How to Make Money Out of Thin Air including 5 Mega Money

Making Strategies for Today's Market

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SalesTeamLive Special Report
Making Money Out Of Thin Air

SALESTEAMLIVE SPECIAL REPORT:

Making Money Out of Thin Air
"Straight Talk On How Everyday
People Just Like You Are Making
Money In Real Estate… With No
Money… Even in Today's
Downturning Economy!"
Gary Boomershine here, creator of SalesTeamLive, the creative real estate
industry's top direct response marketer.
I'm fired up because, right now, there's no better place to make money than in
creative real estate.
Why, you ask?
Because America is on sale…
That's right - America's on sale and real estate investors who know what they're
doing are building incredible long-term wealth by striking while the iron is hot.
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Making Money Out Of Thin Air
There are two main ways to make money right now. The first method I really
love - it is to target "High Equity" property owners. That means that the owners
are usually loaded, they owe little to nothing on the property, and they have some
kind of problem with the property that makes them want to sell it. That's a home
run.
The second method is called "No Equity." It's totally different how you approach
these. No equity means it's leveraged, and if you look at all the pre-foreclosures
and the foreclosures right now in the United States, they are almost all totally
over-leveraged. There is no equity. But, what we creative real estate investors
do is we go and turn the "No" into a "Yes." We create equity.
To take advantage of these two methods of investing, there is what I call "Five
Mega Money Making Strategies." These are specific investing strategies that
target one of these two types of creative real estate deals.
The number one best way to go make money out of thin air right now is what's
called going after free and clear properties. Free and clear are properties with
almost no mortgage - either little mortgage or no mortgage. Here's a quick little
statistic that will shock you.
Get this, you ready?
Twenty five million properties in the United States right now are
free and clear.
Twenty five million properties! That's a lot of properties, right? Two out of three
homeowners who are sixty five years or older, have no mortgage. That means
they are free and clear…
You can make absolute huge amounts of money if you know how to work those
deals. The basic premise is to turn the owner of the free and clear property in to
a bank, have them carry a note with terms favorable to you, and then install a
tenant or lease-option buyer at a higher monthly payment than the one you owe
the original owner.
There's lots to it, and we have training around free and clear investing if you'd
like to learn more.
The second money making strategy, after free and clear, is wholesaling. You
need no money, you can be totally bankrupt, you can be homeless, you can be
living in a box, and still make tons of money doing this. Now that's making
money out of thin air, right?
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Making Money Out Of Thin Air
Wholesaling is typically where you get a property under contract and then flip it to
another investor quickly, usually for a fee and usually so that the other investor
can fix it up and resell it for top dollar.
This is a very realistic scenario, and we see it everyday. I just talked to a
customer of ours a couple days ago, and she picked up a property just like this.
Here's how it might work.
Let's say the seller says, "Sure, $110,000, give me cash in thirty days and the
deal is yours." What you do is you get the property under contract with a
purchase agreement, and then you go find a wholesale buyer that really wants to
buy and possibly fix this property up. Where would you find a buyer like that?
Trust me - they are everywhere.
You basically say, "Hey, give me $10,000 and I will give you the contract." It's
called an "Assignment." Super easy, you can make money in one hour to three
hours of your time, and I've seen people make $10,000, $20,000, $50,000,
$150,000.
You can make tons of money in wholesaling.
We have a member named Ron, in Southern California. He made $800,000 on a
wholesaling deal in Southern California. The guy had a whole set of properties,
there were thirteen properties. He picked them up, assigned them, and made
and $800,000 contract. He got half up front, he got half when the deal closed.
Sweet deal!
Wholesaling is all about marketing - finding enough seller and buyers to match
them up and take a little piece of the action for your trouble.
It's really amazing - if you look around, everything is for sale. There are tons of
these deals. My favorite way to go after wholesale deals is to go after absentee
owners. These are typically landlords, either by force or by choice, who have
tons of equity and are sick and tired of landlording. They want to dump their
properties. That's a great one. We teach people how to do that, and we have
business partners who have the best wholesaling training on the planet.
Okay, so those are two of the five mega money making strategies. The third,
where I started and made my fortune, is going after pre-foreclosures. These are
people that are behind on their mortgage payments but have yet to be foreclosed
on.
We know that there are more people in pre-foreclosure now than ever in history.
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Making Money Out Of Thin Air
Right now there are around 2.8 million pre-foreclosures in the
country.
We talked about high equity, but these pre-foreclosures typically have no equity.
They are over-leveraged and we have to go do a short sale if we want to make
money on the transaction.
Short sales involve beating up the banks to get them to agree to a discounted
payoff of the property. I have done hundreds of these and made a fortune doing
it - I love nothing more than beating up banks!
How this works is I first get the property under contract at a discount. Let's say
the house is worth $300,000 and it's going to default because $300,000 is owed
on it. The bank is going to lose their shirt on this property and they need to
unload it. So I am going to put it under contract at a deep deep discount,
typically maybe $200,000. Depends on where we are in the country. I am going
to make an offer to the bank and explain to them why they should take a
discounted payment for this loan - I'll tell them that they will get this full payment
in a short timeframe and why this is good for them from an economic standpoint.
There is this whole process on how to get them to take the discounted short sale
payout, but that's the gist of it - it's really a numbers game.
You are going to go and make a short sale offer to the bank, and then you're
going to do some sales tactics that we all teach on how to negotiate with the
bank, then they are usually going to come back and tell you "No." Here's a little
sales tip for you - five "no's" equal a yes… ;)
A certain percentage of your offers will be accepted, and then you come in and
there are some techniques on how to make profit off of it. I won't go into that, but
there is plenty of training available for it.
We've got some of the best training with our partners on how to go do this. Let
me just say - people are making a fortune at this. It might take anywhere from
six weeks to three months to complete a transaction, but who cares? If you
made $100,000 and it took you a couple months and ten or twelve hours of work,
does it really matter?
One little note I should probably share with you really quickly. There is a
difference between a pre-foreclosure and a foreclosure. We will go through a
quick little timeline.
Here's a guy who has a nice little house. He owns a nice pretty house, and the
house is worth $200,000 and he owes $200,000. He can't make his mortgage
anymore. So he's making his mortgage, then all of a sudden, he stops paying.
He just stops. Typically after ninety days in the United States, this is called the
30-60-90 Day Late. They are late on their mortgage because they stopped
SalesTeamLive Special Report
Making Money Out Of Thin Air
paying. At a certain point in time, usually after about one hundred and twenty
days, the bank will file a Notice of Default, or a Lis Pendens in some states.
It depends on where you are in the country, but there is a certain point of time
where the bank is going to foreclose on that property. A pre-foreclosure usually
happens in this timeline before it goes to an auction or gets sold. At this point it
becomes a bank REO, which is short for 'Real Estate Owned'. REOs are the
fourth money making strategy in today's market.
REOs are awesome. The strategy works best in a bottomed out market, so you
can make money with REO's anywhere in the country, but it's absolutely
fabulous in a bottomed out market.
In California, 95% of all those foreclosures that go to auction actually go back to
the bank, and the numbers are similar in all other parts of the country. By the
way, here is something interesting:
Two thirds of all REOs are not listed on the market right now.
So it's a huge opportunity that is only getting bigger by the day.
The primary way to take advantage of REOs is to try and partner with a Realtor
in your area that specializes in moving these types of properties. Typically,
banks will work with specific realtors in specific areas to move all their REOs
quickly - remember, banks do not want to be in the business of owning
properties! You'll want to partner with these REO agents to get access to the
sweet deals before they get listed on the MLS - you can usually find some by
googling 'REO agent <insert your area>'.
To make partnering with you more attractive for the Realtor, tell them that you
work with all kinds of investors and that you can make all cash offers and can
close quick. Fast, certain closes are the hot button for most of the banks holding
REOs - in an environment where loans are hard to get, banks love it when you
can bring all cash and close the deal quickly. They will typically take less money
in exchange for a greater certainty of closing the deal.
Also, you can tell the Realtor that you do lots of marketing and can give them
free leads of deals that you can't work in exchange for helping you out with the
REOs. You need to assemble an all-star team of real estate professionals, and a
good Realtor is a definite need.
So - we've covered four of the five strategies, but I've saved one of the best for
last. The fifth strategy is probate, and it might sound a little like a downer, but
this is one that I absolutely love.
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Making Money Out Of Thin Air
Probate is when somebody dies and they have a will or no will. It goes through
the court process - on average in the States this is around twenty four months.
So for two years it sits in probate, and they need to unload the properties.
Simply put, probate is the legal process of liquidating an estate's assets after
debts and creditors have been satisfied. With probate property investing, you're
easily getting properties for $.50 - $.60 on the dollar. And there are many viable
options for maximizing your profits in the flip transactions that follow.
Probates are loaded with equity, and there are three times the
number of probates in the country as the number of preforeclosures.
There are over six million probates a year, and it is a totally untapped market.
You can make a fortune - the key is to learn how to find the probate listings in
your area and begin mailing to them as on a consistent basis.
So - I hope that you've enjoyed learning the basics behind the 5 mega moneymaking
strategies for today's market. Visit us a www.SalesTeamLive.com for
more information, and happy investing!SalesTeamLive Special Report
Making Money Out Of Thin Airmore information, and happy investing![Boomershine -
Moneyoutofthinair]
(Transcribed by ST [04/06/09])
©SalesTeamLive, LLC 1
Speaker1:
So, how do you make money of out thin air?
Speaker2:
You know, let's go ask Gary. Let's ask Boomer!
Speaker1:
Okay! He's always got some creative ideas.
Speaker2:
He's got all the answers, about how to make money out of thin air.
[Knocks on door]
Speaker2 cont:
You there?
Gary:
Yes.
Speaker2:
Got a question for you. How do you make money out of thin air these days?
Gary:
You got to be kidding. You're going to get me on camera?
Speaker2:
Yes.
Speaker3:
Come on Boomer, we want to know.
Gary:
Okay. Making money out of thin air. Seriously?
All:
Seriously.
Gary:
Okay. Making money out of thin air, my favorite topic.
Gary:
[Boomershine - Moneyoutofthinair]
(Transcribed by ST [04/06/09])
©SalesTeamLive, LLC 2
Will you do me a favor though? Will you just capture this? I need to remember.
Alright, making money out of thin air. There's no better place to do it then to create a
real estate. It is the ultimate way to make money. The reason is that everything in the
United States is for sale, especially right now. Let's just go through it. There are two
ways to make money out of thin air, and I will start with going after properties. You can
go after properties. The ones I really love are going after high equity. High equity,
okay? That means properties that are absolutely loaded, they owe nothing on the
property, and the property is worth $200,000 or $300,000. That's a home run.
That's called "High Equity." The second one is called "No Equity." It's totally different
how you approach these. No equity means it's leveraged, and if you look at all the
preforeclosures
and the foreclosures right now in the United States, they are almost all
totally over-leveraged. There is no equity. What we do, not as a real estate investor but
as a creative real estate investor, is we go and turn the "No" into a "Yes." We create
equity. Normally we do that through what is called a "Short Sale." That is where we get
the bank to take less than full payoff. The way I like to do it is to do a loan modification.
In the United States right now, there is what is called "Five Mega Money Making
Activities." They are mega money making strategies or activities.
I will go through that. Let's start with the high equity. The number one best way to go
make money out of thin air right now, is what's called going after the free and clear. Free
and clear are properties with almost no mortgage. Either little mortgage or no mortgage.
Here's a couple of quick little statistics. Get this, you ready? Twenty five million
properties in the United States right now are free and clear. Twenty five million
properties. That's a lot of properties, right? Two out of three homeowners who are sixty
five years or older, have no mortgage. They are free and clear.
Two out of three homeowners over sixty five own their properties free and clear. You
can make absolute huge amounts of money if you know how to work those deals. Of
course, we teach people how to do that, right? That's number one. The second money
making strategy, after high equity, is wholesaling. Now this is making money out of thin
air, right? You need no money, you can be totally bankrupt, you can be homeless, you
can be living in a box, and still make tons of money doing this. Wholesaling is typically
where you're getting a property, let's say it's worth $200,000. Let's say the seller owns
the property, they have almost no mortgage, and you get the seller to sell it to you for
$110,000. This is a very realistic scenario, we see it everyday.
I just talked to [? Jean Griswald ? [04:23] a couple days ago, and she picked up a
property just like this. Let's say the seller says, "Sure, $110,000, give me cash in thirty
days and the deal is yours." What you do is you get under contract with a purchase
agreement, and then you go find a wholesale buyer that really wants to buy and possibly
fix this property up. They are everywhere. You basically say, "Hey, give me $10,000
and I will give you the contract." It's called an "Assignment." Super easy, you can make
money in one hour to three hours of your time, and I've seen people make $10,000,
$20,000, $50,000, $150,000. You make tons of money in wholesaling. A little while ago
there was this guy, Ron, in Southern California. He made $800,000 on a wholesaling
[Boomershine - Moneyoutofthinair]
(Transcribed by ST [04/06/09])
©SalesTeamLive, LLC 3
deal in Southern California. The guy had a whole set of properties, there were thirteen
properties. He picked them up, assigned them, and made and $800,000 contract. He got
half up front, he got half when the deal closed.
Speaker2:
In California, here?
Gary:
Yeah, imagine that. Look around, everything is for sale. So those are the two. Those are
two of my favorite. There are tons of these deals. As you guys know, my favorite way to
go after these is going after absentee owners. These are typically landlords, either by
force or by choice, who have tons of equity and are sick and tired of land lording. They
want to dump their properties. That's a great one. We teach people how to do that. We
got business partners who have the best training on the planet. Okay, so those are the
two. The third, where I started, one of the ones that I love, is going after preforeclosures.
These are people that are in default.
We know that there are more people in pre-foreclosure now than ever in history. There
are tons and tons of these [? over loaders ? 06:21] properties. I think there was like 2.8
million of these properties in pre-foreclosure. Most of these over over-leveraged. We
talked about high equity. The pre-foreclosures are typically no equity. They are overleveraged
and we have to go do a short sale and take those properties out. I like that. I
have done hundreds of these and made a fortune doing it. So those are the two.
Questions so far?
Speaker1:
What do you do when the property is so leveraged? How do you work that?
Gary:
How do I do it? Well, I get it under contract and a discount. Let's say the house is worth
$300,000 and it's going to default. The bank is going to lose their shirt on this property
and they need to unload that. So I am going to put it under contract at a deep deep
discount, typically maybe $160,000. Depends on where we are in the country. Then I
am going to offer it to the bank, and there is this whole process. We got some of the best
training with our partners on how to go do this. People are making a fortune. It might
take anywhere from six weeks to three months, who cares. If you made $100,000 and it
took you a couple months and ten or twelve hours of work, who cares.
You are going to go and make a short sale offer to the bank, and then you're going to do
some sales tactics that we all teach on how to negotiate with the bank, and they are
usually going to come back and tell you "No." Five "no's" equal a yes. You have heard
me talk about that. They will accept the offer, and then you come in and there are some
techniques on how to make profit off of it. I won't go into that, but there is plenty of
training. So that is the third. One little note I should probably share with you really
quickly. There is a difference between a pre-foreclosure and a foreclosure. We will go
through the quick little timeline. Here's a guy who has a nice little house. Owns a nice
[Boomershine - Moneyoutofthinair]
(Transcribed by ST [04/06/09])
©SalesTeamLive, LLC 4
pretty house, and the house is worth $200,000 and he owes $200,000. He can't make his
mortgage anymore. So he's making his mortgage, then all of a sudden, he stops paying.
He just stops. Typically after ninety days in the United States, this is called the 30-60-90
Day Late. They are late on their mortgage because they stopped paying. At a certain
point in time, usually after about one hundred and twenty days, the bank will file a Notice
of Default, or a [inaudible 08:55].
It depends on where you are in the country, but there is a certain point of time where the
bank is going to foreclose on that property. A pre-foreclosure usually happens in this
timeline before it goes to an auction or gets sold. At this point it becomes a bank REO,
Real Estate Owned. This is one of the fourth money making strategies. The fourth
strategy is going after REO's. I love doing this. This works best in a bottomed out
market, so you can make money in REO's anywhere in the country, but it's absolutely
fabulous in a bottomed out market. We know in California there is a lot of those markets,
like Stockton, parts of Los Angeles, Oakland. You know, you went there.
Speaker2:
REO's are the foreclosures.
Gary:
Yes. So REO's are foreclosures, and pre-foreclosures are still owned by the
homeowners.
Speaker2:
The pre-foreclosure timeline in California is one hundred and eleven days.
Gary:
Yes, it is one hundred and eleven days. They have missed their payments and then goes
into default for ninety days, and then they get another twenty one days and then it goes to
auction. In California, 95% of all those foreclosures that go to auction actually go back
to the bank. The banks own then. By the way, here is something interesting. Two thirds
of all bank-owned properties right now, are not listed on the market. So it's a huge
opportunity. Those are the four. The fifth that I absolutely love, is probate. Probate is
typically another high equity deal. Probate is when somebody dies and they have a will
or no will.
It goes through the court process and on average in the States is twenty four months. So
two years it sits in probate, and they need to unload the properties. They are loaded with
equity, and there are three times the number of probates as the number of preforeclosures.
There are over six million probates a year. A totally untapped market. We
could make a fortune. You guys know that we teach all five of these money making
strategies, and worth with individual investors on which ones will work best in their
market, and then we do it for them. Cool? I will do the rest of the ten days worth of
training a little bit later today.
[Boomershine - Moneyoutofthinair]
(Transcribed by ST [04/06/09])
©SalesTeamLive, LLC 5
Speaker2:
Thank you.
Speaker1:
Thanks!