The E.D.G.E Conference

Thanks for the encouragement.And may the force be with you!Any strategies you want to share I will be more than Grateful to use.Thanks-Richard.

Hi chip and andrea we all appreciate the info everyone puts on the blogs and threads.

quick question for you chip or andrea. do i "have" to have a real estate license to buy and sell properties? and is it really that easy to "assign" properties? do you lease the homes you purchase? and do i have to have a guaranteed funds letter all the time i submit offers say to reo's or properties listed by realtors? have you ever used coastal funding?

Thank you in advance,
Alvaro in colorado

In our opinion it is better not to have a license. When you are licensed you have more restrictions and responsabilities. Neither of us have licenses, just basic education from Dean's training program and from other seminars.

When we assign properties we use 2 contracts. One to tie up the property from the current owner. The second is an assignment contract. An assignment contract is really a contract & fee to buy the original contract you locked up.

We currently only own two homes other than our primary residence. We are renting both of them. They are not rent to owns, just tradtional rentals.

As for making offers to REO's that often depends on the bank and the broker. They usually state that they need this to present the offer. We have a mortgage broker that did a basic letter for us that we can change the address on. Additionally, if they require an earnest check we send them a copy of the pre-approval letter and a copy of the check (we always keep the money until we have a full contract and a game plan).

We do not know what you mean by coastal financing so probably no, but often times things have varying names.

Hope this helps! Keep powering moving forward.

Yea, I was doling them out based on the replies on here because we have a list of names, but not DG.com usernames to go with it, so if you are missing your badge(s) it is because:
1) You haven't posted in this thread that you were there.
2) Someone hasn't seen your post yes and added it.

ICs: As always, feel free to assign any missing badges, especially these.

Thank you so much for the kind words. You know it was weird but something about this weekend just made me a new person. I hope everyone felt that way. I actually was bummed out Monday when I had to go home and split from everyone...sort of a withdrawl from the "high" I was on all weekend I guess. Positivity and action are contageous and I am so grateful to have met and learned something special from each and every one of you! Frankly I'm just too lazy to list names but you all are awesome individuals! Thanks!

Elena- yeah I've been posting like a telephone pole!... I kid I kid... Yes we did indeed have some knee slappers at dinner! I was crying I was laughing so hard! poor Terry. It was a pleasure to meet you thanks for your support!

Anita-thanks for starting the post!! You're a bit of allright I say

This was by far the best conference I have ever been to! I learned lots and met a lot of great people. Looking forward to E.D.G.E.2010

I sure will be glad when i get contacted.

I haven't received my book yet, but i am learning a lot from all the exchanges that's going on. We are going on a family vacation to New York in August and i can extend my stay there if there is going to be another conference. BUT, can you guys come to Hawaii on a vacation and have a conference here? Okay, I am serious, when is the next conference, and where is it going to be? I really would like to attend it, if it is open to newbies like me.

Hi Everyone, my name is Nathan Biggar. I have not spoke up on this site before and am just realizing how great the conversations are.

If you were at the event last weekend, you saw me speak about getting financial support from local banks and also individuals. In a time where large banks are not lending money to investors without at least 25% down, you need to be creative. I have had a number of people contact me for some quick tips...here is #1.

1) Find a local bank ("mom and pop bank" as some say with less than 5 branches) and develop a relationship with a VP or someone with authority to issue business loans. These are banks that are not held to the extraordinary lending rules right now that the ones you hear about on TV are (i.e. Wells, BoA, etc.). Don't get me wrong, they have stricter rules than 2 years ago, but they will work with you if the deal makes sense. Tell them you invest in properties already discounted 20% - 50%+ off market value (not tax value)...then tell them you want a loan of 80% of that already discounted price. They might say no at first, but once you develop the relationship with them (send them cookies...ha ha) and show that you are a serious investor...they will be smart to come around.

If anyone is interested in how to get the other 20%...I'll give you my Super Tip #2...

Keep up the great work everyone...great meeting a bunch of you in Phoenix last weekend! What a treat that was, huh?

My email address is [email protected] if you have any questions you don't want to address with the group.

NB

Thanks Nathan! I loved all your great tips at the conference!

It was great to meet you and all of the long-time REI friends who I'd never seen before. lol

Matt L., Anita, Lena, Laura, Darren, Lloyd, (and there were SO many others), but I feel like those are the core people that have kept me strong for the past year. (And Dean, of course, my hero!)

Vaughn and Matt, Nathan, you guys are awesome. I hope to meet up with you in the near future for networking in our area. It was cool to find someone so close to home.

I hate to start naming more because I know I'll forget someone. But I can picture everyone's face and ALL of them will keep me motivated, for sure, and coming back next time to see where everyone is at in their REI!

I think this was the start of something bigger than anyone imagined!

Rina

Tell us more...Tell us more...

Now you have us on the EDGE

Give us tip #2

See you next Wednesday

Thanks for the tip Nathan!

It was great to meet you Mr " well I'm a nice guy!!" hehe Your experiences were very encouraging to hear about. I really look forward to keeping in touch with you. I'm glad that you have found the website and are participating! We all appreciate your help! I am currently only employed by my rental income and money I have saved to live on from my previous job, and therefore dont have sufficient income in the banks' eyes. Since I have gotten back from Deans conference I have talked to a few major banks to see about opening a Home Equity Line of Credit (HELOC) and have basically been told I need to satisfy their rules to qualify. I am trying to pull the equity I have from my first rental property short sale deal I completed in December. I contacted a realtor and she gave me some comps of the neighborhood. The house is paied for free and clear and in my name. I will take your suggestion and try approaching a smaller bank about the HELOC. Does anyone know if a mortgage broker would be an option in my situation? Thanks! Go Vikings

Can't just leave us hanging after tip 1...Tip 2 is always needed if there is more.

We have used Prime Mortgage north of the cities. They have been helpful with financing. Depending on the property they may be able to help you. It is worth a try:

Dana Kara
Processor
The Scherber Elite, Excellence in Mortgage Solutions
Prime Mortgage, a Division of the Business Bank
[email protected]
Direct 763-222-1505
Fax 952-377-2822
www.scherberelite.com

It is great to read about everyone's experience from the Edge event. It has been a week since the event and I can not believe I am still motivated beyong belief! I have made offers, new contacts and feel incredibly inspired. I love the new found energy and know everyday I am getting closer to financial freedom. Good luck to all in closing the next deal!

Thanks for the feedback everyone. JK on the Drums

Tip #2: Advertise to Friends (local or online) and Family to come up with the other 20% on your first couple deals. You are not selling soap and candles here...you are selling yourself and the raw numbers. If you get into doing multiple deals at once or very large deals then you'll need other sources, but by then you will have a portfolio of success to attract money from all over.

I'll use my last deal as an example. I bought an REO for $85,000 that had comps in the area from $155,000 - $175,000. It was a mess and needed serious attention before getting anywhere near the market again. My rehab estimate was $35,000...but that was irrelevant if I could not secure the deal.

I took the deal to the bank I outlined in Tip #1 and had $68,000 (80%) ready to be wired in 3 days (like I said...the small banks can move quick). That left me $17,000 + about $3,000 in closing costs for a total of $20,000 to get to the closing table, and then another $20,000 for the rehab in the first month...I knew I had at least 90 days to worry about the final $15,000...that is Tip #4 .

First - You don't have to get the whole $40,000 from 1 person. Break it up into 5 or 6 people. I never ask for more than $15,000 from any one person.

Second - Talk about yourself and your integrity...after all, if you are going to cheat people or be shady about things, you will never get anywhere and might as well not even start. You need to show your passion and let them know that your word and reputation are your biggest assets...why would you trash that? Put a 1 page guarantee together telling them that when you sell the place (or refi to pull the after-rehab equity out) that you will not pay yourself a dime until their P & I is paid back in full (email me if you want an example). I don't care if it is your uncle or best friend or twin brother...it is professional to lay out the plan in writing and both sign it...no matter what. If nothing else, just so your CPA does not throw a file at you for having lousy records .

Third - Show the numbers. After all, no matter how bad the market is, you are buying a house for less than 60% of the lowest comp in the area and making $35,000 in improvements. You could put a complete rehab back on the market for 85% of the nearest comp...and still make money. Remember in the last paragraph where you are signing your name to the statement with your word that they are first in line for their money? What are the chances that you sell this place and make no money? Pretty slim.

BIG Question??? How much interest do you pay and how do you calculate it?

I can give you a simple map to follow, but this is already 3 times as long as I planned. I'll cover that in Tip #3.

If this stuff is helpful, let me know. If I am preaching to the choir and boring you off your chair...let me know that in a private email

[email protected]

More later...

Nathan

Aside from being the BEST looking coach at the event you STILL have so many great tips for us. Keep on preaching you aren't boring us one bit, we're hanging on to every word!!! Don't forget to email me that list of note buyers puleeeeeease!

Thank you,

[email protected]

That's so funny that you said that because I felt the same way on Monday. I was having major withdrawls from our REI 'high'. Glad to hear I'm not the only one, I thought I was over reacting or just plain nuts! Whew!!
Yeah, Terry was such a good sport, but I guess with his last name he has to be... Ha! I kid, I kid... Terry you da man!
Keep posting, it's great to see your enthusiasm's still goin strong!

Thank-you all for posting for those of us that did not make it to the conference. Nathan, thank-you for sharing that wealth of wisdom aquire form working in the banking system it gives me a different set of eyes to look at real estate through. I will email you for that example guarantee letter.

Hello Rina !

I'm new to this community, I asked before & didn't get an answer yet
what is the inner circle ?

Thank you,

Orit,

From Naples FL

So great to see everyone still carrying on the enthusiasm from the weekend! Nathan - tip #2- incredible post. And so timely! I came home from Phoenix with one deal accepted and another pending. In order to keep deal #2 a possibility - I decided to fund deal #1 with cash. Knowing we can rehab it and flip within 3 months -I have put up some of my own money, used a credit card with 0% financing for a year, and then went to family and friends for the rest. I must have done something right because they were all happy to jump on board and I close on the 15th! One of the two ideas I cam home most excited about after the weekend is probate sales, and thats what this house is but I didnt know it when I bid on it. Pretty cool! The other idea is the notes. I cant wait to dig into that. There just doesnt seem to be enough time in the day to explore everything!

Hello,

I was looking for the pictures from the Gain the Edge event on the website. Does anyone know where they are located or when they may be posted? Thanks

Hello,

Does anyone know where the Edge conference power point slides have been posted? Is there a special link for Edge attendees? Please let me know. Thanks. ~ Believe and achieve

Hi this is chad stephens, I just saw the post about the badges and wanted to let the admin know that I was there. And just wanted to repeat what everyone has been saying, that the event was Awesome!

I have really been thinking about life,It does not matter... If you think about it. I only throw this out there for you! REI is cool, I like the idea! My point is...REI is not going to save the world...The people are? I am not saying to not get that deal done...GET THAT DEAL DONE! Remember we are the people...There is a balance.

Randy/2for1

OK, I'm back to finish my thoughts from the last post. My daughter had a dance competition all day and I am beat...tough work for us dads you know!

So now assume (picking up from tip #2) you have a group of 3-10 people you know who have $5,000 - $15,000 they are willing to loan to you for the project(s) you are working on. You have clearly defined for them what you are going to do with their money and why the risk is relatively small. In my case I like rehabs, but if you need some quick cash to secure a property before you can assign it or so you can get a sandwich lease going (like Greg Murphy has been so successful with), this would be a good route to go for those as well.

2-3 years ago when you could throw a dart and hit a mutual fund that was paying 12-15%, my borrowing technique would not have worked as well. But right now, if you gave someone $10,000 and said that they needed to guarantee they would make money in the market over the next 6 months, where would they put it? In a CD...getting 4% if they were lucky...but not going backwards either.

I pay friends and relatives 8% - 15% depending on the circumstances. Again, the perceived risk to an outsider is very high, but in reality, when buying properties like Graziosians do, the risk of selling a place for less than you bought it is very low.

I base the rate on how flexible they are. If they can get me a check in 7 days and I do not need to pay them back until the day after I resell the place...I pay 15%. If they need 30 days to get me the money and they need it back in 120 days regardless of where I'm at with the project...I pay 8%. Any combination of these things pays something in the middle. Your call.

You may be thinking I'm nuts to pay 15% APR. They may think so too. But we are talking about a short time frame here...ideally, less than 6 months. When the time line is short, CASH IS KING...the rate does not matter as much. So if you have a killer deal in front of you that you need quick cash for and you can pay a friend or relative 15% on their money in this economy...I call that a Win/Win.

If you have a project that you feel could make you $20,000 in the next 4 months, but you need $40,000 in cash now to make it happen...pay the 15%. If you don't attract investors, you lose the deal...plain and simple. So they WIN with a 15% return...here is how you WIN.

A 15% APR on $10,000 is about $510 over 4 months (compounded monthly). So then $40,000 would be about $2,040 over 4 months.

I don't know about you, but I'd rather pay out 10% of my profit on this deal to investors than not even get in the deal in the first place. You took their $40,000 and turned it into $60,000 in 4 months...any idea what that return is? For those of you that said 128%...you are right. That is how YOU WIN.

If you have a financial calculator, you can follow the 15% calculation by entering: N=4, I=15, PV=(10,000), PMT=0, Solve for FV...you get $10,509.45.

If you don't have one, they range from $40 - $100 at any office supply store...get one so that you can have the confidence to work the numbers on your deals. Once you know how to quickly calculate interest rates and returns you will be surprised how often you will be reaching for it...I use mine almost daily.

Another long one for you, but when it comes to numbers, the profit is in the details.

Nathan Biggar (from lovely Minnesota...you betchya)

Here's the original thread dgadmin posted on the Inner Circle.
http://www.deangraziosi.com/node/3653

Hope that helps.

Rina

I am going to get one of those calculators. This is how I was doing it....
10,000 x 15% =1500.00, divided by 365 days/year = 4.11 per day, x 120 days equals 493.20. Close, but a little under your calculation. I just used your great agreement forms with my friends and family - thanks! I am paying 15% with a promise to pay back within 3-6 months. It was actually incredibly easy to round up the cash when I showed them my numbers! And as you say - its a win/win for everyone, and I LOVE helping family and friends earn a great return on their money! Thanks for all your help!

Glad to hear it worked out for you! Good luck with those deals!

NB