A Negotiation Strategy

In our quest as investors to secure great deals we encounter all types of sellers. I have a special CD in my Wholesale package dealing with Flakey Sellers.

Here's another technique I've used over the years to ease sellers into my way of thinking.

My assistant Valerie handles most of the contacts for our residential leads and she does a great job of it. Occasionally, she'll arrange for me to speak to a seller to close the deal, besides it keeps me sharp.

In this case last week we were talking to a seller who owned a real junker of a property in a decent neighborhood. The seller had been straddling the fence with regard to making a decision. I was intent on nudging her off the proverbial fence.

I let her do most of the talking, so I could note the major concerns. Her thinking was that she wanted to renovate the house herself to grab a bigger profit. I've heard that one before!

Why people underestimate what it takes to do a quality renovation needed to sell a home is beyond me.

I guess some of the blame can be placed on that TV show Flip This House. The show gives the appearance of having a ball while picking out materials, laughing and scratching with the contractor and magically the project is done.

That???s show is painting a rosy picture. Anyone who does or attempted to do a renovation knows how much of a challenge it is.

After hearing the seller out, I politely asked her if renovations were what she did for a living? She said no. I asked had she ever done one before, again, she answered no.

Next I asked what she did for a living? She responded she was a computer technician. I then asked how long had she been in that field. She said about 15 years. I complimented her by saying I was sure she was good at what she did, she agreed.

I bet it is hard detailed work on your job, I said. It sure is, she responded proudly. With the setup in place, I went for the close. So, I asked her, what would you say my chances are of walking into your workplace next week with no previous experience and be able to do what you do?

She chuckled, and said she wouldn't give me any chance. She went on to describe all the training she'd gone through to become the high tech she was. As she talked, her pace started to slow, as the sobering realization started to ease into her mind.

She got the comparison. But to be sure, I made it clear. I told her that???s exactly how it will be with renovations. It's taken me years to build a team, the skill, the money contacts, etc.

Renovations are a skill that she believed she would be able to to do, and do it well. She thought she could manage a major renovation gut job. I mean this house was in such bad shape it would intimidate most rehabbers who had any good sense.

I turned it back over to Valerie who asked on cue, when would be a good time to send our contract?

This is a powerful approach to use on the seller who is not being realistic. Some sellers simply see dollar signs while discounting or downplaying in their minds the amount of serious work required to make things happen.

It's your objective to point this out to them. It's your objective to save them from themselves.

I can't tell you how many owners over the years shared with me their plans to renovate a property. Before, I knew better I'd scratched them off my list, only, to notice after awhile they never even got started OR they actually made the home worse.

In my city of Washington DC, there's still many abandoned properties where some would be rehabber started out only to get in over their heads.

During conversations with sellers, be sure to listen closely. Be ready to point out any flaws or weaknesses in their thinking but in a non confrontational manner. Never brow beat a seller into your way of thinking. You'll loose ???em for sure.

If you found this tip helpful send it to a friend.


Take Action!

Ken Williams
http://www.thewholesalewizard.com/

Finding Motivated Sellers Without Spending A Dime!

Contrary to popular belief it is possible to locate hot leads with motivated sellers on the other end without spending a dime

Conventional wisdom says you need to spend a ton of money subscribing to lists to sniff out motivated sellers. Not necessarily so.

Last night I interviewed two of my students who are finding great leads right in their own neighborhoods without spending any new money.

If you missed the call last night you have another chance to get the scoop.

Click here or copy and paste into your browser to listen to the replay

http://www.thewholesalewizard.com/audiorec19april.html

Also, a reminder, my five week telecoaching seminar starts tomorrow, Saturday April 21st you will discover many money making strategies and time saving techniques.

You still have time to sign up and have me lead the way to your next deal:

Go to this link now to register:

Take Action!

Ken Williams
Aka The Wholesale Wizard.....

Get involved by going now to:
http://www.thewholesalewizard.com/Register

Register now and get on the Fast Track to Cash!

Take Action!

Ken Williams aka The Wholesale Wizard....

P.S. To discover simple team building strategies and
more, join me on April 21st for my 5 week teleseminar/
coaching series: http://www.thewholesalewizard.com/

Listen In While I Interview Students With Deals

Be a fly on the PHONE this Thursday night April 19, 2007, see call-in details below.

Tomorrow night I will interview via a FREE telecall two of my students who have identified properties the easy way. Both are in conversation with the owners now.

Normally, you hear about the deal once it's over and the check amount is what is emphasized.

I know that kind of call may leave you wondering just how they found the lead? what did the owner say? and other things

So be a fly on the wall and listen to me interview my students and provide them with direction.

I'm making this telecall totally easy for you to join us. There's not even a link to click. Mark your calendar for this Thursday, tomorrow night, at 9pm.

Call this number 712-432-3000 PIN 462467 and

PRINT THIS PAGE AS YOUR REMINDER!!!

Take Action!

Ken Williams
Aka The Wholesale Wizard.....

Get involved by going now to:
http://www.thewholesalewizard.com/

Register now and get on the Fast Track to Cash!

Take Action!

Ken Williams aka The Wholesale Wizard....

P.S. To discover simple team building strategies and
more, join me on April 21st for my 5 week teleseminar/
coaching series: http://www.thewholesalewizard.com/

Fast Track Telecoaching Programme.

Got an email from one of my subscribers the other day who commented on my previous E-zine article about the frustrated guy who attended a three day event with a big seminar company.

This recent emailer hit the nail on the head when he made the following statement:

"All any investor wants is a blue print to follow which leads us to the most money with the least amount of our own effort"

Sounds like a quote from J. Paul Getty or someone like that, but he's right. How to use minimum units of effort to gain maximum units of profits, is every wage earner's and business owner's dilemma.

After coaching investors of all experience levels I know his to be an honest statement. Sadly enough there are folks who wish to make money with zero human effort.....now that just ain't going to work yet. The all robotic McDonalds test even failed back in the 90"s.

I do know that many are confused about what to do and how to get on track as an investor; and others want to get back on track with their real estate investing. The time is right for those folks and yourself if you too want to get on track..."The Fast Track To Cash" that is.

I have an awesome telecoaching program complete with PDF handouts where I walk you through step by step on how to get to the money, all from the comfort of your own home.

This is the 3rd time I'm teaching this program, my students of past coaching programs have loved it and many have prospered in a big way.

If it's your time to cut out the frustrations or the lack of belief that you too can start making money as a real estate Wholesaler, then waste no time;

Take Action now and jump on this link to register:
http://www.thewholesalewizard.com/

This training starts on the 21st of April so don't procrastinate.

Take Action!

Ken Williams

Tax FREE Real Estate Wholesaling!!!!

How to keep your wholesale profits Tax Free! Legally!

Sound too good to be true? Well, check out this amazing technique below.

Earn tax deferred or Tax FREE wholesale profits using your IRA account. Just think those $5,000 - $10,000 or $15,000 wholesale profits can be yours without Uncle Sugar taking a bite. Boy, once you get good at wholesaling properties, your averages could exceed $20,000 or more per deal!

Hold your hat! Here’s how it works. First convert your IRA to a true “Self-Directed IRA.” This is done by transferring your account to an IRS-approved securities company who will act as a custodian for your IRA on your behalf. There are a few such companies who are approved to do this.

I have my Roth IRA account with Equity Trust Company located in Ohio. I highly recommend them to anyone interested in doing this. Their website is www.trustetc.com. They also understand investors and what we do.

The transfer of your existing account will require completion of a simple application and request form provided by Equity Trust. If you don’t have an IRA, you’ll want to contact Equity Trust as well for guidance on setting up an account. By the way, I get no cut from ETC. I’m only looking out for you!

Mechanics of a Wholesale Deal into Your IRA

Identify a property; negotiate the price and terms with the seller. Next place a contract to purchase on the property with your IRA as the buyer. Complete a simple form called a Direction of Investment Form, provided by Equity Trust. Send this completed form back to ETC along with your ratified contract as verification of the deal. Equity Trust will wire funds or send a check to the appropriate payee.

Example: You find a property – 123 Main Street, Anytown, USA – you negotiate a purchase price of $250,000 cash and agree to settle in 45 days. You offer to pay $100 Earnest Money Deposit to the seller.Your IRA must make an investment in order to receive a return. Remember, we’re talking investments – not contributions.

On the Direction of Investment Form, you instruct that $100 be mailed or wired to the ABC Title Company as an Earnest Money Deposit for the purchase of 123 Main Street.

Complete the contract identifying the buyer as your IRA. Here’s what it would look like: buyer: Equity Trust Company, FBO (Your Name), IRA.

“FBO” stands for “For The Benefit Of”. You send this contract along with the Direction of Investment form to Equity Trust. They send the $100.00 from your IRA account. Your IRA now has a ratified contract.

Wholesaling this contract works the same as any other. You Simply contact a cash buyer and assign the deal to them. Complete the same assignment document. Only now, your IRA becomes the assignor and the assignee is the cash buyer. Simple!

Once the deal goes to settlement, your wholesale fee of let’s say $20,000 is sent right back into your IRA, tax deferred or better yet Tax FREE! depending on what type of IRA you have, beautiful, isn’t it?

The IRS will allow a company like Equity Trust to do deals on your own behalf five or six times per year. You’ll want to discuss this rule with the Equity Trust Company. While you’re at it, have your Equity Trust advisor explain to you the difference between the Roth IRA and other retirement accounts. Investing in your Roth means tax-free profits.

This is an awesome strategy to add to your tool chest of money making and money keeping moves as a real estate investor.

If you liked this tip, there’s more where that came from in my world’s best Wholesale system. I’m offering a five week telecoaching series to get you on the Fast Track To Cash starting this Saturday April 21st. If it’s Cash you desire in your life to turn a few things around you can’t afford to miss out on this training.

Go now to http://www.thewholesalewizard.com/ to get registered.

Space is limited, since my bridge line will only hold so many participants.

Take Action!

Ken Williams

PS. Learn techniques like the one above and more at
www.thewholesalewizard.com…….

Set Up Your Core Wholesaling Team

Taking steps to set up your Wholesaling team.

(be sure to pass this to a friend)

To survive as a successful Wholesaler you cannot be a lone wolf. I see some investors handle everyone like an opponent. That tactic only lasts but so long.

To be in this business any length of time you will have to depend on others in a give and take relationship. To survive as a Wholesaler you must assemble a small core team of players to help you get things done.

I use the analogy of a basketball player position, the point guard. He may be the best ball handler in the world but unless he has someone to pass to, block, or screen the opposition he'll be ineffective. even overwhelmed!

The Wholesaler is no different. They are the first one in to set things up. Unless they have others to pass things off well, their deals wither away before their very eyes, and they becomes ineffective very quickly. Soon they earn a reputation as someone who can't close deals, as word gets around quickly.

So who should make up your core teammates?

1) Settlement Attorney/Agent
2) Cash Buyer

That's it! With these two players as a minimum you're in business. Of course your team members will grow as your business does.

Notice I didn't mention a CPA, a Realtor, Tax Advisor or Asset Planning Attorney! These are all valuable players you will certainly want to add to your team eventually, but for starters your two most valuable players are your settlement attorney and a cash buyer.

Ironically, I see far too many Wholesalers abuse both. They mistreat the buyer by deceiving them of the facts then getting into a tug of war over price, etc.

With the settlement attorney they waste their time with empty promises of deals they're working on. Or have the attorney/agent pull title searches on property they've miscalculated. And worst of all some Wholesalers attempt to trick the settlement attorney/agent into doing an illegal or awkward transaction.

That's counterproductive. When treated as part of your team both players will make your real estate life so much easier. Everyone will be working on a common goal, which is to get the money as quickly as humanly possible and hassle free.

When you take the win-win approach you eventually won't have a need to show up at settlements. Your cash buyer and attorney will know their roles and take care of everything at settlement;. meanwhile, you'll just wait for a wire transfer.

You as the Wholesaler will have your attention on the set up. Bringing the deals in to pass off. Your two core team members will appreciate your business and respond accordingly especially if and when you need help in tough situations. There's nothing like back up.

Contrary to the scenario above which will run like a well oiled machine with just three people, many Wholesalers complicate everything.

But-but-but, what about setting up my LLC? What about my tax planning? What about a realtor on my team?

First of all don't waste your time and money setting up an LLC before your first deal. I've seen many waste both time and money on an LLC only to never get around to doing a deal.

If you really must have an LLC on your first deal, your settlement attorney can create one for you at settlement using your proceeds from the deal, no old money spent. Remember your revenues should always precede your expenses in any business.

Tax planning can be placed on the back burner until you get some deals flowing. There's no bigger waste of time than tracking down a busy CPA to talk about your hypothetical deals. Once you have one or two under your belt, the CPA will be more open to talking to you about "what is" instead of "what might be."

As for real estate agents, I love em! But, not many of them understand what we're looking for and how we figure our profits. Besides, to be an effective Wholesaler, you must repeat this motto to yourself everyday until it's second nature. "GET THERE FIRST!!!!"

The more people between you and the money means less money and more time to close a deal. Like the other eventual players, a realtor should be added at some time to your dream team, but under your directions.

Take this tip, and tuck it safely under your cap for future reference. Resist getting off track and plunging yourself deep into the weeds of counter-productivity.

You'll discover more strategies such as this one straight from me, The Wholesale Wizard by joining me on April 21st. That's this Saturday which is the start of a 5 week teleseminar/coaching program. I will fill you with plenty of useful money making techniques.

Get involved by going now to:
http://www.thewholesalewizard.com/
Register now and get on the Fast Track to Cash!

Take Action!

Ken Williams aka The Wholesale Wizard....

P.S. To discover simple team building strategies and
more, join me on April 21st for my 5 week teleseminar/
coaching series: http://www.thewholesalewizard.com/

Major Announcement Coming Your Way

"Heads Up!" As we used say on the baseball field when a ball was coming ones way. Some heads would crane upward in search of the errant white missile (baseball) others would duck between hunched shoulders.

Well, you'd better not hunch your head between your shoulders or anywhere else for that matter, cause I've got a real doozy coming your way in a few days.

I want you to stay glued to your PC each day in search of my emails, because I'm planning a real special deal just for you, IF you act quickly.

Ok, enough said, please monitor closely your inbox for emails sent from theWholesaleWizard.com.

As always, when you see what I have in store for you I want you to live up to our motto which is........

Take Action!

Ken Williams

Much success to you.
Go to www.thewholesalewizard.com for more information.

He's Located His First Lead - Already!

He has located his first lead and is talking to the motivated owner after just one day of receiving my Fast Track to Cash Wholesaling system.

During his morning walks in his OWN neighborhood he found a cleared water front lot which apparently had something go wrong.

There had been a foundation poured, framing materials delivered and stacked on the ground. He could tell it had been some time since any action took place on this project. The grass had grown all around the pallets and materials.

He used my system to locate the owner and called. He made contact with a very motivated owner. He then got the scoop on what happened with the project. Turns out a minor squabble stirred up between the owner and his contractor.

Each not willing to budge, (testosterone at work no doubt) they are in court fighting it out.....over a very minor cost, as the story has been relayed to me. My opinion is they'd both be better off cutting their loses, move on and save the thousands in legal fees and wasted time.

Ok, back to the story. The owner's self description was that of a motivated seller ready to get rid of this lot (his headaches) as soon as the judge makes a decision on the case in 60 days. Whoa Nelly! that’s a long time for us Wholesalers to wait.

My student emailed me with the details and for advice. I gave him a few suggestions which he will now take and run with. My main objective is to get the owner to sell prior to the final court case in 60 days. But how?

I gave him some verbal ammunition to work on both the owner and the contractor to reach a resolution. Convince both of all the money they'll save, while keeping each one's pride in tact. After all, solving real estate related problems for others is what we do to generate our profits.

Now my point to this story is to illustrate how easy it is to locate HOT leads when you know what you're looking for. In the case of my student above he has no competition from other investors on this lead. This lot is off the beaten path, tucked away out of the public's eye. A true Pocket Property and that’s what I teach.

These properties are everywhere. There's one waiting for you, right under your nose, probably in your own neighborhood.

Funny thing is this same student, mentioned above, just registered for my Fast Track Coaching program which starts April 21st. He came to me after taking another training program which he said took his money and time offering little direction.

He'd been instructed to look for REO's (Bank owned properties) until he realized the good deals with REOs were few and far between in his area. He suspected (his words), that the trainers just wanted to sell the list of REOs to him and others.

Hmm. . . ., no comment there.

If you too are tired of the run around about how to put the Fast Cash into your life then join me on April 21st for a five week coaching program that will get you on the Fast Track To Cash. Go now to:

www.thewholesalewizard.com and get registered.

As soon as you register I will send you your Wholesale Manual so you can get started. If you find a lead before the training begins you'll still have access to me via email for support once you contact the owner.

Take Action now and go to: www.thewholesalewizard.com

You can’t loose with this step by step program.

Take Action

Ken Williams aka The Wholesale Wizard

P.S. You too may find a HOT lead in your own neighborhood during your daily walk. Don't know what to look for?

Go now to www.thewholesalewizard.com

Get your Envelopes Opened

I got a call the other day from a lady who owns a house I targeted with my "Harpoon Marketing" approach. In my Wholesaling System, I explain how to set up your marketing with a low cost approach.

This lady called me after receiving one of my hand written letters stuck inside of a hand written envelope. We went on to have a most unusual type of conversation. One you might not expect under the circumstances, read on.....

First of all she introduced herself as the Mrs. of her home, then immediately wanted to know how I'd found them? Why I targeted their house? She had so many questions for me in her energetic, straight to the point manner of speaking, I could only respond.

As she put it, she was stunned! Stunned by how I'd found her house tucked away at the end of a quiet street, and why? This was different, I thought to myself, since I'm supposed to be the one asking the questions.

Now, I realize my marketing is much different from what's being taught by most gurus as the norm, but "stunning the recipient" was a new way of describing it. This lady, let's call her Mrs. C. wanted to know "what" about her house caught my eye? "Careful now Ken," I thought to myself.

I almost said well, "I look for unkempt houses," but knew that would make a short version of our conversation. Instead I told her with tact and a ton of charm, that I lived in the neighborhood and during my morning walks, I make note of houses which catch my attention.

I notice houses because of their fine detail of architecture and potential. (That's only part of it. Between me and you I look for houses which need a little or a lot of TLC)

I further explained that I restore properties for a living. I bring them up to a standard of stunning beauty (I used her language to connect with her). You can use this same explanation even if you don't do rehabs, just by saying you work with a team of investors who restores properties.

"Why are you still interested in real estate?" She asked innocently enough. She went on to say, "I thought real estate was pass? as an investment. I've been in my house since 1984 and everyone else I know wants to stay put for now."

I continued to talk to this lady sensing a possible bird dog. (you know, a scout for more properties). I explained how I didn't care what the rest of the world did, as long as there was one person looking for real estate I would have something for them to buy.

I added that I also pay a referral fee to those who put me in touch with an owner who sells to me. I worked her again, asking if she was sure she didn't know a single person who wanted to sell their property. She couldn't think of anyone at the moment but agreed to keep my name and number in just case.

Finally, I had to ask her a burning question. I asked Mrs. C, "what about my letter caused her to call me?" She said first of all inside the envelope she heard a jingle sound. The fact the envelope was hand written caused her to believe it was someone whom she was acquainted. Once she opened the letter she was overcome or "stunned" by curiosity.

"Curiosity" will get more of your mail pieces opened and read. With regard to envelopes, the recipient has to be compelled to open the darn thing before they read what's inside.

That's why I hand address my envelopes and place something inside to make noise. My favorite stuffers are coins. That's right I place pennies and nickels inside to feel lumpy and jingle. I usually mix things up with the envelopes themselves, using colorful party style envelopes. In this case Mrs.C. received my white No. 10 envelope which I hand addressed with "Neighbor" followed by her address.

This technique is just one of the many I use to get to my property leads to respond. I mailed only four (4) envelopes along with the one I sent to Mrs. C. and received one call in a matter of two days. That's a 25% response ratio.

In case you didn't' know even the best direct marketers hope for a 1 or 2% response ratio. I can expect another call in a few days or weeks from that small batch as is usually the case with my marketing. Why? Because I approach things in reverse of the norm.

I first spot the property, research it, or scrub it as my students are taught, then I send out a letter or post card to a laser beam focused list. I've been using this same approach for over 12 years now. I've never mailed out more than 100 marketing pieces at a time for houses - ever. It's usually more like 10 to 15 at a time, and my deals are more lucrative than most wholesalers.
I believe in spending time doing a bit more research to ensure a better success rate. It was Abraham Lincoln who said "given eight hours to cut down a tree, it's best to spend seven hours sharpening your saw." I love that quote.

This is only a snippet of what's in my wholesale system which is still on sale with only a few sets remaining. Also inside the pages of my awesome system are phone scripts for you to use. If you're strictly a Wholesaler, I tell you what to say, and how to say it, you can't go wrong.

If you want to know more about my "outside of the box" strategies to real estate wholesaling, you must take action now to order my system while it's at half price.

Go to or paste this link in your web browser: www.thewholesalewizard.com/basementsale.html

This SALE price is good only as long as supplies last, and they're going fast. I expect my basement to be clear of books very soon, then it's back to full price again.

Save this tip for yourself, then forward it to a friend and remember to.....

Take Action,

Ken Williams aka, The Wholesale........

PS. To get my Wholesale System at Half Price and discover more "outside of the box" money making strategies like the one above. Be sure to hustle over to:

www.thewholesalewizard.com/basementsale.html

Get The Landlord’s Advantage Using Wholesaling

“Less is More. . . . .” Most investors who have the goal of owning rental properties usually have one thing in mind – “Accumulate as many rentals as possible!” They lock onto this goal without any regard to the negative effects it could have on their quality of life.

They make the all too familiar mistake of over-leveraging their properties and their time. The objective for owning any investment property should be for the sake of it serving you, to make your life easier.

Instead, what happens is the reverse. The investor starts serving the investment. This is especially true of rental property owners. Ask me how I know? You guessed it! I made the same mistake, and I learned my lesson – the hard way! Now I try to share with with others what I learned to avoid them having to make the same mistakes.

Think about this for a moment. Wouldn’t it be more appealing to own half as many rentals, but earn a higher return? of course it would. This business should be fun. It should make our lives more enjoyable not miserable. Attention, land lords! I’m about to share something with you that will turn you into believers!

Instead of owning 20 properties leveraged up to 75%-90%, I’m going to share with you what I call “The Landlord’s Test”. Some of you will have to see for yourself before you are believers. So, take a look at the example below:



Example 1
20 Properties Owned $100k value each
$80k 1st @ 8% / 30years = 587 PI
PI $587 + Insurance $20 + Taxes $75 = $682 monthly costs
Rent $900 ($900 - $682 = $218 x 20 properties = $4,360 monthly

Example 2
10 Properties Owned $100k value each
6 properties (same financing as above)
PI $587 + Ins $20 + Taxes $75 = $682 monthly costs
Rent $900 - $682 = $218 x 6 properties = $1,308 monthly

Example 2 continued
4 properties (owned free and clear)
PI 0 + Ins $20 + Taxes $75 = $95 monthly costs
Rent $900 - $95 = $805 x 4 properties = $3,220
10 properties $1,308 + $3,220 = $4,528 monthly




In this example, I used properties with the same values. Most property owners follow Example #1 and are always scrambling to keep up with their properties. They’re consistently in “Catch-Up” mode. Owning less properties, affords you more time. Time for yourself, time to carry out the “Twice A Year” preventive maintenance. Before long, you’ve saved money on your overall expenses.

The way to accomplish this is to wholesale properties. If you wholesale consistently, you can pay the loan balances down on your rentals until you own a few properties free of debt. Keep this up and before you know it, more of your rentals are paid off.

Just because my example shows the ownership of 10 properties with 4 owned “free and clear”, shouldn’t mean you stop there. My only emphasis is on quality versus quantity. You should continue, your goals should be accumulating rental properties at a pace where you keep quality ownership along with maximum profits. Learning to wholesale will certainly enable you to do just that.

This strategy is straight out of my Wholesaling manual. If what you just read makes sense then you ought to have the world’s best Wholesaling system called “Fast Track To Cash.” In it you will find this and many other simple to understand money making strategies, minus the hype.

As a matter of fact, your timing is perfect since I’m including with the purchase of my “Fast Track To Cash” manual, a five week, get you started coaching program which starts April 14th. I will help you get on the Fast Track to Cash.

Take Action and go now to this link

http://www.thewholesalewizard.com/

Take Action!

Ken Williams aka The Wholesale Wizard

P.S. Get involved with my 5 week coaching program you need to Go to this link now: http://www.thewholesalewizard.com/

Feeling Confused and Abandoned

I got a call yesterday from a guy who was really frustrated and needed to make money in a hurry. He was referred to me by a mutual friend, which happens all the time. What made this guy different right off the bat was unlike most friends of friends who claim they want to get into real estate investing, this guy had been taking action, most just talk and never make a move.

This gentlemen’s problem was not lack of action, his troubles stemmed from misdirected action. He was so excited to be talking to me about wholesaling he rambled on a warped speed.

Whoa there! I had to slow him down and get him to relax. Sometimes I feel my role is that of a therapist. He went on to describe all the things he had been doing in search of his first wholesale deal.

Wow! I was blown away! Just about everything he told me was dead wrong, essentially he was spinning his wheels. I asked him where on earth did he get those ideas?

That’s when his water fall of words came pouring out. He’d just spent over $1500 to attend a two day event with one of those big seminar companies which blow through towns leaving a wake of confusion and empty pockets.

He bought into this program because they promised to talk about wholesaling, the only thing he was interested in learning about. But much to his dismay the speakers spent all of 15 minutes on wholesaling and somehow managed to send him down the wrong path for the money.

He went on further to say he and others in attendance felt confused and abandoned, not knowing what to do first or what to do next, the speakers left them to their own interpretations.

Now, it’s not my style to knock anyone’s training program, but I had to tell him he was barking up the wrong tree, - big time! I then reassured him he was in good hands now – mine.

I corrected a few things he was doing wrong and shared how I instruct in wholesaling. He was even more excited and ready for what I had to offer.

According to him I was the “go to guy” when it came to wholesaling properties. I will have to agree with him on that point! I have spent many years testing what works best and what doesn’t work, and what things are just hype.

If you know me, then you know I dislike anything that even smells of hyperbole. I’ve put a microscope on the subject of wholesaling where many gloss over the subject leaving it to a student to make interpretations.

So my caller was ready to do things right this time. He needed money in a hurry to take care of some bills and other pressing matters.

I invited him to my Fast Track To Cash Wholesaling five week coaching telecalls. I told him I would provide step by step instructions and take his questions after each call. I will even assist him with his deals. He was ecstatic, and replied by stating “let’s start now!”

Well pump your brakes, I told him. This training is a group deal which starts April 14th, yes, that is a Saturday. I want to get your ball rolling in a hurry, I directed him to: www.thewholesalewizard.com

If you are one of my current students who has my Wholesale Manual you’ll get a $200 “wizard coupon” good towards any of my products, live events or co-sponsored events. That’s everything with the exception of my Inner Circle Programs.

When you go to the web site to register be sure you scroll to the bottom to listen to what others who took this same training had to say.

Click on now, or paste into your web browser to register: www.thewholesalewizard.com

Take Action!

Ken Williams

Much success to you.
Go to www.thewholesalewizard.com for more information.

What is Real Estate Wholesaling?

I received an email from a lady, who asked, what exactly is Real Estate Wholesaling?

You see my 50% Basement Sale promotional emails are going to my entire subscriber list. Some people like this lady are on that list but not yet students. They are very interested in what I teach, Even though they have never met me in person.

Click here or paste into your browser for the sale information www.thewholesalewizard.com/basementsale.html

I’ll let you read her words

“Hi Ken,

Your offer to buy your course for 50% off sounds real good, except for one thing. I’m not all that sure what real estate Wholesaling is. Sorry to sound so uninformed. I recently signed up for your weekly tips because I have an interest in real estate and I also find your tips entertaining while still informative.

I know you’re busy but please have someone respond to this email so I can determine if this is something for me. I’m a mom without a whole lot of spare time.

Thanks”

JoAnne, Oregon

(My response to her) Hello JoAnne,

Thank you for the opportunity to clear things up for you and anyone else who may have the same question, because I don’t want you to miss out on this great offer. (By the way, I have many students who are moms and dads with little time, going full force in this business!)

Wholesaling in a nutshell is taking control of a property with a contract then assigning your rights to that contract to a CA$H paying buyer. My students all over the country are averaging $10,000 to $15,000 per deal. Fast Cash Deals!

This requires very little money ($10) out of your pocket with little risk to you. Follow my system and you’re in and out of the deal in 30 days or less.

There is no Faster, Safer, Easier, Money Making Strategy known to real estate for putting Cold Hard CASH into your pocket.

Wholesaling is the undisputed KING of CA$H!

This sale 50% off means an investment of $597, to make $10,000 on the low end. That’s more than 16 times your investment. Need I say more?

To take advantage of this sale, while supplies last click this link or paste it into your browser: www.thewholesalewizard.com/basementsale.html

You have nothing to loose and everything to gain. I’m offering my 30 DAY Money Back Guarantee!

If this is not for you, send it back no questions asked. I'll refund 100% of your money!!!!!

Take Action and go now to: www.thewholesalewizard.com/basementsale.html

Ken Williams aka The Wholesale Wizard....

PS. Don’t miss out on the Quickest, Easiest, Least Risky, Money Making Strategy in real estate investing. WholesalingIs the KING of CA$H!!!!!

www.thewholesalewizard.com/basementsale.html

Calling Owners of Properties

Notice I didn't say calling sellers? That was intentional, mainly because due to my deal making approach, most owners you'll call aren't sellers yet! That's where you'll come in.

The best, meaning the most profitable deals, I and my students make aren't listed, for sale, or in the public's eye in any way.

My system instructs, the best fast cash approach is to find the property first, then back into the owner. There's little competition for your deals using this approach.

Remember, if it’s public (the property), it’s been picked over,picked over by those investors with contacts with agents and banks.

Therefore, you must be shrewd and economical about your movements, no wasting time, energy, or money. Get straight to the heart of the matter.

Speaking of which, the same objective is true when making outbound calls to owners; getting to the heart of the matter as quickly as possible without sounding like a robot.

How to do so? First, become very familiar with the script for Outbound Calls to Owners located in the back of my Wholesale manual.

Next, take the pressure off yourself.By that I mean, lighten your mental load with the realization that your goal is not to come away from the call with an agreement to sell from the owner. Sure, getting a deal on the first contact can happen - but on occasion.

More often however, your call will get the owner's mental wheels turning. Your call should stimulate thought in the other person. Believe it or not, many of these owners will be shocked that someone is sincerely interested in their property, especially if it’s ugly.

That all said, I want you to keep one thing in mind: When calling on owners of your property leads your main objective is to simply break the ice.

That's it, break the ice and begin to build rapport with the other person. Do so with some personality and lots of patience.

Then similar to shifting into the next gear of your car, segue into the questions on your script, located in the bonus material section in the back of my Wholesaling Properties Manual, available at: www.thewholesalewizard.com.

Remember, avoid sounding as though you're reading from a script. Once familiar with the questions on the short, yet powerful script you'll be comfortable with its objectives, which is to find out all you can about their property and the owner without sounding intrusive.

Try not to come off as if you’re probing and you'll be amazed how cooperative most will be. Oh sure, there'll be some grumpy bears you call on. Don't take it personal. You're a professional, who never gets into a tiff with a potential seller.

I've made calling owners so amazingly simple for you in my Wholesaling Properties manual, you won't have to reinvent the wheel. It’s all done for you.

You can check out this awesome system, described by many as “the best on the topic.”

Don't take my word for it. Check it out for yourself by clicking on this link or copy and paste it into your web browser: www.thewholesalewizard.com.

There's no risk to you. Take 30 days to check it out and if my system doesn't make absolute sense to you within the 176 pages of powerful yet simple to understand money making strategies, send it back for a 100% refund. No questions asked.

You have nothing to loose.
So go now to: www.thewholesalewizard.com
Ken Williams
aka The Wholesale Wizard

Much success to you.

How Many Houses Have I Bought and Sold?

Last Friday I was working with a mortgage broker going over the executive summary for a commercial land project I own.

He had included two spaces on the form for me to fill in the number of houses I'd bought over my 12 year career. The second space was for the total dollar amount of real estate value those transactions were worth

Well, if you've paid close attention to any of my marketing, I never state a number of houses I may have bought and sold in my career. First of all, I don't measure my success in that manner. Second of all, who really cares?

I'll get back to that in just a minute. First I informed the broker those were stats I just don't find important. Instead, I emailed him my "Killer Credibility Package" full of photos of the beautiful renovations I've done over the years, which by the way, I purchased all at wholesale prices.

My Credibility Package also had stunning letters of recommendations from peers, attorneys, private lenders and happy sellers. Perhaps the most powerful letter was from a business associate, who wrote "Ken Williams is only one of three people I'd ever done a business deal with on only a hand shake."He went on to say "Ken is a very intelligent investor and is one of the first I call for real estate advice."

Wow! And....this guy is no light-weight either- an established businessman with over 40 years in the Washington DC area. Along with that letter are others from real estate attorneys professing my skill and knowledge about real estate investing.

Letters like those will go much further than any hyped up claim of how many houses I've transacted over the years. By the way, no one cares how many houses I've ever done, right? Right!

Take yourself for instance. You don't care how many deals I've done in my career, do you?. Nope, you sure don't. What you care most about is whether I'm trustworthy and will my training materials work for you. You don't want to waste your money on a Con Artist. That's it.

So when you read the many testimonials from other students who rant and rave how my wholesale system is the best on the market because they made X number of dollars, that's what you and every potential student wants to know.

Here's another, more important reason why I don't keep track of the number of deals I've done because I measure success based on quality of life, not how many transactions I can do in a month. Many investors treat this business as though it were a race.

That is a dangerous approach to the business. I recall one tax year, sharing my gross profits with an investor friend who'd done 50 deals that year, a combo of rehabs and wholesale deals. While I did only 12 wholesale deals that same year, I nearly made the same amount he did, with less hassles and a better quality of life mind you.

That's why my motto is "Less is More." I choose to lay back and pick the low-hanging fruit. I'm not interested in running myself ragged (anymore) trying to do 10 deals a month. See, I know the true story behind those numbers.

Out of the 10 deals the investor makes a profit on 3, breaks even on 4, looses money on the other 3. Meantime he takes no vacations, has little family time and his quality of life isn’t good.

Me, I choose to hang out with my family, and travel when I want to. My business is set up to serve me, not me serving it. I gleaned that lesson the hard way early in my career.

So the choice is yours whether you want to leave the 9 to 5 rat race and jump into the investor rat race. Sounds like jumping out of the frying pan and into the fire!

This business is supposed to be fun, not tiresome and stressful. That's why I named my publishing company Pace Yourself Publishing to remind myself and my students to P.A.C.E Yourself. Pace is also an acronym for Positive Attitudes Change Everything!

I'll chat with you later and remember to always

Take Action!

Ken Williams

Much success to you.
Go to http://www.thewholesalewizard.com/ for more information.

Up and Coming Neighborhoods, Beware!

Beware of the seller who will try to convince you to buy their property at a premium price based on an up and coming so called improvement.

If you haven't heard it yet, you will.Some sellers make out that their property has premium value based on a local paper running an article about a revitalization plan near the seller's property. Or a new a new school has been announced to go up across the street, in the year 2011!

Let's think about this for a moment. It's a wellknown fact these days that real estate as a whole has cooled off quite considerably. Some markets in the country have gone stone cold sober over the past year and a half.

Despite all the blatant evidence of slow sales, such as, houses sitting on the market for six months or more, price reduction signs all around, fewer renovation projects, residential developments grinding to a halt, half completed, resembling a ghost town?

Can you believe there are sellers out there who still believe we're in 2004 when sales were on steroids? I've been running across my share of pipe dreamers and so have many of my students around the country which we discuss during our group talks. Matter of fact here's a prime example of what I’m taking about.

I've been dealing with a pair of sisters who are interested in selling their house which has been in their family for years. This house is a real junker.As we rehabbers say, "It needs everything!"

The house is located in a decent neighborhood in Washington DC, called "Columbia Heights" for you locals reading this.

The sister, who is the family spokesperson, said to my assistant Valerie last week "well, we know this is an "Up and Coming area, just look at all the development over on 14th street."

Well my friend, this lady couldn't have been more wrong about anything else as she was about that statement. I assure you, she is not alone as a seller. In her case I can see how she based her thinking.

Hey, new development, must be hot! Right? Not always, it depends.......

.........on what kind of development. In this case the development on 14th Street the seller was referring to are mostly commercial projects. Some large condo buildings and mixed use projects are going up as well. Here's the deal with real estate price trends.

As an investor your objective is to spot trends and market movements. Is the market emerging, stagnant or declining? A general rule of markets is this:

First come jobs, then the people, creating a demand for housing.Next comes the new residential developments to serve the new population growth. Once the population swells in the new residential areas, the commercial guys start planning their move.

Scoping out the demographics and population growth the big box stores i.e. Wal-Mart and Home Depot move in to serve the masses. Small retailers follow suit along with entertainment (movie theaters, restaurants etc). This is economics 101, supply feeds demand.

Once the influx of commercial development begins to take place usually the residential markets have peaked as is the case with the Columbia Heights neighborhood in Washington DC. The residents naively believe their property will continue to increase because of the commercial and retail activity nearby.

Now there are exceptions to every rule. One such exception is what I call the "Big Dog" factor. Yup when the Big Dog breaks ground in an area, their very presence can influence the market appreciation seemingly overnight. Does the name Trump mean anything to you? Mr. Trump can and has influenced market appreciation with just the announcement of a proposed project.

You should know the local Big Dogs in my area. Here in DC it's guys like Douglas Jemal, Steve Abdo, and PN Hoffman. These fabulous developers can go into uncharted territory and create a sizzling market. This is the exception, remember, not the rule.

So when you're out problem solving for your deals don't fall for the “okee dokee” some sellers try to feed you. You'll see it with apartment and office building managers who fax you the pro forma (future best case numbers) instead of actual dismal numbers.

You my friend, will make offers based on the current condition and/or circumstance. NOT, what's coming in the future. Not based on future increases in rents. In the case of buzzing commercial and retail projects remember, those folks have done expensive studies to locate population growth before they send in the first bulldozer.

In the case of commercial projects going up before population and residential swelling, that's pure speculation on the part of the “Big Dog” with deep pockets that can wait it out, it doesn't always impact housing sales. For instance, the MCI Center, home of the Washington Wizards comes to mind. Owner Abe Pollin started, albeit slowly, the revitalization of downtown DC neighborhoods. We're talking four or five years before any real action revved up.

Forget the new school that's coming, or new subway stop, and the harbor plans, yadda yadda yadda on and on. Make your offers on what you can verify TODAY!

In the case of two sisters and their Columbia Heights property, Valerie just printed out a new MRIS report showing their zip code's housing prices dropped 15% during the 4th Quarter of 2006. Our current research also endorses those stats.

Valerie will meet with the pair in an attempt to shed some light using the mighty black and white 3rd party report. The sisters should get it, don't cha think? Not always. In my 12 1/2 years of experience in the trenches some sellers (people period) only see what they want to see. In that case......

NEXT! Someone else is waiting for you!

Take Action,

Ken Williams

Much success to you.
Go to http://www.thewholesalewizard.com/ for more information.

The F-Word, and Why I don't Use it

I refuse to use the F-Word to describe what I do as a real estate investor.

No I’m not talking the usual profanity laced F-word, I'm talking about the other one, you know "Flipping." Matter of fact I've never used that word in my more than 12 year career. Why?

Well, the reasons are many, I will be glad to share with you what my reasons are on my next monthly telecall this Thursday, which is FREE to you for now.

The call Thursday at 8pm will last about an hour. I will spend that hour going over why Wholesaling is NOT flipping

I will also provide some real life case studies of wholesale deals and how to streamline your operation. Even if you are a one person operation.

To register for this go now to this link: http://www.thewholesalewizard.com/monthlycall/

Oh, I mentioned this call was FREE, followed by for now. What that means is I'm running a few tests for my coming Inner Circle coaching program. The IC will be a small monthly fee to give you constant access to me and the wholesale/retail community.

Eventually this IC program will have ascending levels for those folks who want more access to me and my programs.

For now the calls are FREE, so take action and lead your cursor onto this link and click away to get registered.

http://www.thewholesalewizard.com/monthlycall/

I will talk to you Thursday night. Remember, if you have a friend, forward this email to them. Get them going while the calls are FREE!

Take Action!

Ken Williams aka The Wholesale Wizard....

PS. Join me this Thursday night to hear why I don't use the F-word, and other awesome money making strategies click here to register or paste into your browser:

http://www.thewholesalewizard.com/monthlycall/

Wholesaling is a Service

I hate to say it, but it's been my observation that most real estate Wholesalers go about calculating their fee backwards.

Many decide in their minds right up front, hmmm. . . I want to make $20,000 per house. They think of themselves first, buyer and seller last. WRONG!!!!! Wholesaling is a service. Whether you like it or not, it's a fact! Fail to provide a service for your Cash Buyer or the seller, and you'll soon find your wholesaling career cut short.

The most successful Wholesalers solve the problems of both the Buyer and Seller. Making life easy for both will cause the money to flow into you bank account. Can't tell you how many would-be Wholesalers approach me with the frustration of having all their offers rejected by sellers. Worse yet, being stuck with a house under contract because buyers ain't interested. I have said it a hundred times. Find a way to give the other person what they want and you'll get what you want.

Your Wholesale fee is a result, not a cause. Here's an example. A house is worth $100k after it’s repaired. The seller is asking $40k as-is, and it's ugly. Your buyer figures her repair and carrying costs, decides she can pay you $47k to make it work for her. In that scenario you just made a $7k wholesale fee.

Let's change it slightly. Now if the seller is stuck on getting $46k and your buyer is stuck on paying $47k, your Wholesale fee just went down to $1k. You must decide to take the $1k or perhaps find another buyer who knowingly can make it work with slimmer margins. If not you may decide to move on to the next deal. Far too many wholesalers will try to make the second senario work anyway. They agree to give the seller the $46k, then attempt to squeeze a buyer into the tight margins by asking $53k to get that $7k Wholesale fee. What happens next is usually ugly. The Wholesaler finds himself stuck with a contract no one wants. Or he muscles, tricks, and deceives an inexperienced buyer to take the deal. The "wet behind the ears" buyer takes a bath on the deal (loses money). Word gets around town; beware of this Wholesaler, his deals are no good.

To better approach the situation, make sure your sellers get a fair price they can live with, and make sure your buyers make a profit from your assignment deals. As a result, your name will soon be the one everyone goes to for deal solutions! Sellers will brag about you to their family and friends. Cash Buyers will pursue you like mad because your deals save them hunting time, and puts money into their bank accounts.

Once you develop the reputation and relationship with your Cash buyers (as I insist), you'll be the one they call first when they need a property in a hurry. That buyer may be willing to buy on a slimmer margin depending on her current situation. She may need to place new private money she just attracted before losing out. She will call you, agree to buy a the deal for less profit for herself, knowing you will take care of her next go around. As the Wholesaler, your function is to solve problems for others. Make their lives easier, less stressful, and you'll have more business than you can imagine.

Finally, think of your self last when Wholesaling. Instead, determine which seller needs your help, which Cash Buyer(s) need your service, and I promise you, the money will follow you like the Pied Piper. Take Action!

Much success to you.
Go to http://www.thewholesalewizard.com/ for more information.

Planting Seeds of Wealth

A few days ago I mentioned my awesome experience in Phoenix AZ teaching my two day wholesale workshop. What I didn’t; mention was something which just came to mind.

In the audience were two young ladies, I mean one looked like a teenager the other a teeny-bopper. Both were brought by dear ole’dad. Dad’s explanation for bringing the girls was part humor, part serious, you know like seriously joking. He said he brought them to expose them to real estate so perhaps they pay their own college tuition in a few years.

No matter his true reason I thought it a great idea. Why not expose our kids to something they can use their entire lives? Planting that seed in a child’s mind early can result in unimaginable results years later.

I just read a book, a biography on J Paul Getty, America’s first billionaire. The richest man in the world during the 50’s to until his death in the 70’s. Mr. Getty regurgitated the story of how as a kid he wanted to be a writer and a diplomat. It was his father’s exposing him to the early Oklahoma oil fields during the turn of the 20th century is what planted that seed in young Getty’s mental garden.

Just a few years later at age 24 young Getty made his first MILLION as his own oilman in 1916!!!! He went on to become the Bill Gates of his time. Today Dec 15th would be J Paul Getty’s 114th birthday.

The same can be said of Donald Trump whose father developed small apartment buildings around NY and carried young Trump along to help inspect projects. We all know the rest of that story. The same can be said about many successful people, having been exposed, not forced, but exposed to an idea, a way of life which can have lasting financial effects.

Sadly enough most youngsters will never get that same real world exposure of business and finances. The public schools, although starting to realize the need, are still lacking in that area. Unfortunately, most kids are being exposed to scarcity minded, “me me me” ways of thinking about money.

A few years back when my son Marcel was in kindergarten his teacher Mrs. Meade asked me to come by and talk to the kids about what I did with houses. Man, that was one of the most rewarding experiences I’ve ever had teaching wholesaling. A room full of five year olds circled around me sitting legs pretzel styled on the floor.

They hung on every word I said, especially my slooooow, deliberately dragged out explanation of uuugg guulll-lee, sssstttiinkkky, houses. You know how kids do, eyes focused on your mouth as they mouthed your words at the same time? I had em hooked.

Going forward with using their new math skills we did some basic additions and subtractions to figure our profits. The kids loved it, hugging me after one by one saying thank you Mr. Wizard. Marcel beamed with pride; he wasted no time underscoring my description of the houses to his classmates by reminding me there was pigeon poop in one house that could make you sick.
Those kindergarteners got it! So did the teacher’s assistant who approached me later interested in being a private lender to my deals. Folks a seed was planted that day.

Marcel, I’m excited to report, is well on his way to thinking about real estate. He loves drawing houses. We watch the History channel’s Modern Marvels engineering documentaries. He understands load bearing walls, and attempts to figure which walls are holding up a roof in nearly every building we enter.

A good friend of mine Kenneth Edmonds has dedicated his real estate teachings to youth. Ken is out in LA and doing marvelous things with the youngsters. This past November he reported the progress of some of his young moguls. One report sticks out in my mind. A 16 year old young lady has amassed $2million worth of real estate (correct me if I’m wrong Ken) which is giving her positive cash flow. At 16!!!! Since she hasn’t reached the age of maturity her parent’s have to sign her docs. Hey! careful there now dad.

Another good friend, colleague and my favorite real estate guru Vena Jones Cox is also dedicated to exposing youth to this mighty business of real estate investing. Vena herself a 2nd generation investor was exposed early in life by her dad. At least once a year, she invites a bunch of gurus to spend a few hours with the youth aged 14 – 21years, during a multi day event, teaching their strategies.

I had the distinct pleasure of joining Vena and Ken, two years ago at such an event. It was one of my most worthwhile teaching experiences. Watching the slumped shoulders straighten up, sleepy rebellious eyes brighten up at the possibilities they just heard. What could be more rewarding?

The young people perk up when we start talking numbers and using the internet to search for owners. Driving for dollars also appeals to the newly licensed 16 year old. One kid said he could even ride his bike to find houses for his mom.

Sorry for my rant, but I get excited. I have the utmost faith in our youth. There’s much about them I don’t understand, but I assure you, they think differently than I as a PC generation. But they are more motivated than we realize.

The two young ladies in Phoenix, who looked resentful at the beginning of the day, lips poked out, heads in hand, straightened up when I got to the numbers and real world case studies. They acknowledged at the end they really enjoyed themselves.

Lets all plant those seeds of wealth. The mental garden doesn’t care what gets planted, be it the weeds of scarcity and limitations, or the seeds of positive possibilities. One thing is for sure, a weed and a rose can not occupy the same spot in a garden.

Much Success,

Go to www.thewholesalewizard.com for more information.

Why Do Sellers Discount Properties?

This past weekend I had the wonderful experience of teaching my favorite real estate topic “wholesaling” (www.TheWholesaleWizard.com) during a one day workshop in beautiful Phoenix Arizona. The majority of those in attendance hadn’t even done their first deal yet. Newbies!

I consider it a privilege to have the opportunity to transform minds and lives in mass. A privilege, mind you, I don’t take lightly. Oft times when I mount a platform to teach a workshop of beginners the majority have never heard of me. Many arrived with limited thoughts and ideas about the potential of real estate investing despite their paying to get in the door.

Call it lack of ideas from the lay person, cynicism from the pragmatic or just old fashion conventional wisdom casting a dark cloud of doubt over some. Nonetheless, it is my objective to not only convince, but prove without a shadow of a doubt that what I say is not only possible, but probable when the steps I provide are carried out.

My very survival as a trainer depends on my ability to do so. Personally, I enjoy the challenge, as I keep an eye on the most ardent cynic in the audience usually someone dragged there as guest against their better judgment. The arms folded, body tensed, nonchalant stares beaming my way, turns me on man!

After sharing many case studies of mine and my students success stories which are emphasized with HUGE figured, unbelievable to the layperson, checks as proof now come the gasps and looks of disbelief.

Ok, wait a minute says my skeptic. Hold on there Mr. Wholesale Wizard. “Why on earth would an owner of a property sell to you at such a huge discount if they know their property is worth much more?”

Casually and in a non defensive manner and tone, I simply ask everyone present to think back in their own lives. Have you ever owned something which overtime lost its value to you? Better yet, have you ever held a possession in your life where it became more painful to keep it than to let it go? Once when I asked this same question to a workshop group a lady shrieked “Yeah, my ex husband!”

Ok, in that case I ran with it. Sure your ex husband was the light of your eye at one point, until one day he became a burden in your life. Rather than keep the handsome dream hunk you were motivated to let him go to the next wholesale lover. “That’s it” she confirmed, with a few more inaudible mumblings.

It’s the same with houses. At some point in some people’s lives the American dream becomes a sleepless nightmare. Stress associated with the continued ownership can become unbearable until a time the person becomes extremely motivated to sell or just deed their property to the first savvy investor able to solve their problem.

I then follow up my statement with further proof with letters from sellers I and my students have helped out of a jam. Believe me, in many cases the sellers were happier to see us their savior at their door than we to see them.

This pain or frustration of ownership is NOT limited to the real estate world. Pawn shops have and still do thrive off this very concept. Today there are websites created for this very purpose to release steam from under the lid of a frustrated owner of a love lost possession.

I told my Phoenix audience to check out Craigslist.com to see all the ads from people selling cheap, while others are giving stuff away (no Craig is not giving me a cut). I have a friend who is self professed CS junkie, constantly selling, giving, buying and grabbing bargains weekly. Just this past weekend she scooped up a practically new box spring/mattress set from an owner whose back didn’t agree with the hard surface of the set. Both were happy about the outcome.
I think I changed the minds of most in that Phoenix audience. Those who cared to open their minds that is.

Let this be a reminder to you as you seek out motivated sellers, everyday there is another property owner looking, hoping, some praying that you find them to solve a problem they cant for themselves. As long as you treat em right, the money will flow into your life as a side affect.

Take action now to get started on your path as a real estate wholesaler.

Much Success to You

It’s the numbers, period!

This past week I decided to pull my offer on a huge Victorian single family house, with tons of potential here in Washington DC. It is an REO “Real Estate Owned” by a bank. For one, this listing comes as a sure sign that times have changed in the DC market. Over the past four or five years any foreclosure in DC was snapped up by frenzied speculators either before or during auction. Other times the banks themselves were the high bidders knowing all they had to do was give the property the once over, put back on the market over priced, to be scooped up by an overzealous buyer. Those days appear to be long gone.

Back to my deal. Agents, (can you believe it?) two real estate agents were fighting hard to convince the bank’s asset managers to accept my offer. That’s right, the listing agent knew this property which needed a ton of work would only appeal to a person like me who had the means to both purchase and rehab the property. My buyer’s agent whom I met recently was pushing hard to make the deal work as well. Much to her chagrin, I had my number and held tight to it.

I knew what I was comfortable with for a worse case scenario some five or six months later when the property would be ready for resale, I wasn’t willing to budge. I did at one point offer a little more than my initial price with a request for closing concessions, which really was a wash.

The bank’s asset manager had their number which wasn’t close to mine. The agents tried talking me into coming up a little higher to make it work. I sensed they both meant well, but surely their advice was driven by some self focused motivation of getting the sale. Nope! I wouldn’t budge. Either the bank came down to my price, or I walk.

My buyer’s agent, who is fairly knew, and never worked with an investor/developer didn’t quite get it. After verifying my private lender letter approving more funds than the bank’s asking price, I’m sure she thought that I could surely pay it.

Having the available funds wasn’t the point. There is no emotion for me when I make an offer. I learned this the hard way. It is the patient investor who waits for the low hanging fruit and the BIG bucks.

Finally, I pulled my offer, in the midst of the listing agent introducing other investors supposedly willing to pay more than my offer. God bless em!

As I drive around my downtown office neighborhood, I count many properties owned by investors who got caught up in the frenzied times. They over paid for properties which are now sitting like hulking brick ghosts. One nearby row house with gorgeous potential even has the dumpster and project fencing on the lot. The tell grass surrounding both dumpster and fence serve as a constant reminder of a real estate era gone by.

No surprise to me as I saw it coming 18 months ago as many of them were over paying for these now thorns in everyone’s side. I’d often scratch my head and wonder, “how in the heck does this guy think he’ll make money on that one he’s just over paid?”

This should come as no surprise to anyone, but real estate investing is all about the numbers. Period! Save your emotions for when buying your family’s dream house.

I can’t tell you how many times I’ve entertained investors during a Q&A session when someone utters out in frustration that they can’t find a buyer for their deal. I politely listen as long as possible as the person goes through a song and dance for why they believe their deal is not selling. All the while my inner voice is screaming “it’s the numbers.”

Finally, I share with the grieving investor that their problem is the numbers are wrong. That statement is usually met with immediate protest with emphasis on how nice the property is, the neighborhood, schools, huge back yard with picket fence, and so on and so on. All that stuff is great to know, however, they’re all emotional details. Important? Yes, but less so than the numbers.

Getting properties sold, assigned or rented boils down to one thing, and that is the numbers. Any property, anywhere, in any neighborhood will sell, in any economic cycle, if at the right price.

I have no love lost with the potentially elegant Victorian Queen. There’s nothing worse than being stuck holding a dead property you can’t move. I’ve had many sleepless nights in my days, counting not sheep, but carrying costs as I stared up at my ceiling.

My advice to you is to decide now, to tuck away all your emotions when it comes to making offers, place them on a rear shelf somewhere in your heart. Save those emotions for when you are deciding to build your dream house. Invest with your head not your heart.

Much Success