How to Wholesale a Hot Smoking Deal For 5 Figure Profits

5 Figure Assignment Fees may be hard for some people to believe in today’s Real Estate Market. Believe it or not, they are still out there for the active, persistent and methodical real estate investors, even the first-timers!

Wholesaling

Wholesaling is the art of finding and assigning properties. It can be so appealing to new investors because there is very little cash required to support these types of deals and credit is not an issue. A new investor requires only a small amount of cash to cover earnest money deposits, advertising, etc.things like this.
Discover your mission, vision, or purpose in life.

Spend some time envisioning the type of lifestyle that fits your family and personality traits. Then begin to realistically set your goals based upon the vision.

Remember the basics about goals – they should be SMART GOALS.

S-pecific
M-easurable
A-ttainable
R- ealistic
T-imely

Aim for what really matters to you. Discover your mission/vision/purpose. and teach yourself how to set and persist to achieve your goals. To manage time effectively track your tasks consistently, so that you don’t waste time on non income producing activities. Visualize and focus on your goals daily to ensure that your actions reflect that which pertains to your goals.

What tools do you need?

The basic tools that you will need as a new wholesale investor are these:

* Cell phone – (preferably a PDA) with unlimited minutes, you’ll need them! This will help you to organize your tasks, records, phone numbers and synchronize with your computer.
* Computer – researching data comps and for marketing your wholesale deals
* Printer – print out contracts, contracts and any documents
* Camera – this is an absolute must have for creating your e-flyers to mail our to your database to sell your deal
* Contracts / Agreements
* Fax Machine
* Filing Cabinet – you’ll need this too.

As your business evolves, you’ll reach a point where you will find other tools and gadgets that increase your productivity and your profits.

How to find deals:

There are many places to you can locate deals and here is a list a few of them:

* Vacant Houses
* Title Companies
* Home Inspectors
* REIA Clubs
* FSBO’s
* Bankruptcy Attorneys
* Homeowners Associations
* Burned out Landlords
* Bail Bondsmen
* Code Enforcers
* Hard Money Lenders
* Meter Readers
* Waste Management
* Divorce Attorneys
* Probate/Trustees
* Tax Offices
* Garage Sales
* Estate Sales

** Every time you go for a ride, take a different route to get to know your neighborhood, the properties, comps, vacants and utility workers.

Once you’ve made contact with a truly motivated seller- you’ll make them an offer on that property based on the comps, repairs and your desired profit.

Quick Calculation of the Maximum Acceptable Offer: (MAO)

MAO = (ARV x.65) – RC – CC – AF

ARV = After Repair Value
RC = Repair Cost
CC = Carrying Costs
AF = Assignment Fee

Assigning The Contract

The most important thing to do here….in the money step is to be very clear that you’ve contracted to purchase the property as “your name….and/or assigns”: By placing and/or assigns after your name, you’ve ensured your ability to assign the deal to an end buyer. Although a contract is usually assignable unless otherwise stated, I would hate for you to fall down on the money step by leaving it to happenstance. Once you have an executed purchase agreement with the motivated seller that contacted you and you’ve negotiated a hot, smoking deal with your and/or assigns on that top line…you are ready to find your buyer.

Note: In my contracts, “and / or assigns” is a part of the agreement along with the following clause.

Buyer shall receive a key within 48 hours and be granted access to the property to allow partners and contractors to evaluate it as needed. If the seller is still living in the house, I request access on pre-arranged days and times. When they won’t be there and this allows me to get my investors in to see the property.

How to help your buyers see the value in your deal

I try to make it as easy as possible for my buyers to access, evaluate and purchase my wholesale deal by doing the following. By having my contractor to come out and submit an estimate on the needed repairs (on his professional letterhead) can save my buyer/investor a great deal of time and guesswork and I also ask my real estate agent for some accurate comps on the subject property. Even though I encourage every buyer/investor to pull their own comps, perform their own due diligence, I’ve found that by doing these things, they are steps that aid in the process of assigning the deal.

So at this point, you’re so close to that meeting with your bank teller right?…hang on!

At this stage, you have the property under contract, you’ve got your estimate(s) for the repairs, comparables, photos, and you’ve got access to the property and your blank assignment of contact in your hot little hands. You’ve done a lot and you’re close.

How to Find a Buyer for your Deal

During this point, time is certainly of the essence and you’ve got to get your e-flyer made and sent out to your database, your craigslist ads, your for-sale-by-owner posts, directional arrows and a hard copy to bring to your local real estate investor club.

In my experience, they are many, many “want to-be” investors that read book after book, attend seminars and invest within the confines of their minds. My advice to my students is to weed out the tire kickers from the decision makers, early on before they have a deal. Create a performing database. It doesn’t have to include many, many names…. just the ones that know a hot, smoking deal when they see one and that will perform when the times comes to do so.

What day is it? Now it’s payday!

Your end buyer / investor will be exchanging a signed assignment of contract with you for a fee. They are paying for the right to step into your place and fulfill the obligations that you and the seller have set forth.

Collect a deposit from your buyer as you hand over the purchase agreement and obtain a signed assignment of contract. This will help you to separate the decisive, action taking investors from those that have a case of paralysis of analysis. If your buyer is serious about moving forward, they will have the wherewithal to hand over a deposit in good faith thereof.

Since it’s your deal, you would be using your title company who is most knowledgeable and skilled in the art of wholesaling properties and the manner in which you operate your business. You will provide your title agent with instructions about the remaining funds that will be released to you upon settlement. If your title company is not able to release those funds to you at that time, it’ll be necessary to execute an addendum with your buyer.

An addendum attesting to the fact that you will be both be at the closing and the buyer ( your assignor) must pay you in the lobby immediately following the closing, along with a Notarized Memorandum of Agreement would help to protect your interest.

Assignment fees can be very lucrative in certain markets. On my very first wholesale deal- the assignment fee was $7,000 and I had never done it before….so not bad right? My third wholesale deal allowed for a $40,000 fee because it was a hot, smoking deal. The buyer, a contractor was thrilled to get that property so that he could rehab it and make his profit.

Hot, Smoking deals are out there….if you’re not paying attention, you’ll bump right in to one of them!

So, with that- see your vision, steady yourself, prepare with vigor and head in that direction with renewed energy, confidence and persistence…and remember to enjoy the journey.

Karen Roberts

What Are the MLM Basics For Marketing Online – Tip 2

This is Tip 2 in the article series ‘What Are The MLM Basics For Marketing Online’. The first tip was that you need a system in order to market your business online. Without a system you would be spending a great deal of time and money trying to work out what to do. The next MLM Basics For Marketing Online Tip is also a biggy! Once you have a system in place, you need to get some Training! This is the biggest problem in Network Marketing. Although it is called ‘marketing’, no-one give you any marketing training. And when you bring your business online, it is all about the marketing.

So where do you go for training? Well if you took tip number 1, getting a system, you would now have access to training. Without the system, you could maybe try to find a mentor online who would be willing to give up his time to coach you. Otherwise you would have to learn from your mistakes, just like a huge number of people do online. The trouble with this is that you will probably do what you were taught offline and constantly spew out your information about your business. This is the way the amateur networkers work. It leads to people removing you from their lists of friends, because they are fed up of being sold to.

Training is hugely important for marketing on the internet.

If you consider that you would have to be trained for any new job, then it is just the same on the internet. You are very unlikely to know exactly what to do on your first day online. Everything you have been taught about the ‘old school’ methods of Network Marketing does NOT work online! On the internet we use Attraction Marketing to generate leads. We do not chase prospects around, we do not cold call anyone and we do not pester people as they go about their work. Prospects come to us, because they are attracted to us, not the other way round.

The system I use, Lead System Pro, has an unbelievable amount of training in the back office.

In fact one of the trainings, on Facebook marketing, is so popular that it attracts hundreds of people everyday to find out about our system! Because marketing on Facebook is so popular, and so many people are joining Facebook everyday, anyone with a business wants to find out how to market there. The Article Marketing training is also very highly sought after.

As well as trainings on all the social media sites, you will also need training about posting adverts, putting up banner adverts, how to do paid marketing such as pay-per-click and how to actually use Attraction Marketing. Once you have studied some of the ways to attract leads, you can start to generate leads into your system everyday. The best thing to do when you are just starting is to learn to master just one or two methods of lead generation. When you are getting 10-20 leads a day from your efforts, you can continue to do that method, but also get some training on another method and stick at that until you have mastered that one too.

Eventually you will have built up several different ways to attract leads into your business. But all this takes time. Do not give up after a month or two, because it does take time to understand marketing online completely. You may feel that you are doing everything you have been taught, but you are not getting the results you hoped for. It could just be one little tweak that makes all the difference. Just go over the training again, and see if you can pick up something you may have missed the first time.

And then just keep going!

How You Can Get New Customers Without Paying a Dollar, Dime Or Penny For Marketing

How You Can Get Hundreds or Thousands Of New Customers With A No Risk Partnership System
Why do you want to go to all the expense and hassle of finding new customers? There’s a much faster, easier and more cost effective way. There are lots of companies that have already done the hard work for you. They have spent the marketing money, they have sold to the customer and they have established a bond. You need to learn how to feed off these hosts.

This does not mean that you have to go about your feeding in a shady way. Far from it. You want a relationship with your host where he endorses your product or service. Where he does the selling for you. To his expensively acquired customers.

When you order a book from Amazon, what do you notice when the package arrives? You will probably see to companies feeding off the host. Both Vistaprint and Laithwaites, (a wine company) are using Amazon to sell their products. Both of these companies offer their best deals.

This helps Amazon, because as an Amazon customer you are getting something of value. And it helps Vistaprint and d Laithwaites because they are not paying for marketing costs other than printing a cheap flyer.

What any company needs to do that wants to take advantage of this type of host marketing is ask this question.

Who already has customers or relationships with people that are like my best customers?
Once you have identified them contact those non-competing businesses and supply them with the information about your product, its quality and suitability and the testimonials.

Make sure that there is a logical link between their customers and what you are selling. For example, if you are an estate agent you may want to do mailings to solicitor clients that have recently come into property through inheritance.

What you need to do is get an endorsement from your host. Then you negotiate a fee which could be in kind services, donations to their charity or a straight percentage of sales.

How do you get other companies to accept your offer? Firstly, always make sure you can deal with the CEO or business owner of the host. This is because they are profit oriented. Therefore they are more likely to respond to your suggestion that

“You could make thousands of pounds from a deal, without any work”. Make sure you point out the following:

* Your product is non-competitive
* It’s going to be sold to a list they have already used, so it’s new money to them
* They don’t have to spend a penny or do any work
* You’ll guarantee any items sold
* You’ll provide all printed material and pay for the postage and marketing costs, (unless they want a bigger piece of the action and pay for it)
* They can have all sales verified and even sent via their offices for verification

If all this sounds too simple to be true, well there are a few things that usually crop up

Most often it is the fact that host won’t understand what it is you are offering and you’ll have to do a lot of explaining – you’ll have to explain the potential profits to his company. You’ll probably have to offer a very good deal because this makes the host look good.

There is no rule for who gets what in the host marketing pay off. Often the beneficiary company has to pay marketing costs, which can be very small and pays a commission to the host. It can be 20% or 100% it really depends on customer lifetime value of what is being sold It’s all down to negotiation and making a deal work for both parties.

And if you want to be a host you just reverse this process. Find companies who want to sell products to your customers and negotiate the deal.

What happens if the host has an ongoing relationship with their customers? Well here you have to be really careful to demonstrate that you will not be taking any revenue away. And make sure you come up with a good deal and explain the options. Maybe a fixed fee or a continuity commission over a long period of time or money per lead.

Show your host what he might make by working with you. For example, you can mention what you think a deal might be worth if things work out as you expect.

Hey Mr Host, I expect that I may be giving you a cheque for £27,000 in six months time how does that sound. What would you be able to do with that money every six months? After all the host is going to be constantly bringing in new clients that you can market too as well.

You can also explain what they might get with this money, expansion, equipment, and staff
You can also show how doing a deal like this will enable them to see just what leverage they really have with their clients.

Remember the host has spent years of time and money building up his client list. Don’t be cheap with the commission. The host benefits by making money he would not have had, he recoups some of his costs, and it also makes him realize there is more worth to this clients thus enabling him to spend more on advertising and marketing.

Can you find another product to sell to your clients to make more money?
Can you find another company with clients that want to buy your product?

It’s even possible to do deals where you don’t have anything to sell. You go to company a and get 25% commission on sales that you place with host company b, who also give you 25% – hey you’re in business!

So what is going to get in the way? Well hosts might think they will lose money. That’s natural – so why not offer to do a test to see how things go on a small sample. Also if the host is worried about losing control, then you just do everything you can for them to remain in control. You repackage the product, route sales through the host, give guarantees, and do it at a price that is right.

As the beneficiary Make sure that you get an exclusive on doing this business though. The test could reveal remarkable profits to be made. You don’t want to lose the opportunity that you have just taught someone how to exploit. As the host you don’t want a long term deal and exclusivity of course

Be honest and be conservative. Most people are afraid to do a deal where they give a lot of commission away so be aware of this. But you need testimonials that your deals work. So don’t be too picky when doing a deal.
This type of host/beneficiary relationship can also work with leads. How many companies stop marketing after the third contact? Most. But on average it takes 7 contacts for someone to buy. So if you can buy leads that have only be contacted 3 or fewer times for a fraction of the cost it would take for you to generate them, and then do it.

Take a look at any supermarket. You’ll l find shoe shops, learning centers. Pharmacies, key cutters, a whole range of stores that are feeding off the supermarkets clients. What are the services and products that complement precede and follow your product or services? Make a list of all the companies. Contact them and propose a host beneficiary relationship

Don’t try and does it in one go. A letter should precede the call. Set up a systematic sequence of letter, call, fax, visit, etc. Every contact should offer value and eventually the relationship will be such that it will boost your business.

The Best Family Travel Deals For Cinco De Mayo Festivals

Cinco de Mayo is the Mexican day of celebration paying tribute to the Mexican victory over the French in the Battle of Puebla in 1862. The day is celebrated all over Mexico, most noticeably in the capital city of Puebla and in American cities with high populations of Mexicans. Even if there is not a noticeable Mexican population, many towns and cities have started Cinco de Mayo festivals due to the popularity of the holiday.

Many think of Cinco de Mayo as an excuse to drink (tequila, or cerveza, is the drink of choice), but most street festivals are family friendly and are great family travel deals. The celebrations take the form of street fairs, carnivals and multi-day festivals! These celebrations can really add to family travel deals in city areas by teaching children about the Mexican heritage.

The cities with notable Cinco de Mayo festivals are mostly in the west, where Mexican populations are higher. these festivals are great for family vacations, even good for babies! Some cities around the country that are not only great family travel deals (meaning they are relatively inexpensive and have activities for the entire family) but have renowned Cinco de Mayo festivals are:

  • Minneapolis, Minnesota – The St. Paul’s West Side’s District de Sol is taken over for this festival, having a salsa-tasting contest, parade, sports zone, wellness village, crafts and history area. This is a premiere family travel deal for everyone in the family
  • San Marco, Texas – Not only does this family travel deal include the typical food and music celebrations, but it also has a Miss Cinco de Mayo and Little Miss Cinco de Mayo pageants, a parade, a statewide menudo cook-off and a salsa/hot sauce contest
  • Denver, Colorado – enjoy Mexican music, dancing and food in this 2-day long festival
  • Chicago, Illinois – Douglas Park is the place to be for festivals, music, food, games, kids area and cultural displays
  • Omaha, Nebraska – a crowning of a Cinco de Mayo queen makes this a family travel deal worth trekking out to Nebraska
  • Phoenix, Arizona – multiple celebrations throughout the city
  • Portland, Oregon – The Tom McCall Waterfront Park is littered with carnival attractions as well as Mexican food
  • Reno, Nevada – 100,000 visitors came this family travel deal fun and enlightening with Mexican and Latin music, food and cultural artists
  • San Antonio, Texas – The historic market square has concerts, food, music and other commemorations
  • San Francisco, California – The Mission neighborhood is taken over by health screenings, all-day cultural attractions, Lucha Libre wrestlers and a Mission Dolores tour
  • San Diego, California – Different areas of San Diego are participating in Cinco de Mayo celebrations; most notably the Bazaar del Mundo and Gaslamp

Don’t forget, Mother’s Day is right around the corner, and traveling to a Cinco de Mayo festival would be a great Mother’s Day gift!