I get this at every seminar. Seems it’s everyone. Every beginner really needs to make money quickly. Although, I like to teach people to buy and hold and take the full advantage of real estate, I do have ways to make money quick in real estate investing. Ways that don’t require your money, virtually no risk and without using your credit.

Here are some steps you could do in the next couple of weeks.

If you’re going to make money fast, you have to decide to do it. I’ve set $20K, $50K and $100K goals in the last several years, attached short time periods to them and seem to always hit them. A mindset of not being denied is needed.

Most of you will need money to run your real estate business. Look, you can buy houses with no money and no credit. But if you want to find houses without money you are limited to manual labor. That’s ok if you have no money. You can call ads, drive around looking for vacant houses, and look on a number of internet sites. Having a small amount of money available to get a website going or to do some marketing will always help.

Internet Marketing reduces your advertising budget significantly, but there will still be some expenses with some of the other marketing strategies.

What can you expect? First, let’s say you want to make $15,000 in the next 30 days. I know, that might seem like a lot, or it might not, but let’s say you’re going to go for that. Or, let’s even say you want $90,000 in 6 months. That’s $15,000 per month for six months. Now, how do we get that?

#1 – if you’re going to use no cash, no credit, what strategies should we use?

#2 – how can we find deals for little to no money?

#3 – what kind of sale will we make, or exit strategy will we use if we don’t have much money to advertise?

Okay, #1, let’s get an index card out and write $90,000 in 6 months on it and post it where you’ll see it every day. The bathroom mirror, above your computer, in your pocket, or put them in all those places. It has got to be foremost in your thoughts — everyday.

Then we’ll need to set the steps needed to get there and commit to those: offers, appointments, and calls to motivated sellers.

Example: “My goal is to buy 1 house each month for the next 6 months and assign them all for a minimum of $15,000.”

That’s a start.

However, if you need 10 offers to buy 1 house and to make 10 offers you need 100 leads and to get 100 leads you need to spend $300 then you might have something more along these lines.

See, if you know what it takes as far as the steps are involved, you can concentrate on the little things that will get you there, the step by step, daily actions. I don’t normally set goals on a per house basis. My goals are that I usually want to net $50,000 in a month. I don’t care if it comes from just one short sale, as long as it comes in.

3 strategies for quick cash

Wholesaling, of course, is your #1 top strategy to bring in cash quickly.

See Jim Fleck

Wholesaling is a way to get cash. I use it for cash flow. I use it to fund things such as, business growth, bonuses, toys, etc.  I also have long-term investments that can build long-term wealth.

You however, need some good quick deals that don’t take cash to buy, or need refinancing which might need credit. Unless you have some generous private lenders, you need an exit, which doesn’t require cash. For the sake of this newsletter and this plan, I’m going to assume you’re not going to use your credit either, for whatever reason.

You need deals you can flip quickly without having to close first. Likely, assigning the contract will be the best option. The beauty of this, is when you’re looking for investors to assign a contract to, you’re building a buyer’s list for the next transaction.

Get cash from a new or existing deal is strategy #2. Many investors never think of this. All of my private clients do, I’ve taught them over and over to watch this. If they need cash, they get it at closing. It’s easy… get a good deal at, say, 50% LTV, then finance 70% on a first mortgage, and put the difference in Hip National Bank. Buy property for $50,000, $5,000 in repairs, refi at $70,000 and $15,000 goes in your pocket. This money can be used for holding costs while you’re trying to sell, when you’ll make another $1-$20,000. Yes, it might take cash and credit, but not necessarily… more in a moment.

Put a 2^nd mortgage on a new or existing deal. Like the previous strategy, we take money out of a deal. We can put a 2^nd mortgage on a property and take the LTV all the way up to 85%. In the case above, that would be another $15,000. You can borrow a higher LTV on a 2^nd mortgage. Never over finance the property. 85% is the highest I’ll ever go with a 2^nd.

Ok, so now you’re saying wait, he said no money and no credit. Don’t get your underwear in a bunch; I’m getting to it.

So, you can’t get bank money, especially in these credit challenged times (although banks are showing signs of loosening). I have a couple things to say:

1. Try multiple banks. Your local town bank may be the best if they’re in business. Still try the big ones. If your credit is shot this won’t work.

2. DON’T USE BANKS! I hate using banks anyway. My investors almost always flip houses using private lenders or hard money lenders. I consider hard money, traditional ones that are in business to lend, and private, someone you got set up to lend. You need some solid private money lenders anyway. This is a great way to use them.

Ok, so, we’re finding the deals, building our buyer’s list while trying to sell it, selling it, then closing and getting a check. Eazy, peazy, rice and cheesy as my daughter says.

Finding the Deals

The thing I see beginners do most often is get a few leads and then start chasing them. They never even think that when I’m done chasing these deals and it either goes through or flops, I won’t have any leads left. You must keep generating leads every single day.

You have to generate a HUGE pool of leads and then you get to pre-screen them and pick the best and most profitable deals.

That’s why I get deals that might make me $17,000 cash when I flip it, or even $35,000. Because I’m generating so many leads I get to pick and choose.

I’ll admit, real estate is a numbers game, but you do want those numbers to be good numbers. I don’t subscribe to the old school mantra of just calling 100 ads, make 10 offers, see 3 properties and buy 1. It would work, but most will quit long before they call 100 people.

It is a numbers game in regards to simply generating enough qualified sellers (those with enough equity to do a deal if properly motivated).

There are those that will sell at a HUGE discount.

Those that will do this are few and far between. That’s why you have to generate qualified leads so you can pick the ones that will do it.

Thus, you need to get REALLY GOOD at pre-screening, because you don’t want to waste time on un-motivated sellers. That will kill your business and your enthusiasm.

Then you’ll say, aw real estate sucks. It doesn’t work, I tried it.

Finding Flips

1. Area with lots of ugly houses. They’re UGLY, the grass (or snow) is up to your knees, no furniture or window coverings, and maybe broken windows.

2. Mailing lists of properties 15-25% below median sales price for the zip code (melissadata.com).

3. Use Birddogs, if it is legal in your state. Have someone drive around looking for vacant properties. Pay them $5 for an address and $10 if they get the address where the owner is now and a phone number.

4. Stick with starter homes. 3-4 bedroom houses, with 1-2 bathrooms, at least 850 square feet on the main level, and a garage – plus or minus about 10-20% of median sales price.

Build Your Buyers List

You won’t get a check unless you can sell the property. You’ll need a buyer. You’ll need a buyer that can close quickly. This used to be just landlords, rehabbers, and basically other investors. These days, you can get buyers who will take the house even if it needs work. They can get financing to buy it and a 203C loan to fix it up. This is nice because you make more money, you sell closer to retail. You also get a retail buyers list built, as well as, your investor buyers list.

Ads – running ads online is the fastest way for building a buyers list. You need to make sure you make the ad short, to the point, and it must benefit the buyers.

Email lists – As you’re building your buyers lists, these days, you want to ask for an email address. I’ve sold 4 properties once in 23 minutes by sending just one email. Also, get on other people’s buyers list. Very often investors just copy everyone on the list and you can see everyone’s email address. You can then send those people an email also to see if they want your deal.

Signs – admittedly, I don’t use bandit signs, but we do put signs in yards right away. We usually use two different types of signs. We try to get that first time home buyer and a wholesale investor buyer.

We usually put them in the yard, right when our agreement is signed.

Direct mail / Email – we use direct mail to build our wholesale AND retail buyers list, and these are our most productive strategies.

When building your list, quantity is good in the beginning. From that, you’ll get the quality buyers.

You’ll often end up with just a small group of buyers that will buy from you over and over again. With sellers, you want quality though. You don’t want to be wasting your time with a large quantity of unqualified sellers. You want them to be pre-screened. The best way to do all this is with automated tools. In other words, build a team around you, whether live humans or technology, so you can live a life while investing and it doesn’t consume your world. We use:

http://patlivenow.com to answer our calls and prescreen our leads. We also use websites that can do the same thing. Sign up for a patlivenow account and tell them you want the Jim Fleck script. You’ll thank me later.

Promote and Sell Your Deal

If you’re going to get a check, you’ll actually need to sell the deal. The best way to get bigger checks from selling your properties is to add value to the deal, and then you won’t have to cut the price. This advice, if you heed it, will make you tens of thousands of dollars a year or more depending on your volume.

How To Add Value

Don’t just wholesale the property. Repackage your product as something more than what others are selling.

Make it easy to do business with you. Make sure all the title work has been handled; possibly have the property cleaned out. Do the due diligence for the buyers; provide credible valuable information around the deal that they can use to make their decision, for example, estimate of repairs and appraisals.

Give wholesale buyers what they want, and make it easy for them to decide and make money.

How do we add value? One way could be what I do for my Automatic Wealth Building clients. For them, I’ve created a “deal done for them” or “Investment-in-a-Box”. Chrissy and I have done everything for them.  We provide all the necessary due diligence in an easy format, and then we market it with proven marketing strategies.

Experts – we show that we know what we’re doing. We’re investors. We’re an authority. We can make them lots of money and make it easy if they do business with us. People like to do business with those that make it easy and show they are in charge.

Social Proof – We always let our investors know that other people are buying from us and profiting. This causes them to want to do the same thing. We tend to look to the crowd to know how to react. It’s the herd mentality. This is why even in real estate, we use testimonials. People like to see others making money, and succeeding. It’s proof. By seeing lots of other people interested in a house, people can jump to the conclusion that it’s a good deal and they should make a decision quickly. This is also why we do group showings of the properties and not one at a time.

Scarcity – when I email a property out to my buyers list, they know I only have a few and that it’s going fast. People put more value on something when there is less of it. This is important if you want to sell faster and for a higher dollar amount. This is why our round-robin auctions work so well. Others are bidding against each other for just one property.

So, this is more or less a primer to get you off the old rump and do something. I didn’t go into detail but there’s enough to get you started. Some good ideas for how you can sell faster and for more than the average investor would.

Close Your Deal – lastly, pick up a check. Keep the deal moving until this happens. Don’t count your chickens before they hatch.

All kinds of things can happen before you get your check. Chrissy knows I don’t get excited until the check is in my hand, and then I bank it. Not until.

Nobody wants that check as much as you do. The lawyer has $350 at risk, the title company $1,000, the agent $3,000, or whatever. You might have $25,000 or $35,000 to lose. Keep following up until the day you cash the check.

During the time between getting a deal on paper and closing it, you’ll want to make sure:

Everybody is doing their part to keep things moving. We never assume they are. We follow up on everyone.

Double check on seasoning issues. Since you might be doing a double close, just check with everyone or have your lawyer do so. Stay on your lawyer until he answers.

Double check that funds are lined up and will be there on time.

We like to use checklists to make sure nothing is forgotten or missed. We have a closing checklist just for this purpose.

Remember this; there is no set time it takes to close on a real estate transaction. It can be done as fast as the parties are willing to act, as fast as the title can be insured, and as fast as the funds can be secured and transferred.

This can be a couple days to a couple weeks or even months, if you let it. If I had to put an average we’re talking 3-4 weeks to close, 30-60 days if we’re retailing. If wholesaling, we close the same day we close on our buy.

Try not to wait until the last minute, and then try to rush everybody. Just follow up, keep a checklist of things you need to do, cross them off when you know they’re done.

So, I hope this will inspire you to start taking some steps each day.

And if you need some details, get the wholesaling course at:

http://jimfleck.com

To Summarize

1. Set a goal with a specific amount and target date.

2. Create an “actionable” plan with steps.

3. Start working your plan, as often as your time allows, but don’t stop it. EVER.

Buying “Subject to”

There are different meanings to the phrase `’subject to”, such as a clause in a real estate agreement: “subject to buyer’s inspection“, or  “subject to partner’s approval“.  Most are familiar with these phrases.

But in this particular scenario we are referring to a low to no money down and no credit strategy. For real estate investors, the most common use of the term “subject-to” or “Sub-2” refers to purchasing a property “subject to the existing financing”.

This strategy leaves the existing financing in place and the investor just takes over the original owner’s payments.

YOU ARE NOT ASSUMING THE LOAN. This is where people get hung up. You are not assuming a loan.

Look, I haven’t seen a loan that’s assumable in I don’t know how long.  Anyway, even if you find one that is, it would also have to be non-qualifying for you to just assume it without your credit and qualifying for it to assume the loan. So to be clear, you are not assuming anything. You are simply agreeing to make the seller’s existing mortgage payments. The seller’s name stays on the loan, you just pay it.

Please don’t tell me it’s illegal. Take a look at line 203 on the HUD1 form, which says “Existing Loans Taken Subject To.”

Anyone can make a private contract to buy or sell a property. You will have the deed in your name; the seller will still have the loan in theirs.

This type of strategy does have some nuances depending on the state you’re in. Nothing a hundred dollars and a lunch with a lawyer won’t take care of. Always send the question to the lawyer first though…then buy lunch only if he has the answer.

There’s a new scheme for what to do with Fannie and Freddie. Grab your wallet… For years, Fannie Mae and Freddie Mac existed to guarantee mortgages. They were, in effect, government-backed insurance schemes. Unlike insuring banks that are inherently insolvent (like the FDIC does), insuring mortgages was actually a pretty good business, provided you charged reasonable fees, you insisted on good underwriting, and kept plenty of capital on hand in the event of a crisis.

Freddie and Fannie operated this way… for a while. But later, after they became publicly owned, Fannie Mae and Freddie Mac primarily existed to enrich their government overseers and their government-appointed executives. Well-connected politicians would “stop by” the company for a year or two and walk away with several hundred thousand dollars in compensation. And as you already know, Fannie and Freddie operated the largest and most lucrative lobbying machine on Earth. Everyone got paid.

This “paying” couldn’t be financed solely by insuring safe mortgages. That led Fannie and Freddie to borrow huge sums of money to buy up mortgages of all types – yes, that included around $500 billion in sub-prime mortgages. Times were good. Fannie and Freddie made enormous amounts of money because it was a high-risk game.  They had so little equity on their balance sheet that any losses would spell trouble.

In 2008 trouble came knocking.

Now Fannie and Freddie are owned by the government again. This means…ugh… politics.

In fact non-bank mortgage finance companies that used to be around are being squeezed out of the business. The big banks used to run what was called warehouse lines of credit that these finance companies could borrow from. Now the big banks have stopped supplying these finance companies with credit, since they are the competition. Why fund your competition? Since 2006, credit available on warehouse lines has decreased by 90%. Bank of America and Wells Fargo are now making a lot more money on mortgages because there is less competition. It’s good they’re making more money…I guess. Since our government is now a large shareholder in both banks. Something is really wrong here…really wrong.

Politics doesn’t care much about profits (or the taxpayer for that matter). Now, Fannie and Freddie are being asked to create a new market for warehouse lending, all in an effort to save the non-bank mortgage companies – the very firms that were largely responsible for the decline in mortgage underwriting.

Wouldn’t you just love to sit in a room with politicians and ask them basic questions? They’re idiots. It amazes me the stupidity. They’ve been insulated so long from real people they have no clue. It’s all special interest groups. It seems that there is so much corruption. The kind we used to only read about in headlines about “other” countries. The worst idea is to combine politics with banking. It will destroy both the economy and the currency. Sigh.

Jim Fleck

Jim Fleck Real Estate

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This month, that number has ballooned to $12.8 trillion, which is close to the size of our entire economy.

Put another way, the government is spending everything, what it and private businesses combined spent last year to correct the problems with our nation.

$1 trillion is an estimate of what the U.S. collects in taxes each year. So, with a $12.8 trillion bill, the government has to raise our taxes nearly 13x this year or in the next few years. Either that or pass it onto future generations. Hmmm, my poor kids.

Mother Russia & New York, New York

In another step to make the U.S. a little more like Mother Russia, New York is trying to raise taxes on the state’s highest earners.

The temporary hike proposed would be the “largest state income tax increase in recent history.”

Basically a new “millionaires tax” …oh joy…will hit those whose incomes start at $300,000. They would be taxed at 7.85%. The highest bracket, earning $500,000 or more, an 8.97% increase.

I know, having friends that are in the lower tax brackets and recently listening to them talk over cocktails, these taxes on the “rich” will prove to be popular with the “regular tax-paying Americans”, as if I don’t pay my fair share as it is. Of course, the standard of living for the average tax payer will continue to decline as more and more of the productive assets of the country are confiscated or controlled by the government. You often get what you deserve, not what you want.

Rush Limbaugh Threatens to Leave New York

Or, blow hard moves south, same thing. It falls into the ‘who cares’ category, but I guess it does make a point. Radio host, Rush Limbaugh, vowed Monday to sell all of his property and shut down his radio operations and move them to Texas, which has no state income tax.

The plan would raise about $4 billion a year, said Dan Weiller, spokesman for New York State Assembly Speaker Sheldon Silver. Lawmakers are calling it a temporary tax increase, yeah right.

Limbaugh plans to sell all of his property in New York City, he told listeners.

“…I’m going to get out of there totally, ’cause this is just absurd, and it’s ridiculous — and it isn’t going to work,” Limbaugh said. “It’s punishing the achievers for the mistakes and the lack of discipline on the part of a bunch of corrupt politicians that have run that city and state into the ground for I don’t know how many years — and I, for one, am not going to take the blame for it. “

As much as I disagree with most of what comes out of his confrontational mouth, I do agree with him on this.

Limbaugh, who usually broadcasts from his home in Florida, another state with no income tax, said the new tax is likely not only to drive other high earners like himself from New York, but also prompt those remaining to work less. Pointing out that the state already collects taxes on cigarettes and liquor, in addition to billions in lottery proceeds – oh, and don’t forget billions more in federal stimulus dollars – Limbaugh asked Gov. David Paterson when would it ever be enough.

He even suggested a new state slogan: “New York: It’s Never Enough.”

“When you raise taxes on an activity, you reduce that activity, people start doing that activity less. In this case: working. When you reduce taxes on an activity, then that activity increases. When you reduce taxes on income, people start working harder to earn more. Governor Paterson needs to cut taxes on people. He needs to spur investment. He needs to get people going and working. It’s just the exact opposite. Governor Paterson is like most other liberal Democrats: zero-sum game. The economy is a pie. It never grows. Somebody gets their slice; somebody else gets their slice.”

Jim Fleck

Jim Fleck Real Estate

Jim Fleck

Jim Fleck

Wow…I feel like the world changes every month. New laws, new war, new politicians, new layoffs.

I know lots of people need checks. So I’m going to dedicate these next few issues to getting checks quickly. You’ll be getting the nuts and bolts of my Cash Now system that will be made available on TV beginning in July.

Also, to reduce costs to you, the newsletter will now be delivered by email. But of course, you should know that because that’s how you got this one. So let’s get started making some money.

Fast Flipping for Fast Cash

What is “Flipping”?

A lot of money can be made by “flipping” houses.  There are a lot of different definitions.  Some people call it “rehabbing,” others call it “wholesaling,” which is the term I like to use.

In the world of real estate, flipping is a strategy you can use to make money without spending any of your own money – or using any of your own credit.

This strategy is one that you can implement with virtually zero risk.

You may have heard of people who flip a house that they have also “rehabbed” meaning they buy it, fix it up, and then flip it to a homeowner for a substantial profit

however there are a lot of risks that come with the “retailing” approach. This is retail flipping.

I do not recommend you take that approach until you are more experienced, especially now with real estate markets not yet appreciating.

However, I’m doing one right now. I purchased it for $122,000, I put $10,600 into the rehab and I just listed it with my agent on the MLS for $189,900 which is priced to sell fast!

For our purposes, when I speak about flipping a house, I am talking about:

In other words, you as an investor are basically selling your contract to another investor and letting them finish closing on the property.

At that point, the other investor may choose to fix up the property and sell it for an even bigger profit.  They may even choose to keep it and then rent it out.

How I do this is I find a bargain property that an investor would want and you take a small profit for finding the property.  The point here is that it does not matter what the other investor does with the property after they buy it from you.

Basically… we work as “middlemen” by wholesaling a property.  We find a property at a discounted price, assign it to another investor or rehabber for a fee, and let them finish closing on the property.

The other designation I mentioned before was “retailing” which is when you buy a house, fix it up, and sell it for a big profit.  We are not retailing. Not yet anyway. The example I mentioned above is retailing and you can see how much profit there is. However, I do have some money wrapped up in that property. We’ll discuss funding later in this issue or some of the next few issues.

“Equitable Interest” = A Fast Check

Once the seller signs a contract with you, the property is “under your control” because you have established what is known as “equitable interest.”

Be clear — if you have not established equitable interest and you try to sell the property, you will be acting illegally just as if someone was posing as a real estate agent who did not have a license.

With equitable interest come several options.  Among them are:

•           You have the right to sell the property

•           You can assign the contract to someone else, or

•           You can flip the property to a first-time home buyer

The purpose of this newsletter and all my future ones is going to be to get you a very fast check, as I focus on flipping. Flipping wholesale deals, REO’s, Foreclosures, you name it, we can flip it.

The best way to accomplish this is to flip the property to another investor at a higher price then you had contracted to buy it from the seller for and you keep the difference.

In essence, the new investor will actually take your place in the agreement you signed with the seller.  It is now the new investor’s responsibility to complete the agreement and purchase the property.

The new investor may choose to fix up the property, they might keep it, they might rent it, or they might even try to sell it to someone else.  They assume all the responsibility and risks; therefore you “should” leave most of the profits for them. You will simply take a small finder’s fee.

Do not get me wrong about the small finder’s fee which will not necessarily equate to a small check for you.  I have flipped properties for as little as $3,000 and on the other hand, the week I’m finishing up this newsletter I’ll be flipping a property for about $20,000!

This Is Clearly the Best Risk-Free Strategy  in Real Estate to Create Quick Cash!

Are you concerned about out-of-pocket costs like earnest money which is the deposit that is typically made when you make an offer on a property?

If the answer is yes, just know with this strategy, you will usually not put any money down at all and even if you do, it might be only $10 or $100.  In my world of real estate, this is considered virtually risk-free.

Remember, you are only at risk for the amount of the earnest money deposit.  If you put zero money down, you have zero risk.  No one can come and force you to buy their house.

Quite often these days, I will put down $1,000 – $1,500 in earnest money on a property.  Why?  Recently the “sellers” which in my cases have been banks lately, have been requiring more earnest money than $10 or $100. I am fine with putting that kind of money down also because I know I have a list of buyers lined up and ready who will buy the property. I also know that I always have an inspection period after the bank accepts my offer to get out of the deal and get my grand back.

Use your best judgment because there are situations where it may take more money to secure a great deal.  Just make sure you know what you are going to do with a deal (the property) before you put any more than $100 down.

The contract will simply state you have the right to buy the property at whatever price you establish with the homeowner/seller.  If you fail to perform or fail to execute the contract, then you forfeit your earnest money deposit. That is it.

Having this type of clause in the contract should give you some comfort.  New students often feel uncomfortable thinking, “Oh, no!  What if I cannot find the money or what if I do not find a buyer?”

Again, remember the worst-case scenario is you will only lose your earnest money deposit and if you didn’t put any money down, you have nothing to lose!

Not putting any money down is not the only way to make this a risk-free venture.  There is language that can be added as an addendum to the contract that states the “deal is subject to partner’s approval.”  So that in the event you do not find a buyer, you can return back to the seller and inform them that, “You know what?  My partner did not approve this deal.”

This phrase won’t work with all types of deals, such as REO’s but you can usually use it with a regular homeowner.

With these strategies, you will have the knowledge of how to flip properties… get quick checks… pay off those credit card balances… pay off your loans… build your savings and clean up your credit, in addition to assisting you in furthering your real estate investment career.

Past Three Months

A couple months before writing this newsletter, I flipped three properties for approximately $5,000-$6,000 each for a total profit about $17,000.  Not a bad month.

I also bought a fourth property that month, which I rehabbed; the one I mentioned above. potential for profit in that property is about $70,000,  If I discount it for a quick sale, I will still probably make a fast $50,000 to $60,000 on that deal alone.

You can make very good cash, just like I did.  That $17,000 cash helps pay the bills.  It pays for the nice cars and the big house, funds private school for my three kids, and the toys.

The point is, when you do not have any limitations, both real and self imposed (a topic for another newsletter) you can do as many of these deals a month as you can find.

The following month after that I devoted a total of 60 minutes to put together four deals and I made a fast profit of approximately $35,000 flipping properties.

For sixty minutes of work I made $35,000, that is $35,000 per hour!  Not too shabby for an hour of work in one month.

Once your system is in place for example and you do just one of these deals a month for an average of $10,000 which is very doable; you can make $120,000 a year!  Even if you only made $5,000 per deal that would still be an extra $60,000 a year.  Imagine what you could do with that kind of money.

Increase that to 2 deals a month at $10,000 per property (at 15 minutes per deal, 24 deals would take approximately 6 hours); now you are looking at $240,000 a year, or $40,000 per hour.  This is why buying and selling real estate makes millionaires!

Concerned about the economy?  Housing “bubbles”?  Don’t be because these types of deals can be done in any type of market; it does not matter whether the market is at a peak, at a bottoming out, or simply flat.

Remember the key is there is no risk because you are in control of the deal, and you never take possession.

Let’s say you live in an area that is going down, even steeply.  Given that you are not going to take possession and actually own the property yourself and you are going to assign it to someone else, the condition of the market will not affect you.

Here is a “worst case” scenario example:

You find a property worth $100,000.  You purchase it with a contract for $70,000, and you assign it to another investor for $75,000, basically adding in a $5,000 finder’s fee for you.  For purposes of this discussion, by the time the deal is ready to conclude let’s say the value of the property has now dropped and the property is only worth $90,000 and the investor determines he no longer wants to buy the property at $75,000 and does not close, what’s the worst thing that can happen?

Before I answer this question you must remember that you probably have no money or perhaps you have $10 or $100 in earnest money that you put down (I normally do not put any money down with sellers); which means you basically have no risk and will not lose anything except for maybe the $10 or $100 earnest money (which in my mind is the same as losing nothing, especially when you make so much money when deals do close).

Using this technique alone is the single greatest reason you can make quick Cash Now in real estate with no risk, no limitations, and with unlimited potential.

In addition, if you collected an earnest money deposit from your buyer like I do for $1,000-$2,000 and the buyer does not close, you could possibly keep their earnest money deposit and then turn around and even though the property is only worth $90,000 in the current market sell it to another buyer who might want that property.

The other thing I like about this strategy is that sometimes when I am buying properties to hold or rehab and then sell, I might decide I do not want to keep the property for various reasons after all and in those cases I can always wholesale the property to another investor with no risk.  In those instances, wholesaling can be used as an exit strategy to not have to buy a piece of property.

FINDING BUYERS

One great source is the Internet.

For example, Yahoo! Groups? are people who form a group based on similar demographics or to talk about a specific topic of common interest.  If you visit www.yahoogroups.com and type in “real estate” in the search box, you will find numerous groups of people who are looking to buy and real estate and may be interested in your geographic area.

EBay.com sells more real estate than any other single source in the world I’m told.  At www.eBay.com you will be able to find buyers and have the ability to sell property using this wholesale flipping method.

Networking and Saying the Right Thing

Networking is a critical element in your success as a real estate investor and in finding buyers.

Attending real estate investor meetings is a must, even if you have to drive an hour to get to them.  Visit the National Real Estate Investors Association website, http://www.nationalreia.com to find links to real estate investor clubs in your local area.  Check out the links for local groups and find out when and where the meetings are.

Begin to network with the people you meet at these meetings and ask who is buying wholesale properties and what they are looking for.

Networking will help you find investors to buy your properties… Not only that, but other people will find you as well.

When you are networking for buyers, focus on the fact that you are doing an investor a big favor.  Do not just focus on the amount of money you are going to make.

Remember you are essentially being paid a “finder’s fee” because you are being paid for the work of finding properties and not taking any of the risk.  For that reason there is only a smaller amount being made by you compared to the big profit that is available in the deal for the investor that is taking the risk to “rehab” the property.

If you focus on attempting to do something good for an investor and bring them really “juicy” deals, this give you the opportunity to have the ability to move your properties very rapidly because the investors will continue to come back to you and buy more and more properties.

At the end of one year, you could easily have 20 investors buying a single property from you each month which is 240 properties a year.  At $10,000 a piece that is $2,400,000.

When you are speaking with a potential buyer, it is important to find out what they want.  Write down what kind of deals they are looking for, being sure to get their name, phone number, and email address.

It is always nice to know you have a buyer lined up for a property.  In other words, if you already have a property then all you have to do is find a buyer, right?  Just know there can be pressure to find the right buyer for the property before possibly losing the deal.

Ideally, the best way to look at this situation is to already have a buyer from a long list of potential buyers and already know what they want, and then the only pressure is to find a property for them and then complete the deal.

On the next page I’ve listed a list of questions you could ask while networking. Either memorize a bunch of them or simply carry them on a clipboard and fill it out while talking to someone. Feel embarrassed doing that? Then get over it, or get a job.

Questions You Should Ask

While Networking Checklist

•           Is there a price range you prefer?

•           What is the maximum percentage of the market value you will pay?  (Based on the ARV – After Repaired Value – the fair market value after a property is repaired, up to its maximum value.)

•           What type of properties would you like?

•           How quickly can you close when I have that type of property for you?

•           How will you pay?

(You are looking for whether they will buy with cash, finance with a hard money lender, or finance with a traditional lender)

•           Are you pre-approved? (If financing)

•           Will you need an appraisal? (If financing)

•           Will you be able to provide a proof of funds letter once I find a property?

•           How many properties have you purchased in the last three months?  How many properties are you planning to buy this year?  (This gives you an idea of whether they are really a player or not)

•           Do you have any references?

(This is an optional question and is asked if I am a little uncomfortable with them and do not feel they are a self-assured investor)

•           Do you have any other investor friends I can speak with who might be interested in the extra deals I get that you do not want?

The answers to these questions will allow you to create a virtual database of information that will need to be continually updated.  This way you are always looking for a property someone wants, and conversely, you will always have a buyer to match the properties you already have found

Having these tools available to you they will allow you to secure properties much more confidently when you know you have a buyer waiting in the wings.

I also like to send an email to my buyers every other week.  I write a little newsletter teaching different strategies buyers can use to make money with their real estate.  Other times I may fax them an article I wrote or something I have just read in the newspaper that I think they may be interested in.  I may also pick up the telephone and call them, or even send a “voice blast” that calls their phone and leaves a recorded message from me.

All of these methods serve to keep the lines of communication open.  It also keeps me in the forefront of their minds so when I send them my deals they remember who I am which will result in a lot more sales.

There are always new investors who get started with me who do everything right:  they find an investor, talk with that investor, ask all the right questions, then those new investors go silent with no contact whatsoever until they have a property that needs to sell immediately otherwise they will lose it.

Do not make the mistake of letting your network get stale.  Keep talking with your buyers.  Keep finding out what they want and what their situation is on a regular basis.  Soon, you will grow a list of buyers who can make you very wealthy.

Jim Fleck

Jim Fleck Real Estate

Jim Fleck

1998. He has seen the ups and downs of internet marketing and shares his knowledge with anyone wanting to make money online. His extensive knowledge of many aspects of
marketing makes his advice invaluable to internet businesses.

Fleck, is the founder and CEO of Instant Profits Marketing, Inc. his company provides marketing software and other applications designed to help online businesses explode
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Fleck has created Several successful internet marketing products. His products have spawned a series of Real World internet marketing products that get results. Some of these stress joint ventures, direct marketing, and home based business consultation.

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One of the products strengths is that it helps the marketer understand what goes on
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Fleck has also spoken at seminars held by his partner and Dan Kennedy. The three of
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He’s been a publisher, speaker, internet specialist, and marketing consultant. Fleck
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Fleck lives in Illinois with his wife and two sons and enjoys baseball, golf, and
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jim fleck

jim fleck real estate

Jim Fleck

Jim Fleck is the nations go to guy when it comes to internet marketing and real estate investing. You can learn more about Jim at http://JimFleck.com