Drip Market To Motivated Sellers For 2.5 Cents – Video 3


I’m going to show you how to drip market
to your seller leads and your buyer leads for 2.5¢ per message. Instead of having to
send out a postcard that costs you a dollar to send out, you can send out a text or a
voice blast that costs you 2.5¢ and you can also put them into a drip system that sends
them a sequence of messages over a period of time.
The Automarketer is actually set up with sequences already in place. We’ve got a three-month
sequence for For Sale By Owners to help them, to make offers to them so that they will contact
us and allow us to buy their property on terms. And when we buy properties, by the way, we
buy them with no money down and in fact we’re not just able to buy these property without
using our money. When we close, we get money. So we set these structures up so that we get
money. And all this is taught inside the Automarketer.
You can also look at my blog and my other videos. I talk a lot about the For Rent Method.
I talk about the other Zero Down Structures. The whole hierarchy of zero down structures:
Subject To, Multi-mortgage, Land Contract, Contract for Deed, Assignable Cash Deal and
Lease Options. If you’ll understand how these zero down structures work, you can make
an offer on For Sale By Owners. You can make an offer on expired listings, you can make
an offer on absentee owners or any other type of seller lead that you come in contact with.
The Automarketer is actually set up so that you can create your own campaigns if you want
to, or you can use the preexisting templates that we use, that we have tested and tried
over the years that work very effectively. Let me how you how the drip campaigns work.
Let’s take a look. I’m logged into the Automarketer now, and
if you’ll remember from the last video I showed you the Automarketer, Zillow Automarketer,
and showed you how the campaigns work, how they scrape leads and how they put them into
the system and how they send them out with a campaign. In this video, I’m going to
show you how to use the follow up campaign that will, how we actually set up the follow
up campaign. So the system scrapes the lead, it then puts them into a campaign and these
campaigns will actually send out a series of messages. And they can be voice messages,
voice blasts. They can be text messages or they can be emails.
And the emails can only go out to opt-in leads. We don’t have a way to scrape leads from
craigslist or Zillow with emails. But we do have their phone numbers. So, what I’m going
to do is go into the Automarketer campaigns, because we’ve got different campaigns that
do different things. But I’m going to show you the Automarketer campaigns that are set
up. And let’s look specifically at the three-month
campaign because that’s the one that I was showing you yesterday and that’s the one
that we use the most. So, I’m going to go here and I’m going to actually – and you
can see here I’ve got 655 people that are currently in the Automarketer, and 1,700 of
them are in the system right now. So I’m going to look at the details of this particular
campaign. You can create your own campaign. You don’t
have to use this one and there’s a lot of different ways that you can create these campaigns.
And I want you to know right up front you don’t have to do this at all. This is already
set up for you. You don’t have to know this stuff, you don’t have to understand how
it works. You don’t have to do any of this stuff. I just want you to see what the capability
of the system is because it can do a lot more than you’ll probably ever need it to do.
And we set it up so not just, so that you couldn’t just send out the kind of campaign
we think you should send out, but you can send out a campaign that you want to send
out. Or, you could modify one of the campaigns
that we create. And we’ve got it set up here so you can actually clone our campaigns
and then you can go in and modify a campaign so you wouldn’t have to start from scratch,
or you can start from scratch. So, let’s take a look at what this means and how this
thing works. This is a campaign. You can see that there’s
14 total events. In this particular campaign it’s all text messages. But it could be
a text message, it could be a voice message where it leaves a message on their voice recorder,
on their phone. Or it can send them an email. It can also set up a task system so that we
can say here’s a task that needs to be done and have that message go out to one of your
team members and remind them that hey, you need to do this today, or you need to do that
today. And you can create templates of tasks. I’m going to show you how to do that in
a later video. It’s a very cool thing that will make it possible for you to completely
automate and systematize your business. It’s absolutely an amazing addition to this Automarketer.
But this is a text blast campaign that is designed for the Automarketer, for the scrape
ads, the FSBO scraped ads, of the For Rent ads that are coming in from the Automarketer.
And you’ll see here I’ve given it a title. We gave it a category so this in the Automarketer.
And I could set it up so that if, when this campaign ends I could have it start another
campaign. I’m not going to do that on here. I’ve got it set up as active. I’ve also
got it set up so that the email events, the mail events, oh, yeah – it also sends out
snail mail which I’m going to show you in a later video.
This will send out postcards, self mailers, letters – We Will Buy type campaigns that
all you have to do is click a button and it’ll send those things out. But I’ve got that
turned off. You can put them in a campaign so that you could do a series of postcards
that go out over time. It sends out text messages, I’ve got that turned on. And voice blasts,
I’ve got that turned off in this particular campaign. You can see I’ve got 2,400 people
that are active in this campaign right now. Now, as I scroll down the page, this shows
you the events that are going out. Again, it’s got 14 events. That means 14 texts
that are going to go out over a three-month period. Because I set this up as a three-month
campaign. And I can create new events on this and I can put as many in here as I want. If
I wanted to add voice blasts into this campaign I could. If I wanted to add snail mail into
it I could. I could add, you know, email into it as well and create these new events if
I choose to. But I just want to show you how these events, what these events look like.
So, on day one the first thing that gets sent out is a text that says, “I saw your home
advertised and I was wondering if you’d consider selling it” and this would go out
immediately. If I wanted to change this to go out over a period of time I could change
it to this and then I could change the days, hours, weeks months – how often it needs
to go out. But I’m gong to have it go out immediately. So as this campaign is attached
to a lead that is scraped it’s going to send out this text blast. “I saw the home
you had advertised . . .” If I wanted to modify this message, I could.
All I have to do is click on this little button here and it’ll open up this in a window
and it’ll allow me to change the text message that is going out. The second message that
goes out is on day four, and these are days that I decided. You can change them if you
want. I think this makes a lot of sense and you probably want to use the system that I
set up at least until you understand what you’re doing and are able to get going on
it. And it’s going to send out a different message on day four, with a URL this time,
that goes to one of the clone sites. This goes to the Rent To Buy seller site.
On day eight it sends out another. And again, I can modify these, change them, I can add
things to them and make that work. And down below, if I scroll down below, you can see
the activity log of this campaign. So, you can see all the ones that have been sent out
since you know, since I’ve been running it. About 40,000 text messages have been sent
out through this particular account to these particular campaigns that I’ve run in the
Automarketer. If you’re watching this video on YouTube
make sure to hit the subscribe button. If you click the one with the little bell, YouTube
will send you and email every time I release a new video in the series. If you go to JoeCrumpBlog.com
you can also sign up for my email subscription and you’ll get all sorts of free content
that I don’t have on YouTube.

My Business Allows Me To Help People And Communities In Need


My name is Malikah Woody and I’m originally
from Columbus, Ohio, but I now live in Tallahassee, Florida. I had been involved in real estate for some
time, just as a person who was a property owner who didn’t live on the property and
wanting to rent it out. But then over time became more and more interested
in the concept of making money that way, making passive income. And so over the years I would go out onto
the internet and search for information about how to acquire more properties and build more
passive income that way. By doing that, eventually I came across Joe
Crump’s website and I just really, I really liked the way that he spoke, the information
that he shared. He seemed really trustworthy, genuine, honest
with the information that he presented. And so I just looked further into his information
program. In order to make my first deal it really took
only a couple days. I started by using the Automarketer and calling
people who had responded to what was sent out. I ended up speaking with a person whose sister
owned the property, but the sister was not capable of being involved in its management
or care. So, I just talked with her, the person who
didn’t own the property, and her husband and tried to help them figure out what I could
do to assist them with what to do with the owner’s home. The home was in severe disrepair, the yard
was overgrown, they did not live in the same city and they were all up in age. So it was a burden for them to try and figure
what to do hours away with a property. And so I really just researched things that
Joe had suggested, different options, and found something that worked for them and was
able to kind of help solve their issue and help take that off their hands through finding
a buyer for them, getting it at a really reduced rate and getting it over to a buyer that way. What I consider to be the best deal so far,
actually it’s probably the one I just described to you. It was my first, but it was also the one I
feel most, I have the most sentimental attachment to. I made a smaller profit on that one, but I
felt like I made the biggest impact for everybody involved. So, on that deal I made $5,000, which is about
average still. In the coming year I plan on really ramping
up my business and I think that I’ll be able to hit six figures with real estate investing
in this way. Also, my person goals moving forward as a
real estate investor outside of my own financial security and stability, I really want to use
these methods to help other people and other communities. Really, that’s the best part of it for me. I would like to help regenerate communities
that are falling into disrepair, help people be able to learn how to take better care of
their finances, but also grow and establish legacies for their families. So, that’s really my long term goal. In terms of personally, I plan on leaving
my full time employment and being able to spend more time with family as well as travel. I know people who live in lots of different
countries around the world and I’m getting older and getting close to retirement age. And so I want to start moving into that phase
of my life where I can spend time traveling and volunteering. So, the impact that real estate investing
has had on my life, it has been freeing. It has allowed me to not have fear of financial
instability or fear of markets. It has allowed me to be independent. I used to be a stay-at-home mom. And having financial independence, even though
that wasn’t something I really sought, it is nice to have that and to know that I can
do things on my own and be really well financially off. Financially well off. It’s not currently being automated. I’ve used the Automarketer in the past. I have not used it the last probably two years. I see myself doing that, automating, again
though in the future. So, the event this weekend. I really hope to get some new information. I also hope to meet people. I’ve already been networking with other
attendees which is really easy to do here because everyone is so kind and down to earth
and easy to talk to. And we’re all here for similar reasons. But gaining knowledge, information and inspiration
from the other event attendees is the best take away for me. I would say jump in and do it. Don’t wait, don’t over analyze. Don’t allow yourself to not take action
out of fear. Go ahead, pick up the phone. Go ahead, figure out what you’re going to
say and say it. But also listen to your potential clients. Listen to your sellers, because they will
tell you even without you asking, they will tell you what areas they need helps with and
that allows you to then propose solutions. This is a family affair for me. I brought my little brother here today. I am significantly older than he is. I’m eighteen years older than he is. So, we did not really grow up together as
siblings in a traditional way. But he’s all grown up now, and graduated
form college and entering the work force and things like that. It is so exciting to me, the idea of being
able to share this opportunity with him. And we’re sitting at a table with a father
and daughter. The young lady’s in her early twenties. So I’m really excited to see other people
making this opportunity a family affair and recognizing how extraordinary it is to change
not only our lives but the generations that come after us.

Example Deals: 100% Owner Financed Real Estate Investing Deal Analyzed – Does It Make Sense In FL?


Joe: Hey, it’s Joe. I’ve got another deal
to analyze here. This is another email that I received. This one came from C.R. Harpe
in Florida. Thanks, C.R. C.R.: “I have a deal that has some good features
to it but I’m broke and have bad credit. I need this deal to get some cash flow coming
in and start replacing my income and allow my wife to be home with the kids. I’ve located
a grouping of duplexes that the seller is willing to sell with 100% owner financing
for $109,000 for each building. They’re rented and in good shape. I contacted a local realtor
that I found on Craig’s List and she drove by and said that they looked good and that
his rents are normal. If I can get my own financing, he’ll give me a 20% discount for
not having to carry the note. I cannot go to traditional lenders because my FICO is
596.” Joe: And these days if you want to get an
investment loan you’re going to need a 720 and you’re going to need to show income to
support those properties even without their rent. It’s very difficult to get an investment
loan these days. C.R.: “I found a private lender but most won’t
touch anything under $1,000,000. The only one that I found that will handle smaller
acquisitions will do 65% loan to value on the appraisals or purchase price, whichever
is lower.” Joe: This is hard money he’s talking about
here and I would stay away from hard money, unless you know for sure that you’ve got a
buyer and you’re going to be able to get out of that deal quickly. Hard money — I can’t
say it’s never profitable — I’ve used it and I’ve made a profit from it, but it eats
into your profits so much and there’s so many other ways to finance a deal than using hard
money. This is one thing that I guess I should reiterate — you don’t need cash to buy properties
if you find the right properties and go after the right types of deals. What so many of
you are doing are looking at properties that are not going to be available that way. This
one looks like it might be possible to do it on terms without cash or hard money because
the guy said he would finance it 100%. So let me finish the letter here.
C.R.: “The county has the building assessed at $121,000. For the three that I would like
to buy, the total comes to $363,000, so I would need to get $265,000 to the seller.
That’s not quite the 65% loan purchase price.” Joe: He’s talking about the 65% loan to value
that he could use for hard money — don’t do it that way. First of all, if you try to
show that you’re paying a certain price for a property, and if you’re trying to show that
you’re paying more for it than you are, and then getting the down payment funneled back
to you through the seller, that’s loan fraud. You’ll get yourself in trouble; you’ll get
yourself put in jail — so don’t do that kind of thing. Make sure that the lender understands
exactly what you’re doing and that all of it is revealed. We’ve done some very creative
stuff in the past where we have been able to do rebates and things like that, and all
of that’s legitimate as long as the lender’s aware of it and accepts it. I’m not just talking
about the loan broker being aware of it but also that it’s in the loan documents and that
it’s obvious that that’s what’s happening. Because the broker and the actual lender are
two different entities, and a lot of times a loan broker will just tell you, ‘Well, just
do this this way and that way and the lender will accept it.’ When in fact, what he’s saying
is that that way the lender won’t know about it and he’ll get his fee and you’ll get the
deal done, but you will have committed loan fraud. That’s happening less these days simply
because investment loans are fewer and farer between than they have ever been.
C.R.: “How can I structure this to get no out of pocket costs and still pick up the
property? He has 17 of these to sell total. He wants to do 6 at a time and here are the
details. Don’t share the address or the city as it’s so small that others can find it easily.”
Joe: The thing you have to know that he didn’t give me the information for is how much they
rent for. And he doesn’t need to know just the amount that they rented for. He also needs
to know what the history of the rent is. So you want to look at the Schedule E of the
owner of this property. Ask him to just send over the Schedule E of that property so that
you can see what he reported to the IRS. Typically he’s not going to report more than what he
made. So if you can see the Schedule E you can tell that he made x amount of dollars
over the last year. If you average that out then you can figure how much you can expect
to make with this with this particular manager in place. Can you keep that manager in place?
Is that manager a good manager? Can you talk to that manager and find out a little bit
about the properties from him? What kind of condition is the property in? How long have
the tenants been in there? How often do they turnover? All of these things are going to
be important if you’re going to buy these properties as investment properties. If you
are, and he’s willing to do 100% financing, can you do them using the hierarchy of zero
down structures that I taught you in one of the earlier videos?
Joe: In this case, we’re talking about doing a subject-to deal. Now does he have a loan
on these properties? We don’t know if he has a loan on these properties; we need to find
that out. If you’re paying $363,000 for these properties, how much in loans does he have?
If he has a total of $200,000 in loans on them and he wants the rest of his equity to
get the $363,000, and if he wants the full assessed value and you’re willing to give
that to him, and the numbers make sense because it has enough income to cover the payment
on that — let’s say he owes $200,000 on regular notes and he wants to get to another $163,000
in notes — you could do a multi-mortgage on this, and have him deed you the property.
You could make payments on the existing loan for that $200,000 and then you could make
a payment on another loan that equals $163,000 for these three properties to him personally
to where he has a mortgage on all three properties so that if you default he can take all three
properties back from you and protect his equity. Joe: There’s lots of ways to do this. The
next way down is you can do it on a land contract from him. He could just say, ‘Okay, 363. Do
a balloon payment after 5 years, x amount interest rate.’ Let’s say your payments on
that thing are $3,000 a month and the income on it is $3,600 a month and the payment covers
taxes and insurance and you’ve got to figure in your property management — do you still
have enough money to break even and make these deals work in the long term? And if you do,
and they’re good selling investment properties, do you keep them yourself at that point or
do you want to try to make another chunk of money and maybe sell them for $5,000 more
to an investor who gives you $5,000 for each duplex so that you make $15,000 on the deal
and then turn it around and sell it that way? You have to — because then you can show,
if the investor only has $5,000 on each of these deals and they break even and again,
remember what we talked about in depreciation on long term investment and how properties
go up in value and you can take deductions even if you’re breaking even, it’s going to
make sense if they pay off over a period of time.
Joe: What you want to try to go for when you’re making this offer to this guy is to get as
long a term on these loans as you can. I don’t think I’d do it for 5 years, I’d want to try
15, I’d prefer 30 years — I want to be able to pay these off over a long period of time
so that I know that they’re advertising. And if there’s enough money to make them pay off
sooner than that then obviously you want to pay them off sooner than that so that they
start cash flowing for you personally. I hope that helps.

How Do We Deal With Artificial Intelligence In Real Estate?


Hey, it’s Joe Crump. I’ve got another question here. This is from John Canada. He says, “How can we cope with AI in the
real estate business?” I’m not really worried about coping with
it, I’m excited about using it. Because AI is how we built the Automarketer. It’s a pretty smart system, and it goes
out there and finds the properties that you want. You have to put a little bit of input in there. It analyzes the responses that come in, let’s
you know whether they’re a yes or a no, it puts them into the appropriate follow up
system once they know that. It notifies you that somebody is interested
in the property so that you can call them and put the deal together. So that AI does a lot of the work for you. If I look at all the work that I had to do
before I had the Automarketer versus the amount of work that I have to do after it, 90% of
my work has disappeared. The other 10% still has to be done and I have
most of that done by outsource workers. So, I have somebody working for me as an admin
person, somebody working as a buyer finder, someone working as boots on the ground and
sometimes working as a seller finder as well. So, those different tasks, that’s about
10% of the work and then the other 90% of organizing and keeping track of all this stuff,
making sure everything goes out as it should, doing the marketing, which is the main purpose
of any business. If a business isn’t marketing it’s not
in business. So marketing is the main function of a business. Nothing happens in business, as Peter Drucker
said, until a sale is made. So, and marketing is what drives those sales. Everything else besides marketing and innovation
is an expense. So, marketing is the only real profit center
you have in your business and as long as you’re doing that, you’re in good shape. That’s why you want good AI, you want good
automation, you want a good system to do that work for you and that’ll keep you moving
forward. All right. Hope that answers the question.

Structuring Deals #1:”Subject To” Deals


Hey, it’s Joe Crump. In this series I’m going to do, I’m going
to explain the different zero down structures. There’s five of them that I’m going to focus
on that encompass just about every different type of structure that you can use. And there’s a hierarchy based on the type
of offer that you’re making, whether you’re buying or whether you’re selling. I’m going to try to explain some of those
things in these videos. The first five videos in this series are going
to be explaining each of those different structures. So you’ll probably want to listen to them
all eventually, one after the other. But right now we’re going to trickle them
out, you know, once a week or whatever, and you’re going to be able to listen to them
that way. After that, I’m going to do some example deals
and I’m going to show you here is a situation, here’s how much they want for the property,
here’s how much it’s worth, what kind of offer can you make on it that would work as a zero
down structure that would make you money. So that’s how I’m going to go through this
next series of about 15 videos or so. So let’s start, first of all, with subject
to. What is buying property subject to the existing
loan? Essentially, what you’re doing is asking the
seller who already has a property and has a mortgage on that property to transfer the
title to you. Transfer the deed to you. And so they sign over the deed to you, you
take over the property, and you start making payments on their existing loan. You’re not going to qualify for that loan,
you’re going to take over that loan payments. You’re also going to transfer the insurance
into your name and you’re going to start making the tax payments as well. So you’re going to be paying principal, interest,
taxes and insurance on that property. And you’re going to go out and find someone,
probably, to lease option that property. And they’re going to make payments to you. So you’ll, let’s say you have a property and
it’s got $150K mortgage on it and it’s worth $160K. You turn around and sell it for $165K,
$170K maybe. You get $5,000 as a down payment and you’re
going to get let’s say $1,200 a month for the income for it. But the payments on it are $1,000 so you put
$1,000 towards the payment, the PITI, plus you take $200 for yourself as cash flow for
that property. So that would be one scenario where you could
keep this property and pay it off over time, using the existing loan on it, getting, having
no money into it, making $5,000 pretty much when you close that deal because you’re not
going to close it until you find a lease option buyer to move in. So you’re making money immediately on it. But the way you’re taking control of that
property is having the title. This is the strongest way to buy a property,
having control of the title and not having your name on a loan. Now you don’t have to qualify for the loan,
you don’t have to have good credit, you don’t have to have any down payment and you have
full control over this property. The seller has no control over that property. You now have control over it. If you don’t make the payments on that property,
you trash their credit. So you’re obligation, your ethical obligation
is to make sure you make those payments. If you take that property, start collecting
rent on it, don’t make the payments, that’s considered fraud and they can put you in jail
for that. So don’t do that. It’s also not the right thing to do. I’ve seen people do it before. I’ve also seen a guy go to jail for it. So make sure that you do this properly and
you watch out for the people who you’re buying the properties from. If you get into a position ever where you
can’t make the payments, my promise to our sellers whenever I take a property from them
is that they won’t ever have to worry about this again. But, I tell them if I ever get into a situation
where I can’t sustain this property for whatever reason, I will give it back to them in as
at least as good a condition as I what I took it over at. And I won’t have, you’ll also get it back
without the payments being late. So even if it’s a few days before the next
payment is due, I’m going to do that. And if the next payment comes do, then I make
that payment so that they, so it’s never comes late on them. So you have to take responsibility. So by learning these things it gives you a
great power and with great power comes great responsibility. I feel like Spiderman’s dad, or grandpa. Anyway. So, use this stuff wisely. It is the best way to buy property and you
can build a whole portfolio. The likelihood that you could put together
ten of these $150K properties in one year, one a month even, is very high. That means that you just built $1.8 million
worth of property and it’s probably worth more than that. So, you can probably get close to $2 million
worth of property in a year doing it this way. I’ve had lots of students that have done it
that way. And a lot of these things you can get with
some equity in them. A lot of times you’re buying them without
any equity where you, like I said, you get $150K mortgage, and it’s got $10,000 of equity. Okay, $10,000 of equity isn’t real equity. You can’t turn around and sell it and pay
a realtor and get out of the deal. You’re going to have your expenses to sell
that are going to be higher than that. But if you keep the property, you’re going
to get some benefits from it. You’re going to, every month, you’re going
to get a buy down on that note, you know, ,maybe it’s a couple of hundred dollars down
on that note. You’re going to get tax depreciation which
is over 27.5 years on the tax basis of that property so it’s about 3.64% of the improvement
value of that property. So, on a property like that you’re probably
talking about, I don’t know, $4,000 or $5,000 a year and, which is you had, you’re in a
30% tax bracket, that means you’re making about $1,500 per year in you know, your tax
benefits. You’re also going to get appreciation on that
property. The properties typically go up over time so,
if it goes up just 1% in a year, it’s gone up another $1,500 in value. So you get the buy down on the note, you get
appreciation, you get depreciation and of course you get the rental income on the property
as well. And eventually, and you’re also going to get
the lease option fee. So anytime somebody buys it on a lease option,
they’re going to give you a down payment. So, let’s say they give you $5,000 and you
can get anywhere from $5,000 to $15,000 on a deal like this, on a lease option. Let’s say you get $5,000 so you get that cash. You probably want to put that in an escrow
account and hold that as a reserve because you’re probably going to get that property
back. The likelihood that they’re going to exercise
that option when they buy it is very low. Less than 30%. And if they do, then, and you sold it for
$165K, that means they still owe you $160K on it, you owe $150K, they give you $160K,
you get $10,000, you make a profit if they buy it. If they don’t, you get the other benefits
of owning that property as a rental property for as long as you own it. And you’ll pay it off eventually. If it’s 20 years left on the mortgage, in
20 years it’ll be paid off. If you’re making more cash flow on it and
as time goes by, you’re rents go up typically, and as your rents go up, you could start paying
more down on your principal and pay it off instead of 30 years you could pay it at 20
or instead of 20 years you could pay it off in 10. And you can get to that place where those
things are paid off a whole lot quicker. Or, you can just keep the cash flow for yourself
and use that to live on. Just make sure you keep a reserve on these
properties. I’ve seen too many people buy a bunch of subject
to properties and then they’d have vacancies and they wouldn’t be able to make their
payments because they spent all of the money that they got in lease options to live on. And that’s a mistake. So, don’t get into that situation because
you don’t want to default on these properties if there’s any way that you can avoid it. And you don’t want to have to give it back
to that seller later if you can avoid it. One thing, though, when you do have to give
it back, if that ever happens, it won’t damage your credit. It won’t cost you anything other than what
you promised them that you would do which is keep it current. So, that’s how you do a subject to. That’s the basic structure of this and all
it takes is them deeding you the property. Now, we have a whole package of documents
that we ask them to sign, you know, disclosures, and you know, giving us the right to have
control over the insurance policy, you know, those types of things that we have on every
subject to property that comes through. We also have the right to talk to a lender,
which we get in writing, we ask them to give us the password to their online account, their
bank account that shows the mortgage account so we have access to the mortgage. We can pay it online if we want to and do
it that way. One of the things I’ve talked about in previous
videos is the due on sale clause. A lot of people are concerned with subject
to because of the due on sale clause. Every lender has, or every mortgage has a
due on sale clause that says if you transfer that property they have the right to foreclose
on that property. There’s some ways around it by using a land
trust or doing things like that or hiding the fact that it got transferred from the
bank by not recording the deed, you know,. We’ve done those things as well, but I’ve,
we’ve done so many of these subject to’s, hundreds, and with my students, thousands,
and when I look at over all the years that we’ve done this for, I’ve never seen one bank
every foreclose using the due on sale clause as its reason. So, I wouldn’t worry too much about that happening. Of course I can’t give legal advice. I’m not an attorney, so, take my advice as
from my experience, not because I legally have the right to give you legal advice. I don’t. I don’t even play one on TV. So, anyway, hope that helps. That’s subject to. Next time when we come back, I will talk to
you about multi-mortgage as the second in the hierarchy. All right. Hope that helps.

My First Deal Earned Me $13,500


My name is Adam Campbell from Windber, Pennsylvania. I was doing some research on the internet
and couple other mentors online, looking through different scenarios. Joe seemed to share everything that he knew. He shared it very well and he portrayed himself
as a genuine person. The first deal I’m going to be making $275
cash flow a month and that ended up being a subject to deal. So, I’ll be, whenever that’s cashed out
I’ll be making no less than $13,500. So, it being my first deal, that one probably
took me in the neighborhood of thirty hours of work, I would say. I was all hands on deck when I started the
program and you know, didn’t limit myself to just the Automarketer. I would reach out to various you know, wherever
I could find houses for sale. So, I did, like, let go apps on the phone,
I did craigslist and basically a bunch of cold calling. So, that’s where I found my first deal,
on one of the cold calls. Went and saw the property because it was about
a forty-five minute drive for me. And so, yeah, I checked it out. There was an investor, another investor that
I learned that they were talking to at the time and they couldn’t get it, apparently
they were working with this investor for a couple months prior to meeting me and I explained
what – how we did it, and how I could help them sell their property. And they decided to give me a shot and within
the first day of marketing it, it was sold. So, yeah. For sure it was the first deal. It was originally going to be a lease option
deal and like I say, there was another party interested and I could sense that nervousness
with the sellers. So I went ahead instead of keeping it zero
down, I know that they, from conversations that I had the seller, they were willing to,
you know, they kind of gave me a figure because they wanted a boiler for their new house which
he said cost about nine thousand. So I just offered subject to existing mortgage,
plus the nine thousand. They called me an hour later and said let’s
do that deal. So, I was only going to make four thousand
dollars as a lease option. Now I’m making no less than $13,500 plus
the $275 a month. My goals moving forward are to acquire one
unit per month. So, having the tools in my tool belt that
Joe has taught me and you know, along the way he’s helped me, even, through emails
from, you know, within one day he’ll get back to me if I have a question. That’s what I like about being a mentor
– him being, mentoring me. He’s always at my disposal. Be it, it’s not just going after lease option
deals. It’s whatever I can help the seller get
out of their situation with. So, whatever structure best fits their needs,
now I can, I have a broader range of tools to use. So, the impact on my life that it has, it
definitely, it will help out financially. My goal is to eventually have this be the
primary source of income for me. I want to be a full time investor, eventually,
but you know, as of now I, like I said, I’d like to acquire one unit per month and eventually
build up to the point where it can exceed my expenses and become financially free. The most appealing aspect of doing this full
time is that it gives me the freedom, the freedom to do what I want, when I want. I can make the calls whenever I want, you
know, you know, I can spend more time with my family and just the freedom all around. I do plan to automate more. I started with the Automarketer when I began
this and that helps some, but still a lot of my time is spent talking with the buyers
and I realize the moneymaker is talking to sellers. So, I would like to definitely automate the
buyer side of it. The advice I would give to a real estate investor
starting out is just do it. Whatever you’re thinking about, just get
started. Doesn’t matter what it is, just do it. Additional information would be, you know,
it doesn’t have to be just the zero down structure. I still work with a real estate agent and
I still buy properties off the MLS. But this just helps add to that repertoire
of tools, like I said, to be able to help the seller one-on-one structure the best deal
possible.

The Single Hardest Thing To Learn As A Real Estate Investor



Hey, it’s Joe Crump. This question is, “What is the single hardest
thing to learn as a real estate investor? What’s the thing that takes the most time
to learn? What’s the thing that stops people from
succeeding because they don’t learn this one thing.” And that thing is learning how to talk on
the phone to sellers and make a credible offer. To be able to come across as honest, credible,
knowledgeable and above all, having a solution that is going to solve the problem of that
seller. If you’ll learn how to do that one thing,
you can feed yourself for the rest of your life. The problem is it takes a while to learn it. I find that it takes a hundred phone calls
to sellers, making offers, using the For Rent Method, which is what I teach to my mentor
students, doing that process a hundred times where you don’t get off the phone until
they say no at least five times. Every time they say “no” you ask another
question. And you have a list of questions, if you’re
using the For Rent Method, you have a list of questions that you can keep asking them. And eventually you’re going to get better
at it and you’re going to start listening to them and you’re going to start seeing
where their real problem is. And you’re going to learn how to diagnose
that problem. Remember, you’re a diagnostician as an investor. You’re there to help them solve a problem. If you’re not trying to solve a problem
for them, they’re not going to want to work with you. But if you’re going to solve their problem
in a way that makes you money and is the best possible outcome for them, then they’re
going to work for you. So, what you have to do is understand their
options. Later in this series I’m going to be talking
about seller options and I’m going to give you every seller option that’s possible
so that you understand what they are. Because most for sale by owners don’t understand
what they are. So that’s the thing that you have to learn,
and you have to get good at it. You have to be fluent. You have to sound competent. When you first get on the phone and do this
you’re going to sound like an idiot and they’re going to treat you like an idiot. So, be patient with yourself. Try to get better on every call that you make
and by the time you’ve gone through a hundred calls, you’re probably going to have a deal. That’s our average. Typically my mentor students will have a deal
within their first hundred calls. Sometimes people do it in ten calls. Some people take two hundred calls. But most people get through it and learn how
to do it within a hundred calls and they get good at it. Now, that typically takes a lot of time. When my mentor students sign up one of the
things I require of them before they sign up is that they commit to me that they will
put in eight to ten hours a week on the phone talking to sellers, making offers, doing nothing
else but that one thing. That’s the most important thing. And once they learn it, it’s a lot easier. They don’t have to put in that amount of
hours after that. But at the beginning, they’re going to have
to put in those hours if they want to learn this and start making money within three or
four months, which is the typical time that it takes somebody to learn this process and
get good at it enough so that they can actually put a deal together. Unless they get lucky, then sometimes it happens
a lot sooner. But even if they get lucky on the first one,
the second one they’re going to have learn, or third one. They’re not going to be lucky every time. So if you don’t learn this you won’t be
able to make it a sustainable business. And then once you learn how to do it and you’re
really good at it, then you’re going to be able to train somebody else to do it for
you so that you don’t have to do this for the rest of your life. And even if you do, instead of calling a hundred
people, you’re going to talk to ten people, or you’re going to talk to five people. Or you’re going to talk to three people. You know, when you get good at this, you know,
a 20% closing ratio is not unusual. And a lot of the students that I have that
have been doing this for a while, they can talk to two or three people and put a deal
together almost every time. Anyway, that’s the thing that you need to
learn, so that’s the thing that you can’t give up on. Learn how to talk these sellers in a way that’s
competent and you will make money. All right. Hope that helps.