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This seems to be one of the most asked questions --
“Can
you get me a loan for a property that is going to be
foreclosed on the 29th of this month?”
Generally speaking, the answer is "No." Are
there exceptions? "Yes." Let's explore.
1.
Conventional lenders. Generally, no. Why?
They take very little time to do an owner occupant
re-finance but investor loans seem to take forever.
What most people think about as a 30 day process is
more like 90 days. Is that just slow old us?
NO! I don’t always have Karen do all my loans. For
various reasons, like the seller was already working
with a lender and they have half the stuff like
appraisals to them and approved. It still
takes 90 or more days. But that is not the real
problem. The real problem is that a foreclosure
needs an instant close. Read on and you will see.
2.
Hard money loans. It would seem a
natural, but it is not. Here is why. You get
pre-approved at
www.realvestfunding.com for a $150,000 loan.
Great. But to close, the lender needs the deed and
has to get a title policy. You say, "Give me the
money and I can get you the deed and a title
policy.” They say, "Give me the deed and title
policy and I will get you the money."
Hard money lenders HAVE to be certain of the title
policy and that will not be possible until AFTER you
close.
That is the "No" part of "Can you get me a loan?"
However, there is hope. This is why I really only
enjoy working with my students. They know all of the
above and also, when I get creative with solutions,
they know where I am going.
I will not have room here to spell out all the
details, but here are a few ideas.
3. Lease with Option. Option the property for the
amount of money needed to bring it current. Lease
the property for the payment amount only. Now the
foreclosure is stopped and you can sometimes do a
refinance loan based on value, not cost…especially
if you find the option in the 13th month
of holding.
4. Option. Option the property for the amount of
money needed to bring it current. That will buy you
time. Then get a hard money loan for what it will
take to buy it AND fix it. Now you are in at minimum
down and better set up for the next move…refinance
or sell.
5. Take “subject to.” The down payment is enough to
bring them current and you take the property
“subject to” the existing loan. Additionally,
you add three magic things to the contract that are
legal and those three things increase the contract
price by about 20-30 percent. (Yes, you will have to
come to one of our seminars to learn about them.
I don’t want a 22 page e-newsletter!)
Now, when you refinance later it is much easier to
get all the money you have in the deal out again.
Bottom line…if you know how lenders lend and what
they will and will not do, you know better when to
bring what kind of lender to the table.
That is why we have changed our emphasis to
financing. It seems to be the weak spot in the
knowledge bank for most new people.
Also, if you are willing to really learn the
financing side of the business, you can make money
there as a loan originator. It is the best second
income for an investor I have ever found!
Questions & Answers
Q. I would
like some information about partners that want to
invest in rehabs. I will do the work but need
financial backing. I am located in Lebanon,
Tennessee and currently own my own home and a
duplex. I have found a property that I want to put
an offer on but need to research financing. I am
self-employed, starting to become an investor full
time.
I saw on your
newest Web site, RealVestFunding.com, that you do
joint ventures. Would this be what I need?
Thank you,
Linda
A. Thanks
for your interest but we do not do
one-house-at-a-time projects. The joint venture
financing we had in mind is for projects such as a
subdivision purchased all at once, etc.
I have one
“Platinum” student that can go between $1 million
and $5 million. Another at $3,000,000. Most deals
that take little cash, like $500,000, we do
ourselves or do a small syndication.
If you want backers
for single deals, try newspaper ads or talk to local
contractors that might want to buy houses from you
wholesale. Anther great source is your local real
estate investors group. Most have a waiver of
membership fees for the first time visitor.
Do like I did a
month ago. I started talking to my barber. This
deal took $90,000 and I knew he could get it. He
was lukewarm but mentioned a person that had helped
him do his last deal. I called that person up and
got where I needed to be.
You’d be surprised
that the people you know may not be prospects, but
the person THEY know might be…and he was!
Also attend free
financial lectures. The insurance people have them
all the time in the best parts of town. They invite
the people in the richest ZIP codes to attend.
I had a student
once that put out fliers at a meeting on estate
planning held by the local Junior College. He got a
call from an attorney that had a condo for sale…very
cheap.
Seems the dearly
departed had the condo for his girlfriend and no one
wanted the wife and kids to hear all the details.
He was told to dump it and he did. My student made
$100,000 on a zero down deal. The lawyer later
became an investor in several other deals.
One nice thing
about sticking with the business is that over time,
you get better, your circle of acquaintances gets
richer and the deals get easier to understand.
That is a good
place to start.
BZ
Q. One of my
insured’s wants me to buy his old downtown, 1890,
rental property. Mercantile first floor and
apartment upstairs. Both floors need modernizing.
I am beginning to think I do not want to take on
anymore projects that take a lot of work. The
front looks pretty good, it is downtown and I can
get some Main Street money to fix up the front of
the building, $5,000. Owner wants $52,000 and
maybe will take a little less. Depending what
a person wants to do with the first floor, could
leave as is and have cheap rent, $400, or restore
original plaster walls and sheetrock 14 foot
ceilings, install hardwood looking floor plus new
bath and heat/ac system. Then could maybe get
$700/m to $900 rent. It does have a hand rope
elevator from the basement up to the second floor
that works. It could use a good flat roof, $5-7,000
of work. Just
wondering if this is a good deal...
Your Friend,
Jim
in Missouri
A. You’re a
businessman. Add the cost of all the improvements
back in to the purchase price. This will tell you
what you will really have in the building. Then
figure out how much of all this has to be cash out
of pocket from you. Then look at the income you
would get versus the investment you just made.
Don’t use numbers assuming that you will do the
repairs yourself. It takes too much of your time.
Therefore, you need to add in the cost of HIRING
the stuff to be done. If, after all that, it gives
a nice rate of return, you can always decide to save
a buck and do some of the repairs yourself.
This will give you a full picture of what you are
getting into.
Also, take into consideration…will this be an easy
to rent property in the future? From our phone call
I assume it will be. However, when you are figuring
income, make sure you get a realistic vacancy figure
in there. Lastly, where will you get the money?
I
know you most likely have it stashed away. But for
a small deal like this you will most likely be going
to your bank. Get a quote from them before you sign
anything.
Get
a look at the full picture, then decide. Since you
own a few rentals in town now, this would seem to be
a good addition.
BZ |
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Q.
Dear Mr. Zick, I
hope you’re feeling better. I met and spoke with you
briefly at the All Fund Mortgage Las Vegas
gathering. My business partner and I are part of
Karen's down line here in Denver. We are excited
about the prospects.
The reason for my email to you is to inquire further
about your finance company, Realvest. As part of my
network with other real estate investors, I think
there is an opportunity to originate loans for
5-plexes+ as well as construction loans. In
particular, I wanted to learn further about the
underwriting requirements and loan programs for: 1.
Purchases of 5-plexes+ and 2. Condo conversions --
purchase and construction loan to rehab and sell off
a unit at a time. Is it permissible to obtain
releases to sell off units at a time during the
construction period?
An investor group in Denver is pretty active in
condo conversions. I would like to give them a pitch
on Realvest if it would be a good fit. I look
forward to hearing from you. Take care.
Regards,
Mark
A.
Do you have a builder in
mind that is doing 5-plexes? It is a niche market
but it has to have a builder that is good at buying
site for it to work. Let me be blunt. Given time and
reason, we can do almost any loan that can be done.
The problem is that we are not getting loan packages
from our students; we are getting "what if..."
emails. You might be past the “what if” stage but it
is hard to tell on this end. Here is what works best
for me...send us a short summary of what you want to
do, time limits, amounts and roadblocks. It can be
one to three pages. If you are serious, you will
need this anyway for whomever you talk to. We can
pass a summary by our sources more easily too.
You have to realize that bigger is better for us.
Out of the way loans, like this, hopefully will be
in the $2.5 million range on up. If it is a local
(Houston), commercial loan on an existing rented
building, a loan as low at $500,000 would not be a
problem.
BZ |
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Record Number of Metros Show Double-Digit
Home-Price Gains
(February 15, 2005) --
A record number of metropolitan areas showed
double-digit annual price appreciation in median
existing-home prices in the fourth quarter, and the
overall pace of annual price growth accelerated from the
third quarter, according to the latest survey by
NATIONAL ASSOCIATION OF REALTORS®.
The association's fourth-quarter metro area home price
report, covering 129 metropolitan statistical areas,
shows 62 areas with double-digit annual increases in
median existing-home prices and only four areas posting
modest price declines. The previous record was 49 metros
showing double-digit price appreciation in the second
quarter of 2004.
The national median existing-home price was $187,500 in
the fourth quarter, 8.8 percent higher than a year
earlier when the median price was $172,400. The median
is a typical market price where half of the homes sold
for more and half sold for less. In the third quarter of
2004, the national annual rate of home-price
appreciation was 7.5 percent.
The strongest price increase was in the
Las Vegas area where the fourth quarter price of
$281,400 rose 47.3 percent from a year earlier. Next
came the Riverside-San Bernardino area of California at
$322,400, up 34.7 percent from the fourth quarter of
2003. Third was the West Palm Beach-Boca Raton-Delray
Beach area of Florida, with a fourth quarter median
price of $338,800, up 34.0 percent in the last year.
Median
fourth-quarter metro area resale prices ranged from
$87,800 in Beaumont-Port Arthur, Texas, to more than
seven times that amount in the San Francisco Bay area
where the median price was $656,700. The second most
expensive area in the United States was Anaheim-Santa
Ana (Orange County, Calif.) at $627,500, followed by San
Diego at $569,900.
Other low-cost markets include Springfield, Ill., the
second least-costly area, at $93,600, and
Buffalo-Niagara Falls, N.Y., with a fourth-quarter
typical resale home price of $94,800.
—NAR
Reprinted from REALTOR® Magazine [February,
2005] (http://www.realtor.org/realtormag)
with permission of the NATIONAL ASSOCIATION OF
REALTORS®. Copyright 2005. All rights reserved.
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.
Go to
Realvest
Funding for more information about financing.
Register
for an Options Boot Camp at
http://www.zick.com/speventreg.html.
Register
for a "How to Finance ANY Deal!" Boot Camp at
http://www.zick.com/FinanceAnyDealBCreg.htm.
Register for a
Mortgage Business Builder Boot Camp at
http://www.zick.com/MortgageBCreg.shtml.
Register for a FREE
"Financing Your Next Best Deal" Help Day at
http://www.zick.com/HelpDayreg.htm.
Register
for a FREE Freedom Equity/All Fund Mortgage TeleHelp
Call at
http://www.zick.com/telehelp_freedom_equity_recruiting.htm.
Questions?
Send
us an email
or call 800-677-3253.
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
three fantastic three-day Mortgage Business Builder Boot
Camps.
The first one was in Chicago in September. The second
one was in Houston. The third was in San Diego in
December.
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 at
www.zick.com and we will follow-up or do it by
calling our office 800-677-3253.
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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"Financing Your Next Best Deal" Help Days
We
will be in Orlando on Saturday,
March 12th
and in Tampa on Sunday, March 13th. Join us
in Houston on Sunday, March 20th. Come
learn the latest techniques in buying properties.
Go to
www.zick.com and click on the link on the
home page to enroll. It is free!
Or, click here to
register:
"Financing Your Next Best Deal" Help Day
Upcoming Events
Don’t miss uS on March 5th at the
Houston RICH club
and in Los Angeles at the
REICLA Meeting
on March 8th
Need more information?
Send us an email or call our office at 800-677-3253.
ONE-DAY EVENT TO BE HELD
IN LOS ANGELES, SATURDAY MARCH 26TH
Sheraton Gateway Los Angeles
Airport Hotel
6101 W. Century Blvd.
Los Angeles, CA 90045
310-642-1111
8:00 a.m. – 5:00 p.m.
Special pricing available for REICLA members.
Announcing a Negotiating Seminar from
Barney Zick that will use Real Estate Options (and other
Financing tools) as an example to show you how to make
more money when you buy!
“Barney” Zick, MBA, CCIM, Real Estate Investment Banker
will share the secrets of successful deal making so you
can attack any situation with confidence.
WHAT YOU WILL LEARN:
·
How
to negotiate and structure an option that does away with
the seller’s worry that prices might continue
to go up!
·
How
paying an extra $10 for a deal might save you over
$50,000 in court ordered losses!
·
About a special group of Californians that will allow
you to tie up properties for pennies on the dollar,
giving you huge long-term profits. All you need to know
is the magic words to say.
·
How
to buy properties with an unlimited supply of down
payment money, without interest, and without a credit
check or personal liability.
·
The
"Magic Words" to say when buying for nothing down that
overcomes seller objections and makes the negotiations
go smoother.
·
How
to get both low down AND low interest.
·
The
techniques pros use, like "the Shout Back,” and also
what to do to shut them down when the tactics are used
on you.
·
How
to get sellers to tell you their real motivations for
selling.
·
How
to ask the question so that the seller will tell you
what is REALLY wrong with the property.
·
How
to ask question that will get the seller to unknowingly
tell you how to structure an offer.
·
A
simple technique that will make the other side afraid to
continue asking you to give in more and more.
·
Learn how to present Lease Options to buyers so that
they will not want to negotiate.
·
How
to get ZERO PERCENT FINANCING!
·
How
to make $5000 a month without going to work!
·
How
to buy for nothing down AND give the seller cash!
·
How
to gain control of the cash you need to exercise your
options.
·
How
to double the chances your tenants cash you out.
·
How
to make sure they don’t cash you out if you want to keep
the property.
·
How
to get quick cash for estate-building option deals.
·
How
to get Zero interest financing.
·
How
to use Rolling option & first right of refusal options.
·
How
to use options when the seller is in foreclosure.
·
Tax
tactics with Options
·
Options and Bankruptcy - a chance to save your net
worth.
All new for 2005!!
"How to Finance ANY
Deal!" Three-Day
Boot Camp
San Diego
Rescheduled for May 20th, 21st
& 22nd!
All new for 2005! Learn it all in one place at one
time. “Barney” Zick can show you...
“How to Finance ANY Deal!”
Announcing the most
in-depth, intensive three-day Boot Camp you can imagine
on real estate financing designed for people who are
successful, aggressive real estate investors (or aspire
to be someday soon)! Investors know CASH IS KING and
owner financing is the QUEEN!
As a real estate
investor, there is nothing like having the ability to
know what investing approach to use, know how to
structure it, and know how to present it to the seller
and get it closed. Being able to cash out properties is
the “grease for the wheels” of this cash intensive
business. The three roads to financing will be
taught...Lease Options, Owner Carried Loans and
Conventional and Hard Money Loans. You will also get an
opportunity to sign up and receive hands-on training
about becoming a loan originator in order to add another
cash flow stream of income.
SIGN UP TODAY AND PAY
ONLY $695 of the $2,195 fee. The balance will not be
due unless you complete a successful deal from what
you have learned! How can we do this? We strongly
believe that you will learn what you need to know for
success and that you will easily do a profitable deal
right after attending! This way we have more at
risk than you.
That’s right; if you
don't make money we don't get paid the balance of the
training fee. The entire program can be self
funding! You will make money from what you learn…paying
you back more than the cost of training. All you have
to do is USE these ideas and we will show you how!
At the three-day “How
to Finance ANY Deal” Boot Camp we will send you out to
investigate deals and sign them up. Then when you come
back, we will fine tune your presentation to make
getting more deals easier.
We have
a two-day Mortgage Boot Camp coming up
April
7th & 8th in Colorado.
If you have a certificate for a Mortgage Boot Camp, or
the right to come as part of a package you purchased,
please contact Karen Zick at
karenfayj@hotmail.com for details.
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.
The
Fine Print...
We will
do one newsletter like this one (Advice for the
Impatient Investor) and one called the Zick Home
Loans & Realvest Funding Mortgage Report,
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 fifteen years (but
not in a row). The next issue should be out about April
1st. The next Zick Home Loans & Realvest
Funding Mortgage Report will go out on or about
March 15th.
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 © 2005 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.
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Address:
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Website:
www.zick.com |
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