With the cash out we were able to pay back the private money and still put some $$$ in our pockets. Not only that the properties still cashflowed each month!

This is a great example of some of the skills and strategies the academy will teach you. We used at least 5 stategies for these 2 properties and are still benefitting today. Trust me while we were working through it we probably made weekly calles to the Mentor line. They were always great supportive and gave us a different perspective. A lot of the time we already had worked out the right answer based on the tools in the program, but sometimes you just need someone else with the experience to agree with you.

I have came to the conclusion that success in 2010 will not be by accident, It will be on purpose and it does not matter how many no's or dont know's. This is what you do right? House's are still being built and sold. And unfortunitly people are still losing home's, bank's cannot afford to hold on to them. And then come's Luiz or Joe,or Lawrence,or Dean ! I had a man tell me once that luck is when preparation meets opportunity. Are you prepared for your destiny! I believe you are or you would'nt be here. So for every no there is a yes , and for everyone that say's they can't there are two or three that can and will. There just waiting for you.

Be blessed. Be determined.
LawrenceM
POCONO PA

Good luck with real estate investing. The opportunities are definetly all around us and now is the time to take action. You can do it. Believe and Achieve! - Joe

I have found with lease options or bank owned REOs, usually the seller is highly motivated and they are often anxious to just sell the property. Each seller and each situation is different but do not let good credit or a POF letter stop you. Greg Murphy had done many lease options with out any money or credit. Good luck with real estate investing. You can do it to! Believe and Achieve! - Joe