TRUE no-money investing, please help!

Hmm...I don't know if this is going to help, but I hope it does in some way.

Concerning the subject of finding investors. There are a few ways to find them without spending any of your money...namely craigslist and backpage.com. They're both free to use and posting a few ghost ads will only take a few minutes of your time. Using just those two sites, I found over than 20 cash buyers in my area in 2 weeks.

If you'd need a telephone number to take messages from people seeing your ads, get a Google Voice number, which is also free.

As for putting properties under contract. To my knowledge, you don't need to put up earnest money at the very beginning. You may need to give the seller cash to show a promise, or confidence, concerning the contract to make it legal, but you can do that with just $1 or at the most $10. When you find a buyer that says they're interested in the property, ask for a $2,000 non-refundable deposit. Use $1,000 to act as earnest money and pocket the other $1,000, using it as part of your final assignment fee. However, if the buyer does back out, you get to keep the money, so your time isn't wasted.

You can always pair up with a wholesaler that has a ton of properties, but no buyers. He or she provides the sellers, while you provide the buyers, and the two of you split the profits.

If you do want to contact sellers directly, you can always get the properties' addresses, look it up via your county's accessors website to see who owns it, find their names in the yellow pages, and call them asking if they would be interested in selling. Or you can always write them letters and put your name as the addressee and their names as the return address, so you don't have to buy stamps and the letters are "returned" to them But I don't recommend that, so we're just going to act like I didn't say that >.>

Here is an example of making $10,000 in three hours using a $100 earnest money deposit.
Find motivated seller that will sell his/her house at 65% of ARV minus repairs, get it under contract, no realtors involved. Turn around and assign the contract to one of your waiting cash buyers. Take the two contracts to the title company and collect your fee at closing.
I do this all the time, making $5,000 to $20,000 per deal!!

A couple of tips, These are statistically proven. Face to face contact is WAY more effective than any mailing campaign. We find 90% of our deals door knocking.
Go to every REI meeting you can find, Network. Once again, WAY more effective than mailing to buyers.
Determination and persistence are key. Many people have been in your shoes but were determined to make it happen no matter what. They worked 2 jobs, set their alarm for 3 AM and studied because that was the only time they had. They took the 1 day off a week they had and made offers, door knocked, phone calls were made ETC ETC.
They were persistent. They made no excuses. They flat got it done no matter what.
They represent the 2% of the population that can do this business. The other 98% sadly don't have the heart or the brains to make it. This is another statistically proven fact.
Are you in that 2%? Or should you just go twist some wrenches and quit?
Sorry if this sounds harsh but it is reality. If this business was easy everyone would succeed. Cheerleading and waving pom poms won't help.

Michael Mangham
MD Home Acquisitions LLC

I got to tell you I feel where you are. I am an appliance tech and I work for myself. Right now I am trying to get a deal done and I need hard money or a lead for a assignment...all these seem to cost money. I do know that property can be bought for no money down tho..I have a rent property and mine that I walked into no money down. I found a wrecked house and talked to the owner while he was closing with the bank. Made him an offer to take it as is and just let me take the down payment and fix it up rather than give him the down that he would have to spend anyway rehabing his self. He said ok and gave me a reasonable deadline to get this done. I imediatly found a camper trailer for $500 for sale and made a deal to pay it out ($50 a week) I put this trailer behind my house and hooked it up to my electric and water (under cover) rented it for $85 bills paid. I took the money from the rent and rehabed while I paid my own note which was cheaper than renting. I had to sacrifice comfort for a while tho. The toilet was actually leaning on the tub and we had to walk on the floor joist parts of the floor to keep from falling thru. Now that house and same camper pay for theirself and my new house I got also on an owner finance the same way.( it needed rehab) I am still broke tho..LOL...but I am building equity while using the sellers money with the owner finance and the renters money to pay the seller. Keep your head up and take just 1 step! you can do it and I promise you this, you and I will really appreciate what we have when we get to the other side. Joe

Jason you absolutely CAN do zero money out of pocket deal. When I closed on my first property I had about $13 in my account. No kidding. I did it no money because I had no money and refuse to let money stop me. I had placed $24 in ads (4 @ $6) in my local bulletin board. Went through a bunch of nothings to get something I could pull a wholesale out of. Extremely motivated seller carrying 2 mortgages. It was a 2/1 in low end area. Out of town guy purchased in an area he had no clue about. Started working on property and decided it wasn't where he wanted to be (purchased on owner finance). THEN he goes out and purchases a second property in the East side of town (higher ends). So he was struggling to carry both plus his car payment, etc. he paid a decent chunk down and only owned $7k on the property. I pulled #'s after initial contact is was in the $40k range if I remember correctly. Went and looked at it needed cosmetic and two windows, plus a bit of landscaping. I asked him what he would take cash, and he said if you can just get it off me, you can have it at what at I owe ($7k). I always carry contracts with me in my car. I locked the property up on-site for $6,950.00 and put $50 earnest money paid at close. So total due was the $7k. I literally told him I had to step outside and make a call (because it was an owner finance, title was not in his name) I called the Success Academy to ask them what the heck I to do. They said EM was fine and if the deed was recorded in his name, it was good as long as the person on title would release at set amount. He had a Warranty Deed recorded in his name and approval from owner to allow a clean title at $7k. So all good right? It was. I came home and uploaded and posted this property to about 40 different sites (free). I started calling local buyers on list. It was a Friday afternoon, so got a lot of vmails. Had the property posted by about 10:00 p.m. It was under contract with a CA buyer (never communicated with until then) on Saturday morning. I scanned and emailed the PA and assignment of contract to him along with additional pics and punch list for rehab. He signed and returned to me by noon. I was so excited and (dumb) I didn't even get EM from him. LOL I did market this as a quick sale. I told him when we talked Saturday morning I would do the $9k if he could close in a week. He agreed. Monday a.m. I started calling title companies and they ended up pointing me to the attorney that handled my close. Title was clean took 3 days to obtain the abstract, etc. We closed on Friday. Me, seller and owner were there. Buyer wired funds to escrow account, My seller and buyer split close. Close took about 15 min. Because I had EM due at close I left the table with a check for $1,950

buyer was excited, I was ecstatic and seller hugged my neck at close. lol I remember calling the SA and telling them OMG, I am now a REI!! No longer just saying it.....hahaha!

Stay focused, stay strong, stay motivated. YOU CAN do ANYTHING stinking thing you set you mind and heart to!! Don't let anyone tell you any different! Where there isn't a way.....MAKE a way! I have literally sold everything of any value to get funds to do what I need to (marketing, eating, or not eating, you name it). Because I KNEW it was only temporary! I KNEW I would get it back 100 fold!

You're right not every deal is completely nothing in it. You will find those if you are in the trenches. But you have to be in it they want fall in to your lap while watching tv.

If nothing else, maybe my 'poor little first deal' will give you hope. You have to start where you're at. You have to start somewhere. Bottom line you just have to start! LOL BUT it was an AMAZING accomplishment in my mind and completely shifted gears. I had gotten a taste and could never go back!

to go from $13 to $1,950 was air! I still refuse to let money stop me.

All depends on how bad you want this! It will determine what you do.

Everything we currently are/have is based on choices we made, everything you will be/have is also based on choices we will make.

God bless,
Jen

(and gals)That was pretty motivational, it got me going! I need to start getting in some kind of action myself. I really appreciate all your comments. Silverhound(WHAT BOX?)

you need to read Carol Stinson's story... she started without a dime...
here's one of her links; on her link you can check out her website-great info...

http://www.deangraziosi.com/real-estate-forums/everything-else/54110/car...

Send me a PM with your address and I will send you my DG book.

Wishing you success,

Valerie

Some replies:
Mouse: very good ideas!! I didn't know about that backpage site! Thats the sort of ideas I'm talking about! If you have anymore, let me know...
michael: Actually, the letters were for gaining OPM. I have some ideas on getting actual buyers, one of which is dealing with my old landlord, which is also a very productive realtor. He said that he would help with finding a buyer for any house I throw at him, so I don't have a problem there. And other than posting ghost ads, those are my only ideas so far... But your poignant (sp?) comment rings true with me, and I believe it. It's either turning wrenches, or REI. I make the call. Also, as for networking, there is no REI group in my area, which is the Omaha, NE metro area. Closest one is KC, MO., and thats a different market than mine clearly. I don't know if my area is just a bad investment area or what, but I just cannot find any support here. If you know of a central database, or some ideas, to prove me wrong here, let me know please.
j.m.: thats some trench work definetely! That gives me some inspiration....
keb64: again, good inspiration, but that still seems like a one in a million chance for it to work out so well like that
bamagirl: do you have a list of these 40 different sites? haha!! seriously though...other than craigslist, i haven't a clue...
valuni: great info, and I will pm you here in a sec with my address. Thank you so very much in advance for sending me his book
After reading all these replies, they have really inspired me to get this party started. There are so many properties out there in my area that are in various states of disrepair, or financial ruin. I need to start on those before someone else does.
Thanks again, and keep the ideas coming please!
Jason H

I have been in survival mode for almost 2 years now and man does it get old. I get $385 a month on TANF, and food stamps. I cannot work due to an injury 5 years ago...of course Social Security says I am not disabled enough for assistance...We all have road blocks. As Dory says in Disney's Finding Nemo, "Just Keep Swimming." So, I do what I can, when I can. Please Jazon12-do NOT let life steal your dreams or your momentum. Put your focus on finding ways to make it work. Small steps may not get you there fast, but they will get you there.

I know with myself, it has been very easy to get caught up in the learning-There is SO much information out there. I have had to simply decide to stop studying exclusively. I need to take action, so I have. I am having trouble finding local buyers-and can't afford to join my local REI club, so i placed free ads on line. But have had no interest. So I joined several on line sites. We will see what that gets me.

Keep asking questions too. I know I do:)

While I have found several roughs, no diamonds yet. The beauty of wholesaling is you never own the property so you don't have to pay anything, which means none of my own credit, job, assets or anything plays into the equation. I am looking for the current address for 14 different abandoned properties in my small town. The tax records show most of the addresses as the same as the empty property. I am stymied since I have no idea where to go from here. The yellow pages site gives thousands of names nation wide for the name I type in...I don't yet know where to look further...But I will not let that stop me.

If there are none in my area that I can by low low then I will have to look in other states. I just keep moving, looking for options that might work where those I have tried have not worked well.

Someone posted a novel idea here once. Put a For Sale sign in the front yard of the houses you are looking for the owners of with your phone number as the contact. Hopefully, the owner will call you to find out what the heck you are doing!

here's a good starting point for sell sites.

http://www.deangraziosi.com/real-estate-forums/marketing-buyers-and-sell...

Not included on the list, but I have some of the most success with is VDF (Virtual Deal Factory). I've moved several properties through this site.

I now use SFL to blast out to multiple sites and buyers list in one effort. But still have about 10-20 or so I manually upload to that aren't included in SFL distribution list.

hope it helps.
Jen

haven't seen you around, I hope it's because you're busy reading the DG books or better yet, because you are out there getting some deals done!

don't give up- rei is not easy! but you're not alone in this; we are all here supporting each other!

Learning and progressing every day,
Valerie

I kinda got a kick in the rear to get started on REI; it was either get started making deals, or get started living in a van down by the river!I may be layed off my job at some point in time soon, so I had to get going. Right now, I'm combing through the MLS for homes that have been on the market for 90 days or more, and that have had a price change recently. I then call the agents representing the 20 properties, and lowball them. Every day, I call 20 different agents, and have been doing that for two days now. So far, it's either been not enough to satisfy the mortgage outstanding, it's a short sale (id be a popsicle in the van down by the river before a short sale passed through! ), or the owners are content with waiting until a year from now to finally sell the house at their outrageous price. Trouble is, houses are selling around here for list price or slightly less usually. Thats another response I've been getting; that my offer is far below an already pending offer on the table. Average time on market for homes here is about 140 days to get list price or close to. And, list price is close to assessed value in most cases. I have a few agents, however, that have a few properties that are for decent prices, but they are foreclosures, and from what I have heard/read, banks are not excited about contract assignments.
I'm not going to quit, however, I'll do this on McDonalds wifi if I need to just to get something done. But, I have this suspicion that I'm going about this wrong in the market I'm in. Any suggestions?

you're working hard! even if your offers don't get accepted, just doing something every day helps you learn something.

You need to put up some bandit signs!! get a google voice phone number that directs the calls to your cell. Use that number on your bandit signs. Get a yellow cardboard from the dollar store and a black marker and write this exactly:

WE
BUY HOUSES
ANY CONDITION
PHONE #

When the sellers call you, find out everything about the property, go look at it; if they are willing to sell at a low price, put it under contract.

Start putting some ghost ads on Craigslist so you can build your BUYERS list! (you can use a friend's house, put up some pics, just don't put in the exact address)
When they call you, get their info, and ask if you can contact them when you find a great deal.

Then all you will do is put your buyer and seller together, and get your fee in the middle!

You can do it!
Valerie

Bandit signs are expensive; heck, the stakes for them are expensive! Well, expensive to me, I got about as much extra money as the homeless guy panhandling by the Interstate exit!

I already have ghost ad's put up on CL, but I tailor them to the area I had placed offer on property there. Similar price, amenities, this gives me an exact idea to see if the area can be sellable quickly. If I don't get any good relies in a week, I walk away. I already have a google voice number, and have the blackberry app for google voice.

In my world, I gotta move fast, any money I can get is more than what I had. And if all I get when I walk away is 1k, well, now I don't get evicted!

I ain't assigning to get rich, I'm assigning to survive. Later on, I will get deep into REO's, sandwich leases, and private money.

Now, get crackin'!

I like you Ha...
ok, so you're trying to build your buyers list-that's good...
Try calling 'for rent' ads; you can find buyers who like to buy and hold properties. This would be the kind of buyer you would like to get for your property.
Find out how much the house would rent for; then do the math to see if it will have positive cash flow for buyer; (monthly rent-mortgage-taxes-insurance-maintenance= ?)
it may work, and as you say, even if you get a 2K fee, it'll be enough for now...
Val

Calling for rent ad's? Priceless!
That I will definetely do, I may go through ten-twenty-thirty people before I hit on someone with deep pockets, but they are in the area. A simple CL search shown many houses of this caliber renting, and these homes are not beat-up. Usually for over zestimate...
I think I'm gonna move on this, and get something going. Making it happen tomorrow...

I can feel your positive energy!

I think you are onto something! make it happen!

Also, find out who owns the rental properties near the house... they may want to buy another property in the area?!

keep me posted...

To jazon12, Valuni & Jen Gray (also the other contributors to this thread):

Problem: money (just used the $20+ for Dean's book). I know that Sucess Academy returns your enrollment when you make that 1st deal. But what about up front? Who do we go to for the Success Academy/RBBP-type of technical questions or what do I do next when my seller's in front of me willing to sign the contract? I'm flat out broke & paychecks tied up on J-O-B (just on bills)? I need to do this because I have to. I took a stab at it on an FSBO & just got flustered on the phone when I asked the lady seller if they still had a mortgage on the house & her door-slam answer was what did that have to do with buying the house. I was a deer staring at headlights & just told her, OK, I'll call you to schedule a viewing of the house since it was a rental. Drove by the property 2 weeks later & the FSBO sign was gone... I let it slip away due to fear.

I have read so much on this from the DG Superstars who have given little tib bit on all that sound good. I know my big start begain once I joined a realestate club in the area. I just attended a couple meeting an over time I just listen to who had influence in the group and who were the movers and shacker. I felt it was time to introduce myself. I told each advance investor who I was and were I was going in realestate. Some took me serious and some didn't. My point is we had no money to play around with so we worked bird dog for investors and soon learned how to put contracts together and then started learning how to put subject to deal together and move property for other investor who were looking for buyer. The new buzz is owner finance sellers. Investor with home offering owner finance. They are just looking for buyer who need finance. We find buyers for these deals and get paid. No money out of pocket, just time. Nothing for nothing leads to nothing. No money down. Our subject to deal cost $ 1.00 to seller with a sign contract to buy there home. Once you start making money get someone to coach you and thats when things take off. They will get you pass your (FEAR).I was not broke but I had no money to just give-away. P/S Thanks to DG family sharing with us all and Deans books and people like Carol "Freeindeed" and Greg murphy. I can get carried away talking. Get a dream bigger then your problem.

This is an example of how you learn this business. You make a mistake or don't have an answer. You learn from it and don't make that mistake again! You could have asked her, what do you need to get out your house? You can get into the mortgage aspect further along in the deal. Every seller is different so do A LOT of listening at first.
So, be diplomatic, meet the seller and establish a relationship while looking over the house. Talk about their family, hobbies, work etc. If they like and trust you they will do business with you.

As for the Success Academy, it is 5 deals to get a refund. I enrolled and got to work. Great education and coaching help!! It took me 6 months of hard knocks to get my first deal and then 30 days to get the next 4! I got a full refund just as they said I would.

To be successful in REI one of the key ingredients is PERSEVERANCE! Keep at it, get back in the game after each setback. Use it as a learning experience.
Another key is DETERMINATION! Don't let anything stop you! If you don't have those two attributes this business is not for you. You will just have to continue whining and go to your JOB. YOU must MAKE it happen and it won't be easy. Are you up to it?

Michael Mangham
MD Home Acquisitions LLC

not everyone who has succeeded has joined the Success Academy, and not everyone who has joined the Success Academy has succeeded; check out Carol Stinson's thread below; she did it with DG's first book.
http://www.deangraziosi.com/real-estate-forums/everything-else/54110/car...

As far as th RBBP, check out this thread:

http://www.deangraziosi.com/real-estate-forums/everything-else/86517/30-...

Everyone here is sharing exactly what they are doing after joining.
REI is not easy! It takes perserverance. Remember what DG said, for every 'no' that you get, you're getting closer to a 'yes'

Whenever you have a question, just post it hear and it will get answered! if it doesn't, post it again and again until someone reads it and gives you an answer.
Some of the Success Academy coaches come to this site as well and provide their advice.
There are many experienced investors here who have already been through what you are going through! and they are here to give you their advice as well!

I have learned so much by just taking action, and with the help and advice of other investors here. I am learning every day; I put in the hours! I work hard at it-every day! I don't mind getting only 5 or 6 hours of sleep every day, because I know it's only temporary... I will succeed in REI! You can achieve anything you set out to to; you have to make it happen! nobody will make it happen for you!

Learning and progressing every day,
Valerie

Valerie, Michael, Ed & everyone on this thread:

Thank you for the words of confidence & the offer for help.
I will take you up on this adventure. I'm slowly taking steps
on the road to learning. Rich Gotcher (REOguy2000) has
been helping me with starting out. He's been my REI angel.
I'm hoping that we can get some offers accepted soon.

I apologize for the delay. I didn't want to come across as
being ungrateful. It took me a while to figure out how I
can get back on this thread until now.

Thanks again & God bless you.

-john

Jason, I can see good things about you. It doesn't really sound to me like you are whining or making excuses, but are really looking for sound principles, since you have no money down. I also see your passion and the fact that you seem to know enough to do REI investing. I see your determination and the fact that you take care in spelling and communicating your ideas. The only advice right now I have is to keep doing what you are doing, and to fill out your profile on here, so others can find you and know you are a serious investor. Also read everything you can on here and you will be a success! We are rooting for you!!

Hi Jason Can we say your kind of at the bottom, well most of are thats why we are here we are willing to work to find a better way an so was Dean at one time an thats why he is where he is at today an thats where we all are headed "UP" most of us bottomed out but not out of this race for a better way. Get over the "CANTS" an start to look for the "Ways YOU CAN" remember when we were small we never said cant we always had fun finding the way to over come an loved it, you must have falling when you were young( an still are young)did you quit "NO" or you would be still there, you have the GREATEST GIFT TO MAN YOU MIND, ITS THE BEST COMPUTER EVER DESIGNED, USE IT DONT WASTE IT.FOR GET THE CANTS AN HAVE FUN WITH THE CAN, "THERE IS AWAY AN ILL FIND IT".Get out the ladders an the ropes because it is time to climb an you have some wonderful feed back here from the DG FAMILY we know you can do it an we are here backing you up now thats what real FAMLIES DO.Hey Jason Iam homeless living out of my Truck an Iam having the time of mym life an IAM making things happen each an every day an I thank the all mighty God that I CAN STILL GET UP EACH MORNING TO A NEW DAY OF I CANS an so can you , have an awesome day my Friend we are on our way up, Jim

It's good that you are going through the MLS, don't quit you will eventually find a deal. Matt Larson says his best deals come not through the MLS, but from For Sale By Owners. FSBOs will usually be more open to creative financing and stuff like that. They don't care how they sell their home as long as its legal and quick. On your way to and back to work, pass through neighborhoods and get numbers from FSBO signs, check newspapers, find the owners of vacant homes and call asking if they would like to sell. Keep up the hard work! As Anointed1 says, Start where you are! Use what you have! Do what you can!
Good luck! Someone once said "If you will do for three to five years what most people won't do, you will do for the rest of your life what those people can't do".

RENinja

Partner with JV's, if you don't know of anyone, start talking to everyone you know and make the connections - get your ideas out there. Go to REI clubs and network, you will find buyers, and if you network enough you will run into someone who likes your ideas and may be willing to partner with you. Maybe they have the money, credit, or connections to those, so you can work out a partnership where they cover that end and you do the work.

You may even run into an investor trying to pay it forward who will mentor you, or even JV with you to get some deals done. Maybe they will point you in the direction of someone looking for someone to work with.

There are opportunities everywhere, but the best thing you can do for yourself is push aside the fear and doubt. To make it in this business you have to be aggressive and never give up or back down. Keep plugging in until you get it going.

The best thing you will find is by networking. Tell realtors you are an investor and can close quickly, they may send you deals no one else would know about. Carry business cards - hand them out to everyone. You can get print at home cards and there is a link on this website that has free templates if you need it. If you hand out cards - you might find people will call you off the hook because maybe they want to get rid of their house and don't know who to call - many people would like to sell quick without being tied to a realtor.

Get out the phone book and mail letters to people letting them know you are a local investor and if they or anyone they know would ever like to sell their home to please give you a call. Use a yellow legal pad and a red pen. That should get someone's attention for sure.

...but have yet to make any money. I am doing a math class right now online, and I do this on sunday and monday evening. After I'm done with math, it takes me some days to get back to REI, or in my case, a few weeks.
I had some offers on the table, but after talking to my agent, he suggested that they would not be a good buy. It's so much work making an effective and promising offer to these people! It has to be enough to take care of the existing mortgage, yet low enough that it can be assigned over to another investor successfully! This is exactly what has been getting me down. I feel like I missed the boat in my market, and I'm just not going to succeed unless if I invest in a hurt market, like Indy or Chicago. Which, being as I'm still new at this, is sure to set me up for an epic fail.
Any thoughts?
Jason

Hello Jason. See the PM I left you. Or contact me via my website.