Real Deal REInvestor Network

Do you get stuck and decide not to take short sale leads because you just know that they'll be a big pain?  That you'll have to spend hours and hours doing nothing but sitting on hold with the banks, trying desperately to find someone who can actually talk to you about the sellers file.  Only to finally get a contact who seems to be able to get something done and have them quit or be fired 5 minutes later?  So you have to start all over again...

And once you find the loss mitigation representative who is working your file, you have to actually, gulp, negotiate!  Once you figure out what to say to them, you have to wait until someone else approves the file or they come back with a counter-offer, or just refuse you all together.   Then what do you do?

Why are you dealing with this headache by yourself?

Let's see, there are several reasons that I can think of:

1.   You think that you can do it better than anyone else.
2.  You've been doing a business like a one man show, thinking that you have to do everything in your business.
3.  You want to do it yourself so you can train someone else to do it.
4.  You see all these people who offer to negotiate short sales, but have to buy an $1100 program, then give them 50% of the profits!
5.  You don't know who is reliable and who is just starting out and has no experience, but they talk a good line.

There is certainly some reason in most of these arguments, except #1, unless you are already very experienced in doing negotiations.  However, for the vast majority of real estate investors, you are going to get the most value from your time by hiring out the negotiations and focusing on building an actual business, rather than being a one man show.  All being a one man show will get you is a lot of frustration and the feeling that you are constantly running on a hamster wheel, getting nowhere fast.  Perhaps if you only want to do a deal a month or less and you have a lot of spare time on your hands, then maybe it would be good to do your own negotiations.
 
So, how can I either find or hire a good negotiator?  First of all, you want someone who is experienced at negotiating!  Maybe they are one of those fired loss mitigators that I mentioned earlier.  You can hire someone for part of the profit or you can pay them hourly.  Or, there are many, many services out there that will do your short sales for a fee.  

The one I am using charges a minimum of $4,000 to do the short sale negotiations or 2% of the sales price.  If I can create an average $28,000 spread, the fee is well worth it.  They have connections, methodology and time -- and I can concentrate on bringing in more business (which by the way, does not consist of marketing directly to sellers -- people bring me sellers)  

To find your own negotiation firm do these things:  Ask them for references.  See what they are doing.  Check out their website.  Check out their literature.  It will soon become apparent who is a joker and who is actually going to be a good bet.  Do they have requirements that make sense according to what you know about short sale packages?  After all, you want to hire someone who is going to help your homeowners and make you some money.

 Is it worth it for me to pay over a thousand dollars to get into someone's negotiating program?  Honestly, I have to say that it depends... if you know nothing about short sales, some of the programs out there will provide you some excellent training and access to experts in the field.  They are very expensive -- giving up half of your profits is a steep price to pay.  In the example above where I talked about a $28,000 spread, these people who claim to be helping you would get $14,000, rather than the $4,000 that my negotiators get.

Now, go get yourself a negotiator!

Christy Mellott,
Millionaire In Training, mmmchallenge.com 

What type of Real Estate would you like to master ? Is it really that important for you to have one or two areas of real estate investing  that you are a master in ?

Have you ever heard the saying , "Jake of all trades and a master of none ."?
The saying is so important when it comes to real estate investing , and picking which area of real estate investing you would like to master.

I know you maybe thinking  , "well , I'm just getting started , and I just want to make some MONEY NOW  ! " or you could  have already closed out a few deals and you  are looking to put a system around what you are doing.

   Lets look at the guy that just wants to make some MONEY NOW ! Let me show you how he can do both at the same time, mastering an area of real estate and MAKE MONEY NOW  .

 First, meet the needs that is pressing now by  focusing  on a quick turn real estate techniques, to acommplish his goal of getting MONEY NOW. (Bird Dog, Wholesaling, Assignment of Contract , etc.) Now to master that area of real estate investing  all he would have to do is to change is mindset from GET MONEY NOW to putting that first property that he is doing into a system  .

Now all that our  subject would have to do is to see what he is doing like a business , and to start to document everything that he is doing to quick turn the first property , and then to put it into a system , after that  to he would source the work . The same thing would apply to the guy that wants to put a system around what he is currently doing. Document the process, test , and outsource .

Learn by doing !

I'm sure the Bulk REO opportunity buzz has been heard around the world once or twice by now. This highly lucrative investing opportunity has been covered by a shadow known as "the joker broker". I will share with you now 6 quick tips on how to spot these industry clowns and get to the real product and the rewards that come with it. Read on...

 

 

 

I’ve just learned (again) how saving money can cost you Big Time!  Have you ever said, “They charge way too much for that, I can do it myself so much cheaper”?  Well I have, and so a story for all to learn.  The John Deere Dealer wanted $160 for the annual tune up for my lawn tractor.  I thought, “Crazy expensive, I can do that way cheaper”.  I went to the store and bought the oil, filters, etc. and it was $45.  I couldn’t get it started so I went to another store and bought jumper cables, $10.  I had to run again to an auto supply store to get two tools that I didn’t have, $18.  So we’re just getting started and I’ve spent $73.

 

I started the process and took off a wrong part.  It happened to be the starter which was in perfectly good condition until I broke it trying to put it back on.  Another trip to the John Deere Dealer (one 20 miles away from my house since it’s now Saturday afternoon and they are the only one’s open), $135.  Put everything back together and it still doesn’t work.  I started the project on Thursday, spent $208, four trips to the store, six hours, and it still doesn’t work.

 

Now I’ll have to call the John Deere Dealer on Monday and have them pick it up.  It will cost at least $130 for pick up and one hour of service (could be much more with parts).  The dealer is backed up about three weeks, so I will have to have my lawn mowed three times at $65 per time.  That’s another $325 for a total of $533 and at least eight hours before I’m done.  I may not be good at math, but I do know spending $533 to save $160 doesn’t make sense.

 

So the next time you think about doing it yourself and saving money, you might want to think again.

When investing in luxury home short sales it is important to remember a few things first.

1) These are properties that are at least $500,000.

2) Make contact with Real Estate Brokerages that cater to these clientele so that you can get some of these deals rolling in.

3) The Rich are also having a hard time paying their Mortgages.
An example would Mr. Nicholas Cage having a house foreclosed on in New Orleans.  How about about Stephen Baldwin in New York.  In 2008, Mr. Trump himself saved Ed McMahon from going through the same thing before he past away last year.

4) The Banks want to unload these properties the quickest.  The more bad loans a bank has, the more they have to hold back in savings that their unable to loan.  They are required to hold back $7 dollars for every loan in default or non-performing loan that is on their books.  Since these properties cost more, they have to hold back.  So they will be willing to quickly cut a good deal and get this type of short sale approved more quickly.

See you at the Top

When investing in Bulk REO's you want to make sure of a few things right away.

1) You make direct contact with Bank Asset Managers for the actual tapes of properties.

2) You want to know how your going to exit before you go shopping for a package or tape.  Will you be selling to a hedge fund?  Will you be selling the properties to end buyers or home owners?  Will you be wholesaleing the properties to whole salers?  What is your Exit strategy?  What is your backup plan in case that falls through?

3) Make sure that your buyer or buyers are legit.  You need to check out their Proof of Funds, otherwise known as their POF.  Do they have the funds they say they do.

If your deal with anyone else your probably just wasting your time as they are just trying to get into the deal, but don't actually know how to play the game.

See you on the Up Side.

Continued from

http://www.realdealcommunity.com/magazine/read/_9.html Part 1

http://www.realdealcommunity.com/my_profile/blog-view/blog_494.htm   Part 2

So to continue from Part 2….

After deducting the “necessities” from the average person’s day-to-day routine, most people honestly have an average of something like 2 hours and 42 minutes per day with which they have to work to change their life for the better– just like “Johnny Wealth Builder” the average guy we profiled in my last article.

If you don’t believe me take the challenge yourself and get really disciplined for one month in recording your time expenditures.

I hope you do, and I hope you find that all your free time is going to improve your lifestyle and help achieve your goals.

But for most people, they simply must use their discretionary time more intelligently than many of the activities that are popular to spend your “free” time doing— activities that add NOTHING of value to a life. And, if these people care… if they truly care… about improving their lifestyle and achieving their goals…

This Has Got To Stop!

So, what comes first? What’s the action plan for getting every second chance out of every minute we’ve got?

I’m gonna tell you what I think, and what works for me (usually anyway!) but, before I do, I want to make an important observation: Many people hate it when I write stuff like this. They think I’m judging them, or else they think this type of information is not as usable or tangible as the hard-hitting techniques in business they’d prefer to see.

That’s crap. If my working with a lot of high achievers like the contributing instructors in The Greatest Real Estate Giveaway and others has taught me anything it’s that the fundamanetals (i.e. how we choose to spend our time) are often more important than what we know. These readers don’t want to get the fundamentals right… no… they want to skip right to the “details” or the “magic formula”. But, listen up: your life, just like my life, is already filled with details, tons of them, to the point that your mental file cabinet is tossing out more information EVERYDAY for lack of use or need than your computer could ever hold…and, of all these details, almost NONE are doing a darn thing to enhance our life.

Unless you’re clear on the basics, the details just pour over the cup.

Here’s something else: Success in life or in business isn’t necessarily complicated. I honestly think it can be and should be simple. The real answers are, really, so simple… they are almost corny. But “simple” is like Forrest Gump’s momma said: “Simple is as simple does”. Simple does NOT by any means mean “easy”. Running an ultra marathon over broken pavement in the scorching heat of Death Valley is very simple. All you have to do is keep putting one foot in front of the other for 50+ miles. (No Teather, I still am not convinced to walk 60 miles with you in the 3 Day breast cancer walk for a cure, try someone else!)

Simple as can be. Difficult beyond reason.

I want something for each of us in Real Deal Community, something kinda big. I want this year, starting TODAY, to be absolutely special for you. I want you to achieve more this year than you have achieved in all the previous years of your life. Of course, that means you’ve got a lot of “details” to attend to in the coming 365 days… but to really achieve something of note… you’ve got to attend to the right details.

In order for this to be that year for you…we need to get this in pinpoint-specific focus for you. Let’s see if I can get a commitment from you. Just for approximately the next 10-days. Just from the time you read this letter and the time your calendar pops up “Finally Done!” 10 days from today. I’m not gonna lie. This is gonna be SIMPLE. In fact, it could even be EASY. But for some of you…you just won’t do it regardless of how much you realize it could benefit you greatly.

Oh well. I’m throwing it out there for everyone anyway.

This commitment will cost you maybe 20 or 30 bucks and will likely take less than five minutes of your time for each of the next 30-days.

Here’s all I’m gonna ask you to do: Go to a local drug store, a Radio Shack or wherever and get yourself one of those cheap micro cassette recorders and 30 of those little micro cassettes. You’re welcome to get a digital voice recorder and pay more (they’ve got some awesome features), but that’s not necessary and I’ve yet to even figure out how to use the nicer digital one I have but hopefully soon!

Keep your recorder with you at all times during this month experiment and use one micro cassette each day to keep a running “time log.” Use it approximately once every hour of your day to take a quick bearing on how you spent the preceding hour. Your audio entries should only take a few seconds each.

They should sound something like this:

“7:15 to 7:50:” Drove to office.

“7:50 to 8:40:” Breakfast and newspaper

“8:40 to 9:30:” Returned work emails from coworkers about upcoming project

Etc., etc., etc.

That’s it.

If you;re cheap or broke, just use a notebook and write it down.

That’s all I want you to do. I know, I know. You’re already twelve steps ahead of me. In fact, you’re ready to graduate without taking any tests because “you already know what this is all about”.

Think ol “Johnny Wealth Builder”, our average guy with his 2 hours and 42 minutes per day to spend (invest) to better his life already knows the basis of my evil convoluted scheme to change his life for the better?

Baloney.

“Johnny Wealth Builder” most likely doesn;t have have a clue. Please just trust me on this. All you’ve possibly got on the line to lose is $20 or $30 and a couple or three hours out of one lousy month.

Flip the coin over and all you’ve got to possibly gain is everything you’ve ever wanted to achieve in this life.

Think I’m exaggerating? Think again.

Danny Welsh

Chief Marketing Officer, HIS Real Estate Network

Director, The Greatest Real Estate Giveaway

Greetings!

The concept of building a 'Power Team' to help you in realizing all of your onjectives is a time tested and proven strategy. Yet most individuals choose to ignore this strategy because they feel overwhelmed at the thought of putting together their team; they don't know how to do it! How exactly do you build a team of highly trained professionals that will help you to achieve your personal real estate investment goals? Who do you choose to be a part of your team and why? How do you get experienced professionals to join your team? All of these are valid questions, so let's begin by discovering how to find the right real estate professional.

Choosing a Real Estate Broker/Agent

Here are the five questions that I ask myself prior to interviewing any real estate professionals:

1. How much do I know about this individual?
2. Do I have an existing relationship with this individual?
3. Is this individual well known in my community?
4. Does this individual work for a high profile real estate firm?
5. Is this individual an expert in the market I am specializing in?

If you are active in the real estate market where you live then you should know the answer to the majority of these questions without further research; simply choose and make contact with the Broker/Agent that you want to interview for the position. If you are not active, then talk to a handful of Brokers in your area and ask them for their recommendations on which of their agents you should contact. Most Brokers will only refer you to one of their top agents because they want your business; they will not steer you in the wrong direction!

'Hi Mr/Mrs Broker. My name is J. Angelo Rodriguez and I work with a select group of real estate investors nationwide. My team specializes in aquiring all types of real estate; residential, commercial, land, etc. I am looking for a savvy real estate professional (mortgage loan professional) like yourself who can assist me and my team in finding the right deals (financing) in this market that meet my criteria. Do you have an agent in your office that has experience in working with private real estate investors? If so, I would be interested in interviewing them for a position on my team.'

Don't worry if they begin asking you questions about what type of properties you invest in or the type of agent you are looking for, simply state the following;

'Thank you for asking! The real estate investment group that I am a part of specializes in all areas of real estate; residential, multifamily, commercial, land, etc. What I need from the agent that you recommend to me are only two things. The agent must not only have experience working with real estate investors, they must also enjoy working with real estate investors! Everything else that I need to determine whether or not this individual is the right fit for me I can assess determine during the interview process. All I'm looking for from you is two good referals!

Once you have the names of a handful of agents, then the interview process can begin! If you have numbered your prospects based on personal preference, never begin your interviews with your number one prospect! Always begin with the last name on your list and work your way up to the best candidate! Doing so will help get you into the recruiting rhythm; this way you are at your best when you speak to the candidate that is your first choice!

Introduction:

'Hi! My name is J. Angelo Rodriguez and I work with a select group of real estate investors nationwide. (I was referred to you by ___________________ who indicated to me that you might be able to help me) My team specializes in aquiring all types of real estate; residential, commercial, land, etc. I am looking for a savvy real estate professional (mortgage loan professional) like yourself who can assist me and my team in finding the right deals (financing) in your market that meet my criteria. Do you have any experience in working with private real estate investors? If so, I would be interested in interviewing you for a position on my team.'

This is the initial question I have used effectively for many years and it is still effective for me! This question has always helped me in establishing the proper foundation for what I am trying to accomplish and leaves very little room for any misunderstanding as to what my purpose is and what it is I am trying to accomplish!

'I want to thank you for agreeing to this interview to determine whether or not you would qualify to become a member of my real estate investing group. In order to determine if you would be a good fit, there are several questions that I need to ask you! Is that allright with you?

'Great!'

'Let's get started!'

Here's my 'Top 20 Questions' I ask during the interviewing-

1. In order to help me understand how best you can assist me in realizing my goals, I need to ask you two very important questions; how long have you been in the real estate business and have you ever worked with a private real estate investment group before?
2. How did you like the experience?
3. Was there anything specific about that experience that you didn't like?
4. Did you learn anything from the experience that has helped you in your own personal real estate investing?
5. What type of properties do you specialize in?
6. Are you currently active in buying or selling investment properties and if you are, have you established a network of real estate investors?
7. Most private real estate investors have a clear understanding of the type of properties they are looking for and will probably not take your advice, at least not initially, on what constitudes a great investment; Can you set aside your personal preferences and focus on the properties that meet my criteria?
8. As a private real estate investor, I'm fearless! I'll make whatever offer I consider to be appropriate based on my own criteria, not yours. In many cases, I will include creative financing options in my offer; Do you have any reservations about presenting my offers to prospective sellers because of this and will you exercise the same level of enthusiasm when presenting my offers as you would any other offer?
9. It is normal for me to make multiple offers on multiple properties at the same time, this means that you will need to flexible in handling my transactions. There will be times when you might feel overwhelmed by the number of offers I make, sometimes on the very same property; Is there any reason why you feel that you can't handle the volume I give you in exchange for the commissions you will earn on every transaction that I ask you to assist me with?
10. As the preferred real estate professional on my team, I will require that you assist me in evaluating the properties I am interested in purchasing. This means that you will assist me in determining the highest and best use, fair market value, future market value, wholesale price, marketability of the subject property, title and zoning issues, and many other variables that will help me in making a final buying decision; Do you feel comfortable in accepting this role and do you feel that you can set aside the time to help me make a full assessment on which properties I should make an offer on and which properties to ignore?
11. I am constantly using my own marketing techniques to find the right properties to purchase and in many cases will actually find these transactions on my own and hand them to you without any work on your part; will you reciprocate by actively searching for the right properties that meet my criteria for me?
12. On some occasions, I take advantage of different advertising promotions that help me to reduce my overall costs; Are you open to sharing the costs of advertising if it makes sense for you to participate?
13. On some occasions, I will launch an aggressive marketing campaign that targets the for sale by owner market and will offer clients access to services normally provided by real estate professionals; Do you have any issues providing services such as a comparable market analysis at no upfront cost for the opportunity to be in first position to list the property in the future?
14. In the past I have had success with organizing neighborhood workshops for first time homebuyers and real estate investors in order to capture leads; Is this something you would be willing to participate in as my preferred real estate partner?
15. I am always mindful of recognizing the potential tax consequences for my buyers and sellers on every transaction that I am involved in. How knowledgeable are you when it comes to tax issues that might impact both buyers and sellers on a transaction?
16. I believe in being active in my community and I expect my real state professional to support me in some of these efforts. Are you willing to work with me in being active in the community?
17. On occasion I will write a blog on my real estate community website. These blogs touch on a variety of different topic, mostly about investing in real estate. It would be wonderful if I could get an expert's opinion on current market trends, etc. Would you be willing to be a guest blogger when called upon?
18. Branding myself with the right real estate professional is very important to me! I want to make certain that the individual I choose recognizes this! Are you willing to work together to seek out innovative ways to co-brand our services so that prospects immediately think that by working with you they are working with us?
19. I know that we've spent a lot of time together discussing the things I am looking for in a real estate professional; I am appreciative of your time and I wanted to ask you if there was anything you would like to discuss with me before I ask you my final question?
20. The final question I have for you is pretty straightforward. I know I've asked you a lot of questions in regards to the type of individual I am looking for and the responsibilities this individual will have as a member of my team. Now I know I've given you a lot to think about and perhaps you might need a few minutes to think about your response but before I end this interview let me ask, Are you the individual that I am looking for?

'Great!'
I admit this process might seem a little daunting for some of you initially, but the reality is that this system isn't that difficult! With a little bit of practice, the interview can be memorized rather easily and you will be able to conduct an effective interview in no time! Feel free to play with this script anyway that you like, it isn't necessary to follow it exactly, be creative and take ownership of it! There is no right or wrong way of using this information; it is here to be used as a guide for those who will benefit from it!

The following has been provided with the permission of Mr. J. Angelo Rodriguez, the writer.

Philip J. Sherman
Billionaire in Training
MMMChallenge.com

Okay guys.  Here are some key things to keep in mind when putting together a Professional Biography.

1) Keep it short.

See how many words make up y0ur Professional Bio and then cut out what shouldn't really be there.  For example, personal things and fluff.


2) How short is too short?

Your Bio should give just enough info about you to whoo or wow who ever is reading it and nothing else.

Danny Welsh says that his bio is still a little too long.  His is 118 words.  Is yours longer? 
It shouldn't be.
When counting Philip J. Sherman's bio, it turned out to be 68 words.
How Short can You make Yours.

Philip J. Sherman (68 words)
Philip J. Sherman is an author, speaker, politician, and Real Estate Investor amongst other things. He currently specializes in REO's and short sales in both residential and commerical. While currently focusing solely on Real Estate Investing, Mr. Sherman ran for State Representative in the Great State of Missouri in 2006 and 2008.

If you would like to learn more about Philip J. Sherman please visit his website, www.PhilipJSherman.org

Danny Welsh (118 words)
Mr. Welsh is an entrepreneur, real estate investor, marketing consultant and copywriter.  Danny Welsh is perhaps most proud of being the co-founder of The Greatest Real Estate Giveaway, an online repository of expert real estate trainings with thousands of written pages and hundreds of hours of audio and video for new to advanced investors.  From his home in Louisville, KY, he works with small groups of invidual investors to invest in commercial properties for income and equity participation benefits--without shouldering all the costs or risks themselves.  Danny is passionate about empowering real estate investors and is proud to help manage the Real Estate Web Academy's online social networking portal for tens of thousands of investors and growing.

3) Keep it Positive

Make sure you leave out any and ALL negative words (e.g. can't, won't, didn't).

4) Keep it in Present Tense

Don't tell me what you will be doing.  Tell me what you are doing and have done that are impressive and would look professional.

5) Keep it Third Person

6) Give People a Way to Find out More about You

A good Professional Bio should give the people a website or some other source where they can easily go and find out more about this person is they choose to.

A key to keep in mind is when you look at someone's initial Biography, how long do you sit and read before you start to lose interest. 

We want to make sure we keep their interest their the entire bio, which is why it shouldn't be very long.  You can always share your complete life story on your website for those few people that will want to know everything that you have ever done.

Talk about yourself as if your talking about someone you know that you admire.
Think about this way.  When you read an article online, is the article short or long?

Now go look at some Professional Bio's of people You admire.  What are they saying?  What do they let others know about them?

Until next time,

Philip J. Sherman
Millionaire in Training
MMMChallenge.com

Whether you have lots of money and great credit starting out, or no money and lousy credit starting out, either way, if you truly want to make a serious bid at building a property empire then you cannot discount the importance of learning how to find investor partners and equally how to find private lenders to help fund your real estate investing. As you go along in your real estate investing career, as long as you pay attention and get educated about real estate investing, you will find that the skill you possess in spotting value and valuable money-making opportunities in real estate will far, Far, FAR surpass your ability to get all the money you need to do all these many deals you come across- UNLESS...

You learn how to find investor partners and find private lenders and get your money sources in place AS YOU GO ALONG and BEFORE YOU NEED THEM.

How to Find Investor Partners and Private Lenders

Creative investing techniques aside, sometimes you need real cold cash to do a deal. And sometimes it can be very frustrating not to have it to hand. For that reason, available financing money tends to be the biggest challenge for many real estate investors, new and experienced both. If you can't get the financing, sometimes there's just no deal.

John Wooden once said "Don't let what you can't do stop you from doing what you CAN do". Keep that in mind now as I lay out what you should do, if for example you do have little money or a poor credit situation. And if you don't then you'll still find more access to money than you might have ever though you needed (yet) when you apply these strategies.

Now, I speak from experience (big time!) when I say that lack of money and/or a negative credit situation can be one HECK of a hurdle to leap over but with enough tenacity and creativity and faith you will do it.

Before you get all disappointed that I'm not saying it's easy, I want you to consider a paradigm shift in your thinking. Today, I want you to see that it's not easy but it IS simple. I want you to consider that being credit challenged is not all a negative. I want you to believe that this "negative" situation can have a powerfully positive silver lining, and that's this:

"As long as I KNOW I'm going to make it happen (a deal, this business, whatever), whatever holds me back (poor credit and/or no money) is immaterial to accomplishing my goals. In fact, I am BLESSED to have this challenge (poor credit and/or no money) because since I KNOW I will succeed that means I will have successfully defeated this challenge and developed skills and attributes (patience, tenacity, faith, creativity) that will take me far FURTHER than someone for whom this (credit/money) was not a problem. Nor will I, when I have bested this challenge (poor credit and/or no money) ever take what I have gained (good credit, wealth, financial independence) for granted and lose it-- as some who never face challenges do."

Believe that and you cannot fail.

Now, as for the steps to help you right now getting your money sources in place to do even more real estate deals, let's talk about finding investor partners and private lenders for real estate investing.

Here are a few strategies many people can do immediately, and others as soon as is feasible with their time and money availability. If you do these concurrently, and CONSISTENTLY, in less than a few years you can have access to more money to do deals than you might imagine:

1) Go to the Courthouse and look up mortgage documents. Go regularly because you're researching. Creating the database that will get you paid. Ask around, these people (civil servants) can be extremely helpful if you are humble in your requests. Just don't expect to discuss real estate investing with them, they likely don't care. What are you looking for? You are looking for the mortgage lienholder. Take a tablet of paper with you and write down any (including mailing address) INDIVIDUAL (i.e. non- Wachovia, First Century Financial, Bank of America bank/finance institutions) names you find. These are one of two types of people, people who took back a mortgage on the sale of their own home (owner financing)- whether it was their idea or not. You don't usually want these (not for gaining investors who will give you money to do deals anyway).

The second kind is a private lender, someone that loans their money out secured by a property. These are the ones you want. How to find the good ones? Call them and introduce yourself, explain that you are a real estate investor coming across a wealth of high-ROI secure low-LTV real estate deals and in search of short-term mortgage financing from private individuals to get the deals done.

One of three things will happen, two of which will make you money potentially.

a. They know exactly what you're talking about because they hold a LOT of private mortgage notes-- not just the one you found that prompted you to call them-- and love the high safe returns they get. These types will ask what interest rate you're offering or other savvy questions. These are the private lenders you want. Find out as much info as you can about them and add them to your database, promising to notify them first when you have a deal in the works. Don't worry if you don't have answers to all their questions. At this point having their contact info and them knowing who you are, being "pre-pitched" is all we're concerned about.

b. They don't have any idea what you're talking about or think you're crazy or aren't interested or have no money to loan/invest.

c. They know what you're talking about because they have a seller-held mortgage on a house they sold and in fact HATE that they are receiving payments over time-- instead of the lump sump cash they wanted (but couldn't/didn't receive when they sold). NOTE: Two questions here could make you a nice chunk of cash: "Why?" and then "Oh, I see, well Mr. Jones that's actually my specialty. I can get you all the cash coming to you within a week, and you could __(insert their answer to Why? here)__ right away without waiting all those years and the headaches of collecting payments. Of course, because you're getting cash in your hand, it would be a discounted amount from the face value you SETTLED for when you took the mortgage. If I could get that set up for you with just a few questions and you'd have the cash within the week-- would that be something you'd now be interested in?"

Once you've done this it's a simple matter to connect them with a lender you contacted in #1 or find a buyer through an online private lender clearinghouse where people broker mortgage notes to each other or calling someone more experienced or getting a private mortgage broker involved- though they'll take much of the profit. Any of these is an easy way to cut yourself in the spread for a few thousand dollars or more, with just a little paperwork and you're doing nothing unethical. If you do this be sure to consult a competent real estate attorney, however, because you're dealing with securities and complicated paperwork).

But again, the point isn't to find cash flow loans, it's to find lender investors for your own deals. Just think of #3 above as a lucrative sideline that costs you little but the time it takes to ask 2 questions.

2) Place ads "Money wanted. Up to Double Digit ROI %. Short term and long term. Minimum investment (insert here whatever 65% of the average value of a home in your area is) Private investors needed. Secure, low-LTV investments collateralized against income-producing properties. Free consultation. Call now.

Local people are best when it comes to developing investor partners for real estate investing. These people are going to want to meet you and see what you're about. Remember, professionals don't have to have all the answers. You just have to know you can get them! So use the local newspaper. Use bandit signs (these are the signs you see on the side of the road- just check your local county ordinances and attorney about possible penalties). Call the guys at 866-SIGN-GUY and even if they're not available in your part of the country, they'll happily refer you to someone who does it where you live I bet. Also, put the above ad on the back of your business cards.

A no cost option is placing the above on http://www.craigslist.org, the world's largest online free classified ads exchange, and other classifieds online.

3) Attend a private money bootcamp seminar, even if you have to borrow or put it on a credit card or convince a better-off friend who is like-minded to go halves on the cost for two to attend. There are some good options for this But it's pricey. Go to the training section of the HIS Real Estate website to learn more.

4) Go to your local REIAs (real estate investor associations). Don't ask these people for advice until you're experienced enough not to fall for the blind leading the blind phenomenon that prevails at many of these, or have seen proof of how successful they are and how many deals they've done. Get business cards, hand out yours. Ask the organizer to address you from the front of the room and introduce yourself. Let people know you're looking for money investors, and that you are in search of investor partners for real estate investing.

5) Improve your own credit.

Here are some simple, easy, and mostly free ideas that won't work for everyone, but will work for many:

-Hire a credit repair company (be careful there are some scams out there)

-Celebrate your successes and hold yourself accountable. Sign up for credit monitoring at 14.95/mo through Truecredit.com or another.

-Get someone in your family or a close friend with GREAT credit to add you as an "authorized user" or better a "secondary user" to their high-limit, long-history credit cards. Tell them it will not affect their credit AT ALL, and they can cut up the card in your name that is sent to them. You'll be surprised at how many points this can bump you up.

- Decrease your DTI and debt-to-credit limit ratios one of two ways. Pay down revolving (credit card) balances to BELOW 50% of the limits. OR, and some people never even think of this one...ask that your credit LIMITS be increased so that the balance owed is less than 50% of the new higher limit

- Remember, sometimes the best investor partner you can have is your own credit's ability to channel OPM

6) Call everyone who advertises "We Buy Houses" in your area. Many of these investors also lend on property as private lenders. It's a great way to find private lenders for real estate investing. With very little change in your schedule (just being AWARE and writing it down when you see these walking or driving- pull over first!) I guarantee you can create a database of HUNDREDS of these in your locality-- unless its extremely rural anyway-just by paying attention to billboards and bandit signs on the side of the road. This is an example of the phenomenon that when you want to make money in real estate without your own money it's What You Know + Who You Know = What you Get.

7) Realize that if you have the What You Know AND the Who You Know handled, What You Have right now is NOT IMPORTANT. Do you follow me?

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Danny Welsh is an editor of investing newsletter 'The Good Steward' with Investing Do's, Don'ts and Deals! Danny invites you to learn more today when you join America's #1 Real Estate Network at HIS Real Estate Network.

Also, find investor partners and private lenders using the new search engine for real estate investors -- a fantastic "bookmarkable" resource created by investors for investors.