Profit From Real Estate in 2022-23 - the "Crisis Effect"

 

Throughout human history, times of trial and strife have always been the most fertile ground upon which to grow wealth because there are two sides to everything. The flip side of "crisis" is "opportunity". In fact, the Chinese only have one word for both, just as "penny" describes a coin with two different sides. Ask anyone who owns a pawn shop - they thrive off the small personal crises of people by taking advantage of their need for immediate cash, then reselling those items at a huge profit, often  at 500%.


What is true for any small, personal crisis is even more true for life's greater upheavals. The current pandemic , civil unrest and high inflation has all but destroyed the American economy. Many will lose much, if not all of what they have spent their lives trying to build. And while that is exceedingly sad, it also presents much opportunity for those who are prepared to take advantage of it. SOMEONE will - it may as well be you! And it won't take a big bank account or great credit, either.

 

[Some may claim that people who take advantage of the misfortune of others is a "shark". But that is not necessarily the case. SOMEONE will take the opportunity if not you. While there are greedy people in every profession, there are also those who make every effort to be fair with everyone. I have personally trained thousands of new investors, and the first thing I attempt to drill into them is to always strive for a win-win situation. The investor who does so may earn less on each individual transaction, but the reputation he earns will result in more transactions and a very long career.]

 

And as of now, because of the high inflation and the increase in mortgage rates, real estate is now becoming available at much reduced cost as sellers cannot find many buyers - it's a buyers market! While the reason behind this market are not good, it does not change the fact that a LOT of money is to be made in real estate in the next 24-36 months. A savvy investor who know how to create the best deals will make a fortune - literally. As people flee the cities that suffer from draconian shutdowns, riots, rampant crime and freedom-robbing mandates, there is no shortage of willing buyers - only a shortage of buyers who are ready to take the plunge in this economy. Investors who know how to work this market will be able to create opportunities that buyers can afford and will jump at.


To begin to prepare yourself to be in the perfect position to benefit from this crisis, first realize that most great wealth has always been created from real estate - that is where the money is, and always has been. Much of America's wealth is tied up in real estate, and there will be a lot of it that will be changing hands due to the desperation of those who were ill-prepared to survive such a crisis as we now find ourselves in. So it stands to reason that those who know how to profit from real estate will be the ones who become very, very wealthy. And you do not need a pocket full of cash, or even good credit to get started. In fact, you do not need either cash or good credit.


And before you say, "But I'm broke, too. I certainly am not in any position to take advantage of that," I will tell you with certainty that you are - or, at least can be. In one day you can learn the "no cash, no credit" methods used by investors since the time of Moses, yet rarely used in more recent times because the rich do not need those methods, and the poor were never taught. There are eight such methods.


As the title of this piece suggests, this is the perfect time to prepare to make a lot of money from the current crisis by using this time to learn how. While it does not require cash or even credit, it does require know-how.


"The Simple Man's Guide to Real Estate" investing program was developed expressly to teach people without a access to a lot of cash or credit to successfully invest in real estate. The program has been used by over 316,000 people in 19 countries over the past 30+ years. Developed by the investor who was first to teach "flipping", long before any infomercial guru hit the late-night TV airwaves like Carleton Sheets, Armando Montelongo and Than Merrill, the author of this program is the man who in 1985 developed the method that HUD used as the basis for the "reverse mortgage" in 1987. This program includes everything needed to invest in real estate regardless of your current situation, including free, unlimited mentoring by investors who volunteer to help you succeed.


If you learn nothing else, understand this - wealth does not come from having money. It comes from having the knowledge that provides the money. If you doubt that, research the fate of ordinary folks who hit the lottery. In almost every case they were broke - usually even worse off - within 5 years. Why? Because although they had money, they did not have the knowledge necessary to replenish what they were spending or to make it grow.


Knowledge! Knowing HOW to create wealth, often out of thin air. That is what every wealthy person has that you likely do not.


There has never been a better time to gain that know-how. And such a time may not come again in your lifetime. The future belongs to those who prepare for it. Will that be you? Or will you leave it to others...


The very least you can do for yourself and your loved ones is to check it out - it costs nothing to look it over. And should you decide you want in on the bright future ahead, the entire program, which includes free mentoring, is available for under $150 complete, as it is offered on a not-for-profit basis and the investors who provide the free mentoring are all volunteers.


Today, this moment in time, you have a choice. There has never been a better time to choose to learn something that can change your life. What will YOU do with this moment?

 

A Window of HUGE Opportunity In Real Estate

 

Due to the 'crisis' now upon us as described below, unlike any other time in recent history, people who know a few simple strategies can make huge fortunes in real estate even if you have no cash or credit available and know nothing about real estate. Real estate investing is one of the best ways of putting money to work for maximum profits with little or no risk and is easy to learn (see "The Simple Man's Guide to Real Estate"). There is a reason why it always features prominently in the portfolios of billionaires and other sophisticated investors - it offers relative stability and attractive returns.

That said, the current economic situation is unlike any other years in recent history, unique in the circumstances surrounding real estate. The pandemic has changed much in both traditional investments and even business, and real estate is no exception. On top of that, inflation is running rampant, and the Fed raising interest rates. So, exactly how has the real estate landscape changed, and what is the best strategy for profits? Bear in mind - high inflation coupled with high interest rate creates a BUYERS market - sellers have a hard time selling under those conditions. A savvy investor can make some great deals in that climate. How to turn this to your advantage depends on whether you are buying a home for your family, rental properties, rehabs or real estate to flip for quick profits. Here are two situations that the COVID-19 crisis has created, followed by one of  the most effective strategies for taking advantage (there are 21 other methods, depending on your goal):

MASS MIGRATION:

If you get your news from outlets other than mainstream media like MSNBC, HuffPo, CNN and Washington Post, you are probably keenly aware of the civil unrest - riots, looting, burning and yes, even murders in major cities as crime is increasing exponentially, particularly in cities that are soft on crime. Couple that with the homeless population and illegal immigrants creating unsanitary, crime-ridden streets  in many areas and the result is mass migration out of those troubled areas. And that has its own result - demand for real estate in suburban and rural areas is skyrocketing - and with it, prices, while prices in those cities cave. This creates mega-opportunity for both investors and those in suburban areas looking to cash in and move up to something better - even newbies and people without available cash or credit, as I will point out in a moment.

Work from Home is Here to Stay

The ability of many workers to telecommute at least a few days a week has been happening for some time.  The COVID-19 pandemic accelerated the trend and facilitated a more robust infrastructure to support remote workers.  Zoom meetings are now common and more companies are comfortable with the technology, as an example.

While about 24% of workers telecommuted in 2019 according to the Bureau of Labor Statistics, that number is clearly a lot higher today and will likely remain well above that number in years to come even once the need to social distance is in the rear-view mirror. Downtown office cores will be less of a draw, as will the need to live close to work for a short commute.

The Home Office as a Must-Have Feature

Work from home is not great when the kitchen table is doubling as an office and perhaps a schoolroom too. Telecommuters are looking for more room so they can have a dedicated workspace and some privacy.  Whether this means an extra bedroom or just well-designed nook spaces depends on age and family makeup.  For investors renting or selling properties, a focus on creating private workspaces can pay dividends and attract quality tenants and buyers.

SUMMARY

So then, how to take advantage of these unique circumstances? To begin, a person needs to learn the various methods, and choose one or more that serves their goals and their situation. For example, a person with poor credit and little cash would not be able to do rehabs without backers. Instead, they would concentrate their efforts on the (8) methods that do not require cash or credit. And the best (and least expensive) training program is "The Simple Man's Guide to Real Estate". It is the only program that teaches all 24 methods, includes free, unlimited lifetime mentoring and the agreement software necessary, all for under $100 (they operate as a not-for-profit and their mentors are volunteer investors). Other programs like Armando Montelongo and Than Merrill's FortuneBuilders can run up t $35,000 or more

Of course, these unique circumstances won't last forever - the early bird gets the profits, so it is best to get started as soon as you can. On the bright side, since "The Simple Man's Guide to Real Estate" details all 24 methods, even after the economy changes you will have methods available that will make you a lot of money "working" less than 10 hours a week and provide you and yours with a richer, fuller life - and the time to enjoy it!

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The True Role of a Real Estate Investor in the Economy

 

There seems to be a misconception among certain segments of our society as to the role real estate investors play in an economy. They believe that people who invest in real estate are nothing more than sharks preying on the less fortunate. And while that may happen in corporate, hedge fund and other investors like Armando Montelongo and Than Merrill who typically are not personally involved in the investment, nothing could be further from the truth as far as the individual investor who is personally involved.

My name is Bill Vaughn. I have been personally involved in real estate investing since 1969, and I wrote the free ebook, "Success - by Design" which has been downloaded over 4.2 million times, and in 1989 developed "The Simple Man's Guide to Real Estate" investing program through which  I have personally taught thousands of people throughout North America how to grow wealth by doing what I do. I know real estate investing.

Individual investors avoid preying upon anyone. On the contrary, they tend to benefit everyone involved in a transaction - not only themselves, but also the seller, the financing institution, the Realtor, appraiser and even the neighborhood in general. Let's look at an example:

Joe homeowner has run into difficult times and is unemployed. His home is valued at $180,000 and he has $40,000 equity, leaving a $140,000 mortgage. First he defaults on his $10,000 credit card debt so his credit is already trashed. Nowhere to turn, he begins missing his mortgage payments. The bank has issued the foreclosure notice - Joe's family is losing their home. Upon foreclosure, they will have no home, lose their equity, have no money to rent a place and no credit. The future for Joe's family is bleak.

A wise investor inserts himself and offers Joe a different future. He offers to pay off the $140,000 mortgage AND the $10,000 credit card debt and will give him an additional $5,000 to get a fresh start. In return, the investor gets the remaining $20,000 equity. Joe now has some jingle to get an apartment for his family with some cash left over for expenses, and his credit is beginning to mend since his debt has been paid in full. This is a far better outcome than Joe was looking at before the investor came along.

The investor takes out his own 80% LTV mortgage ($144,000) on the place to pay off the old mortgage. He pays the $10,000 to pay off Joe's credit card debt and the $5,000 "walking" money for Joe out of pocket (in lieu of the down payment). This leaves the investor with a $180,000 property at a total out-of-pocket cost of $15,000. He markets the property at its $180,000 value. Upon closing, he pays off his $144,000 mortgage, gets his $15,000 back from paying off Joe's credit card debt and walking cash, leaving him  a quick profit of $21,000 less expenses.

Everyone wins. Not only was the investor not a predator, he was actually a saviour. For those who say "But poor Joe still lost his home" I would remind them that Joe was going to lose his home in any case. The investor did not cause the loss of his home, but did make it much, much easier for Joe. In fact, the investor could simply allow Joe's family to stay in the home with a lease with option to buy, giving Joe time to get back on his feet and buy his home back. The investor would profit more from the appreciation when Joe finally buys it back.

This is only one of 24 different types of transactions - 8 of which do not require cash or credit -  featured in "The Simple Man's Guide to Real Estate."

The point is: an investor, regardless of the type of transaction, would typically create a win-win deal because that is the only way to insure a lasting career. If he preys on people, it won't be long before his reputation nudges him out of deals. If you help everyone to win, they will help you to win because they want your good deals to keep benefiting them.

I know. I have survived 53 years in this business!

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Wholesaling Real Estate Options - Big Profits, Risk-Free

 

 

WHOLESALING - pushed by many of the late night infomercial "gurus" as a simple method for making fast cash in real estate. Technically called assigning, wholesaling is relatively simple, and it certainly can produce quick profits with little risk. Bear in mind, however, the "gurus" are only telling you the good points about a strategy and fail to point out the cons. After all, their job is to get your money, and telling potential customers about the down side would be counter productive.

But what if there were another way to wholesale, without the cost or the risk? A much simpler way, developed by Bill Vaughn, author of "The Simple Man's Guide to Real Estate". A successful investor who started investing in 1969, Bill has developed several of the methods now being promoted by "the gurus", and soon they will likely be promoting this one, too, once they learn of it. But for now you will not find this powerful, risk-free method taught by Than Merrill (FortuneBuilders), Armando Montelongo, Ron Legrand or any other "guru". (It is a shame that strategies cannot be patented.)

 
In this post I will fill you in on the "down side" of typical wholesaling, and will also show you an even simpler method of accomplishing the same thing without the problems and risks normally associated with wholesaling. In fact, the method I am about to show you is simpler and 100% risk free. So simple, in fact, that an 8 year old could do it. But first, here are the issues surrounding the method taught by the 2:00am  "gurus".

First and foremost among the issues of "wholesaling" as taught by the gurus: to lure you into paying way too much for their course they often promise to make their "pool" of investors available for you to sell to, literally overnight. But here is the problem - you cannot legally assign a real estate contract to any investor who is in a "pool" of investors lined up in advance and already waiting to buy them UNLESS you have a real estate license, because every state has laws that require a license to act as a "middleman" in a real estate transaction. Only real estate brokers and agents may do so. This is the reason why those gurus include some qualifier in their disclaimer about buying your notes such as "upon approval of the contract". I doubt they approve very many. ("The Simple Man's Guide to Real Estate" is the only program that teaches how to wholesale without acting as an agent for other investors)

The second major issue for many novices: Not many sellers are going to agree to sell to you without 1) checking your credit (pre-approval), and 2), getting a substantial earnest money deposit. This is a roadblock for many would-be investors. (We remove that roadblock with our new method, below.)

Assuming, however, you are able to overcome those things, once you have a contract you can end up locked in if you are not really careful - if you cannot sell the contract to an end buyer in the time available, you could get stuck having to buy, and that is a serious risk. The contract will, by law have a closing date, usually no more than 45 days out. If you do not find someone to sell the contract to in that short time, it's over. You lose. More important -   if you do find a buyyer in time the person you sell to will also have to close by that date, and unless he is paying all cash, he will require at least 30 days to close (banks drag their feet), leaving you with perhaps 2 weeks to find a buyer.

The simple strategy I will divulge here, developed by me, my group of investors and a real estate attorney eliminates those issues altogether. It does not require ever going to a bank for pre-approval and does not require a substantial deposit - all that is legally required is $1.00. And as for having time to find a buyer, this strategy provides plenty of time. And finally, you do not need a ready pool of buyers.

Simply put, everything is the same as wholesaling a purchase contract except that the investor would be wholesaling an option agreement instead of a purchase agreement. You see, with an option there is a right to buy during a specified time frame, but in contrast to a purchase agreement there is no obligation to do so. Because you are not actually buying at this time, there need not be any credit check UNTIL the option is exercised, at which time it would be your end buyer getting a credit check done, not you. And because you are not yet buying, there is no need to put up a substantial earnest money deposit - in most instances a small payment for the option is all that is necessary -  rarely more than $100, sometimes as little as $1.00 to bind the deal, which you get back from your end buyer. The option agreement could stipulate a more substantial earnest money payment to be made upon exercising the option - a payment your end buyer would make, not you.

What if the seller objects because he does not want to tie up his property if another buyer should come along? Simply offer to put a "kick out" clause in the agreement - if another buyer comes along, seller would give you, say, 30-45 days to exercise the option to buy, and if you cannot, he can cancel the option and sell to his other buyer. He has nothing to lose. So, in addition to the time you had during the option period to find a buyer, you can STILL get the typical 45 days allowed in the original method of wholesaling.

SUMMARY: You offer an "option to buy" to the seller. He has nothing to lose if there is a kick-out clause. The option period can be for as long as you want, as long as seller agrees (and why wouldn't he?). You then sell (assign) your option to a new buyer, and you take your wholesaling fee (usually $2,000-$20,000 depending on the deal) to the bank.

Using the option method simplifies wholesaling and eliminates all risk. An investor could not ask for more - no cash outlay, no credit check, no income qualification, no risk.

It is important to note, however, that any form of wholesaling real estate does require a complete understanding of the process, in detail, and being aware of any caveats and how to avoid them. And that's where "The Simple Man's Guide to Real Estate" becomes your most valuable resource, not only because it provides all that, but because it also comes with contract software and free mentoring if you need help - all  for under $100.

If you have ever considered becoming a real estate investor, you owe it to yourself to check it out. It costs nothing to look, but can cost you a fortune if you do not.

Brought to you ny IntelliBiz

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YES! You CAN Buy Real Estate Without Cash or Credit!

 

If there is one thing that keeps people from growing wealth by investing in real estate it is the belief that "it takes money to make money". And there is no shortage of naysayers telling them it is not possible to buy real estate without a cash down payment and good credit.

BUNK! I even had a high-price New York Real Estate attorney tell me it's not possible - until I SHOWED him! We do it all the time. In fact, there are at least eight methods (there are 24 methods in all) that do not require either cash or credit, and I will prove it here and now by showing you one of those methods. 

Understand - the "no cash/no credit" methods are not the traditional methods everyone knows about which is why so few people - even a lot of investors (and high-priced NY Real Estate Attorneys) - don't know about them. The idea is to learn these lesser known strategies to build up a bankroll so you can also use the other 16 methods that DO require cash. The result - your "toolbox" with have a lot more tools than most investors so you can get the edge on even professionals.

So here is a freebie for you - you will not learn these strategies from Armando Montelongo, Than Merrill (FortuneBuilders) or Ron LeGrand:

If you are short on cash and credit, this method is a great way to break into real estate investing - or even  to buy your first home. In addition, this method is also great for those who do have cash to invest and want to put it into a safe, profitable investment vehicle. No matter which side of a transaction you are on, this method is a great way to reap more profits.

This method, approved by the I.R.S. is known as Equity Participation, aka Equity Sharing. While it is often used in non-real estate transactions, it works equally well for real estate. What I am about to share here are the basics, so you can fully understand how it works. The finer details can be found in "The Simple Man's Guide to Real Estate" investing program along with 23 other methods, some well-known, some not.

Equity Participation can be used to buy your own home, a rental unit, or a property you want to flip to another homeowner. It can also be used in a way that allows you to be on either side of the transaction - buyer or seller, which shows how versatile this method is.

To buy the property with no money down and less than best credit, you would locate a property (using methods taught in "The Simple Man's Guide to Real Estate") where the seller does not require all cash at closing and wants to "invest" some of his equity in a profitable investment, and one he knows well - his own home. The seller would leave enough of his equity on the table at closing, to be used as the down payment required by the bank from which you are obtaining a mortgage for the balance. That takes care of the down payment. If your credit is too weak to finance a mortgage, the seller could also use his credit to co-sign for you, since you will be co-owners of the property.

Here is how it works:

Let's say the home is valued at $150,000 (just as an example). The bank requires 10%  down ($15,000) and will issue a mortgage of $135,000. The seller owes $85,000 on the house, so he has $65,000 in equity.

At closing the bank puts up the $135,000 in a mortgage instrument. From that, the closing agent uses $85,000 to close out the seller's existing mortgage, leaving the seller's equity - $65,000. The seller puts up $15,000 of HIS equity to use as YOUR down payment, and both of you would be "partners" in owning the house. Your Equity Share agreement with the seller would lay out all the specifics of the partnership.

TO RECAP:  the seller, looking for a good investment leaves $15,000 of his equity on the table as your down payment, and becomes a partner in the property. And if your credit is too weak to qualify for the mortgage, your partner's credit can be used to supplement yours. Hence, no cash or credit necessary.

Typically, the agreement would be for 5 or 7 years. You and the seller-partner would share in the appreciation of the property in that time, and in any profits if used as a rental. At the end of the term, you would refinance on your own and pay the seller the amount of his investment plus half of any appreciation. If the property has appreciated 20% over the 5-7 years ($30,000), he would collect his initial cash outlay ($15,000) plus $15,000 of the appreciation, all taken from the cash at the refinancing. If the refinance does not provide enough cash, you can simply sell the property at its appreciated value ($180,000), pay your partner his $30,000, pay off your remaining mortgage  (now under $135,000) and you pocket the remaining $15,000+ profit. You had the property 5-7 years to live in or rent out, and made $15,000 to boot - PLUS HALF THE NET RENTS if you rented it out for that period.

Now let's assume you have money to invest, and want a safe, secure investment. Instead of a seller putting up equity, you, as an investor would do that on behalf of a cash-poor buyer. You are partnering with the buyer. At the end of the term you could easily have doubled your money without the risk that investing in the stock market could incur.

This method, used either way, is powerful, and much safer than most other investments. And there are seven more "no cash" methods - most are even simpler than this one.

For more detail, and to have access to a professional investor as a mentor, order your copy of "The Simple Man's Guide to Real Estate". In addition to all 24 methods of investing it includes 24 real estate related bonus books, software that creates your agreements/contracts easily and a 24/7 mentor - all for Under $100 complete.

How can we do that? Simply put, we operate as a not-for-profit and the professional investors we engage as mentors are all unpaid volunteers. We are faith-based and this is how we give something back to the community that has been good to us.

At least check it out - it costs nothing to look us over.

So You Want To Become A Real Estate Investor...

 

It's a fact - 90% of all millionaires made their fortunes in real estate. Aside from winning the lottery, it is the most likely route to wealth for those without the advantages of an expensive college education and those without experience or other assets. Even cash and credit are not really necessary, though such things do make it easier.

Real estate investing is not rocket science - it is an art that anyone can develop. There are only four requirements:

1. knowing the methods and strategies, and how to work the
2. software that automatically crafts flawless purchase & sales agreements that insure your success 
3. having an experienced mentor to help you
4. determination and the willingness to put in a few hours a week

There are three methods capable of helping you to become a real estate investor:

1. Self-taught, fly by the seat of your pants, learn from costly mistakes. You could get lucky.
2. Sign up with some "guru" like Than Merrill FortuneBuilders or Armando Montelongo who will teach you 2 or 3 methods, at a cost  $35,000+  and whose primary concern is obviously their own wealth
3. Invest under $100 in a program that teaches, in detail, all 24 methods of real estate investing (8 of which do not require either cash or credit), includes patented software that automatically creates all the necessary agreements and includes unlimited mentoring with a professional investor to help yiou at every step - everything required for success at a cost anyone can afford. To learn more about this program that has been a best seller for over 30 years, visit "The Simple Man's Guide to Real Estate" here.

There is much to be said about learning how to invest successfully in real estate. And there is no better time to learn than right now. Not a year from now; not a month from now. NOW! Because NOW is really the only time we have. 

 

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Real Estate Investing 2.0 - Getting Free Merchandise

In any real estate transaction, profits can be made from items other than the building and the land. As a buyer, you are in a position to negotiate for "extras". Your purchase agreement should include these extras. If the seller accepts, you own these items. If not, you can "trade" back these extras in exchange for better terms or a lower price. We refer to these extras as "the cookies at the party".

For example, when I offer to buy a property with a large yard and the owner has a lawnmower (perhaps even a riding model) I write into the agreement that the mower is included in the purchase. I tell the seller that it will be needed to take care of the yard. I will also try to get furnishings, other tools and equipment, or anything that may be collecting dust in the attic, garage or barn. I have seen times when I was able to get some valuable antiques that the owner thought was just junk. In another instance, an abandoned 1964 Mustang sitting out in the field was included. Have you priced one of these lately? The owner just didn't know its value. Or how about this 1980 Porsche 924 Turbo that was siting in a barn and I managed to get for just $1.00 extra (runs great, sold it for $11,500)

Always ask for such things. You may not get them, but perhaps you will. Even if you don't, do not give them up without getting something else in return, such as the seller paying the closing costs, or doing certain repairs before closing. Either way, you come out ahead.

All of these items can be sold for a tidy "extra" profit. It is not unusual to earn an extra $3000 or more in this manner, all from a single transaction.

Of course, when you resell the real estate, be sure to exclude these items from your sales agreement. Don't you be the one giving them away!

Oh, and if the property has an old barn? Exclude that from the sales agreement, too, if you can. Not the land it is on - just the barn. Take it down and sell the boards and beams - old lumber and timbers command a high price on the open market.

Bear in mind that many of our techniques will increase your tax liability due to these extra profits. To reduce your taxes, you can give these items away to charity and write off their full value, rather than sell at half-value (which adds to your income - and your taxes!)

Check out "The Simple Man's Guide to Real Estate Investing" for a lot more ntips to increase profits or decrease costs.

 

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