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- Ads & Bandit sign
- Let people know buy discount first
- Phone number: Pretty vs. Vanity
- Buying # and Selling #
- Buying and selling LetterHead separate
- Car Signs, Logos on Shirts, Rolling Billboards
- Sponsor Jr. Sports Team
- Small Billboards
- Professional billboards can cost up to 30K per month
- Smaller billboard 11×5, bigger 48×14, HOA rules
- Put in people’s vacant lot
- Newspaper Classifieds
- Newspaper ineffective when selling houses
- Local newspaper for tragedies to buy discounted houses
- Flooded houses, fire damage, tornado, mold (usually not newsworthy unless construction company has a bad reputation), murder house
- Abandoned pets, Deaths
- Major Business/Military Base Relocation/Closure (chaos is good)
- CriagsList
- Multiple section
- Activity Spawns Opportunity
- Search Online to get houses
- Business Card
- “Fake $20 bill half the size of actual one” in back of business card
- Website
- Keep it simple – info gathering form, open 24/7
- Realtor
- Batch low-ball, want a young-aggressive agent (who aren’t having a lot of business)
- DOM > 90 or just minutes ago
- Dual-agent
- Use VA to systemize this, can be as cheap as $1/hr!!
- Earnest Money – make a copy of money check made out to title company, use copy on every offer, when deal accepted, make a real check
- Many MLS tied to county appraisal district record, may increase tax basis via listing
- Listing Agent Monetization (three way call idea)
- Expired Listing
- Bandit Sign
- Mailman
- D4D
- Craigslist recruiting
- Pay per address
- Returned Letters
- Disconnected Utilities
- Vacant / piled up letter
- “Walmart area” – not high end, not warzone
- Other signs of vacancy
- Grass overgrown / snow not shoveled
- Put Signs in your own property, remove the “for cash”
- Bumper Sticker
- Doorknob Hanger
- Property Distress
- Nuisance & Abatement / Code Enforcement
- FOIA
- Estate Attorney
- If there’s mortgage on property, then it’s bleeding by mortgage
- Friend need estate attorney -> then talk to bunch to bootstrap attorney relationship
- Networking with big quantity
- Grassroot Ads
- Email & Text
- Direct Mail
- Socializing for leads & knowledge
- REIA
- REIA member might get discount at HomeDepot/Lowe
- Local board of realtors
- Chamber of Commerce networking
- VC and angle investor there
- Rotary
- Meet up with like-minded people – meetup.com
- Appraisers
- Property Distress
- Not every lead, but appraisal with no buyer
- Appraisal hacking – tendency of appraisal very close to PP
- House inspectors
- When inspection too bad, home owner very hard to sell the house
- Buy via Private-Money, sell via Owner-financing
- Buy @14K, 8% IO for 5-year at $94 per month
- Sell as-is
- $31K with 1K down
- $30K balance @12% for 12 years = $394 P+I
- New owner put 20K into value, and increasing valuation. Now can sell note for remaining value.
- Make 17K out of a house worth 14K (PP)
- Surveyor – property distress
- Foundation repair man –
- House with foundation repair listed but cannot sale, put together short-sale package (because otherwise seller foreclosure)
- Construction knowledge
- Foundation issues mostly due to water accumulating under the house
- French Drain
- Water meter monitoring if pipes leak
- Prevention – house on concrete slab, any sign of settling, always order pressure test on sewage system
- Sewage pipe leaks can be caused by tree’s roots
- Get bids from “Yellow Page” repair company to negotiate purchase price, use own team for reduce price , use one with great reputation
- Wealth come from Chaos!
- Burned house
- Three ways to find data
- Sometimes fire department online
- Sometimes fire department has twitter
- Sometimes newspaper has sections
- Blotters / Fire Calls / Lights & Sirens
- Source of distress
- Rehab has lot of risk and need domain knowledge
- Mold
- Property Preservation Company
- They hired near foreclosure / pre-foreclosure
- Their job
- Put locks
- They know the owners, might sell at discount
- Pre-foreclosure
- Marked by Notice of Default & Lis-Pendens – public info
- Older mortgage likely better deal (small loan big equity)
- Short-sale – need the owner to collect docs to justify the short-sale
- BPO involved, hardship letter
- there’s short-sale course from NAR
- Subject-to
- need attorney good at this, buyer takes the encumberence
- Foreclosure auctions
- Pay cash
- Property Risk – No preview of interiors
- Document risk – specifically IRS tax and child support lien
- Title insurance could be an indicator previously the title is clean, but not a guarantee
- Lender want to buy back (trustee) to get more than what’s owed – interesting strategy
- Sort of guarantee lien owner has the house by “gaming the auction”?
- Redemption period
- Good to invest in houses in the foreclosure process, just not in the auction!
- Strike-off list
- Distressed owners file some legal paperwork to reschedule the auction
- Technically called “Temporary Restraining Order” (TRO)
- REO
- Tax Sales & Tax Liens
- Interest rate varies, around 12~18%
- Few place 18% every six months! Which is 36% yearly.
- Different ways to buy lien
- Time period from tax delinquent to foreclosre : 6 months to 3 years
- Location dependent:
- Some states; Buyer of lien pay tax for future until they can foreclose
- Others: buyer’s got first right of refusal
- Others: tax lien is fractional share of property
- IRS lien is senior to all other liens!
- Other auctions
- Private auction companies
- How it works:
- No title insurance, “Special warranty deed”, meaning seller will defend against title issues during occupation of seller
- Seller can have “reserve price”
- Buyer’s premium for auction house – like 10%
- US treasury auction
- Other people’s vehicles advertising
- Free yellow page ad
- Email & Phone from Classified Ads
- Mentoring
- Called ID
- Send VM
- Natural disaster areas
- Lottery ticket for birddogs
- Raffle ticket for top producers
- Plus reminders of house bought recently, each lead -> raffle ticket next month
- Handwrytten fonts
- Put business cards in real-estate books in the bookstore lol
- Dentist’s magazine
