THE POST RECESSION SURVIVAL GUIDE - connectedinvestors.com · During the recession, values dropped...

THE POST RECESSION

SURVIVAL GUIDE

“ T h e s e c r e t o f

CHANGEi s t o f o c u s a l l o f y o u r e n e r g y ,

NOT ON FIGHTING THE OLD,

b u t o n

BUILDING THE NEW.”- S o c r a t e s

ATTEND THIS WEEK'S LIVE CALL

WITH THE CEO OF CONNECTED INVESTORS.

WHAT YOU WILL LEARN DURING THIS SPECIAL LIVE CALL:

HOW TO FIND IT.. .

Find, analyze, fund, and �ip deals with 1 click from your

phone or computer (next evolution in RE investing!)

HOW TO FUND IT.. .

Get all the money you'll ever need for your deals

(including new advancements like real estate crowdfunding!)

HOW TO FLIP IT.. .

Get access to the world's largest online network of

real estate investors, including cash and

institutional buyers.

REGISTER MY SPOT NOW

http://new.connectedinvestors.com/teleconference

http://new.connectedinvestors.com/teleconference

THE POST RECESSION SURVIVAL GUIDE

IMPROVISE, ADAPT AND OVERCOME!

This quote from Clint Eastwood in Heartbreak Ridge pretty aptly describes today’s Post

Recession cowboys in the real estate investing space.

Pre-recession, we saw millions made in real estate investment. Money �owed freely

and everyone was getting in the game. And then the Crash. No one was immune to the

forces of the real estate economy – it impacted virtually everyone. Developers spent

more time in court than with their families. Newly minted millionaires, certain that

their buys were not speculative, lost it all. Hometown investors who weren’t careful

lost their asse(t)s on everything from �ips to lease options that wouldn’t appraise for

resale. Mortgage brokers went broke, and real estate agents cashing in on the demand

�ed for greener pastures. Even the big names, Trump and Kiyosaki, didn’t escape the

fallout. Trump University, capitalizing on a seemingly unending demand for real estate

investment education, went belly up. Robert Kiyosaki, the everyman sage, �led

bankruptcy.

During the run up, everyone thought they were blazing new trails, but the fact of the

matter is that getting in the game before the crash was pretty easy. It’s the real trail

blazers of today - the post recession cowboys – that we need to study and emulate.

Real estate investment, and frankly

nearly all lucrative endeavors these

days, require constant reinvention.


During the recession, values dropped and so did the availability of capital for many

investors. Mom and Pop house �ippers and landlords saw their acquisitions nearly

grind to a halt. Subsequently, in marched the big institutional buyers, snapping up

single family residential real estate in markets all over the U.S. in numbers previously

unheard of. Some estimates put their infusion of capital into the real estate market in

the tens of billions of dollars. Why? Change means opportunity. And often opportunity

requires change. Like the Heartbreak Ridge cowboy, Improvise, Adapt and Overcome!

Now we’re seeing some institutional buyers pull back, but not retreat. Yes, they’ve

again improvised, adapted and overcome. Blackstone, one of the most active

institutional buyers, is blazing an entirely new trail. Through B2R, Blackstone is now

funding Mom and Pop investors – who have traditionally held portfolios of single

family residential real estate.

They’re not the only ones venturing into new territory. Pay Pal and Linkedin veteran,

Keith Rabois is launching Open Door, a quasi-eBay for home sellers. A few clicks of the

mouse and the sell/buy is complete.

Sou

rce:

th

e Fu

ture

Ten

se


So what does all of this mean for you, the non-institutional real estate investor? Ya gotta

be a cowboy. Learn from the big investment houses how to reinvent yourself for today’s

real estate investing. We are in a new, fast moving era (Seriously? A few clicks and a

house is sold? Pro�tably? Yeh.) Change does equal opportunity and you can cash in.

But you have to face today’s realities. This is true whether you are ten days or ten years

into your investing career. The market will always shift and with it are shifts in how we

do business.

There is high demand for properties listed on the MLS. REOs are being attacked like

seagulls on a french fry. According to a recent Bloomberg report and most likely your

own observations, houses are moving. The great deals are seeing multiple offers and

going under contract fast. This means it’s more important than ever to Find Off-Market

Deals. This is true today and will be true tomorrow, regardless of the condition of the real

estate marketplace. Off market deals are where the real deals are found.

You have to �nd Alternative Sources of Funding. We already mentioned B2R. As the

traditional sources of real estate �nancing still haven’t gotten on board with funding

investors, we’re seeing even more private money lending. And we’re not talking only

about seller �nancing. More and more individuals who have little interest in owning and

managing real estate are “investing” in real estate through the use of the self-directed

IRA, which allows them to loan an investor capital for either �ipping houses or portfolio

holdings.

REALITY #1

REALITY #2


Technology has changed the way we buy, sell and manage real estate. New and

innovative technologies are coming into the market regularly. This holds true whether

you are an investor, mortgage broker or real estate agent. Zillow’s acquisition of Trulia

rocked the world of agents, and Placester promises to make the agents more relevant

in the face of an ever increasing mobile world. And as we’ve seen from the upcoming

launch of Open Door, it’ll change for home sellers too.

So let’s talk about WHAT YOU CAN DO to meet today’s realities head on and improvise,

adapt and overcome.

REALITY #3


FINDING OFF MARKET DEALS

The �rst thing you must realize is that real estate wealth is not a get rich quick

proposition. But it is a get rich proposition, whether you are �ipping houses or holding

cash �owing rentals. You’ve heard it before and we’ll repeat it because it’s true – you

make your money when you buy. Buy right, and there’s pro�t to be made. And buying

off-market deals offers some great advantages beyond the bottom line.

• There’s less Competition When you’re looking for off market deals, your

competition is limited to other investors who may be using the same deal

�nding strategies as you are. When you use the advanced deal �nding

strategies, you can keep great deals coming across your desk and cherry pick

only the best.

• There’s no Middleman Listed properties – especially the good deals, have

lots more moving parts – in essence, too many people in the middle of the

acquisition process. There’s the seller, the listing agent, the buying agent and

most likely their staff members. Too many cooks in the kitchen – but when

you’re focused on off market deals, it’s you and the seller. Making the effort to

�nd off market deals pays off with even better back end pro�ts.

• Win-Win Situation When there’s too much competition and too many cooks

in the kitchen, you lose �exibility to negotiate. And one of your biggest

advantages in acquiring great deals on investment real estate is the ability to

be nimble and negotiate your deals to a win-win outcome – whether it’s price

or terms or even better -- both!


www.connectedinvestors.com

Here’s a few do’s and don’ts for �nding off market deals.

DO

Understand that off market deals must be sought out.

DON’T

Make the mistake of thinking that off market means only a “For Sale by Owner”

property.

DO

DON’T


Network.

Networking gets results – and when done well, networking won’t cost you a lot of

money – just the opposite. It will make you money. And just like other types of

marketing, effective networking can deliver deals over and over again. As you get the

word out that you are buying houses, you’ll be surprised at how many leads you can

generate by simply, purposefully working your network for off market deals.

Make the mistake of thinking that networking is giving out a few business cards at the

business after hours or posting the occasional blurb on social media. Get real with

yourself and recognize that networking is about building relationships not just quick

hit communications.

Connected Investors has an entire Off-Market Deal Finding animated video training

series on Networking and more. You can �nd this in the Ci App store. This is a must

have for anyone struggling to �nd off-market deals.

DO

DON’T


Enlist the services of a Bird Dog.

Bird dogs are those people you put to work intentionally scouting areas for you. Since

you can’t be everywhere all of the time, bird dogs can expand your reach even beyond

your own Driving for Dollars and keep leads coming your way. Setting up a of couple

bird dogs to work with you is a simple process – but deserves to be set up properly so

that your bird dogs keep bringing deals your way. In our cartoon video series, we’ve

dedicated an entire segment to bird dogs because they’ve been proven to work.

Rely on only one deal �nding strategy. Bird Dogs are a great compliment to other strate-

gies but shouldn’t be your only one.

DO

DON’T


Use Bandit Signs for Marketing

In some areas, bandit signs are verboten. But in areas where they are allowed, these

little plastic signs scream for attention. And they get it. That’s why you see so many of

them. And if you have particularly lucrative farm areas, combine Driving for Dollars,

Bird Dogs and Bandit Signs to capture that market area.

Think that the sign police won’t �nd

you. And �ne you. Bandit signs are not

without controversy, so check your

local codes.

DO

DON’T


Use Direct Mail Marketing.

Direct mail marketing is the most cost prohibitive, but one of the most highly effective

ways to reach motivated sellers. There are many ways to identify and market to

motivated sellers. And even though it’s not cheapest route to take, you WILL get results.

You can’t mail to everyone, so who makes a good candidate to receive your mailing?

How about properties that have been inherited? What about the ubiquitous

foreclosures? Mailing lists are available or you can check your county records and

make your own list. What about absentee owners? They often get tired of trying to

manage a property that’s not in their home city. Often you can �nd this information in

your area’s tax records – or it’s even easier to buy a mailing list. Burned out landlords

can also be a great source. There are a lot of accidental landlords out there too.

Checking the eviction records in your city can help you �nd potentially motivated

landlords ready to dump that headache of a house. If you have particular areas where

you want to buy houses, consider “farming” those areas. You can get mailing lists for

the target areas and pare your list down to only those with equity.

Be a one-hit wonder. Direct mail

works best with repeat contact.

You build awareness with multiple

mailings. Also, don’t initiate a

direct mail campaign without

doing your homework. Your best

mailings will be targeted and

timely.

DO

DON’T


ALTERNATIVE SOURCES OF FUNDING

Now that we’ve identi�ed some of the ways you can �nd off-market deals, we need to

fund those deals, so let’s look at

Financing for real estate investors has changed dramatically since the meltdown. But

that doesn’t mean there aren’t ways to fund your deals. A few do’s and don’ts for

�nding those sources follow.

Seek out Private Money Sources.

We already mentioned the Self-Directed IRA for funding deals. You can use your own

or the SD IRA of others. How do you �nd the others? Yeah, it’s that whole networking

thing again. Then there’s seller �nancing. You can �nd seller �nanced deals through:

a) Yes, networking and b) Targeted direct mail. You’ve probably heard of or maybe

even participated in Crowdfunding. Fortunately for you, the real estate investor,

Crowdfunding has arrived and is a viable source of dollars for your deals. According

to Nav Athwal, Cofounder and CEO of RealtyShares, in 2013 alone crowdfunding

(including debt, equity, rewards and donation based crowdfunding) is responsible for

approximately $5 billion worth of capital raised. Viable does seem to be the key word

here.

Be a one-trick pony when it comes to funding your deals. Funding sources dry up. Just

ask any investor who relied solely on institutional �nancing how they know.

DO

DON’T


Collaborate, Partner and Pro�t.

Make the mistake of thinking that networking is giving out a few business cards at the

business after hours or posting the occasional blurb on social media. Get real with

yourself and recognize that networking is about building relationships not just quick

hit communications.

Connected Investors has an entire Off-Market Deal Finding animated video training

series on Networking and more. You can �nd this in the Ci App store. This is a must

have for anyone struggling to �nd off-market deals.

Enter into partnerships without clarity and agreement. There are pitfalls. Don’t ignore

the essential ingredients to a successful partnership.

DO

DON’T


TECHNOLOGY HAS CHANGED

Change with it.

We know that the real estate marketplace will always evolve. We know that access to

capital will evolve as well, and we also know that technology pre- and post-crash are

very different animals. You are probably reading this on a mobile device. It’s likely that

you found Connected Investors through social media. Before the crash, real

estate-related technology was still in its infancy. Zillow launched in 2005 by former

Microsoft execs, Rich Barton and Lloyd Frink. In 2006, Trulia was rolled out and in 2014

Zillow purchased Trulia for $3.5 billion. And in recent years, $7.5 million has been

invested in real estate tech companies. Now more than ever, real estate technology is

more than relevant, it is a necessity – there’s everything from buyer tools, to CRM to

marketing systems.

Let’s look at a few do’s and don’ts for investing in a post-recession technology era.

Use technology as a tool, not a toy.

The days of the mobile device as a novelty are long gone. It’s pretty clear that real

dollars are being invested in real tools to make acquisition, management and selling

real estate more streamlined.

Think that an old dog can’t learn new tricks. No

matter what your level of experience in real

estate investing, you’ll be left behind if at some

level your investing isn’t capitalizing on the

reach of technology.

DO

DON’T


Develop a mobile strategy.

It used to be that a static website presence was the norm for many real estate

investors. Today’s tools allow for a responsive online presence that works across the

spectrum of the online space – whether its smart phones, tablets or laptops.

Over think it and then ultimately ignore it. There are lots of ways to make your web

presence responsive. GTS.

Develop and Maintain a Social Media Strategy.

As powerful as networking is, the fact remains that you cannot be everywhere all of the

time. But your social media can keep you “out there” day and night generating leads.

We’re not talking about a facebook post here. The rubber hits the road when you imple-

ment a few key ingredients like how-to articles, video tutorials, interviews and testi-

monials, webinars and podcasts and market reports. Add value for your potential cus-

tomers, establish credibility and build business in a post recession tech era.

DO

DON’T

DO

Sou

rce:

fre

shw

ebte

ch.c

om


Reinvention is the name of the game. Technology won’t stop, and the market and

�nance won’t remain static, and neither should you. To avoid obsolescence in a fast

moving real estate economy, we leave you with four important strategies.

1. Read as much as you can. The interweb is loaded with learning

opportunities to keep yourself in the know.

2. Get to know the experts. No matter where you invest, there are others who

know more than you do. Tap into their knowledge. Take them lunch. Go where

the experts go and learn what they learn. They got to be experts by learning

and engaging in Strategy #1. Get some of that.

3. Take time to explore new stuff. That doesn’t mean suddenly deciding that

mobile home parks are your new playground after reading one blog post. It

means exploring and opening your experiences to new things. And, if viable

for you and your investment goals, dig deeper.

4. Go to industry events. People gather to share information. Big conferences

and learning events are invaluable for boosting your knowledge and your

network.

Post recession investing is rife with opportunities. New or seasoned investor – it

doesn’t matter. The key to longevity and success, no matter how stormy the water, is

to continually reinvent oneself - improvise, adapt and overcome.

THE JOURNEY OF CONNECTED INVESTORS

Back when Facebook was just for Harvard, Myspace ruled the world, and Linkedin had no traction, Connected Investors was conceived.

During the dawn of social media a team of young real estate investors came together and founded the site you just signed up for.

One of those young guys was me. I was a kid, and back then social media was primarily a kid’s ‘toy.’ – However, we saw the potential for business.

So we went all in and founded Connected Investors, a social site for real estate investing. We really didn’t anticipate that social media would reshape the business world.

But, everyone knows real estate is a relationship business, so it made perfect sense the industry needed more than a forum but a true social site ensuring investors could connect to increase deal �ow.

The idea was solid and we were 5 years ahead of the social era.

The next hurdle was the big one…. One I am sure you’ve come across.

“I have a great idea. Now how do we come up with the money to build the platform?”

Can you guess how we did it?

We funded the Connected Investors network by �ipping properties. The model was simple.

- Flip a deal, build a feature

- Flip a deal build a feature

- Flip a deal build a feature…

Once the site was up, we used the site to �nd the deals, and the people to sell them to! This accelerated the development.

That is the beautiful thing about real estate, you can use it as a catalyst to fund other dreams.

Everything was going great until…. THE CRASH!

Real estate was no longer in vogue. The industry was in shambles and people were running away from deals when they should have been taking full advantage of the market.

You know what Warren Buffet says.

“Buy when others of selling, and sell when others are buying.”

THE TRUE STORY ABOUT CONNECTED INVESTORSIt was a really hard time for Connected Investors – it seemed no one was buying. On top of that, our entire real estate operation was shaken up.

So what did we do?

We doubled down and built a Marketplace inside Cibto give everyone access to many undervalued and distressed properties that were created during the crash.

The smart investors came out of the woodwork, to buy properties in our marketplace!

This was just enough to keep momentum & stabilize our real estate investing business.

I have to admit…

It wasn’t just our insight that kept the lights on, many Connected Investors reached out to us wanting to help. I can safely say if it wasn’t for our members I don’t know where we would be.

I am telling you all this for a few important reasons.

I wanted you to realize:

- This is when YOU enter the story.

- Where we came from and that nothing worth having comes easy.

- We know we would not be here without our members, and we appreciate you.

You can �nd some of the world’s most amazing people inside Connected Investors. Many members have become good friends of mine, and people I will do business with for the rest of my life.

This site is 100% what you make of it.

Givers gain. And it’s the real relationships in this industry that provide a safety net against failing; I am living proof of that.

Thank you for becoming a Connected Investor. My goal is that you’ll �nd huge successes in your real estate investments.

Perhaps we will get to meet one day,

Ross HamiltonCEO of Connected Investors

Back when Facebook was just for Harvard, Myspace ruled the world, and Linkedin had no traction, Connected Investors was conceived.

During the dawn of social media a team of young real estate investors came together and founded the site you just signed up for.

One of those young guys was me. I was a kid, and back then social media was primarily a kid’s ‘toy.’ – However, we saw the potential for business.

So we went all in and founded Connected Investors, a social site for real estate investing. We really didn’t anticipate that social media would reshape the business world.

But, everyone knows real estate is a relationship business, so it made perfect sense the industry needed more than a forum but a true social site ensuring investors could connect to increase deal �ow.

The idea was solid and we were 5 years ahead of the social era.

The next hurdle was the big one…. One I am sure you’ve come across.

“I have a great idea. Now how do we come up with the money to build the platform?”

Can you guess how we did it?

We funded the Connected Investors network by �ipping properties. The model was simple.

- Flip a deal, build a feature

- Flip a deal build a feature

- Flip a deal build a feature…

Once the site was up, we used the site to �nd the deals, and the people to sell them to! This accelerated the development.

That is the beautiful thing about real estate, you can use it as a catalyst to fund other dreams.

Everything was going great until…. THE CRASH!

Real estate was no longer in vogue. The industry was in shambles and people were running away from deals when they should have been taking full advantage of the market.

You know what Warren Buffet says.

“Buy when others of selling, and sell when others are buying.”

THE JOURNEY OF CONNECTED INVESTORS

It was a really hard time for Connected Investors – it seemed no one was buying. On top of that, our entire real estate operation was shaken up.

So what did we do?

We doubled down and built a Marketplace inside Cibto give everyone access to many undervalued and distressed properties that were created during the crash.

The smart investors came out of the woodwork, to buy properties in our marketplace!

This was just enough to keep momentum & stabilize our real estate investing business.

I have to admit…

It wasn’t just our insight that kept the lights on, many Connected Investors reached out to us wanting to help. I can safely say if it wasn’t for our members I don’t know where we would be.

I am telling you all this for a few important reasons.

I wanted you to realize:

- This is when YOU enter the story.

- Where we came from and that nothing worth having comes easy.

- We know we would not be here without our members, and we appreciate you.

You can �nd some of the world’s most amazing people inside Connected Investors. Many members have become good friends of mine, and people I will do business with for the rest of my life.

This site is 100% what you make of it.

Givers gain. And it’s the real relationships in this industry that provide a safety net against failing; I am living proof of that.

Thank you for becoming a Connected Investor. My goal is that you’ll �nd huge successes in your real estate investments.

Perhaps we will get to meet one day,

Ross HamiltonCEO of Connected Investors

"Connected investors is a fast-growing tech company in the real estate investment industry. Ci is always looking for strategic partners, connections to high volume property buyers, access to property inventory, and capital."

CONNECTED INVESTORS The Real Estate Investors Marketplace + Community

TO CONNECT:[email protected]

888-204-7501 x 111

http://connectedinvestors.com/content/our-team

THANKS FOR JOINING US!

Need funding to buy or re�nance an investment property?

Take the stress out of buying and re�nancing investment properties by receiving multiple offers from veri�ed private

and hard money lenders in a matter of minutes.

GET FUNDED »

https://ci.iljmp.com/9/hhndt

THE POST RECESSION SURVIVAL GUIDE - connectedinvestors.com · During the recession, values dropped...

Documents

Transcript of THE POST RECESSION SURVIVAL GUIDE - connectedinvestors.com · During the recession, values dropped...