Reo Week1 Qna

8/10/2019 Reo Week1 Qna

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Module One Q & A

Preston: Welcome to the very first REO Rock Star Q&A session. We started theprogram teaching you the most important part of this equation !hich is gettingin !ith the realtors. We gave you some home!ork and hopefully you havecompleted it or are !orking on it.

We no! !ant to get some feed"ack from every"ody a"out !hat#s going on. $ !ouldprefer if you !ould direct your questions to !hat !e cover in this first !eek"ecause that should "e !here most of you are.

We have had numerous people !ho have already put deals under contract andthey%re moving full steam ahead "ut if $ had to guess this early in the gamethat#s pro"a"ly the eception more than the rule.

'ry to keep your questions specific to !hat !e%re dealing !ith !hich is dealing !iththe realtors locating the "est realtors to !ork !ith getting in !ith them talking!ith them convincing them to give us a shot to if nothing else send us thetypes of deals !e%re looking for.

$ !ant to share a couple of quotes !ith you guys (ust to get us started. 'hesequotes all have the same topic.

)o not "e too timid and squeamish a"out your action. All life is an eperience.Ralph Waldo Emerson.

'he great end of life is not kno!ledge "ut action. 'homas *enry *uley

Remem"er people !ill (udge you "y your action not your intention. +ou may havea heart of gold "ut so does a hard "oiled egg. Anonymous

'ake time to deli"erate "ut !hen the time for action arrives stop thinking and go in.,apoleon -onaparte.

'he unfortunately thing is that the /01/ rule applies to a"solutely everything eventhe REO Rock Star. '!enty percent of you are going to produce /2 of theresults of the success stories. 'he hard thing a"out it that no matter !hat it isthat you !ant to do in life it requires action and hard !ork.

)on#t let any"ody fool you and tell you that you can (ust push a "utton and money!ill start raining from the sky. $t#s unrealistic.

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Module One Q & A

'he fact is that most people are in no frame of mind or shape to pay the dues so!hen they see !hat it entails to make something happen they (ust quit"ecause it takes you out of your comfort 3one and so on.

$ !ant to encourage you to take action. What !e%re telling you to do is the very "est!ay to "uild an REO !holesaling "usiness. 'here may "e people out therethat sell a much seier !ay of doing this like here is a "unch of magical leafs.4ust hit this "utton and all of your contracts !ill go out to them and money !illstart falling from the sky "ut it#s not realistic.

What !e%re teaching you to do is going to help you "uild and esta"lish a successfulprofita"le long term "ig !holesaling "usiness. +ou%re dealing !ith America#s56 !holesaler of REOs. $ kno! that#s a fact.

7et#s get started. Whenever you !ant to ask a question (ust put your hand up.'here is a "utton for you to put your hand up. $#ll go through and unmute you.

7ee are you there8

Lee: +es.

Preston: 7ee mentioned to me that some of your questions had ended up in the spam"o. *e#ll go through and there !ere a"out ten of them. $f for any reason yousend in a message and it didn%t get ans!ered keep in mind there are a"out9// of you so this is a "ig chore to do "ut !e can handle it.

-e patient. We#ll get "ack to you !ithin 1: hours. Sorry if yours landed in the spam"o and !e#ll "e sure and check that from no! on.

Lee: We%re all a"out real life eperiences ho! to actually do REOs no pie;in;the;skyhere is !hat you do in the trenches. $ had an agent come "ack to me todayand let me kno! that one of the people that !as !holesaling my properties!as A< representing himself as a realtor and -< !as telling people they o!nedthe house.

,eedless to say there !as a complaint put into the realtor "ut "ecause $ have agood relationship !ith the realtor the realtor called me to give me a head#s up.'hank goodness they !eren#t upset at me.

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Module One Q & A

A good tip is if other people are selling the house make sure they tell people thetruth. +ou have it under contract you%re "uying it from the "ank and you%reselling to them. 'here is no smoke and mirrors in !hat !e do. $t#s perfectlylegal. When you put these houses under contract make sure you%re notmisrepresenting.

'his particular guy has a complaint put in as representing himself as a realtor andhe#s not. $ !anted to share that !ith every"ody. +ou%re going to come acrossrogue !holesalers that you#ll "e !orking !ith so make sure you%re not one ofthem yourself.

Preston: =ood tip. 7ee also mentioned that a fe! of you asked for some scripts fordealing !ith realtors specifically !hat to say !hen you talk to them. 'he REORock Stars are going to put them together for you. Our goal is to get them toyou "y net 'uesday. We#ll do our very "est to make that happen so "elooking for that. $t !ill "e very useful.

$f $ had thought of that in advance !e#d have had those ready. We#d love to hear allof your feed"ack. We !ant as many success stories as possi"le. $ !ant all ofyou to send me videos of you holding up piles of cash. $#ve had people do it"efore many times. Sho! me all of the deals and tell me ho! !onderful !eare for helping you do this.

Anything you feel that !ould help you do that !e%re open;minded. Whatever help!e can offer let us kno! and !e#ll try to do it.

Ed $#m going to unmute you. =et ready.

Ed: $ kno! some of the realtors that are doing some of the REO "usiness in the area $!ant to !ork in. $ have an eisting relationship !ith them from somethingcompletely separate.

$ think it#s pro"a"ly going to "e easy for me to "uild on that and get some properties"ut $ don#t think $#ve gotten enough out of the program yet to go for!ard !iththese deals.

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Module One Q & A

Should $ hold off on approaching them until $ get more information8 $ need to get adeal going "ecause $ (ust lost my full time (o". $ need to make money in ahurry.

Preston: 7ee can ans!er that as !ell. +our question is one module into this courseshould you go ahead and make offers even though you don#t have the !holestory ready.

>y ans!er is yes "ecause as soon as you run up against something you don#tkno! ho! to do you have access to us and !e#ll tell you !hat to do.

Lee: +es $ !as (ust going to say that. $ have had several students !ho have alreadycontracted properties and !e%re going "ack and forth discussing ho! to movefor!ard.

$ !ould say if you already have eisting relationships !ith these realtors don#t pushfor!ard 66/2. 'read lightly. 'ry to get one deal under contract !ith each ofthem and don#t over etend yourself. +ou don#t !ant to ruin the eistingrelationship you already have.

-e up front !ith them. Say We#ve got a great !orking relationship. $#m no!moving into this particular area and !ould love to do this !ith you too. )o youhave any great deals8

'he fact that you already have a good relationship !ith them $ guarantee they#llcherry pick a good deal for you.

,et 'uesday !e#ll talk a"out !hat a good deal is. $f you#ve got a no;"rainer andyou already have an eisting relationship !ith them $ !ould say a"solutely.7et#s put it under contract "ut put it out for ?/;:9 days and let#s get started.

$n the introduction !e said make sure it#s an investor friendly property. $ !ould sayon your first property not a house that is completely trashed. +ou don#t !ant ahouse that needs so much !ork it#s going to scare people off. $t#s got to "e!ay "elo! market value and net 'uesday !e#ll discuss !hat that means.

$f they#ve got a no;"rainer deal take it "ut if you%re uneasy a"out the deal let#s !aituntil net !eek !hen !e talk a"out evaluating deals then you can start puttingsomething under contract.

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Module One Q & A

$t#s great that you already have some relationships. $ !ould tell everyone if youhave relationships leverage those relationships "ut don#t "e dishonest as to!here you are in your REO "usiness. 'o those people you can "e a little moreupfront and say +ou kno! $ don#t do this "usiness. 'his is the "usiness $#vemoved into and $ !ant to start doing "usiness !ith you.

Preston: +ou%re talking a"out people that you already kno! and have a relationship!ith right8

Lee: Right. +ou don#t have to fake until you make !ith people you already kno!. +oucan "e upfront that you%re moving into the REO "usiness.

Preston: Whatever deal you%re looking at send it over so !e can look at it and !e#ll tellyou !hat !e think a"out it.

Lee: 'hat#s a good idea.

Preston: Send us over the comp tell us !hat you kno! a"out the neigh"orhood andlet#s do some deals. 'hat#s !hat !e%re here to do.

Ed: 'hanks guys. $ appreciate that.

Preston: Okay )on $#m un;muting you ask your question.

1. If we had a question where do we email that or do you have aphone number we can call if we have a deal?

Preston: ,o phone everything over email. [email protected].

Don: Okay. $ missed the first ten minutes on 'uesday.

Preston: 'he replay is at REORockStar.com0mem"ers. 'he user name is REO and thepass!ord is rock star. or every"ody else questions like this need to go tosupport "ecause !e%re taking up every"ody#s time. 'he questions need to "especific a"out !hat !e taught on 'uesday.

Don: $ don#t understand !hat !e tell the realtors. We have an open line of credit !orking!ith !holesalers and an investment group.

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mailto:[email protected]




Module One Q & A

techniques are a little "it more difficult. We !ant you to focus on propertiesyou can flip to cash "uyers.

'ypically and not every market is the same "ut in your area you#ll find investors arehanging out on the lo!er end properties. Again !e#ll talk a"out evaluatingdeals and ho! to figure out !here the investors in your to!n are hanging out.

+ou#ll find that investors like to hang out at the "ottom end of the market and they!ant to hit it even lo!er and those are the properties you#ll "e going after.'hey%re "elo! market value at the "ottom.

'hose are the kinds of houses in !hich $#ve had D/2 of my success in and that#s!hy $#m teaching you to do the same. 'hat is !here the most cash "uyers arefound. 'he more epensive the property is the smaller the pool of cash"uyers.

We#ll start at the "ottom and as !e find other niches up higher that#s great "utprimarily $ !ant you to focus at getting properties at the lo! end.

When you get a property under contract as long as it#s the right property you#llhave no pro"lem selling it. +ou have to make sure it#s an easy reha" and nottoo epensive.

Don: Okay.

Preston: Elton you are un;muted ho! are you8 =o ahead !ith your question.

Elton: $#m good. 'here are t!o properties close to me that !ent through the sale last!eek.

(. Is it possible to do this by #oin# strai#ht to the ban% ri#ht away oris there a time that they have to #o throu#h an a#ent?

Lee: 'hat#s a great question and $#ve had that from several people. 'he ans!er is yes.$n certain markets you can call the "ank. As far as the "est use of your timeyou%re going to find that you get pushed through a "ig s!itch"oard !hen youtry calling a "ank for a property they#ve (ust foreclosed on and not yet listed.

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Module One Q & A

'ypically you%re going to ask for their REO )epartment. +ou%re going to find thereis a lot of red tape "ecause they have a specific channel. $#ve seen propertiesgo from the auction on >onday to "eing listed on Wednesday in the "iggermarkets.

$n some of the softer markets that are a little "it slo!er it could "e a !eek or t!oand in some cases "ecause there is still a moratorium !ith certain "anks they!ill take the property "ack at auction "ut they%re trying to get more moneyfrom the government.

'hey%re not even putting the property for sale "ecause then they#ll have toreali3e the asset on the "ooks and take a huge hit on it. 'here are a lot ofproperties in the holding pattern.

+ou can go to the "ank "ut you#ll find !ith most "anks you#ll get the runaround andnot get a straight ans!er. +ou%re "etter off !aiting for it to get !ith the agent.

$f you get in !ith the top agents $ kno! if a property has gone through the auctionit#s going to "e one of a"out ten people that !ill get it. $t goes "ack to the/01/ rule. 'here is an /2 chance that one of the people $ deal !ith aregoing to get the listing.

$ think that#s a "etter use of your time. $ don#t think it#s very fruitful to chase the"anks every time a property goes through auction and trying to "uy direct.

Preston: 'hat "eing said if it#s right there in your neigh"orhood and you#d love to havethose houses and keep them as a rental "y all means go ahead.

Lee: +es a"solutely. $t#s !orth the etra !ork in that case.

Elton: One of them $ !ant "adly so $ might try that.

Preston: $ definitely !ould.

Lee: Epect a couple of hours on the phone.

Elton: Okay thank you.

Preston: =eorge !hat#s your question8

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Module One Q & A

)eor#e: =ood evening. -eing ne! $#ve "een hearing the questions. With theinvestors the private money investors $#m having a time !ith that "eing ne!.

*. +re there any #ood su##estions or leads?

Preston: +es don#t use them. 'hat#s my suggestion. 7ee !hat#s your suggestion8

Lee: With private money you have to "e careful. A lot of people claim to "e hardmoneylenders and they%re not. 'hey%re going through the same under!ritingprocess that a normal lender does.

Preston: *e#s talking a"out him using private money right =eorge8

)eor#e: +es.

Lee: Oh rivate money is only if you need to close on the property. We prefer not to dothat. We prefer to sell them the same day and collect a profit.

)eor#e: Okay.

Preston: As ne! as you%re saying you are it !ould not "e a good idea to close !ith hardmoney private money your mother#s money or any"ody#s money.

Lee: Our advice is to flip it get out collect your profit and move on to the net deal that#sthe "est !ay to start out.

Preston: Fntil you%re rich.

)eor#e: All right.

Preston: And that#s right around the corner for you =eorge.

Lee: =ood luck =eorge.Preston: =. >aser.

): When you first intervie!ed the agent there !ere t!o questions. One !as do youspeciali3e in REOs !hat !as the second question8

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Module One Q & A

Lee: A"solutely. 'he second question is ho! many REO listings do you have8 +ou canseparate the men from the "oys. 'hose questions !ill give you a hit list of!ho#s !ho in your to!n.

,. If they say they have ten or more listin#s- does that put them in the#ame?

Lee: Some of the people $ "ought a lot of deals from right no! have a fe! "ut netmonth could have :/;9/. $ think ten !ould definitely "e a good rule of thum".$n some smaller to!ns you%re going to find they may not have ten activelistings. $f they have ten listings in total $ think that#s a good rule of thum".

Preston: Once you%re talking to different realtors and ask that question often enoughyou#ll find out the average and also !ho#s eceptional. $t may not "e ten inyour area the average may "e t!o "ut then you find that one realtor !ho haseight so that#s your man.

Lee: *ere in 'ampa 9/ or more !ould put you in superstar status.

): $#m in 7.A. $f $#m going to !ork my home area $ imagine they should have plenty inthe pipeline.

Lee: +ou#ll find a superstar agent controlling the market. 'here !ill "e literally five to tenagents or "rokerages "ecause many times they !ork in teams. Sometimesyou#ll have to find a team "ut if you get !ith one person on the team they !illget you in !ith the rest of the team.

+ou don#t have to focus on getting all ten people in that office in your pocket.Work closely !ith one start hanging !ith them and getting to kno! them andthey#ll introduce you to the rest. 'hat#s ho! $ did it.

): 'hank you.

Preston: =il"ert.. /irst of all- how do I set up the LL0?

)ilbert: +ou said you don#t set up anything in your o!n name so $ !anted to makesure.

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Module One Q & A

Lee: $ set up an 77G in my !ife#s name "ecause $ am a licensed real estate agent.'here are additional disclosures !hen you%re selling a property as a licensedreal estate agent in disclosing that to people. When my !ife sells it $#m not theseller so she doesn%t have to disclose that she#s a licensed real estate agent.

$t makes a "ig difference. Sometimes !hen you have any sort of a license itcreates more lia"ility. As far as the "uying and selling aspect of my "usinessit separates me from that lia"ility.

$n regard to setting up the 77G it varies "y state. +ou may "e a"le to do it online oryou may need to get an attorney. or the most part in most states you can=oogle it and set it up online in your particular state.

'he reason $ don#t do it in my name is "ecause $#m licenses.

Preston: $ have a GA set up all of my corporations "ut you can have a "ookkeeper setup your corporations for B69/ may"e.

)ilbert: $#m coming across a lot of good deals here in *ouston.

. 2ow would I find the end buyer? !hat is the process for me to dothat?

Lee: 'hat !ill "e heavily covered in !eek four. -ecause !e have so many people raringto go !e may !ant to shift that around. 4ust to give you a sneak previe! a"anded sign. $f you have no "uyers this is !here you have to start. aysomeone B6 a sign to put out "anded signs for your house.

+ou can advertise free on Graigslist the Reha" 7ist is free or any other meetings. $fthere are local real estate or investor meetings in your area "ring your deal tothat meeting and there is a good chance you can sell it there. 'here are sometips "efore !e get to !eek four.

Preston: We need to save that for !eek four "ut you have 7ee at your disposal. Onceyou get a deal under contract (ust drop him an email and he#ll tell you !hat todo.

Also at our !holesaling "usiness in 'ampa Real reedom roperties $ think !e#vesold our past five to ten houses all !ith "anded signs. ut up some signs that

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Module One Q & A

say cheap house !ith your cell phone num"er and your phone !ill ring off thehook.

Lee: $#ve tested all different num"ers of signs and $#ve found that 1/ at a minimum is agreat !ay to sell a house.

)ilbert: 'hank you.

Preston: $ like the energy. Every"ody is ready to cash some checks.

Lee: 'hat#s !hy !e%re hereH !e%re not playing around.

Preston: 4ames comment or question.

3ames: 4umping over to the forms section. $ notice on the contract it says lorida-oard of Realtors and also the lorida -ar. $ kno! !ith these realtors if youthro! another contract in front of them that isn#t a standard realtor contractHthey#ll "aulk.

Preston: 'he "est thing to do is to use your state approved contract. We have othercontracts !e use and could have given those to you "ut !hat every"odyneeds to do is to get your state approved contract.

We%re teaching you as a general principle this is ho! !e fill out a loridacontract and that !ill help you learn to fill out your state approved contract.

Any questions you have !ith your particular contract !e#ll "e happy to look at.7ee am $ right in saying that8

Lee: Gorrect. +ou%ll find in your area there is one kind of contract that real estate agentsand "anks like to use. ind out !hat it is and use the same principals.

3ames: 'hey all seem to have the standard realtor contract at least here in lorida.

Lee: $f you%re here in lorida you can use that one. 'hat#s the eact contract $ use herein lorida every day in my "usiness.

3ames: +ou have no trou"le !ith realtors giving you any pro"lem !ith it8

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Module One Q & A

Lee: $f they !ant to use a lorida orm D it#s no "id deal. 4ust change it over to a loridaorm D. $t#s all the same information.

3ames: 'hank you.

Preston: We should have one of our Iirtual assistants try to track do!n all 9/ statesapproved contracts.

Lee: $ (ust !rote that do!n.

Preston: 4ames S.

3ames: $ !as asking the same question regarding finding the "uyers.

4. Do you use any online sources?

Preston: We do and !e (ust gave you a couple. >y suggestion is that if you don#t havea deal under contract right no! there is no sense in putting the cart "efore thehorse.

or my I$ students their tendency is to (ump right in. 'hey ask *o! do $ close thedeal8 $ ask What deals do you have8 $ don#t have a deal. $ say Why are !etalking a"out this8

As you get deals send them in. We#ll help you get them done and !e#ll get to all ofthis other stuff.

15.!e can send them in?

3ames: $ have a lot of deals on the >7S and $ can send them into you and you#ll helpme out8

Preston: +ou have a lot of deals on the >7S8 'hat you%re looking at8

3ames: +es.

Lee: or a sneak previe! make sure you%re "uying a deal !ith at least a profit margin soyou%re "uying it cheaper than cash "uyers "uying the same type of property inyour area. $f you%re "uying it at the same price there is no room for profit.

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Module One Q & A

$ get a lot of my deals like that !here they%re listed to high. $n K/;D/ days they getdesperate and slam them do!n B1////;B:////. 'hey call me and say this isgetting a "ig price drop tomorro!. $t#s as easy as that.

3eanette: Okay thank you.

Preston: 4ason.

3ason: $#m in the 7.A. market. $#ve "een looking at a lot of REOs and a lot ofresidential "uyers are "idding them up over the asking price.

1.!here would be the best area to loo% when you$re in a city thatsi8e? !ould you #o to farther outlyin# areas where there is not asmuch demand for the property or stay ri#ht in the center?

Lee: +ou !ant demand "ut focus on the lo!er end properties !here investors andlandlords are "uying.

Preston: 'here pro"a"ly aren#t any retail "uyers in those areas. +ou%re talking a"outthe hood almost.

Lee: 'hat#s !here investors "uy. 7andlords "uy in the hood. 'hat#s keeping it real andthat#s the truth. When you get in !ith the agents you !on#t "e getting in"idding !ars "ecause there is an underground REO market that !e#ve "eenspeaking a"out.

'he agents are selling to their friends and the people they like and the stuff that getsout there in the market on !hich a "idding !ar gets created that#s not typicallythe hottest stuff that#s availa"le. 'he good stuff gets snapped up and goespending on day one. $t happens all over the F.S.

3ason: 'hat#s !hat the pocket listings are.

Lee: Eactly. 'here is a fine line "ut the un;ethicalness lies !ith the agent and not !ithyou. )on#t !orry a"out ho! they do their "usiness.

>ake sure you get in !ith them get the stuff "efore or right !hen it#s listed get theinside track on other offers and get stuff that#s cheap and hot that otherinvestors are !illing to pay B9///;B1//// more not even "atting an eyelid.

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Module One Q & A

'hey%re getting a great deal you%re making your money and that#s ho! !e doit.

3ason: We%re focusing on landlords and cash "uyers.

Lee: A"solutely. 'hey have cash and they move fast. 'hey%re solid "uyers.

3ason: Okay thanks.

Preston: >ove into Gompton or 7ong -each.

Lee: $ used to live out there and $#m familiar !ith 7.A. Email me and $ can give you somesuggestions.

Preston: 'ell them no! "ecause a lot of people are in 7.A.

Lee: $ started out in San -ernardino a"out / miles outside of 7.A. $ had great successthere. +ou mentioned areas like Gompton and the lo!er incomeneigh"orhoods. Stay in the lo!er income neigh"orhoods. 'he people "uyingthere are investors.

*ang out !here the investors hang out. Any areas that are lo!er right around 7.A.get into those. $f you !ant to stretch out far San -ernardino places like thatRiverside Gounty there are some great deals right no!.

Preston: 4anet.

3anet:$ have a question the !ay you do the transaction !ith REOs.

1'.I understand that they need to be paid in cash ri#ht away- ri#ht?

Preston: +es "ut not "y you.

3anet:>eaning8

Lee: +our "uyer#s cash.

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Module One Q & A

3anet:$s that something they allo!8 $ don#t kno! if it#s true and $#ve "een surprised !ithyour program "ecause $ heard you%re !holesaling REOs. Some people sayyou cannot !holesale REOs. $#m confused.

1(.2ow do the transactions #o? If you come in li%e you are #oin# topurchase- but then you have a different buyer?

Preston: We#ve got a"out five different !ays to make that happen and !e%re going toteach them all in !eek five. or no! you (ust have to trust us. $t#s very easy.

Lee: $f you get a deal and a "uyer $ !ill hold your hand and get that deal closed.

3anet:Okay $#ll try.

Preston: eople also say that there is no =od. 'here are a lot of idiots out there.

3anet:'hank you.

Preston: rom no! on no one is allo!ed to "elieve anything ecept !hat me and therock stars say. +ou are officially not allo!ed to listen to anyone. or si!eeks shut off the 'I don#t listen to your friends and family focus do yourhome!ork do eactly !hat !e say and !atch !hat happens.

4eff.

3eff: One question goes "ack to the other night a"out credita"ility and the quote Lake ittill you make it.M $ like that overcoming lack of eperience. $ have the gist of!hat you are saying "ut $#m in a tough market ,e! +ork and 7ong $sland,e! +ork. $ can (ust picture some of the heavy hitters !hen you !ere doingthat face to face.

15. 9uestions li%e- can you name a property that you recently did- it&sa close%nit community and a lot of them %now who the playersare- so any tips alon# that line?

$ kno! you mentioned that !e have an open line of creditH !e#ve done over suchand such houses "ut any tips in case you%re questioned and you don#t !antyour foot in your mouth8

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Module One Q & A

Preston: 'he first thing is not to pro(ect your fears on to these realtors. What you%rethinking they%re going to say in un!arranted. $#m not convinced that they !ouldsay that.

$f you go in there epecting them to say stuff like that they#ll say stuff like that. 7ee!hat#s your suggestion8

Lee: $#ve never personally had a realtor questioning me tell me the last deal you did. $!ould suggestion that if they ask you that eact question you used to!holesale outside of their area and you#ve "egun !holesaling in this particulararea if that#s !hat you have to do. 'hey#ve never asked me that question.

'hey looked at my attitude confidence and the fact that $ !alked into their officeand told them that $ !anted to deal !ith them "ecause they !ere one of the"iggest agents in to!n. >ake sure to complement them on that. $t#s veryimportant. +ou are the "iggest agent here in to!n and that#s !hy $ !ant todeal !ith you.

3eff: +ou%re going to "e their "iggest client and $ !ant to deal !ith the !inner so kind ofgo !ith that approach8

Lee: A"solutely "ecause you%re complementing them. 'here are not very many peoplethat !ill get insulted "y a complement. $ don#t kno! of any.

3eff: 'rue.

Preston: Attitude is everything. 'he attitude that you "ring to this "usiness is a"solutelyeverything. When some"ody comes to me !ith that spark in their eye and $can see it.

$f they say reston $ kno! you don#t mentor any"ody local "ut $#m going to "e yournum"er one thing "lah; "lah; "lah and they keep "ugging me they%re al!ayssmiling have good energy and $ can feel it people are sensitive to that.Every"ody has energy !e carry in us and people can feel it.

+ou must develop that positive outlook attitude energy and you can sho! up attheir front door and start speaking in tongues and they !ould still say okay!e#ll do it. 'hat#s a "ig piece of it.

18



Module One Q & A

'he most successful "usinesses are "ecoming very laid "ack. $f you open one oftheir instruction manuals !hen you "uy one of their gadgets they%re cracking

(okes as if they%re a friend from college.

$f you look at some commercials you have that one guy that#s at the head of thepack. Which company is that8 Ieri3on Wireless. $t#s that one guy no more"usiness (ust that one guy.

7ook at Gharles Sch!a" a total financial giant. ,ot anymore. What is it no!8 AskGhuck. 'hey%re starting to use cartoons.

>y point is pay attention to the !ay that $ do "usiness and the tone $ have in myemails. $ think you#ll notice it#s not corporate and that you pro"a"ly liked it.

>y advice is to model that. orget the suits and "usiness card. 4ust go out andmeet friends. 'reat people ho! you !ould !ant to "e treated and lose all thecorporate geek speak. -e friends !ith these people.

'hink a"out ho! you go a"out getting friends in general. $f you#ll think a"out thatand then start treating the realtor and your "uyers in that same !ay thinka"out ho! friendships develop.

'ypically !hen $ meet someone and $ think $ like that guy $ instinctively give to thatperson. $ think What can $ do to make that guy#s life "etter8 $ personally takethat same route in "usiness.

$f you#ve had any eperience !ith me for any amount of time you#ll notice that $pro"a"ly never asked you for something !ithout giving you something first.4ust a little insider tip that sparks the 7a! of Reciprocation.

7ook at the *are Jrishna#s. 'hey !alk around and don#t (ust ask you for moneythey give you a flo!er first and guilt you into doing it.

>y suggestion to you is to do the same thing. +ou !ant to get to kno! theserealtors. >ay"e $#ll like this person. What can $ do for you8

When $ go to attorneys my goal is to get leads from them for pro"ate and !hat not.>y first !ords !hen $ take them to lunch !ith them "uying of course my first!ords are !hat#s up man ho! can $ help you8

20



Module One Q & A

+ou guys have pro"a"ly kno!n people in your life that you (ust feel this pull to helpthem and hang out !ith them and "e around them. $ kno! people like that so!hat $%m saying is try to "ecome a person like that.

'hat%s (ust a quick little tip for you all (ust to let you kno! !hat%s truly possi"le. 4imon the line thanks "ro.

3im: 'hank you.

Preston: We%re going until 6/N?/ tonight so if !e don%t get to your question you can stillemail your questions to the Rock Star. 4erry *all you%re un;muted.

3erry: Sorry $ didn%t hear my name.

Preston: *o! are you8

3erry: retty good ho! are you8

Preston: $%m good man !hat%s up8

3erry: 4ust a quick question.

1.!hen an offer is put in and accepted is there #enerally a downpayment that has to be laid down and if so- how much is that?

Lee: $t depends on !hat you put in your offer.

3erry: Really you can dictate that8

Lee: $n some markets you can and in some markets you can%t. A lot of people have "eenemailing me this and saying !ith a cash offer it%s a 6/2 deposit do!n.

$f you don%t have a 6/2 deposit do!n they can list !ith your proof of funds asa hard money !hich actually the "anks on one hand they kno! it%s cash andon the other hand they vie! it as financing for the purpose of minimi3ing yourdeposit and you can get a!ay !ith B9//;B6///. +ou%ve got to play "oth sidesof the fence !here it%s advantageous for you.

22



Module One Q & A

$f you%re starting out you !ant to put do!n as little deposit as possi"le and stillsho! good faith.

Preston: $t%s the same as anything. +ou%ve got to hustle a little more at the "eginning.Even 7ee at this point puts do!n a "ig deposit every once in a!hile to makesure he gets the deal. 'he "anks like to see a "ig deposit. $t%s not imperativeand doesn%t mean anythingH you%re still going to do deals.

Lee: On that note $ al!ays try to minimi3e my deposits "ecause even $ can scre! up onone in 9/ or one in 6// deals so my ideal is B9//;B6/// even no! at mystage $ still !ant to do B9//;B6///.

$f $ have ?/ deals under contract and $ put B9/// do!n for each one that%sB69//// that%s dead it%s (ust tied up in deposits. ,o one !ants to "e there.

Preston: We%re going to tell you all ho! to "e a"le to !rite that check and never have tocash it and never risk anything so don%t !orry a"out that stuff right no!.

)oes that ans!er your question 4erry8

3erry: +es it does thanks.

Preston: 4ill 4ohnson you%re un;muted.

3ill: *i guys can you hear me okay8

Lee: +es (ust fine.

3ill: $ did my home!ork. $ asked a realtor to pull the list of REO agents and they !ere allnice properties at retail prices.

14.+ny tips on how to find the wholesale type deals?

Lee: +ou%ve got to check through the pendings and solds. $ guarantee you there arehouses that are "eing sold that are !holesale deals and even those nicehouses can "e !holesale deals.

7et%s (ust say for argument%s sake those are the only houses availa"le there are stillinvestors snapping up "ank o!ned deals. $ don%t care !here you are in the

23



Module One Q & A

country there are investors "uying them. $f investors are in fact "uying thenice homes you find out !hat kind of nice homes they%re "uying and that%s thestuff you !ant to put under contract.

+ou%re simply slotting yourself "et!een the "ank and the investor and you%reetracting a profit. +ou%ve got to simplify !hat you%re doing reali3e your roleand go !here the action is.

Preston: Also $ !ould tell the realtor to only "ring you !holesale deals. )on%t you think7ee8

Lee: A"solutely. >y realtors don%t "other. $n fact $%ll call them sometimes and say $ sa!this one ho! come you never called me8 'hey%ll say $ kne! you !ouldn%t "einterested. $ love it that%s music to my ears ; $ kne! you !ouldn%t "einterested.

'hey kno! !hat $ !ant and they didn%t even "other calling me. 'hat%s thestage you !ant to get these agents to !here they don%t !aste your time.

Again if it%s a nice house ; let%s (ust say it%s a B1///// house that%s listed atB6///// that%s great. $f it%s a B1///// house listed at B6//// there%s notenough room there for you to do anything !ith.

'rain your agents.

3ill: Okay.

Preston: )id that ans!er your question 4ill8

3ill: +es sort of. >y goal !as to complete the assignment and find !ho the top REOagents are and in doing that $ asked a realtor !ho is not an REO agent toprovide me a list and $ think may"e $ need to ask another realtor. According tohim there !ere no other REO properties on our >7S listing.

Lee: 7et me tell you that people !ho are not REO agents are pro"a"ly not the mostsuccessful agents. 'he most successful agents $ kno! hands do!n !ithout adou"t no eceptions are REO agents.

24



Module One Q & A

'hey%ve got more listings than they kno! !hat to do !ith. 'hese people are literally; they%re all making over si figures and several of them are making severalhundred thousand dollars a year even on crappy properties.

$n nicer areas of the country they%re making seven figures doing high end "anklistings. $t%s insane. +ou !ant to talk to an REO agent to find out a"out REOagents.

A non;REO agent a lot of times is negativeH the market has crashed it sucksthere%s nothing going on out there. 'hey%re negative so that#s pro"a"ly notyour most relia"le source.

3ill: Okay then let me ask this.

5.!hy aren$t wholesale buyers buyin# 6E7 properties and doin#what we$re tryin# to do or do they?

Lee: 'hey do. 'hat%s eactly !hat they do.

3ill: Okay.

Lee: >ost of the "uyers have shifted to "uying "ank o!ned properties that%s eactly!hat reston is saying. $n their home "uying "usiness in Real reedomroperties they%ve gone to actually "uying a lot more "ank o!ned deals"ecause that%s !here the "est deals are.

'hey%re the easiest deals to get they%re the "est deals. $nvestors are a little slo! offthe starting "lock though and !hen $ reali3ed that that%s !hy $ moved into theREO "usiness.

'hey like good deals "ut they%re not !illing to stay on top of it. 'hey !ant a littletime to look at it and evaluate it. +ou%re shotgun ; you%re there you (ump onthe good deals quick you get them and you flip them to these guys and they%llpay you that premium for not having to do a lot of !ork.

Preston: We do this dirty !ork of sorting out all the deals for them and !e (ust hand it tothem on a silver platter.

3ill: Okay that makes sense. 'hank you.

25



Module One Q & A

'he reason !e do that is "ecause title companies are not allo!ed to disperse anyfunds unless it%s disclosed on the *F). A lot of times my !holesalers don%t!ant their "uyers to kno! ho! much they%re making.

We%ll do a side marketing agreement ; it%s perfectly legal $ can pay them amarketing fee ; and it goes directly from me to their end "uyer and sometimesthey%ll have me sign a non;disclosure if it%s a repeat customer of theirs.

$t%s no pro"lem at all. +ou don%t !ant to cut out your competition. 7ike reston saidthey%re going to "e your friends and your assets. Work together !ith them "utal!ays make sure you go direct to the end "uyer.

$t gets very complicated if you%re trying to do a triple close or a quadruple close andall this cra3y stuff that people try to do. -elieve me $%ve tried it and it doesn%t!ork.

Preston: )id !e give them the marketing agreement and the forms for contract8

Lee: 'he marketing agreement a"solutely. $t%s a very simple agreement. $t simplystates that you%re going to pay them at the time of closing and again they can"e paid on the *F) "ut it needs to "e on the *F) in order for them to "e paid"y the title company. Remem"er that.

Preston: )id you put that in the forms and contracts they all have8 $ don%t remem"erseeing it.

Lee: +es $ did.

Preston: )oes that ans!er your question8

3oanne =: +es. -eing ne! at this $ think $ need to concentrate "asically on investors !hoare reha""ing until $ get my feet !et. )oes that sound right8

Lee: Jeep it simple. +ou shouldn#t "e trying to put 9/ properties under contracttomorro! you%re trying to take a nice s!eet deal an easy reha" a house thatmakes sense ; something simple.

28



Module One Q & A

'hen as you learn !hat your "uyers !ant then you can graduate and epandyour hori3ons "uy different kinds of houses go to different areas test differentkids of price ranges "ut keep it simple.

ick an investor;friendly property first.

Preston: At the same time if a !holesale "rings you a "uyer "ecause he sa! your"andit sign and !as like dude $ !ant that house $%ve got a "uyer for it rightno! ; let%s put that deal together.

3oanne =: +ou%ll help me8

Lee: A"solutely !e%re not discouraging that at all !e%re (ust simply saying you don#t !antto do si different contracts and have your contracts come off "eing assignedto someone else.

'here%s a !ay around it. $f you%re focused on the picture of getting the houses soldthere%s !ays around everything. $t%s (ust a matter of speaking to this!holesaler and sho!ing him the "enefit of epediting the deal and having it gostraight to their "uyer rather than through them. $t%s a lot easier.

3oanne =: 'hank you. As a ne! person can $ ask another little question8

Preston: =o ahead.

3oanne: Okay here goes.

25. 2ow do you locate first time investors and how do you openstart adialo#ue for instance via clubs- etc?

,.2ow do you as% them about their investin# e"perience and do youas% if they will live in the property or use it as a rental?

Lee: irst of all !e discussed that earlier.

3oanne =: $n the module one call8

29



Module One Q & A

Lee: ,o actually earlier tonight !e discussed that eact question. $ can tell youH youdon%t care if someone is living in the house. )o they have cash is your firstquestion. $ could care less if they%re living in the house.

3oanne =: Okay.

27. !ould you su##est I try to #et to the I6E+ meetin#s?

Lee: +es. $REA meetings are great for picking up first time investors. A lot of first timeinvestors hang out at $REA meetings it%s great. +ou can "ring them a deal ona silver platter and (ust sell them a deal right there and then.

3oanne =: 'hose $REA meetings are the ones $ used to go to "ack years ago. 'hey getup at a microphone there%s a line of them and they sell their properties atmicrophones or they%ll have a ta"le at the "ack !here they market stuff onflyers.

28. !hat do you su##est I do if I$m at an I6E+ meetin#?

Lee: Whatever !orks. $f you%re more impressed "y someone !ho gets up and speaksa"out their product you need to get up and speak a"out your home and get ridof it that !ay.

>ay"e you !ant to do "oth speak a"out it and have a flyer so people !ho areinterested can gra" a flyer. +ou%ve got to do !hat !orks and again there%s alot of trial and error depending on your area "ut the more marketing you do themore chance you have of selling your house.

'he more creative your marketing is the more chance you have of selling yourhouse.

Preston: Even if you don%t have a house you can still go there and mi it up and (ustmeet some first time investors get their info and "uild your list that !ay.

4ust so you kno! here in 'ampa !e have three different real estate investing clu"sand $ think they all have online forums. $t%s not like you have to go to themeetings anymore most of these people have a !e"site and then forums!here people go "ack and forth. 'hanks for your question 4oanne.

30



Module One Q & A

Lee: 'hinking ahead $ !ant everyone out there to think of themselves as an emailcollector. Start getting that into your mind right no!H you%re an email collector.

Preston: Whatever you use for your email data"ase $ use Entourage and Apple -uild; A;=roup. 4ust start a ne! group email ; my "uyers ; and start puttingevery"ody and their mother in there.

Lee: Anyone !ho even sho!s an interest in "uying a property ; "oom ; put them on yourlist.

Preston: 4oel 7aredo you%re un;muted.

3oel: *i guys thanks. Gan you hear me okay8

Preston: +es.

3oel: $ noticed that for "ank o!ned properties they ask for a proof of funds letter !henyou su"mit an offer and $ noticed the proof of funds that came in the forms.

4.Is that the same letter we$re #oin# to submit to the ban% when wema%e an offer or are we #oin# to twea% it a little bit to fit theproperty we$re ma%in# an offer on?

Lee: =o ahead reston ans!er that.

Preston: )o you !ant them using that letter8

Lee: 'hat%s fine. 'hat letter or you can type something out (ust like it. Again !e%refocusing on getting the properties. $ promise you the "anks don%t care.

On the checklist proof of funds is one of the things on the checklist. $f the agentlikes you and the agent is confident in your "uying a"ility the offer !ill gothrough no pro"lem.

$ get offers accepted all the time "y (ust calling an agent. +ou%ve got to remem"er ;a lot of the offers (ust so you guys kno! out there every"ody kno!s the offersare put in no! on a computer.

31



Module One Q & A

'hey don%t fa your offer to the "ank. ,ine times out of ten they%re simply inputtingprice closing date deposit cash or not cash clicking a "utton and !hen theyget it approved they%ll send you "ack all the addendums and that%s it.

$t%s as simple as that. When you reali3e these things are not that important they%resimply a hump that has to "e gotten over something you have to get past it%s

(ust a checklist. +ou do it don%t get super focused on this stuff.

Preston: Are you saying that you don%t use a proof of funds letter8

Lee: $ do use a proof of funds letter "ut it%s not al!ays necessary. $%m saying the "anksdon%t even look at them nine times out of ten. $t%s required to have it in thepackage "ut they don%t care a"out it.

3oel: Okay thanks.

Preston: 7ee do you ever make ver"al offers8

Lee: A"solutely all the time.

Preston: 4ust !ithout faing a contract over8 4ust tell the realtor hey $%ll give youB?//// for it let me kno! if that !orks.

Lee: A"solutely "ut again it goes "ack to !hat you !ere saying. When you%re friends!ith someone that%s !hen you start to graduate. $t%s less !ork for every"ody.

'hey%ll say hey !hat can you do on that property B9//// !ith a B6/// depositclose in three !eeks thanks $%ll let you kno! if you get it. $f $ do thensometimes they%ll say hey can you fa me over the offer in !riting8

-usiness gets a lot easier !hen you get to kno! people and you%re dealing !ithpeople. or some of you it may seem kind of far off right no! "ut it%s not itreally is not. 'reat people ho! you !ant to "e treated.

Preston: Regarding that proof of funds letter that !e gave you that !as actually kind ofa last second thought to use that. Without that proof of funds letter !hat !ereyou going to recommend people do a"out that8

32



Module One Q & A

3ustin: *ello8 $%d like to go "ack to the realtors and the >7S access. $ kno! thatrealtors su"scri"e to a code of ethics.

'5.I >ust wanted to %now if sharin# =L< access is a violation of thatand if so how do I tactfully as% from the access from multiplea#ents >ust in effort to increase my chances of #ettin# access fromone of them?

Lee: reston !as speaking a"out reciprocation you%ve got to offer and think a"out it ;!hat%s in it for them8 $f you offer them some sort of incentive they may evendo it for you.

$ have certain realtors that do scan the >7S for me "ecause sometimes $ miss dealsand they can do that for you. $n fact like ete the ,in(a did training thoseagents to go out and do a video ; if you offer them part of your money everytime you close a dealC

Preston: We have to give them 1/2.

3ustin: As long as you%re talking some kind of monetary compensation orcompensation period !here it%s !orth it8

Lee: >oney makes the !orld go around and that%s !hat motivates people. 'hat%s !hatreston%s point is. +ou%re giving them something and not "eing a taker.

Preston: 'hat "eing said !e have >7S access and !e don%t have to pay anything.'hat%s (ust "ecause !e have a lot of friends !ho are realtors. 'hat%s the goal.

+ou don%t really !ant to give up your deal (ust for access to the >7S. 4ust gettingstarted out ; !hy not8 'hat 1/2 !e%re giving the other realtors is "ecause !ehave them doing a ton of !ork for us. artnering up !ith realtors especially inthis current market is a very good idea.

3ustin: 'hank you.

Preston: As far as the ethics of them letting us on the >7S ; that%s on them.

3ustin: $ got you.

34



Module One Q & A

Preston: 4ill Gooper you%re un;muted.

3ill: *ello.

Preston: *ello.

3ill: *i there ho! are you guys8

'1.I was tal%in# with a realtor friend today and he was as%in# me li%ewhat specific stuff we need in order for him to compile this list@ arethere specifics we need to as% for?

*e !as asking !hat price range !hat area the square footage and that kind ofstuff.

Preston: We%ll definitely get into that net !eek in detail "ut $ can give a short ans!erand !e%ll make sure that the Rock Star agrees !ith it.

'he criteria you give them needs to "e "ased on !hat landlords and investors are"uying in your area. 'here%s no !ay !e can tell you that "ecause !e don%t livein your area.

'hat%s one of those things that you have to (ust go out and find out. $ think you cango out and find out pretty easily.

$%m on a "unch of people%s mailing lists here in 'ampa. $ get emails !holesaledeals every day. 4ust "y looking at the pattern of !hat%s coming through $kno! eactly !hat people "uy in 'ampa. +ou (ust need to (ump onReha"list.com (ump on !hatever !e"sites in your areas ; type in reha"houses.

Lee: Graig%s 7ist.

Preston: +es "ut Graig%s 7ist isn%t entirely investor houses. $t%s "etter to find other!e"sites like Reha"list.com. 'here%s a "unch of them like that.

35

http://www.rehablist.com/







Module One Q & A

4ump on there and look at !hat all those houses are selling for "ecause those areall !holesalers selling to landlords. 4ust factor in they%re pro"a"ly getting aB6//// spread and then you%ll start to see !here you should "e "uying.

We%ll give you some more tips as far as ho! to "uild that criteria and so on and soforth.

Lee: $ like !hat you said there reston that !as key. Whatever price you see ; knock atleast B6//// off it and that%s !here you need to "e "uying. 'hat%s a great tiphe (ust gave everyone out there tonight as far as getting started and figuringout !hich price to "uy at.

Jnock at least B6//// off other !holesaler%s deals and that%s a good place to start.

3ill: Okay.

'.7ne other thin# that was said on Auesday- you said somethin#about a dummy buyer can you e"plain that please?

Lee: +es. What $ !as saying is if you%re going to "e doing long term "usiness !ith theserealtors you may !ant to have someone that you kno! "e the "uyer on thefirst couple of contracts "ecause if for some reason they go southC

Preston: +ou can "lame it on them.

Lee: +es eactly. 'hey say oh sorry they%re a stupid "uyer can%t "elieve they did that.'hey (ust couldn%t get their money together. +ou !ant a fall guy or a fall!oman for your first couple of deals. 'here%s a chance that even after ourtraining you may still make a mistake and put a completely !rong propertyunder contract.

We say that to you as a safety net to avoid getting your o!n name "lack listedstraight out of the gate.

Preston: Whether you do it or not is totally up to you that%s (ust our advice. Fse yourmom%s name or some"ody%s name !ho is not in real estate and then it doesn%tmatter.

3ill: 'hank you guys.

36



Module One Q & A

Preston: *opefully it%ll "e a non;issue and !e%ll (ust close the first one and all of them.

Lee: A"solutely !e%re (ust trying to provide a safety net that%s all.

Preston: Jim"erly -ro!n you%re un;muted are you there8

Bimberly: +es $ am $%m sorry $ didn%t hear my name. $ have t!o questions. irst $%mlooking for!ard to the information referencing the proof of funds letter "ecausemy question has to do !ith that.

33. If I was buyin# an address at C =ain <treet- wouldn$t I have tohave a proof of funds letter for that specific address?

Preston: $ don%t think so.

Lee: >y proof of funds letter !hat $%m going to do is actually take the name of my lenderoff of it hand it over to reston so he can send it out to you. $%m going to sendyou the eact proof of funds letter $ use every day in my "usiness.

Essentially it%s an open line of credit. $t states that $ have a B6 million line of credit!ith this particular lender and that%s my proof of funds. $t%s not specific to anaddress at all.

Preston: $sn%t that (ust from a hard money lender8

Lee: 'hat is correct.

Bimberly: =reat guys.

Preston: We can get that to you guys "ut $ don%t kno! !hat good it%s going to do you (ust to see that it doesn#t have to "e specific to an address8

Lee: Eactly. What it%s good for is !hen your hard money says yes $ can give you aproof of funds letter ; say hey can you make it like this8 $t%s good forevery"ody "ecause you can sho! them a template.

37



Module One Q & A

$n fact they can copy and paste it into a Word document and put their name at thetop of it. +ou%ve already done the !ork for them. 'hat%s all you need. $f it!orks for me it%ll !ork for you.

Bimberly: Okay.

Preston: $%m going to do a little "it more research on this proof of funds letter that !ealready have for you guys and find out more details on that and get it to you.

'hanks Jim"erly.

Bimberly: 'hank you.

Preston: We%re over the time limit "ut frankly $ feel "ad "ecause there are so manypeople%s hands up $%m going to take a couple more. 7arry >orris.

Larry: *i can you hear me8

Preston: +es.

Larry: $%m in Galifornia and here !hen you sell a property you need to send a transferdisclosure notice to the "uyer "ecause here you can%t sell as is you have tosell as disclosed.

We have to fill out a transfer of disclosure notice to say !hat !e kno! is !rong !iththe property !hen !e sell them here in Galifornia. $f !e don%t look at theproperty then !e don%t kno!C

Lee: 'hat%s your ans!er you don%t kno!.

Preston: +ou have no idea.

Larry: Gan you put that on a transfer disclosure statement8

Lee: Sure.Preston: >ost disclosure statements generally say to the "est of my kno!ledge there%s

nothing !rong. Well you have no kno!ledge.

38



Module One Q & A

'(.Is he the #uy for me or do I need to focus more on #ettin# myselfinto one of these 6E7 specialists?

Lee: We said 9 to 6/ ; you don%t !ant to "e dependent on one source that%s a "asic"usiness principle. *e can "e one of your agents "ut you don%t !ant to haveyour daily "read and "utter coming from one agent you !ant to have multipleagents !orking for you.

Lynne: 'his !on%t interfere !ith our relationship8 Are they pretty much a!are thatthat%s going to happen8

Lee: >ay"e $ misunderstood your question $%m sorry.

Lynne: $ said this !ould not interfere !ith my relationship !ith him8

'*.Is this a normal thin# that real estate a#ents e"pect you$re #oin# tohave multiple a#ents?

Lee: ,o! $ understand your question. +es you !ant to !ork direct !ith the REO agent"ecause you%re not collecting commission. 'his is !hat !e%re teachingevery"ody.

$f you%re !orking !ith a realtor !ho is trying to get you properties that%s like a plan-. +our plan A is to !ork directly !ith the REO agents make sure they get all9 or K2 and that%s ho! you%re going to move yourself to the top of the list.

Again people are al!ays asking !hat%s in it for meH you are much more attractive toan REO agent !hen you do not collect any of their commission.

+ou can have a realtor like that !orking for you and he can "e plugging a!ay in the"ackground trying to pick up the pieces on properties you may have missed"ut your primary goal is to get directly !ith the REO agent !ho has the listingthe listing agent and let them keep "oth sides of the commission.

Lynne: $ see.

',.Is there a normal period of time that you allow for an escrow toallow yourself to find an investor?

40



Module One Q & A

Lee: 'hirty to :9 days.

Lynne: Originally in the last meeting you implied that some of these can turn over indays and it escaped me ho! you could do that.

Lee: $f you found a "uyer the net day and the title is clear and the title company is readyto close $ al!ays !ant to get paid faster so $%ll speed up the closing.

Preston: =ive yourself as much time as possi"le.

Lynne: Okay. 'he "ank !ill accept ?/ days or something like8

Lee: +es that%s the industry standard.

Lynne: 'hat%s the industry standard8

Lee: Gorrect.

Lynne: +ou at one time or another reston mentioned something a"out you had a listof email "uyers a long list that you made availa"le to us is that availa"le no!8

Preston: 'hat !as a long time ago. We don%t do that anymore. 7ynne thanks "ut!e%ve got to get some other people%s questions. What !e%re going to doeveryone ; $ hope you don%t mind me doing this ; "ut !e have so many people!ith questions (ust no! it%s un"elieva"le.

We allotted D/ minutes for this tonight "ut let%s go until 66 o%clock is that all right!ith you8

Lee: ,o pro"lem. $%m happy to ans!er all these questions. $ !ant everyone to succeedso yes let%s do this.

Preston: 7eslie ; you%ve got to enter your audio $,. 7loyd 7eiderman you%re un;mutedare you there8

Lloyd: +es. $%m actually on the free!ay right no! $ left my computer on !ith the handup and $#m on my !ay to !ork. $#m pulling over to the side. >y question isthis. $%m !ondering if you could do a little role play for us on your initial contact!ith a realtor8

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Module One Q & A

Preston: 7istenH first !e%re going to !rite all that out for you in a script. Second $ meandang ; $ hope you guys got something out of that.

Lloyd: $ did.

Preston: 'he "iggest thing $ got !as if $%m that realtor ; its one thing if you%re a "rokerealtor. $f you%re a "roke realtor none of !hat he (ust said !ill mean anything toyou.

$f you are one of the successful ones all successful people admire the crap out ofstuff like !hat 7ee (ust did. $ mean they (ust love it "ecause it%s eactly ho!they are. $t%s eactly ho! they !ere at first.

'ell you !hatH you%d "e hard pressed to find someone !ho !ould not "e impressed!ith the confidence the urgency the flattery ; everything a"out that ; and!ould not !ant to give you a "reak. eople !ant to give those sorts of people"reaks. =ood stuff !e%ll !rite all that out or you.

Lee: 'hat%ll "e ready "y net !eek.

Preston: 'hanks 7loyd.

Lloyd: Gan $ ask one additional quick question8 FPreston: =o ahead.

Lloyd: $ created an 77G and $ called it Gedar Summit roperties 77G.

Preston: 'hat%s not going to !ork.

Lloyd: $s that going to !ork okay8

Preston: ,o. $%m (ust kidding ; 7loyd ; $%m having fun !ith you tonight.

Lloyd: $ chose it "ecause it%s generic sounding and not geographically located. $ lovein ortland and $ don%t !ant to have to say something a"out that.

Lee: 7et me give you an eample 7loyd ; my "uddy has named his company lip 77Gthat%s ho! little it matters.

44



Module One Q & A

+ou "ring your contract in you email them all the specific docs !hich they%re goingto tell you you need from the first title company and the title company !ill dotheir !ork. 'here%s not a !hole lot of paper!ork you need to do.

Preston: 7ee at least !ith the dou"le closes !e do it%s a little "it unusual. $s there any!ay they need to qualify the title company8 or regular !holesaling !hen $!ant to choose a title company $ ask them ; do you accept assigna"lecontracts do you kno! ho! to do trusts8

Lee: We%re going to "e discussing that. $%m going to post that on the frequently askedquestions section for all of our people.

-ut yes you !ant to make sure they can do a dou"le close and you need toeplain to them that it%s "eing disclosed to the "uyer on the title commitmentand make sure they%re familiar !ith the eact deal you%re doing.

=arla:>ake everything up front yes.

Preston: 7ee !e need to !rite out a script for that. $f they (ust run into the title companyand say hey do you do dou"le closes8 ,o one is going to say yes. 'here%sgot to "e a "etter !ay.

Lee: $t depends on the under!riter. $n fact $%ll tell you right no! !hile !e%re on this call'yGor title insurance is one of the most lenient title insurance under!riters so ifyou find a title company that has 'yGor as their under!riter you shouldn%t haveany pro"lems.

Again it varies "y state.

Preston: 'hat%s a good tip. We%re going to !rite out a script for you guys to use !henintervie!ing title companies and you%ll have that shortly.

=arla:'hanks a!esome.Preston: What !as your name again ma%am8 $#m trying to find you on this list of names.

=arla:>arla.

Preston: Sorry $ have to mute you again and $ can%t find you. >arshall alken"erryyou%re un;muted. )id >arshall (ust put us on hold8

46



Module One Q & A

=arshall: ,o $%m here. Gan you hear me8

Preston: +es.

=arshall: =reat. One of the things $%ve heard you talk a"out in the past reston is usinga !e"site like RealQuest.com to locate some of these properties. $#m (ust!onderingC

41. !hat do you thin% about that in addition to tryin# to find a #ood6E7 realtor in your area but usin# a product li%e 6eal9uest.com?

Preston: or finding deals or determining the cost8

=arshall: irst of all to "e a"le to locate some properties quicker !here you can (ustkind of scan an area and then go find the realtors and have them talk to youa"out those properties as !ell.

Preston: $ don%t think they have REO listings in RealQuest.com.

Lee: $ use that for comps and that%s satisfactory. $t%s much "etter for comps. 'he >7S isthe direct source and the "est !ay to find REO listings.

'here are other people out there and products that skim information from the >7Sand from "ank sites "ut they%re not direct. 'here%s al!ays a time lag andthey%re not going to "e the direct source.

=arshall: $ !asn%t sure a"out that "ecause $%m looking at RealQuest.com right no! andit%s got "ank o!ned auctions foreclosures pre;foreclosures near"y sales ; $!asn%t sure if this !as a tool that could "e used.

Lee: 4ust to ans!er your question really quick there is a time delay. 'he information isuploaded from the >7S to there. $f you%re going direct to the >7S as soon asthe agent clicks active for a listing you%ve got it. 'hat%s the difference "et!eena third party site and using the >7S.

=arshall: -eautiful thank you very much.

Lee: +ou could have up to a day or t!o delay in some cases.

47

http://www.realquest.com/











Module One Q & A

=arshall: 'hank you.

Lee: ,o pro"lem thank you.

Preston: >att +ates !hat%s up8

=att: +o reston !hat%s up "uddy8

Preston: *o!%re you doing "ro8

=att: =ood $#ve "een trying to get a hold of you. $ !ant to chat !ith you. $ didn%t kno! ifyou !ere going to call me out tonight or !hat.

$%ve "een harassing you and 7ee sending you guys cra3y emails a"out !orking asa "ank having some connections and resources and so forth and $%m not sureif you%ve really had much ; they%re kind of "rief responses ; "ut one of my"iggest questions is this.

Since $ !ork at a ma(or institution $ !ork on an associate team doing a lot ofrefinances for people not only for this "ank "ut the companies !e merge !ithand "ought out. $%ve done the refinances for the asset managers quite a fe!of them actually that make the decisions and deny or approve these offers.

(.I$m >ust tryin# to fi#ure out they$ll #ive me the time of day- soshould I #o strai#ht to these people?

At the same time $ have REO agents $ have pro"a"ly si or seven friends here inOregon that $ can go to as !ell and get this started $%m seeing !hat direction $can leverage that%s going to "e the most effective !ithout spreading my !ingstoo much.

Lee: 'o ans!er your question if you%re associated !ith some of these asset managersyou%re going to find that in most cases they%re not going to "e a"le to give youthe property direct.

What $ !ould say they%d "e a good resource is hey !ho is the "iggest agent in thisto!n8 'hey%ll "e a"le to give you the list right a!ay of the people they deal!ith.

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Module One Q & A

$f you%ve got a good relationship !ith them they%ll tell you !ho is cool to deal !ithand !ho they like dealing !ith do!n there. $n fact you could say do you mindsending them an email or giving them a call and telling them that me >att+ates !ill "e calling them8

=att: Warming them up.

Lee: A"solutely. 'hat means so much. eople dealing !ith peopleH it%s not !hat youkno! in the REO "usiness ; !ell o"viously it is some of that "ut it%s !ho youkno!.

+ou can definitely leverage those contacts to get introductions from these people.$magineH in a !ay the asset manager is the REO agent%s "oss.

'o have their "oss call them and say hey >att +ates is calling you need to givethis guy the time of day he%s a nice guy and he%ll "e a good "uyer for you.'hat%s !onderful. 'hat%s a great resource to have.

=att: 'he approach $ !anted to do on this is "y running a listing service for these "anko!ned properties "ecause $ also have access to thousands of financialadvisors !ho have clients (ust like reston !as talking a"out earlier !ho arecashing out their :/6k#s and assets and putting it into real estate.

$ hear a"out that every single day and $ have a list of "uyers that $ run across everyday in every single state you can think of and it%s more (ust channeling $ guessagain !hat%s going to make the most sense. $ can talk to these assetmanagers. +ou think asking them !ho are your top REO agents8

Lee: A"solutely. *ave the put out the !ord for you and have them introduce you. $mean that%s (ust a no "rainer right there that%s fantastic.

=att: >y net question is in part !ith that.

43. <hould I >ust stic% to 7re#on for now until I #et that undermana#ed?

7iterally $ can spread my !ings and touch any state. $t doesn%t matter "ut $%m "asedout of ortland Oregon (ust like the last gentleman !e talked to.

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Module One Q & A

=ichael: $t%s a lot of !ork and a lot of hassle !ith trust agreements so $%m definitely on"oard !ith !hat you guys are doing. $ !ant to get into the dou"le escro!thing.

(*.I #uess the cru" is basically usin# a separate title company for thesecond escrow- is that correct?

Preston: Right that%s the key to the !hole thing.

Lee: A"solutely. $n fact $%d like you to do me a favor ; send me an email referencingyourself as the Southern Galifornia three deals a month guy or something likethat so it stands out in my email.

=ichael: =uys $ (ust signed up for your program recently !here !ould $ get yourparticular email 7ee8

Lee: $t%s [email protected].

=ichael: Okay.

Lee: 'hat%ll come right to me.

Preston: $f you%re listening to this at a later date that email may or may not "e functionalat that point.

Lee: 'hank you reston.

Preston: 'hank you >ichael.

=ichael: 'hanks guys.

Preston: One more question. Again any"ody that !e couldn%t get to your question $apologi3e. 4ust for!ard your questions on to 7ee and he%ll still ans!er them.at you%re un;muted.

Pat: +es $ didn%t kno! $ !as asking a question. Gan you hear me8

Preston: +es do you have a question8

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Module One Q & A

Pat: +es $ do have a question actually. $%m calling from 'eas. $%ve "een "uying!holesale properties for the last couple years ecuse me $%ve "een "uyingREOs "ut $%ve not "een flipping them $%ve "een reha""ing them and that sortof thing.

$t%s a similar question to the dou"le close and ho! do you actually "uild up your listof "uyers and all that stuff "ut the dou"le close in particular is a challengehere and !hat $ need to hear. $%m mostly listening ; $ didn%t reali3e $ had myhand up.

Preston: We%ll "e getting into detail !ith that in a fe! sessions. 7et me gra" one morequestion. Rolando you%re un;muted.

6olando: +es can you hear me8

Preston: +es.

6olando: antastic. $ have t!o quick questions. irst $#m actually meeting !ith a realtortomorro! in the San 4ose area. Someone alluded to this question earlier "ut $!anted to go over the >7S criteria !ith them.

46. !hat =L< criteria I should be usin# to find out who the top 6E7a#ents are?

$ do have as far as status goes you should look at active pending sold in the lastD/ days and then some of the pu"lic remarks !hich is !hether it%s "ankscorporate REO and those sorts of things.

(.Is there anythin# else?

Lee: +ou%re trying to "uild a picture of !ho the "iggest players are !ho%s got the mostaction8

$n other !ords an active pending and sold gives you the full picture on !ho is doingthe most REO deals lately and that%s !hat !e%re saying to you and !hat youneed to do. 'hat !ill "uild your list right there of !ho the top players are andthat%s your list starting from one to 6/. Start at the top and move your !aydo!n.

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Module One Q & A

,um"er oneH you can do this. $%m telling you you can do this. $ don%t care !hatany"ody says $ don%t care !hat you friends or family or any"ody says ; youcan do this.

A lot of you are already doing this. $f you are a human !ith a "rain living in a freecountry you can do this.

$f you are not a human ; then that%s really scary. $%m going to have to ask you toplease identify yourself so $ can get you out of this program !e do not deal!ith aliens.

$f you are a human !ith a "rain in a free country you can do this and !e%re going tohelp you to do it. )on%t listen to any"ody for the net si !eeks "esides meand the Rock Star. 'hat is it.

,um"er t!o is make it happen. $t%s up to youH you%ve got to get out there and makeit happen.

=od "less !e%re praying for you guys. We kno! that "ig things are coming your!ay and !e%ll talk to you soon.

See you later 7ee thanks for your time.

Lee: 'hanks guys thank you everyone.

Reo Week1 Qna

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