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Q.
Barney, in “Hidden Profits thru Real Estate Options”
you said you could file the Notice of Option that is
recorded with an attached Deed of Trust? (I am doing
an option on Monday; and I can’t find such a thing
anywhere in this material that I bought from you.)
Thanks,
Ken
A.
Most
states allow for that state’s normal deed of trust
to be used to “secure an agreement.” So you can use
any “standard” deed of trust used in your state.
I would still get the Notice of Option notarized
even if you file it with the DOT. You can use the
Notice of Option you have in the materials, (page
15, I think).
Some states require a copy of the document that the
DOT secures. Some do not. If you get to
the county Recorder of Deed and they give you a hard
time, you have notarized the Notice of Option and
just record that without the deed of trust.
Remember, you do have a deed of trust signed and
notarized too.
If your state does not need an exact copy, just
write in the description “to secure an option
agreement of even date” where it calls for you to
describe the note. (Texas requires that the
deed of trust be used only to secure a debt. You can
work around that. If you need help and you own
Hidden Profits, email me and I will tell you how.)
BZ
Q.
Barney, once my ROTH owns my option, can it sell
just the option? In other words, can my IRA sell its
$5K option for say $15K to a corporation who then
also buys the real estate itself, and then sells
that real estate for a profit? In other words, can
my IRA make a profit on the option; and then the
corporation makes a profit on the property?
Kenny
A.
The
technical answer is yes; your IRA can sell the
option and make a profit. But it can’t sell the
option to a corporation of yours. It has to be an
independent third party. And you can not do in two
steps what is not legal to do in one!
BZ
Q.
Hello Mr. Zick, I am a young investor just
starting out. I have found a 48 unit apartment
complex for $1,000,000 in an area where the
apartments should rent for $350 to $450. What would
the best loan for financing be and what kind of a
down payment would I have to have to get said loan.
I think I may have to get a private loan for the
down payment but the passive income just looks too
good to pass up. Any advice you can give me would be
much appreciated. Thank you for your time.
Sincerely,
Damon
A.
Lenders
typically like to see 20% minimum as a down payment;
30 is much better. However, when there is upside
potential, and the buyer has a track record, all
sorts of better deals are possible. I have seen 95%
financing on an income property with a good
story…and with the right buyer 100%. Best you do not
get a loan for the down payment because that would
not be acceptable to a lender. You will need to have
an equity investor and I might be able to help
there. The rents you quoted are low and the price is
high by comparison. Lower price rentals are doing
poorly in Houston and many other cities. Too many
“A” class apartments have been built and the “C”
tenants have moved in to “B” class and “B” into “A”
class. So be careful of vacancy numbers and ability
to keep it rented. When you get closer on the deal,
let me know and we can get you the loan.
Here is a
great suggestion. Get our “Income Property Boot
Camp” which was recorded live, completely edited and
a very useful course book, detailing all the
examples that were put on the board, and bound in a
two part set. It covers in large part, the seven
ways to value a property. This way you will know
when you have really found a deal.
(P.S. You
would have paid $1995 to attend our Income Property
Boot Camp and would not have had as good of notes as
you get with the set. That is a blessing AND a
savings.)
BZ
Q.
I was not able to get going on an
apartment because I didn’t move fast enough. I have
found another. This one is more expensive but
it is two blocks from the State University. I will
send more details as I get them. My question is how
does an equity investor for the down payment work?
Or where can I read about doing such a thing. I know
you are busy and I really appreciate your time.
Sincerely,
Donald
A. Donald, we talk
about equity investors in the Hidden Profits album
and in the Income Property Boot Camp set. We can get
you a loan most every time; however, you will have
to get the equity investor. Unless it is a deal with
super upside potential and then we might find the
investor for you. There is a lot of work to putting
a deal together and the more you do the larger the
share you will be able to command.
The Down Payment Partner is a passive investor. They
put up the money and you do the work. In my typical
model, I tell them they will get their money back
first then we will split the profits. Successful
business owners have money but no time to look for
investments. They make good buyers of DPP deals. Get
back to us when you are closer on your deal.
BZ
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Q.
Barney, I would appreciate your advice on this
situation: A couple showed me the 2B/ 2BA/ Den/ LR/
FR Condo (in a big bldg with pool, gym, etc.). On
the title are the woman, two sisters and the mother
(money will be 25% each - mother and three sisters).
Listed at $215K (since 03/2004); reduced from $225K
(worth a bit more). The condo is in good shape,
good carpet, wallpaper, paint, glass on closet
doors, etc. It’s paid off! Equity = $215K.
After 5% Realtor ($10,750), 3% Closing ($6,450) and
4% Nego ($8,600) Equity = $189,200. She wanted more
as she still wanted to pay the realtor for her help.
The money will be split into four; mother is in
assisted care ($7000/month!). One daughter is in CA
and two here in IL. With four names on title, any
problems? How would I handle this? I offered
$190K (could sell on 2 yr LO or Land Contract for
$230+). I suggested she get loan for amount
and I will take over the payments (Is that the only
way?). I talked to Karen about the interest only
loan; but that will be 70% LTV. In one of the CDs
you talked about multiple notes (four notes?).
Thanks,
Sam
A.
Sam, I would have started with offering four
notes secured by one DOT or mortgage. That way they
all get their share. Sell it with showing them the
taxes are delayed and if they put it in a bank, they
would lose less because taxes would be paid out
first due to a cash out sale and that the interest
rate on savings is puny. Also point out that most
people that get a lump of cash have nothing to show
for it two years later. This is a forced saving
program. Also, your idea of her putting on the note
is good. Try to give the Realtor a listing on
something else to pay them or on the lease option
sale to delay paying them. Or, give the Realtor a
note on the property as a second that comes due when
the lease option is funded.
BZ
Q. Barney,
I have a man willing to sell me his 4-plex; but his
buddy just sold his 4-plex and took a $185K tax
bite, so he doesn’t want that to happen to him. He
thinks his only way out is to exchange it. He’s been
taking depreciation on it for 25 years, so he says
the recapture will cost him. He says even if he
lease options it to me that he’ll have a tax bite.
What kind of offer can I make him that will give him
a minimal or zero tax consequence other than an
exchange?
Kenny
A. If he
lease options to you he has no tax bite until you
buy. He can trade it to someone else with your lease
option intact and it will still be a 1031 exchange.
So a lease option will put off the tax and if you
give him notice that you will be buying, he can do a
1031 with the cash he will be getting. A second way
to lower taxes is to get a long term interest only
loan. But then when you pay the loan it WILL be
taxable and nothing can be done.
BZ
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Having Fun
Financing Commercial and Investment Deals
As you must know by now, Karen Zick
is a pro at finding loans for one to four family
residential deals. These are what I call
“residential rentals” or owner occupied properties.
I do not participate in that operation. Karen runs
it. I do help with the training but that is all.
My love is financing larger commercial and
investment deals. Over the last 30 years, I have had
to structure and finance so many “impossible to do”
deals that they have become common place for me.
In this regard, for 2005 I am stepping up these
activities. We are looking for more office space
right now and bringing in our own loan processor and
staff. I have a young guy that is a very successful
loan broker who is coming in with me in this new
venture. (More on him later.) But for now, you need
to know, if you did not know before, we are “open
for business.” No deal is too large. We even do
large hard money deals. Don just closed one for
$11,000,000 last month...on land, if you can believe
that!
For 2005 and the future we will be building that
part of our business and doing fewer seminars and
fewer single family deals. Most of those deals can
be handled by my joint venture people anyway.
Our new web site is still under construction. If you
want to get a preview, go to
www.realvestfunding.com. Watch for more on
this subject, especially in our newsletter that
comes out on December 15th. That issue is more about
mortgages anyway.
BZ |
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If you have any interest in foreclosures
you have got to read this message. My friends Michelle
and Richard Odessey have created a 12-week foreclosure
tele-training and coaching series that you must attend.
The calls started on Monday November 22nd and continue
weekly for the next 3 months.
CONTINUING TELE-COACHING PROGRAM
We
are bringing faculty and more in to your home for you to
learn from and plan your business strategies going
forward.
Register N0W for our Unique, High-Power 12 Session Tele-
Coaching Series. We'll be covering all aspects of making
huge profits in the coming foreclosure epidemic,
including:
* Preforeclosures
* Short Sales
* Bankruptcy
* REO's
* Tax Liens
* Getting the Money to Fund your deals
* Asset protection in foreclosure
* Multi-family foreclosures
* And more..
ASK
YOUR QUESTIONS TO FIND OUT:
--> A step-by-step system to follow for successful
short
sales
--> How to find short sale deals anywhere in the
country.
--> Who to contact for the short sale, how to get banks
to
talk to you, and to return your phone calls
--> How even a novice with Mark's system can do this,
starting
with no experience, credit or background in
foreclosures
--> How to negotiate with banks. How to get loss
mitigation reps to cooperate with you.
--> How to get the best deal and how to get to bottom
line
quickly.
--> And Much, Much, More...
The
Ultimate Foreclosure System Tele-Training and Coaching
Series :
It's only $147 - that's only $12 a call! However, you
must register now. We want each of you to get your
individual questions answered so we are limiting
participation to only 100 students. Just register N0W
and you will be sent all the call in information and how
to enter the virtual classroom.
PROFIT-MAKING ADVICE, MASTERMINDING, REPLAYS
In
addition to 90 minutes of prof!t-making advice that each
of these mega-successful investors use everyday in their
business, you can listen to all the other faculty from
the Ultimate Foreclosure System.
Your registration gives you exclusive entry into your
own virtual classroom to mastermind with fellow
students, submit questions and listen to replays of
sessions you missed or want to review. So, even if
you're joining after the start of the series, your
classroom will contain all the sessions that you can
listen to at your convenience.
The tele-slots are filling up fast, however there is
still time to join our 12 week Foreclosure Tele-Training
Series if you act now.
http://www.1shoppingcart.com/app/aftrack.asp?AFID=131153
EXCLUSIVE 0FFER FOR YOU:
Ultimate Foreclosure System Audio Set with Free
Tele-Training Tuition
If you couldn't attend the Ultimate
Foreclosure System in Houston we will bring the event
home to you and enrich your experience of this
Tele-Training Series. When you choose to take advantage
of this special 0ffer - you can own the complete audio
recordings of the entire 4 days (over 50 hrs of
material) for a ridiculously low investment AND you can
attend this 12 Week Tele-Training and Coaching for FREE.
Just choose the Audios with Free Tele-Training Tuition
option when you Register N0W for the Tele-Training
Series.
Register Here N0W! - Super Successful Short Sales
http://ultimateforeclosuresystem.com/
Best of Success,
Michelle
Michelle Odessey
support@UltimateForeclosureSystem.com
770-338-2797
P.S. Because we want you to get your individual
questions answered, we are limiting attendance to the
first 100 registrants. Register N0W to reserve your tele-slot.
http://www.1shoppingcart.com/app/aftrack.asp?AFID=131153
P.P.S. Also, we're running out of MP3 players for the
Ultimate Foreclosure System Event Audios. Take Advantage
N0W of the Special 0ffer, while they last! Richard
and Michelle recorded every word of the 4 day 12h/d
training,
http://www.1shoppingcart.com/app/aftrack.asp?AFID=131153 |
It Pays to Attend and Costs to Miss Out
Just to let you know, we are putting into
place a new policy. When you sign up for a boot
camp, we will get your credit card information. If you
DO NOT show up, we will be charging you a “no show” fee.
This is done throughout the industry. We pay for room
size, order coffee and hire help depending on the number
of people signed up. In order to keep costs in line,
this "no show" fee will be in effect from now on.
Would you like to
read past newsletters?
Click here
Scroll down to the
bottom of the left-hand column to find links to all of
our archived newsletters.
Remember: You may be my student, you may
be my best friend and I MAY love you…but, I am not a
lawyer. I am not YOUR real estate broker. You are not
my client. This e-mail is not intended as legal, real
estate or accounting advice.
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Next Mortgage Business Builder Boot Camp
San Diego, CA
Fri., Sat. & Sun.,
December 3rd, 4th & 5th
Details below…
Upcoming Events
Mortgage Business Builder Boot Camps
December 3rd, 4th & 5th, 2004 in San
Diego
Courtyard by Marriott
717 South Hwy 101
Solana Beach, CA 92075
858-792-8200
Click
here
to register for a Mortgage Business Builder Boot Camp.
"Financing Your Next Best Deal" Help Days
Sat., Dec. 11th
Tampa, FL
Sun., Dec. 12th
Orlando, FL
Click here to
register:
"Financing Your Next Best Deal" Help Day
Go
to
www.zickhomeloans.com
for more information and select "Contact Us" or
call our office at 800-677-3253.
Questions?
Send
us an email
or call 800-677-3253.
Go to
Barney's Website for more information about
educational events and materials.
Go to
Karen's Website to
apply for a 1-4 family loan or join us as a mortgage
loan originator.
Go to
Zick Investment Properties
to sell us a property or get a web site to sell your
properties.
OUR ALL FUND MORTGAGE /FREEDOM EQUITY GROUP TRAINING NOT
ONLY CAN PAY YOU BACK ALL THE COSTS, IT CAN PAY YOU BACK
FAR MORE THAN YOU INVESTED!
ABOUT
PARTICIPATION…
We have done two
fantastic three-day Mortgage Business Builder Boot Camps
and now we are ready to bust the seams out with our
December San Diego Training!
The first one was in Chicago in September. The second
one was in Houston. Next, we're headed to San Diego…
Cost
The cost of the training is $2195. You
can pay it all at once. However, I believe in our
program and know if you work our program you will make
lots of money. So here is the deal. I’ll bet two-thirds
of that on your success…
- If you are signed up under us,
you can attend for $695 up front and we will take $500
out of each of your first three loans to complete the
follow up training.
- If you are not signed up under us, but under someone
else, you can pay $695 at registration and attend the
event, and pay your recruiter the $500 per loan or get a
consulting help package from us for the same.
- If you are not signed up at all, you must pay $695 to
attend, but you can only attend the first two days. If
you sign up for Freedom Equity Group/ All Fund during
the two days you can stay for the third day which is our
Marketing and Sales Program. So the bottom line
is, get signed up and plan on attending.
By the way, if
you are already with Freedom Equity Group/All Fund with
a different recruiter, you can send your recruits for
training. They pay us the $695 you will get the three
training loans and paid $500 for each.
In fact, anyone
on our team that attends can do
the same with
their recruits. So you see, you are better off going to
our training in two ways. First, you get trained,
secondly, you will get paid for signing up for someone
for training when you help with their first three loans!
Our hope is that you will catch fire in this business
and by the time you do the first three loans you have
made all your educational investment back. So, bottom
line, if you work the program there is no cost; it pays!
Husbands, wives and children
If you want to
bring one of these into the business, great! If they are
signed up and a part of the business, they pay just like
you do. And, we will do the training loans with them
too.
If they are just assisting you with the business, they
can attend for $295 to cover our room costs, coffee
breaks, etc.
If your child is between 14 and 18 years old, really
interested, and can pay attention (don’t you dare drag
them there!), they can attend for $50. Children over 18
can pay the $295. Where else can you attend a three day
event and learn a business for so little?
The book you will receive will be for studying after the
event. We will have a fill-in outline that everyone will
receive. There will be one book for each full-paying
participant.
More than your money back!
If you are signed up under us, you can
return to attend the training for free. All you have to
do is bring someone you signed up under you!
Think about it. When you return with your recruit, you
get to come for free, they pay us the $695, but YOU
collect the $500 per loan when training THEM on their
first three loans.
For us, we get
our costs covered. It costs us at a MINIMUM $695 per
person to put on a three day event. We don’t really make
money unless you or your associates you sign up make
money with placing loans.
They get profits from placing loans, giving them their
educational investment back. You get trained associates,
we build our shop. It is a win-win deal all around.
Guess what? Your
associates can do the same. They can come back for free
bringing as many people as they want AS LONG AS THOSE
PEOPLE ARE SIGNED UP under them! You get the picture.
Will the ground floor be empty?
You are getting
in on the ground floor, so you may be asking
yourself…will the ground floor be empty of content?
Since we are new at doing these trainings, will we be
learning how to train on your dime?
Absolutely not. First of all, Barney will be at the
first three trainings talking about Sales and Marketing.
He spent 15 years teaching these topics to businesses
from New York Stock Exchange firms down to a two-man
firm in England. This is a secret part of his career not
known to most real estate investors. His results have
been staggering. One firm, a national blood testing
company, said that after his training, sales rose 15%
over their previously best month ever. The English
direct mail company, that made over a million a year,
got the biggest boost ever from Barney’s ideas, and that
is after five years of searching for the best consulting
in England and putting their ideas to play. Barney
increased their profit margin!
Secondly, we have one of the best company trainers
coming out to teach the two technical days. You will
learn how to present our best loan to prospects, how to
present the opportunity to recruits and how to do the
loan paper work. It will be an information packed event.
Best way to sign up…
Do it via our web
site and we will follow-up or do it by calling our
office 800-677-3253.
Do
it today!
Click here
to register for an upcoming Mortgage Business
Builder Boot Camp.
The Platinum
Adds a Plus; Changing Times and the Program Changes
We have had 20 people go through our first Platinum
program. We are now ready for the second stage. For
those of you who have followed this, my goal is to have
100 Platinums by 2009 and do deals with at least half of
them (those that want to stay in the program) for the
rest of my business life.
The program has been a learning experience for me. One
positive is I discovered is just how much help I can
give these people with a short amount of guidance. The
only negative is that the kind of person that becomes an
investor tends to hold strong opinions and ask tons of
questions which does not always work well when you want
to move quickly through deals.
The new program will be the Platinum and the Platinum
Plus. The Platinum will cost $9995 and will get you over
$10,000 worth of materials, lifetime access to seminar
and boot camps, and six months of consulting that you
can start and stop as you wish.
The Platinum Plus will also include my buying a property
for you (or with you) or personal one on one help with
your deal or training your staff. But I am not sure what
all you might want.
Let me put it differently. If you were sitting on
Santa’s lap, and he said…what help would you want with
building your real estate fortune, what would that be?
Would you want to spend a week with Barney’s staff
looking for and doing deals? Would you want a special
private event with top experts to give you one on one
help in some place like Hawaii? Just what would you
want?
All replies will be appreciated and kept in confidence.
I will not ask you about joining the Platinum program
unless that is what you want. I really just want to get
some ideas of what you folks need and how I can help
you.
Thanks!
BZ
The
Fine Print...
We
will do one newsletter like this one (Advice for the
Impatient Investor) and one called the REIT Real
Estate and Mortgage Report (containing Real Estate
Education Industry News and a lot of personal opinions),
approximately once a month. (However, keep in
mind, our newsletters are free so don't get upset if we
skip one occasionally!)
Advice for the Impatient Investor
has been published for fourteen years (but not in a
row). The next issue should be out about January 1st.
The next REIT Report will go out on or about
December15th.
Folks smarter than us told us to say: We take no
responsibility for the accuracy of the postings. All
contents of the postings are the responsibility of the
posting party. The foregoing material is strictly for
informational purposes only and does not provide legal,
financial, accounting or investing advice or services.
Use of any of the foregoing information does not create
a client relationship. You should not act on the
information provided without seeking legal, accounting
and tax counsel of your choice.
We
reserve the right to terminate the subscription of
anyone at any time.
Copyright note: Submission of an email message or art
work affirms that you are authorized to and have given
Bernard Zick, et al, non-exclusive permission to reprint
the content of your message in all forms, electronic or
otherwise, in all languages throughout the world.
Copyright © 2004 by Real Estate Investors
Training Corporation.
ISSN # 0272-8559
All Rights Reserved, no reprints to other email lists or
websites without Bernard Zick's permission.
This email was sent to you by REIT, Corp. To ensure
delivery to your inbox (not bulk or junk folders),
please add Bernard Zick [bernard2-9168385@autocontactor.com]
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You have permission and are encouraged to forward this
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To MANAGE YOUR SUBSCRIPTION, please send
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Please type, 'change account information' in the subject
line if you have an address change or if you no longer
are interested in receiving this e-newsletter, type 'no
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Our lists are NEVER sold.
Article submissions and questions are welcome and should
be sent to
newsletter@zick.com.
Address:
P.O. Box 6399, Kingwood, TX 77325-6399
Phone: 281-358-0409 Fax: 281-358-6591
Email:
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Website:
www.zick.com |
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