We’re on day two of a series talking about how “insiders” (real estate agents) have a down payment machine. Be sure to catch up by reading yesterday’s post.
It is paramount for an “insider” real estate investor to have a savings account prior to investing in real estate. This account will be funded by your successful real estate brokerage business. Without access to liquid cash, you will have to either find one of those extremely rare, “no money down” cash transactions with the potential problems from yesterday’s post, borrow the money, bring in an investor, or sell something to obtain the down payment.
The smartest financial move is to have ready cash available for the real estate transaction that meets all the goals of this book. One of the questions you might ask is “Why not refinance another piece of property to obtain enough money for a down payment on a rapidly appreciating piece of real estate?” There really is nothing wrong with that as long as real estate keeps appreciating, and as long as the piece of property you have refinanced can service the debt and the expenses by way of the income that it produces. However, this ignores one of my goals…
FREE AND CLEAR PROPERTY IS NICE TO HAVE WHEN YOU ARE OLD!
Many of you will say that it is a slower track to buy well-performing property and wait for the tenants to pay off the mortgage. Like my ex-wife’s response when the subject of horrendous alimony came up, her answer to my pain was “Work harder!” Make more money in your real estate brokerage using my systems and look harder for the best real estate investments!
The concept of earning your money, investing it correctly, and allowing the tenants to pay off the mortgage is a tried-and-true concept that works in every market. Many real estate agents do not have any experience with sideways or falling markets, but as in any business cycle – it does happen. I would like for you to be able to weather the good times, the boring times, and even the “where’s the bottom?” kind of markets!
In Southern California between 1980 and 1985, we experienced as much as 15 to 30% drops from their 1979 highs. In 1990 to 1995, a good percentage of the transactions happening in Southern California were actually being closed at prices less than the amounts owed the banks on mortgages. We were receiving concessions from the lenders to achieve a closed property and then eventually a commission. This is called a “short pay.”
These types of ups and down (although not as pronounced in some locations) do happen everywhere. Any investment program based upon future appreciation is bound to fail. Owning a well-performing piece of real estate that is able to weather the storms and obtaining equity pay downs by way of the money that the tenants give you is one of the safest and believe it or not – after you see how my snowball effect works – is one of the fastest, most exciting roads to real estate wealth.
This whole system is based upon your ability to put down a 5, 10, or even 25% down payment. I am going to have to come up with some ideas for you on how to get this money; many of you will not like the answer because it involves discipline!
I could write a whole book on the discipline of earning and keeping money as a real estate professional! The success basics of a top real estate professional include the following:
- Master many seller lead generation systems to produce leads no matter how busy you get.
- Master the ability to determine whether or not a buyer is profitable indicated by their actions and commitment.
- Develop checklists and technology to systemize the steps necessary to success in real estate including lead generation, listing presentations, marketing, inventory locating for buyers, negotiating, closing, transaction coordinating, follow up, running your business, and maintaining a balance in your life while you are doing everything else.
As you might know, I am one of the top real estate trainers in the country for the last ten years, and I was one of the top real estate agents in North America during the 80s and 90s. Over time, my company has developed numerous systems that allow you to duplicate the systems that many top agents (including me!) have used to accomplish the above goals.
This book is about real estate investing, but since obtaining a down payment is paramount to your success in real estate investing — it is necessary to use your “insider” advantages to become a better real estate agent, thus creating a higher net profit. The goal of this book is to…
HAVE YOUR MONEY WORK FOR YOU SO YOU DON’T HAVE TO WORK SO HARD FOR YOUR MONEY IN REAL ESTATE BROKERAGE!
Invest in your business, invest in your future, invest in real estate! Insider Trading for Real Estate Agents is a thick manual full of Walter’s personal investing strategies, forms, checklists, and letters with the data CD (digital copy for easier implementation). It also includes audio CDs for you as a real estate investor and audio CDs for your investor clients.
Check out the details: http://www.waltersanford.com/shop/insider-trading-for-real-estate/. Call 800.792.5837 and ask for the $50 blog special on this system!