North Metro REIA - Wholesaling Real Estate in Todays Market with No Credit or No Money

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Copyright 2012 by North Metro REIA,LLC
Smashwords Edition

Published by North Metro Real EstateAssociation in alliance with The REIA Network.

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For information contact

North Metro Real EstateInvestors Association
475 E Main Street
Suite 125
Cartersville, GA 30120
http://www.IWantEducated.com

The main part of the eBookis the transcription from one of North Metro REIAs classes withits members. For over 20 years , TonyYoungs has been perfecting and creating his own unique system,strategies, and techniques for acquiring foreclosure and hiddenmarket properties . Tony is truly passionate about helpingpeople to a better quality of life, choosing to do so by educatingthem in these duplicatable strategies.

Before we go into thediscussion, it is important that we define some terms, which willbe mentioned many times throughout this eBook. Please click herefor .

Today I am going to tell you little bit about wholesalingproperties, foreclosures and hidden markets. I guess you all arefamiliar with these terms. The best thing about wholesalingproperties is that you dont have to take the ownership of theproperty. Once you have the property under contract you can assignthe contract to any other buyer and get rid of it. There is hardlyany risk and you can make lots of money with very little or even nomoney of yours going down. Regarding foreclosures, it is a legalprocess in which the lender tries to recover his amount that wasgiven to another person who couldnt return it. This is usuallycarried out by forcing the sale of the asset used as collateral.And the last thing is hidden market-these are the opportunities tomake money at places where others overlook.

The reason for being here

So the question is: Why you are here?

Here what we do is take you out in fieldbecause that's where the deals are. The first day we do classroom.We teach you all about how to buy and wholesale properties and getthem under contract and the next day we actually go out there andvisit as many properties we can from 9 o clock until 5 or 6oclock and while we are in there, we are inspecting, we areanalyzing the repairs, we are estimating and we see that whether ornot it is a good feasible deal. Then we go back to theclassroom.

The next day we actually pull the computersand type best offers on the houses and submit them and we show youall the resources that we used to get all the information to makebona fide offers on houses and begin to get accepted. We make 10-20offers and anything that gets acceptedusually its a numbers game,so we get one or two accepted just for the classits the quickestway to get a deal under your belt. I find a lot of people take alot of classes and other stuff and all sounds great. Here we learna lot but man, it's when we get home that our buyers are scared todeath!

I mean its a big thing to buy a deal. Evenwhen you have a deal staring you in the face, you are constantlylooking for something wrong with that deal. You always think, Wellthis could go wrong! You get so scared that you actually won't gothrough with it. So lets hope we don't do such things.

I find that there are 3 basic fears thatpeople have when it comes to buying real estate investments.

First of all, you are afraid to buy itbecause you know you don't really have the money. All these classesteach you, you could do a lot with your money but deep down inyour mind you know you dont have the money so you are terrified toactually make an offer. You are afraid if you'll make an offer itsgoing to be accepted. So thats what we try to train you, how towant to get it accepted and how to have the courage to go throughit.

Secondly, if you get something accepted youare afraid you are not going to get rid of it. The people will tellyou, Hey, man, you are not going to get rid of it! and then youget terrified. Hey, man, I am so worried I am not going to get ridof it.

And lastly, you are afraid if you are goingto buy something that might have a major repair that you may notknow about like a foundation problem or something that you justmissed.

That's part of the training too, as we takeyou into the County court house and teach you how to do a titlesearch. As a matter of fact, since all court houses are online,like Cobb County, which has its own title search website. I am notsure about Cherokee County but I do know that there is asubscribing website called gsccca.org that will tap intoevery court house in Georgia including Cobb. But Cobb, Fulton, theyusually have their own websites.

The process that we follow..

The process that we follow here is the triedand tested method similar to what I did when I started investing inreal estate. Okay, what we do is, we have classrooms to teach you.I am Tony. I live in Georgia. I have been investing in real estatesince 1986, mostly in the foreclosure business. I have been doingmainly pre-foreclosures for the first 10 years and then it got bithard in 2007.

Not many people wanted to sell their houses.I had a good job at a private firm, right after I got out of highschool. I was an aircraft maintenance guy and then in 1986 I wentto a seminar and bought some books and started to study them. Myfamily members thought, Whats gone wrong? He doesn't work! I hadto prove something. I said, Man, I know this work and I believedthis is going to work for me. I just kept the legal notices andstarted looking at foreclosures. I just drove by and looked atthem. I plotted a course and I would go out and look atforeclosures, didn't know what I had to do, but I knew that therewere plenty of properties out there.

Once, I ran across a vacant foreclosure withhigh grass similar to this one shown here

and I went and started looking into windowsand it turns out that it wasn't vacant. I went around the backyardto have a look at the windows and I found a lady staring at me. Isaid Oh, my gosh, you know I better tell her why I was looking inher windows. So I went to the back door to tell her "Maam I am sosorry, I saw this house was in the legal notices scheduled to go upfor auction and when I drove buy I thought it was vacant. I had noidea someone lived here. She said Well, it is for foreclosure butif you would like to buy, come on in I will show you around andshe took me in her house with no electricity as they hadn't paidtheir power bills, the house smelled bad, had stuff everywhere. Itwas dark and dingy. She showed me everywhere and then she saidWell, how much will you pay for the house? Now I don't have aclue because I was brand new. I said How much do you want? andshe replied, $85,000. I was confused, Is that a good deal? Ididn't know what a good deal was, but she said, Yes! It is a gooddeal, all houses in the neighborhood went for 120 thousand and Iwill let you have this one for 85. I thought well, it needed somework and it looked as if it needed a lot of work so I clearly hadno idea how to turn to how much work it needed so what I did was, Ijust made a low offer. You know I was just thinking to myself, Oh,my God, how to get out of here? And then I was cursing myself Howdid you get in here? So I didn't know; well, perhaps if I made alower offer, she might turn me down and then I could go home andread my books. So I just said, I am looking for something around65, and she goes, No, we are going to stick to 85. So then Iwent and got into my truck and I was just about to start when allof a sudden she came running down the drive way shouting, Stop!Stop! I rolled down my window and said, What is it maam? Sheyells, My husband said we'll accept your offer. What offer? Did Imake an offer? I don't remember. I just wanted to get the heck outof there so I said, I think we need some paperwork, I got to gohome, I don't have anything. So as I left, I accelerated at 90 mphmaking sure she couldn't get my plates number.