1

Building Wealth inReal Estate

How You Can RetireComfortably on Ten Little

Houses in Ten Years

Building Wealth

1. The Plan: Find the Deals2. Buy. Rehab. Refi. Rent. Repeat!3. Manage Your Empire

Part One: What’s the PLAN

In a nutshell, the plan is to buy twohouses a year for ten years, rentthem out, then sell the first ten topay off the last ten. You end up withten little houses – free and clear ofdebt!

How do I do that?1.See a LOT of

HOUSES2.Make a LOT of

OFFERS

SEE A LOT OF HOUSES MAKE A LOT OF OFFERS

2

Non Binding Letter of INTENT

How Do We Find Houses atWHOLESALE PRICES

1. Print business cards (and magnetic signs for your car) that say I BUY HOUSES2. Contact every FSBO in your target area and make low offers3. Build a referral networks of ten real estate agents that feed you leads4. Become an UNLICENSED PERSONAL ASSISTANT to an agent (no cost to

anyone) and obtain online access to the MLS and a lockbox key to enter houses5. Hire a pizza boy to text you with the addresses of run down vacant houses ($3 each?)6. CRAIGSLIST looking for FSBO7. Attend Real Estate Investor Clubs and meet other investors who want to sell8. Watch the foreclosure notices & buy before the auction - reinstate and assume the loan9. Attend foreclosure auctions and meet others who are bidding - buy from them10. Send letters to owners of delinquent tax notice properties

Look for HIGHLYMOTIVATED SELLERS!

1. Business Cards & Signs

3

2. Contact every FSBO in yourtarget area and make low offers

3. REFERRAL NETWORKof TEN AGENTS

4. Unlicensed Personal Ass’t 5. Hire the PIZZA boy

6. Scour CRAIGSLIST fsbo 7. Real Estate Investor Clubs1. Find the FULL-TIMERS2. Focus on NETWORKING3. Look for SUB-GROUPS4. Find Those DOING what you want

5. DO NOT fall for GURU pitches6. Get the CHEAP education

4

8. Buy PRE-Foreclosures1. Notice of deficiency2. Advertise in the LEGAL PAPER3. Get the PROPERTY ADDRESS4. Go to the front door / neighbors

5. Get it under CONTRACT/deed6. REINSTATE & Make Payments

9. Go to Auction & Network1. Find the Dealmakers: NETWORK2. IGNORE the wanna-be’s3. BIG HAT – NO CATTLE4. Buy them lunch & network

5. Tell me about your best deal!6. Tell me about your worst deal

10. Buy PRE-Tax Sales1. You can’t compete at TAX SALE2. But you can buy BEFORE sale3. Similar to pre-foreclosure sale4. Tax Commissioner will reinstate

5. MUST STOP the TAX SALE!

11. FARM a Neighborhood1. Identify a TARGET

neighborhood

2. Create a database & populate3. Become the expert4. Start a Neighborhood Newsletter5. BUY before it goes on market

BONUS 12: Part One: What’s the PLAN

In a nutshell, the plan is to buy twohouses a year for ten years, rentthem out, then sell the first ten topay off the last ten. You end up withten little houses – free and clear ofdebt!

5

How do I do that?1.See a LOT of

HOUSES2.Make one OFFER

every week by LOI

Part Two: The MONEY1.Your Own Savings2.Partner w/Money

3.Seller Financing

4.Financial Friends

5.Hard Money Lenders: Paces Funding

6.Bank Portfolio Loan (5-10 years)7.VIZIO Permanent Financing (15-20-30)

8.FNMA Non-Owner Occupied 1-4 loans

9.FNMA Non-Owner Occupied 5-10 Program

1. YOUR OWN SAVINGS

You will probably need 20% to 30%down based on After Repair Value forPERM FINANCING

Home Equity Line of Credit FLIPPING solves that Problem Can be gift or even IRA or 401(k), yours

or someone elses.

2. Find a MONEY PARTNER

You find the deal and supervise therehab, then sell or manage the property

Money Partner fronts acquisitionmoney and all rehab funds

You go 50/50 on cash flow and profits

3. SELLER FINANCING

Seller Financing can be WIN-WIN What does the seller NEED What will he do with the CASH How much will that YIELD What can you afford to pay? How long can he go out? Sellers LOVE getting a CHECK!

4. FINANCIAL FRIENDS

Someone you know … Doctor, dentist, banker, grandparents Have a PRESENTATION BOOK Take them to a WORK SITE Treat them like the bank Say what you’ll do, then do what you

say Take them TWO CHECKS at payoff …

6

5. Hard Money Lenders:PACES FUNDING

They want high interest, but They’re just as happy with the deal! 5 points at closing, 15% interest, 6 mo Skin in the game THEY HAVE TO APPROVE THE DEAL! Short Term Financing ONLY! Time is Money

6. Bank Portfolio Loan

Not FNMA/FHLMC guidelines Mezzanine Special Probably ten years or less Probably adjustable rate Based on your FICO, income, and your

relationship with the bank Small community banks, Wells Fargo Same source for blanket LOC

7. Perm Financing: VIZIO Also not FNMA/FHLMC Usually 10-15-20 years Usually adjustable Again, based on $$$ relationship with

bank and your track record SPECULATOR vs INVESTOR Usually 70% LTV or less

8. FNMA NOO 1-4 loans Full FNMA Guidelines - strict Up to 4th property with ANY recorded

loan, including personal residence. 75% LTV with tons of provable reserves Reserves can be RETIREMENT funds Lots of EXTRA WORK for all concerned FULL RECOURSE against lender VERY DIFFICULT TO GET APPROVED

9. FNMA NOO 5-10 loans Full FNMA Guidelines – very strict Up to 10th property with ANY recorded

loan, including personal residence. 65% LTV with tons of provable reserves Reserves can be RETIREMENT funds Lots of EXTRA WORK for all concerned FULL RECOURSE against lender IMPOSSIBLE TO GET APPROVED

Quick Review: The MONEY

1.Your Own Savings2.Partner w/Money3.Seller Financing4.Financial Friends5.Hard Money Lenders6.Bank Portfolio Loan (5-10 years)7.Portfolio Permanent Financing (15-20-30)8.FNMA Non-Owner Occupied 1-4 loans9.FNMA Non-Owner Occupied 5-10 Program

7

Part Three:Landlord Checklist for

2017John Adams presents

New Strategies To Make & Save YouMoney and Boost Your Cash Flow

Right Now!

Copyright Notice© John Adams 2017All Rights Reserved

No part of this presentation or associated manual, or any of itscontents may be reproduced, copied, modified, transmitted, oradapted, without the prior written consent of the author, unlessotherwise indicated for stand-alone materials. Posting of thismaterial to the web is forbidden.

Commercial use and distribution of the contents of the website isnot allowed without express and prior written consent of theauthor. 404.373.6000

Disclosure

John Adams is not an attorney and can not giveyou legal advice.

John Adams is not a tax accountant and can notgive you tax or financial advice.

You need both an attorney and a CPA to adviseyou based on your situation

The Sweet SpotDetached Single Family House Few other Rentals Least Exp in More Exp Market The 1% Formula 100-150k Return on VALUE, not PAYMENT

FACTORS WE LOOK FOR

1.GOOD SCHOOLS2. Built 1970 or later3. Under $100k4. 3 Bedroom / 2 Bath5. Max TEN MINUTES to an expressway6. Max THIRTY MINUTES to a job

TARGET AREAS

Atlanta Airport (Fayette, Clayton, Henry) 316 between Lville & Athens Warner Robins AFB (15000 emp) NE Ga MED CTR (5000 emp) Braselton KIA PLANT (3000) 85S S of LaGrange ATHENS (36,000 students) STATESBORO (20,000) students

8

The Property Manager Use a GA Real Estate LLCNever Be The Owner Tenants are NOT your customers Business Cards w/ name blank Lower expectations

I’m JUST the property manager

Step Inside My Office 5. ClearNow Online Rent Svc

$15/mo for first, +$2/moadditionalThey draft rent from tenant’s

bank

The MAGIC NUMBER

Use GoogleVoice for tenant lineSet DO NOT DISTURB as you

wishForward calls to your cell

The Obihai OBI200

9

Obi200 is $50 at NewEgg.com Gmail for your Property

Google Voice = 678.555.1234RE6785551234@Gmail.comSet AUTORESPONDER

message

Google Drive Your Gmail acct comes with DRIVE 15 GB of cloud storage You can upload ANY FILE Scanned images, photos, docs Late letters, applications, lease documents,

insurance records Move In Move Out documentation Demand Notices – EVERYTHING!!

Google Drive

GOOGLE CONTACTS

Capture all tenant info Integrates with Google Voice Integrates with Gmail Also get emergency contact phones and e-mail App works on smart phones

Google Tasks / Calendar

Set reminders for Safety Letters Lease renewals TO DO rehab lists Showing appointments Safety Inspections Insurance Renewals Tax Protest Deadlines

10

ADVERTISING

Internet FOR RENT Sign Other

ALEXA RANKING #10

www.Postlets.com (zillow) POSTLET SYNDICATION

Yahoo Homes HGTV Front Door

HotPadsTruliaEnormoMSN R.E.

DotHomesZILLOWBackpageVastRentBitsMilitary.com

ZILLOW &TRULIA

13b. YARD SIGN

11

Double Sided Plastic Sign$18.99 from eSigns.com

All Other Sources 33% of your response FLIERS: One Page B&W with ONE PHOTO Just The Facts & Contact Info Distribute in Neighborhood Schools, Churches, Offices, Workplace Bulletins,

Neighborhood Newsletters REAL ESTATE OFFICES – Offer a FEE Have a Neighborhood Open house

MySmartMove.comProtected Classes include: Race, creed,

color, sex, place of national origin,familial status, children, sexualorientation, veteran status, disabilitystatus, age, pregnancy, citizenship, andgenetic information.

EVERYONE IS IN APROTECTED CLASS!!

Screen Applicants Legally YOU CAN NOT WIN NO MATTER

WHAT YOU DO You need a written SCREENING POLICY

that applies to all You need to treat everyone exactly the same BLAME IT ON SOMEONE ELSE

Screen Applicants Legally

The best solution is to transfer therisk to someone who is prepared tohandle that risk: TRANSUNION

MySmartMove.com

For only $30, you get: A complete customized credit report CREDIT SCORE A criminal report that draws from millions of criminal

records A leasing recommendation and suggested deposit

amount to take based on your set criteria A single recommendation for multiple applicants

12

The RIGHT Lease

YOUR LEASEDOCUMENT IS

VITAL

18. EVICTION in Georgia

Rent due on the 1st

Past due on the 5th

Demand Notice on 10th

File Dispo on the 15th

Service on the 20th

Do You Want To Stay or Not? Pay Them to Leave

23. Move-In Inspection

Very Important in GEORGIA Tenant does NOT have right to be present for

IN or OUT inspection Reports MUST be in writing Time dated PHOTOS can help 10 Unit Exclusion in code N/A to Real Estate Licensees

29. PET POLICY 63% of households own pets Proper screeningNON-REFUNDABLE pet fee Pet rentNo breeding operations See LLST Pet Lease

Premises Liability Safety & Security

Inadequate Lighting Uneven surfaces Unpublicized Crime Door Lock Policy Consult with POLICE PREMISES LIABILITY