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.

Are You Using VR In Your Real Estate Marketing? #485


Hey, everybody, it’s Aaron Norris
with The Norris Group. It is Friday, January 17th, and are you using these as part of your marketing? That and much more as we cover the biggest headlines in real estate. Up on the radio show and podcast, we’ve got Cary Pearce. He is in the mortgage industry and has been for 35 years. We talk about the state of lending, how it’s changed over the last couple of years, if it’s getting more risky, accessory dwelling unit financing and way more. So don’t miss that on the radio show and podcast this week. The Mortgage Bankers Association reported that the amount of available mortgage credit decreased in December by three point five percent. Mortgage delinquencies were at their lowest in 20 years in October with 3.7% of mortgages being in some stage of delinquency. They also reported a 3.2% increase in mortgage applications. And Freddie Mac says mortgage rates are now at 3.65% for 30-year and 15-year rates are at 3.09%. If you missed the newsletter, make sure to go on thenorrisgroup.com/turmoil. You’ll get a free look at our TNG economic newsletter, which is typically only for VIP subscribers. We go through county information, updates on iBuyers in several counties throughout California, and some of the things that we’re going to cover at Turmoil. So, thenorrisgroup.com/turmoil. It’s free. The video is up. Go check it out. A new report from ATTOM Data Solutions found that buying a medium-priced, three-bedroom home was more affordable than renting in 53 percent of the 855 counties analyzed across the U.S. In 36 of the 43 counties nationwide that had a population of one million or more, renting was more affordable than buying. This includes the nation’s largest cities like New York, Los Angeles, Chicago, Houston, and Phoenix. No surprise there. Cities where it was still cheaper to buy than rent include Detroit, Philadelphia, Cleveland and Pittsburgh. Additionally, three highly populated counties in Florida, including Miami-Dade, Broward and Hillsborough County, was on that list as well. With home prices rising in 67% of the U.S. markets, renting could become an even better option in the year ahead. Did you know there are currently 218 cities with one million dollar averages on a typical home? Yikes. Three more than at the end of 2018 and 74 more than there were five years ago. And did you know that more than half of these are in three metro areas? Bet you can’t guess what they are. Yep. L.A., New York and San Francisco. 46 in San Francisco, to be exact. 43 in New York, and 30 in Los Angeles. And in 2020, eleven more are expected to join the list. Five cities will lose their million-dollar status in 2020. They are – so I think it’s Kahlua, Hawaii, Milpitas, California, Harding Township in New Jersey, Daly City, California, and Fremont, California. Sorry about it. A story on Marie Claire this week says if you’re buying a home, you need to consider more than making your budget. Hidden costs can sneak up on you if you don’t pay attention. Of course, things like down payment and closing costs will hit you up front as far as things that you’re going to need in your budget. But second are the ongoing fees: interest, PMI, homeownership insurance, HOA, property taxes, and of course, renovations and overall maintenance. My favorite is air conditioners. Air conditioners do not like me. And whenever I buy a house, it invariably goes out in the first year or two. So you better be prepared for that. If you want to make sure you can afford your new dream home, you better follow these tips. 1. Save, save, save. 2. Improve your credit score. 3. And learn to negotiate, because you’re going to need that extra cash later. The future is here, and while it isn’t the future of my childhood cartoons and dreams like flying cars on the Jetsons, technology is allowing some really cool things in real estate. One of those is advances in 3D virtual reality tours. 2D photography has been used to make rooms appear larger than they actually are. 3D walkthroughs are designed to show people what it’s truly like in a home. They can see that from anywhere without having to be in the physical space. Show you the dimensions of a room, any angle in any view, has the freedom to look around. This is actually something we’re handing out. I guess this is the first time we’re announcing it. It’s actually virtual reality glasses. This is a Google Cardboard. So at the live event Turmoil, every guest will get one of these. You put your phone in it, and you’re going to be able to look
around the models in Florida, and I’m hoping to get a few accessory dwelling units, which should be really fun. So if you’re there, you’re going to get one of these. And it’s really interesting to see how a matter port – this is a matter port that we’re using in conjunction with this – how they’ve decided to include the virtual reality experience. I think virtual reality is going to have some very unique opportunities in the years ahead for marketing as well. I’d like to know if you’re including VR technology in your marketing. Love to hear what you got to say. What if I have a flip phone? Flip phone? You need a new phone. If you’re on YouTube, please leave your comments below the video, and don’t forget to like and subscribe to the channel. Hit that bell if you’d like to receive notifications when we have new videos come online. If you’re on Facebook or any other social media platform, please like and make sure to like the Norris Group page so you can find our content online whenever we produce it. Leave your comments below the video. Give us some love. And don’t forget to share. If we missed the story. Also, feel free to leave a link in the description below. We would love to see you out and about. Of course, February 1st we have Turmoil: The Coming Storm of Changes. We have been really excited to announce this last week that Chris Porter and Robert Kleinhenz is going to join our panel on profits in progress, while profits in politics is going to be featuring leadership in the governmental affairs and legislative industries around the builders, the Apartment Association, and the California Association of Realtors talking to us about what they got watered down in 2019 and what to expect in 2020. Turmoil is not all about a recession. Half the day is going to be on timing, and the other half is going to be where RISAs is going to pop up. That has nothing to do with the economy but could impact the economy. And that’s politics and change. So you won’t want to miss it, but we’re very excited to announce those. If you’re interested in signing up, go to thenorrisgroup.com/turmoil. February 10th: 6 Things to Succeed in 2020 with L.A. South REIA. March 19th is our Florida boot camp. So if you’re interested in attending, you’re gonna want to sign up early because you got some homework before we go. That is on our calendar. So you won’t want to miss that. April 1st: 6 Things to Succeed in 2020 with IVAR. All of our events you can find on thenorrisgroup.com under that Events tab under Live Events and Training. For hard money loans, including fix and flip, buy and hold, and new
construction, as well as accessory dwelling units, hit that hard money tab. And for passive investing with the Norris Group, hit that Invest tab. With that, have a fantastic weekend and we’ll see you next week.

How to find Off Market Apartment Deals For Less than $5


alright guys let’s go ahead and look for
some off marque department deals and I’m gonna show you guys how to do it for
really really cheap, in fact, you’ll probably spend less than the dollar
looking for a deal and this is something that I did beginning early on when I
just got started you know I didn’t have hundreds of dollars of you know
the marketing budget for post cars and bandit signs and ads so what I’ve done
is I’m going to show you exactly what I did using a screen share so that you can
be able to dive in right with me to show I’m gonna show you exactly what I did to
look for off market apartment deals just using the internet a laptop and some you
know brainpower you’re gonna need some of that so stick around and I’ll show
you guys how it’s done all right guys so what you guys are
looking at is the screen of my laptop and you probably see me here as well
right on the upper right hand corner so I’m gonna assume a role of someone who’s
just getting started in this business don’t know pretty much anything other
than just hey I’m gonna go and look for some deals now this is a very very very
cheap way of doing very archaic way but it really works and it’s really
effective especially if you’re looking for a multi-family I don’t let me quite
see this working for single-family no you’ll see why so I think she’s really
really excited because I’m I’m gonna go ahead and actually look for a real deal
and show you guys how this works and by the way any information that I share are
gonna be off are gonna be available to the public anyway so I’m not gonna share
anything that’s private I’m not gonna go and disclose email addresses or phone
numbers I’m gonna do my best to make sure that any information that is being
shared is already on the public record so you guys something guys know I’m from
Chicago Chicagoland area and that’s nice that Google was telling exactly where
I’m at so for those uh want to stalk me down there right there I am but I’m
gonna go and look at completely different area so that I am NOT biased
because I know all the areas in Chicago that are that are hot and yeah places
look at but I want to go and look at somewhere else where say like
Indianapolis I actually know very little about Indianapolis
I’ve been there a couple times right for different events but I don’t I don’t
know particularly a whole lot about Indianapolis so I’m gonna go and assume
that I like I’m new to this market right I’m not I’m not sure what I’m looking at
so first thing I’m gonna do and this is Google Maps by the way I’m not using
some fancy schmancy software it’s just simple as going to maps google calm and
you’ll you’ll see this so first thing I do is I switch to satellite and some of
these smart cookies you already know what I’m doing here um so I’m looking at
Indianapolis and honestly Anna I don’t really know where to start but I’m just
gonna zoom in to where I can at least see the content of the streets so I’m
gonna look around this area now already I think I found something here so you
guys can see here that I’m it’s kind of obvious right so you you look after the
like mAb you and you’ll see rooflines and you’ll notice that some of these
roof lines like this one actually looks like an apartment now
oh this actually it might be a church or some sort of a industrial campus so if
you guys want to pan down this way to actually see I call this the FBI view
because you know I feel like the government agents I don’t know like I’m
like a satellite view but what you do for this and you guys are thinking well
how is he doing that so what you do is you hold that control key right the ctrl
key for those are what that is control key and click and drag so you’ll be able
to just pretty much drag and do one of these things it’s pretty cool I feel
like I’m in Mister Rogers neighborhood so this is really cool you can just go
around you know stuff like this this is pretty cool right so here’s something
ready it’s just a church another church this isn’t a part of building right it
appears so I’m gonna verify that it is yeah it looks like I’m partly clicking
apart building it’s right in front of a bus stop as you guys can see right here
Michigan Street and State Avenue so now the question is okay well how do I know
the address I’ve never been there well click right over the right click over
the building and click where it says what’s here click on that oh ho look at
that’s 504 with wood rough place West Drive Indianapolis Indiana right so I
know the address now right ok there it is boom might do a little Street View as
well see what it looks like cuz I again I’ve never been in this place so I I
cannot be biased it appears that there’s oh I see ok got it
that’s why it looks different ok so I was looking at the side of the building
instead of originally how I was the connect ok all right terrible neighborhood again I don’t know
this area so for those who are from Indianapolis
you might be thinking yeah this guy has no idea what he’s saying well yeah
because I don’t know this area and I’m looking at it as if I’m brand new to the
market but honestly this building doesn’t look too bad it’s you know brick
I can see there’s been some tough pointing done right and this was
captured in October 2017 so last year and it’s got a parking on the back nice
nice okay cool so here’s what I’m gonna do
guys I know where this is I know the really I just at least the address is
here’s what I do I want to find out who the owner is I want to make a contact of
the owner now we’re looking for off-market deals and this may not be
this may not turn into a deal right the owner just just might as well say I’m
not interested right they may give us a cold shoulder so this is just about any
like a marketing where in the beginning you’re gonna do a lot of hustling you
did a lot of work so let’s go and copy down the address okay there you go
control C which is copy for those tow know what that is there you go copy and
to do to find out who owns this public records says it all right so if we want
to find out who owns this baby we’re gonna go into the tax assessment so
county tax assessor sites so in Annapolis I’m gonna first find out what
county it is Indianapolis County there we go so it’s its Marion County wow it’s
pretty square so we’re gonna go to Marion County tax assessor there we go and go in dive in boom again
this is public record so I’m not doing anything fishy guys so one of the things
that we want to do is I want to I want to go into more the tax Treasury records
so let me see if I can do this and again I don’t do this a lot in Annapolis
search by address boom boom boom there you go so hit no results so what
we’re gonna do is we’re gonna try that there it is so if you guys are having a
hard time looking for or searching by address and nothing’s popping up it’s
because you added a little too much data so what you want to do is cut back right
and just leave the the street street name and street number so here we have
it right there we go final four would replace West Drive it’s owned by mr.
John Simmons right now again on the record we’re not exposing John here okay
he should have known better to put this on a trust if you wanted some privacy
right so we’re gonna generate the record card hey oh I don’t see if we do this so
it’s I mean having oh there it is okay so I have to download it got it kiss
it’s not a browser view somebody obvious I’ll download it okay here we go so this
is what the owner is seeing I believe if I can predict this right this is what
the tax though is so come on now yep there you go so this is what the owner
gets every year there we go John B Simmons and here’s all the
information okay now some of these information is gonna be you know it’s
gonna be important especially if you’re doing your due diligence but I don’t
need it right now what I really want is I need to know the sellers information
it’s all looking for it so the rest of the information can be useful and it
will be for sure in your due diligence period but what I’m really after is this
right mr. John B Simmons so I might go and look for the tax by the tax Treasury
so let’s this Marion County Tax treasurer there
we go so we’re gonna look going here a different Department of write the
Marion County so we can look at property taxes again I’m assuming the role of a
beginner so let’s see so obviously if you guys are from Marion County but you
guys may have done this thousands of times but I’m I’m assuming it all wrong
okay so I found the the view payer view bills which should give me the address
of the the person perfect there we go may have found something
so that was Woodruff place out here do the CAPTCHA okay oh we
could have done through owner’s name instead of the property street address
okay so we’re here all right so just go run with this okay so after a couple
minutes of waiting we’re finally here and we got the enquiries as you can see
there’s a lot of entries so there’s 300 entries and I’m sure it’s more than that
so what we’re gonna do and what this allows us to do is just hit property
addresses and we have it in order so let me see if I can find this baby which is
504 Woodruff let’s keep on going 0:01 so I’m gonna keep going and I mean
you would imagine this would be much easier right is I mean so alright we’re
getting close by 20
– 509 wow that’s interesting 503 and 505 so 504 is missing we have a ghost
property interesting hold on so let’s let’s see I might be wrong as far as okay so
5:04 does not exist maybe because let’s see if I can do this okay so it’s clear
that this guy it’s got one address now sometimes it can have multiple addresses
and if that’s the case and it’s probably a condo condos will obviously have
multiple addresses or multiple unit number but in this case I’m seeing I’m
seeing just one address and things like five oh five or nine is missing or 504
is missing so I am not sure of what is going on so yeah it’s it’s missing goes
to 509 502 503 504 505 for you guys obviously this isn’t telling us maybe
John Simmons living living him which I don’t know if that’s the case but let’s
go and look for a different property okay but you guys might already be
getting the idea here um that you look for the refine and if it looks like a
multi-family and you can confirm that it is alright you know you got yourself a
database without you even have to go out the door of your house right this is a
berry except you know quote-unquote lazy way of doing it but it is very effective
and it’s time time effective sure so here’s some couple of part of buildings
yeah what appears to be okay so senior community so obviously I had to do get
to take a look very closely but here’s something I think could be a potential
candidate let me go ahead and drop my okay yep
so we got a couple part buildings now not the best shape in the world but hey
if the figures work why not right so 202 for East 25th Street okay that’s what
we’re looking at so let’s see who owns this baby here we go so we’re looking at
fifth streets 202 for 25th Street so we’re gonna go ahead and put the CAPTCHA
in there and now we wait so obviously we can
always go back we can go into the the Assessor version of this right the
parcel numbers but let’s go and give it away
so you guys can see that actually I ended up finding this other site that
seems to be a little more easier and funny loaded finally waited but here if
we’re going to look at this but if you can’t find anything like this will
definitely go and look at this cuz it looks like this is the new government
government page apparently so we’re looking at 202 for
East so we may have to do a lot of searching here as well so you guys can
see here that to get to 2 or 2 for 2 or 2 for East and I’m not sure if you’re
gonna get much luck in this either yeah it’s it’s going up and uh oh
all that no yeah so this is obviously not the best you know organized thing in
the world as you guys can see here it’s just going off of everywhere so not the
biggest fan not the biggest fan of the way that this is this is structured so
what we’re gonna do I’m just gonna go and mess with this here search yeah this this seems better so I’m gonna
actually do control fine I can do that two and two four it’s not in this page
so we’re gonna go next to it to four in here maybe not okay so none of these have two two fours and go back to you so I’m gonna go back to looking at
proper cards just this is what we’ve seen earlier if you guys remember so
let’s go ahead and hand hit there we go so it’s actually owned by an LLC which
is good I actually like properties that are owned by LLC and I’ll show you why
as to why I like them better so here we go we got the property cards and they’re
this car carving in scar minions LLC so here’s what we do with the LLC name
because for right now all we want to do is contact the owner so we’re gonna go
ahead and actually do a indiana LLC lookup now let’s see you look up and
we’re gonna go ahead and hit yeah i’ve been i’ve been on this site before so
i’m gonna click on that and we’re gonna go ahead and search the LLC name
carbanions LLC and of course there you got to capture thing going so i gotta
click on capture ed search and we should have anyway there y’all boom so they’re
actually out of Illinois which is quite interesting or actually Indiana so there
it is they’ve owned that they have this LLC since 2008 so they’ve they’ve been
have been the game for a while and here’s the individual Paul or Watson is
that is a person who is the the owner of the LLC which obviously is all is the
owner of the property so what’s really cool is that you have an address and a
person’s name to which you can go and start sending out a letter now with the
letter I’ll show you guys how to do this in a very systematic format is you take
the name you copy it and put it in a spreadsheet ok and what I want you guys
to do is is separate the first name and the last name okay and go ahead
write the address down of the mailing address and what you also want to do is
you want to break this down to into state city zip code all of that now you
don’t have to do USA cuz you know that’s kind of apply so here it is and actually
add another roll above so owner first name I’m gonna do owner last name
mailing address mailing city mailing State mailing zip now those labels are
gonna be super important I share exactly why and okay so we got their info we got
that as your business address let me see if one second if I can verify something
okay sometimes you can google them and see if they have you know if they’re
public if they are great then you can contact them so here it is you got their
mailing address and you also have their the address for the property so we’re
gonna do property address it’s just what we’re interested in boom property city
which I know is Indianapolis same thing here this property state and property
zip so all right by the way this is Google
sheets so this is absolutely free if you don’t have Microsoft Office guys if
you’re using Gmail you know Google Apps comes in it’s free doesn’t cost anything
so there we go make it this make this a little bigger so here we have the data
right so the owner first name last name mailing address all public records I’m
not sharing something that can’t be found anywhere else right so here it is
so here’s what I’m gonna do okay and this is a super important now this is
where you know I’m going to take back with take that back with the Microsoft
Office but you can go to the library and dig out out Microsoft Office so you need
Microsoft Office for this one so I sorry guys I’ll I forgive me
so we got the data right here and go and download this as as an excel file okay
I’m just gonna throw in the desktop okay and what we’re gonna do is I’m going to
open up word there you go and we’re gonna go ahead
and then we’re gonna go ahead and we’re gonna do is go ahead and write a letter
and before we do that we’re gonna go ahead and click on mailing and select
recipients use existing list so the list that I that we downloaded guess what
comes from the excel sheet right so obviously the the proper way the more
effective and efficient way to do this is if you have a say twenty twenty eight
enquiries write list of twenty property owners that will be more effective so
I’m just giving you more of an example you know for sake of time so here’s a
non-title shift spreadsheet there we go and what was really cool and some of you
guys may already know this cuz you guys went through business you know classes
for those who haven’t here it is so we’re gonna do is going to insert merge
field on our first name on our last name now this is super useful if you’re
dealing with twenty different names you don’t wanna have to write twenty
different letters that will be lots of time you’re gonna it’s fine
so owner first name or last name mailing address city so what this is doing is in
place of this these codes that you’re seeing it’s gonna go and merge those
data for you so that you don’t have to write twenty different letters if you’re
dealing with twenty different owners okay so the preview results boom look at
that you see it goes right in there right and then I’m gonna make slow
prettier there you go and then go and put you know just as any
professional actually you want this first so I’m gonna do Sam Kwok where I
can put my LLC in there okay X Y Z you know I’m gonna do I don’t want you guys
know where I live okay Main Street Chicago Illinois there we go and then
going around your letter so dear again insert first name my name is Sam Kwok
I’m a real estate investor in the area I am writing to you to ask if you would be
interested in selling your property , and we’re gonna go and insert the
property address right there so that’s the property that we’re interested in
looking at and seeing if they’re interested in selling that property
right there we go I’m writing to you to ask if you would be interested in
selling your property right I may be able to help you potentially double your
your net now for those who are wondering why am I saying that can i really help
that person double their net yes I can I have a way there’s a strategy now
obviously you guys aren’t gonna write that down if you don’t know how my
students obviously for those are my trainees guys know exactly why I’m
writing that down so if you guys are interested in that I’m gonna go ahead
and leave that in the link this link description below if you guys are
interested in being one of our trainees and I’ll show exactly what I do I I just
I put that in and I actually help people pick up walk away with double internet
so here we go if you are interested in selling your property please give me a
call or email me at and go and put your email right XS x X Gmail comm and I’ve
just provide a phone number all right sincerely whatever your name is
alright same quacks so here we have pretty polish flutters right so what you
can do is you can go ahead and don’t go to click on prints on the upper right
hand corner what you’re gonna do is go to mailing and finish your merge and
then click on print documents that way if you have 20 owners on the list you’ll
be able to print 20 letters and each letter is gonna have all the data that
you’ve selected through the excel sheet pretty cool right so this is basic merge
this is virtually free if you don’t have Microsoft Office you can go to do this
in your local library fairly easy to do so go ahead and click
on print documents print everything now as far as the envelope I encourage you
guys to handwrite the envelope the reason being is that we want the seller
the the owner opening the envelope in the first place if it’s printed
professionally it’s more than likely that’s gonna go right into the trash can
so we obviously don’t want that so handwrite the envelopes if you don’t
want to do it have a family member if you have kids pay them to write it if
they have good handwriting that is I don’t want a four year old writing the
envelopes for you obviously so 10 write the envelopes because you want to make
sure that they open the letter if you want to make this even more effective
buy one of those gift card envelopes with colors like blue green or red and
actually handwrite those because they will be open and you you’ll notice how
effective those are if you want to increase your effectiveness
now obviously you have to pay postage which is 49 cents hence why I told you
guys in the beginning of this video it’s gonna cost you less than a dollar per
lead if you’re if that’s what if that’s your budget so if you’re doing 10 pleads
that that’s gonna cost you four dollars and ninety cents I mean if we’re gonna
really factor in paper ink you know all that I mean it’s gonna come down to five
bucks for 20 people that are gonna reach out to so based on my math and based on
what I’ve done in my track record you see every twenty to thirty direct
letters I send I usually get one coming back that says yeah I’m interested
so obviously this works it’s all about numbers and and hitting up the right
person really you don’t want to hit up everybody because you’re gonna waste a
lot of money on marketing but if you hit up hit up that certain people that you
want to target you’re gonna have success because you’re gonna have the results I
really want you’re not we start time on results I don’t why
you’re gonna spend time on the leads how you want to work with that you want to
buy properties with so here it is guys um so from the very beginning right
using Google Maps very archaic way very easy cheap you’re not paying for
database or anything like that all you’re doing is you’re scanning around
looking for rough lines to see if there any multi families in your area part of
buildings finding out what the addresses of that
property using that address to going to to go over to your county tax records
and tax assessor records and one thing that I’ll give you a disclaimer certain
states may not allow this certain states it’s not illegal to do this but certain
states won’t disclose certain information to you so some of you guys
may have a hard time doing this but if you guys can figure out a way a
different variation creative way to do this then yeah I think you guys are
gonna be coming at the top so from there we’re gonna look for who the owner is
with their addresses and then from there we send a letter using the method that
I’ve showed you which is very effective very efficient this shingle this should
cost you less than five dollars to send out twenty letters very effective so
guys I hope this helped and this is what exactly this is this step this right
here is literally the duplicate step of what I’ve done early on before I had
hundreds of dollars a marketing budget to spend on postcards right all those
things so guys utilize this tech I hope that you guys
took a lot of notes if you guys need a rewind pause rewatch you guys are more
than welcome and do that so again if you guys are interested in more info more
materials go and look down and in the link description box below because I got
a lot of goodies in there they can check out and download take advantage of all
absolutely for free it’s my gift to you guys you guys can download and have it
so guys I hope this helped and I might do another video just like this to show
you how to find deals in a different variation if you guys are working with
more budget I’ll show you how to properly use that budget so that you’re
not wasting money on you know silly marketing tactics that aren’t gonna
aren’t gonna work anyways so here it is guys cheapest way to look for off-market
apartment deals again if you guys have any questions gonna leave them down
below and I’ll be more than happy to answer those questions for you
all right guys take care well hello there you made it to the end of this
video congratulations and that probably means that you liked our video and you
loved what we did so be sure if you want to get more information more YouTube
videos from us about real estate investing be sure to subscribe to our
YouTube channel and hit the bio icon to make sure that you get notifications on
our future videos about real estate investing

How Much Do I Need For A Down Payment – First Time Home Buyer


Kris Krohn here with Limitless TV. And today were going to be talking about down
payments on property. How much money do you really need for a down
payment? And are their down payments where you don’t
actually need a down payment? That’s all coming your way, right now. Some of you have been reaching out on our
site and have been asking, all right, how much do I really need for a down payment? Today’s video I really want to dive in to
how simple and basic this is. I’m going to be sharing with you three different
types of down payments. The first type of down payment that you’re
going to need if your going to do real estate would be for a primary residence. Now you can and investor, and I always encourage
investors to look at a primary residence, or the home they are going to buy, for them
to live in. I’m going to encourage you to always buy that
home as a house, as an investment. So that it really can play on both sides. And I think you’ll see shortly why I do that. Because, in our country, if you are buying
a home for the first time. And I want to be clear, there are a lot of
programs out there that are called first time home buyer, that doesn’t mean you’ve never
bought a house before. I really actually should just translate to
mean, I’m ready to buy another home to live in. And right now if your going to buy a primary
residence. Something just for you. There are a lot of programs out there that
will allow you to put in 3%, 5%, and there are programs after programs after programs,
federally sponsored programs. And your loan officers, the people that are
going to do the lending, and lining this up. They are knowledgeable on this. Now not all lenders are created equal. Some of them are more knowledgeable on these
programs than others. But in general, the average lender is very
familiar with these type of loans. Now what’s great about that is I could buy
a home with a lot of equity, that would make a really prime investment property. But think about it, I’ve got a home that I
could buy for $100K, that is worth $150K, and guess what? 3% on $100K is $3000. I walk into $50,000 of equity for $3000 out
of pocket. That’s essentially what happened on my first
house. And I got hooked. That was more than double what I made in an
entire year. And I’m like… Man! That is so smart. 2 years later I bought another home and moved
again, because I wanted that 3% down payment, right? So that’s primary residence. The down payment, however, on what’s called
a non owner occupied. Which basically means, a home I want to buy
as an investor, and I’m not planning on living in. Your going to, on a non owner, or I’m just
going to go ahead and write here, on an investment, the standard is 20%. And you’ll find programs out there where lenders
will say, well if you put 25% or 30% down we’ll really bump your rate down another point,
or half a percentage. I don’t participate in those, because I would
rather take that money. I don’t care about a half of a percent when
I’m making all that money in real estate. I’d rather take that extra money and put it
where? In another deal right? You will find from time to time, depending
on where we are at in the economy, before we ever hit a collapse, there’s always these
stupid 0%, 5%, 10% lending programs. And these are the banks that often go out
of business and get spanked, right? Like Washington Mutual went down hard, in
the last economic crash. And I’ve been banking with them since I was
16 years old. And so, an investment property, even if they’ll
allow you to put down 10%, I still always put 20% down. And I just want to share with you why for
a second. When I purchase a house, and let’s say it
has a value of $100,000, and let’s say that I’m able to purchase this home for $70,000. Then if I… I’ve got a good equity position here, 30%,
in fact that’s really significant. And if that gap right there, because I’ve
hunted some good pirate treasure down. Is going to equate to a larger cash flow. Why? Well think about it. If I were to buy this $100,000 house for 100
grand, them I’m going to have a higher mortgage. A higher mortgage means less cash flow. So for example. If I’m able to rent this home for $800 a month. And my mortgage, if I just bought it, and
let’s just say at $100,000, and I just put the minimum 3% down or something like that,
I might have a mortgage of $700. And a $700 mortgage and an $800 rent only
leaves $100 left over. It’s not a great cash flow. But if I buy it with this equity right here. All the sudden $700 can turn into $500, and
then check it out. Now I have a $300 delta, a difference. $300 of cash flow. Now if I put 20% down on top of this $70,000,
and let’s just say then that what I’m going to owe is ultimately going to be $55,000,
guess what I just did. I just lowered my payment again, and I made
my cash flow even steeper. So understand this concept of 20% down. There is a reason I put 20% instead of 10%. Some will say “but Kris, if I put 10% down,
then my 20% will go into 2 homes instead of one. Don’t you love that?” And it all comes down to a definition of risk. I have a lot of friends that lost homes, that
played the market that way, in the last crash, and I’m telling you, it’s going to happen
again. And it’s actually no very far away. This isn’t conspiracy theory, doom and gloom. This is a 3000 year old cycle called the K
wave Kondratiev cycle. And every 20 years, real estate must correct. In one of my other videos I share with you
why. The point is I’m always going to put 20% down. It creates a safety margin, as Warren Buffett
put’s it. 10% puts down a less safety margin. 20%… look at all my cash flow right now. My house now, it’s worth $100K, I owe $55K. It’s almost half paid off. So I’m always going to find a home with a
big chunk of equity. I’m always going to put 20% down. And now all of the sudden, if the market corrects
down, guess what I have? I’ve got a buffer, right? I’ve got a cushion. And I’ve got my cash flow in the mean time. So, I just want to throw that little bonus
material in before I show you, the 3rd way that you fund your down payments. One is with the banks and government with
these 3% to 5% loans, if your going to be doing a primary residence to live in. 20% if it’s an investment property. And then, I’m going to share with you my favorite
way of funding these with nothing. Now if you want to know how much money I put
down when I buy real estate, on 99% of the deals that I do, I put down nothing. Because I believe in this no money down real
estate thing. Because I’ll always bring partners to the
table. If you’ve got to wait to have the money yourself,
then guess what the problem is? The problem is that, you’re going to have
to be saving for a very long time, and your taking the, never going to get there road,
in most circumstances. I mean even if you live within your means,
and your saving a couple thousand dollars a month, you’ve got to wait years between
doing real estate transactions. And then it will eventually snow ball and
get where you want to go. But the shortcut is to do real estate now
through a partner. In fact, one of the reasons why people will
respond to the form below this video, and say “hey Kris, I want to partner with your
team.” Is because I’m going to teach you how to buy
all the real estate you want, without ever bringing money to the table. It’s called deal making. And so, while it’s 5% or 3% down payments
on a primary residence, 20% on investment projects. For me it’s always a nothing down. In fact right now I’m doing a huge project,
and I’m not putting a penny of my own money into it, because no money down is one of the
coolest forms of down payment. I do have to give up, generally, half of the
profits with other individuals. But you know what? Making half the money without having to put
any money in, ends up turning into an infinite ROI. So it works really, really, really, really
really, really well! I hope you’ve enjoyed today’s video. Be sure to subscribe. I want to notify you, and let you know about
all the other exciting topics that we’re shooting videos on, that are made just for you.

How Will You Target Your Marketing To Millennials in 2020? #483


Hey everybody, it’s Aaron Norris with
The Norris Group. It is Friday, January 3rd. Happy New Year. And how are you targeting millennials in 2020? That and much more as we cover the biggest headlines in real estate. Up on the radio show and podcast this week, we have Derek Harms. He is a realtor with Compass, a real estate investor and the president of NSDREI. We cover a lot of ground over the next few weeks, including accessory dwelling units, adding square footage, the Compass brand, technology, and so much more about the San Diego market. Don’t miss that on the radio show and podcast. According to the latest S&P CoreLogic Case Shiller U.S. National Home Price Index, home prices increased at a faster pace in October, increasing three point three percent annually. Pending home sales increased one point two percent in November according to the National Association of Realtors, and Freddie Mac reported mortgage rates decreased slightly with 30 -year rates at 3.72% and 15-year rates at 3.16%. If you missed it on social media, I released a Forbes.com article right before the end of the New Year on accessory dwelling units. It’s titled 2020: The Year of the ADU. Why do I think 2020 is going to be a big year? Well, the state of California just released like five different bills. I get a lot of questions about ADUs these days, and it’s a lot of fun. Just because you can doesn’t mean that you will or that you actually will be able to. There are going to be some workarounds, but there’s a lot of interesting things happening in California that if it goes well, I think a lot of other states are going to fall in line. And that’s being met with technology. Everything from prefab manufacturing to 3D printed homes. So don’t miss that. We’ll link to it in our blog post. So go click it, support me. That would be awesome. Zillow sees a cool down for the California housing market. The Zillow Home Expectations Survey says the hottest housing markets are expected to come from the south, and not southern California. One hundred and ten economists were surveyed by Pulse Economics and Zillow. The most optimistic areas that they thought it was gonna happen in 2020 is Austin, Texas, Charlotte, North Carolina, Atlanta, Georgia, and Nashville, Tennessee. They are not so excited about California’s traditionally hottest markets, including San Francisco, San Jose and Los Angeles, giving them net scores of negative 40, negative 38, and negative 35, respectively. But San Diego has decided to market their least worst on the list. They’re down negative 14 as far as their net score on the survey. But yeah, California, what are you gonna do? Looks like there is a new trend rising in Los Angeles amid the price of buying homes, reaching record highs in 2019. And that trend is tenancy in common, also known as TICs. TICs allow two or more people to hold title to a property. Each tenant has her own loan, and shares of the property might even vary. One person might hold 25 percent while the other holds 75 percent. But the entire property is owned by all tenants and the property taxes are split pro-rata share of however many shares they own. The money aspect is a little bit more complicated, and not a lot of banks are going to lend on this kind of thing because you’re responsible for paying property taxes as a percentage of what you own. And what if you don’t pay it? The one that the other partner in the TIC is going to be held liable. And so, therefore, lending gets a little bit messy. There are some lenders, I’ve heard, out there doing this and I have some real estate investors looking into this as ways to get around ADU laws. So we’ll see if it gets more popular as lending gets a little bit more aggressive and competitive here in California in 2020. The U.S. Census Bureau reported only one in three millennials own their own homes. And it is no secret that rental sites know this and target millennials almost exclusively. ATTOM Data tells us how these sites are reaching millennials. They’re highlighting the property features millennials want to see, like large spaces to socialize, outdoor space, and eco-friendly features, helping millennials chase the buzz with a map to the best local hotspots like restaurants, thinking outside the urban box and focusing on the surrounding nature. And then finally, school data for new millennial parents. A story on CNBC tells us that the severe shortage of homes for sale is upending the sales calendar for the housing market. Spring has historically been the busiest buying season, but as competition for homes heats up across the country, January is apparently the new April. From 2015 to 2018, the peak month for average views per listing on Realtor.com was April. January lagged by a full 16 percent. In 2019, however, January was the busiest month on the site in 20 of the largest 100 metropolitan markets. Well, this year is going to be a lot of the same, and they expect January to be even hotter this year in more markets than in 2019. Since we just reported that everyone’s going to go out and buy homes starting in January, Realtor.com has a very timely report about five first time buyer mistakes that they make when buying. Number one: slow down. When you look at 18 different homes in one weekend, you’re not going to remember much. Take lots of notes. Number two: make sure the price is right. Remember, it is a business transaction and you need to leverage everything possible to get the best deal. But don’t be that guy that goes in with a really high price knowing that you’re going to negotiate later. Hate that. Number three: buy for the future, not just for the baby on the way, but for all future family growth. This is a trend that we’ve seen for the last several years as more people are planning to stay in their homes a lot longer. Number four: not up to code. Take the home inspection seriously and don’t compromise. Don’t trade charm for illegal. I like that. Well, unless you’re going to turn it into an ADU, go for it. And last: if you buy a duplex, hire a property management company. Everybody thinks it’s real cute to be a property manager, especially with ADUs on the way. But in California, it is no joke to be a property manager and you’re going to want to make sure you do that right. But when it comes to 2020, how are we marketing millennials when it comes to features and marketing? I would love to hear how realtors, investors out there, how you’re targeting your marketing and reaching this very up and coming unique market. Let me hear what you have to say. If you’re on YouTube, please leave your comments below the video, and don’t forget to like and subscribe to the channel. Hit that bell if you’d like to receive notifications when we have new videos come online. If you’re on Facebook or any other social media platform, please like and make sure to like the Norris Group page so you can find our content online whenever we produce it. Leave your comments below the video. Give us some love. And don’t forget to share. If we missed a story, also, feel free to leave a link in the description below. We would love to see you out and about all over California. We have a very busy week coming up. January 7th, you’ll catch Six Things to Succeed in 2020 with Prosperity Through Real Estate in Culver City. January 8, the next day in Glendale, we’ll be doing that same chat with Robert Hall and Associates. And the next day after that, we’ll be in Costa Mesa with OCREIA doing the very same chat. Don’t forget to sign up for Turmoil February 1st. It’s our very first hybrid event where we’re marrying market timing with strategies. We have some very special guests that we’ll announce later in the month. But you will be very happy to find out that our subscription is included in the attendance for a single member. So it’s a really great way to get a lot of education on the timing and the strategy side for an awesome 2020.

3 Ways to Find Below Market Value Properties | Money Matters | Touchstone Education


– Hello, I’m Paul Smith,
from Touchstone Education, and I hope you are very well. Let me share with you three specific ways in which you can get
property below market value. (upbeat music) Even the very idea that
you can get property for less than it’s worth is
kind of confusing to people, because they’re used to
buying properties from an estate agent and he says
£100,000, and they might go in there and they
might offer, I don’t know, 98 and a half, and they think they’ve got a really good deal, when they get a below market value property at 99700. I’m not talking about that. So here’s the first way, and this is going to sound so obvious, but it’s so true. Meet people. On a regular basis, I do viewings. I’ve given up, I’ve
stopped doing many things, but I do viewings for the simple reason I love ’em. I’m a talker, I love talking to people, I love meeting people, I love
understanding their issues, I love having a chat, I
love trying to help ’em, I love solving their problems. So let me give you an example, this one that I’m thinking of, probably around about 10 years ago, and here’s how it went down. I was doing some deal
packaging at the time, so these were properties up north, which meant I was dealing predominantly London based investors. And what they would do, is
they’d make an appointment to come and see me, I would get their budget,
I would find out what they wanted to buy, and I would then look for properties, and we’d maybe go and
see eight properties, and we’d maybe offer on two of them, something like that. So this guy came up from
London, he was called Tom. Now Tom, who had been investing in London, he’s an electrician, so it’s kinda in the trade, do all the refurbs himself, get his mates to help, that kind of stuff. So he wanted deals, up he came. And we were on the last
property of the day, and Tom had already got two, so I was six grand better off, because every deal he bought, I
was getting three grand. In the last deal of the day, he wasn’t really in it, ’cause he’d finished shopping, he’d spent his money. So we were going along to see it because we’d made an appointment. But because it was quite late in the day, there was no agent there, so we were just seeing the vendor, we were seeing the person
that was selling it. So Tom kinda went in, looked
around for about four seconds and said, ‘hmm all right okay
see you later Paul, bye’, ’cause he wanted to beat the
traffic and get back down to London, which was fine. So I’m now left, I’m
thinking slightly awkward, ’cause I’ve agreed to see this property, and Tom’s done a runner,
and I’m left and I can’t not see the property. So I go in. So we walk round, it’s
only a one bedroom flat. Now it’s been valued at £60,000,
for this one bedroom flat. So in we go, and I’ll tell you what, it takes like one minute
to walk round the place. So what am I clocking? Structurally it’s okay,
it’s got double glazing, it’s only actually got
two windows, at the front, the lounge has got a window,
the bedroom’s got a window, the kitchen is internal to the building, it’s a terrace of flats, bathroom. Kitchen, probably needs, the carcasses of the units are okay, probably needs some new kitchen doors. The bathroom is okay, I wouldn’t put the suite in,
but I ain’t gonna change it. The only thing that’s a bit
weird in the whole apartment is there’s actually a suspended ceiling, with like tiles like
you’d see in an office. There’s a stepladder there, one of the tiles is missing, ’cause for some weird reason, they’ve decided to put the
electricity prepay metre above the suspended ceiling, and which is why there’s a
set of bloody stepladders in the hallway, which is a bit weird. So I’m thinking hmm, better fix that. How do I fix that? I tell them to come and
take away the prepay metre and instal a regular metre. And your man says to
me, “do you wanna chat?” And when somebody says to
you, do you wanna chat, you need a chat. Cup of tea, some biscuits, happy days. I’m sat there with him. And he says, “appreciate you taking the time, “I’m told you’re a property investor.” I’m like hm I am, who told you that? And they said “well, to
be honest I know you Paul, “’cause you’re local, so
I’ve driven you around.” I’m like really? Turns out they’re a taxi driver. Says “thing is, “I’m overweight I know that, “I’ve done my knee in, “I’m in my sixties now, “I can’t get up and down stairs. “So I need some money for the house, “’cause I need to put on an extension, “’cause I’ve got a bedroom downstairs, “I need to build like
a bathroom downstairs.” Okay. And he said “so this
place is valued at 60, “but to be honest I’ve had it for years, “I’ve got the mortgage paid off, “if you made me an offer I’d take it.” And he said “but, I actually
need the money next week.” I was like what? And he said, “I need the money next week. “So I realise you won’t be
able to pay me top dollar.” I said but if you want it next week, I can only give you what
I’ve got in my bank account, I can’t y’know. And he said “well that’s
fine, just make me an offer.” I said well I’ve got like 30 grand. And he said “fine, done.” And shook my hand. And I bought a £60,000 flat for 30, because he needed the money the next week. Make a friend, make a deal. That’s number one. Number two. Strongly recommend you look
at commercial property. I bought a four story solicitors office, that had previously been four flats. And I bought it, the
whole thing, for £66,000. And when it came, I got
a years rent arrears, which is £9000, so I
bought it for £57,000, for four flats! Now when I’d finished tarting them up, it got revalued at £320,000. How the hell did I do that? Well, what I did, is I bought it from the distressed assets division of a bank. The solicitors were still in there, paying me 9 grand a year for a few years until they moved out, I turned it into flats. But did you even know
that banks had distressed assets divisions? So there was nothing
wrong with the business, it was the landlord that had gone bust, ’cause he was getting divorced. And the third way that I’m gonna give you, right up to date a few weeks ago, Gumtree. Increasingly, landlords are
direct advertising on Gumtree, to sell their properties. So what we do is we get
a VA, virtual assistant, they write down all the landlords numbers, all the contact details, just the name and the phone number. And we text them. So people used to in the
old days do like leaflets and shove ’em through the door, we buy houses, any condition. So we do the same thing,
but we do it by text. So VA, two pounds an hour, load up, 100 houses in Doncaster, five quid or something. Text marketing software, six pence a text, send out 100 texts, six pounds. So for like 11 quid, we’re
contacting 100 landlords, and from that, we normally get one or two leads, we’ll go and see ’em. We’re buying several houses a month on the basis of spending
like 40, 50 quid on VAs and text marketing. We buy houses, any condition, reply to this text to see if you qualify, cash within seven days, ’cause that’s what we do, cash within seven days. So using that exact same model, we got a £72,000 house, that’s
what it’s been valued at, we’re getting a £52,000 mortgage, we only paid £40,000 for it. And that’s one that we
did a few weeks ago. So to recap, viewings,
make a friend, make a deal. Distressed assets divisions
of banks, talk to ’em, commercial properties. Gumtree, get a VA to take
the data from Gumtree, put it on text marketing software, send out a text message. Hope you’ve enjoyed this week’s
edition of Money Matters, ’cause after all money does matter. I want each of you to
have sufficient money that it doesn’t matter. ’cause you get to a certain level of money that money just stops mattering, and you can do with your
life exactly what you want to do with your life, that’s why Touchstone exists. We want to inspire generations, thousands, hundred of thousands, millions of property investors, and we want your help, please. If you’ve enjoyed this short video, please like it, share it,
subscribe to the channel, get your mates to watch it. You’ve been wonderful, I’ve
been Paul, catch you next time.

Do HMO’s Make Money in 2019 | Money Matters | Touchstone Education


– Hello, I’m Paul Smith, and
I hope you are very well. Let’s ask ourselves a question, do HMOs still work? But first, what is an HMO? An HMO is a regular house or flat, except it’s rented by
the room, by the week, instead of by the house, by the month. So that’s what it is, I’m sure you, it’s house share, you
know the sort of thing. Why would you do an HMO? Well, ’round about here
I’ve got quite a few. And maybe the rent for
the house as a house would be about 600, maybe 650 a month. But the rent for the individual rooms because there are bills
included and everything else and they’re really nice en
suites, and blalalala, whatever. It’s 95 pound a week. But I’ve got five of ’em in the one house. So instead of making 650 a month, I can make 500 pound a week. How hard is it to do HMOs? Well, in my view not as long
as you know what you’re doing. Is it hard to drive a car? No, as long as you had some lessons. Is it dangerous to jump in a
car and drive it down the M1 if you’ve never had a lesson in your life? Yes. Is running an HMO any more
complicated than driving a car? No. Do you need certain licenses
and permissions to drive a car? Well you need a driving license, you need an MOT, you need road tax. What else do you need? You need stuff to drive a car. You need stuff to operate an HMO? Yes. So that’s what it is, how
much money you can make, and how hard it is. But there’s been some
pretty big changes recently. So let’s look at those changes now. And then let’s decide
together, do HMOs still work? (light upbeat music) So today’s Money Matters Question. Do HMOs still work? Hmmmm. What might we be thinking when we ask ourselves that question, do HMOs still work? We might be thinking of legislation we might be thinking of
the political situation. So let’s come back and
let’s start at the basics, demographics, people, houses, not enough. Let’s be more specific. I was born in 1964. It took the first 50 years of my life, so from 1964 to 2014, for
the population of the U.K. to go up by 10 million. The population went up by five million in the first 36 years of my life, and then it went up by
another five million in the next 14 years of my life. In my lifetime I’ve seen
the population of the U.K. go from 50 to 60 million. The government, the Office
for National Statistics says that population of the U.K. is gonna hit 70 million by 2029. For all the data, they’ve
got much bigger computers and much more time and
money to waste than I have, they’ve effectively said that history, 36 years, five million,
14 years, five million, 10 years, 10 million. So not only is the population going up, but the rate at which it’s
increasing is getting faster. All right, and you can’t
really argue with that. It’s just, go check it out on the government’s website or whatever. The evidence is irrefutable. The population of the
U.K. is going up fast. That’s number one. Number two, where are all
these people going to live? They’ve gotta live somewhere. Okay, well, the government
has had a number of different study groups over the years, and they decided years ago
that what we needed to do was we needed to build 200
homes a year, houses a year, whatever, they call ’em homes. And that measure has been in
place for more than a decade. D’you know the most we’ve
ever built in a year? 180,000. In many years we haven’t even built 150, in some years we’ve built less than 130. So we’ve consistently been under building the number of homes
that they know we need. And at the same time the
population growth forecasts keep going up and up and up and up. And I’m not gonna bore you
with all too much economics and macrostatistics and whatever else. But I’m sure you know this, the average life expectancy’s
getting longer and longer and more and more of us
are getting divorced. So you put that melting pot together. There’s more of us, we’re living longer, we’re not building enough houses, and there’s more and more single households because of divorce. So what does that mean
for housing numbers? Well recently the government
reconvened its experts to do all the stats. And what they decided is well,
because there’s more people than we thought there were gonna be and because we’ve built less houses than we thought we would, we’re gonna revise the
housing build target. Oh, okay, that’s good. And that’ll fix the problem. So instead of building
200,000 houses a year, which we never have, the target, you’ll love
this, is now 300,000. But how are we gonna build those houses? Well the experts weren’t
actually employed to do that bit. That’s you and me, that’s
us property investors. So do you think there is
gonna be a demand for HMOs? I know there is. ‘Cause when I grew up, when I was younger, there was no such thing as an HMO, a house in multiple occupation. So an HMO, by the way,
in case you’ve gotten this far into the video and
you don’t know what it is, is a room in a house that
you’re renting typically by the week instead of the
whole house by the month. Studies show that there’s
millions of people in the U.K. living in HMOs. So do HMOs still work? Well, let’s talk about it. But is there still a
demand for a properly built and properly licensed and
properly certificated HMO? You betcha. More than ever before. More than ever before. Now there’s been a recent
flurry of legislation that’s made it harder, but
you could argue in a good way, to build an HMO that’s fit for purpose. And I’m all for that, I’m an engineer. Fit for purpose, permits to
operate, I’m up for that. Completely up for it. So the first thing, let’s
take you back to Aril 2018. They changed the EPC regs,
Energy Performance Certificate, so you’ve gotta build it to a more energy efficient standard. Good, say I. So you’re not allowed
to rent any property now if it’s an F or an E. It’s illegal. And in April 2020 that goes to a D. So it needs to be an EPC of D or better. A being good, F being bad. But that’s the same for any property. So that’s not pro and anti HMOs. That’s just a property thing. The more recent legislation in 2018 said if you’ve got more than four, if you’ve got five or more
people living in an HMO and it’s two stories or more, suddenly you need a license. Didn’t need that before. Previously it had to be
three stories or more. Now three stories for an HMO, I’m not saying it’s impossible, but it’s relatively unusual. Almost all HMOs, all of
my HMOs, are two stories. So the situation changed massively. All of my properties that previously didn’t need a license suddenly did. Was that a problem to me? No, why? Because I’m an engineer. Because I’m looking for the
next problem, not this one. So when we built our HMOs we built them all to licensable standards. So do HMOs work anymore? Yes, if they’re compliant. But that’s never been any different. Is there a massive demand? Yes. Do they have to be compliant? Yes. So do unlicensed, illegal HMOs still work? No. Shouldn’t surprise anyone. Is there an ever-increasing
demand and money for serving tenants with compliant HMOs? Yes. So as we’ve seen this new legislation bite and it pushed out so many rogue landlords, to use media speak. What’s it done now? Well since the legislation has bitten, our applications for our compliant, nice, comfortable, en suite, big HMO rooms has gone through the roof. We’re getting between five and 10 times the number of applicants that
we used to get in the old days when any old cowboy could
put anything on the market and stuff people in there dead cheap. Our room rates have gone up. So our occupancy, our room rates, and our demand have all gone up. So this is all good. But I see so many people on the forums bleatin’ about the fact that
HMOs don’t work anymore. Don’t work for them. That’s because they’re not compliant. So what does licensing mean? Well it means you’ve gotta
have a sensible sized room. It’s gotta be at least 6.52 square meters excluding the en suite
and any access corridors. But be careful because local authority by local authority it
could be a lot higher. So here in Doncaster, where
I’m talking to you from, it’s gotta be at least 10 square meters. Is that a good or a bad thing? Well I would put to
you that doing anything when you don’t know what you’re doing is a pretty dangerous thing to do. So please make sure you get
the right level of education, knowledge, and support, to
do HMOs wherever you are. What else does licensing mean? It means emergency lighting,
it means fire precautions, it means a certain number of square meters per occupant in the kitchen. It means all sorts of things. But they’re not hard. You could learn about all that stuff in probably just two days. Now let’s get down to the brass tacks. I can still buy houses. I am still buying houses
for 60, 70,000 pounds. And for six or 7,000 pounds I’m turning them into four-bed HMOs. 60 or 70,000 pounds. I can then put a mortgage on them. And I’ve put in maybe, I don’t know, the one I’m buying at the moment is 58, call it 60,000 pounds. I’m gonna spend seven, so call it 10. So say my total cost to
buy it and develop it into a four-bed HMO is a
total of 70,000 pounds. The mortgage I’m gonna put on it is 85. So I’m gonna have 15,000 pounds cash back over and above my costs and after I’ve paid a repayment mortgage, not an interest only,
a repayment mortgage, through a limited company,
my cash surplus per month is gonna be ’round about 600 pounds. My profit per month, 600 pounds, on a four-bed HMO that’s already given me 15,000 pounds cash back. You tell me, do HMOs still work? Like almost everything in life, what are the fundamentals? Does the demand exist? Yes, and it’s going up. Are you providing a service that people are prepared to pay for? Yes. Is it something that
technology could make obsolete? Don’t think so. People are always gonna wanna
live in houses, I think. Is it a good business,
therefore, to get into? In my view, yes. Can I do it in such a way
that I can recycle my money? Yes. Even on the little bitty ones,
can I make 600 quid a month after repayment mortgage. Yes. Do HMOs still work? I think so. If you’d like to learn more about HMOs, if you’d like to stay engaged
with the Touchstone family, I’d love you to. Please subscribe to this channel and you won’t miss another
episode of Money Matters ever. And if you’d like to
contribute to the program, I’d love that. Just tell me what you
want me to talk about, make some sort of suggestion
for an episode, please. Or if you want your questions answered about anything to do
with money or property, put it below, and the first
episode of every month, we choose the most interesting questions and we answer ’em live in
the first Money Matters of every single month. If you’ve enjoyed this please like it and please share it with two
of your family or friends that you think would
benefit from knowing about, in this case, the fundamentals of HMOs and do HMOs still work. Of course, there are so many people leaving the HMO marketplace, it’s a massive opportunity
for each and every one of you. If you’re an existing
HMO landlord, get more. If you’re not an HMO landlord yet, start. You’ve been wonderful. I’ve been Paul. See ya next time. Bye bye. (light music)

How Rich People Avoid Paying Taxes -Robert Kiyosaki


– Hey guys, welcome back to part two of Advanced Lessons in Millennial Money where we answer all your questions about taxes with Robert
Kiyosaki and Tom Wheelwright. If you missed part one you can watch it by clicking the link in
the description below. For the rest of us, let’s get started. Robert and Tom talk about the
three most important terms you should know if you want to understand how taxes can work for you. Let’s listen. – There are three basic accounting terms you must know in why I do this here. So when I have debt, okay, which is over here. Liability. The reason I want a lot of debt is because my hamburger business
is paying for my debt. What is that called? – It’s called amortization. So you’re paying down the
debt with other money. – That make sense to you? – Yeah. – So let’s say I have
$20 million in debt here. Every hamburger that’s being
sold is paying down my debt. Is that tax free? – That is. – It’s amortization but
if you’re on this side and you have a house is amortization tax. Well not really but who
pays for that amortization? – Well you pay for it. – Yeah, these guys here are
the suckers in this whole deal. They have a big house. That’s why most sports stars are bankrupt because they got the $20 million contract and they buy a big house
for mommy and daddy, right? – That’s right. – But they don’t get this bit here. The other word that is
important is this word here. And that’s called. – Appreciation. – Appreciation. So what
does that mean to you Tom? – Oh, well that what that means
is this is the asset column. It means that as the real
estate goes up in value, it’s appreciating and you get the benefit. What I love here is where the debt goes. It’s the bank’s money,
that’s the banks money, but you get the appreciation on your money and the bank’s money and
that’s what’s magic to me. – Yeah, so let’s say I have
one million dollars of my money in here, by levering up I
got six million dollars. Now this thing goes up in multiples of six but it’s the bank taking out that money. – They get none of it. – Debtors are winners, yeah. And then we have the third word. So you get the amortization, appreciation, and this is the magic word here that most people don’t understand. It’s depreciation. And this is where it gets tricky. See. Why is that actually both sides? – Well because what
happens is depreciation is a deduction for tax purposes but it’s no money out of your pocket. So, because of that,
what’s really happening is you’re lowering your taxes, you’re lowering your taxes
with the depreciation, okay, because your
paying net income right? So you lower your taxes with depreciation, which increases the amount of cash flow. – Yeah, so let me say this much. So let’s say I have $100,000 okay, that goes to taxes but
because I have depreciation, I don’t have to pay the $100,000 in taxes. So that means my income goes up but it also means my expenses went down. This is number one of all the things that’s hard to understand is this is simple. Everybody knows appreciation. Everybody knows amortization. I paid my car off, I
paid my student loan off. But this here is the trick here. See, depreciation means
instead of paying a 100,000 in taxes to the government
I keep the income but that’s why it goes up. – Let’s say that outside of this, let’s say you didn’t have this and you have all this income
from your business, right? Or from this business, either one. Okay. – This person can do it it too if– – This person sometimes can do it, okay. But this person can do it, this person. Let’s say that you have
all this income coming in, you’re paying all this tax. Let’s say you have $100,000 of tax. Okay, now you go out and
buy a piece of real estate. Well, why does the government
give you an incentive? Well because they’re–
– Not a house, now. Not your residence. – Not your personal residence. This is investment. So, this is housing for other people, or–
– Apartment housing. – Or this is commercial
property for a business. – This is an office building that I own. – Exactly, an office
building or hotel, okay. Any kind of business real estate. – That’s bought with debt too. – Now we add the debt. So, now let’s say that
we had a million dollars of your own money and five million dollars of the bank’s money. Well we get depreciation deduction, a percentage of the six million dollars. So the bank doesn’t get any of that. We get all of the depreciation
six million dollars. That could be as much as $500,000 a year and because we’ve got
that much depreciation, that’s just a reduction
of our tax expense. – Right, so it’s 500,000 extra in income but it’s actually called phantom income. – Right so what happens
is because we’ve got, now we have less income
for tax purposes, right? – We don’t have to pay the– – We have less income for tax purposes so now what happens is we
have to pay less taxes. Okay, because we’re
taxed on our net income. We’re taxed on our gross income
minus our business expenses and in this case the business
expense of depreciation is like magic because it’s
not money out of our pocket. We’re still appreciating. We’re still making money here and here and cashflow from the property. Okay and at the same time
we’re reducing our taxes. Well anytime you can reduce an expense, I’m an accountant and so
I love reducing expenses, and every time you reduce expenses it’s like putting money in your pocket because now you have more
that you didn’t spend. – Right, so this is the same number. So let’s say it’s 500,000, that means 500,000 in income
we didn’t have to spend, but it was caused by 500,000 in expenses you didn’t have to spend. So you paid nothing for taxes. – Oh my gosh, don’t
worry guys I’m still here but that was a really long
clip but very important. Next we discuss the most
important lesson of all and that’s financial education. Then, Tom and Robert wrap
up our discussion on taxes and where you get the most benefit. For example, a lot of millennials, the first thing they would
do when they get a check, is go spend it and I think
that is the big difference. – If their parent’s did the same thing. – Yes, because they didn’t
get the financial education but then I see you– – No, but I bet your economy
teacher does the same thing. – Yeah, and then I see people
like you that the moment, I mean it’s like you said what
do I do with all this money. I have to find the next investment, and it’s just that’s a
really impactful lesson. It’s not spending it,
it’s investing it again. – So as this goes up, I’ve
got to borrow more of this so I can buy another asset here so I can get more depreciation this way, more amortization, and more appreciation and I just get richer
and richer and richer. Is this legal, Tom? – It’s legal, and you know, I was just thinking as you
were talking about this, that, you know, the depreciation sometimes it’s got a cost recovery
or has other terms in different countries,
okay, and sometimes, and the rates are different and how much the depreciation is, but the concept is very consistent
from country to country. It’s one of the first things I look for when we go to a new country is how does depreciation
work in that country. Sometimes it works only on new property, sometimes it works on used property. You know, sometimes, you
have to build it yourself. So whatever it is the tax laws are there. Here’s what’s going on, we
talk about this all the time. The government’s your partner. Well if you’re unemployed your government’s taking
40% of your money. They’re your partner,
they’re a silent partner and they’re giving you
nothing back for that, okay. If you’re a small business
they’re taking 60% of it, but what happens is that if you start doing what the
government wants you to do, big business, investor,
investing energy, and– – Real estate. – and real estate. – Food, water. – Food, water, all those things. You start doing research, okay. You start new things the government wants they’ll say ‘Look, we
know that that’s risky. As your partner we will
contribute to that cost’ and that’s really all
that depreciation is. Depreciation is just the
government’s contribution, okay, to your real estate investment. That’s all it is. – Yeah and in kind of the cliche term is, between Tom and I, is I
want more phantom income. Phantom income means money
that stays in my pocket or doesn’t go out of my pocket. So the same money. – Right, and you make a good point that if you’re buying your own house, for example, you’re not
gonna get that tax benefit. There are some countries that have small tax
benefits for your own house. What they really want is
for you to build housing for other people, okay. Then you’re being generous and
then you get the tax benefit. – Thank you guys so much
for joining us on this video and I hope you guys loved
it just as much as I did and if you did give it a thumbs up, comment if you have any questions, and subscribe to our channel. (foreign language) Oh my gosh I almost fall asleep but that was a very long (laughs) clip. Oh my gosh I’m still awake. That was really. (laughs) Thank you guys so much for
joining us on this episode. I spit. (laughs) The most important lesson of all. Whoa. (laughs)

How Real Estate Investing REALLY Works – Real Estate Investing 101


What’s up everybody,
I am Jaspreet Singh, and welcome to the Minority Mindset. If you’ve been
watching our channel, you understand that the best way to build your wealth is not
by listening to your math teacher and just saving 10% of your income in your savings
account. Keep saving, Johnny, you’ll be wealthy one day, hopefully. The truth is,
the real secret to building wealth is investing. With investing, you’re not
buying things that lose you money and make you poorer, like cars, and shoes, and
clothes, you’re using your money to buy things like real estate, which will, one,
pay you with cash, and they’ll make you wealthier. So today, I’m going to give you
a crash course on real estate investing because, I wish somebody would have told
me these things when I was getting started in real estate, but, before we get
into it, make sure you hit that thumbs up button below, and subscribe to the
Minority Mindset YouTube channel, right below the screen, and make sure you hit
that little bell too, because if you don’t, then YouTube doesn’t tell you when our
new videos are released. First, so we’re all on the same page:
how does real estate investing work? Real estate investing is when you buy a
property—not to live in yourself—but to rent out to somebody else. You’re buying
property like a house, an office building, a real estate building, a strip plaza,
this way, you can let other people live in, or use this property, and in exchange
they’re going to pay you rent every single month. That’s what real estate
investing is, but let’s talk really briefly about what real estate investing
is not. As much as your banker and all of your friends want you to believe this,
real estate investing is not going out and buying a big beautiful fancy home
for you to live in, because you think you’ll be able to sell it for a profit in
a few years. That’s buying a liability. You’re buying something where your money
is going out, and your money’s not coming back. Real estate investing is also not
buying a property, fixing it up, and then they’re trying to sell it three months
later for a profit. That’s flipping. It’s very active, and
it’s cool, and you can make money doing it, but it’s not real estate investing.
Second, why should you be investing in real estate? The simple answer is: so you
can make money. The complex answer is: so you can be financially free. Real estate
is a tangible investment, and it is robot proof, because people will always need a
place to sleep, people always need a place to eat, and
people will always need a place to work. When you are a real estate investor, you
will be getting rent checks every single month, even if you’re sitting on the
beach in Hawaii. Plus, real estate investors get tax breaks. Now, while I am
a licensed attorney, I’m not your attorney, so if you have
specific tax questions, talk to a tax professional in your area, but, have you
ever wondered why people like Donald Trump can own a bunch of real estate, and
they can make millions of dollars a year in rental income, and then they can turn
around and pay close to zero dollars in taxes? It’s because the tax code says
that real estate investors get tax breaks. And yes, it is legal. Let me show
you what I mean with some numbers. If you are a highly skilled, and highly educated,
and highly talented heart doctor, you might be able to make—my heart is
lopsided, sorry—1 million dollars a year from all the heart surgeries you do. Now, a
million dollars a year is a lot of money, but, because you are making this money
from your job, you don’t get to keep all 1 million dollars, because that’s what
the tax code says, you will get to keep somewhere between 500,000, and 600,000
dollars after paying your taxes. Still a lot of money, but you didn’t get to keep
all 1 million dollars. Now, on the other hand, let’s say you are a real estate
investor, and you bought this property for $100,000, and a few years later this
property goes up in value to 1.1 million, so you sell it. You have a profit of 1
million dollars, and now, you think that you have to pay taxes on this 1 million
dollars of profit, right? Well, the tax code says: if you take this 1 million
dollars and you reinvest it into a bigger piece of property, you don’t have
to pay any money in taxes today. It’s called the 1031 exchange, and now you own
a bigger piece of property, and you’re going to get bigger rent checks every
single month, and now if you go back to your beach in Hawaii, you’re going to
continue getting paid vs. if you were this heart doctor, and you go to a beach
in Hawaii, you won’t be getting paid anymore because, well, if you’re on the
beach, you’re not doing heart surgeries, and
you’re not getting paid. And in case you were wondering, you also get a bunch of
special tax breaks for the rental income that you get, so if you make a million dollars
a year in rent, you get a bunch of special tax breaks for that too. Third, let’s talk
about some of the kinds of real estate you can invest in. You have single-family
homes, apartment complexes, shopping plazas, land, mixed use properties, mobile
home parks, office buildings, retail, hotels… There’s a lot, but, what you have
to remember is that each piece of real estate has two different businesses
involved. You first have the business of owning the real estate, and then you have
the business inside of the real estate. Look, you can own a CVS building without
operating a drugstore, and you can own a hospital without being a doctor, or you
can own an apartment complex without managing the tenants inside. When you own
the building that CVS is renting, now you own the property, and CVS is doing the
work to find customers, and manage inventory, and hire staff, and sell their
stuff, your job is to collect the rent. When you are a real estate investor, your
job is to own the real estate, not run the business inside. Now, this is easy to
understand when we’re talking about investing in a CVS building, or investing in a
hospital, but what about when you invest in a house, or an apartment complex?
Instead of being the person who gets the phone calls when the tenant says: Hey, I
didn’t eat something too good last night and I clogged the toilet. Can you come and
fix this? You want to be the real estate investor. You can hire a property manager
who will get paid a percentage of your rental income, and they will handle all
the management work. So, they will pay your bills,
they’ll make sure the tenant’s paying on time, and if they have to kick out a
tenant, they will handle it for you, this way you can focus on being the
real estate investor. Number four, how do you get in? If you want to invest in real
estate, you need money. Okay, you can buy
properties with cash, you can go to the bank and get a loan, or you can get a
bunch of friends who have money, and you can pool your money together to go and
buy a bigger property. And then beyond these three, you have this whole world of
creative financing, but you need to understand that the numbers have to make
sense. You do not want to buy a property where you’re losing money every single
month. Crunch the numbers, make sure that the income that you’re getting is enough
to cover the expenses and put some money in your pocket every single month. Once
you’ve got your numbers down, make sure, this is not a recommendation, this is a
must, make sure you have a real estate attorney, and you have property insurance
for all of your real estate. You have to do this, this is coming from somebody
who’s not just an attorney, but from somebody who’s a real estate investor
who’s been sued by a tenant because they claimed that the bathtub got too
slippery when it was wet. This is a true story, so make sure you have an attorney
and insurance. And number 5, you need to understand the real estate market. Not
only do you need to understand where you’re buying, which is the micro-level,
but you have to understand the macro level, which is that real estate has
cycles. There are times when the real estate market is booming, and then
there’s times when the real estate market is coming down. Remember, when
you’re a real estate investor you’re not buying property so you can flip it in 6
months for a profit, you’re buying it so you can create a positive passive income,
this way you can make money each and every month, so when you’re buying real
estate, make sure the numbers make sense. And second, you want to buy in a location
where people are moving to. I have paid premiums for real estate in locations,
while still being profitable, because people were moving into a location, and
over the long run, this has proven to be much more profitable. I’ve talked about
this before and I’ll link it in the description below.
The key here is to make smart money decisions, and in order to do that, you
have to understand what’s happening in the finance and business world, which is
why we created the free Minority Mindset newsletter. In our newsletter we break
down the top finance and business news, and then we show you how this news
affects your wallet. This newsletter is completely free, and you can subscribe to
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