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How To Pocket Up To $33,438 A Month Flipping Houses In Your Spare Time

Without Cash Or Credit

3 Regular Guys Finally Reveal Their Simple 31-Day Plan

By Sue Reddy Silverman

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Introduction

Now is the best time to invest in Real Estate. According to our experts, we will never have an

opportunity like this again. The market had tanked but it‟s starting to rise again now. It is going

to stabilize and turn around in the right direction. And right now, America is truly on sale.

Don‟t get left out of the game. Millions of dollars are being made in Real Estate in a variety of

ways, including buying heavily discounted HUD homes and selling them cheap; buying short

sales and flipping them and rehabbing homes. You can even make money just by connecting

buyers and sellers doing no real Real Estate work at all.

Find out how to make your millions in this new report “How To Pocket Up To $33,438 A Month

Flipping Houses In Your Spare Time Without Cash Or Credit. 3 Regular Guys Finally Reveal

Their Simple 31-Day Plan.”

We got up-close-and-personal with three „regular guys‟ who turned their interest in Real Estate

into multimillion-dollar businesses. And they told us exactly how they did it too.

These three masters reveal how they got started investing in Real Estate, what their primary

revenue pillars are, the Number 1 mistake new investors make, how they find buyers and sellers,

what their top marketing strategies are and how to make the really big bucks in Real Estate in a

very short time.

Their stories will inspire you; some will amuse you, but mostly they can lead you on a new and

faster path to prosperity.

We are pleased to share this informative report with you.

The Net Income Real Estate Team

www.NetIncomeRealEstate.com

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Expert Real Estate Investing Professionals

Cody Sperber

Cody Sperber is considered one of the nation's leading

real estate investors by news and media sources alike,

earning him the nickname the "Clever Investor." Cody's

real estate companies have bought and sold hundreds of

millions in properties, allowing him to generate 7-figure

profits year after year.

Cody Sperber is a true transactional engineer who has

closed a wide range of creative real estate deals, including

wholesales, short sales, multi-unit, subject to, lease

options and even his own proprietary investing strategy --

the Reverse Short Sale

(http://reverseshortsalesecret.com/). Cody is probably

best known as a master marketer who can generate buyer

and seller leads at will.

Cody is the founder and CEO of Clever Investor

(http://www.cleverinvestor.com/) one of the industry‟s

premier providers of quality real estate education and

investing tools. Like his real estate businesses, Clever

Investor has quickly grown into a thriving company with

a strong reputation of integrity and customer satisfaction.

Before real estate Cody served time in the U.S. Navy. He

attended Arizona State University where he graduated

Magna Cum Laude with a degree in Finance. Cody is now

happily married to his best friend Shannon and together

they have two beautiful children, Hudson and Brynlee.

Rob Swanson

It was well over a decade ago now that I started flipping

houses full-time. I guess that makes me a veteran;

especially since I've made money on just about every

kind of deal you can think of and almost never use my

own cash or credit. Shortly after I got started as a real

estate investor, I made my first $42,000 in a single

month. I see a lot of people who could do the same thing

but they get paralyzed by fear and never put in the little

effort it takes to learn a couple little secrets that make all

the difference. Then it wasn't long before I hit my first

six-figure month, making $250,000.

My wife tells me I'm a natural born teach, which is a big

help since I hire people that I only pay when they flip

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houses for me, so being able to teach and train my team

is pretty important. It's also handy when I show real

estate investors how I run my business because I like to

show people how you can copy my systems and use the

same tricks, tools and resources I use to make money.

I've been interviewed by CNBC, Forbes Magazine, The

Wall Street Journal, Business 2.0 and other local and

national media about real estate investing. After the most

recent crash, I put together a $10,000,000 (Ten Million

Dollar) real estate fund using none of my own money.

So yeah, if you haven't figured it out, I think right now is

a pretty darn good time to be a real estate investor.

On a personal note, I believe business should exist to

create "lifestyle" and residual passive income. That's

why I run my real estate investing business very

differently than many people. The truth is, the way I run

things is a lot more profitable than most even though I

work a lot less.

Life is good and real estate investing made it that way.

Join me for an upcoming training webinar and see for

yourself. Go here http://www.FlipCashDeals.com

Josh Cantwell

A native of Northeast Ohio, Josh Cantwell graduated

from Baldwin Wallace College in 1998 with a Major in

Business Administration and a Minor in

Communications. Although a full-time student and

college athlete, Josh was already driven to succeed in his

career. After graduation he obtained his Series 6, 63, 66

and life and health insurance licenses, and worked as a

Financial Advisor from 1999-2004.

In 2004, Josh ventured out on his own and started

investing in real estate full time. He was able to combine

his knowledge of Financial Investing with real estate to

create a very successful business, which quickly grew

and he began training and teaching apprentice partners

and students. He began Strategic Real Estate Coach in

2007, and since then has been involved in wholesale,

rehab, rental, foreclosure, pre-foreclosure and short sale

transactions, and taught thousands of investors how to

replicate his success. Josh has vast knowledge and

experience in helping coaching clients, mentor students

and apprentice partners from across the U.S. in finding,

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structuring, negotiating and closing various types of

transactions for a profit.

He has bought and sold more than 600 properties in 30

states, and currently holds a robust rental portfolio of

cash-flowing properties. He is the founder of Sharp

Concepts Realty, a real estate brokerage based in

Cleveland, Ohio. Josh lives in Strongsville, Ohio with

his wife and three children.

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How To Pocket Up To $33,438 A Month Flipping Houses In Your Spare Time

Without Cash Or Credit

3 Regular Guys Finally Reveal Their Simple 31-Day Plan

Cody Sperber

www.cleverinvestor.com

Interviewer: We are here with Cody Sperber, the founder and CEO of Clever Investor, talking

about real estate investing. Cody, what's your background? How did you get

started in real estate investing?

Cody: Well, I started in 2004 and I probably started like a lot of people at that time, just

seeing what was going on in the local market. I was reading books and just trying

to kind of figure out a way. I was in college at the time. I just got out of the

military, didn't really know what I wanted to be when I grew up. My major in

college was finance, and I was getting pushed by my dad to just go get a corporate

job. You know, eventually, hopefully, becoming a CFO of some company.

In 2004, I had a buddy of mine who was a good friend, amazing guy, you know,

super-nice, really just a normal guy. He had a friend who talked him into

investing into a property and he flipped the house and made over $80,000 in less

than 30 days.

I remember, we went to lunch and he was telling me this story and I was

completely floored because my friend . . . Let's just say he wasn't the sharpest tool

in the shed. You know, he was just sort of an average guy and he said he barely

did any work and barely took on any risk and he flipped this property and he

made over 80 grand, and I was thinking to myself, "$80,000 would change my

entire world." I couldn't believe what he did.

I just kind of, right then and there, made the decision that I've got figure out what

he did because if he could do it, I knew I could do it. That's how the journey

began. For the first year, I did what most people do. I went to seminars. I bought

books and tapes. I was like the book and tape collector of the year. I mean, I

probably invested more in books and tapes than anybody I knew, you know,

borrowing money from my dad just to buy courses. I felt like I was smart enough

and I had enough energy that I really didn't need anybody else. I could just do the

courses, follow what they said and it would all magically fall into place and I

would start making money and printing it out like an ATM, like they told me

when I was at the seminar.

For my first year, year and a half, I tried the business and I just did it all alone. It

was a really big struggle. I didn't have a lot of bills, and I lived in my girlfriend‟s

house at the time, who is now my wife. We had a really small little house that her

parents actually paid for. We didn't have any rent and, thank God, they were

helping us out because I wasn't making any money that first year. It was tough.

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Interviewer: How did you turn that around?

Cody: I actually didn't turn it around. It actually got to a point where I quit and I got a

job. It was kind of a sad day at our house because, you know, you start off with

big hopes and dreams and a lot of energy and you hit roadblock after roadblock

and, all of a sudden, you start second-guessing your decisions. I got to a point

where I was so broke and there didn't seem to be any light at the end of the tunnel

that I just quit. I went and got a job as a bookkeeper for a real estate developer,

which was the closest thing I could find to staying in the business.

For the first three months, I sat behind a desk. I got carpal tunnel syndrome. I

became a hunchback that never saw the light. I became pasty white. I was a

bookkeeper nerd. You know, nothing against bookkeepers but I just was behind a

desk in a cubicle, part of the machine. You know? And he made all the money.

He drove a Mercedes and always wore thousand-dollar suits and was always

bragging about how much money he made, and I was the guy who quit and

worked for him.

Every day, I would come home and I would complain. I would find more excuses

during that time to not go to work than to go to work. I would take hour-and-a-

half-long lunch breaks when his back was turned. I kind of resented him because

he was making all this money and somewhere deep inside I felt kind of like a

quitter. That just wasn't my personality type. You know, you come home, you

complain and thank God for a good woman in your life because you get to a point

where you complain enough and she looks at you and smacks you in the back of

the head and tells you to shut up and quit being a baby and do something about it.

"Don't sit here and complain every day to me. Do something about it."

Right at that moment, I had a friend of mine named Zack. He came to me and he

said, "Hey, Cody, I know you love real estate. You've got this passion for real

estate and I know you quit, but I met this group, and I really think you should

come and check this group out. It's unlike anything I've ever seen." I at first said,

"No." He was persistent, thank God. He ended up going behind my back, talking

to my girlfriend and he said, "Look. I'm going to take Cody to San Francisco to

meet this group, and I promise you he's going to come back a different person."

Finally, I just said, "You know what? I've never been to San Francisco. I might as

well just go on a vacation. That will be fun, going out with my friend." We went

to this seminar. It was put on by a guy named Jack Miller, who has recently

passed away. But we walked into that room, and I instantly knew that this group

was different. Half the people in the room were as old as my grandpa, you know,

and I looked around the room and there were more so-called gurus sitting in the

audience frantically taking notes than I've ever seen at a seminar where the gurus

were selling stuff.

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You could just kind of sense something was different about this group. There

were about 300 people in the room. During the breaks at a normal seminar,

everybody kind of networks really badly. You know, they trade business cards

and they talk about things that aren't really all that important. Normally, it's all

about me, me, me, me and how can you help me and my business but they were

different. They were giving. They were open. They shared hilarious stories of

their investing adventures along the way. I singled out a guy there - his name was

Lyle - who eventually became one of my first mentors. I bought Lyle a beer, and I

started talking to him, and one thing led to another.

I came back from that seminar a different person. It was the first time I really felt

I had a supporting team and system in place that I was recharged, re-energized,

and I really believed for the first time that I could do it.

Interviewer: So, then what happened?

Cody: Well, I came home and I got to work. You know, I took some of the training and

stuff that I learned at the seminar. I called up some of the people that I met at the

seminar and I started doing something that I didn't do previously. I started relying

on my power team a lot more to help me work the business and get my business

systems up and running than I would have before. Before, I was too - what's the

right word - young, naïve and hardheaded to listen to what other people who have

blazed the trail ahead of me, what their advice was. I felt like I could do it all in

my own. This time, I came in with an open heart and an open mind and I just said

to myself, you know, if they're willing to show me the steps and the system that

they use to become wealthy, then I was not going to try and do it my way

anymore. I was not going to reinvent the wheel. I was just going to listen to what

they had to say and mirror what they told me to do.

I got to work and started building my power team, started putting out marketing

the way that Lyle was showing me how to put out marketing. I started getting

seller leads in the door and using my power team to help me convert those leads

into deals. I was starting to do a deal here, a deal there, nothing super consistent.

One day, I met a guy who sat me down. He was somebody here locally in

Arizona. His name was Matt. He sat me down. I met him at a networking event.

We were sitting there and he pulled out a napkin and he penciled out the

wholesaling model on a napkin. I remember thinking to myself, "Wow, you really

don't need any money to flip a house, like zero dollars." And I thought to myself,

"That's where I am. I have zero dollars. That's what I need." For the first time, I

understood the wholesaling model, and that's when I really hit the ground

running. I started focusing 100%, because of Lyle's help, on my marketing and I

started using the wholesaling strategy to lock deals up and sell them without any

risk involved.

So, pretty much, I became a full-time wholesaler at that point but I was still

working my 9-to-5 job. So, I was doing this on the side as much as I could. If I

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made $2,000, $3,000 or $4,000 on a deal, that was almost as much is I would

make at my other job working 9-to-5, 50, 60 hours a week. I always told myself,

if I ever got to a point where I made more money on my part-time wholesaling gig

as I did in my full-time job, I would quit my full-time job, but it had to be

consistent for three months. I wanted 90 days of consistency.

Well, I pretty much got to that point about 3 to 4 months after I got back from that

seminar and, one day, I did something that I had no idea what it even was. It was

called "a short sale." The market was just starting to turn here in Arizona, and I

decided that I was going to try this thing called "a short sale." I didn't even know

what it was, but there was a property that was overleveraged, even though the

market was still good at the time. It was overleveraged and I was able to flip the

short sale to an all-cash buyer, almost just like a wholesaling deal, and I made

$40,000 on the deal and I quit my job that day and I never looked back.

Interviewer: Were those the two areas that you focus on now, wholesaling and short sales?

Cody: Not anymore, but I still do a lot of different investing techniques, depending on

the seller's motivation and the type of property I'm buying and what my current

financial goals are.

After I did my first short sale and I quit my job, I basically didn't do another short

sale again for a few years because the market wasn't ready for it. It was kind of

just a random short sale fluke that I got into and, to be honest, I didn't even know

I was doing a short sale at the time or that it was called "a short sale." I just knew

that the homeowners were upside down and I called the bank and the bank told

me that if I offered this amount, they would sell me the property.

I just started wholesaling pretty much full time, and I got better and better and

better at it. I would wholesale other wholesalers' properties. I would wholesale

condo conversions. I would go and network with local area developers who were

buying apartments and converting them to condos, and I would get their inventory

and I would wholesale that out from my cash buyer list, and I became an

extremely good marketer. Almost 95% of my day was spent on becoming a good

marketer. So, I taught myself online marketing. I taught myself search engine

optimization. I taught myself about marketing funnels and online networking in

its, back then, prehistoric phases, you know, before LinkedIn, Facebook and all

that stuff. We were on message boards. I just got really good on branding myself

online.

Even though I wasn't the biggest wholesaler in Arizona, it looked, from an online

perspective, that I was doing the most business because no matter what keyword

phrase you put in, no matter what you searched for online, I was everywhere. I

would spend three, four, five hours a day just pumping out content online. After

about six months of doing that every day, I became the biggest online presence in

Arizona. So, I kind of faked it till I made it online and then, all of a sudden, I

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ended up, like a self-fulfilling prophecy, becoming that person that I always said I

was online.

I would start going to networking events and people would say, "Oh, Cody!

You're that guy that I see everywhere online. You must be doing a ton of

business. I want to take you to lunch." All of a sudden, the roles were reversed.

Instead of me begging people to go to lunch and do business with me, people

were begging me to do business with them. All of a sudden, everybody started

bringing me their deals to sell for them, and the reputation grew, and the amount

of deals I did grew.

Then, the market tanked in Arizona. It got hit hard. It got hit so hard that I

remember the day I had about nine deals in escrow and all nine of them fell out in

a one-day period.

It's like the headline hit the newspaper and all the cash buyers instantly backed

out of all my deals and said, "I'm not doing anything until I figure out what's

going on." Well, that period lasted about six months, and I could barely do a deal

to save my life during those six months. That's when I kind of went back in time

to that very first short sale deal I ever did and I remember the bank telling me,

"Well, we're doing this because they're upside down." Well, all of a sudden, in

Arizona, kind of the writing was on the wall that everybody was going to be

upside down.

That's when Cody Sperber the short sale investor was born and I did the same

online branding and marketing that I did before.

I used my skill set and I became the Short Sale King. So, even to this day, if you

Google "Arizona short sale" or "Arizona short sale realtor," because I am licensed

even though I'm not an active agent, in the sense of a traditional real estate agent,

I'm an agent investor, if you will. If you went online and put in "Arizona short

sale," or "stock foreclosure Arizona" or anything that had to do with distressed

real estate, I was everywhere. I was the first out of the gate to do it, and it was the

reason I was able to get such high rankings that stayed there because of my online

marketing.

One day I got a couple of short sale leads in, and the next week I got a couple

more. Then, the next week, I got like two dozen. Then, the following week, I got

100. Then, the next month, I got 1,000. Then, all of a sudden, the third month, I

got 5,000. I mean, it was so many leads, I had no idea even what to do with them.

There were so many leads pouring in because I was the only online source in

Arizona with tons of information about how a short sale works and what

homeowners can do to short sale the property.

This was like '08-ish, '09, and the short sale investing business was born. All of a

sudden, I had a team of negotiators and a team of real estate agents, and I was

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making offers on short sales, and I basically just looked at short sale investing like

another source of wholesale inventory.

Then, one day, I learned about flipping short sales, using option agreements and

land trusts, and all of a sudden the model started to shift. That was fine for a while

until about the beginning of 2009, when I had a lot of money, because were

making a lot of money from flipping short sales. A buddy of mine told me that he

just bought a house down at the foreclosure auction for $19,000 and it was built in

2006. I went, "Wait, you bought a four-bedroom house that's only a couple of

years old for $19,000? That's infinitely better than what I could even get on a

short sale because, let's face it, short sales suck. They're a pain in the butt." I had

to have tons of negotiators banging their head against the wall each and every day

just to get an approval, let alone the 50 million other moving pieces that are

involved in investing in a short sale and flipping it for profit.

I went and I stood down at the foreclosure auction for about a week, every single

day, for a couple of hours a day, networking, asking questions, trying to figure out

the foreclosure auction game. Then, I used some of my resources and my

networking capabilities to network with some of the bigger auction buyers, and

me and another guy went down there. I finally pulled the trigger, and I started

bidding on my first auction property through a bidding service and we bought our

first house at auction, and 12 months later, we bought our hundredth house at

auction.

Interviewer: What did you pay for the first house?

Cody: You know, I wish I could remember. I do remember, we made about $10,000 on

the flip. We bought it at auction, and within three days, we made the $10 grand. It

was just another source of wholesale deals, you know, but we were paying cash

for them. So, there was more risk than a traditional wholesale deal but we were

still selling to cash back-end buyers. We were buying it for one price, marking it

up $5,000, $10 grand and sending it out to our cash buyer database and they

would buy it from us and we would get back all our money and go the next day

and do it all over again.

Then we started cherry picking the best deals to rehab. We got some rehab crews

together and I know nothing about rehabbing. I'm the last guy in the world you

want in control of a hammer. We got some guys who really knew construction,

and they were all out of work because the market imploded and everybody lost

their jobs. All the builders fired everybody. So, there were a lot of available

construction guys.

They were really smart at construction. So, I hired a couple and I said, "Look.

You've got to be my project manager. I want to run four or five projects at one

time. I'm going to retail these houses. So, let's get a standard package together,

you know, standard cabinets, standard countertops, standard paint color, and line

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item it all out, so I understand what my cost per unit is. That way, I could do my

estimates very quickly. But, to be honest, I want you to do like 99% of the work. I

just want to know that these are getting done on or under budget and on or under a

certain timeframe that we put on the project when we do our initial walk-through.

So, our flipping business was born.

Now I'm doing two or three different strategies, doing short sale investing, which

is pretty much an acquisition strategy, potentially a flipping strategy. I'm buying

houses at a foreclosure auction and wholesaling them and I'm also cherry picking

out the best deals and I'm fixing and flipping them and reselling them.

Then, somewhere around the end of 2009, the beginning of 2010, the writing was

on the wall that the foreclosure auctions were getting crazy. There were more and

more people showing up down there. In the beginning, there was a group of

maybe 20 of us down at the auctions, 30 of us. By the middle of 2010, there were

150 people, sometimes 300 people. I mean, it became the new fad for investors. I

was doing short sales. I was doing the foreclosure auction strategy. One day, I had

one of my personal short sales that I was trying to invest in. It failed and it went to

auction, and I ended up working for over six months and I ended up losing the

deal. Everybody, and I mean everybody involved in that transaction, ended up

being a loser. The homeowner ended up with a foreclosure on their credit record.

The buyer and listing agent . . . The buying agent and the listing agent both work

really hard and they never got paid a commission, and I was never able to buy a

short sale and make any profits. So, it was just a lose, lose, lose, lose situation.

I think this is the reason so many investors hate the short sale business. You

know, we all know that there's big profit potential in it, but it's so difficult to pull

all the moving pieces together and make money.

It's just the way the short sale business is. I had anywhere between 70 to 100 short

sales going at one time. Probably 30%-35% of them would fail, and they would

fail for a number of reasons. Sometimes there was more than one lienholder on

the property and they wouldn't approve the short sale. Sometimes there were

insurance companies somewhere in the background that had mortgage insurance

on the property that didn't want the short sale to go through. Maybe because of the

way the bank's accounting methods were being done, they wouldn't approve the

short sale because it was better for their accounting records to take the losses.

There's probably, you know, a couple of dozen reasons, behind the scenes, why a

short sale fails, but the end result is the homeowner loses, the listing and buying

agent loses, the investor loses, the end buyer who wants to buy the short sale

loses. Everybody loses when a short sale fails.

What's funny is, according to Realty Trac, which is, you know, the nation's

leading tracker of foreclosures and distressed sales, 65% of county housing

markets are worse off than four years ago, and that's a recent statistic. In 2012,

there were over 1.8 million foreclosure filings and, while some markets are

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heating up, shadow inventory, in my opinion, is continuing to build. So, I think

the short sale investing strategy is still viable. I still think that the foreclosure

auction buying strategy is still viable. They're just, now, more competitive, and

the market is being artificially controlled right now and it cannot last forever.

There will be huge waves of foreclosures coming.

Interviewer: Who is it being artificially controlled by?

Cody: Our Fed. Our Federal Reserve System. Wall Street is keeping interest rates

artificially low, trying to keep the housing market moving forward. That's fine,

but they've eventually got to ease up on all this. When they do, and they stop

incentivizing the banks to do short sales and do loan modifications and hold

shadow inventory, it will start getting released to the public. It has to clear out.

So, basically, what ended up happening is, I knew there had to be a better way to

do this. At the time, there were over 6,000 properties per day going to foreclosure

auctions all over the country, and well over half of them were upside down. So,

we were seeing properties that were short sales. Right? They were pending short

sales on the MLS, and they would not get approved. They would go to foreclosure

auction, and they would sell for less than what the offer was when it was a short

sale. So, somebody was willing, on the open market, to buy it for more money,

but the bank decided instead to let it go to auction and they would sell it for

cheaper at auction, to an investor like me. And, when you buy it at auction, it

takes maybe an hour's worth of your time and work to process and do your due

diligence and see if this property has equity and see if it's a good deal, whereas as

a short sale you might work six, seven, eight, nine months talking to 100

negotiators, you know, three or four real estate agents. It's brain damage as a short

sale. So, I knew there had to be a better way to do this.

Then it hit me. It was like a light bulb went off in my head. Why was I working so

hard doing short sales the old-fashioned way? I was constantly having to fight

with the banks, compete with a million other real estate agents and investors, and

I was still having all my deals fall through. Why not, instead, go after the bajillion

properties that were short sales but they were already going south? So, I flipped

the model. Instead of doing all the dirty work, why not just work deals backwards

and save the day and make even more profit? That was the day the reverse short

sale was born. And this is a strategy I've been credited with inventing. I don't

necessarily know if I was the first investor in the country to do this strategy, but I

was probably the first to systematize it and do it as a business model.

The next time one of my short sales began to fail, I ended up going down to the

foreclosure auction and I bought it, and I quickly flipped it for a profit.

Eventually, that model evolved into me looking onto the MLS for property

listings that were pending short sales. I figured if I could buy by-owner failed

short sales, then why couldn't I buy somebody else's failed short sales and

somehow insert myself into their deal and get paid big time?

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One of the first things that I did, since I'm licensed, I immediately started looking

on the MLS for pending short sales. Within minutes, I found a deal that was

marked as a short sale. It was pending. It already had a buyer on it, and it already

had a foreclosure date set. So, I just picked up the phone and I called the listing

agent. It turns out that the buyer was already sitting there. They were a very

strong buyer. They just weren't able to get the short sale accepted for whatever

reason under the sun. This is a very common scenario. Since that deal was already

going to auction, I thought to myself, "I'm just going to go down to the

foreclosure auction, secure the property," and I wanted to do it not using my own

money. I wanted to use somebody else's money, use some leverage, and then sell

it to the same buyer that was trying to buy it as a short sale. That's what I did. Six

days later I picked up a check for $23,707. It was like I knew, right then and

there, that this was a new investing model that nobody was really doing on a big

basis or a full-time basis, and I didn't have any of my own money involved in the

deal. I didn't have to find the buyer and, probably more importantly, everybody in

the deal loved me.

I was like Superman. You know, I came in and I saved the day. The buyer won

because they sat around for months and months and months trying to buy the

short sale, and they got denied and their hopes and dreams were crushed. Then, I

show up and buy the deal and sell it to them. They were using conventional

financing, so they couldn't go down to the auction themselves and just buy it.

They needed somebody like me, with auction experience, to go down and buy it.

The realtors both won because I paid the listing agent and the buying agent

commissions.

Interviewer: And the owner? The distressed property owner?

Cody: Well, the distressed owner, they were the only person in the transaction who

ended up not becoming a winner, if you will, because their property did go to

foreclosure auction, unfortunately, but it wasn't the real estate agent's fall, it

wasn't the end buyer's fault, and we weren't involved in that transaction until the

deal already went south. And, like I said, the banks ended up opening that bid for

less than what they were willing to sell it or less than what the offer was as a short

sale.

Interviewer: Right, which makes no sense.

Cody: Well, that's where the spread came in. I won because I was able to pocket the

difference between the sale price and what we secured the property for, using

none of my own money. You know, and the great thing is, you don't need any of

your own money, you don't need good credit, you don't need to take on any risk,

you don't need to negotiate with the bank, you don't need to spend any money on

marketing, you don't even need to find a buyer for the property. Actually, you

don't even need to know anything about sucky short sales. So, it was just a

16

winning strategy at the right time and I think, right now, the market is ripe for

reverse short sales. In my opinion.

Interviewer: When did Clever Investor become a company? Were you doing this is as part of

the Clever Investor?

Cody: No. I didn't start selling education or getting into the teaching business until 2010,

the end of 2010. It was a byproduct of people begging me to teach them what I

was doing.

I was making an ungodly amount of money. Everybody, all my friends looked at

me and went, "How are you able to afford all this great stuff, live this amazing

lifestyle?" and they finally just said, "Hey, look, I'll pay you to just teach me what

to do." At first, I was super hesitant to do it because I never wanted to be a guru. I

always wanted to be a ninth grade history teacher as a kid. That was my initial

dream until I realized what ninth grade history teachers make. So, I always had

the teaching bug. I just didn't ever think that I would become a real estate

educator, and investing educator. But I have a degree in finance and a degree in

accounting, and I know real estate like the back of my hand, so it just made sense.

Interviewer: You teach people how to do what you did and made so much money doing.

Cody: Yes and we have the best education [in the industry].

I make more money in real estate than I do from selling education, and I think

that's really important for people to know. I'm a very active investor, even to this

day. I buy anywhere between 5 to 10 properties a month.

I decided that I was going to name my company Clever Investor and the reason

I'm going to do that is because my marketing strategies, my investing techniques,

just about everything that I do and every way I process information and do

business is a little bit different than most people. I credit it to my dad for always

pushing me to be creative. So, people naturally gravitate towards me and my

education because it's different than what they can find anywhere else out there.

It's fun. It's engaging. It's entertaining and it teaches you in a logical process that a

lot of people enjoy.

I want to ask people reading this if they could tell me the names of all their

teachers when they were growing up. Just tell me their names, of all the teachers

they ever had growing up. I would bet money that they can't do it. They could

probably name three teachers because those are the three that impacted their lives.

Those are the three educators who did something different, who became

memorable, who affected their future because of what they did in the second

grade or the fifth grade or the 10th grade. You know? So, I feel like it's really

difficult to be a good educator, and I put just as much effort into being a good

educator as I did into being a good investor, as I do into being a good husband, a

17

good father. I have two kids. I have a son named Hudson and a daughter named

Brinley, and it takes a lot of effort and work to be good at anything. So, Clever

Investor's whole goal is not to put out a ton of education but instead put out a

limited amount of the best education.

Interviewer: Now you have two different components to your business. You have the real

estate and investing part, and then you have the education component that came

subsequent to your experience. If you're starting out today as a new real estate

investor in today's market, what would be the one thing that you would focus on?

Cody: As an investing strategy?

Interviewer: Yes.

Cody: I think the natural first step most investors gravitate towards is no-money-down

investing. That's just naturally because most people don't have enough money to

go pay cash for houses and it's really difficult to go to a bank, even nowadays that

the lending institutions are letting up. It's still difficult to go to a bank and get a

loan in a quick period of time and, let's face it, the best deals out there are sold to

cash buyers because they can move quickly. Sellers like the fact that they can just

get paid and get their money and they get to move on. So, I think wholesaling as a

strategy is probably the natural first step. I would also urge people to understand

and learn more about the reverse short sales strategy because I think that's a very

viable strategy when you're just getting going because you could do it with no

money. You don't need a lot of education. You could learn it within a couple of

days and be up and running.

Interviewer: Is there a product in Clever Investor that can teach them that?

Cody: Yes. I've actually recorded myself doing a reverse short sale, front to back.

It's the "Reverse Short Sale System," and, you know, it's cheap, $97. You know,

it's a one-time fee at $97 bucks. It's cheap. The reason I share that with people is I

like empowering people, not based on the cost of the education, but based on the

value of the education and what it's going to do to their lives. So, I like to

empower people to go out there and try something that's super creative and

different than what all their competition is doing. The reverse short sale system,

it's short, it's sweet, got all the paperwork, got everything that they need to really

learn how to do a reverse short sale in their market. The best thing is, if you don't

have a lot of short sales going on in your market, you could do it virtually, no

problem. In fact, probably half of the reverse short sales I've ever done, I never

even see the property.

Interviewer: What's the biggest mistake new investors make?

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Cody: Oh, that's easy. Going at it alone. Same mistake I made. You think you're smart.

You think you'll just figure it all out, you got what it takes right out of the gate.

To be honest, if real estate investing was easy, everybody would be rich. What's

funny is real estate investing is not easy but it's simple. It's a simple business. It's

simple to learn. It's simple to duplicate what other people's systems are, their

marketing strategies, how they convert leads into deals. Mirroring what somebody

else has already done is simple, but it's not easy to go out there and blaze a trail on

your own. So, don't think that you are just going to step into this game and, right

out of the gate, become a gazillionaire. You really do need mentors and power

team members to help support your business.

Interviewer: Where do you suggest people go?

Cody: Well, I think the natural first step is, they're going to go online and do as much

online research as they can, but I would give a fair warning with that. There's a lot

of opinions out there on message boards and forums and what you're going to find

online on social networking sites, or whatever, and there are opinions that broke

people. You know, they can give you an opinion but they can't do any of this stuff

themselves. So, just like when I found the Jack Miller group, I would urge

anybody reading this to find a group like Clever Investor and, if it feels right to

you, if it fits your core values and the way you think and you like the idea that we

do things differently, or whatever, get involved. Don't just sit on the sidelines and

be a bystander or watch other people get wealthy. Get involved. Put yourself way

outside of your normal comfort zone and insert yourself into the group. Before

you know it, you'll become one of us. You'll start making lots of money, having a

ton of fun, and next thing you know, you're inviting the next person that comes

along into the group, and the group grows and the culture grows, and that's how

you replicate what Jack Miller did. It didn't happen on day one. It took him 20

years of building a culture around himself of like-minded people. So, I invite

people to come check out Clever Investor. It might not be right for everybody but,

if it is, get involved.

Interviewer: Do you hold seminars?

Cody: We do, a few times a year. It's not our core business model. I'm not a seminar

company. We hold masterminds. I believe that people learn better in smaller

groups, rather than a huge, large seminar, and never at any of my masterminds is

it a pitch fest. We don't sell product. We don't have outside speakers come and

sell product. It's training, hard-core training for a few days. We lock ourselves

into a room. We have fun. We know each other outside of the real estate business.

We know about each other's families and goals and hopes and dreams and we do

things outside of just real estate.

The main thing that we do is, I'm constantly pumping out really hard-core tactical

training sessions via webinar or audio calls. So, my students, they get a lot of

value right out of the gate.

19

Interviewer: Why is now the best time to get into real estate for revenue generation?

Cody: Oh my gosh. I am like a kid in Candyland right now. This is the best market I've

seen in the nine years I've been doing this. I do more deals today, probably, than I

did back then. Well, I do less deals but I do more deals easier than I did back then.

I think there are two main investing strategies, right now, that are just crushing it.

One is direct-to-seller marketing, that is where you are going directly to the seller,

whether they find you online or through a direct mail piece or through a bandit

sign, or whatever, and you pony up at the kitchen table. You negotiate a deal and

you buy their house directly from them. That's direct-to-seller marketing.

The other investing strategy I think is super hot right now is the reverse short sale

because you can easily, either using your real estate agent or getting access to the

MLS yourself, sit at home on your computer and search through pending short

sales and find ones that are pending and, through my system, reach out to them

and let them know that you're available if the short sale fails and you want them

to call you. Then, just follow my steps and my system to put that deal together,

using none of your own money, all from the comfort of your home. So, you don't

need to be a foreclosure auction expert. You don't need any of your own money,

any of that stuff.

I think those two strategies are really viable in today's market. I think trying to

make normal offers on the MLS is near impossible. You're getting multiple bids

on properties. REO agents are horrible to work with in most cases. REO's are

declining quickly. Short sales are still around but those are getting multiple offers

and they take six, seven, eight months to get approved. Going down to foreclosure

auctions on your own is very competitive. You need to have cash. You need to

know what you're doing and there's a lot of risk. So, I would say direct-to-seller

marketing, reverse short sales are the two best strategies, in my opinion, in today's

market.

Interviewer: I'm assuming that you have success stories regarding students of yours or

associates who have done what you've done and followed in your footsteps and

obviously left their day job and do real estate investing full time?

Cody: I've got dozens and dozens of them. I could tell you about Laura, from Texas,

who is a stay-at-home mom, whom I taught the business and is doing deal after

deal right now. Never was able to do it on her own before and then met me and

now, on her very first deal, within the first 30 days, she made $15,000 and then,

immediately, right behind it, did another deal and made a lot more than that. Now,

she's just doing deal after deal after deal. I could tell you about a guy named Don

in Massachusetts, in some little tiny town in Massachusetts, who bought coaching

program after coaching program and did bus tours with all the big gurus and did

everything, could never do a deal to save his life and then met me and I taught

him the business, and now he's a professional wholesaler in his little town. He

20

went from being a nobody to the biggest investor in his town within a few

months.

But, to be honest, I hate when people make income claims. I like people to look at

our systems, look at our marketing strategies, look at our company culture and our

group culture of our students and decide if it's for them, not based on the fact that

we're going to trade money, their money, for a guaranteed result, if you know

what I mean. I feel like investing isn't for everybody. I feel like each group has its

own things they bring to the table. Clever Investor isn't for everybody; but the

people who do gravitate towards us and they get involved, they see their lives

change and they profit big time because our systems and our training is different

than what all their competition is teaching and doing, and that's what we pride

ourselves on.

Interviewer: The top three ways that you different.

Cody: Our marketing strategies always have a twist in them. They're always a little bit

different. The way I brand myself online, how fast I can teach somebody who

knows nothing about technology, nothing about using a computer except for

doing some basic email and basic computer functions, I could show them how to

get up, ranking and generating leads online in a very short period of time.

Our video marketing is ridiculously good. We have in-house systems that we built

from the ground up. I have some software technology, mobile marketing

platforms, email marketing platforms, website builders, funnel creators. All the

things that I had to teach myself to do, we have technology that outdoes it in a

matter of seconds. So, when a new student comes into Clever Investor and they

get set up with some of our technology, within minutes, their whole entire

business system, all their tech, is set up for them. They have multiple websites up

and running. They have mobile marketing campaigns going. They have email

marketing campaigns going. They're learning how to do video marketing. They're

getting their websites to rank in a very short period of time. Our software and our

technology, it's all proprietary. Nobody else has it. I built it from the ground up. I

would say that's different.

I think the way I teach people to generate leads and then we have four main

investing strategies we teach, wholesaling, buy-and-hold, fixing and flipping and

creative real estate investing and we call it our "Foursquare Strategy Matrix."

Each deal takes on a life of its own. I don't predetermine what a lead is going to

be. In other words, I generate leads. That's what I do. When the leads come in,

they take on a life of their own and they're going to fit into one of my four boxes.

They're either going to end up being a wholesale deal or a fix-and-flip deal or a

creative real estate deal, like a subject to or a wraparound mortgage or a sandwich

lease option, or it's going to end up being a buy-and-hold deal. So, eventually, you

change as you grow as an investor. You start off maybe being a wholesaler. Every

once in a while you'll do a fix and flip. Eventually, you buy your first rental.

21

Then, you realize that owning real estate could be a lot of work. So, then you

transition up, as you make more and more money, to owning notes and becoming

the bank and creating paper and creating income streams and caring more about

yield, and eventually maybe you become a private lender yourself. So, as you

evolve over the years, you change a little bit, but we teach everybody four main

strategies, and I think that's what makes us different.

Interviewer: I know you've mentioned that you don't like setting revenue goals, but what

would you consider a reasonable expectation for someone setting out to do the

real estate investing for the first year and then subsequent years thereafter?

Cody: I think making six figures in your first year is extremely doable. Last month

alone, and I'm almost hesitant to say this, but this last month alone, I made over

$200K flipping houses in one month. It's totally doable. You just need to go

through this learning curve, probably for the first month or two, to understand the

terminology, to build your network and your power team and, if the person is

aggressive and they deal with fear a certain way . . . One of the first things I teach

out of the gate is how to mentally become wealthy because it's really a different

mindset than what you're probably used to. Depending on how you deal with

challenges and opportunities and fear, whatever that is to you, it is going to

determine your future success. So, if you can deal with that in the first month or

two, get your business systems up and running, get all your tech up and running

and start focusing on lead generation right out of the gate, like within the first

month, month and a half, you're going to see results much faster than somebody

who is all over the place.

In reality, you should have your business set up within the first couple of weeks.

Right after that, you should be focusing full-time on lead generation. You've got

to have phone calls coming in. You've got to be talking to sellers, making offers

consistently and going on appointments consistently. If you don't set

appointments, you're not going to do any deals. You're not going to make any

money. If your real estate agents aren't making offers for you on distressed

properties on the MLS, you're not going to make any money. So, it really just

comes down to how aggressive the person is going to be and how bad do they

want it because if they want it more than what their fears are holding them back,

then they're going to do really well in a very short period of time.

Interviewer: Are there any better areas in the United States now than others?

Cody: Oh, yes. Oh, yes. There are probably hotter markets than others, but that depends

on who you're talking to. Like I said, my guy in Massachusetts is in a little

Podunk town in Massachusetts, you know? I would never have thought that that

was a hot market, but every time I talk to him he's got a couple of deals in escrow.

You know? I'm in Phoenix, the hottest market, probably, in the entire country, the

most competitive market in the entire country. I bet if you talk to 10 investors,

half of them would say, "Oh. It's too competitive, too difficult." And the other half

22

of us is saying, "I'm like a kid in Candyland. This is the best thing I've ever seen

in my entire life." It's just the mindset shift. It all depends on your training and

your systems and how good of a marketer you are.

Interviewer: It's about training, systems and mindset. So, what's next? What's on the horizon

for you?

Cody: Disneyland. I'm going to take my kids to Disneyland and I can't wait. It's their

first time going to Disneyland. I‟m super excited because I remember going to

Disneyland and riding the submarine.

Interviewer: “20,000 Leagues under the Sea."

Cody: Yes. I remember going through that over and over and I made my parents ride that

submarine a million times. So, I'm really excited for my kids to be able to

experience that. To take a $6,000 vacation on the fly, $10,000 vacation, when

you're doing deals that profit you $20, $30, $40, $50 grand, is not a big deal. You

know, you don't trade experiences and family time for work anymore.

Interviewer: And are you still generating income while you're at Disneyland?

Cody: Absolutely. I've worked really hard to build Clever Investor up, so I have an

educational business running, and I work really hard to get my business systems

and my real estate business working without me. So, for instance, I have a couple

of fix-and-flips I'm doing right now. When I go to Disneyland, my crews are still

working, my agents are still lifting the properties when they're done. They just

eFax me over stuff. I digitally sign that, send it back. Nothing changes for me. I

could probably, theoretically, take a whole year off and barely work maybe an

hour a week, just, you know, get on my computer and do some stuff, and my

teams would just be moving ahead.

Interviewer: How long did it take you to get all this set up?

Cody: Well, for the real estate investing business, it took me a couple of years. Probably

by my third year I was in full swing. Like I said, I wasted my first year banging

my head against the wall. But, by my third year, after I got my mentors, after I got

my system up and running, after I really mentally shifted that I could do this if I

had the right team, it took off. If you were to ask me around year three, I would've

said, "I know exactly way people fail. It's because they're not willing to do what

others aren't. They're not willing to fight through it. They don't want it bad

enough." It took a lot of work to get to year three but, once I got there, it was like

heavenly. I knew that I'd rounded the corner and all that pain and all that stress

and all that trial and error, finally, was behind me and things started to click.

Business that used to seem hard became easy for me. Marketing systems that I

thought were difficult and time consuming became real simple, and the business

took off. So, I would urge anybody reading this to not be afraid to put in work for

23

the first couple of years. It will pay off big time because now I get to do whatever

I want, whenever I want. I know that's cliché but it's the truth, and it's a really

great feeling.

Interviewer: How do people find you?

Cody: www.CleverInvestor.com is our corporate website. There's a lot of information on

there. I would tell them, check out my blog. I'm constantly blogging. It's very

tactical and technical. It's not fluffy stuff. So, if they want to check out my blog,

get involved, that's awesome. They can find me on Facebook under Cody Sperber

or go to www.Facebook.com/CleverInvestor and get involved there as well.

24

How To Pocket Up To $33,438 A Month Flipping Houses In Your Spare Time

Without Cash Or Credit

3 Regular Guys Finally Reveal Their Simple 31-Day Plan

Rob Swanson

www.FlipCashDeals.com

Interviewer: We're talking to Rob Swanson with www.FlipCashDeals.com. What's your

background and how did you get started in real estate investing?

Rob: It's an interesting question because ten years ago, probably 12 years ago now, I

was probably like most people. I was working a job that I half enjoyed and I half

didn't enjoy. The part that I didn't enjoy was I didn't like working for somebody

else.

I knew that I wanted to be my own boss and I wanted to quit the job at some point

and basically do my own thing, so I was looking for anything. I was looking for

businesses, stock market, commodities, franchises, real estate. You name it. I was

on this massive search. It ended up that one evening at a local real estate investor

club here in the Denver area and what the guy was saying from the stage made so

much sense.

I'm like, "I can wrap my head around that. Find a property that needs work, figure

out how to get it at a low price and then make a profit on it." It made a ton of

sense to me.

I dove all in to figure out how this real estate investing thing worked. My biggest

challenge at the time was I didn't have cash. I didn't have a bunch of credit that I

was going to go out and use, so I had to figure out how to do this business without

the traditional things that most people think about.

I was working a job in a construction company, at the time. I was a project

manager and I thought, "This transition makes sense into real estate investing," so

I was on this pursuit of trying to figure out how this whole real estate thing was

going to work and one thing just led to another.

I just started to consume all of the information that I could and learn and learn and

learn how real estate investing worked.

I started to connect with different people. Buy a cup of coffee, go out for lunch

and one thing led to another and eventually I got into my first deal. I did my first

deal, and we might talk about this a little bit later, but my first deal I bought with

100%, no money down.

25

I made over $40,000 on that little brick ranch house in Lakewood, Colorado.

From that point in time, I was hooked long term on this business. It was about six

months after that that I ended up quitting my job and going full time.

Interviewer: How did you buy that house and make $40 grand with no money down?

Rob: This is the interesting part about it. I heard that here's what I needed. I needed a

seller that was motivated to sell so that I could go in and solve their problems. I

think part of the thing that people need to realize is that they need to reframe how

they think.

It isn't how much money can I make from real estate investing, the money comes

if you figure out and you learn how to solve problems and take advantage of

opportunities that present themselves.

I was working my job. I was driving down 6th Avenue in Denver, Colorado and I

saw this big sign up off the highway and it said, "For Sale by Owner." I thought,

"That's the kind of person that I need to go and talk to." I knew nothing.

This is the thing that you have to understand. I was just completely shooting

blind. I was making things up along the way, but I was taking action. I end up

pulling up to this little house, walked up to the door, knocked. An older lady came

to the door and I said, 'Hi. My name is Rob and I buy houses in your

neighborhood. I was wondering, obviously, you'd like to sell, I was wondering if

you'd be interested in selling me your home?" A conversation ensued from there.

She told me a certain price that she wanted that she was selling the house for and I

said, "You know, I'm not sure that I can pay the price you're asking unless we

could work out some terms." We just started to have a conversation and I really

didn't know where I was going, so I asked her a question.

I said, "Would it be OK if I went and put the numbers together and brought you

back an offer in the next day? Tomorrow?" She said, that would be perfectly fine.

I didn't know what to do as soon as she said, "I'm really willing to sell and I'd like

to do a deal with you."

I just asked for permission to go get my head straight, get my numbers together

and come back the next day. That's exactly what I did. I came back the next day. I

offered her a no-money-down deal where she basically carried all of the financing

and I bought the house, she became the bank basically.

I didn't go and get a bank loan. I didn't go qualify for a loan. I didn't use any of

my own cash or any of my own credit. When we showed up at the closing table,

she became the bank and I just started making payments to her over the course of

the next five years until I ultimately then resold the house.

26

This is what's great about it. The price I got was about 40% of the value of the

actual property. The reason for that was I was able to show her that if she took a

lower price but payments over time, she would make as much money as if she

took all of that cash up front.

She didn't' need the cash up front; it was a win-win situation for everybody. I got

a great deal that I could make money on. She got a great price because she was

willing to take that price over time and ultimately, the deal came together and

everybody was happy and she made money and I made money.

Interviewer: You sold the house five years later?

Rob: I did. What I did is when I initially bought the house, I turned right back

around and I advertised the house for sale with a rent to own, so a lease option.

Actually, this is what's pretty neat about this deal. Before I even closed on the

property, I already had a tenant buyer lined up that wanted to buy the house from

me, but they didn't have great credit.

They had a good income, a good job and then had a stable life, but they didn't

have credit so they couldn't qualify for a new bank loan. What I was able to do

was structure a deal with them and sell the house to them on a lease with an

option to buy over the next five years.

Before I even closed on the house with the seller, they had already given me a

$7,000 deposit as a deposit towards this option to buy that, as soon as I closed, the

next day they moved in and they lived there for five years until they ultimately

purchased the home.

Interviewer: That's a very cool story.

Rob: And profitable too. Everybody won. I, the investor, won. The seller won and the

family that ultimately lived in the house and bought it won.

Interviewer: Where'd you go from there?

Rob: What I started to do from there is realize, "This is great, but I can't really

build a business around hoping that I run across a motivated seller by randomly

driving down the freeway." I realized that I needed to figure out how to build a

system around getting motivated sellers calling me on a more regular basis.

I have a saying in my office and I run an active real estate investing business to

this day, if we're not making offers we're not making money. That was one of the

themes that hit me early on. I needed to be constantly in connection with a

motivated seller. That means I needed to be making offers.

27

One of the things that I do today is I buy a lot of bank owned and a lot of HUD

properties and those are two types of properties that are motivated sellers. I buy,

literally, HUD and REO or bank-owned properties at $0.30, $0.40, $0.50 on the

dollar every single week. I really put a lot of focus into building systems around

buying those HUD and bank-owned properties because they're publicly available.

As long as people know where and how to get access to them, you can make

offers on a regular basis. We've built a lot of systems in our business to do that

automatically and they're great deals. They're super cheap and most of the general

public doesn't know how to approach banks and approach the government in the

right way to buy that cheap.

That's what we've done to transition a lot of our business to make sure that we

have deals coming in every single week.

Interviewer: Your two revenue leaders are bank-owned REOs and HUD homes?

Rob: Yes. That's correct.

Interviewer: If you were starting out as a new real estate investor today, what would be the one

thing you'd focus on? Same?

Rob: Absolutely. Wholesaling,bank-owned and HUD properties. That would be the

thing that I would do the most. When I say wholesaling, what I mean is building a

process or having a process that you can follow to make offers on dirt cheap

properties, put them under contract and then find guys like me that have cash and

are interested in buying those properties.

When a wholesaler finds a great deal and can put it under contract and then brings

me that contract, I'll actually pay that person $3,000, $5000, $7,000, $10,000,

depending on how cheap they have the property under contract for, I'll pay them

to basically buy their position in the deal.

That's what a wholesaler does. It's the easiest way to make thousands of dollars as

a new real estate investor, jump in and really start to learn how the business

works.

Interviewer: What's the biggest mistake new investors make?

Rob: Thinking that they need to have everything figured out at the very beginning

before they start taking action. That's number one. That's, I think, the biggie.

People over analyze because they're fearful rather than just jumping in and taking

action. I think that the second thing is not having a plan.

28

Number one they're fearful because they don't have it all figured out. Second is

they don't have a plan and the third is too many real estate investors, I see this all

the time, try to stick a square peg through a round hole.

What I mean by that is they figure out from some guru or some guy out there, or

gal out there, that, "Here's some real estate investing strategy that they can do."

They take that investing strategy, which by the way, probably works great. It just

might not work great where they live.

This big problem that I see people run into, this roadblock is they're trying to do

the wrong kind of deal in the wrong kind of market and as a new investor it's very

hard to know what to think, who to believe, how to know how this stuff all works.

I see that happen a lot; people sort of beating their head against the wall doing the

wrong things in the wrong places when a little strategy shift in how they approach

their business could be very, very big.

Interviewer: Take me back now. You've got this one house. You've got a system. You're trying

to figure out how it works. What did you do next? You're still working for the

construction company.

Rob: What I did is I started making a massive amount of offers and I basically

went into the multiple listing service, the MLS. That's where all bank-owned

properties get listed, the MLS. I got access to that by contacting a local real estate

agent.

I said, "Hey, Mr. or Miss Real Estate Agent. Log in to the MLS and do a search

for all bank-owned properties that have been on the market for 30 days or longer.

When you do that search, go ahead and then send me all of the information." I

didn't really know the market that well at the time, so I got all of this information.

When I first did this, I probably got 60 or 70 properties that they sent me right out

of the gate. I just went down the line. If the house was listed for $60,000, I

submitted an offer for probably $35,000.

If it was listed for $50,000, I submitted an offer for $30,000. About 60%, roughly,

of the list price, I just made offers. Just blind, random offers. That might scare

some people thinking, "How do I know if I'm right?" You might not, but you'll

figure it out very quickly.

Here's the thing that people have to realize. Just because you made an offer,

doesn't mean that you actually ever have go close. One of the things that I learned

very early on is that I got a lot of information very quickly. I learned the market

super fast by making offers and getting probably 99% of them rejected.

29

They would counter back to me and I would be able to start to figure out the

values and the prices and what was going to work in a particular city. My advice

to people is just start making offers. Sooner versus later that's the fastest and

easiest way to start learning what's going to make you money.

Interviewer: You started making offers and then you got rejected, but some took your

offer and then some countered, so now you're starting to get inventory.

Rob: Correct. Once I had inventory as a wholesaler, because remember I didn't have

cash to close on these houses. I didn't want to go qualify for a bank loan. What I

did is, and you've got to go back, this was a decade ago before the Internet and

back in the day what I used to do is I used to run a classified ad in the local

newspaper in the Real Estate Wanted section and the Real Estate For Sale section.

Something to the effect of, "House for sale. Cash only. $38K. Call Rob" and then

my phone number. I would get local real estate investors that would call me off of

that ad saying, 'I'm a real estate investor. I have cash. I saw your ad in the

newspaper. What do you have for sale?' Then I would tell them the house.

I'd give them, "I've got 123 Main Street. It's a three-bedroom, one-bath house. It's

beat up and distressed really bad and I'm selling it for $38,000." I probably had it

under contract at that time for 30,000.

If they looked at the deal and evaluated it and determined that $38,000 was a great

price, then they would make me an offer for $38,000. I would be able to use their

$38,000 that they paid me to actually go pay cash for the $30,000 that I had it

under contract for.

That next step was finding my cash buyers. Today we have the Internet, so today I

use Google and I use Craigslist a lot to find my cash buyers. Just like in the olden

days a decade ago I had to run ads in the newspaper.

Today I run free ads on Craigslist and I get phone calls on a regular basis of cash

investors looking to buy wholesale properties from me. Every one that I sell, we

make an average of $5,000 to $6,000 profit on most of our wholesale deals.

Interviewer: Then what do you do? You pay the seller in cash with what you got from the

buyer. You made $8,000 and then the buyer just has the house and does whatever

he or she wants with it?

Rob: That's exactly right and that's the beautiful part about it. I don't have to be a

landlord. I don't have to fix and flip. I don't have to have any private money. I

don't have to worry about toilets or tenants or trash or any of that stuff. I'm just

the middle man and I pocket $5,000, $6,000, $8,000 bucks.

Interviewer: Now you've got this whole system going?

30

Rob: Exactly. Then the key there is one of the big things that I learned early in

my business that real estate investors always try to do is, so now I'm doing a deal.

Now I'm making $8,000. How do I make $16,000? I have to do two deals. How

do I make $24,000? I have to do three deals.

How do I make $32,000? I have to do four deals on a monthly basis. Let's face it.

Most of the time the reason we get into this business is because we want to go

make a lot of money. We want to create a good lifestyle and make a lot of money.

What I see a lot of real estate investors get stuck with is what I call 'going deep

versus going wide.' I'll explain that for you.

Most real estate investors, to make more money, try to go deep in their local city

and just find more deals, but that can be pretty tough to do. The reason it can be

tough to do is you have to realize how inventory gets basically added into a

market.

The government and banks have a certain number distressed properties that

they've taken back and not every city gets the same number of properties, so you

might be in a city that gets a whole bunch of distressed properties. You might be

in a city that gets very few distressed properties.

If you want to make more money in a city that gets very few distressed properties,

how easy do you think that is? It's not very easy because you end up competing

against so many other real estate investors and you just can't.

You might be able to get a deal a month, maybe two, but to start to get three

deals, four deals, five, ten deals a month to go deep into your market and get that

many deals to make more money gets pretty hard.

What I do in my business is I go wide, focusing on trying to do five deals a month

in my local city, what I do is go wide and I expand into other markets.

Remember, as a wholesaler you don't ever have to look at properties, you don't

ever have to estimate their values accurately; you don't have to ever estimate

repairs because who's going to do that for you? Your buyers are going to do all

that hard work.

If you go wide and expand your wholesaling business into multiple different

cities, you can then pick the cities that have the most distressed property and

inventory available. You can pick the cities that have the most cash buyers

available, this is exactly what I do in my business.

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Now I go into maybe two or three or four different cities and I do two or three

deals a month in each city and pretty soon I'm doing seven, ten, 12, 15 deals a

month very easily and regularly.

The key to this is I've figured out how to build a team that does 93%t of that work

for me, so while you might hear this and think, "That sounds like a lot of work,"

the reality is I spend a lot of time skiing up in the mountains.

I spend a lot of time going fly fishing. I spend a lot of time going to my kids'

soccer, dances and ballet recitals, so I've figured out how to get a team that I only

pay when they perform or when they sell one of our properties.

They do 93% of the work and I basically sit back and pull the strings and oversee

the rest of the business.

Interviewer: How is it that you don't have to see the properties?

Rob: That's what's great about it. You don't have to see the properties because,

let me give you a little hint and a little tip. Most of the types of houses that we buy

are on the lower end of most cities; the lower-priced end of most cities, so we're

not typically buying the upper-end houses.

We're buying lower priced houses. That way if I buy it cheap on the lower end

and I rent it out, I can make a good return on my cash or if I fix it up and flip it, I

can make a good quick cash profit.

There's a lot more people that can afford lower priced properties than higher

priced properties. If you start to look from city to city, and I've successfully and

profitably flipped houses in about 14 different states and 26 different cities across

the country, what I've come to realize is this, most houses on the lower price side

of the market are about the same size and they generally range anywhere between

1,000 and 2000 square feet, depending on if there's a basement or not.

I can go in and almost completely gut and rebuild a house for between $25,000

and $35,000 anywhere in the country. I know that if I just guess, if I clearly guess

a $30,000 rehab budget, I'm going to be pretty darn close most of the time.

Remember, as a wholesaler, all I'm trying to do is get close so that I can make an

intelligent, really low offer so that when my rehabbers and landlords, my buyers

start to run their actual numbers, they're pretty close to the numbers that I guess.

That's why you don't have to look at houses. You don't have to estimate repairs

because at the end of the day your cash buyers are going to be doing all of that

detailed work. It's like I get to sit back and throw hand grenades and then they

have to shoot the rifle. I don't have to be very accurate with a hand grenade.

32

They've got to be pretty accurate with the rifle, so I toss in all of this inventory

and tie up these properties and then just bring them to my cash buyers who

ultimately pay me $5,000, $4,000, $8,000. They do the hard work. They take on

all the risk. They bring the cash to the table. They do all of that work and I'm just

delivering inventory.

Interviewer: Bring it home now. You figured all this out and now you start to systematize it

and then do you go into your own business? You leave your day job?

Rob: That's exactly right. What I've been able to do is, because of my background, I

was in the construction industry. I was in engineering. I did go to college. I got an

engineering degree. Here's what's funny about it, I've never been accused of being

the traditional engineer.

I can always make jokes about engineers because I am one, but people look at the

way that I run my business and they say, "You must be an engineer because it's

step by step by step." We just follow the simple steps in order to get the results we

want.

That's what engineering is all about: Making things brutally simple so that we can

build a system around it and then scale the business as big as possible.

A little over ten years ago I ultimately did, I quit my job. I went into business for

myself full-time as a real estate investor. I've been doing that ever since. I've been

through the upside of the market and the downside of the market and I'm still here

successfully.

The reason for that is I know some things that most real estate investors don't

know and that is how to pick the right markets across the country to drop this little

system into to get other people to do all of this work and get paid on easy, what I

call, low-hanging fruit deals that most investors out there just completely miss.

What I do is I do regular training webinars where I teach people exactly how I do

this. In fact, I've been invited into very high level real estate investor master

minds where I teach a lot of my strategies on picking the right markets and how to

run your business living wherever you want to live and doing business where it

makes the most sense.

That's one of the key things that I run and live my business and life by. I do

regular real estate investor trainings that people can just jump on and sit in for an

hour or so with me and learn how I run my business and do that stuff and for the

people reading this right now, that's available to them as well too.

Interviewer: We talked about someone being involved in real estate while still having

a job. Why is now the best time to get into real estate for revenue generation?

33

Rob: Why is now the best time? It seems like that question gets thrown around a lot and

I hear a lot of, sort of, cheeky interesting answers. A lot of them are really corny,

but let me tell you this. I've been a full time real estate investor through the peak

of the market, through the crash of the market and now after the crash of the

market.

I can flat look you in the eye and tell you that I have made more money in the

years after the crash of the market than I made before the crash when prices were

skyrocketing and all the appreciation was there. When the market crashed it was

the perfect time for a real estate investor that knows what they're doing.

Prices drop by 50%, 60%, in some cases 70%. Many people lost their houses for a

variety of reasons, oftentimes through no fault of their own and became a renter.

There are just huge residual cashflow opportunities today for real estate investors.

There are huge opportunities to buy really cheap and especially as a wholesaler

there's never been more distressed inventory available to turnover and wholesale

quickly for $6,000, $8,000, $10,000 profits than right now in today's real estate

market. It's a great time to jump in.

Interviewer: You also talked about certain geographical areas. Which geographical areas are

more effective when applying your methodology of real estate investing? You

like the lower-end markets?

Rob: Yes. I go into a lot of detail on that in my live trainings that I do. I basically have

seven market criteria selectors and let me just talk about a couple of them, just so

that people can kind of get an idea of how we approach things because the key is

to realize that you can run your real estate investing business like I do from

behind my laptop.

I literally run my business from my laptop and from my cell phone, so if I'm on

vacation and look, I've been on vacation for the last four days. We've been up in

the mountains with my family skiing.

I've made over $40,000 over the last four days while I've been on vacation. The

key is to understand you can run your real estate investing business from

wherever you want to be and wherever you are, wherever you want to live.

Geographically, here's what I look for. I look for, these are my two, of the seven

market selectors that I go through on my live training, these are the top two that I

look at. Number one is inventory. I look at the number of distressed properties

available in a local market because if I want to make quick, easy cash, I want to

know that I'm putting my effort in where I know there are distressed deals. I know

there are profitable deals. That's the key.

34

The first thing I look at is the amount of inventory. The second thing I look at,

and this is key to actually making a profit is the number of cash buyers. Are there

a lot of real estate investors in that local city that are paying cash for properties?

If those two criteria hit, then I start looking at the next five criteria to basically

rank the cities and pick the best city to drop my wholesaling operation into.

My goal, when I open a new wholesaling market is to drop into that market, get it

up and running and be profitable, meaning I'm closing one or two deals a month

in the first 30 to 60 days.

That's totally possible when you pick a market that's got a lot of inventory, a lot of

cash investors buying properties and then you drop your system into that market

that just starts to turn over that inventory and put yourself in the middle of it.

Interviewer: Obviously you've had some success stories. What got you into teaching your

system?

Rob: I was a local real estate investor here in the Denver area. I used to attend

a lot of local real estate investor meetings. I used to get invited to come in and talk

about what I was doing. I used to get hit up by real estate investors all the time

looking for cash.

They wanted me to fund their deal or partner their deal with them, and this was

just on a local basis. What ended up happening is more and more people started

coming to me asking me, "Would you teach us what you do? We're just trying to

break into this business of being a real estate investor."

Or, "We're already a real estate investor but we're trying to go to the next level

and we see that your business scales. We see that your business isn't limited by

the amount of cash or the construction crews or your own time. Your business

scales and we see you out on vacation a lot. What's the deal with that?"

More and more people started to come to me and ask me for advice, for training,

teaching and that sort of thing, so I started to organize some training and some

teaching and opportunities here locally and then one thing led to another.

All of a sudden I was referred from one real estate investor in Denver to

somebody in Chicago and in Florida and then California and pretty soon I had a

following of people all over the country that were coming in and wanting to learn

my systems. Then, I got invited to teach at certain masterminds and high level

things.

It's pretty interesting, the level of students that I have, I had a guy, and I'll tell you

this story. I won't make it long because I know we don't have a ton of time, but

you'll find this very interesting. I had a gentleman, Matt, who came to me and

35

said, "I'm working a job and I really don't like what I'm doing. I've been doing it

for ten years. I make good money but I'm working 90 hours a week. I want to do

something different."

He ended up working with me over the course of the next six months and quitting

his job, going into real estate full time and over the course of the next year, this

certainly isn't typical, not everybody does this, but over the next year, Matt made

over $200,000 because he just jumped in.

He said, "I don't have a safety net anymore. I got to make this work for my

family," and he started following the steps, taking action, even when it was

uncomfortable. He made a ton of money. He's a full-time investor to this day.

That's a guy that was brand new, knew nothing about real estate investing.

Jumped in and was able to make pretty darn good money.

The other side of the spectrum is I've worked with a lot of guys and gals that are

very successful. In fact, one of my students runs one of the largest national REO

asset management companies in the country.

He's got 130 employees. He has over 15,000 graded REO agents all over the

country. All they do, their clients, my student's clients are Chase Bank and Bank

of America and Fannie Mae and Freddie Mac. That's who this guy's clients are.

He ended up finding me.

He sat in on my live presentation that I do regularly for people online and after

going through that he reached out to me by email and ended up calling my office.

We chatted and he ended up joining my coaching program and then paying for his

operations manager and his head of distressed assets to join my program as well.

Here's a guy that said to me, "I learned more about how investors approach the

distressed property business from what you've taught me than I have as 20 years

in this business." This guy is a high level, he's the keynote speaker at some of the

largest bank, REO, asset management conferences in the country.

That's the kind of difference in level of folks that I've worked with and watched

be successful with these systems.

Interviewer: What's a reasonable expectation someone should set, let's say as a first-year goal,

if they follow your method?

Rob: What's a reasonable expectation? That's a hard one to answer. Here's why it's

hard, I don't know the person. I don't know how hard they want to work. I don't

know how bad they want it. I don't know how much they're going to let life get in

their way. I don't know how many excuses they're going to make.

36

That's my disclaimer. Here's the deal. I want people to jump in, follow the things

that I teach, even if they beat their head against the wall trying to make it happen

and they haven't had success yet, there's a reason they haven't had success.

It's probably because they're trying to push the square peg through the round hole

and if people will figure out how to make a little bit of a strategy shift, I want

people to make their first $5,000 in the first 30 to 60 days.

I want people to get their business where they're doing what I call "Make $15K

Program." I want people to be doing $15,000 a month by 60 to 90 days. We want

them to make their first deal in the first 30 to 60, then we want them to get and

start to scale their business to $15,000 a month in the first 60 to 90 days. That is a

very reasonable expectation, very doable. I've watched many students do it.

If the student is at that level where they say, "You know what, Rob? I'm already

making $15,000 to $25,000 to $30,000 a month in my real estate investing

business, then the expectation goes to the next level.

Now what we want to do is we want to reduce the amount of work that you're

doing in your business. We want your business to scale and we want your

business to double in the first 90 days.

Wherever you're at, it's getting either that first $15,000 a month or it's doubling

your business by teaching you how to build a team and scaling the business where

it doesn't put anymore work onto your shoulders.

Interviewer: What's next for you? What's coming up? What are you looking to accomplish?

Rob: I am just continuing to take advantage of the real estate market that's out

there. I know that the real estate markets that have crashed over the decades in the

past, it crashed back in 1973, '74. It crashed in 1990, 1991, then it crashed again

in 2008. We're still on the tail end of this last crash and it only happens every 20

or 30 years or so.

Right now, is the time to just scale your business, take as much advantage of it as

you humanly, possibly can and just get in right now because if people wait too

long, they're going to find that we're riding up that next swing of the cycle.

It's going to be too late. My advice to people is jump in. Learn what's happening

right now and then three things. Keep it really simple because you don't have to

make this business complicated.

Build a system around it so that you don't have to work your tail off and you can

still make a lot of money and then scale the business so that you take as much

advantage of the market currently right now as you possibly can. That's my advice

to people and that's exactly what I'm doing.

37

Interviewer: Is there anything else you want to add?

Rob: No. I think we really covered a high level of my business, what I do, why I do it

and how I tackle it. If people want to go deeper and really learn what I do and

how I do it, see my seven-market criteria breakdowns, and really dive deeper into

how I run my business on a day to day basis, I just invite people to join me on the

live training webinars that I'm going to be doing. I really look forward to

interacting and meeting some folks online. Visit www.FlipCashDeals.com.

38

How To Pocket Up To $33,438 A Month Flipping Houses In Your Spare Time

Without Cash Or Credit

3 Regular Guys Finally Reveal Their Simple 31-Day Plan

Josh Cantwell

http://www.strategicrealestatecoach.com/

Interviewer: How did you get started in real estate investing? What's your background?

Josh Cantwell: I actually got started in real estate investing, because as a financial planner

and as a financial advisor, I saw that a lot of my wealthiest clients didn't

have their money in the stock market, didn't have their money in

investments, like mutual funds and stocks and bonds. They owned real

estate. So back in 1997, I graduated from college, became a financial

planner at 21 years old, got my insurance licenses, series 6, series 7. And

over the next three, four, five years, I became really good at advising

people about money, but I quickly realized that my most successful and

wealthiest clients owned real estate. I took notice. They owned restaurants.

They owned not the restaurant, the business, but the restaurant building.

They owned rental properties. They owned commercial properties. They

owned single-family homes. They owned apartment houses. I took notice.

In 2003, I basically quit as a financial adviser. I was sick of that business,

because it's very constricting. It's very buttoned up, if you will. And I

decided to venture out into real estate. I just wanted to focus on pursuing

my dreams of becoming financially free and wealthy with real estate in a

business that was much more open to creative marketing ideas, creative

wealth-building strategies. I jumped right in and started focusing on pre-

foreclosures and short sales and foreclosure properties, because in my

area, northeast Ohio and Cleveland, we had already been hit by a

foreclosure crisis. The foreclosure crisis in Cleveland started in 1999,

because we had a bunch of Fortune 500 companies that moved out of the

area. So there became a lot of inventory, a lot of foreclosures, a lot of short

sales, a lot of bank-owned properties. So I immediately jumped into

foreclosures in the spring of 2004, and I've been a full-time real estate

investor ever since.

Interviewer: What are your top two primary revenue pillars; the ways you make money

with real estate?

Josh: I actually focus on seven revenue pillars. I don't recommend that investors

focus on seven, but I've been a full-time real estate investor for almost

nine years now, since 2004, so I focus on seven. My seven revenue pillars

are bank and government foreclosures, that's number one, short sales are

number two, lease options are number three, buyers that want them is

number four, raising capital is number five, marketing, especially Internet

marketing is number six, and number seven is passive income, passive

39

cash flow. If I was a brand new investor today, based on what's going on

in the market right now, I would focus on bank and government

foreclosures, and I would focus on rent-to-own properties, or lease

options. Those would be my two revenue pillars as ways to make money

with real estate.

The reason why is, first of all, because the banks have tightened up their

lending criteria, and they're not lending money to even qualified buyers,

qualified applicants. There are a lot of people who, under normal

circumstances, would be able to buy a home but can't. They can't get a

bank loan. So that lends itself to an opportunity where you can take over a

property on a rent-to-own basis and then wholesale that property for a fee.

I use what I call the magic document, which is also a letter of intent. My

number one revenue pillar would be wholesaling lease options. My second

quick cash revenue pillar is wholesaling and renovating government and

bank foreclosures. The reason why is, number one, there's a lot of

inventory. Number two, there's a lot more inventory to come. There's a lot

of government and bank foreclosures that are going to hit the market over

the next two to five years.

Interviewer: What's the biggest mistake new investors make?

Josh: The biggest mistake that new investors make is not raising capital. They

don't have capital. The reason they focus on wholesaling or they focus on

quick cash strategies is because they don't have money. So they say, if I

don't have money to fund transactions, I've got to wholesale. I've got to get

properties, I've got to get them under contract, and I've got to wholesale

them to somebody else. The hope is that they will wholesale enough

properties and stuff enough money into the bank that they will eventually

be able to use that money in their savings account to buy up properties, fix

it and sell it and do a big deal. Do a big rehab with a big profit. So the

biggest mistake they make is believing out of the gate that they don't have

credibility, that they don't have experience, that they don't know how to

raise money, so they don't raise capital.

If I could go back and do it all over again, the first thing I would do is I

would become a student of money. I would become a student of rate of

return. I would become a student of raising capital, because if you have

money, you can fund almost any transaction, you can do almost any deal,

and your competition will actually bring you deals. If you have money,

you become the go-to guy, and you can get a piece of a lot of different

transactions. And you can become the centerpiece of your community,

because people will lend you money or partner with you and bring you

money, and other investors will bring you deals. So you're the centerpiece,

you're the hub of all that activity. If you don't raise money, you'll be stuck

being a wholesaler, and you'll never be able to do the really big deals.

40

Interviewer: What's the top marketing strategy to generate seller leads or buying

opportunities for this revenue pillar?

Josh: There are two revenue pillars. The one is rent-to-owns and lease options.

What's funny about that is that we find all of our seller leads on Craigslist,

and we find all of our buyer leads on Craigslist. So we actually are able to

use some specific emails and some different ways that we contact

landlords and homeowners on Craigslist. We basically work with them,

we meet with them, we take over their property using a letter of intent.

Then we wholesale the properties to buyers who are also coming from

Craigslist. It's almost funny, because you're just the middleman. You're

just connecting people that are already on Craigslist who don't know that

the other exists. We're just connecting the two. That's for the rent-to-own.

Our best way is simply through Craigslist. It sounds very basic, but it's

absolutely true. That's where we get our entire seller and buyer leads.

When it comes to wholesaling government and bank foreclosures, one of

the best ways to find seller deals for government foreclosures is a website

called www.hudhomestore.com. That's where all the HUD properties are

at. That's where all the government foreclosures are at. For a lot of the

bank-owned properties, those are on two websites. One is called

HomePath, and the other one is called HomeSteps. That's Fannie Mae and

Freddie Mac's websites where they list their inventory of bank

foreclosures. So that's the best place to find those seller properties. Of

course, the other way is through the multiple listing services in your local

area, where you can use the MLS to find these government and bank

foreclosures as well. But all the buyers‟ leads we get off of Craigslist for

the most part.

Interviewer: Walk me through the A to Z process of doing a deal.

Josh: Okay. So let's talk about rent-to-owns or lease options for a minute. What

we have to do is, if a seller has a lot of equity, they're not going to be a

candidate for a rent-to-own deal. So take an example. Somebody who has

a house that's worth $150,000 and they only owe $100,000. That seller is

not going to be very motivated, so they're not a candidate. People who are

overleveraged, so you take a property again that's worth $100,000 and

they owe $200,000, that's really a short sale, they're not going to be

motivated, or they're not really able to do a lease option either. So what

we're really looking for is the people who have little or no equity.

The good thing is, for this investment strategy, there are 26 million people,

according to CoreLogic - which is a big marketing and analytics company

for the real estate industry - according to CoreLogic, there are 26 million

people who have no equity, who are overleveraged, or have less than 10%

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equity. Those people are ideal candidates who have been trying to sell

their house but can't sell it because they don't have any equity to pay a

realtor, or they don't have any equity to unload the property. So those

people oftentimes are at the end of their rope. They don't know what to do,

and they just want to stop paying the mortgage. We can take over those

properties.

What we do is we find those people on Craigslist. We use specific ads to

market to those properties. When people call us back, we go through a

specific sales script that we use. We find out how much equity they have

over the phone, and then we set an appointment with them and we go meet

with them. When we meet with them, if it's fit, we use what's called a

letter of intent to lock up that property. The seller signs it and the investor

signs it. It basically lays out the terms of the deal. What are we going to

pay for it, how long are we going to be able to rent it before we buy it,

how much money are we going to put down.

The most important part is how long is your option period. An option

period is how long can I have to market the property before I have to

either back out of the deal or before I have to move into it. So the option

period is 90 days. So what we do is we get the letter of intent signed. Then

we pass the letter of intent off to our attorney, and the attorney actually

structures the final agreements. The attorney structures the purchase and

sales agreement, the option to purchase agreement, the rental agreement,

and the assignment agreement as well as all the disclosures.

Then we have 90 days to market and wholesale and sell that property to a

buyer. So then what we're going to do is we're going to market that house

all over Craigslist, and we're going to market the property through other

tools like SellPoint and Postlets and other different ways that we can

market the property on the Internet, and we're going to try to get as many

buyers in as we can. Once we find a buyer who wants to basically take

over the property, we then lock up that buyer with a new purchase

agreement, and we get that to our attorney, and then our attorney basically

has us step out of the transaction, and he matches up the seller and the new

buyer, and the new buyer pays us an assignment fee to take over our

transaction. So that's exactly how you put together a lease option

assignment.

In a wholesale, like a bank or government foreclosure, you have the option

with those to do one of two things. You can either wholesale those

properties to another investor, or you can keep them and rehab them. So,

let's talk about the ability to wholesale them. Well, a HUD property, or a

government foreclosure, what you do is you bid on these properties

through the HUD home store. And then once you get your offer accepted,

then you're going to have about 45 days or so until you have to buy the

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property. During that 45 days, you're going to market that property on

Craigslist to find someone to take it off of your hands. And then when you

do, you're going to buy the property and then sell it in the same day. It's

usually what's called a back-to-back transaction. You buy the property,

let's say today, for $50,000, and you sell it today for $57,000, for example.

After your closing costs and things like that, you might get a $4,000

wholesale fee. So that's HUD wholesaling. That's wholesaling government

foreclosures.

The last option is to buy a property, fix it and sell it. That process is a

great way to make big money, meaning we wholesale properties for quick

cash, and we rehab properties for big profits. When we rehab a property,

we might buy that same property for $50,000, but we're going to put

$20,000 or $25,000 worth of renovations and repairs into it. Now we're

into it for, let's say $75,000, and we're going to put it on the market for

$140,000 and it's going to sell for $140,000. We have the ability then to

make... my target number when we do a buy, fix, and sell or a fix and flip,

as we call it, is to make no less than $40,000. Of course, in that

transaction, you need capital to fund the purchase, you need a reliable

contractor who's going to fix the property up, and you need a reliable real

estate agent who's going to help you unload and sell the property once it's

repaired and back on the market.

Interviewer: How do people do real estate investing with no credit, cash, or experience?

Josh: Great question. So, the way you do real estate with no credit and no cash

is by raising capital. You have one of two options. You can either raise

capital from private money partners who are people who have money on

the sidelines. They have money in their IRAs, they have money in a

savings account, they have money in a CD, they have money in annuity or

a bond or the stock market, and they're not happy with the return that

they're getting. There is so much of that money right now available it's

almost ridiculous. There's really nowhere to run to get a good, reliable rate

of return. What I mean is CD rates are extremely low, bond rates are

extremely low, fixed annuity rates are extremely low. They're all below

3%. The stock market is very volatile, up and down, up and down. On

average, the stock market is only going to yield, over a long period of

time, let's call it 30 years, the stock market is only going to yield about 9%

return.

So the way you do deals with no cash and no credit is by going and talking

to what I call private money partners. These are people who have maybe

an old 401K or an old IRA or they have money in a savings account, they

have money in a CD, and the money is just sitting there earning no

interest, or they're not paying attention to it. These people will happily

partner with real estate investors, or loan money to real estate investors to

43

fund these transactions, provided that the investor with the capital can get,

I feel, a good double-digit rate of return is somewhere between 10 to 25%

return on their money. My target number is 15 to 18%. If I can provide

somebody an investment opportunity where I do the deal and they give me

the funding and I could pay them 15 to 18% on their money, I can raise a

lot of capital.

Anybody reading this report can raise a lot of capital, because there's just

no other place that somebody can go to get a 15 to 18% rate of return. So

the first way that they do deals with no cash or credit is to raise money.

The second way is to become a wholesaler, to wholesale lease options, and

to wholesale HUD properties, because you don't need any money when

you wholesale a property. You don't need any cash to fund those

transactions.

The experience is going to come from knowledge. Of course, reading

eBooks, reading courses, investing into someone's education is going to

give them the knowledge that they need, and eventually, they're going to

go out and do a deal or two or five or ten. So, the funny thing about

anybody who's been successful with real estate, they all started with no

experience. It's just about going out there and taking the knowledge that

you have and going out there and trying it, just doing it, taking your first

step. Even if you make a mistake, you're one step closer to knowing more

and doing more. The thing that I think most people make the mistake of is

they buy lots of books and tapes and courses and they never do anything

with it. So the experience is going to come over time, and confidence

comes from experience and knowledge, and that's how you make up for it.

Interviewer: Why is now the best time to get into real estate for revenue generation?

Josh: Right now is the best time for a couple reasons. Number one, there are a

ton of home owners who would like to sell who can't. So there's a ton of

lease option wholesaling opportunities. Number two, there's a ton of

government and bank foreclosures that are available right now all across

the United States. Number three, capital is very available, meaning private

money partners. Not banks, not mortgage companies, not hard money

lenders, but private money partners are everywhere. You just have to open

your mouth and talk to people and ask for the money, because there's just

nowhere else for people to get a good rate of return on their IRAs and their

CDs and stuff like that.

Number four is that the market is at its bottom. The market is going to

rebound. The market is going to get better. You're seeing a lot of the

hedge funds and a lot of international investors investing in United States

real estate. The market really can't go any lower, so the market is going to

44

go up. So now is the time to get in and buy while it's low, and over time,

we'll see more normal appreciation in real estate.

Interviewer: Can someone be involved in real estate the way you approach real estate

while still having a job, or does it need to be a full-time commitment?

Josh: Great question. Absolutely, somebody can do this part-time. Matter of

fact, a lot of our successful members and students started doing this part-

time. I have a coaching student that I've had for a long time, her name is

Sabrina, and she lives in New York City. She invests in properties in the

city of New York. I've worked with her. She had a full-time job, and she

started investing in real estate part-time. Basically, I was with her the day

she quit her job, and she went full-time into real estate and has never

turned back.

At the beginning, it's just like working out. This is how I like to phrase it.

It's just like working out. Let's say somebody has never been in the gym.

Maybe they're a little bit overweight, and they want to get in shape. If they

want to get in shape and they go to the gym for the first three days in a

row, and they work out for two and a half hours, and they're going

absolutely crazy, eventually by day four, they're going to be pretty beat

down. They're going to be tired, and they're probably never going to go

back to the gym.

So investing in real estate part-time is very similar in that I'd rather see

people ease into it and start to do just one deal a month. They can do that

with two to four hours. They can do that in their spare time. Sending out

emails to people on Craigslist, putting ads on Craigslist. That can all be

done at night, on the weekends. So, not only can people do it part-time,

I've personally worked with people who did it part-time and eventually

went full-time. Matter of fact, I bought my first two investment properties

while I had a full-time job, and I did it part-time before I went full-time.

Interviewer: Do you have any success stories you can relay of students of yours who

went from having a job and transitioned into doing real estate full-time,

which you pretty much just did?

Josh: Sure. I have countless number of students who had a job and were doing

different things. Another student of mine is a guy named Kyle from

Chicago. He was a therapist. He worked with people as a therapist during

the day and started doing real estate part-time in the evenings. He was

doing some pre-foreclosures and short sales and eventually was so

successful at it in the evening he went and closed a couple of really huge

transactions, bought houses and fixed them up and sold them for a big

profit, and he went full-time. I am one of those people. I was a full-time

financial planner, bought my first investment property while I was a full-

45

time financial planner. It was a two-family rental property. Then I bought

another property that I bought, fixed, and sold while I was still a financial

planner, and then I went full-time into real estate. I mentioned Sabrina,

who was doing deals part-time and then went full-time.

Interviewer: Is there a specific personality that better lends itself to doing what you do?

Josh: No. There are two types of, not necessarily personalities, but two types of

characteristics, I think, or instincts, that work well in our industry. One is

somebody who's a really good researcher, somebody who's really good at

data and analytics and looking stuff up, because a lot of real estate is just

numbers. It's, I can buy a property for $50,000, I can fix it up for $20,000

I'm into it for $70,000, and I can sell it for $140,000. Well, that sounds

like a pretty good deal to me. There's $70,000 of profit there. So the first

person is somebody who likes data, likes to research, likes numbers, and

likes spreadsheets and putting those things together. That's number one.

The second person is somebody who is a quick state, someone who if they

get an idea, they're just going to go for it. They don't care about the data.

They don't care about the research. They're just a mover and shaker. I'm a

student of a program called the Kolbe Profile, kolbe.com, the Kolbe

Profile. The Kolbe Profile has four different modes or four different types

of instincts. I find that most people in my industry are either what's called

an initiating fact finder, or a high red, meaning that they like data, they

like research, they like the past, they like numbers, they like to research

things. The other mode that I find is successful in my industry is

somebody who's a quick state, which is me. Somebody who sees

something, sees an opportunity, and just goes for it, regardless of what the

repercussions might be. But those aren't really personality traits. Those are

instincts.

Interviewer: Are there any geographical areas that are more effective for applying your

methodology than others?

Josh: Definitely. The two or three strategies that I've talked about, which is the

lease option assignments and the wholesaling government and bank

foreclosures and rehabbing government and bank foreclosures. The middle

of the country. Get rid of the coastlines near the beach. Get rid of those,

and anything in the middle of the country is a great place to do what I do.

The reason why is that property values are a little bit lower than they are

on the coastlines. Coastline properties tend to be a little bit more

expensive. And number two is that we're able to get a lot of big discounts.

When you're in tropical areas or coastline type of areas, you're going to

find a lot of big demand in those areas, and prices are going to be a little

bit higher, and properties are going to be a little bit tougher to find. So

geographically, I would say anything from Nevada over to on the east

46

coast, Pennsylvania, and then down into Atlanta, Texas, the industrial

Midwest, the heartland. Texas, those kinds of areas are all great for what I

do.

Interviewer: What's a reasonable expectation someone should set for the first year

revenue goals if they follow your method?

Josh: There's no reason why somebody can't make six figures in their first year

doing what I do. Six figures is only about $8,000 a month in revenue. So

that's about two deals a month, and that's two wholesale deals. $4,000 on

one, $4,000 on the other. $8,000 a month, 12 months, that's about

$100,000 a year. Also, if somebody does one rehab project, two

renovation projects a year - we don't do a renovation project unless we can

make $40,000. So if you do two of those a year, that's $80,000 in one year.

There's no reason why, based on the current circumstances - there's so

much inventory, there's so much capital available - there's no reason why

somebody can't make $100,000 a year.

Now, reasonable? There's no reason why somebody can't... if their goal is

to make an extra $20,000 a year, there's no reason why somebody can't do

one wholesale deal a quarter and make an extra $5,000 every quarter and

make $20,000. But it just depends on how hard somebody wants to work,

how quickly they are to implement. You see, I learned a long time ago that

ideas mean nothing without implementation. There's lots of great ideas,

everyone's got new ideas, but it's often we don't need new ideas. What we

do need to do is just implement the ideas that we already know. It depends

how hard somebody wants to work or how long they want to work. If

somebody is looking for a get rich quick scheme, that's not real estate.

Real estate does take some effort, some knowledge, and some research,

and some time. It's not like you can flip a house today without doing any

work. It doesn't take a lot of work though. It only takes maybe one to four

hours to put together a deal.

Interviewer: What about for the second year and beyond? What should be a realistic

goal that someone could set for themselves?

Josh: Again, it depends how much work they want to put in, but if somebody is

a full-time investor, there's no reason why after the first year they can't

consistently make $100,000 a year or more. I know lots of my students,

friends, myself included, we're in this business to have money, to have

freedom, and to be wealthy. So to get to the point where somebody is

making $200,000 a year, $300,000 a year or more is the goal. Also, to

create long-term passive income, to own properties that will eventually be

paid off from a tenant buyer or a renter who pays the property off, and that

property is now free and clear. It's spitting off income, it's spitting off cash

flow, and it's worth more and more and more every year. So, it should be

47

very realistic for someone to set their expectations to not make any less

than $100,000 a year or more and then to leapfrog into year two, year

three, to double that and triple that every year thereafter.

Interviewer: Is there anything else that you'd like to add?

Josh: The only thing I would like to add is anything worthwhile is going to take

some work. When people think, I can do this part-time, and I don't need to

focus on it. Hopefully something will fall in my lap. There's always

somebody out there who's working really hard pursuing their goals, so

those people who are just kind of floating through the wind and hoping

something lucky happens to them, that's probably never going to happen.

Success is a combination of hard work, knowledge, and being in a place

where deals fall in their lap because of the hard work they put in. It's not

luck. It's just opportunity meeting hard work, and all that kind of comes

together. So I would say anything worth pursuing is going to take some

hard work.

Finally, you need to be daring. To chase any kind of dream, goal, some

big, hairy, audacious goal - my friend calls it a B-HAG - big, hairy,

audacious goal, you have to be daring. You have to be willing to try things

you've never tried, do things you've never done, and expand your horizons

and expect more, and go out and try stuff that other people would never

try. You have to be daring, and you have to try new things, and you have

to have some big, hairy, audacious goal that you're trying to pursue.

Because if you're just hoping to do a little bit more, you're probably going

to get a little bit more. But if you pursue some big, hairy, audacious goal

and you end up halfway there, you're probably better off than 90% of the

people out there.

Interviewer: For people interested in finding out more, where do they need to go?

Josh: My main website is www.strategicrealestatecoach.com. They can find all

kinds of tools and resources there and my personal story. I'm a father, I'm

a husband, I have three little kids, but I'm also a pancreatic cancer

survivor. I have a pretty amazing story about how I was diagnosed. My

son was actually just born. My wife had an emergency C-section. My son

was born with a cyst in his neck and was having trouble breathing. My son

had surgery when he was two and a half weeks old, and while my son was

in the hospital, after his surgery, I was 35 years old, and I was diagnosed

with pancreatic cancer. Two months later, I had a surgery. I had a surgery

that saved my life. The surgeon pulled off a surgery that most surgeons

would never even dare to try. So my story of loss and overcome and

challenge and achievement and success and coming back from that is at

www.middlemanincome.com. That's my story, and that's where people

48

can watch the video of everything that's happened to me in the past year or

so.

49

Conclusion

Thank you for your interest in making money with Real Estate and the opportunity to present

you with three unique points of view on approaching the housing market as a way toward

financial freedom.

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