FREE

website
included

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 PLEASE NOTE:

This copyrighted book is sold with the understanding that neither the Author nor the Publisher is
engaged in rendering any legal, accounting, tax or any other type of professional advice. Kris Haskins
is NOT an attorney or accountant. Questions regarding the specific tax, legal, and accounting needs of
the user should be addressed to practicing members of those professions. The information, ideas,
techniques and suggestions contained herein have been developed from sources, including publications
& research that are considered and believed to be reliable but cannot be guaranteed as they apply to any
particular person’s tax situation. Moreover, because of the technical nature of the material covered
herein & the dynamic nature of the laws governing our actions, the assistance of a competent, qualified
attorney, financial planner or accountant is highly recommended when implementing any concept
discussed in the book.
Legal Disclaimer

The information contained in this publication and all underlying data were compiled for use by you, the
student, as a guide, benefit and service to further your career and mission. It is intended for educational
purposes only. Reasonable care was used in the collection & presentation of the content herein;
however Tidewater Enterprises & Construction LLC, Blocker Builders LLC, Kris Haskins and any of
our subsidiaries makes no representation or warranty as to the accuracy, timeliness or completeness of
any of the information or data herein, or the content on any website linked to this publication, or for
services or products referred to in the publication. Any reader of this information or data accepts the
same as is, with all faults, and assumes all responsibility for the use thereof, and further covenants and
agree to hold Tidewater Enterprises LLC, Block Builders LLC, Kris Haskins and any of its members &
affiliate members harmless from and against all damage, loss or liability arising from any use of said
content, in consideration for having made this information and data available. Any reader of the
contents herein should obtain independent verification of all information and data contained herein.
Tidewater Enterprises LLC, Block Builders LLC, Kris Haskins and any of its members & affiliate
members disclaims, any liability, any and all damage, loss, whether direct, indirect, or consequential, as
a consequence of the use and application of any of the techniques or contents performed by any reader..
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MY GOAL IS TO HELP YOU GET YOUR HANDS ON SOME OF THESE..…

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 DEDICATION
I’d like to dedicate this book to my beautiful wife Princess, and one and only baby girl, Taylor. They are the reason I can
continue to be creative. Watching Taylor grow up is a painful but joyful experience. It seems as though she’s growing up
over night. Every time I go out of town and come home she looks like a different person. My wife makes sure I am well
taken care of as she keeps our family together, you are the glue.. You are truly a gift from GOD. You both are my
inspiration and I do this so you will have a better life. My goal is to deliver positive and meaningful information to
individuals that want to further their knowledge in real estate investing.

WHAT ARE PEOPLE DOING WITH MY COURSE????

Antonio Edwards- Over $12,500 on 1st assignment deal

I saw you speaking at our local real estate

investor’s association, TRIG. It has been a
blessing to work with you. I too was in the music
business for many years. After using your course
material, I was able to learn the tools and skills to
wholesale my 1st property……. I now understand
several of the other tools investors use including
the NEW “no money down deals”…..
I am now in the business full time and I’ve done
over 10 deals. We are also doing several deals
together, Thanks for your time and support!!!!!!!!

Hey Antonio, I thank you for your work ethic and keeping me involved in your life!!!!!!

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Over $4,500 on wholesale deal
I highly recommend everyone take advantage of this
training. I have a lot of real estate experience and
might have found this deal, but Kris is the one who
made it happen. There were things he was able to
do that I couldn’t have done without him.
-Terry Trexler
Insurance Broker
Chesapeake, VA

Hey Terry, thnx for joining my monthly coaching club. That house was in very bad shape & the roof was
falling in but we still made out good on that deal. I look forward to our next one.

Over $5,000 on 1st assignment deal

Also used no money down strategies to buy his own home

I did my 1st wholesale deal with Kris. It was a

great experience. I knew if I worked hard and
looked at several deals, Kris would be able to help
me put them together. Our wholesale deal was
very challenging. Our buyer had an attorney that
was extremely slow. As time went on our seller
was getting anxious and was ready to back out of
the deal……… We got it closed and moved on the
next deal, Thanks for sharing your knowledge and
experience!!!!!!!
-Paul Abercrumbie
2nd Time Around Owner
Suffolk, VA

Hey Paul, that was rough deal but you’re one shrewd businessman; I look forward to our next deal
together!!!!

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Join therealestateRoundup.com Monthly VIP Coaching Club
We meet monthly….

walk through houses together…

meet at property renovations. You get all aspects of investing, “HANDS ON”..

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Table of Contents
Table of Contents .................................................................................................................................................................. 12
INTRODUCTION ..................................................................................................................................................................... 14
Pictures of my RIAA awards .................................................................................................................................................. 16
MY HISTORY & WHY REAL ESTATE… ..................................................................................................................................... 17
PROGRAMING YOUR MIND TO BE A SUCCESSFUL REAL ESTATE INVESTOR......................................................................... 21
HOW TO GET ORGANIZED Featuring MY SECRET DEAL BOOK ............................................................................................. 29
PERSISTENCE… DO YOU HAVE IT? ......................................................................................................................................... 33
GENERATING AND PRE-SCREENING LEADS ........................................................................................................................... 34
THIS IS MY OLD SYSTEM.. I was crazy!!! ............................................................................................................................... 37
MY NEW SYSTEM REVEALED, I got educated!!! .................................................................................................................... 40
Take the “YOU” out of your system (Save YourSelf Time, Energy & Money!!!) ................................................................... 41
REAL ESTATE WHOLESALING: Get a check in a matter of weeks .......................................................................................... 42
QUICK REFERNCE WHOLESALING FLOWCHART .................................................................................................................... 44
KILLER MARKETING & ADVERTISING IDEAS .......................................................................................................................... 45
SAMPLE OF MY DOOR HANGER ............................................................................................................................................ 46
CODE COMPLIANCE- Code violations & Condemned properties.......................................................................................... 52
BUSINESS CARD$ & what they should say! ........................................................................................................................... 55
SETTING UP YOUR FREE WEBSITE in 48 Hours, (or less) ....................................................................................................... 61
CONFIGURING YOUR ANSWERING SERVICE ......................................................................................................................... 65
ANSWERING SERVICE SCRIPT ................................................................................................................................................ 68
CREATING MASSIVE CREDABILITY, even if you’ve never bought a house ............................................................................ 73
COPY OF MY THANK YOU LETTER ......................................................................................................................................... 74
Copies of my referral letters ................................................................................................................................................. 76
SECRETS WHEN TALKING TO SELLERS ................................................................................................................................... 82
LIGHTENING FAST DEAL ANALYZING..................................................................................................................................... 86
Property Information Sheet (PIS) .......................................................................................................................................... 87
WHOLESALING PROPERTY EXAMPLE #1 Fig 41-L ...................................................................................................... 90
Fig 41-M ................................................................................................................................................................................ 91
WHOLESALING PROPERTY EXAMPLE #2 Fig 41-0.................................................................................................................. 92
LOCKING DOWN THE DEAL Signing the contract & using contingencies so you don’t get sued .................. 95
DEAL INSURANCE Preventing sellers from backing out of your deals .................................................................................. 97
STANDARD MEMORANDUM OF CONTRACT Fig 56-C ................................................... 100
STANDARD AFFIDAVIT OF UNDERSTANDING Fig 56-D..................................... 101

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WORKING WITH AGENTS .................................................................................................................................................... 102
SECRECTS TO FINDING INVESTOR BUYERS includes sample ads & scripts ......................................................................... 104
6. Using realtors to list & sell houses you don’t even own ......................................................................... 114
SHOWING HOUSES MADE EASY .......................................................................................................................................... 116
THE EASY WAY TO SHOW HOUSES OCCUPIED WITH TENANTS .......................................................................................... 117
GET YOUR ASSIGNMENT FEE & PICK UP A CHECK!!! .......................................................................................................... 119
QUICK REFERENCE WHOLESALING FLOWCHART ................................................................................................................ 119
STANDARD CONTRACT ASSIGNMENT ADDENDUM ............................................................................................................ 122
UNDERSTANDING THE REI TOOL BOX & BUYING HOUSES WITHOUT BANKS .................................................................... 123
BUYING HOUSES “SUBJECT TO” the new no money down ................................................................................................. 126
THE “SUBJECT TO” FLOW CHART ........................................................................................................................................ 129
Copy of HUD-1 Settlement Statement of a Closing using “subject to” tool ....................................................................... 132
........................................................................................................................................................................................... 132
........................................................................................................................................................................................... 132
 Copy of HUD-1 Settlement Statement of a Closing using “subject to” tool ............................................................... 132

BUYING HOUSES USING OWNER FINANCING also called SELLER CARRY BACK ............................................... 134
OWNER FINANCING DEAL FLOW CHART 1 ......................................................................................................................... 135
OWNER FINANCING DEAL FLOW CHART 2 ......................................................................................................................... 136
OWNER FINANCING DEAL FLOW CHART 3 ......................................................................................................................... 137

INSIDE INFORMATION ON LEASE OPTIONS- ..................................................................................................... 138

YOUR SHORTCUT TO REHABBING PROPERTIES….. flipping houses .................................................................................... 144
CONSTRUCTION ESTIMATOR & CONTRACT ........................................................................................................................ 145
VALUATING FLIPS ................................................................................................................................................................ 147
FLIP WITH CONFIDENCE. USE THE SAME COLORS- pictures of my renovated houses ...................................................... 149
ADVANCED TRAINING FOR ALL COACHING CLUB MEMBERS: ............................................................................................ 152
SUGGESTED READING & BIBLIOGRAPHY ............................................................................................................................ 153
STANDARD AGREEMENT TO SELL REAL ESTATE ............................................................................................................... 154
STANDARD AGREEMENT TO SELL REAL ESTATE ............................................................................................................... 154
Standard Note ..................................................................................................................................................................... 157

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 INTRODUCTION
Thank you for taking the time and effort to invest in your future and in your career. You could be
anywhere in the world and yet you chose to take time out of your day and be with me, I sincerely thank
you... The fact is the percentage of Americans that spend any money on education after institutional
learning is extremely low. You have proven to be one of the few that are serious about building
wealth through the sport of real estate acquisition and finance.
This course is jam packed with my secrets and specialized tools to prevent you from making the
same mistakes I made. But before we go into what this book is about, I want to let you know what it is
not. This book will not make you a millionaire in the next 30 days. That will require several
months/years of focus. It will not show you how to make money without effort. It will not make false
claims and go into meaningless facts to entertain you to keep you reading. It won’t give you
information you can’t use in today’s market. This book is designed to be a “how to” book. I want to
make sure you, my family & friends all know exactly how to do real estate deals. It can be followed
step by step all the way to picking up the check.
There are several tools you can use to get paid in real estate. Some are extremely advanced and
carry more risk and others have no risk and are easier to learn and master. I have meticulously put
together this course to cover some of the risk free tools you need to either get started or to grow your
real estate investing business. My goal is to coach you through my complete wholesaling system and
tools. I will also give you a brief understanding of other more complex tools all real estate investors
need to stay in business. Tools we will be covering are: mindset, wholesaling system & finding
investor buyers, marketing/advertising, generating & pre-screening leads, deal flowcharts and
rehabbing (Flips). Other ways to get paid which I will provide an overview but will require more
advanced training are: owner financing/seller carry back, subject to’s and lease options. These are only
a few areas money can be generated in real estate, but are the back bone to getting paid the fastest. I’m
providing overviews of the advanced tools so you’ll be able to get an overall understanding of how to
put those types of deals together. This will allow you to be able to converse intelligently with other
investors (extremely important) & understand other speakers at seminars. But only after you
understand the basic tools will you be able to implement the advanced strategies. I’ve used all of the
tools mentioned above but there are numerous other ways to get paid in real estate. You can download
all of the documents you’ll need to put your deals together on my website
www.therealestateroundup.com. You can access the more advanced training with a membership to my

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monthly coaching club. This membership gets you free access to all of my deal making documents, a
proof of funds letter to put your offers in, weekly real estate tips & motivation, deal structuring
assistance, access to my buyers list & email/cell phone access to me for assistance. You can email me
at kriz1204@gmail.com or go to my site at www.therealestateroundup.com to find out more about it.
Please understand that I take the seriousness of being a real estate investor as paralleled to being a
brain surgeon. Being a brain surgeon is a lot more complex and takes many more years to learn, but
some of the same basic concepts apply to both. Not only will you need specialized training to
understand your craft, but also hands on experience to grasp the concepts in the real world. Just like
the surgeon will not be able to perform at the top level without years of education and ongoing support,
you too will not be able to become a full time investor with just 1 course. Whether it’s my course,
which is one of the best in the business, or any other course in the market place…. IT JUST CAN’T
HAPPEN. You will need to continue to educate yourself on this business so you can stay ahead of the
competition.
You clearly understand the value of education. The real estate business involves huge amounts of
money. One small deal, a small house can cost over a hundred thousand dollars. How much do you
think one mistake can cost you? $5,000 maybe $10,000 or more, but taking this course has allowed
you bypass all of the mistakes I’ve made and learn from them as opposed to having to live them. We
as investors sometimes spend upwards of $30,000 a month on renovations depending how fast or slow
you’d like to move. There have been months where I’ve spent over $60,000 on property renovations.
That’s more than some people in this country make in 2 years. The price of ignorance FAR outweighs
the price of education. I have dedicated years of training and hours of studying this sport to become
successful. So, please take the time to study all you can and continue your monthly membership with
me so I can help you get more deals closed…..

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 Pictures of my RIAA awards

702 self titled

album
“702”
Motown Records

Dave Hollister

“Ghetto Hymes”
Dreamworks Records

Emenim/50 cent

“8 Mile soundtrack”
Interscope Records

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 MY HISTORY & WHY REAL ESTATE…
Music was my first love. My interest in music has been a life long journey having been in high school
marching band and in the orchestra at Hampton University. I graduated from Hampton University in 1999 with
a Bachelors of Science in Music Engineering Technology. While there, I began producing music and signed
my first production deal with a local production company called “Hung-lo” productions. After signing that
deal, I quickly learned my love for making music had nothing to do with the music business. Making music
doesn’t always make money. In reality, the music business has almost nothing to do with making music. The
“music” part of the music business counts for only about 10% of the spectrum when it comes to a hit album.
The other 90% is the business aspect of the music business. While at Hampton U, I was actually able to do my
internship at Wyndmark studios in Virginia Beach. This internship allowed me the opportunity to record with
various artists & producers. I’d have to say working with Pharrell Williams on several different projects
afforded me the most education and experience. I won’t get into the countless number of artist’s music we
worked on but just note it was extremely busy and never a dull moment. Needless to say my time there was like
a producer’s dream.
Upon graduating from HU, I was hired as an audio engineer for the university. My job was to provide all of
the sound reinforcement for major events such as graduations, presidential speeches, basketball/football games,
special events etc. etc. I still worked in the studio when I had time. After only working at HU for 1 year, I was
fired and have never been able to hold a job ever since. I was let go on 4-19-99 and it hurt me deeply even after
being fired 3-4 times in the past. I was so afraid of losing my steady pay check. At times I was paid upwards of
$1,500 per week while at HU. Along with being unemployed came sleepless nights and an upset stomach. The
world seemed like a very cold place where no one really cares whether you exist or not. A place where no one
cares if you’re sick or healthy, rich or poor, have a car that works or even a family that loves you. The only
thing that mattered to the rest of the world was if my bills were on time and if my credit was above 700, so it
seemed. I struggled for several years and after putting in countless hours in the studio, I was able to work with
recording artist “702” and “Dave Hollister” on his 1st album. My biggest project was when I hooked up with
another great producer, J Praize, and produced 50 Cent’s 1st single titled “Wangsta”. This one song changed my
life. I went from having several hundred dollars in the bank to having 6 figures in the bank. Times were good
for several years as I traveled and recorded from coast to coast.
After 3 years, the music publishing checks dwindled but I still had a music producer’s lifestyle. The music
business is one of those businesses that you must look and act like you have money in order for people to
believe you. You also have to travel to make sure your face is seen at award shows, clubs, video sets and in the
hot places where all the other “popular” people are hanging out. In the business we called it “politic-ing”
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pronounced-poly-ticking or Polying. Polying is when you mingle with other music biz people in hopes to get
on the next hot album or movie soundtrack. This lifestyle is extremely expensive because all of the shows are
in hot cities. I remember going to the billboard music awards in Miami and walking the red carpet. I was
spending about $500 a day at times when I calculated it all up. We had an expensive rental car, plane tickets,
hotel rooms, drinks, VIP passes, last minute studio time, expensive food and you know you have to buy drinks
for all the people you are schmoozing so you can get on their next album. To have a $3000 week as an expense
in this business is not uncommon. This lifestyle is actually the opposite of real estate where all the real money
makers don’t care what people think of them. Real estate investors actually don’t want anybody to know what
they are doing just in case the IRS gets wind of it. They are usually very low key people. During that time I
was able to make a few good decisions and buy 3 pieces of real estate by using my money from the music
business. I partnered with other investors and used my credit to get loans to buy houses. But I soon spent all
the music money and was back to working for money looking for my next big hit song. You see, in the music
business you can write a hit, make a hit track, record a hit song, even have a hit video, but if your artist doesn’t
have the exposure and air play and financial backing then the song won’t be a huge hit. I worked hard
recording several songs and albums but none as big as the past. I quickly learned that being rich was an
illusion. Actually the word rich means just having a lot of money in the bank. No one ever told me having
money (being rich) is temporary. Many times in our country people have hit the lottery and been rich and with
time they come back to being poor again. It didn’t make sense to me how I could have over a hundred thousand
dollars in my bank account just a short while ago and now be down to $80. Yeah, that’s right $80 in the bank…
I thought I was rich but in reality I had always been poor, in my mind.
Then I read “Rich Dad Poor Dad” by Robert Kiyosaki. This book helped me understand the huge difference
between being rich and being wealthy. You can be rich and still be trading hours for dollars. If you in any way
trade hours for dollars you will NEVER be able to become wealthy. Wealth comes from having a system that
generates monthly PASSIVE cash flow and grows over time. The money needs to work for you and come in
(to you) without you having to work for it. We want the cash flowing towards us and not away from us,
passively. There is not enough time for any 1 person to earn enough money to last for a lifetime. Even if you
make $250,000 per year, and something happens to you which causes you to stop working…. What happens to
the money??? It stops coming in. The real estate business has taught me how to “buy money”. What do I
mean by buying money? This is when you find a great deal on a house and lock in your profit when you buy it
so cheap. I’d much rather buy money as opposed to work for it. I can only work 1 hour at a time, in 1 location,
1 day at a time, if I’m working a job or for myself. But being an investor, you buy deals and have the deals
working for you; you have your money working for you. The money can work 24 hours a day in several
locations. There’s no better feeling than having several house renovations working at one time and then they all
sell within a few weeks of each other. That’s called having your money working. I’ll demonstrate this concept
later in the book. You see, our money today is a currency. This word actually steams from the word “current”.
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We all know what a current is. We’ve seen rivers and creeks have a current. In electricity there is always
current that keeps the power on. The human body is nothing but a current of blood flowing through it and
money is no different. In order for you to maintain your wealth your money must ALWAYS be moving. It
must be moving in the direction towards you. It’s easy to have money flowing away from you, everyday life
and bills can do that. Some people actually park their money in the bank. I’ve done this in the past and I know
from experience that the bank is the absolute worse place to park your money. The bank may give you 1-4%
return on a CD(Certificate of Deposit). But this really equates to 0% because of the negative impact inflation
has on your money. So if you’re earning 3%, which is high today, in reality you’re really only earning 0%.
Because we all know inflation is at least 3%. So you’re money is losing 3% and gaining 3% in the bank.
Which brings us to the next question.…? Will you and I make some serious cash in the next few months????
I have been a student of acquisition and finance since 2003 but I’ve been self employed since 1999. Still to
this day I attend boot camps, real estate training, I buy other people’s courses and I have several mentors. I’ve
served as the Vice President of the Tidewater Real Estate Investors Group (TRIG) from 2009-2011 where I
worked with other investors to create a network where people can come to learn through our monthly meetings.
My time is now filled with training with people like you and doing deals so I don’t really have the time to focus
on that any more. They meet every third Tuesday of each month at a local hotel. I’m now buying several
houses a year and I have a talk show where I interview the top real estate investors in the business.

Tip- Hear interviews of the top real estate investors in Hampton Roads at
www.therealestateroundup.com

Although I enjoy flipping and owning houses, it has come time in my life to share what I have learned about
real estate. No matter what you or I do in this short life in the end there are no winners. We all lose in the end
and end up in the box. It doesn’t matter how much money you make, deals you do, people you teach or how
famous you get. Life always ends up in one place. So make your life count and do what you love. I never
thought I’d be writing a book but life has a way of taking you all types of different places, if you let it. I
remember reading a similar sentence from one of my mentors, Lonnie Scruggs, and thinking, “I’ll never want to
write a silly book, that’s for the old timers, I’ll never even have the time to write a book”. But here it is and I
hope it will bring value to your real estate investing career and to your life.

PAYING TAXES- My last thoughts on “why real estate” and how you can learn from my mistakes are
about taxes. I have been audited by the IRS, yes the internal revenue service. An audit is where the IRS wants
you to come in and meet with them to verify your tax returns for a certain year or number of years. In my
particular situation, it was 3 years earlier that I was being audited for. I would not wish this on anybody, but it
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did teach me a valuable lesson. When I went from making no money to making big money, the IRS was right
there ready to get their cut. No, I wasn’t paying taxes properly but I didn’t know who to call to get my taxes
done correctly. In the past, I’d been using the tax preparer next to my recording studio. He was good, but he
didn’t do business taxes neither did he do real estate taxes. I didn’t have a mentor to show me what
depreciation was. I didn’t know how to write off certain purchases and I didn’t even have a CPA or a book
keeper at that time. You better believe I have both a book keeper & a CPA now. When you get audited by the
IRS it’s like going to the doctor because you have a deadly disease. You get this huge packet in the mail and
you have to call your assigned auditor and schedule an appointment. You then show up to the huge federal
building that looks like the beginning of the Movie “the Matrix” inside. Everything is painted green and all the
employee are dressed in cheap suits. There are federal officers with guns at the front door to let you in and you
only get in with an appointment. I met my auditor and he had all of my financial life spread out on a table from
2 specific years. We did the audit and it was a horrible experience. Since I was in the music business a lot of
my expenses were paid with cash due to all of the partying and schmoozing I did. To make a long story short, I
ended up owing an additional $11,000 in back taxes to the IRS for a particular year. My past had just caught up
to me real fast by not having the proper systems in place such as a book keeper and a Certified Public
Accountant CPA to assist me in keeping Uncle Sam off my back. Plus both of these expenses are tax
write offs for your business.
Real estate provides several forms of tax shelters for investors. We can write off all of the repairs
we do to the property throughout the year. We get to depreciate a percentage of the value of the house
against our income. This means every year just for owning and operating investment property Uncle
Sam gives us check that we can deduct on our taxes, what a great gift. So if your income was $80k and
one of your rental houses was worth $100k, you get to subtract a portion of the value of the house from
your $80k tax bracket income each year. Imagine if you owned several houses with a value totaling
over $1 million?? That would be a huge write off for you. Plus we get to write off all of the interest we
paid during the year to the debt servicing (loan) that’s on the house. All of these tax advantages are icing on the
cake on top of cash flow and appreciation of the property.

Tip- I’d like to recommend my CPA to you. Her name is Lynn Becker and she can be reached
at 757-288-6161 or by email at lbeckercpa@cox.net. She also does book keeping. Listen to an
exclusive interview with my CPA at www.therealestateroundup.com

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 If you are an investor and/or self employed, if you are flipping homes and wholesaling please don’t get caught
up by letting Jackson Hewitt or Liberty taxes to do you tax returns, you’ll be sorry you did. A CPA is the only
person that will be able to properly recognize and account for all the tax deductions that are due to you.
Through the last several years, we have seen the biggest credit crises in American history. Banks are scared
to lend and people that have cash are even more scared, unless you know who to talk to. This tightening will
create extreme opportunity for the few people that recognize it and know how to profit from it. This is the best
time to be buying and selling as much real estate that you can get your hands on. If you are reading this then
you have made the decision to be one of the people who will benefit, as I am.

PROGRAMING YOUR MIND TO BE A

SUCCESSFUL REAL ESTATE INVESTOR
There are a few key basic concepts that must be understood about the mindset of a full time real estate
investor in order to become one. Along with discussing this mindset, I’ll need to briefly discuss our main
stream media news on today’s radio & TV and how it affects our society’s thinking. The media is a very
powerful tool when it comes to the “air of legitimacy” in our society. Knowing this, you need to assure that
your name never ends up on the news in a bad light. The “air of legitimacy” that the news can create can
literally destroy your local reputation so be very careful. This “air of legitimacy” I’m referring to says…. “If
it’s on the news or the radio, if it’s in the newspaper then there must be some sort of truth to it.” They wouldn’t
just print a lie, would they? It seems as though every time I listen to the news there’s some form of bad news.
Whether it’s a bombing, a sex scandal, doom and gloom, a war, an oil spill or the housing crash, it always
seems to be bad. I believe the news (media) has only 1 purpose. Its sole purpose is to gain & keep an audience
listening or watching. If you don’t watch it, then the news will be canceled. They will make stories sound as
bad as possible just so people will watch and keep ratings high. So, don’t waste your time listening to how bad
the housing market is. It’s just not true. Most of the time when I walk into a home owner’s house and start
discussing the price I can pay I usually say “the housing market is down, haven’t you seen the news lately”.
Every time I say that one line, I usually get the same response from the home owner saying “yeah, you’re right I
know I can’t sell my house for what it’s worth”. This is only a strategy I use to get a lower price for me but I
really am against critics. I don’t know of 1 reporter on today’s news that buys and sells 1-2 houses a month.
Do they even buy any houses for that matter?? How many houses has Glenn Beck, or Katie Couric, Sean
Hannity or Bill O’reilly bought in the last 6 months????? I don’t know and I’m sure you don’t either. I’m not
against any of these people. My point is, make sure you’re listening to people that are actually doing this
business and not to people that are just talking about this business ie. (critics & correspondents). What are these

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people doing for our economy anyway? At times they will report foreclosures are up 17%. Then at another
time they’ll report home sales are down 25% blah, blah…. But they never help our housing economy in giving
jobs to the community. This negative press does however create an underlying attitude in the community that
inevitably leads to people becoming scared which makes them slow to buy a house. This attitude creates more
renters in the market which allows me to raise rents but I’d much rather sell than rent.
When you flip a house you are doing a good thing. Contrary to all of the negative press you’ve heard about
flipping houses, it actually helps to stimulate our economy. Think about it, you’re helping our community in
several ways. Every house you sell, you’ll be helping 2 realtors (buyer’s agent & seller’s agent), the loan
officer that underwrites the loan, the contractor that does the renovations, the title company that closes the loan,
the store that sells the supplies, the increase in city real estate taxes etc. etc.. I say this because flipping houses
has a bad reputation and contrarily you should feel proud of what you are doing for your community. I have
bought sold and several houses before the bubble and after the bubble and I know a bunch of people that are
doing the same, AND YOU CAN TOO!!!!! Just make sure you don’t listen to the main stream media that says
the housing market is down and nobody can sell a house. Yes it’s going to be a tough road, but there are people
all around you doing this business every day and I’ll show you exactly how to find them in this course blue
print.

To me, mindset is the daily thinking of individual; short and long term thinking. Are you a person that
thinks more about ways of making money or a person that thinks about how you can spend more money? This
question is very important if you want to be successful in real estate. You can’t become a millionaire real estate
investor if you don’t first see it in your head. I’ve read that the human brain thinks up to 70,000 thoughts a day.
We will need some of those thoughts to be forming a reality that you can buy & sell real estate, even if you
don’t have any money, credit or savings. Imaging if you thought about being an investor only 1% of your time
during the day?! That would be 7,000 thoughts towards how you can make this real estate game a reality for
you. Picture your life with 1 rehab project going every month. Picture making offers to home owners and
realtors and wholesaling 1 house a month. What will you have to do to get there? How many serious cash
buyers will you need to wholesale 1 house a month? How many signs will you have to put out, how many door
hangers will you have to hang, how many sellers will you need to talk too?????? How much capital will you
need in order to flip 1 house a month? It doesn’t have to be your money, but you will need access to money to
participate in the sport of acquisition & finance.
Real Estate has created more millionaires in the history of America than any other industry. I think we all
have heard this before, but it’s so weird that there are not more people doing it. The sport of acquisition &
finance has been around for many, many years. One of the biggest and best deals I’d like to bring to your
attention and I hope will spark your imagination is the Louisiana Purchase. We all covered this in grammar

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school but I’d like to show you, in comparison, how you need to look at this sport. Take a look at the map
below. The land mass covered about 800,000 square miles…..

Made by Thomas Jefferson & the US government, it’s still the biggest real estate deal in US history. Just think
about yourself and how small your financing needs are regarding having to come up with a measly $100,000 to
buy 1 house. Well Thomas Jefferson wanted to make the purchase but didn’t have the $15,000,000 that France
was selling it for. It seems like our past president was an athlete of the sport as well. He used OPM (other
people’s money) and borrowed the funds. This deal fascinates me because this sport is so old and to this day I
still hear people say how they don’t want to get into debt. Back in 1803 $15 million was a huge amount of
money and according to the Consumer Price Index that same amount of cash would be roughly $211.6 Billion it
today’s dollars. The US borrowed $15 million at 6% interest for 15 years to do this deal. This is just like any
other real estate deal it just has a few more zeros and it involves the government.
My goal is to compare your needs of finding financing to the needs of everybody else who’s looking for
financing, even the US government. So many times I meet people who say they don’t have any time or money
or their credit it bad. I challenge you.. Don’t be one of these people. We all have these same problems. They
can present a serious challenge but are not reasons to stay away from real estate investing. Most people I know
in the business, including me, have 1 if not all 3 of the same problems.

Tip- Don’t be scared to get into debt to do this business. Every investor I know is in debt up
to their eyeballs. You need to be willing to get into debt if you want to be profitable in real estate!!!

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There are 2 ways to approach this business. You can either approach this sport using conventional wisdom
(mindset) or non-conventional wisdom. Conventional wisdom is the wisdom that is still teaching the same
subjects to our children since the early 1900’s. It is the same wisdom that plagues America into thinking you
need a bank to buy a house. This wisdom says: have good credit, approach the bank, fill out bank application,
pray bank approves me, get loan if bank likes me, hope & pray bank will give me another loan. I used to be one
of these people. Thank goodness I learned the right way to play this sport, and it doesn’t involve a bank(or your
credit). The other way approach this game with a non-conventional mindset which says: use other people’s
credit, I understand I can only get a few loans in my name, use other people’s money(OPM), take over other
people’s loans, create notes to finance deals, use IRA money to fund deals etc.etc… The 1st type of person will
be limited to doing only a few deals at a time because the bank will only qualify you for as many loans as
THEY<the bank> feel you can handle. You have my word that if you rely on these conventional ideas then
your real estate business will be short lived. I have seen it time and time again where investors were getting
bank loans and then the bank decided to change their lending policy and the investor can’t buy any more. The
2nd type of person can do as many deals as he/she can find because he has no “loan qualification” process. Most
of his money comes from other people. To keep on track with our book, you won’t need any money to do the
type of deals in this system. We will be focusing on wholesaling which doesn’t require any money. Once we
get into actually buying and flipping a house, then you will need money or have access to it by getting into debt.
Debt is not always a bad thing. Debt is good when you are using it as leverage to make money or to achieve
a goal. The concept of leverage was extremely foreign to me until I got into the real estate game. In the past I
believed I needed to have money to buy a house. But with leverage, you can pretty much buy any house. The
leverage I’m referring to is FINANCING!!! I have a diagram below that can help explain how leverage works.
Archimedes, an ancient Greek engineer & mathematician, claims that with enough leverage huge things can be
done. His statement has been translated over time into “Give me a big enough lever and I can move the world”.

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 World

LEVER
-You can move the world
with the proper leverage
-You can buy any house with
the proper financing

With the proper financing, you can acquire any house. With the proper leverage a small amount of pressure
will move a large amount of mass. I would much rather buy a $300,000 house with the payments as follows: 50
year fixed loan at 1% interest rate, payable every 3 months with the loan amortized over 50 years. As opposed
to a $100,000 house with payments: 5 year adjustable rate starting at 9.5% interest, payable biweekly, 10 points
origination fee with the loan amortized over 5 years. These 2 examples are extreme but the financing is more
important to me than the house. The house & the financing are 2 completely different entities and one has
nothing to do with the other.
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 Tip- In my advanced monthly training membership you’ll learn how to actually move
loans(mortgages) from one property to another. This process is called “the substitution of collateral
note”. Make sure you’re signed up for my monthly real estate training membership to get:-updated
proof of funds letter-unlimited cell phone access-deal structuring assistance-weekly real estate secrets
& tips, FREE access to all real estate documents

You can have a beautiful house with terrible financing and vice versa. There have been many deals that I
wanted to buy but the financing made it impossible. So keep in mind when you’re looking at investment
property, the house stands on its own and the financing stands on its own. It is not the fault of the house there is
an 11% loan on it. Having great financing is far more important than having a great house, every time. I have
some loans that are NO PAYMENT loans. Have you even heard of a “no payment loan”? One day while I was
in the airport in between my flights, I randomly went up to several people and asked if they had ever heard of a
no payment mortgage. It was shocking to see the responses I received. Every person had a similar response of
something like this: “No, I never heard of that, I don’t think you can even do that. What bank would do a no
payment loan??… Oh yeah, but if you are reading this book, then you know RE investors use these type of
loans on a consistent basis to buy and sell houses. There is a right and wrong way to do this business. Getting
conventional loans with huge monthly payments which you personally guarantee is the WRONG way to
approach this business. If you do it this way you won’t last very long. Using no payment loans and not
guaranteeing loans is the correct way to get ahead in real estate. I must admit, it took me a very long time to
grasp and understand this concept. I had heard all of the gurus talk about this stuff but I just couldn’t quite
comprehend it. Hopefully reading this will shorten your learning curve and show you the right way to do this
business.

Tip-no payment loans are an advanced strategy and will be covered in the monthly training
membership. Leverage is the key secret to the real estate business. Banks will give you a loan to buy a
house, but not stocks, bonds or mutual funds.. Why do think that is???

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 There are 2 types of debt; good debt & bad debt. Good debt is money you borrow that you don’t have to
personally pay back. An example of good debt is a house loan that a tenant is paying off for you. Or debt that
you borrow to flip a house that has monthly payments and you sell the house to pay off that debt. With good
debt you don’t actually have to pay the debt down with your own income. I have built my RE empire on debt. I
currently have almost $2 million of debt I’m responsible for but I’m not actually paying for it out my personal
pocket. There are 2 ways I pay for my debt. The 1st way I pay debt down is by letting the tenants pay it down
monthly with the rent. My mortgage payment on my rental will be $850 and the tenants rent will be $1050 or
more. A portion of the rent goes to pay down the principal of the loan until it is all paid off. So I can take out
loans for real estate and have somebody else pay the entire loan off for me. Isn’t that a great system??? The 2nd
way I pay for debt is by selling the houses that I buy to fix up. Let’s say I took out a loan to buy and fix up a
house. Once the house is renovated, placed on the market and sold then I’ll pay off the underlying loan and
keep the difference as profit for me. I let the end buyer’s new loan pay off my existing loan on the house. I
never end up paying back the loan out of my own pocket. These types of debt are used to build businesses and
real estate empires. On the other hand, bad debt is debt that you are personally liable to pay out of your pocket.
It is debt that you must personally guarantee using your credit and then pay it back with your hard work.
Examples of bad debt are; personal credit cards, your personal home mortgage, student loans(but can be used to
generate cash) personal and car loans, payday loan etc. I’ve had both good and bad debt and I always work on
paying down the bad debt first, then taking the income from the good debt (tenant) to pay my loans down.
Some people call that power pay down. You can do this business… The art of using other people’s money is
just that, an art form. Yes it will take some time to develop an understanding of the concepts. But you are
working with the right team to get you on track…

One real estate investment rule of thumb: it’s going to take at least 100 leads to get a great deal. That
means you’re going to have to look at about 100 houses before you get a deal. Lately, I’ve been able to get a
deal in fewer than 100 leads but that’s just because the high amount of foreclosures on the market. Keep in
mind that your first deal is always your hardest to get. I don’t know why but I have experienced it time and
time again working with other new investors. They will be looking for months and months but after they get
their first deal the next 3-4 come very fast. Don’t get deal-itis and get into a bad deal. This is where you want a
deal so damn bad, you just go out and buy a house that doesn’t meet the “deal” criteria. I remember my first
deal. It took me several months to get and it was a nightmare. I really didn’t even know what I was doing
but I was determined. After going over budget about $15k, I knew I had to get educated in the
business. It was just pure luck that I had bought the house in a time where the market was booming
and I had a buyer even before the rehab was done.

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 What does a real estate investor do on a daily basis? We look for deals and we look for money. I have 2
cranks in my business. The first is a huge wheel that I have to continue cranking so that I will have a steady
flow of houses coming into my portfolio. If I don’t have houses, then I don’t get paid. The next wheel I’m
always cranking is the money wheel. Once I get the house, I must then have a way to buy the house or (take it
down) in investor terms. So, I’m constantly oiling the house wheel and the money wheel. Every day I’m
looking for more ways to buy houses and more ways to borrow money to buy them. Some months I’m looking
for more money because I have more houses to “take down”. And other months I’m looking for more houses
because I have enough money to buy the next house. You’ll be focusing more on the house crank. The reason
for this is because I can buy any house from you that’s a deal. Plus you need to focus on wholesaling first so
you will understand how the numbers work in a deal…
Fact: Roughly 20% of the population controls approximately 80% of the wealth in the country? That means
in your city, 20% of the people are collecting 80% of the rents. I’ve been told that the 80/20 rule is now
actually 90/10. And the ratio is really moving towards 95/5 as we continue with this economy where the haves
and have not’s are getting farther and farther apart. The middle class is being wiped out as more people earn
less but still have to spend the same to live. This fact is extremely scary but it’s the same for most other
countries as well. In your town right now, if you go the assessor’s office and look up some local landlords you
know, you will see that the majority of them own more than one house. I’d heard this rule in the past and I did
believe but I wanted to test it for myself. You see, I come from the “trust but verify” school. So in my
courthouse runs one day, I typed in a few names of landlords that I know. Surely this wouldn’t be the case in
my town, I thought. As I started typing the names, each and every name that I typed in owned several pieces of
property. I mean some of them had like 20 to 30 houses. Could this be true? Right under my nose the 80/20
rule was still in effect. This rule also applies to the working class. 80% of the population are employed by the
other 20%. So for every 10 people, 8 will be working for the other 2. I hope this will enlighten you to the truth
about the financial world around you. Which percentage will you fall into… the 80% or the 20%???? The rule
also says “20% of what you do on a daily basis will generate 80% of your income.” So let’s focus on finding
these deals and getting some money coming in fast to make sure you are in the 20% of the wealthy….

Highly probable events!?

Business is centered around the basic concept of “highly probably events”. I learned this concept from
studying Warren Buffett’s book “The winning investment Habits”. At the time I’m writing this he is the 3 rd
richest man in the world but in 2006 his base salary was only $100,000. Most successful business owners have
a low salary to avoid heavy tax burdens. They do this because it’s smarter to grow the company income not
your personal income. Passive income from a business is taxed in a different way than earned income.
Typically earned income is taxed at a much higher rate than passive income. Earned income is being paid for

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something you do. And passive income is being paid for something you own. Mr. Buffett has put himself in a
very low tax bracket by only paying himself $100,000 a year. Yet, he is the 3rd richest man in the world only
because he has started to donate a lot of his wealth to charity. His company, Berkshire Hathaway, has owned
and/or invested billions of dollars in Coca cola, General Electric, Dairy Queen(100% ownership), Geico(100%
ownership), The Pampered Chef and American Express just to name a few of the hundreds of investments. He
explains in his writings that he invests in “highly probable events”. This simple but genius concept is extremely
important when it comes to real estate investing. When you are buying a house to wholesale or fix-n-flip you
need to know what a highly probable event is in real estate. You already have a grasp of the concept by
purchasing my course. It’s highly probable that you’ll get a deal faster if you have a mentor & follow the steps
in my book. If you keep this concept in mind when you’re putting in offers and trying to determine a viable
investment property it will be hard to mess up. This type of probable event can be described as follows:

If 123 easy st. a 3bd/1bth 1100 square feet(sf) house in Hampton sold for $122k & 197 easy st. a
3bd/1bth 1082sf in Hampton sold for $115k & 43 Easy st. a 3bd/2bth 1144sf house in Hampton
sold for $134k THEN it’s highly probable that 159 Easy st. a 3bd/1bth 1120sf house in Hampton
all fixed up should sell for somewhere around $115k-$134k.

This example above is called a “highly probable event” in real estate. We call it running comps or comparable
sold houses in the area. Every successful investor in the world uses this same basic concept to get paid when
flipping houses. If you understand & master this simple concept you’ll be able to do this business.

HOW TO GET ORGANIZED Featuring MY SECRET DEAL BOOK

Continuing with the mindset portion of the course, we must move to organization. Organization is a
key part of being proficient in the real estate game. I know several investors in my town that are very,
very sharp guys but they refuse to get organized so I end up getting the deals they miss. There are 2
types of investors in the game: those that are organized and those that aren’t. The investor that’s
organized by definition will be able to do more deals than those that aren’t. If you have a simple
system that keeps your deals in one location it is much easier to manage several deals at once. I cannot
tell you about all of the meetings I’ve taken with people that are just not organized. I’ve come to the
point where if a person requests a meeting with me and doesn’t have all the information we need to
make a solid decision, then I just reschedule. It’s easy to waste a lot of time with people that are not
organized. They will try to bring you in on a deal and then the sloppiness will rub off on you. I

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recommend if you’re dealing with this type of person to either plan on spending extra time assisting
them or just walking away from the deal. One of the best ways I stay organized is by using my secret
“deal book”. The deal book will save your butt when you need to find documents, phone numbers,
names, addresses and pertinent information regarding a deal. Every single piece of information on
each deal will be in the deal book so you will know where to look when you need info on a particular
deal. I started using this system many years ago and I haven’t changed yet. It has been modified over
time but this seems to be the best way for me to stay on top of my deals. I have given you a picture of
my deal book on the next page…

The 1st set of The 2nd set of

alphabet dividers is alphabet dividers is
for prospective deals! for active deals!
DEAL BOOK

I don’t let my competition know how I keep track of all the houses I’m either trying to buy or are working on at
the time. In order to keep things rolling smooth you must have this deal book. Get a 2 inch thick 3 ring binder
and 2 sets of the alphabet dividers from Walmart or Office max. You’ll need 2 sets because 1 set will be for
deals you’re trying to buy and the other set will be for deals you have bought and are currently working on.
Notice in my book I have 2 sections. The 1st section is the alphabet dividers from A-Z that I’m holding in
my hand for deals I’m looking to buy. Then there is another set of dividers from A-Z for deals I’m
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currently working on. The alphabet will represent the 1st letter in the street of which the house is located. For
instance, if the house is 123 Easy st. then I’ll file that house in the E section of the book. If it’s 362 Strand then
it goes in the S section. If I’ve made an offer but the seller hasn’t agreed to my price then I file it in the 1 st set
of alphabet dividers. If I’m doing the rehab or have a signed contract from the seller then I file everything in
the 2nd set of alphabet dividers. So the first set is future deals and the 2nd set is current deals. This process is
very elementary but it has helped me stay on task and I can’t live without my deal book. I’m totally lost
without it. I developed this style of book keeping from Donald Trump. Reading several of his books, you can
tell he likes to keep things as simple as possible. He refers to his method of staying organized by using a 3 ring
binder in a few of his books. That’s where I got this idea and it has worked extremely well for me. He actually
takes his book with him when he looks at prospective deals. I keep it accessible at all times. So if you don’t
have a way of organizing your deals go out right now and spend the $15 to get your own deal book.
Another item I use to stay organized and to make sure I don’t forget the important things I need to be doing
in the day is my secret “little black book”. Before, I would write down my goals and objectives on loose leaf
paper & note cards. But I soon had so many notes that I couldn’t keep track of them all. I’d have note cards all
over my office, in my car and just scattered throughout my house. So I switched to the little black book which
you can pick up from wonderful Walmart (Wal-meezee) as well for about $9. I have taken a pic of it for you so
you can go get 1 if you don’t already have a way of tracking your ideas, goals & objectives for the day/week.
This book is made by Mead..

LITTLE BLACK BOOK

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It is extremely important that you have some type of book to jot down your ideas and your “things to do”. This
book should be pocket size so you can carry it with you throughout the day. It should also have a hard cover
and be durable so it won’t get beat up and ripped during your travels. You should be able to write all of your
objectives for the week in this black book. Through my research I have learned that it is best to write down
your objectives for the next day directly before you go to bed. When you do this, your subconscious mind can
work on different ways of accomplishing the tasks you write down. I have been doing this for quite some time
and it works very well for me. I’ve trained myself and made it a habit to bring my black book in the bedroom
and record my thoughts before I go to bed. You see, your subconscious mind works when you are asleep or
awake. The subconscious brain does not and cannot distinguish between day and night. Its job is to work on
solving the issues that you present to it…. So please, give it something to do. I challenge you to give your brain
a goal or a problem and watch it go to work for you. You possess the same brain on top of your body that the
men whom created the jet engine, the rocket engine, the sky scraper, the space shuttle, the atom bomb, the air
plane, the automobile, aircraft carriers, etc.…… Don’t you think you can get your brain to help you get started
in real estate investing??? Especially since I’m going to show you how to get paid on houses you NEVER
even own... Let’s put it to work, NOW!!! You won’t need credit, financing, cash reserves, or even a bank
account to this.
The decision making process of buying a house should take no more thought than your decision to buy a
pizza. Warren Buffet says he makes investment decisions just as if he were buying a pizza. He picks up the
phone and makes his investment and he’s done. And you should be the same with real estate. What do I mean
by this? Let’s see, it’s Friday evening and you’re thinking about what you’ll be eating for dinner. Next you
think hmm, I don’t want to cook tonight so I’ll eat out. You then think about how you don’t want to leave the
house. So, you call the local pizza hut or poppa john’s and order a pizza with your favorite toppings. That took
all of about 5 minutes. The longest part of the transaction was being on hold with the store. Buying a house
should be the same way. You look at the prospects, you (or your system) pre-screens the prospects, then you
analyze the prospect and decide whether it’s a deal, then make your offer. That was simple but it takes quite a
bit of training to get to that level. You are on your way. You can do this business….

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 PERSISTENCE… DO YOU HAVE IT?
The next quality you must possess to be successful in real estate is persistence. I have dealt with several
people, in fact several people have even taken me to lunch, but only a few seem to really want to put the time
into being successful. It is a prerequisite that all of the local investors that would like my assistance treat me to
lunch. I do this so I can gauge how serious they are about their careers. I remember one time a guy called me
out of the blue and ask me to assist him. We met for lunch and I gave him some great advice and then at the
end of our meeting he acted like he didn’t want to pay for me. If you ever have a time where you can take a full
time business owner or investor to lunch, please make it a point that you happily pay for their meal. Every time
I take out another investor that is doing extremely well in the business I always make it a point to treat him/her.
It will show them that you thank them for their time as they could be somewhere else making money instead of
sharing knowledge with you. When the bill came this guy looks at me and said “you mean you want me to pay
for you too!!!!” I quickly dismissed him as a person that didn’t respect my time and told him I could have been
some where managing one of my rehabs and making some real money as opposed to sitting here with you.
After he heard that he agreed to pay but I never heard from him again. Respect people’s time as the old saying
is still true that time is money and if you’re taking up someone’s time, then the least you can do is pay for their
meal. It will say a lot for your character.
I meet tons of people that say it’s just too hard to find a deal. They tell me that this business is not made for
everybody, and I agree. However, in return ask them “what have you done to get your deal”. Most people will
do a few things here and there but they just won’t stick to an everyday regimen to get the deals rolling in. They
tell me that their job is too stressful to do work after they get home or that putting out signs is a waste of time
because the city will pick them up anyway. My response is simple. If you can put in 8 hours or more for
another person on a day job, then you can surely put in 2 hours a day to benefit yourself when you get home.
According to the US census there are only about 3% of Americans that go to work a full time job and also work
from home 1 day a week. This shows that the majority of people must find it too challenging to work full time
and start a business. The RE game takes time to get deals rolling in, it’s going to take some momentum on your
part to start having the deals come to you. Please make sure you are willing to put in several hours and months
work before you get your 1st solid deal. And the deal I’m referring to is a wholesale deal. We will be
discussing wholesaling in detail in this course. I will also explain other types of deals but mainly wholesaling.
Just think about the airplane and how it gets in the air. It doesn’t just go from 0 to 384 miles an hour. It must
gain momentum first to get off the ground. After that, it pretty much cruises in the air using much less power.
It takes much more power to get started than it does to maintain. I did over 50 wholesale deals before I actually
did my 1st understandable rehab. Not to say you need to do the same, but wholesaling is going to be the fastest
way to get paid without having to actually buy a house. You won’t even have to buy the house, which we’ll
discuss later. The persistence I’m talking about is doing things on a daily basis such as: putting out signs,
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meeting new buyers, asking for money, putting out door hangers, posting listings on craigslist, taking other
investors to lunch, going to local REIA associations (TRIG-www.TRIGofva.com and PREIA in tidewater),
running ads in publications, handing out cards, meeting with agents and sending out letters etc..etc.. etc... To
find your local REIA go to www.nationalreia.com and www.meetup.com.
It’s amazing to think there is only 1 degree that separates plain old water from becoming steam. It’s a law of
nature that at 211o Fahrenheit water is just hot water. It has the same chemical makeup of water that is 330 there
is no difference in the actual substance. It may feel different but it’s the same old water. But at 212o water is
transformed into steam. We are all aware of this fact but it’s important to take into consideration the small step
between the two. That small step of 1 degree can make a world of a difference when it comes to steam engines
that power trains or huge ships during wars. Just think if the engine room only could produce water at 211o.
There would be no power, no thrust no motion but the boilers would still be hot. There is also only a very thin
line between the good & the great. Will you be willing to go the extra degree to make your life great and
become a full time real estate entrepreneur???? Or, will you be happy with being hot, not really producing the
real steam it takes to LIVE in the investment/self employed world. Either way is completely fine with me and I
will enjoy working with you. Sometimes being self employed is not the lifestyle that people want, and frankly
it’s not for every body. You will have my support either road you decide to take. I hope this will get you in the
mindset of staying on task because all of these things work. But you must be persistent and do them every day.
I will be holding you accountable by asking you about the deals we’re working on every week when you’re in
my monthly training & mentoring. Get more info on my VIP monthly coaching club at
www.therealestateroundup.com.

GENERATING AND PRE-SCREENING LEADS

In real estate a lead is a person that has contacted you and wants to sell their house. I get several leads a day.
This is a critical part of my system and it’s done on EVERY deal. This step in the system allows you to
determine whether the lead could be a wholesale deal, a rehab, a subject to, Owner finance etc. etc… You will
receive a script that gives you the exact questions you’ll need to ask when talking to a seller. This script is Fig.
4-F and it’s located later in the course. I will get into how to set that up later. The script will give you an idea
of the options you may be able to offer them, if any. The lead can come from a realtor, family member,
wholesaler, internet, “we buy houses” signs, mail men, meter men, letters, etc. Please remember I do this with
EVERY lead that comes in no matter what exit strategy I’m using. Exit Strategy is the process in which you
determine how you’ll be getting paid in the deal. I’m going to give you a SYSTEM-(Saving YourSelf Time
Energy & Money) to capture your leads so that you can be doing other things that make money. Taking phone
calls from unmotivated sellers doesn’t make money. It is urgent, but not important. Only you can tell whether
the call is important or not and you should do that on your own time. You should do some thinking about calls
34
that are “urgent and unimportant” like phone calls from people that waste your time or from sellers that don’t
have any equity. Calls that are “urgent and important” will be from motivated sellers with huge amounts of
equity. They will be losing the house if you can’t help them. Don’t let the caller dictate when and where YOU
will talk to THEM. If they’ve called in, then YOU set the rules. Just like when you go to McDonald’s and
order. If you tell the cashier to make your hamburger with a wheat bun and make it medium rare, they will not
be able to help you. Same thing goes with your company. If a homeowner wants to call you directly and has
high payments and no equity, then you don’t want to be talking to them at all. You want the system to screen it
and let you know that before you talk to them. This way, you’ll know exactly how to handle them. However, if
you don’t have the answer service set up then you’ll have to pre-screen your own calls. I did this for about the
1st 2 years of my career. I was so scared of giving up that power, but I’m so glad I did. Taking your “buy” calls
on your cell phone will be cheaper, but I don’t recommend it. The reason I don’t recommend taking the calls is
because you need to be on the phone with 7’s-10’s. The level of motivation of each caller will be from 1-10.
But with bad leads, the level of motivation will be 1-6. These are people that simply WANT o sell and don’t
NEED to sell their house or don’t have a house for sale at all. They have no equity, current on payments,
bought their house recently, owe too much, don’t have anywhere to move to etc.etc…
Let the system screen the 1’s-6’s so you don’t waste your time. The best use of your time will be
working with 7’s-10’s.

Tip-The 24 hour answer service that I use is called “The Answer Center” at 757-498-1177.
You can call them and ask for Laverne, she can help get your service set up.

There is a live person answering my calls every time 24 hours a day. They’re ready to use the script that I give
them. If you use a cell phone then you take the risk of the caller getting your voice mail and then hanging up.
You also subliminally tell the caller that you will be willing to take calls on their time and not your time. I have
demonstrated a flow chart of my old real estate system where I’d take calls to my cell phone in fig. 1-A. This
is exactly how I ran my business when I was first getting started. It is also exactly how most investors have
their business set up. Trust me when I say it’s always best to use an answering service of some kind where you
are NOT the first point of contact. One phone call can disrupt what you are doing and get you off track. You
could be talking about borrowing money from somebody and a seller calls in with a #8 motivation level. You
don’t want to miss that call. I couldn’t get anything done during the day because I was always, always, always
on the phone. It’s usually beginner investors that think using their cell phone will save them some money. In
essence, it actually ends up costing more money because they miss a call and the seller with $30,000 in equity
goes to the other competing buyers. That’s something to think about. I still know guys in this business that
35
take lead calls/buy calls or bird calls on their cell and they stay on the phone constantly. Hey guys, get off the
phone and go look at some deals. If “YOU” are in every box of your flow chart, then you’ll never have time to
make big money.

This was me,

I couldn’t get anything done

On the next page you will see a flow chart of my old system. Notice each box has ME doing all of the work.
The purpose for having a system is to free up your time so you can do things that bring in money. Answering
calls will not bring in a check. It is, however a key component in the process of getting a deal but the act itself
can no way get you paid. My system is set up to take you out of activities that don’t have a high payoff such as
taking and pre-screening calls. This will help you understand the concept of working on your business instead
of working in it. Wherever there is a “YOU” at the top, it means that you are responsible for that action and if
something happens to you or you don’t take the time to do it, then your business is shrinking. There is only 1
thing in real estate wholesaling that brings in fast money and that is: getting your deal under contract and
getting it closed…

36
 Fig 1-A

THIS IS MY OLD SYSTEM.. I was crazy!!!

Are “YOU” your own system? YOU

-GENERATE LEADS
(Seller calls come in-
What is your system? bird (BUY) calls)
Typical wholesale model!

YOU
-TAKE THE CALL

Problems:
What if your Seller backs out?
NO RECOURSE, YOU LOSE THE
DEAL!!!!
YOU
What if your Buyer backs out?
-PRESCREEN THE
NO RECOURSE, THE DEAL IS CALL
DEAD/LOOK FOR ANOTHER
BUYER

YOU
YOU DETERMINE EXIT STRATEGY
-wholesale *****
-VIEW PROPERTY
-NEGOTIATE PRICE -subject to -lease option
Wholesale deal -rehab -short sale
-MEET W/ SELLER
GET CONTRACT -owner finance etc…
SIGNED

YOU YOU YOU

-GET CONTRACT -SAY PRAYER & HOPE
-FIND A ASSIGNMENT FOR CLOSING SO YOU
BUYER ADDENDUM SIGNED BY
CAN GET YOUR
NEW INVESTOR BUYER
ASSIGNMENT FEE!!!

37
 Tip- You should be spending 10 minutes max on the phone with a seller. If it’s a deal, then
you get off the phone and get in front of the seller fast. If it’s not a deal, give the seller some good
advice and then get off the phone and move on to the next.

When you pre-screen your leads you are simply looking for people that NEED to do business with you. The
biggest waste of time when looking for deals is trying to convince people to do business with you. We are
looking for people that NEED to sell. We are not looking for people that simply WANT to sell. If you talk to
people that only WANT to sell, this business will be extremely tough because they will not fit in your system.
Think of yourself as a McDonald’s franchise. When you buy a McDonalds franchise you must go to
Hamburger University. They do this so you can learn the SYSTEM of how McDonalds works. If you don’t
follow the system then you won’t be able to run the franchise properly and may be forced out. Take a small
note next time you walk into McDonald’s store. The French fries machine is always on the left. I have tested
this several times and each time it’s in the exact same location of the kitchen. If you want to be successful in
RE then you’re going to need to run your business just like it’s a million dollar franchise. When you do
business with McDonalds, you are in and out with some type of food that is fast and acceptable. Notice I said
“acceptable”. It may not be the steak or the lobster or sea food meal you really wanted, but what you ordered
will be sufficient for the time. When you walk into McDonald’s do you tell them how to make the fries,
milkshakes, burgers, chicken sandwich?? NO, they tell you how they will make it and you must pick what you
like from the menu. Your business should be no different. The options you give home owners may not be the
best options, but it is a solid option for getting the seller’s house sold so he can move on with his life. If you let
the customer tell you how to run your business you won’t be in business for long. You must tell them how you
do business and they will decide if they want to do business with you. When sellers don’t want to cooperate I
simply pass on the deal. If a seller won’t tell you how much they owe on their house then simply say “I’m sorry
Mr. seller, we can only do business with people that want to business with us and want to answer our questions,
have a great day”. This happens to me frequently where the seller thinks if they give me the amount of their
loan they think I can magically force them to sell the house to me for cheap. Or that whatever number they give
me will then be my offer. This frequently happens when I’m talking to sellers so you want to let the system get
that information for you.

Tip- Don’t waste a single moment trying to force a seller to sell you their house at your terms.
Either they want to deal with you or they don’t. All you have to do is ask the magic questions to know
whether a person will be a motivated seller or not!!!

38
I have included a diagram for how my business is set up to pre-screen leads now in Fig 2-A. It is very different
from the old way. This method allows me to take all the calls I want and still continue to do my daily
operations and take meetings. But now my answering service is taking the calls. It frees me up to focus on
daily objectives that make money. My new system is outlined on the next page….

This needs to be you…

How ya like me now

39
 MY NEW SYSTEM REVEALED, I got educated!!!
Fig 2-A SYSTEM
GENERATES LEADS
-Wholesalers –Mail Carriers
-Other people-Advertising
What is your system? -Listed properties, websites
Pre-screening & deal flow model!! -“we buy houses” signs
-Letters, Pre-Foreclosures etc.

Problems Solved: Lead calls in (Bird)

-What if your Seller tries to back out?
SELLER SIGNS MEMORANDUM OF System
CONTRACT OR AFFIDAVIT OF -Takes & Pre-screens the
UNDERSTANDING
call for me
-What if your Buyer can’t close?
YOU KEEP NON-REFUNDABLE CREDIT -Sends information via
-PAY $250 TO GET EXTENSION FROM email
YOUR SELLER TO FIND NEW BUYER

YOU
Wholesale deal -DETERMINE EXIT
STRATEGY
-wholesale*****
-subject to, lease option
YOU OR Paid -rehab-short sale
Create custom -owner finance etc…
Worker credibility kit to
-VIEWS PROPERTY
-NEGOTIATE PRICE give to seller!!!
-MEET W/ SELLER
-GET AIR TIGHT
CONTRACT SIGNED
-Get memorandum signed

-Your BUYER signs the

System Contract Assignment YOU
FINDS A BUYER Addendum -Get deal closed
-email -Collect $1000 NON- -Get your cash!!!
-signs refundable credit from OR
-post calls BUYER -Keep $1k & find your next
-website, -Give your buyer a specific buyer (if buyer doesn’t close)
-list with agent on dead line to close
the MLS

Take the “YOU” out of your system (Save YourSelf Time, Energy & Money!!!)
40
 Take the “YOU” out of your system (Save YourSelf Time, Energy & Money!!!)

When the lead comes in we need to know several key pieces of information. Your answer service will ask all
the necessary questions for you. This information is in your answer script which is included in this course.
Every deal I do the seller must sign the purchase contract and the memorandum of contract/affidavit of
understanding. These documents are signed by my seller on every deal or I don’t do the deal. The purchase
contract locks them in to sell only to me and the memorandum, or affidavit, allows me to record my interest at
the city courthouse so they (the seller) legally can’t pass ownership of the property unless I agree to it. In the
past I’ve had situations come up where I’d have a seller sign my purchase contract, and a few days later they’d
sign another contract with a different buyer for a higher price. Yes, people do this all the time. I’ll get into how
to use these important tools later.

Tip- If a seller is not willing to sign the Memorandum of Contract OR Affidavit of

Understanding then I don’t do the deal. Chances are they may want to shop your offer or look for a
better offer. Tell them it’s company policy to have all sellers sign these documents!!!

I’ve had people sell their house to somebody else after I’ve signed the sales agreement and getting ready to
buy it. And sometimes other investors will try to cut you out of a great deal if you’re trying to wholesaling it to
them. I remember having a property under contract and I was sending it out to my buyers so I could wholesale
it. Somehow a buyer, that I didn’t know, received the email and contacted the seller of the property. He then
told the seller what I was doing and tried to cut me out of the deal. He told the seller that I didn’t have any
money and that I was going to sell his house and add $5,000 on top of the sales price (my assignment fee). I
contacted this other investor and asked him why he was talking to my seller. He got very confrontational and
told me he was going to try to buy the house and he didn’t care about me or my contract with the seller.
Fortunately the seller kept his word with me but I still had my memorandum signed so he couldn’t sell the
house to anybody else even if he wanted to. Make sure the seller signs that memorandum; it will save your deal
in cases like this. The memorandum needs to be notarized so you can record it. When you meet with your
seller, have the notary meet with you as well so he/she can notarize the memorandum. Go to
www.123notary.com to find a mobile notary in your town. They are cheap and will meet you anywhere you
want them to. There is one in every city and they’ll work with you as long as you pay them. It usually costs me
about $15-$25 per signing. So if your seller signs another contract and tries to cut you out, you have your
memorandum to stop that.

41
REAL ESTATE WHOLESALING: Get a check in a matter of weeks
Wholesaling is common in all industries including real estate. The majority of this course will be devoted to
my process of finding the deal, locking down the deal and wholesaling it for fast cash. Now, before I go on I
want to be clear that wholesaling is just ONE exit strategy in this real estate sport. You will have to follow all
of the steps in my REI system and determine what your exit strategy will be on each deal. There will usually be
only 1 pay day for a wholesale deal. So please follow the steps and notice in Fig 2-A that once you get to the
3rd box, you’ll need to know your exit strategy.
Just like a candy bar is bought at wholesale prices then sold to you and I at a retail price. The wholesaler
marks up the price just enough to make a profit but still allows the retailer to make a profit as well. Just like
cars, shoes, clothing, building supplies, chairs, windows, stoves, etc…. Real estate wholesaling is not too
different. Wholesaling is the best way to get started in this business. It has no absolutely NO risk (if you do it
right) and it teaches you how to make money without having money. Wholesaling allows you to understand
what other investors are paying for properties in your area. When investors buy from you, then that means you
had a good deal. It’s been told to me on several occasions that all investors must learn how to make money
without having money 1st. Then after you have done a few wholesale deals you can get into the big checks
doing rehabs. You’re going to have to help some other people make money before you can make big money in
this business. As I stated, I did over 50 wholesale deals before I got heavy into rehabs. A typical wholesaler
profits $5k while the retailer (the investor that does all the hard work) will go on to make $20k-$30k. I’ve done
wholesale deals where the assignment fee was actually bigger than the check to the seller. Some assignments
I’ve done in the past have been as big as $45k but that’s not going to happen on every deal. If you stay focused
and do a bunch of deals, the big deal will come…..
There is NO risk in wholesaling real estate because you never actually buy the house.
Wholesaling real estate (contract assignments) defined by Barron’s real estate guide is a method in
which a right or contract is transferred from one person to another. You get a home owner to agree to
sell you their house. You then write up an agreement to purchase the house. The seller signs the contract
with you being the purchaser/buyer. You then turn around and sell your contract to another buyer. You
are actually selling the “rights” to buy that house. As soon as the seller signs the purchase contract you
now own the “rights” to buy the house. Ideally no one else in the world can buy that house without your
permission. When you sell your “rights” the money you receive from this type of transaction is called an
assignment fee. This process is called assigning contracts. You never actually have to come up with the
money to buy the house. The new buyer will bring all the money to close your deal and pay your
assignment fee.

42
 Tip- I never use the word “contract” when dealing with sellers. I always use the word
“agreement” because it’s a lot softer word and it doesn’t scare the seller. Some people are scared to
death of contracts so I call my contract an agreement, it’s the same thing. Get my standard purchase
agreement & the contract assignment addendum at www.therealestateroundup.com

You must do all of the legwork to make sure the seller is at closing and brings all the necessary documents to
sell the house. And you must also make sure the new buyer has the money to close the deal and pay your fee as
well. You will be using the “assignment addendum” to link up your new buyer with your seller. I have given
you a flow chart of a standard wholesale deal in fig. 42-A. It shows you exactly how the deal will get the seller
and you paid at closing.

43
 QUICK REFERNCE WHOLESALING FLOWCHART
Fig.42-A

-Seller agrees to sell his house to YOU

-YOU obtain a contract to buy the house from
Seller using the “standard purchase & sell
agreement”
-Seller signs the memorandum so he can’t back
out of the deal

YOU
Turn around &
Sell your “rights
to buy” the house
to a new BUYER

INVESTOR BUYER pays

You Link your YOU a fee for your rights to
SELLER with your buy the house called the
BUYER using the “assignment fee”
“Contract Assignment $$$$$$$$
Addendum” -And Investor BUYER pays
the SELLER for the house

These are the basic steps in most typical wholesale deals. Remember this flowchart as we will cover it again
later in the course. In the coming chapters, I’ve meticulously prepared a full-length step by step system that
will show you how I wholesale houses for a living. It will cover wholesaling from A-Z including; how to get
leads, to cashing your check. And you can do it too. Make sure you read and re-read the steps ahead so that
you can implement them immediately and get yourself closer to a check in weeks instead of months.

44
 KILLER MARKETING & ADVERTISING IDEAS
The 1st step in the Real Estate business or any other business is marketing. You must have a way to get
the phone ringing with people that want to do business with you. We call this generating leads. One
way I look for leads is in the local legal newspaper. In the Hampton Roads area the website to our
legal news paper is www.Insidebiz.com. This local legal newspaper can tell you which houses are
coming up for foreclosure auction in the Hampton Roads area. You’re going to have to create an
account to be able to view the foreclosure files but it will be worth it. After you create an account then
click on legals, then the city you want and then click on trustee sales. That will get you most of the
properties headed for foreclosure. There will be a hard copy of the paper and an online version. If you
don’t live in Tidewater just type “your city +legal newspaper” in google to get your local legal
publication. There is one in most major cities. If you don’t have a legal news paper just use your
regular news paper. You’ll be looking for “trustee sales” for that day or week. It’s usually in your
classified section. You will have to contact these people directly so you’ll have to either mail them or
go to their house or go to www.411.com and get their phone number to call them. I like trying to reach
the people on the phone the best. I also have a monthly subscription to www.peoplefinders.com. This
site allows me to search for the phone numbers of any person in America. It’s very cheap and I’ve
been able to contact several people before the house goes to the foreclosure auction. I recommend
getting some type of online phone number lookup website subscription.
Included in this course is a copy of my door hanger which I use to generate leads as well. The door
hanger is useful in that is explains exactly what you do and how you do it. The seller can then pass or
play in making a decision whether to use your services or not. I’ve had several deals come from door
hangers. People will get a door hanger and perhaps save it or give it to a friend or family member that
they know is in mortgage trouble or needs to sell a house. The copy of my door hanger is on the next
page…..

45
 SAMPLE OF MY DOOR HANGER

Fig 3-A

Make sure you use a bright color on your paper such as bright green or pink, yellow. It creates instant
credibility for your seller when they see this and they see your website.

Tip- You can order 3000 door hangers for $180 at www.3000doorhangers.com. Get a $15

discount when you order if you mention code “Cash in”. Give it a try!!!

46
I’ve had good success in closing the leads I’ve got from my door hangers. It’s inexpensive and they
will last a long time if you leave them in the right locations. They’re ideal to use in your free standing
publication racks, which I’ll cover in a few pages.
You should also have “WE BUY HOUSES” and a phone number in big letters on your car. You
drive your car anyway so why not advertise for free. I can’t tell you how many calls I’ve received just
from my truck sign. People blow their horn and stop me while I’m driving to tell me how they see my
truck around town all the time. A lady followed me for several blocks one time and stopped me to tell
me about her house. It was kind of creepy to see this little old lady following me then she pulled up
beside me and asked if I could buy her house. I eventually bought that deal and assigned the contract
and made $4,500. Think of it like you’re going to be driving your car anyway, why not get paid to do
it. Below are pictures of my truck….

47
 Tip- Make sure the number on your car is different from the number on your bandit signs!!!
You don’t want the police to see your car number and be able to link you to a bandit sign number, they
may pull you!!!

You can notice I have the sign on the back and on both sides. People will see you at stop lights and
highways and everywhere you drive. Sometimes when I have meetings with people, I’ll park my car
next to a busy fast food drive thru or intersection so the cars can see it while it’s parked. I’ve had
people call me on the interstate while I’m stuck in traffic also.

I want to tell you about a time when I was arrested and locked up by the police for putting out
bandit signs. It was during a time when I put out several hundred signs. There was 1 particular officer
that I soon found out had a personal problem with these signs in Norfolk, VA. Every other city is not
as strict as Norfolk. He had been calling my answer service but I didn’t call him back. This is another
good reason for having an answer service. One day after having a drink at a local bar as I was leaving,
by strange coincidence, that same officer happened to walk by me and saw me getting into my truck.
My truck sign had the same phone number that my “we buy houses” signs had on them. He
approached my truck and took my license number. Then he told me if he sees any more of my signs
he’s going to take out a warrant against me. At the time I didn’t even know what a warrant was.
Apparently if an officer suspects you have committed a crime, then he can charge you and have you

48
arrested, even if he didn’t see you do it. I didn’t pay it too much attention and continued to have the
signs put out. A few weeks went by and I was stopped by a different officer on a routine traffic stop
about my tags being expired. He ran my license and told me to step out of the car. He then told me he
had to take me to jail because I had 4 warrants for my arrest. WOW!!!! I was shocked, no officer had
ever seen me put out a sign. Matter of fact, nobody had seen me put up a sign. Apparently the officer
went to the magistrate and took out 4 warrants on me regarding my sign placements in the city of
Norfolk. It didn’t make much sense but I was arrested and taken to jail and stayed there all day. It was
a horrible experience being locked up in a cell with other serious criminals. While I was in jail, the
magistrate and all the workers and guards didn’t understand what I had been charged with. I was
technically charged with “street obstruction” but no one at the city jail new what that meant, not even
the magistrate. To make a long story short, I was facing a maximum of 2 years in prison. Each charge
could carry up to a 6 months sentence. I hired a lawyer which cost me $1,300 and we attempted to
fight the charges in court. We went to court several times over the next few months, but each time the
city attorney didn’t have enough evidence that I actually put the signs up. The judge finally through
the case out and I was free. But my attorney told me to change the number on my truck and make sure
the number on my truck was different than the number on my “we buy houses” signs. So for you,
please make sure you do this 1 little strategic move, it will save you a lot of headache…..
Don’t let my story deter you from putting out signs, because they work. I continue to buy houses
while the police keep on calling. A picture of my sign is below…

I always use 12x18in signs with yellow and red colors. They seem to last longer and will not be seen
by the code enforcement people as good as the 18x24in signs. Make sure when you buy the signs that
the flumes are going vertical so your H-wire stakes can be stuck in and then pushed in the ground.
These signs have generated lots of deals for me and my team and I attempt to put out 100 at a time.
Please don’t waste your time if you’re only going to put out 50. You must have a lot of signs out to
49
really make a difference. I mean like 300-500. After you do this you will see the deals start to come
in.
Another great idea you can do if you’re just starting out is while you’re driving about, write down
all the numbers from of the “we buy houses” signs you see. Put them in a spreadsheet and call them.
You will tell them that you are a RE investor and you’re looking to see what inventory they may have
at this time. If they start asking about your ability to close, just tell them you may have some buyers
looking to buy if they will be willing to let you show the property. You can actually help them
wholesale what they have for sale, as long as they have it under contract to buy. All you have to do is
make sure the wholesaler you’re dealing with knows you will be shopping the deal as well. Ask him
“if I find a buyer for one of your properties, will you be willing to split the assignment fee with me?”
Type up an agreement stating that he will be willing to pay you if you get one of his houses sold.

Tip- Action plan, go out and get at least 5-6 “we buy houses” phone numbers from signs in
your city. Call them and use the information above to get some momentum in your life…

When I first started out, my main source for generating leads was sending out letters. It was the only
thing I knew how to do to get leads. Every night I would sit and type up at least 30 letters to send out
to home owners. I would drive around town and look for ugly or vacant houses in the day burning gas
and wasting a lot of time. Sometimes I would just send a letter to the entire neighborhood looking for a
good lead. I made it practice to send out 30 letters a day every day for at least 2 years. I would get a
bunch of calls but most were no good. Don’t forget on average it’ll take about 20-50 calls to get 1
good deal. Through my studies and gauging my marketing, I can say the letter has been the single most
effective marketing strategy so far for me. It’s very tough to be persistent and send out letters daily,
but after a while you can pay some body to do it. These letters are a great way to get started and I have
included a copy of my letter on the next page, Fig. 43-G…

Fig. 43-G

50
 FP
Don’t use your home mailing
123 Easy st. address or a PO box. Go to the
Suite 130 UPS store and get a small box for
Hampton, VA 23666 cheap to use as your return address.

FREEDOM PROPERTY
www.sellhouseva.com

Brian Allan
174 Mallory St.
Hampton, VA 23663

RE: 9850 Wood Dr.

Dear Brian Allan,

I am a local real estate investor in the Tidewater area. I own several rental units one of which is in the same
neighborhood as your property. I drive by your property from time to time on my way to check out one of my rentals.
The reason I’m writing is because my company purchases and renovates properties, even houses that need repairs.
If you should ever think about selling, please keep me in mind. I’d be happy to show you my financial statements and
references so you can see how I do business. Quite often you can rid yourself of an extra chore and earn more spendable
income from releasing old obligations and, of course, you don’t have to worry about expensive contractors or a 7% realtor
fee.
Drop me a line or call if I can be of any service. Call me direct if you should ever decide to sell. You can save a
bundle without paying a big commission.

Sincerely,

Kris Haskins
757-498-2101-office
757-660-2628-cell
Kriz1204@gmail.com

PS: I am not a real estate agent, and you will pay no commissions on the sale of your property.

51
Notice the placement of the mailing address and the return address. They are both in the upper left corner. This
is so I can use the double widow envelopes so I don’t have to handwrite the mailing address or the return
address. Print the letter just as it is, then fold it 3 times so both addresses show through the envelope windows
and you won’t have to handwrite anything. I even scan in my signature so I don’t have to sign the letters. You
can also just leave the return address blank if you like, you won’t be able to track if the address is bad, but it
will save you some time. These letters are golden and will get the calls coming in. To get the mailing address
for any home owner you can once again go to the city assessor’s office. They should allow you to buy a CD of
all the property owners in the city. It will run you about $150-$200 per city. If you’re only doing a few, then
you can just call the assessor’s office and they will get you the owners name and mailing address over the
phone. I mail to the non-owner occupied houses. These are home owners that do not live at the same address
of the property. So when you look at the info, the seller should have a different mailing address than the house
address. Try to get owners that not only live at another address but live out of the state as well. Those can be
hot leads…

CODE COMPLIANCE- Code violations & Condemned properties

In this section you’re going to be able to find home owners that are pretty much desperate to sell. These sellers
will come from the code compliance department in your city. It took me a while to actually figure out how to
find these types of houses but I’m going to spell it all out for you right here. Most cities or counties have an
office that monitors the overall look & condition of real estate. This department is called the “code
compliance” department. Their job is to make sure home owners aren’t neglecting their properties. Neglect can
be anything from high grass, old roof, broken windows, weeds, missing siding, old cars in the yard, cracked
foundation, sinking house, no utilities, vacant & unsecured, etc. etc. …. They look for anything that’s going to
make the house look bad and/or could be a danger to the community. The code compliance dept. attempts to
make the home owner comply with basic city ordinances so our cities don’t start to look like 3rd world
countries. One of the worse of all of these violations is a vacant unsecured house. These houses can be huge
problems for a city. If a house is vacant and a child breaks inside and gets hurt, the city could be held liable for
not enforcing the home owner to keep the property secured. Plus, if the home owner doesn’t have any money,
then the city could be next in line for being sued. So, it’s in the city’s best interest to make sure all real property
is kept in good shape. We all know the city wants to look good for tax payers anyway. Another reason cities
enforce these codes is because they can make real estate taxes higher on pretty houses.
Now, let’s get into how to find these ugly code houses. The city has code enforcers that actually drive
around and look for these houses. They also investigate complaints from other citizens that call in about
problem houses in their neighborhood. After a house has been reported, the inspector will put it in a “code
violation” list and send a letter to the home owner. I’ve actually received one of these letters from one of my
52
rental properties. A tenant of mine had several cars in the back yard so the city sent me a letter stating I was
violating some city code and to have the cars removed. To get this “list” you can’t just walk in the code
compliance office and ask for the list. If you do that, they will look at you like you’re crazy.
There are a few ways to approach the city when attempting to obtain the code violations & there are only a
few violations that you’re looking for. You want to narrow your search down to the houses that have code
violations that may signal a motivated seller. You’re looking for violations such as old or missing shingles,
missing siding, over grown weeds, demolition orders, unsecured & condemned. The condemned properties
may be listed on the internet so you can do a quick search to see what comes up. To check to see if the
condemned properties are listed on the internet, go to your city government website.

Tip- You can find your city website by googling “your city+state government website” & it should be
at the top. Do a quick search of “condemned properties” in the site search tab. To find the code compliance
office location & phone #, go to your city website and search the site for Code or Codes Compliance, it will
come up.
Fig 59-D is what comes up in my city website if I do a condemned property search.
Fig 59-D

Site search tab

If a condemned property list doesn’t come up on the site, then call the code compliance office and ask them if
their condemned properties are even listed on the website. They’ll show you where to look. If this list is

53
online, get the list and send your letters out. If not, you’ll have to go down to the code compliance office and
make a request to see the files. Call & ask them where their office is located and make a trip down there.
When you go into the code compliance office, see if they have a listing of the entire city’s condemned
properties. They may or may not have one. Next you want to get some of the code violations so you can mail
to them as well. I want you to follow this exact script.

Tip- Use this script when obtaining code violations.

A. “I’d like to make an open records request according to my rights under the freedom of information
act. Would you mind giving me all open & closed files for residential, vacant, unsecured & absentee
owners from the past 4-5 months? Would you mind including the demolition orders as well?”
B. “I’d like to make an open records request according to my rights under the freedom of information
act. Would you mind giving me addresses of properties in the city that have been declared derelict
structures or derelict properties?

Sometimes this will be a very sensitive subject because all of the inspectors think you’re a greedy wealthy
investor trying to make a quick buck. They think you’re like the mob where the good old boys make more
money in a month than they, the employees, make in one year. They think you’re buying up all of the good
deals & living in a water front house while they struggle to pay their bills. I’m telling you this so when you
walk into the office you don’t offend them with your request. Make sure you approach these people with the
utmost respect and humble voice tone. One time a code inspector said he couldn’t give me any addresses
because he wasn’t going to help me get rich. Good thing I was able to go over his head and talk to the
supervisor. But make sure you chose your battles wisely when you’re talking to these people as you want them
to help you. It’s almost embarrassing to admit but this information is public record anyway. Nobody has the
right to withhold it from you AND it’s your tax dollars keeping these people employed.
Don’t forget our code violation search will be listings from the past 1 to 5 months only. You won’t need to
go back too far beyond that as the owner may have taken care of the problem. Look for violations that are
noticeably signs of a person that’s neglecting the house or can’t take care of it.
The demolition orders may be a separate filing. These are orders from the code supervisor to actually
demolish a property. There’s usually some type of hearing before they do it & there’s definitely a file for these
houses. So make sure you get this list as well. I’ve seen several houses get bought and sold days before it was
scheduled to be demolished. If it is on that list, very calmly speak to the demolition manager or supervisor. If
you have a specific house you know about, then you can merely tell them you’re working with the home owner
to remodel the house and get all the code violations corrected. They’ll typically give you time to correct the
problems because they really don’t want to pay to have it demolished.
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 I’ve bought several houses from these listings. It’s been some great deals because they’re really houses the
owner just doesn’t want. One time I bought a house from a family that moved out of town and had drug dealers
for tenants. The drug dealers moved into the house and just tore it up, BAD. I mean it was so bad the city had
condemned it due to windows being broken & no utilities. It was terrible because they were still living in it.
Check out some of the pictures at
http://www.flickr.com/photos/kriz1204/sets/72157602569625394/with/1665850144/
What happens in these types of houses when they’re vacant, people will break in and rip down the sheet rock
to get the copper. Copper was used in older houses for all of the plumbing and electrical. It’s kind of expensive
to use in our deals so typically houses today use plastic. People will take the copper out of the walls & sell it to
the scrap yard for a small profit. Look at those pictures I guarantee you’ll be amazed at what these people did.
Market to this exclusive secret list and watch the deals start coming in. The great thing about these houses is
there’s very little competition looking at them. You’re probably going to be one of the few that even know
what to look for. So take advantage of this secret & get down to your Code Compliance office this week.

BUSINESS CARD$ & what they should say!

If you don’t already have them, you will need to get business cards IMMEDIATELY!!!! This is a very
effective way to let your friends, family & the world know that you are in the RE business. Never mind if you
haven’t done a deal yet, only you know that. Don’t worry about the negative people that are going to think
you’re crazy because you are starting a new business venture. I use a card that looked like a $100 bill. It’s
great, I would drop them on the ground while I was walking and people would pick them up thinking they had
just found $100. One time I was at a local fair dropping my cards on the ground while I was walking. There
were several thousand people there and the foot traffic was very heavy. I had been dropping my cards and a
sweet little old lady ran over and picked one up. I saw her out of the corner of my eye and I hoped she wasn’t
going to follow me. She then hollered and screamed for me to ask me if I dropped this ($100 bill card). I told
her yes and thank you for returning it to me. My point is, the $100 bill card stands out and will be an eye
catcher among other cards. Sometimes I leave them at local restaurants on tables and at 7-11 counters. I have
received many calls from people that saw my cards on 7-11 countertops. I leave the card on the counter by the
credit card machine so everybody that checks out can see the card. Check out Fig 41-A to see how my business
card looks. You will want to have a card that stands out when you meet people. When I talked to people that
were motivated sellers, they would say “I wish this card was real, I really need this right now”.

Fig 41-A
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 Front side of business card Back side of business card

WE BUY
HOU$E$
-Any condition
-All cash offers with fast closing
-No Equity No Problem
-$1000 Referral fee

You can also try this text…

Front side of business card Back side of business card

WE BUY
HOU$E$
-We take over payments
-Foreclosure
-Estate sale
-$1000 referral fee for
information leading to a house

Front side of business card Back side of business card

CA$H FOR
HOU$E$
-We take over payments
-Foreclosure
-Estate sale
-$1000 referral fee for
information leading to a house

Whatever you chose, just keep it simple and to the point. It’s going to feel great when you’re out networking
and you give this card to somebody. They are going to look at you and know that you have taken the time to

56
put into your business marketing to look professional. While the other guys are going to go to vista prints and
get the cheap free cards. Also make sure you use a heavy pound paper so it won’t bend when you touch it. Just
go to your local printer to get these done. But remember, it’s going to cost a little bit more…. Visit
www.dollarflyers.com or www.dollarcardmarketing.com. You can also just google 100 dollar bill business card
and see what pops up.

Tip- WHAT ARE YOU WAITING FOR? DO THIS NOW……. ORDER YOU BUSINESS CARDS
TODAY. Make it a point to give out at least 10 cards a day. Also go to your next local Real Estate Investors
group meeting and give out 10 cards and ask for business cards from 10 people. Tell them you are a local RE
wholesaler and you’d like to add them to your buyers list.

Another way I generate leads is wearing my exclusive “I Buy Houses” IBH gear. I have customized
clothing so I’m a walking billboard. Everywhere I go people know that I buy houses. Take a look
below at my custom gear…

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You can do your shirts, hats, jeans; I even have a friend who puts a logo on his shoes. I was in church recently
and I walked in with my coat on. While I was in service a young lady tapped me on the shoulder and asked me
if I bought houses. She then went to explain how she has a cousin that was trying to sell her house and
couldn’t. So after the church service, we met and she gave me her cousin’s phone number. I must admit, I was
a bit leery about wearing my coat to church but when that happened, I felt better. A few other people actually
came up to me and asked for business cards. It was actually a good thing where people didn’t feel
uncomfortable coming up to me and talking to me. This clothing opens doors for me everywhere I go. Whether
it’s the bar, church, club, store, out to eat, shopping etc.. people always tend to be friendly when they come up
and talk to me.
The last way we’re going to talk about generating leads is with my free standing publication racks. These
babies have been great to me and I have never seen any body else use them. They are legally protected in every
city due to some huge court case decision. Apparently there was a city that tried to ban the USA today boxes
and the company sued the city and won. So, we are all protected. I have included pictures of my freestanding
publication racks on the next page

58
So I place these all around my town in different locations. I like to put them at the post offices, around other
boxes in the area, at strip malls, family dollars, unemployment offices, temp services etc.. I put them where
people would be either looking for a job or maybe just lost a job. And I also make deals with local gas stations
and quickie marts where the owner lets me place one of my boxes in front of the store. In return I tell them I’ll
pay them $500 for every deal I get from a call from the surrounding area. It works great for the gas station

59
owner because they don’t have to do any work and it works for me because I get more exposure. These little
boxes are my secret weapon… Don’t tell your competition about these.

Tip- You can buy the free standing publication racks at www.goplastics.com. They cost about
$70-$100 per box and then you have to pay for shipping.

The real secret to getting leads in this business just like any other business is that there IS NO SECRET!!!
You must have several marketing campaigns rolling all at once to get enough leads coming in. I’d much rather
have 10 ways of getting 1 deal as opposed to 1 way of getting 10 deals. When I started out, all I had was my
letter campaign. Yes it worked great but I was always worried about not getting enough leads in to process. If
you have all of the above campaigns working together you should have enough leads coming in. And don’t
forget to work with a realtor also to get listed properties.

Tip- The real secret to being a full time real estate investor is having leads coming in from
several different sources!!! There is no 1 secret lead campaign that is going to get you enough deals
for you to survive!!!

Yes you can assign listed and bank owned properties. We go over that when you get a membership with my
monthly coaching club. I also supply you with a proof of funds letter to use when making offers with realtors. I
will actually give you a copy of my bank statements to give to your realtor. This will allow you to make offers
and show the realtor that you, and your team, have the money in the bank to buy the house.

Tip- Get more information on my monthly coaching club by emailing me at

krisbuyshouses@gmail.com or visit the site at www.therealestateroundup.com.

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 SETTING UP YOUR FREE WEBSITE in 48 Hours, (or less)
All companies that are legit have an online presence; isn’t it time you get your company on line as well? As
promised, this is where I’m going to explain how you can get your free website. These sites are really cool
because they are already designed for you. The first thing you must do is get your domain name. A domain
name is the name that home owners will be putting in the goto bar to search and sell their house. Now, it is
extremely important to have a name that reflects what you are doing. These names sell for hundreds of
thousands of dollars and you should treat your domain name like it’s worth the same. Another advantage of
having a website is that you may have more than one name pointing to the same site. At this point in time I
own over 10 domain names. To start out if you don’t have a company name you need to at least get your own
name.com, that’s www.yourname.com. I own www.krishaskins.com and you should own your name too. To
see if your name is even available go to www.roundupwebsites.net. This site has a box where you can simply
type in the domain name you want and it will tell you whether it’s available or not. Now, you don’t have to
pick a domain name in order to get up and running, but it’s the best way to go. If you simply use the free
template, then your domain name will be www.roundupwebsites.com/yourname and that doesn’t look as
neat as your own thing.

Type your name or

domain here to see
if it’s available!!

You want to have a suffix of .com because they are the most visible and .com is for commerce. You may have
to use a .net or .biz if your name is taken and that’s ok. After you buy your name then you can start thinking of

61
a company name. I own several business websites and you should too. You never know when a home owner is
going to type in your key words in google or yahoo. For instance, I own:
www.sellhouseva.com
www.webuyhouseshampton.com
www.sellhousenewportnews.com
www.sellhousehampton.com
www.freedomproperty.com
all of which point to the same website. You can check them out, they all will look the same. I do this so I can
put different marketing on different advertising. Plus the key words help me in the search engines on google.
You want to make sure you add your website to all of your marketing. Just so the home owner will feel
comfortable that you are a real company and not a fly-by-night con artist. The sole purpose for these sites is for
you to have an online presence and to capture information from a home owner wanting to sell NOW. I have the
same basic questions from my answer script also on my website so the owner can leave all the important info
and then it’s emailed to me. There’s a “sell your house NOW” OR “Sell my house” button where home
owner clicks to get the questionnaire. You will see exactly what a seller form looks like in my email inbox with
the next figure.

Email I received from a Seller that went to my site.

New lead submission - Website form on: http://sellhouseva.com/Sellerrequestform.aspx,

...
Notification
<notification@automailcmd.com>
From:
...
Add to Contacts
To: krizi204@yahoo.com

Hello,

You have a new signup on Website form on: http://sellhouseva.com/Sellerrequestform.aspx 5:43:06 PM

First name: Deb

Last name: Winter
How did you hear about us:
Email: petnurse@cox.net
First phone: 7572350362
First phone type: Cell
Second phone:
What's your situation:
Why are you selling: Want to relocate
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Type: Single Family Home
Street address: 1117 Crossway Rd.
City: VA Beach
State: Virginia
County: VA Beach
Zip: 23454
Relationship status: Legal Owner
Is the House Occupied: Owner occupied
Is the House Listed with a Realtor: No
Number of Bedrooms: 4
Number of Bathrooms: 3
Approximate heated Square Footage: 2000 ?
List of Repairs Needed: cosmetics
Overall condition of Property: good
Estimated Value of House AS IS: 300,000.00
Least you would accept: 250,000.00

This information was copied right out of my email inbox. You can see I ask a few more questions on
the website but I have changed my questionnaire to ask fewer questions recently. You don’t want to
ask too many questions, it will scare the home owner away if they think you may be too picky. Google
“we buy houses” and click on a few of the sites, they all pretty much look the same.
After I have all the information I need, I can call the owner back when it’s convenient for me….. But I
don’t wait too long. Always remember, “An old lead is a cold lead”.
Once you have picked your domain name, there are 2 ways you can choose to get your website
setup. You can choose Option 1:
a. Choose a Registrar
b. Register and pay for a domain name
c. Find and pay for a Hosting Company
d. Find a Web Developer
e. Pay top dollar for a web Developer to build your Website AND hope he does it right
f. Attempt to figure out how to build a website on your own
g. Set DNS records to properly point to server files
h. Set up e-mail accounts
i. Pay Web Developer for continuing updates & support to site

OR
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You can choose option 2:
Let the pros do the hard work for you. It is a huge waste of time not to mention an extreme learning
curve to try to figure out auto-responders and computer code. You shouldn’t be spending time
studying cpu code. Your time is best used looking at deals and talking to highly motivated sellers.
Take a look at www.roundupwebistes.net. This site has several different real estate investor friendly
websites that have already been created for you. They have been created BY real estate investors FOR
real estate investors. You will have to create an account by clicking on the sign up now button. Pick
the website & pictures that make you feel good when you look at them. You can change the template
at any time so don’t worry about choosing the wrong one. The best one for you now is the one that
catches your eye 1st, don’t 2nd guess your gut. It will have all of the buttons you need to get an official
website up and running. Your new web domain name will be automatically linked to your new website
and you’re ready to start getting leads. The webhosting & support all come along with the site & your
1st month is free. If you like your new site & you want to stay with them, it costs $30 per month. The
email you used when you logged in will be the email that your seller leads will come to. You will also
get a free domain email such as, joesmith@fasthomebuyer.com Continue to think about a business
domain name and make it something that will stand out for your city. If you live in Vermont, try
www.VTbuyers.com or Maryland www.MDbuyers.com or www.buymdhomes.com,
webuymdhomes.com. Think of something that everybody remembers about your area and is unique.
My deals from online marketing only count for about 10-15%. But everyone’s experience will be
unique and different. I know some guys that get several deals from internet marketing. You will need
to do some optimization in order to get your site to the top of the search engines. This is where you
pay to have your domain name closer to the top of google or bing or yahoo.com. The only real reason I
keep these sites is for my personal marketing. When I send out letters to specific areas, I can use a
website that sounds familiar to the home owner. If you live in Hampton, I’ll use the
webuyhouseshampton.com. If you live in Newport News, I’ll use Sellhousenewportnews.com. It just
looks good on the ad and I may be interested in selling a website name one day. Online presence is a
must but it won’t bring in a ton of leads just because there are so many people on the search engines
now. Plus you will be competing with pay per click and pay per ad people also.

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 Tip- Go to www.roundupwebsites.net to a get pre-made real estate investing website. It’s
been created to capture seller & buyer leads for you. Don’t waste time trying to build your own site.
It’s too tedious and complicated. You’ll be glad you did.

Follow these marketing ideas and the deals will start coming in but you must know what to do with
them which is the next topic we’ll be discussing. Good luck to you and get started….NOW!!!

CONFIGURING YOUR ANSWERING SERVICE

The next step in your system will be to set up your live answering service. This is a CRUCIAL step in your
business. Notice I said; business. If you are the 1st point of contact from all of your clients then you have no
business. You have created a very tough job for yourself on top of the job of being a full time wholesaler. I’ll
elaborate on that as we go. Wholesaling is a full time job in itself and you don’t need 2 full time gigs. It‘s hard
enough just to have one job. But when you’re answering your phone and you’re the 1st point of contact for your
buy calls, that’s exactly what you are doing. Being a wholesaler or RE investor, working with real estate is
your job, not taking calls from people that may, or may not, want to sell their house. Don’t forget, you need to
be on the phone with the 7’s-10’s not the 1’s-6’s. Let the system deal with all of the calls and then all you have
to do is pick from the most highly motivated leads. A seller that has a motivation level from 1-6 is what we call
an “urgent unimportant”. They are the tire kickers that will try to steal your time. Dealing with these types of
calls will suck your time dry in a day. Just imagine what would happen if you talked to 20 of these 1’s in a day.
How much mental power do you think will be drained from you? Not only are these types of people time
wasters, they also want to suck your energy too. They want you to “UNDERSTAND” and “FEEL” why they
are selling and why they need to get top dollar. They try to transfer their desperate energy over to you and
maybe, just maybe they can convince you to buy their house at THEIR price. These types of sellers think if
they get you emotionally attached then you could help them get out of the messed up situation that they got
themselves into. Typical seller with a 1-6 motivation:
a. Owes too much on their loan which is more than the house is worth
b. Monthly payments are entirely too high for the location and type of house
c. House is in too bad of shape or it’s a tear down
d. Location is a war zone and they refinanced and spent all the money and now they want to dump it
e. Just looking to see how much they can get for it

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 f. Owner died and left a reverse mortgage on the house and heirs are trying to sell to get some cash
g. Owner just bought the house recently

Tip- Never, EVER, ever buy on emotion. When you do, you are transferring the sellers
messed up situation and claiming it as yours. The house is not your problem, yet…. You won’t be in
business long if you let other people’s problems become yours!!! One of my favorite quotes and you
should adapt also- “That’s not my problem”

There are many other scenarios that make up the 1-6 seller and you will see more as you go. Just be aware and
recognize what they look like and smell like so you don’t waste your time.
You need to focus on talking to sellers that have the motivation of 7’s-10’s. The way we accomplish this
task is by setting up systems and filters. Your personal time should be focused on a few things that bring in
money. You want to focus on high dollar payoff activities. Let’s go over the difference between high dollar
payoff activities and low dollar payoff activities. When I say activities, I mean you actually doing the task, not
having the task done for you.
Low dollar payoff activities, should be subbed out:
a. Answer phone calls from sellers
b. Taking calls from tenants with no money
c. Helping your buyer find financing, (He should have his own)
d. Showing property to prospective buyers
e. Calling buyers and offering them your wholesale deals
f. Sending out postcards & letters

High dollar payoff activities, you should do:

a. Setting appointments with sellers
b. Going on appointments to motivated seller houses
c. Going to closings
d. Adding new buyers to your buyers list
e. Getting contracts signed by home owners
f. Networking with new people
g. Getting contract assignments signed with investor buyers
If you do more of the tasks on the 2nd list the closer you will be to a check. If you do more of the tasks on the 1st
list then you will be spending more unnecessary time in your business.
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 Tip- If you are just starting out, you may want to do some of the tasks on list 1 just so you will
be able to explain how to do them to other people when you are ready to sub it out!!! It’s hard
showing somebody how to do something you’ve never done…..

The basic system you should start off with is your answering service. This is simple and it will strengthen
your muscle with making decisions to automate your business. Soon, you’ll have your entire business on
autopilot.
The first step is to get in touch with an answering service, you can try Laverne at answer center as well (her
info is on page 39). Ask them if they take calls 24 hours a day. You want this because some sellers may be
calling from a different time zone. Plus some sellers are up late trying to figure out what to do with their house
and you want to be able to take the call. You can either get an 800# or a local number, it doesn’t really matter.
I use a local number sometimes and I also use 800#s on different campaigns. They both work. After you find a
company that takes calls 24hours, then you’ll give them the following script Fig. 4-F.

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 Fig. 4-F

ANSWERING SERVICE SCRIPT

Give this script to your answering service

Answer script

Thanx for calling (Your Company Name), may I help you?

How did you hear about us?

May I have your Name please

What’s the address to the property

Phone number

What’s your loan balance?

Monthly payment? How many months are you behind on your payment?

What are you asking for the house?

What is the house worth?

When would you like to close? Always mention the next season to the seller, (Summer, Fall, Spring)

What repairs or upgrades does the house need?

Thanx for calling. Our buyer will be back in touch with you shortly to discuss several possible options to
purchase your house. What time is good for you?

Date

Time

They should be able to follow this script very easily. Once they have it on file then let them handle all of your
“buy calls.” When calls come in, let them ask all of the important questions so you will be informed of how to
approach the lead. The answering company must have the capability to email the seller’s information to you. It
shouldn’t cost too much more.

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 After you receive the answers to your questions via email, you can then look at the information and get a feel
for what type of exit strategy you may be able to use. I’ve included some of the emails that I have received
from sellers at Fig 3-C, 3-D & 3-E. I’ve copied and pasted some emails from my answering service so you can
see how it comes in my email inbox. Please note that I change my questions around from time to time.
Sometimes I don’t pre-screen as much because I plan on going to see the house either way the numbers fall.
Periodically I change my answer script questions around depending on the deals I have going on. But the main
questions have been provided for you in the script earlier.
Fig 3-C

This looks like a

good lead & I
will follow up
immediately

This is a deal that I would make sure I called back asap. As you can see, the main questions that I’m
interested in are: Monthly payment & loan balance. If there is no mortgage, this means I may be able to
wholesale it to another buyer or rehab it myself. As long as the owner will take a low enough offer. If there is
no payment, then I may be able to get some owner financing as well. Either way, this email is the tool that
you’ll use to get prepared to contact your seller. Even though the information is there, you’ll need to verify all
of what you have in the email. Even though you have the answers to some of the questions you need, just ask
again when you have the seller on the phone, and even when you arrive at the house. They won’t have a
problem telling you again.

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 Tip- When we talk to sellers, we need to Trust what they say but verify all of the information
they have given us. For some reason most sellers like to exaggerate the truth.

Let’s look at another lead. When we’re looking at email leads, we want to already start leaning to an exit
strategy mentaly.
Fig 3-D

This looks like I

may not be able
to make this a
deal

Here we see that there’s a mortgage on the house and they are 2 months behind on the payments. We need to
verify that all of the info is correct by the time we meet the seller because they’re already behind. Typically the
seller feels ashamed and won’t tell you the real number of months they are behind until later. In situations like
these where the loan is behind, I need to know exactly how many months that loan is behind. When I go to
meet the seller, I need to know how much money I’m going to have to come up with to make a viable deal
work.
In this deal, there is no equity for me to be able to wholesale or rehab it. Perhaps, if the house is in good
condition, I’ll do a “subject to” with the seller. We’ll cover “subject to” and other advanced tools later in the
book. But for now, you’ll probably need to pass regarding attempting a wholesale deal on this one. But, I’d
still contact the seller and find out the exact numbers so I can make an educated decision. Next we’ll see a lead

70
that comes through about 2-3 times a month. These are where contractors will call in looking for work. In Fig
3-E below, you’ll see what that looks like.
Fig 3-E

This is a deal
that came in
from a person
looking for work.

This lead is an example of precisely why we have our system set up for us. This person could very well
waste 5-10 minutes of your days just by asking you for work. He may not even be a professional. But you can
call him back when you have time to see if he’s any good if you’re looking for a contractor.
Now it’s time to call the leads and set an appointment to go out and see the houses. When you call the home
owners back it will be on your time. Your posture will be much higher when you do business like this. Think
of a salesman that knocks on your door and asks if you want to buy new windows. The 1st thing you’re going to
do is put your guard up and probably ask for a huge discount. And rightfully so, he came to you for business,
you didn’t ask for his help. These types of salesmen have to jump through hoops and loops to get you to buy
the windows because his posture was;“let me sell you something”. Now, let’s think about how it feels when
you actually go into the window store and ask if you can buy a new window for your house. The window
salesman doesn’t care about giving you a discount. His attitude is; “you came to him for help”. He was doing
quite well without you so his posture is different, he wants to help but he has less of a concern. I remember a
tenant had broken one of my windows in a rental. I took the broken window to a local window shop to get it
fixed. The man told me it would be $80 to fix it and then I could just slide it back into the original window
pane. It would be so easy and it would take about a week. I screamed “WHAT… $80 dollars….a new window
71
only costs me $109 at Lowes”. He very politely said “feel free to go buy a new window and get it installed…..
have a good day.” His posture was unbelievable. I thought he was going to give me a discount because I told
him how much a new one costs. But he truly didn’t care whether he had my business or not. Me being a
dummy, I never took the time to think that this man must know the prices; he’s in the window business, duh…..
My point is; always have the upper hand when dealing with motivated sellers. They are coming to you for
help not the other way around. When you set up your system to take the calls you can guarantee that you will
be in the driver’s seat when you talk to all sellers. You can call them back from a quiet place and have your PIS
ready to take down the information and put it in your deal book. I know you’re going to be great, get your
system in place, Save YourSelf Time Energy & Money…. GOOD LUCK!!!!!

Tip- My motto is simple “I buy houses…. I don’t get sold houses”

If you run your business like this, you’ll have less stress. But remember it’s going to take several leads to get
one deal. It’s kind of like looking through a deck of cards for the ace, you know it’s in there you just have to
look through the deck as fast as possible.

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 CREATING MASSIVE CREDABILITY, even if
you’ve never bought a house

There are a few things that you’ll need to do after you talk to the home owner and have set up an
appointment to go see the house. So you aren’t just another “Joe Blow” investor looking at the house,
you’ll want to create a credibility kit. This kit is designed to let the home owner know that you are a
legitimate buyer. It also lets them know you have done business before or you have people that can
vouch for your professionalism. I never show up at a home owner’s house without this kit. It very
well could be the difference in you getting the deal or not. Let’s understand how this psychology
works:
Let’s say you’re in charge of a volunteer program that’s doing a fundraiser. Your fundraiser is selling those
Krispy Kreme doughnuts. It’s your team against the other team and the winning team gets $1000. There are 2
ways you can approach selling your doughnuts. You can either work with a cold lead; that’s when you try to
get people to buy doughnuts that you have no connection with. Or you can work with a warm lead; that’s
selling to somebody that has referred you. Once somebody has bought a doughnut, it’s one of your top
priorities get a referral from him. He’s already done business with you and he can vouch for you. So let’s say
Mr. Smith bought 3 boxes of doughnuts. You then ask Mr. Smith if he knows anybody else that would like to buy
your doughnuts like he just did. Mr. Smith says yes, go talk to Mr. Green and tell him I sent you. You then go
to Mr. Green and say “Mr. Smith bought 3 boxes of doughnuts and he said you may be interested in buying
some as well; how many would you like?
In real estate it’s the same thing. Every time you do any type of business with another person
whether it’s buying a house, selling a house, cutting grass, babysitting, volunteering or whatever it is
you have done, make sure to get a referral from them. I have referral letters from my mother and
Father. I use their 1st names on the referral so the person reading it won’t know. But it’s ok to use
family members as well. Your family should know you the best and will be supportive. It’s amazing
how many people have actually called my referrals to check and see how I do business. These referrals
will be worth gold when you are sitting down with a home owner and telling them you will buy their
house. Let’s take a look at exactly what I give the home owner when I have an appointment and go
view the house. Fig. 44-H is my thank you letter. It lets the home owner know that I took the time to
write a letter and thank them. It shows appreciation and professionalism, a quality that your
competition will be lacking when they come to view the house and just leave the home owner with a
lowball offer.
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 COPY OF MY THANK YOU LETTER

Fig. 44-H
Dear Mr. & Ms. Troy,

RE: Sale of 123 Easy St.

I hope all is well with you and yours. Thank you for allowing me and my team of investors to serve
you. Enclosed you will find several referrals from other families we’ve served in the Hampton Roads
community. My goal is to offer you professional service with integrity so that I may get a referral from
you one day as well. It was a pleasure meeting you and I look forward to hearing from you soon.

Sincerely,

Kris Haskins
757-660-2628
Kriz1204@gmail.com

www.sellhouseVA.com

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 The thank you letter will be the 1st document in the credibility kit. It’s the first thing the home
owner sees when he opens the envelope. After you leave the house, you want them to like you & to
want to do business with you even though you may not be the highest offer. The next documents will
be your referrals. These referrals will set you apart from the competition. Remember the doughnuts;
we’re going to do the same thing. You’ll include in your credibility kit envelope 3-4 referrals from
other people you have either bought houses from or done business with. If you’re new, you can get
referrals from people at your church, or just ask family members to do one for you. Maybe ask your
brother or sister or Aunt or Uncle. You’ll be the one that writes the letter so all they will have to do is
sign it at the bottom. You can ask a neighbor or even a friend; these referrals are just to let your seller
know that you have credibility and won’t waste their time. They’ll be crucial when it comes to doing
subject to deals as well as borrowing huge amounts of money from people. In the private lending
course I’ll show you how I borrowed $100,000 from a lender for one deal. Your referrals will make
your lenders feel comfortable giving you money. I’ve included some personal referrals for you to
copy. Fig 44-J are some of the referrals I use on every deal. I just copy them and place them in the
back of my credibility kit when I meet with the home owner.
.

75
Copies of my referral letters
Fig 44-J

76
77
78
79
80
You have my permission to use any of the copy in these referrals. Notice how I started to put
the owners name and occupation at the top of the referral. The reason for this is to try to get a
connection with the current home owner and past people that I’ve bought houses from. Perhaps
the new home owner will be in the same line of work as a past home owner. He’ll know that I
work with the average every day person and I don’t try to con people. These referrals along
with taking your time with the home owners when you do a home appointment should set you
up for success with your deal.

Tip- Make sure you give the home owner the envelope with the thank you letter, your
referrals & your business card just as you are getting ready to leave the appointment. Tell
them you brought this for them but don’t tell them what it is. It will make them feel special.

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 SECRETS WHEN TALKING TO SELLERS
This next section is extremely important to learn and digest. This is the most important part of your
business. Talking to sellers will get you the most results out of all of the actions you do in the business.
Before we go forward, I want it to be clear that talking to sellers is an art, not a science. By that I mean
you can have all types of scripts and one liners from coaches, that I’m going to give you, but you are
going to have to be YOURSELF. When I say “be yourself”, you should recognize your personality and
what you look like when you talk. As for me, I know that I’m a great conversationalist. When it
comes to being cool, I am not. I’m not a smooth talker and I recognize that I’m extremely corny.
Some have even called me nerdy. In high school I was actually called a band nerd. But that is what
works best for me. When I just act like my nerdy self, things always seem to flow. I can pretty much
talk to anybody about anything. I know the hot buttons that will get people talking and I’m going to
share them with you later. Learn your facial expressions and body movements. Watch yourself in the
mirror when you talk and look at your face and your mouth. I’ve watched myself talk in the mirror
many times and it works. Watch how your eyebrows move when you talk. Notice your cheeks and the
way your eyes blink because all of this stuff is important in being a master negotiator. Masters can get
people to do things for them without the other person even knowing it. Focus your eyes at different
places on the mirror as you talk so you’re not just looking directly in your own eyes. In negotiations,
all we are looking for is to come to an agreement with the seller. We want the seller to understand and
believe the same thing we believe about their house. If the seller already knows that their house is not
worth top dollar and the repairs will be very expensive, then you have an easier job negotiating with
them. If they think their ugly house is worth top dollar, all you can do is attempt to negotiate and show
them why their house isn’t worth top dollar and should be sold at a discount. You won’t be able to get
results from all sellers so don’t feel bad when you have 10 appointments in a row tell you that your
offer is too low.
When you call the seller back to confirm what your answering service emailed you regarding the
numbers, your goal is to set the appointment. From this point on you are in the negotiation mode.
Every move you make should be a calculated move, even setting the appointment. Just like Tom
Hopkins says you want to “ABC” Always Be Closing. During our 1st contact we want to start to close
them. Your 1st close will be when you set the appointment. A closing is simply when the seller agrees
to your terms, no matter how small it may be. The biggest close will be the seller agreeing to your
purchase price. Only set appointments on your time. When you call the seller, you will want to create

82
some small talk so you don’t come off like you are all about the cash. This is called the slow dance.
There have been instances where I’ve had to slow dance with a seller for up to 2 years to get the deal.
You want to feel out your seller over the phone to find out how fast or slow you need to move. For
instance, a full time lawyer that inherited his brother’s house is going to be a different type of seller
than an elderly lady that’s getting ready to move into a nursing home. Make sure you connect with the
sellers mentally and emotionally. Don’t try the same strategy with all sellers as this will not work. The
lawyer will more than likely want to get right to the point and find out how much you’re offering. The
elderly lady may want to get to know you because you remind her of her son that passed away. This is
an emotional time for most sellers as most people only sell 1-2 houses in their lifetime. Remember the
4 personality types:

a. The know it all- He already knows the market and what he can get for the house & you can’t
change the way he thinks, typically serious
b. The information gatherer- Just wants to know more information about you and how your
company does business& how this real estate thing works
c. The helper- Wants to help everybody, needs to feel accepted and wanted and doesn’t like saying
no, also may like being taken advantage of
d. The play boy/girl- Wants to have fun, rather talk than do the deal, wants to get to know you on
a personal level

If you’re not a conversationalist then you need to flip that switch to the “on” position right now and
give it a try. You don’t want to be practicing in from of a seller with $30k worth of equity for you.
From now on, when you talk to home owners you are a professional conversationalist. Keys to
being able to talk to anybody:

1. Always be friendly
2. Ask where they are from
3. If not from your city, how did you get here? OR What brought you here?
4. Do they have any kids/grandkids?
5. Did you grow up in the house?
6. Where do you work and how long?
7. I bet you’ve got a lot of memories in the house
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8. Have you seen the news lately about..(insert current event)
9. Have you ever been to ______________? (mention a place you’ve traveled)….. boy it’s cold/hot
there isn’t it….
10. Are you the only child?
11. (If house is vacant)-I’d be worried about somebody breaking in… You’re not worried about that?
12. Tell me a little bit about the neighbors

Notice the above are mostly questions, they will get your seller talking about THEM… The more
they talk the more they will be willing to tell you what their problem is. Make sure you leave your
phone in the car. You don’t want it ringing in the meeting. I have stayed at seller’s houses for hours
and hours. I want them to feel bad for not selling me the house. The longer you stay at the house, the
better. There have been times where I’ve visited home owners and stayed for several hours. Then,
another investor came by the house and offered $4k more than me. The owner told me that the other
investor came by and walked through the house and made the offer. Since I took the time to get to
know him, he said he felt more comfortable with me. He’d rather get less money by doing business
with me because he said I didn’t just look at his house and leave. By the way, that’s the worst thing
you can do. Most investors have one thing on their mind when they visit home owners… MONEY.
You will have it on your mind also, but don’t let it control the way you act at your appointment. You
are at their house to solve their problem, and if you can make some money by doing it, that’s cool too.
The following is the script I follow when I visit home owners. You can follow this script but make
sure you make it FEEL like it’s yours.

Tip- Remember to stay at the house as long as you can. This will win favor with your seller
and make you seem genuine. You want them to think that you’re not all about the money. Get them to
like you because people do business with people they like & trust…

Tip- For my exclusive 11 cd Negotiating audio training, visit

NinjaNegotiating.com

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 Fig.45-p
Seller call script-use when you call the seller back for the 1st time

a. May I please speak to Mr. Smith, I’m calling from FAST HOME BUYERS,
did you call us about a house
b. Well, thanx for calling us, how can we help you?
c. I understand……. could you tell me a little about your house? (build a
connection with personal questions)
d. Have you ever lived in the house?______ I bet you have some good memories
in the house, huh?
e. Ok, who lives in the house now? _______________________
f. IF VACANT- WOW, I’d be worried about vandalism, but you’re not worried
about that are you?
g. Ok, when was the roof, windows and siding last updated? _____________
h. And how about the kitchen and bathrooms, do they have up-to-date cabinets?
_____________ Your cabinets look good & I like them myself, but today’s
mom wants all new countertops and cabinets-(you can use this when you get
to the house)
i. (no matter what they say about the house, you always say)
“The house sounds nice OR the house sounds like it has a lot of potential,
WHY ARE YOU SELLING?”
j. Well, I’m not sure if we can help you, but I could come out and at least take a
look!!???
k. TELL THEM HOW YOU DO BUSINESS- My company looks at 10-15
houses a month but we can only buy 1 or 2. We are cash buyers and we can
close as fast or slow as you like. Do you want to have everything wrapped up
by (mention the next season) beginning of Summer of end of Spring. This will
usually pull a time frame out of them. You do this to test their motivation…
l. Ok, I think we can do that. I have an opening on Tuesday at 3pm or
Wednesday at noon, which one works best for you. (This is when you’re
going to close them 1st)
m. Ok, I’ll see you on this Wednesday at noon, thnx for your time…

Use the info here to write into your Property Information Sheet(PIS) and log into your deal book.

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 LIGHTENING FAST DEAL ANALYZING
Before we go into this wholesale system we’re going to take a little time and get into what a
wholesale deal actually looks like. The 1st step in getting a wholesale deal completed is being able to
recognize what a deal actually looks like. This is extremely important because you will need a system
that allows you to move quickly in looking at deals. In my town, the competition is VERY fierce. I’ve
actually seen guys look at 20-30 houses a day and they have a system, just like you do now, of keeping
all of the houses in order. You won’t last long in this business without a system of how to analyze
deals and a system to access your deals. After reading this you will know exactly what an investor deal
looks like. There have been many times when people bring me deals that just don’t fit the wholesale
criteria. When this happens it’s just a big waste of time for you, for your seller and for me. So I’m
going to give you the terms you’ll need to be able to communicate properly with me, or any other
investor in the world.

Tip- You better be ready to move fast if there is heavy competition in your area. If you see a
good deal come out in the morning, you better have your offer in that same day. Some people suffer
from analysis paralysis. This is where you look at deals for too long and never actually make any
offers. I know of several people in my area that have this. Don’t get this disease, It’s hard to cure!!!

The 1st thing we must analyze is the After Repaired Value(ARV) or resale value of a house. This
value is another way of saying what the home is worth after it is fixed up in A+ shape. The after
repaired value can be determined in many ways. You can determine the ARV by evaluating “like
kind” houses in a ½ to 1 mile radius of the house you are looking to buy.

Tip- It is extremely important to keep your comps under a mile. This is the same distance that
the appraisers use to determine the value of a house. If you go outside of a mile you’ll be jeopardizing
the true value of your house and you may not be able to sell it!!!

Some of the factors I use to determine my ARV, which you will get with your property information
sheet, are:
86
 a) square footage of house, price per square foot of other sold houses
b) lot size, 1 or 2 car driveway(no driveway),
c) does it have any sizzle? (waterfront, close to mall, 2 car garage, pool, etc.)
d) # of levels(stories), # of days other houses have taken to sell,
e) # of beds & baths, year built, HVAC, # of houses on the market in that area

Property Information Sheet (PIS)

I have included the worksheet that I use on every property I buy. It’s the 1st document I prepare when I’m
looking at a house, even if I don’t buy it. It fits directly into the deal book under the 1st letter of the street name.
The property information sheet has most of the important questions that you need to know before you get a
house under contract. Use this form every time you get a deal because you will forget some of these questions
just like I do and I’ve been doing this for years. You’ll see that this sheet has repair questions, owner questions
and loan questions. You need to know the seller’s birthday so you can send them a card every year. You want
to make sure they remember your name so when they hear of somebody selling a house, they’ll pass your name
& number along. It’s great running into a person that you helped. They are so thankful that you took that ugly
house off their hands and they don’t have to pay any more taxes or utilities on it.

Tip-make sure you also send Christmas cards to each person you’ve ever bought a house
from. You may want to send “Holiday” cards instead. You never know when/if they will want to sell
another house or know somebody that is selling a house. Plus, they may want to invest with you.

The lines at the bottom are for you to write down all of the important info you obtain while you’re putting the
deal together. You’ll be writing down uncle’s name/number, the next door neighbor’s name/number, utility
account info, lawyer info for estate houses, brother & sister info and anything else that pertains to this particular
house. I remember working a deal with a coaching client where there were 4 brothers. They had many issues
we had to clear up in order to pass title on the house. I was dealing with the child support agency for unpaid
child support, the attorney that had a judgment taken out one of them, the city tax assessor’s office because they
hadn’t paid taxes in several years etc. etc. The PIS came in very handy because all the important phone
numbers were on one piece of paper. All information regarding this house goes on the PIS. So when you’re
scrambling looking for a number or a name all you have to do is open the deal book, turn to the S tab, go to
sunset and all the info is right there waiting for you. With the PIS you’ll be able to analyze a deal in a few
87
minutes and move on to the next house. Keep these forms in your deal book so you can come back to them
quickly and view your thoughts.

PROPERTY INFORMATION SHEET (PIS)

Tip-The property information sheet will help you determine the value of each house & the
amount of repairs needed. Download it at www.therealestateroundup.com

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Determining the ARV is an art, not a science. The price per square foot(sf) will give you a starting
point of what “like kind” houses are selling for in that particular area. But price per square foot is
ONLY a starting point of determining the ARV. For example, there can be an identical house in the
same area that sold for $110/sf and your house could sell for $125/sf. This can happen because your
house is vacant and a complete remodel with stainless steal appliances, new roof, windows, siding,
kitchen/bath, etc….. The house that sold for $110/sf could’ve had a family living in it with older
appliances, older roof/windows, no HVAC, old kitchen painted pink, etc. etc.. You will need to do a
thorough investigation of WHY homes are selling for the prices that they are.
The next term you need to understand is MAO (Maximum Allowable Offer). This is the
maximum amount that you will be able to offer for any given house in order for it to be deal.

Tip- Note the MAO we are going to discuss in this book is for our wholesale offer. Investors
that do rehabbing will have a different MAO that doesn’t include a wholesale assignment fee.

Please note MAO will be different depending whether you plan on wholesaling the deal or
rehabbing the house yourself. For the purposes of this book, we’re going to approach MOA as if we
will be wholesaling the deal. The BEST way to buy investment property is at wholesale prices, or
under market value. The MAO, as I’ll show you below, will be different for each investor. If you are
selling to an investor that uses hard money to buy houses, then you’ll need to make your offers
accordingly. Hard money lenders (HML’s) typically only lend up to 65% of the ARV. A HML is a
lender that lends based on the value of the house and not on the strength of the borrower like most
banks. On the other hand, if you are selling to a cash buyer then your percentages will be a bit
different. A cash buyer will be using his own cash, private funds or a line of credit. None of these
types of funding have a 65% of ARV stipulation. A cash buyer can pay up to 70%-80% of the ARV.
They will also pay a little more to have the convenience of a rehab close to their home. Because of
this, it is good to have as many cash buyers as you can find. Cash buyers can only handle a few deals
at a time because they are utilizing non-traditional funds so you’ll need to have at least 3-5. We will go
into several ways of how to find these buyers later in the book.
I’m going to analyze one of my deals so you can see exactly how the numbers fall.
Actual example- I got 623 Delaware Ave. Hampton, VA under contract for $48,513. Always use an
odd number so your sellers will think you have some super computer financial program that gave you
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that crazy number and you’re bound by that number. You go to homegain.com and estimate that the
After Repaired Value(ARV) is $130,000. You then walk thru the house and estimate the house needs
approximately $30k worth of work. All houses I do need at least $30k. And you want to make at least
a $5k assignment fee. You have already determined that your Maximum Allowable Offer (MAO) is
$48,500-This is the amount you can offer to make a rehab deal work & get you at least a $5,000-
$6,000 assignment fee. There are 2 ways to look at this deal. Buyer 1 is going to be using a hard
money source. Buyer 2 is going to be a cash buyer which means he can bend the rules a little…. View
the charts at Fig 41-L & 41-M to walk you through each buyer….

WHOLESALING PROPERTY EXAMPLE #1

Fig 41-L

90
 INVESTOR BUYER 1
Uses a hard money lender and can only qualify for 65% of the
ARV= $130,000(.65)= $84,500
-Needs $30,000 in repairs
$84,500-$30,000=$54,500
$54,500-Maximum amount your buyer can borrow to buy the
house with $30k more for repairs
How do you get your assignment fee My offer
$54,500-$6,000=$48,500 ($48,513 actual offer) was
$5987- Actual assignment fee for this deal $48,513
$130,000 ARV I estimated
X 65% Maximum HML will lend at least $5k
=$84,500 for
-$30,000 Repairs assignment
=$54,500 fee
Borrowing Investor can pay $54,500 for this house

Fig 41-M
INVESTOR BUYER 2
Uses all cash or a line of credit to buy his deals
The amount of profit he wants to make on each deal is usually around
$20,000

-ARV is still $130,000

$130,000-($20,000profit)=$110,000

The house still needs $30k for repairs

$110,000-$30,000=$80,000
My offer is
Buyer has hard costs of holding costs, Realtor fees, closing costs to buy
still
& buyers closing costs to sell=($18,000- $20,000)
$48,513
$80,000-$18,000=$62,000

He can pay approx. $62,000

How do you get your assignment fee. He’s probably going to talk you
down a bit
$62,000-$48,513=$13,487

$13,487-assignment fee for this deal!!!

$130,000 ARV
-$20,000 Profit
=$110,000
-$30,000 Repairs
=$80,000
-$18,000 Hard costs
=$62,000
Cash Investor can pay approx. $62,000 for this house
This is an approximate and will differ on each investor…

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 WHOLESALING PROPERTY EXAMPLE #2
Fig 41-0

138 Ransone St.

Here is another property that I wholesaled in about 7 hours. I called one of my buyers, he went by the
house, said he liked it and gave me a $1,000 Non-refundable credit to buy it. I put it under contract for
$47,750k, and sold it for $53k. I’m going to show you the numbers first, then I’m going to tell you
how I found the deal & negotiated the price down to $46,750k. The numbers are below….

Tip- Multiplying your value(ARV) times 65% (.65) will allow for holding costs(Interest
payments, utilities, taxes, closing costs, realtor fees, etc. etc. ). It also allows for the investor
rehabber’s profits as well.

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 Fig 41-P
INVESTOR BUYER EQUATION
ARV(65%) – repairs- assignment fee = MAO
$135,000(.65) - $35,000 - $5,000 = $47,750

-ARV is $135,000
$135,000(65%) =$87,750
Take $87,750 minus repairs
The house needs $35,000 for repairs

$87,750 - $35,000 = $52,750

Then I subtract my assignment fee. (Your assignment fee is however much you want
to get paid) In this case I wanted at least $5,000

Subtract your assignment fee

$52,750 - $5,000 = $47,750

$5,000-assignment fee for this deal!!!

$135,000 ARV
X .65
=$87,500
-$35,000 Repairs
=$52,750
-$5,000 Assignment fee
=$47,750 MAO
Investor getting a Hard Money Loan can pay at least
52,750 for this house
Cash investor OR long term hold buyer can pay more!!!!

This house was found by canvassing the neighborhood. I was doing a rehab on the same street and
one Saturday I was riding the neighborhood yard sales I stopped at this one. The owner was there and
as I walked through the house I noticed it was very nasty. The previous tenants left the place extremely
dirty. It smelled like dogs had urinated in the entire house. The walls were yellow from smoke tar. I
immediately said to myself…. “This smells like Money!!!”. I asked him what kind of tenants did he
have last and he said it was his brother-in-law. Apparently he inherited this house along with his
brothers. The brother-in-law was living in it and tore it up bad so he<the seller> was just ready to sell.
I came back a few days later and made him an offer.
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 After he calmed down from the low offer I gave him, he told me… no, and he’d call me if he
changed his mind. He said my offer was too low. That translated to me that my offer was perfectly
priced. So over the next several months I kept sending him letters to let him know I was still interested
and about 5 months later he called. He asked me if my offer was still good. I had offered him $48,000
earlier. I knew the ARV was $135,000 because I sold 3 houses in that same neighborhood. I told him
that after I did my termite inspection, I could let him know if my offer would be the same.
After the termite inspection came in, the report said there was about $4000 in termite/moisture
repair that needed to be done.

Tip- Always, always, always get a termite inspection done on your prospective deals. It will
give you a bargaining chip when you negotiate with sellers and it will actually give you a reason to
lower your offer if you offered too much.

We discussed the amount for the termite repairs. He knew there was some damage and I explained
the extent of the bad wood that needed to be torn out and replaced. During our conversation I simply
asked him if it would be ok for us to split the cost of the repairs. He agreed and we lowered the price
$2,000 more dollars. I made $2,000 with one 10 minute phone call and you can too. Make sure you
tell the seller that you’re willing to still buy the house and take care of any other problem that comes
up. So this deal went from making $5,000 to making $7,000. My buyers closed quickly because he’s a
cash buyer.
It’s always easier and better for you to have an all cash buyer. They can close faster and don’t have
as many restrictions on the price, as you can see. But you must remember that there are only a few all
cash buyers in any market place so look for them all. The rest of your buyers will be using hard money
which is okay, but it won’t net you as much on your bottom line. In the older days, before the big
collapse, HML’s would lend up to 70% sometimes 75%. They would lend the money and trust the
borrower to do the work. It got so bad that some investors would borrow the money, and take the
money and never do the work. After that happened a few times the lenders got real tight and stopped
lending at high percentages. Once again a few guys made it harder on us all. The lender wants to feel
safe & that you will do what you say and get their money back to them.

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 LOCKING DOWN THE DEAL
Signing the contract & using contingencies so you don’t get sued

Your main goal in this entire system is to get your hands on a check as fast as possible. The next step in the
deal process that will get you closer to a check is getting the house under contract. This is the process by which
your home owner actually signs the paperwork you’re going to give them & commit to sell you their house.
Getting houses under contract can be a very scary time if you don’t know what you are doing & if you do it
incorrectly. You don’t want to have to come back to your seller and tell them you did something wrong, they
may not be too happy to work with you.
So you’re at the house, and you have your scripts and now you want to make the seller an offer. We know
that at this time, we want our exit strategy to be a wholesale deal. The wholesale deal equation will vary but
currently its: 65% of ARV(After Repaired Value) minus repairs, minus your fee. Let’s use a $100,000 house.
Then you take 65% of the ARV which is ($65,000) minus all of your repairs, ($20,000) minus your wholesale
fee ($5,000) which leaves us with an offer of $40,000. This is only a start in determining your MAO,
(Maximum Allowable offer). Remember, determining ARV is an art, not a science. Some people will want to
make more and raise their assignment fee more than $5,000. It’s completely up to you to determine how much
profit is in the deal. On small deals like this one, I typically look for a minimum of $5,000. When you
determine your ARV, make sure you keep in mind that 2bd houses have a lower ARV than 3bd. And houses in
non desirable school zones also have lower ARV than houses in good school zones. Do your research so you’ll
know what factors are driving ARV. MAO is the most you can offer your seller and still make money on the
deal.
You’ll be focusing on getting the contract signed and building your rapport while you’re at the seller’s
house. One of the main concerns for me and most investors is; “how can I get out of this contract if I can’t
close on it or get it sold?” The way we protect ourselves is by putting contingencies into the contract.
Contingencies are subtle languages that will allow you to walk away from the deal if you are unable to either
close it yourself or wholesale it. There are several different contingencies that I use but I only put 1 or 2 in each
contract. You don’t want to use too many because your buyer may become wary and think you are not a serious
buyer. Some of the contingencies that I’ve seen used are:
i. Contract is subject to 3rd party inspection
ii. Contract is subject to suitable financing by buyer
iii. This contract can be assigned at any time
iv. Contract subject to walk through inspection by buyer
v. Both parties agree that the $100 earnest money deposit shall be remedy for all losses if buyer doesn’t
close
vi. Contract subject to satisfactory appraisal on property
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vii. Seller shall provide a clear termite & moisture letter
viii. Contract contingent upon buyer and/or his partner’s inspection before closing

You’ll see which ones I use in my standard agreement and I recommend you use at least 1 or 2 in your contracts
as well. These contingencies will save you from a serious law suit plus make it easier to wholesale to your
investor buyers. They will typically want the contract to have a contingency also. Either way you approach
your paper work, make sure you put in some type of clause so you won’t get sued for nonperformance.
You will also need to include language in your contract that will allow you to market the property. By
marketing I mean to be able to get buyers in to view the house and let the world know that you’re attempting to
sell it. We want to use every type of marketing that we have at our disposal including the MLS. Yes, you can
list a property on the MLS after you have the signed contract. We’ll get into that later in the course. The
language you’re going to use is “buyer shall be able to market and/or assign this purchase at any time.” In this
statement you’re clearly letting the home owner know that you may market this property. I’ve never had a
seller ask me what this means but if they do ask you, just tell them it’s standard language and we use it in every
contract. They typically won’t even know what assigning the purchase is but if they ask, tell them sometimes
you assign your acquisitions to your company or you add a company name. No big deal, then tell them to sign.
You can view my purchase agreement at the end of the course.

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 DEAL INSURANCE Preventing sellers from backing out of your deals
You’ll always be in control of your deals if you pay attention to this section. We’re going to be discussing a
tested way of protecting you against sellers that try to change their mind and back out of your deals. I told you
earlier about one of my deals where another investor contacted my seller. He then tried to take my deal from
the seller by offering him a few thousand more than I had offered. Well, just for argument sake, let’s say that
my seller had taken the offer for a few thousand more and tried to sell his house to the other investor. I would
have lost the deal and been out of my assignment fee. What do you do if a seller changes his mind after signing
your contract and decides to sell to somebody else for more money? It’s very common and it happens all the
time. Sellers get mad that they gave somebody a great deal and don’t want you to make money, they get
offered more money and sometimes a family member tells them how stupid they were for selling you their
house, etc.etc.. It’s commonly known as Seller’s remorse. But you don’t want an emotional seller to be in
charge of your future.
I’m going to give you some great information & a special tool that I had to learn how to use the hard way. A
long time ago when I did my deals, as you can see in my old flowchart, I would get a contract on a house and
then hope & pray the seller didn’t change his mind and back out of the deal. I thought that’s just how the real
estate business worked; you win some and lose some... Plus it’s perfectly legit for people to change their
minds, right? I thought, once a seller has decided not to sell me his house, I had to get a lawyer involved to
enforce my contract. We all know what happens when lawyers get involved. You’ll be paying retainers fees,
plus all types of other fees to try to make a seller sell you his house. There was another deal I had a while ago
where I stood to make around $40k on the flip. The seller had signed the contract and I was working on my
financing. The house needed about $20k of work and I had it under contract for $88k. The ARV on this one
was about $180k & I was so excited about the deal. Well, as we got closer to the closing date, the seller stopped
returning phone calls and didn’t answer the door when I knocked. About 2 months into the deal I went to an
attorney to try to sue him to sell me his house. After all, I thought, he did sign the contract.
Walking into see a lawyer is such a daunting task. From the start he charged me $100 an hour just to talk to
him about my contract. When I walked in he had a huge clock on his desk that started running when I started
talking. He listened to me talk and told me that he could indeed get the seller to sell me his house. He also told
me in order for him to get started he would need a $2000 retainers fee. WOW, I thought, $2000…. I’ll just
have to think about that. After my 1st meeting with him he gave me a bill for $50. I was in his office for 28
minutes.
Even if I hired him, there’s still no 100% guarantee that the seller would give in without a fight. The $2000
was just a start. If the seller hired a lawyer then my bill could double or triple really fast. I just decided that I’d
chalk up that deal to the game and let it go. Needless to say I had big plans for that $40k. I don’t want you to
ever have to go through an ordeal like this.
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 Let’s change the “win some & lose some” mindset right now. I don’t want you to think that way. If you do
it right, then your seller won’t be able to sell to anybody else but you. It’s great, after they sign the paper work,
you can then sleep at night knowing he can’t back out. I’ve spent many sleepless nights pondering and
wondering how to make these sellers do what they say they’re going to do and sell me their house like we
agreed. There have been many other investors I know that have lost deals by sellers backing out as well. You
just can’t run a business on maybe’s, probably’s & hopefully’s. That mindset will keep you away from getting
a check. You need to know that your deals are closing so you can move forward with your life.
The good news is, now that you have this course, you’ll never have to worry about another seller changing
his mind and walking away from your signed contract again. You are going to be one of the few investors that
have “Buyers Insurance” to make sure your buyers never back out. This special insurance tool is called the
Memorandum of Contract OR the Affidavit of Understanding. These documents are almost identical. They
serve the same purpose, kind of like an “Agreement” or a “Contract”, they sound different but serve the same
purpose. The only reason I use the affidavit is because some courthouses will charge you transfer fees to record
the Memorandum but they will not charge you to record an Affidavit. Transfer fees can be upwards of $200 to
$800 depending on the assessed value of the house you have under contract. The city will make you pay
recording fees based on the assessed value and not the Contract price. So if you have contract to buy a house
for $10,000 but it’s assessed at $85,000 then the courthouse may try to make you pay recording fees based on
the full $85,000. I don’t know why some courthouses charge more, I just try to beat the system by changing the
title of my documents. By the way, an Affidavit or Memorandum is just a fancy word for a document. I love
the way the legal world tries to fancy up documents so lawyers can charge more for services.
In my area, there are 4 cities that I do deals in. 3 out of the 4 will not charge me transfer fees. However 1
city, which is Newport News, tries to charge me full transfer fees if I bring in a Memorandum. In this case I
just change the title and use the Affidavit of Understanding when I do deals in Newport News. You will have to
find out if your city charges transfer fees to record Memorandums. Typically the courthouse will only charge a
basic $21 dollar flat recording fee. This fee is standard around the country and should only vary about $5.
The Memorandum/Affidavit is a basic 1 page document that needs to be on legal paper. It needs to be on
legal paper so that you can have the words in 12 font size. You may also need 2 different places for the notary
to notarize the seller and the buyer if your seller is out of the area
(feel free to change the doc to add another notary for the seller if so.) This document simply lets the general
public know there is a contract between me and the seller. When you ask the seller to sign it just say “Mr.
Seller, this is our standard Memorandum that our attorney gets signed on every deal. It just states that we both
understand that we signed a contract together, that’s all”
I have yet to have a seller not sign this simple document. Little do they know that after this is signed, they
can’t back out of this deal… EVER!!!!! I have included a copy of both documents for you to use on ALL of
your deals. Don’t just use it on some deals, use it on ALL deals. You’re going to be tempted to skip this
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process, but I’m strongly urging you not too. I use this on every deal I do. As a matter of fact, if the seller
doesn’t sign this, then I don’t do the deal.
You’ll need to record the Memorandum down at the courthouse in the city that the house is located in.
Along with the Memorandum you’ll also need to attach a copy of the signed contract. Merely staple the 2 page
contract on the back of the Memorandum and write “exhibit A” on the top. So you’ll be recording the
Memorandum and the contract all at once. Just walk into the courthouse and ask where the deed room is. Then
ask where the deeds are recorded and tell the clerk that you need to record your docs. Make sure to take a self
addressed stamped envelope with you so they can mail the original back to you after it’s recorded and scanned.
The clerk will then stamp your doc and you pay the fee. It’s as simple as that and now your seller can’t sell to
anybody else but you. Congratulations, you have just clouded the home owner’s title. When I record these two
docs, I blank out the contract price and the seller’s address & phone number. This is so when people research
and find the Memorandum they will be forced to call you 1st. That’s exactly what you want. Typically this
should all cost no more than $25. When your seller tries to sell his house to the other investor that offered him
$2k more, then your Memorandum will pop up on the title search and it’ll be pay day for you. It’s kind of like
having a judgment against the seller, it must be satisfied before he can sell!!!

Tip- A title search is the process by which the title company goes to the courthouse to see who
is on title for ownership of a piece of real property. It will also turn up judgments and your
memorandum once you have recorded it.

Fig 56-C is the copy of the Memorandum and Fig 56-D is the Affidavit of Understanding. Notice both
documents are identical except for the title. They both serve the same purpose and will do the job just as good.

Tip- Notice the word “Standard” on all of my docs. I use this so sellers will think that all of
the paperwork they sign is simply standard legal docs and I didn’t manipulate them in any way. Use
“Standard” on all of your docs, it’ll save you time and get your sellers at ease…

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 STANDARD MEMORANDUM OF CONTRACT
Fig 56-C

(this MUST be on 1 page legal paper) it has been shrunk to fit

THIS MEMORANDUM OF CONTRACT entered into on _____________________, by and between

Tiffany Taylor aka Tiffany Brown, whose address is 6416 Palem Rd. Norfolk, VA 23513 hereinafter referred
to as “Seller” and Kris Haskins, whose business address is 26 Towne Centre way. Suite 130 Hampton, VA
23666, hereinafter referred to as “Buyer”.

WITNESSETH

The Buyer and Seller have entered into a Contract herewith and they desire to enter this Memorandum of
Contract to give record of the existence of the said Contract.

In consideration of the Property and other good and valuable consideration, the Seller acknowledges and
agrees that the Property described below is to be sold to the Buyer on the Contract of attached.

Date: ________________________
Said Property being located at: 6416 Palem Rd. Norfolk, VA 23513
Legal Description: 25 BLK B SEWELLS GARDENS
Parcel # 08760700

IN WITNESS WHEREOF, the parties have executed this Memorandum of contract and have caused
their hands and seals to be affixed hereto the day and year first above written.
Tiffany Taylor aka Tiffany Brown .
Print Seller Name

______________________________
Seller Signature

Kris Haskins .
Buyer

______________________________
Buyer Signature

NOTARY for Seller & Buyer

State of ______

City of ___________________ SS

I, ___________________________, a Notary Public in and for the City and State

Aforesaid do certify that the Seller, _______________________________ & the
Buyer,__________________________________ appeared before be this ____ day of ________________, 2009
and subscribed his/her names to the foregoing instrument.

NOTARY PUBLIC signature___________________________

My commission Expires:_______________
___________________________________________________________________________________

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 STANDARD AFFIDAVIT OF UNDERSTANDING
Fig 56-D

THIS AFFIDAVIT entered into on _____________________, by and between John Smith whose address is
123 Anywhere Dr. Newport News, VA 23602 hereinafter referred to as “Seller” and Greedy Investor, whose
business address is 132 B Ave. Hampton, VA 23661, hereinafter referred to as “Buyer”.

WITNESSETH

The Buyer and Seller have entered into a Contract herewith and they desire to enter this Affidavit to give
record of the existence of the said Contract.

In consideration of the Property and other good and valuable consideration, the Seller acknowledges and
agrees that the Property described below is to be sold to the Buyer on the Contract of attached.

Date: ________________________

Said Property being located at: 1234 Your st. Hampton, VA 23666
Legal Description: Kings landing block C lot 41,42
Parcel # 301-12442

IN WITNESS WHEREOF, the parties have executed this Affidavit of understanding and have caused
their hands and seals to be affixed hereto the day and year first above written.
John Smith .
Print Seller Name

______________________________
Seller Signature

Greedy Investor .
Buyer

______________________________
Buyer Signature

NOTARY for Seller & Buyer

State of ______

City of ___________________ SS.

I, ___________________________, a Notary Public in and for the City and State

Aforesaid do certify that the Seller, _______________________________ and the Buyer,
_________________________________ appeared before be this ____ day of ________________, 2009 and
subscribed his/her names to the foregoing instrument.

NOTARY PUBLIC signature___________________________

My commission Expires:_______________

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 WORKING WITH AGENTS
Being able to work with an agent is a skill and must be developed. Most agents think investors are the
cheapest type of people and want to only pay bottom prices for houses. You must let them know that you are in
this business to make them (the agent) and you money so your offers must be low in order to do that. You’ll
need to get on the automated MLS email for all houses that come on the market under $100k. We will be
focusing on affordable housing only. Next get your agent to send you all the active listings under $100k in
whatever area you want to buy in. I buy in all of Tidewater from VA beach to Newport News. You’ll then look
at the listings and let them know which ones you like. Ask the agent to check and see if the houses you like are
still actually available. Sometimes other agents don’t update the MLS system and will have a contract accepted
on a house and you waste your time going to look at it. So find out if it’s available and then go see it as fast as
you can. In my area of Virginia the competition is very tough. For instance, when a house comes out at 9am, I
need to have my offer in by 12 noon or the deal will usually be gone. I remember looking at a house that came
out at 8am on a Thursday. We went to look at it and we couldn’t get inside. The agent told me that there was
an elderly lady living in the house and that I wasn’t permitted to go inside at that time. Well, I agreed to wait
and be escorted into the house later that day. While I was waiting on the agent to take me in, another
buyer/investor went to the house and just knocked on the door. The older lady was there and was happy to let
him in. Needless to say he put an offer in while I was waiting to get inside. So you’ve got to move fast in my
area.
If you’re looking at a bank REO(real estate owned) the bank will not be willing to negotiate much less than
10% in the 1st 30 days of the house being listed. I was given this information by one of the major REO brokers
in my town. So if the house is put on the market for $85k, it’s best to do your research and make sure that your
MAO can be at least $78k-$80k to make it a deal. You need to make sure you can wholesale it for $85k-$87k
to get a $5k assignment fee. Any offer below that will more than likely be rejected by the bank that owns the
house. You’ll also need to have a proof of funds document when submitting any offer through an agent. One
of the best ways to get your offer accepted over other investors bidding on the same house is to have the funds
available to close the deal. You’ll be competing with other investors that are getting loans to buy the house.
When your competition submits their offer, most of them will be giving the agent a pre-approval letter from a
lender. However, when you submit your offer you’ll be able to give the agent a bank statement or a retirement
account showing the money sitting in the account ready to go to closing. Your offer will be much stronger
because the seller knows you won’t run into any loops that the lending bank requires to give you a loan. You
won’t need an appraisal, inspection, bank underwriting, and any of the loan processing from a bank to approve a
loan to buy the house. The selling bank & agent understand this and will lean towards your offer more so than
an offer from an investor getting a bank loan.

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 Tip-You will receive a monthly proof of funds bank statement or retirement account to use for
your offers when you are a member of my monthly training membership: from $30k-$70k depending on
my reserves.

Tip- Don’t let anybody tell you that you can’t wholesale a listed property, a foreclosure
property or even a Fannie Mae or bank REO property because YOU CAN!!!!! Even if you have a
contract with a seller that clearly states “this contract is non-assignable” YOU CAN STILL ASSIGN
IT!!!!! We will deal with that in the advanced coaching

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 SECRECTS TO FINDING INVESTOR BUYERS
includes sample ads & scripts
The last piece in the wholesaling puzzle is finding your investor buyers. The buyers I’m referring to are the
guys whom you will be assigning your contract over to. Buyers are the easiest people to get along with. It’s
kind of like bringing a Walmart store directly to a stay at home Mom, she’s going to love you. The buyer is the
key ingredient to getting a big phat check. You must have a strong buyers list because most buyers can only
buy 1-3 houses at a time. And, some buyers only buy in certain parts of town. If you have a great deal, it’s
very easy to sell it to a deal hunter. The big mystery is how to actually find these cash buyers. There are several
ways that I have found cash buyers. You want to make sure you get into the mind of your buyer and what he’s
looking for. He’s looking for a house, well below market value, in a good area, 3bd, as little work as possible
and he wants you to have the contract already signed by the seller. All he wants to do is give the contract to his
closing company and get the deal closed so he can make his money. He usually doesn’t care how much you’re
making. But if you’re making too much, say over $40k, you may want to do a double closing. A double
closing is where you actually close on the deal and then sell it to your end buyer. That way, your buyer never
knows how much you’re actually making. If you do a double closing you’ll need to have access to some cash
or use my transactional funding(same day funding).

Tip- I will send out all wholesale deals to my buyers list for members with an active monthly
training membership.

Some of the ways I’ve found buyer are as follows:

1. Your local REIA-Real Estate Investors Association…. In Hampton Roads we have
TRIG(Tidewater Real Estate Investors Group). I’ve had the pleasure of serving as Vice President of
this organization in the past. We also have PREIA(Peninsula Real Estate Investors Association). You
can find your local REIA at www.meetup.com or go to www.nationalreia.com to look for one in your
area. In our area we have the Tidewater Real Estate Investors Group (TRIGofva.com) and Peninsula
REIA at www.preia.com. Go to EVERY monthly meeting and network with other
buyers/wholesalers/rehabbers/lawyers/lenders/agents etc. etc… You’ll also want to get on the
association emailing list. I was able to find and sell all of my first 20-30 deals just by taking the email
addresses from the other deals that came out to the group. After you have the buyers email addresses,
you can create a database using an email server. I use cox.net because it’s only $9.99 a month and it
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lets you send out unlimited emails. Gmail and yahoo have a filter on them where you can only send
out a few hundred before they put a temporary block on your email account. I upload all of the email
addresses and then send out a blanket email to all of my buyers for each deal. Use the blind carbon
copy(Bcc) so all of your buyers won’t be able to steal each others email addresses. When you send out
a deal, make sure to include any other interesting activity that your buyers may be interested in. You
may have a meeting coming up, or you may be promoting yourself or a product. There’s a better
chance of buyers reading that additional info if you include it within a deal. When you send the email,
you want to include all of the pertinent information a buyer will need in order for the deal to peak his
“interest antenna”. He probably won’t buy the deal based on the email but at least he can make a
decision whether he wants to get inside and check the house out or not. I have included one of my
wholesale emails that I send out to my buyers on Fig 44-K
Fig. 44-k

3701 Chestnut Ave. Newport News, VA WOW!!!!!

Seller Desperate, must sell…… I have to sell my 2bd/1bth 915sf house in Newport news. It’s approx 913sf and
can be converted into a 3bd/1bth. The rear room has a closet so it will need a wall to be added to make it a
bdrm. The house has new carpet, central heating & Air, updated electrical, plumbing update, kitchen and bath
are in great shape (no leaks), freshly painted. I’m thinking it will need a roof in the near future. Has mostly
new windows, some older but still work(see video). Comes with kitchen stove and refrigerator.. Siding is good
and has a rear shed to hold all your things. This is a move in ready house great for rental… Solid comparables
below…..

-3705 Chestnut Ave. 649sf sold in May 09 for $34,000 in 22days…

-3707 Chestnut Ave. 760sf sold in July 09 for $45,000 in 4 days…

-1601 Chestnut Ave. 926sf Sold in May 09 for $65,000 N/A market time….

3701 Chestnut is assessed for $87,000…

I’m offering this house at a quick sale for $42,775, please feel free to call me for the lock box code on the front
door. View the picture slideshow by clicking below..

http://www.flickr.com/photos/kriz1204/sets/72157622093114160/

-View the video walk thru by clicking below

http://www.youtube.com/watch?v=XVvcFzmiEDM

Kris -660-2628 lock box code is 1814

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2. The local Section 8 housing list… Section 8 is a government sponsored housing program that pays
all or part of the rent for the tenants in the program. You can find your local office by googling “your
city+state+section 8” OR “your city+state+housing authority”. I have several section 8 residents
myself and they are great. But you are not offering housing right now, you want to target the landlords
that are offering the housing. You know if a landlord is offering housing to prospective section 8
tenants then they must own a house. They may be interested in buying a new house, maybe even your
deal. You’re going to get them the information as fast and easy as possible. The way I’ve found is the
easiest is by using www.postcalls.com. This website allows you to actually record a message and then
send it out to several hundred people at one time. It’s an internet system that lets you record a message
and then send that message out to several phone numbers at once. It’s great!!!! When I first started I
would collect the section 8 list then call each person 1 by 1. This system used to take several days and
take hours and hours of jotting down who answered and who said call back and who I left a message
for so I wouldn’t call them back etc. etc.. But since I started using postcalls.com once again I let the
SYSTEM do all the work for me. It lets me know what time a person picked up the phone and actually
got the message, when the system left a voice mail, and when the system couldn’t reach the person. It
will try several times to reach each number you put in. All while you’re off looking for the next deal.
Isn’t that sweet?? I thought this system was especially fast after doing it the old way. I wish I would’ve
had this SYSTEM before I wasted all that time on the phone, oh well…. Now you have it and I know
it’s going to work great for you….

Next I get all of the section 8 landlords from the local housing authority. Every housing authority will
have a housing list that they provide for prospective tenants. Then I write a script down of all the key
points of my wholesale property the investor wants to hear… price, address, property condition, work
that needs to be done, special features(sizzle), who I am and how they can get inside the property.
Read one of my actual postcall scripts next…

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 OUTGOING WHOLESALE DEAL FOR SALE!!!
Greeting, this is Kris Haskins, and I’ve got another investor
special house in Newport News for sale. I’m selling this
house very cheap but it is in good condition. The address
is 3701 Chestnut Ave. that’s 3701 Chestnut ave. It needs
very little work. It has Central heating & air, new carpet
& paint, kitchen and bathroom are in good condition, and
it comes with refrigerator and stove. I’m offering it for
$42,775. There is a lock box on the front door so feel
free to call right away to get the lock box code at 757-660-2628,
that’s 660-2628… If you don’t like this house, I will have
others so call me to give me your email address so you can
see the deals 1st… I am also looking buy property so
call me if you want to sell me a house, but not at
full retail price….my name is Kris Haskins 660-2628…
.thnx for your time.

I speak that exact script into the phone and postcall.com records it. I then upload all of the section 8
landlord phone numbers into the postcall database. Then I click the send button and it instantly sends
my message to hundreds of property owners. Note my message also lets the listener know that I’m
looking to buy a house. Let the world know you need to buy a house now!!! It works!!!!

Tip- sometimes I just call the section 8 landlords to look for a good deal to buy for myself or
to wholesale it.

3. College & University off campus housing lists-

In most every city there is some type of higher education for full time students. I happen to be very
lucky in my area there are several colleges and universities to pick from.
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 a) Hampton University
b) Christopher Newport University
c) Old Dominion University
d) Norfolk State University
e) College of William & Mary
f) Regent University
If you don’t have a major college in your town, go to the closest neighboring town and practice this
technique. There are 2 major problems that arise with colleges and universities when it comes to
housing. These problems will create opportunities for you to expand your buyers list. At most schools
there will be a shortage of on campus housing for freshmen as well as upper class students that want to
live in dorm rooms. Most schools require freshmen to live on campus for at least 2 years. At my
school they attempted to make us live on campus for 2 years, which I did. Schools typically attempt to
enroll more students than they can provide housing for. This is because the admissions department
knows there’s a percentage of students that will actually register but due to some type of hardship, will
not be able to attend. The other problem that colleges have is students that are in their 2nd-4th
(sometimes 5th) year in school will more than likely desire to stay off campus, as I did. Colleges &
Universities rely on local property owners to assist them in supplying housing for it’s students. These
owners will be your primary target for your buyers list. You know that they are active landlords and
they may even be looking to buy another house. Maybe even your deal that you just got under contract
and now you need to assign it.
There will be different ways to contact the owners on the lists depending on the school. Some
schools have these lists online and some just let you come in and pick it up. Some schools, like ODU,
make you pay a listing fee to place your house on the “off campus housing list.” The way you will be
finding these lists are as follows: go to google and type- (your college+off campus housing). In my
area I type “Norfolk state off campus housing”. You will either see a posting with a website of all the
off campus housing for the school OR a posting for a phone number to call to get the off campus
housing office for that particular school. I have printed out a page directly from the Norfolk State
website so you can see how it looks when you go onto their off campus housing page on the internet on
the next page… I marked out the contact info so you must go to the site if you want to get these
buyers.

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You are going to call up these owners and use the exact same script from the “Section 8 Landlord”
system. You can either call them up one by one to get their info to see if they’re interested in being

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placed on your buyers list. Or don’t forget you can use a mock deal or a deal you already have and just
plug them into the post calls database. I use the postcall method because I don’t want to be on the
phone for several hours. Make sure you are getting these lists on a constant basis to continue to update
your buyers list. A buyer (Owner) that’s had a house on the list 3-4 months ago may not be a buyer
today. If you talk to any buyer whether it’s using this method or any other method make sure you get
their email address so you can contact them via email..

Tip- The mock deal is where you just pick an address in the city or use another investor’s
deal and then market it to your prospective buyers to reel them in to get their information…

4. The “House for sale, Handyman Special, Cash, Cheap” sign. This sign will have your phone
ringing all day. I put this exact sign in areas where Lowe’s, Home Depots, Ace hardware, and mom &
pop hardware stores are in town.

Tip- I use a 12x18 inch sign that I buy from www.supercheapsigns.com. I use this size instead
of 18X24 because they last longer. The city codes workers don’t see them as well.

You can place them in the grass, on telephone poles, in the medians or vacant lots but make sure it’s in
the area of those stores. I’ve also had luck placing the signs in areas that a lot of rehabbing is going on.
Like in the war zones in your town. Drive around and place signs wherever you see a lot of those big
dumpsters in the house driveways. That usually means a rehab is going on inside. It will grab the eye
of the handymen/investors that are out shopping for building supplies throughout the day. My sign
looks like this:

House for sale

Handyman Special
Cash, Cheap
800-123-4567

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I use cursive print and a voice mail phone number. It has a mail box to record the information about
the deal. Beware of using your cell phone. You’ll be answering the phone with callers that are just
interested in looking. We call them tire kickers. You can read the exact message I use when selling
one of my deals using the sign. Let the SYSTEM do all of the work for you…. I’m a big fan of
SYSTEMS because, I need to be somewhere putting in offers and looking for financing. If I spend my
time telling the information to 10 people a day, I can easily spend over an hour of my precious time on
people that may or may not have any money. Don’t do that….The following script is the same script I
used when I wholesaled a deal in Newport News. Actually at this time I was attempting to sell two
contracts I had and I just did one message to include both houses. It worked great because some people
wanted to look at the 1st house and others wanted to see the 2nd house. You can even team up with
other investors and offer their house on your script just to get some momentum going. the script is as
follows….

800# WHOLESALE INBOUND SCRIPT…

Thnx for calling deal makers, at this time we have 2 houses
for sale 1 in Newport news and 1 in Hampton. The 1st address
is 3701 Chestnut ave. that’s 3701 Chestnut ave. in Newport news.
This 2bd/1bth is approx. 950sf there is an extra room that can be
converted into a third bdrm. We’re offering this house at $42,775
it has a city assessment at $87,000. It has central heating & air,
new carpet, fresh paint, mostly new windows and good siding,
comes with stove and refrigerator. This house is rent ready.
The 2nd house is 2508 Victoria blvd. that’s 2508 Victoria blvd.
in hampton. It’s a 2bd/1bth approx. 830sf. It has a new roof,
but it’s going to need about $25,000 worth of rehab work done to it.
We’re offering this house for $38,500. city assessment is $110,000. There is a
lockbox on the front door of each house so leave your name and number and
we’ll get back to you in a few hours with the code for you to get inside.
If you don’t like these houses, make sure you leave your information so we can keep you
informed on future properties we get. If you need immediate assistance call the
office at 123-4567. Thnx for calling…

When your callers call in, they will hear the above message. Sometimes you will have several deals
so put them all on there. Your buyer may not want the first deal but may want the second deal. Put

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as many deals as you can on the voice mail. When the person hears your message, they will either
choose to pass or play. Make sure you check the voicemail every few hours so you can get your
prospective buyers into the house as quickly as possible. I remember one time I didn’t check the
voicemail for a few days and I had 22 voicemail messages. Talk about a long time on the phone. I
guess if you get real big time, you can pay some body to listen to and input the caller’s information
for you. That would be great. Once you have the info, make sure you call the buyers back and give
them access to the house. Also put their names, numbers and emails on your investor data base.

Tip- You can even use an online database that you can check from anywhere. I use
google documents. Get an email account with Gmail then just click on the documents button and
you can store excel docs. It is an online storage and database that allows you to input and export
information. It also stores everything just like an excel file online so it’s easy to transfer and others
can access it if you want.

If you use the online database, all you have to do is input all of your buyer’s info in and you can
export it to postcalls.com whenever you get your next deal. I know this system will help you…

5 www.craigslist.com You don’t even need a house to advertise for buyers on craigslist. You
can do what we call a phantom or mock listing. It’s where you get a house and list it on craigslist
below market value and then let the buyers call in. You then tell them the house has been sold and
you collect their name and number. If they get mad, that’s ok, just politely tell them you are sorry.
Each listing should have a video and a picture slideshow of each house. You can use youtube.com
and flickr.com to get those set up. I have included a copy of my listings to show you how it looks
on craigslist…. If you don’t have a soft copy of this course, just type the entire link in your go to
bar on the internet. Fig. 42-C is a copy of my Craigslist ad…..

Fig. 42-C
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 431 Smiley Rd. hampton 23663
-is a 2/1 approx. 650sf was rehabbed in 2008 and sold for $120k. The investor has since then
been foreclosed on and you get to buy it at $70,000 cheaper than he did… It a has new roof,
siding, hvac, it needs carpet and paint and some light fixtures to be move in ready, we're asking
$53,500 for this one. Call kris for the lock box code
757-660-2628!!

and view the picture slideshow below

http://www.flickr.com/photos/kriz1204/sets/72157623202560096/

view the video by clicking on the link below

http://www.youtube.com/watch?v=GGva_-M8m5I

OR
3701 Chestnut Ave. Newport News, VA WOW!!!!!
Seller Desperate, must sell…… I have to sell my 2bd/1bth 915sf house in Newport news. It approx
913sf and can be converted into a 3bd/1bth. The rear room has a closet so it will need a wall to be
added to make it a bdrm. The house has new carpet, central heating & Air, updated electrical,
plumbing update, kitchen and bath are in great shape (no leaks), freshly painted. I’m thinking it will
need a roof in the near future. Has mostly new windows, some older but still work(see video). Comes
with kitchen stove and refrigerator.. Siding is good and has a rear shed to hold all your things. This is a
move in ready house great for rental… Solid comparables below…..
-3705 Chestnut Ave. 649sf sold in May for $34,000 in 22days…
-3707 Chestnut Ave. 760sf sold in July for $45,000 in 4 days…
-1601 Chestnut Ave. 926sf Sold in May for $65,000 N/A market time….
3701 Chestnut is assessed for $87,000…
I’m offering this house at a quick sale for $36,500, please feel free to call me for the lock box code on
the front door. View the picture slideshow by clicking below..
http://www.flickr.com/photos/kriz1204/sets/72157622093114160/
-View the video walk thru by clicking below
http://www.youtube.com/watch?v=XVvcFzmiEDM
Kris -660-2628

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6. Using realtors to list & sell houses you don’t even own

Another way to find qualified buyers is by simply putting your property on the MLS through a real estate
agent. Some people are going to once again tell you that you cannot put a property on the MLS without
being the owner. I know this is not a fact because I do it all the time but it is a truth to some people.

Tip- Remember that buying into somebody’s truth that you can’t list houses on the MLS,
means you’re buying their lifestyle!!! Be careful whom you listen to. All truths are not FACT!

I’m going to show you in Fig 56-H exactly how I put a house on the MLS without ever taking ownership.
Conventional thinking says that you need to own a house to list it with an agent. Unconventional thinking
will have your house on the MLS and receiving offers in days. It’s practically illegal how easy it is to put a
house on the MLS without being the owner. As a matter of fact, the owner doesn’t even know that you’re
doing it.

Tip- You will need to show the agent a ratified (signed) contract before they will put the
house on the MLS. Make sure you have the secret language in your contract that we discussed
earlier about being able to market the deal. Review “Locking down the deal” section.

You can have your agent take the calls or you can take the calls, it doesn’t matter. When you meet with
your agent, tell them that you have a property that you want to list with them. They’ll be excited because it
means pay day for them. If they ask are you the owner, simply tell them that you are the “contract owner”
and you have every right to sell and market this house as you see fit. This will all be in the language in your
contract as well. Proceed to write up a listing agreement just like any other and pay the agent 6% for their
standard fee. I sometimes put an agent bonus on these deals as well. You’ll see how I do that in Fig. 56-H.
This bonus will attract agents to your deal faster than other deals because they will get 3% agent fee and
whatever agent bonus you’re giving them. In Fig. 56-H, I gave out a $2,500 bonus to the agent that brought
a buyer. It’s just that simple and you’ll be waiting for your buyers to come to you. You’ll need a lock box
from the agent or just use a contractor’s lock box from Lowes or Home Depot. These lock boxes have a 4
digit code that you can put the key in, and then type the code to open the box and get the key out. It hangs
on the front door so you won’t ever have to show a house.

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 Tip- We never, ever, EVER show houses. Simply put a lock box on the door and when
buyers call, give them the code so they can let themselves in. Change the code every few weeks so
you won’t temp people to take anything.
One last note, the agent may want to put in the listing “Seller is contract owner”. That’s perfectly fine
as some agents will want to cover all bases. Let them do it if that makes them feel more comfortable. Get
your deal listed and get it sold. View Fig. 56-H to see how I listed a property on the MLS that I didn’t even
own… I LOVE IT!!! Fig. 56-H

Agent
bonus for
selling my
house
$$$

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 I had this house under contract for $10,500 and I had it listed for $22,500. There was plenty of
room for me to offer an agent bonus, pay the agents 6%, pay my seller and then get me a small
assignment fee. If you’re not too greedy in this sport then you can make some good money.
Always remember what happens to the oversized pig!!!!

SHOWING HOUSES MADE EASY

Showing the house to your prospective buyers is as easy as 123. You’ll be placing contractor
lock boxes on ALL of your houses. Unless there is a tenant, you don’t need to ever be present
when showing a house. You want to get your investor buyers in the house as fast as possible after
you sign the contract with the seller. You want to also make looking at the house as easy as
possible for your buyers. Investors want to see houses on their own time so placing a contractor
lock box on the door is the best way to go.

Tip- You can get inexpensive lock boxes at www.sanzospecialties.com

Showing houses is a huge waste of time and you just don’t do that. Let prospective investor buyers
go look at the houses you have for sale at their leisure. You don’t have to worry about people
tearing up the house. I’ve put lock boxes on pretty and ugly houses and people will come and go
without problems. They may use your bathroom and get it dirty but that’s the only problems I’ve
had. Your appliances will be safe because I feel people have good intensions and don’t want to
destroy other people’s property for no reason. In all of the deals I’ve done, I’ve only had 1 problem
with an investor that tore up a house I was wholesaling.
This particular buyer actually used a house I was wholesaling for storage. He took all of his
stuff out of his storage unit and put it in my seller’s house. The seller was out of town so he never
found out about it, but it took me over a week to get that junk out of the house. This investor
thought that since I didn’t have a buyer for the house yet, it would be ok if he let a friend store his
junk in the house for a while. He never even asked me or even told me about it. I found out the
stuff was there because one day I showed up at the house and it was full with somebody’s
belongings. The front door couldn’t even be opened; you had to enter the house through the side

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 door. I have given you a picture to prove how outrageous and unbelievable people can be. Don’t
let this happen to you.

Picture of a house I was wholesaling when an investor put all of his belongings in the house.

He even
brought his
washer &
Dryer

Make sure you check on your houses from time to time, but typically investors won’t mess up your
vacant houses.

THE EASY WAY TO SHOW HOUSES OCCUPIED WITH TENANTS

If the house has a tenant in it, then you’re going to have to approach things a little differently.
Sometimes I have to wholesale houses from tired landlords. This can be good business but I prefer
to wholesale vacant houses. It will be more of a head ache but if you do it right, the tenant will love
it when you call him and show the house. First you’re going to get to know the tenant by building
rapport. Ask him to tell you about repair problems so you can make sure you address them when
you buy the house. Make him feel assured that you have his best interest in mind by asking him
about the plumbing and electrical. Let him know that you’re not sure about what your intensions
are with the house and he may even be able to stay once you buy it. If he likes living there then tell
him there’s a high possibility that he can stay as long as he’s a good paying tenant. Don’t tell him
that he must move because he may tear the house up.
Next let him know that you may have to bring people by from time to time just to do some
inspections and if it’s ok with him, you’ d like to give him $10 per visit for his time. This should
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make him very cooperative. From this point on, you shouldn’t have to worry about being able to
show the house to your prospective buyers. However, I’d recommend you be present at the
showings. Try to have multiple buyers walk through the house at one time so you can save time
and money. If you have a tenant with an attitude you may have to pay as much as $20 per showing.
Remember to get as many investors to come at one showing. Tell the tenant you have several
different contractors that need to see the house to make sure you get the best prices on repairs. You
should be able to get your true buyer into the house and get it sold with no more than 5-7 showings.
It can be sold faster if you try to get 2-4 investors into the house at one time. It will make things a
lot easier also.
Another item you’ll need when wholesaling houses with tenants is the residential lease. It
should be one of the 1st docs you get from the seller when you sit down to discuss buying the house.
The seller can tell you all types of stories about when the tenant moved in and how much security
deposit was given. But the only way to know 100% is by having the lease. Ask the seller to have
the current lease along with the number of times a notice was sent to the tenant. You also need to
know if there was any type of complaints on file against the tenant. This information will be vital
when handing the deal over to your prospective buyers. All buyers need to know exactly what
they’re walking into once they buy the house. Are they dealing with a passive tenant or a
belligerent tenant? Will the tenant tear up the house once the new owner asks them to leave? These
are questions that all investors will want to know before they buy the house. Always collect these
docs upfront so your wholesale deal will go smoothly, you’ll be glad you did…

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 GET YOUR ASSIGNMENT FEE & PICK UP A CHECK!!!
The “contract assignment addendum” is the document you will use to get your assignment fee. See
it in Fig. 41-L & 41-M on page 94, you’ll need it to get either your $2737 or the $8487 check. This is
the document that links your seller to your buyer. Real estate is a business based on contracts, without
them you don’t have a deal. There have been many times in my career that I wish I would have got an
agreement in writing. Even to this day I still put every agreement I’m doing in writing, including my
assignment fee agreements. Without this document you will not be able to show the title company that
you have an agreement to sell your deal. Fig. 42-A shows how the deal should flow:

QUICK REFERENCE WHOLESALING FLOWCHART

Fig.42-A

-Seller agrees to sell his house to YOU

-YOU obtain a contract to buy the house from
Seller using the “standard purchase & sell
agreement”
-Seller signs the memorandum so he can’t back
out of the deal

YOU
Turn around &
Sell your “rights
to buy” the house
to a new BUYER

INVESTOR BUYER pays

You Link your YOU a fee for your rights to
SELLER with your buy the house called the
BUYER using the “assignment fee”
“Contract Assignment $$$$$$$$
Addendum” -And Investor BUYER pays
the SELLER for the house

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 Tip- All documents can be downloaded at www.therealestateroundup.com

Tip- You will need a proficient title company to close your deals. If you live in the Tidewater
area, I recommend American Escrow & Title Company. Call George Tillerson at 757-873-5771. He
closes all of my real estate deals at a reasonable price!!

From the preceding example, you’ll see the contract assignment addendum is the last piece of
documentation you need to get your assignment fee. It’s extremely important to use a document that
has a specific deadline, a non-refundable credit from your new buyer, and several other key elements to
insure your success.

Tip-You can get all documents with my monthly coaching club.

I’ve been able to control millions of dollars worth of real estate & assign over 80 deals with this assignment
addendum and I’ve only had a few go bad. When you have the magic words in your documents, it’s 99%
guaranteed that you’re investor buyer will close. Also, if you do it right and your buyer doesn’t close then
you’ll probably make more money on the deal when you resell the deal to another buyer. Either way you’re in
the driver’s seat which is where we want to be at all times.
I remember wholesaling a contract 1 time and my buyer gave me the $1000 non-refundable credit towards
the deal. This deal had an assignment fee of $5k with a $1k non-refundable credit towards the $5k leaving a
balance owed of $4k. We agreed to a 2 week closing which was plenty of time for him to get his money
together and I wanted to get paid as soon as possible. Well, his 2 week deadline came and he couldn’t close the
deal so he had to forfeit his $1k. He didn’t want to but we both agreed that he had run out of time. I then called
a few other buyers and was able to sell the same contract to another buyer. So I actually made $6k for that deal
instead of $5k. Another situation came up where I was assigning a contract to a buyer and I used my “air tight”
assignment addendum. Well, I’d sold this buyer several deals in the past and his money was always good.
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He’d bought 3 or 4 deals from me totaling well over $35k so I thought he’d be good for another deal. This
particular deal had a $22k assignment fee involved. So I typed up the assignment addendum but this time he
requested that I fax it over to him. Usually, I like to meet people face to face so I can feel them out but we had
history so I didn’t think twice about it. I faxed the assignment addendum to him and he faxed it back but he had
crossed out my deadline date and wrote in “or as soon as proper documentation can be provided”. Being a
trusting person I didn’t think too much about the change so I initialed it and turned it in to the title company. I
figured he was a fellow investor and wouldn’t try to jerk me around. Plus, he knew I always had good deals so
I thought he would never try to screw me over. So I gave him a 3 week closing time frame and I let him mark
thru my clause where the contract expires after a certain date and in turn put in “contract shall close on said date
OR as soon as proper documentation can be provided”. This one clause would soon be a huge problem in
getting my assignment fee. As time went on the closing date came closer and closer and then this investor
buyer started to avoid my phone calls and not return my voice messages (ALWAYS A BAD SIGN). I didn’t
understand why but later I learned that he was assigning the contract to another buyer himself. So he didn’t
actually have control of the closing date, it would be up to his end buyer. This contract was getting assigned 2
times to 2 different buyers. It went like this; I was the original buyer and I’m assigning my rights to Buyer A,
then Buyer A was assigning his rights to Buyer B. I don’t even know who Buyer B is so I can’t contact him to
see when he wants to close. The closing date passed and my buyer still wasn’t calling me back. I then realized
that I couldn’t sell the deal to another buyer because he had marked through my contract expiration date and put
that new language in. I was completely caught off guard and now my Seller was getting irate and threatening to
sell the deal to another buyer. How could this have happened? I learned not to change or alter my documents
for anybody. You can’t feed your family if you don’t know when deals are going to close. Make sure every
contract you create has a specific performance date and a deadline in it so you know when your check will be
coming or you can sell it to another buyer. In the end, I had to drive to North Carolina to smooth my seller over
and get an extension so I could get this deal done. I don’t want you to have to go through this so please don’t
change the language on my assignment addendum, you’ll be glad you didn’t. You can view my Standard
Contract Assignment Addendum in Fig 7-R….

Tip- Don’t try to haggle your investor buyers by raising the price over what the numbers will
allow. You can get a bad reputation and buyers won’t want to even look at your deals in the future. I
typically don’t negotiate on price because I know my deals have tremendous value. I don’t over inflate
prices to then come down for a sale. But I will allow for a little wiggle room in my numbers.

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 STANDARD CONTRACT ASSIGNMENT ADDENDUM
Fig 7-R

This is an addendum made on the ___________________________for the real estate sale of

6416 Palem rd. Norfolk, VA 23513 Legal description 25 BLK B Sewells Garden by and between Kris

Haskins dba Tidewater Enterprises & Construction LLC(TEC), the assignor, and Bobby Smith, the

assignee. Kris Haskins agrees to assign his rights to purchase the attached Contract to Assignor, for a fee of

$4,500 payable as follows: Assignee agrees to pay a $1000 non-refundable credit that will count towards this

addendum, $1,000 due at signing leaving a balance of $3,500 payable on or before 5pm October 9th, 20??.

Assignee shall close original contract on or before____________________________________. The original

earnest money deposit shall be refunded to Assignor at closing. If Assignee doesn’t close original purchase

contract or pay remaining balance by 5pm October 9th 20??this addendum and the option for Assignee to

purchase shall be expired and all deposits shall be forfeited. Assignee shall abide by all of the terms agreed to

under the language of the attached Contract. $1,000 Credit is refundable only if title is not clear and

conveyable. If all names that appear in this addendum do not sign it on or before

________________________________________this addendum becomes void...Signed below…

Kris Haskins (assignor) ______________________________________________Date:__________

Tidewater Enterprises & Construction LLC rep

Bobby Smith (assignee) _________________________________Date:___________

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 UNDERSTANDING THE REI TOOL BOX &
BUYING HOUSES WITHOUT BANKS

The following section of this course is to familiarize you with several advanced real estate investing
strategies. I’m doing this because out of all the books and courses I’ve read, they all seem to focus on one
strategy and don’t cover other tools. This course gives you a real estate wholesaling system, but still gives you
information on other tools as well. The following section is designed to give you a basic understanding of the
tools investors use to buy houses other than going to a bank and begging for a loan. This should be enough
information to allow you to speak intelligently with me and other investors at social gatherings and while
networking. When I was at Hampton University, they dedicated a full semester towards giving us a basic
understanding of the history of our school. The course, University 101, covered school art work, landmarks,
our founder (General Chapman Armstrong), different historical events, illustrious alumni and timelines. It was
mandatory that we all learned this in order to move to the next class. This information was all new to me since I
came from another part of Virginia. At the time I didn’t understand why we spent so much time on these facts.
I thought the information was just meaningless facts that the school forced us to learn. It wouldn’t help me
make money or start a business or even get a job, I thought. But as I got older, I realized how important is to be
able to speak intelligently about your history and the activities to which you are involved. There may be a time
where you are surrounded by people that are well versed in your field. You may even be at a social event or
diner and you’ll feel out of place or be looked upon as if you’re not professional. I promise you, if you’re
putting yourself in professional environments and attempting to do business a time will come where you’ll need
to network with others and speak intelligently about this business. Donald Trump always says not to let the
world see your weaknesses even if you have some. Don’t let people know you are a newbie and don’t know
anything about investing, even if you’ve never done a deal. People will take this “perceived weakness” and
make personal judgment about your ability to perform. I have seen this with several of my investor colleagues
and don’t want this to be you. Lack of knowledge is a real weakness in the real estate world. Be as
knowledgeable as you can on all of the endeavors of your life so you’ll be able to function in any atmosphere.
Even if you’ve never done a deal, you are still a real estate investor in your mind. You’re just an investor that’s
never bought a deal. You can still have an investor’s posture as if you’ve done 10 deals; no one will ever know.
Those whom know the business and the tools will make more money and do more deals than those that don’t
educate themselves. I have seen my coaching clients do more deals than other investors that have been in the

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business for years. It’s all attributed to staying on top of your profession and making education a lifelong
venture.
All of the following tools REQUIRE additional training so please do not attempt to try these transactions
without proper training. I’ve seen several investors get themselves, as well as other home owners, in serious
trouble by using these tools improperly. Now that you completely understand how to wholesale real estate, the
next step is to actually buy and hold some property. You can get rich wholesaling houses but it is impossible to
become wealthy with that 1 tool. If you only do wholesaling, it’s like a contractor approaching every
construction job with just a hammer. Imagine your contractor showing up to renovate a house with only a
hammer?? If you only use one tool to solve every problem then you won’t be able to grow. Your perspective
will be slurred as well because every deal you look at will look like a nail. If all you have is a hammer, you’re
limited to using nails. Years ago I would look at every deal and try to figure out a way to wholesale it: BIG
MISTAKE…. Just imagine trying to use a hammer to fix a plumbing issue. Neither can a hammer change out
the electrical panel on a house. Some deals in real estate require the use of tools other than wholesaling just as
in contracting different jobs require different tools. You can’t wholesale every deal you get. To be able to
maintain your real estate business you’ll need to master some of the other tools of the sport. However, the tools
you’re going to be using are not made out of metal or plastic, they are just plain black ink on white paper….
COOL……

Tip- One of the keys to being successful as a real estate investor is carefully selecting the tools you
use. When a mechanic shows up for work he brings his tools: wrenches, car jacks, screw drivers, compressors,
nuts and bolts etc…. The full time RE investor is showing up to work with his tools also: “sub to”, lease
options, owner financing, wholesaling etc. etc…

Enjoy the information below as you will not hear this from realtors, real estate brokers or any lenders. These
people will not tell you about the creative tools investors use to buy houses. It’s a conspiracy amongst them
that they want you to go out and get a realtor and get a bank loan to buy a house so you can keep them in
business. Some of them will even say it’s illegal to do some of the tools in the next section. I’ve had several
agents tell me to watch what I’m doing and to make sure I don’t get caught doing these types of deals. Some
agents even tell me these deals can’t be done. When I’m approached with this type of attitude I simply say to
myself: “that’s why you’re <the agent> buying & selling houses for others and making them rich and I’m
buying & selling houses and making myself rich.” The bottom line is if you believe you can do this business,
then you can. Most people that have this mindset are people that don’t actually believe. Before I did it, I never
thought somebody would sell me their house and let me take over their mortgage payments and leave the loan
in their name. This happens every day and the pros are the ones that are doing it. The tools in the next section

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opened my eyes to a new world of acquisition and finance. Once you have mastered these tools coming up,
you’ll be able to buy any house you want regardless of your credit, tax returns, income and down payment!!!!!

Tip- The following tools will assist you in the acquisition(buying) of houses regardless of your
job, your credit, down payment, tax returns and your income. They will not, however, show you how to
make the payments or stay in the house….

Tip- I have used, and still use, all of these tools to buy houses. If you want to learn more, feel
free to join my monthly coaching club at www.therealestateroundup.com

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 BUYING HOUSES “SUBJECT TO” the new no money down

If you’re in this business for a while, there will come a time when the banks are going deny you from getting
any more loans. Most banks now days only allow you to have 4-10 home loans on your credit report. After
that, no bank will let you borrow any more conventional money. If you want to stay in business you must have
other ways of acquiring real estate. Buying houses “subject to” will allow you to continue to operate your
business. You will most likely hear this term being discussed around all seasoned investors. I remember when
I first heard about this tool. I told myself I’d just learn that tool later. Depending on how far along you are in
your RE career will determine whether you’ll be using this tool. If you’re just starting out and haven’t done a
wholesale deal, chances are you will NOT be using this strategy yet. However, if you can recognize what a sub
to deal looks like then you may be able to sell the deal to another more seasoned investor & get paid big. If
you’ve done several wholesale deals and been in the business for a while, then you should be attempting to
implement the sub to tool. The truth is that buying a house “subject to” is an advanced strategy and you need to
work with somebody that has done them before you do your 1st sub to deal. Before you get into a sub to deal
you must have an understanding that financing and houses have nothing to do with each other. You can have a
beautiful house with bad financing or an ugly house with great financing. Any size house can be bought with
the correct financing. As a matter of fact I’d rather have favorable financing as opposed to a great house. I will
buy a $3 million house if I can get financing for nothing down and $100 a month. It’s not the houses fault that
you went out and got a bad loan against it. The house is still the same whether it has a loan on it or it’s paid off.
I want to briefly cover this tool so you understand the concept. A “subject to” or “sub to” transaction means
buying a house “subject to” the existing mortgage or financing. The current owner has already qualified for the
loan and placed a mortgage on his house. You will be taking title and continuing to make his monthly
payments on his loan to his bank. Yes you can actually buy a house in America with out paying off the
seller’s loan. Go ahead and read that last sentence a few times so we can get you mentally past that reality
because it took me a very long time to understand this concept too.

A “Subject to” transaction defined by Barron’s real estate guide is acquiring real property with
an existing mortgage but not becoming personally liable for the debt. A Circumstance in which a
buyer takes title to a mortgaged piece of property but is not personally liable for the payment of the
amount due. The buyer must make payments in order to keep the property; however, with default,
the buyer’s equity in that property is lost.

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 I remember my 1st sub to deal. I was extremely scared about asking the owner to let me do this. I was thinking,
it’s no way a home owner will sell me his house and keep the loan on the house. The sweat beads were running
down my forehead as I asked him the magic questions. You see, you must keep in mind the people selling their
homes to you are not really looking for a top dollar sale. They just want their problem solved in a fast manner.
They’re usually not even in their right mind when you’re talking to them. These types of sellers want to save
their credit and be able to relocate into a decent apartment or rental. Some bad circumstance has rendered them
unable to pay their mortgage and it’s time for them to leave their home. So when you’re their only option it’s
very smooth to walk them through the simple subject to process. I have listed below some of the reasons a
seller may be willing to do a subject to sale of their home with you:
i. Not enough equity to sell their house using a realtor to pay the 6% commission
ii. Not enough time to do a FSBO and have people walk through the house looking to buy.
iii. They have another mortgage payment coming up next month and they don’t want to pay it
iv. Already bought another house and can’t sell the old house
v. Home in very bad condition
vi. Just want to save their credit and move on with their lives
vii. Been paying mortgage and simply can’t afford current mortgage payment any longer

Tip- Using the magic words and questions will walk the seller right into doing a subject to
with you.

Tip- Get the training and the magic questions when you sign up for my monthly coaching club
at www.therealestateroundup.com

Example: I’m going to be buying Joe smith’s house. Joe has a $50k loan on his house with monthly
payments of $236 with Bank of America. The house has an ARV of $150k and needs about $30k on the rehab.
I talk to Joe and ask him the magic questions to determine whether he will be a candidate for a sub to deal. He
says ok and I get all the docs ready. Joe meets me at the title company just like we’re doing a normal closing.
The loan stays in place and I continue making the monthly payments as if the loan were mine. Joe signs all the
magic documents needed to make this a sub to deal with me. There are about 6 documents that need to be
signed at closing to ensure you have a smooth transaction. You get all the docs signed and the house is yours.
Hopefully you have a cooperative seller that will either clean the house out or make sure he has moved out by
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closing. Sometimes I’ll hold the deal in escrow until the seller has completely moved out. The last thing you
want is a sub to seller living in the house after you have brought his loan current. I have created a flow chart
Fig 43-D to assist you in understanding how a subject to transaction works. Don’t be upset if you don’t grasp
this concept at first. Don’t panic if you don’t quite understand this tool yet. It will take you 6 or 7 times to
review the process before it sinks in. If you ask anybody that’s done a sub to deal, they will probably tell you
that on the 1st deal, they didn’t think the homeowner would ever really do it. And that’s the same with me.
When I did my 1st one I was thinking “there is no way this home owner is going to sell me their house and keep
the loan in their name, NO WAY”. But I went into the house with confidence and told them what I could do for
them and eventually I did one. The best thing is, I didn’t even have to put a gun to the sellers head….. That
time…..

Sell me your house, OR ELSE……

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 Fig.43-D

THE “SUBJECT TO” FLOW CHART

Joe agrees to sell YOU

his house but still has a
$50,000 mortgage with
Wachovia

$236 monthly payment to

Wachovia

You pay Joe $4,000 cash and buy

$50,000 the house subject to the existing
Mortgage with Wachovia financing. Joe keeps the $50,000
$236 a month loan in place. Joe signs all
special “subject to” documents

$236 monthly payment to

Wachovia

You now own the house and

continue to pay the monthly
payments to Wachovia , Joe
moves on and spends his $4,000

You fix up the house then sell

for profit $$ and pay off $50k
loan at the sale of the house.
-The difference is your profit

This example is very simple and it will show you the flow chart of how a subject to transaction works. You can
then turn around and sell the house along with that $50,000 mortgage if you have a cash buyer. But usually, if
you fix the house up, you’ll be selling the house to an end buyer whom will pay off the $50,000 and satisfy the
loan then get a new 1st mortgage loan for $150k and pay you off too. There are 3 basic instances where the sub
to tool can be used:

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 A. Bring the home owner’s loan current and take over the payments. You may have to give the home
owner a small amount of cash if you’re getting a big chunk of equity with the deal. Just pay it and be
thankful for the deal. This cash is typically used to either make the home owner feel like they didn’t’ get
conned or to give the homeowner a little bit of money to move. Remember the pig rule…..
B. Home owner’s loan is current but he wants to get out of the house and the payments & move on with
his life. You may have to give him a small amount of cash on this one also. But only if there is a big
chunk of equity. You want to try to get in to the house with no out of pocket money. But when there’s big
equity, you will need to pay to play.
C. Finally my favorite… Home owner pays you a month or 2 of his loan payments and then deeds you
the house. You get the house and you get cash. In this case, the home owner is walking away from the
house so you ask him if he can pay anything to help get this deal done. Perhaps he’s been saving his
money from not making the payments anyway so make sure you ask. “How much can you afford to get
this deal done”? then BE QUIET… I love that question….
You will not be able to borrow money from a conventional lender to buy houses sub to without first paying off
the existing loan. This is why subject to is an advanced strategy because most new investors will not have the
cash to pay the seller at closing. But if you do have some cash and are faced with a possible sub to deal, please
make sure you have advanced training to get the deal done.

Tip- Always remember.. medium sized pigs keep getting fed while fat pigs get sent to the
slaughter house!!!

Tip- When you do sub to deal, NEVER EVER pay any money to the home owner until they
have completely moved out of the house. Even get them to clean it up if you can. I know I do…
I have several colleagues that have left people in houses and given them some money at closing and it
took them several months to get the owner out. It took one guy over a year to get an owner out….
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 So you can understand exactly how a sub to deal works and the moving parts, I’ve included a sample hud-1
settlement statement for you to see. The HUD, Housing Urban Development settlement statement is how RE
investors get paid. It is the document that breaks down all of the numbers at closing. If you’ve never closed a
deal, fig. 43-E is what it looks like. You want to see as many of these as you possibly can in a year. That means
you’re getting paid. I’ve blocked out the names of the sellers on this deal but you can see everything else.
Notice there are line numbers for every line. This is so the title company or attorney can itemize all of the
charges in the deal like taxes, recording fees, attorney fees, lender points, agent fees, assignment fee etc. etc..
This is done so there are no surprises when we get to the closing table. Both seller and buyer will need to agree
on this document before the closing can take place. Also notice line 201 where I have only given the seller
$100 earnest money deposit. I usually just do $100 so it seems legitimate. Always remember the “air of
legitimacy” which says “if it seems real, looks real, somewhat sounds real then it must be REAL…” Just like
we discussed in the earlier chapters with the way sellers are programmed from the news, you need to program
them with your professionalism. Some investors say it’s ok to just use a $10 EMD(Earnest Money Deposit). I
feel like that is a bit low and can sometimes get you in trouble. What if the seller takes the contract to an
attorney? What would he say about a $10 emd? Chances are he’ll say whom ever put down an emd that low is
highly likely not to close. I say be safe and just use $100. If you do it right, you won’t be putting up any of the
money anyway.

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Copy of HUD-1 Settlement Statement of a Closing using “subject to” tool


 Fig. 43-E
 Copy of HUD-1 Settlement Statement of a Closing using “subject
to” tool
Mortgage
Taken
“Subject to”
Line 503

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 In this particular deal, fig. 43-E, the sellers received nothing at closing. It just so happened that they were
losing the house and just wanted to save their credit. At the bottom of the right hand side column is typically
how much the seller is getting at closing. But you’ll notice on this deal its $0. Between you and I, this is not
the whole truth. I actually gave them some money after the closing. After we closed the deal, I told them I’d
give them a relocation fee. However they must make sure that the entire house is empty and broom swept
clean. At the closing table I showed them the check and I gave it to my attorney to hold. We agreed that I
could drive to the house and see the house empty and after that, my attorney would be authorized to release the
check to them. If it wasn’t clean, my attorney would keep the check until it was cleaned out or until I told him
to release it. Now, who’s in the driver’s seat on this deal at all times? ME…. I drove by the house before
closing and peeped in the windows and saw that they had moved. I just wanted to make sure it was cleaned out
completely.

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 BUYING HOUSES USING OWNER FINANCING
also called SELLER CARRY BACK
After you have been in the business for a while and obtained several loans from banks there will come a
time when the banks will say “sorry we can’t give you any more loans”. I remember when I used to think that
getting a bank loan and using a realtor to buy a house was the only way to buy a house. Boy I was very
uneducated in this business back then. You see the real estate industry wants the entire population to think that
way so the realtors can keep getting paid and the banks can keep charging fees and interest. It is a huge
conspiracy that has been around for years and we will dispel it now. Think about all of the realtor commercials
you see on TV and the lendingtree.com & ditech.com commercials. They all want you to come and get a loan
and pay them just to buy a little old house. I have experienced denial from the bank several times and now I
don’t even apply for loans any more because I know I have too much conventional debt. A way to get around
this problem and continue to acquire real estate is by involving your sellers in the financing. This is a great way
to buy a house and one of my favorite. I want to add that going to the bank and getting a loan is my least
favorite way to buy a house. Let me repeat that. Getting a bank loan is my least favorite way to buy a
house. When you go to the bank they want credit report, bank statements, tax returns, down payment, etc. etc.
When I was getting started I had to use banks and I always heard about seller financing but I didn’t know what
it was. Seller financing is when you buy a house and the seller acts as the bank and carries back the financing
for you. So if you buy a house for $100k then the seller will create a note and mortgage (just like the bank) and
you will make all monthly payments to the seller. This mortgage will have terms such as monthly-weekly-
quarterly- or no payments, interest rate, and time frame to be paid in full or balloon. In order for this to work
the seller must either have equity in the house to create the note or be willing to continue to make his payments
to the bank on his current loan. The house doesn’t necessarily have to be paid off for the seller to offer owner
financing, but it does make the deal go a lot smoother. Once again I have three diagrams that will show you 3
different ways an owner financing deal can take place. These are not the only ways to do an owner finance
deal. You can actually mix and match all 3 deals many different ways to make several types of scenarios. I
wish I had some body to explain this to me years ago so I wouldn’t have taken so long to figure it all out. The
first deal will show you how to use owner financing when the seller owns the house free & clear. The 2nd deal
will show you how to use owner financing when the owner still has a loan on the house but doesn’t have any
equity. The 2nd way is a bit like doing a subject to but as you’ll see there are a few different characteristics that
clearly make it owner financing. The 3rd way is when the seller has some equity in the house when he sells it to
you but doesn’t take any of the cash up front when you buy it. He takes his portion of the equity over time.

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 All deals are calculated in simple interest

OWNER FINANCING DEAL FLOW CHART 1

Deal #1 is 100% owner financing
Joe agrees to sell you his house
for $100k. Joe owns the house
free & clear

This side 1st This side 2nd

Joe creates a note that says you

owe him $100,000 at 7%
interest @ $583 a month
$100,000X.07=$7,000/year
$7,000/12months=$583/month

$100,000 Mortgage $583 monthly You own the house and have
with Bank of Joe payment goes $100,000 mortgage to Joe
in Joe’s pocket

You get to keep house as

long as you make monthly
payments to Joe

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 OWNER FINANCING DEAL FLOW CHART 2
Deal #2 is 100% owner financing also
Joe agrees to sell you his
house for $100k. Joe still
owes $80k on the house
This side 1st This side 2nd

Joe still has an $80,000

mortgage with Bank of
America on the house at
$500 a month.

Joe creates a 2nd mortgage note that says

you owe him $20,000 at 7% interest @
$116 a month
$20,000X.07=$1,400/year
$1,400/12months=$116/month

You pay $500 You own the house and now

$80,000 Mortgage with
Bank of America (still
in Joe’s name) &
$20,000 mortgage with
the bank of Joe
monthly payment to have financed $100,000.
Bank of America & You owe $80,000 to Bank of
$116 to Bank of Joe’s America & $20,000 to Bank
pocket of Joe. You have no out of
pocket money

You get to keep the house as

long as you make monthly
payments to Bank of
America & Joe

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 OWNER FINANCING DEAL FLOW CHART 3
Deal #3 is 20% owner financing
Joe agrees to sell you his house
for $100k. He owns the house
free & clear

This side 1st This side is 2nd

Joe agrees to take $80,000

in cash & $20,000 as a
mortgage note.

Joe creates a note that says you

owe him $20,000 at 7% interest
@ $116 a month
$20,000X.07=$1,400/year
$1,400/12months=$116/month

You get a new 1st loan from

Wells Fargo for $80,000 at 7%
@ $466 per month and Joe
carries back a 2nd mortgage for
$20,000

You have 2 notes You own the house and now

You pay $500 have financed $100,000.
-$80,000 Mortgage note
monthly payment to You owe $80,000 to Wells
with Wells Fargo &
Wells Fargo & $116 Fargo & $20,000 to Bank of
-$20,000 mortgage note with
to Bank of Joe’s Joe. You have no out of
the bank of Joe
pocket pocket money

You get to keep house as

long as you make monthly
payments to Wells Fargo &
Joe

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I hope the above diagrams can assist you in understanding how owner financing works. I have simplified it to
make it easy to understand. These types of deals require several documents and obligations so please contact
me or a professional if you don’t have these documents.

INSIDE INFORMATION ON LEASE OPTIONS-

The lease option is an advanced strategy that is becoming more common in today’s real estate market. Less
and less people are being able to qualify for loans and it’s harder to sell a house that is not in A+ shape. It is
sometimes called a “rent to own” to relate to today’s buyer. This is my favorite way to sell a house. Besides
selling for all cash the lease option is the ONLY way I sell. Investors prefer the lease option because the
tenant/buyer, not you, is responsible for most of the repairs. And if they don’t make the necessary repairs
they’ll just have to forfeit their option fee. I have some rentals and I have some rent to owns (lease options) and
the rent to owns are always my favorite. People are glad you have given them the opportunity to become a
home owner and they will take care of the house better than your average tenant will. The lease option is
actually 2 different strategies rolled into one execution. When you hear the words “Lease Option” you may
think this is 1 transaction. But in reality it is 2 distinctly different transactions. It’s almost like saying “renting
buying”. In the sport of acquisition and finance a lease option sounds like one move but in reality it is 2
separate moves. 1st you will negotiate the lease with the tenant/buyer.….. And then you will negotiate the
Option to buy the house with the tenant/buyer.
The lease allows the tenant the right to have “quiet enjoyment” of the property. Quiet enjoyment is where
they have unobstructed access to live in the house and enter/leave any time they please. This right can only be
granted to a single specified individual or individuals. The owner can’t legally provide quiet enjoyment for a
family, then go and sign another lease to provide the same quiet enjoyment to another tenant. The tenant has a
legal right to live in the property with said lease. Even if the owner gets foreclosed on, the foreclosing bank has
to go through the court process to evict the tenant to take away this quiet enjoyment rights. This is a powerful
right. I remember buying a house and I inherited the tenant that came with the house. The seller didn’t want
the headache of evicting the bad tenant so I just took the house and the tenant. Frankly, the seller didn’t even
want the tenant to know she was selling the house in fear the tenant would tear up the house. You don’t want a
tenant pouring cement down your toilet before you sell it trying to get some get back. I talked to the tenant and
told them I was buying the house and they agreed that after I bought it, they would move out peacefully. Well,
after I closed on it I knocked on the door and asked the tenant when they would be leaving. She screamed
through the door that she would be leaving soon. Till this day I have still never seen that tenant again. She
stayed in that house until the sheriff came to kick her out. I had to file an unlawful detainer, go to eviction court

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and then have the sheriff show up to open the door. By the time this process was done it was 2 months later. I
had to suck up an extra 2 mortgage payments before we could get the renovation started.
Next you’ll have your Option contract. The Option allows the tenant/buyer the right to buy the house
within a negotiated time frame. This term may be anything from 1 to 3 years, it may be after the owner dies, it
may be 20 years, it may be after a child goes off to school or comes home from the military it can be anything
under the sun. The option says: tenant buyer has the right to buy this house up until X day/year and the seller
can’t sell to anybody else until that X day/year has passed. Options may be worded anything like these below:
-Buyer has the option to buy from today until 3 years from today
-Buyer has the option to buy from May 1st, 2013 to May 1st 2014 only
-Buyer has the option to buy from now until 6 months from today
-Buyer has the option to buy the house after owner dies
-Buyer has the option to buy any time in 2012 at $150,000 and anytime in 2013 at $160,000 only

Tip- Get creative when using options. If you listen to your seller, money may not be their
main motivation. They may be looking for a peace of mind. Perhaps when a child goes to college or a
loved one gets back from the military..

There are many different ways to set up and negotiate an option to buy a house. These are only a few ways that
options can be worded and by no means are these the only ways. My typical option agreement lasts for about 2
years. I give the tenant buyer 2 solid years to clean up their credit and then I work with them to get into
conventional financing through a bank/lender.
Along with the option comes the “Option fee’ or “Option consideration”. This is something of value that
will show the intent to make the option a valid legal document. I’ve heard some people call this an option
deposit. I would not advise using this language. The word “deposit” has a connotation that something is being
held and will be refunded in a certain time period. It’s like a security deposit- this is money that is refunded
when a tenant moves out. Or a car rental deposit-this is money that is refunded when you bring the car back.
Sometimes a furniture deposit is money refunded when you bring the furniture back to the rental store in good
condition. Don’t get caught up using that language. We call this money the option fee or consideration. Oh
yeah, and this option fee is NON-refundable. So when your tenant buyer gives you this money, they know
walking in that if they don’t end up buying the house they will not receive that money back. There have been
several people just walk away from $3k or more from not exercising their option to buy. It’s amazing to me
how people can just give money to me like that. One time I had a lady drive all the way from California for one

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of my houses. She had already mailed me an option fee of $4k. She showed up in a Uhaul and loaded all of her
stuff into the house. She was very appreciative for the opportunity to live in the house. A few weeks went by
and she didn’t even pay her 1st month’s rent. It was so strange after I began the eviction process, she just
packed up one night and I never saw her again. She didn’t even ask me for the $4k she had mailed to me. I
could only guess that somebody had given her the funds and she wasn’t really loosing anything. I’ve collected
option fees from $3,000 to $25,000. This fee goes towards the price of the option, if they end up buying the
house. So if you’re selling a house on a $100,000 option and the person give you a $5,000 option fee then you
will credit the $5,000 towards the price and they now owe you $95,000. Some people give a small credit
towards the principal every month as well. I usually give $100 towards the principal only if the rent is paid on
the 1st of the month. If it’s paid after the 1st, then there is a late charge of 10% and the tenant gets no credit for
that month.
I’ve had most of my lease option tenant/buyers not end up qualifying for a loan at the end of the 2 year
option period. When this happens the tenant usually wants to stay but it’s best to renegotiate the terms or get an
option extension fee. In one case I had a tenant/buyer give me an option consideration out of his 401k. He
actually had Schwab, or whoever his 401k custodian was, mail me a check for his option fee. He stayed in the
house 2 years and then just moved out suddenly. I wasn’t able to clean his credit up any way so it really didn’t
matter if he stayed. But I try to get at least 3% of the price of the home for an option fee. This way the buyer
won’t want to walk away and forfeit a large sum of money. The more of an option fee you take, the better
position you will be to negotiate terms with any tenant/buyer.
I have done a flowchart diagram below in hopes that I can explain how a lease option works. I’ll show how
you can do a lease option with a house that has a mortgage or a house with no mortgage. You can buy using a
lease option OR sell using a lease option. I have a friend who likes to buy and sell the same piece of property
on a lease option. This is called a sandwich lease option.

Tip-The sandwich lease option strategy is very risky and I advise all investors that are doing
it to get professional training. You don’t want to get in a position where your seller can’t pass clean
title to your end buyer!!!!

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SELLING YOUR HOUSE ON A LEASE OPTION STILL HAVING A MORTGAGE OWED

YOU
own a house with a
$100,000 mortgage and $825
monthly payments

YOU do your magical marketing and

find a person that wants to lease your
house with an option to buy. This is
your TENANT BUYER

TENANT BUYER agrees to pay

YOU $1000 a month on the lease
and pay $125,000 for the house with
a 2 year Option to buy.

YOU have TENANT BUYER sign

a lease and sign a 2 year option
agreement to buy the house.
TENANT BUYER gives YOU a
$4k Option Consideration fee

TENANT BUYER moves in and in 2

years gets his own loan to buy the house.

TENANT BUYER also pays off your

$100,000 1st mortgage and YOU get the
$21,000 difference

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USING A LEASE OPTION TO BUY AND SELL A HOUSE (SANDWICH LEASE)

YOU find a SELLER that YOU sign a lease option with

wants to sell his house. the SELLER where you pay
The house has a $90,000 $925/month rent and agree to
mortgage with $800 pay $115,000 for the house with
monthly payments a 3 year option to buy.

YOU sign a 3 year option

to buy the house and give
the SELLER a $2k Option
consideration fee

YOU do your magical marketing

and find a TENANT BUYER that
wants to move into the house and
YOU do another lease option with
a new TENANT BUYER

TENANT BUYER pays YOU

$1050 a month on a lease and agrees
to pay $130,000 for the house with a
2 year option to buy it.

TENANT BUYER signs a 2

In 2 years the TENANT BUYER year Option to buy the house
gets his own loan for $130k to and gives you a $4k Option
buy the house, he pays off the consideration fee
SELLER’s $90,000 1st mortgage
and pays the SELLER $23k.
YOU get the $11,000 difference

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Notice in the last box the option considerations have already been paid so YOU only get $11k. You
already received a $4k option fee that counts toward the purchase price. You can buy, sell, or buy &
sell a house using lease options. I urge you to get advance training if you are using this strategy. I
have seen many investors get into serious legal problems by not having air tight documents or filling
out documents incorrectly.

Tip- I hope you are not using office max or office depot documents to buy and sell houses
& build your real estate empire!!!

Lease options can be a great way to buy and/or sell real estate. The pros far out way the cons regarding your
ability to cash flow a house. Plus, you make the tenant responsible for most of the repairs. This strategy
requires the proper documents to be completed the correct way. One mistake while setting this transaction up
can cost you several thousand dollars. Not to mention you could lose control of your property and end up
owing a tenant that’s living in your own property. Some of the biggest advantages of using the lease option tool
are: you still get to keep your real estate depreciation and you don’t have to pay taxes on the option
consideration you received. Since the title is still in your name you have the right to depreciate the property
against your income every year. This is while your tenant is paying rent and you have a buyer that will be
cashing you out in 2 years. The option fee is not taxable because according to the IRS, you didn’t perform a
“taxable event”. A taxable event is when you sell a house and the title goes from one owner to the next. With
the lease option, you maintain ownership of the house. The tenant buyer only has the “right” to buy the house
within the option guidelines. If you do lease options as opposed to having ordinary tenants, your real estate
business will run a lot smoother.

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 YOUR SHORTCUT TO REHABBING
PROPERTIES….. flipping houses
Everybody wants to know about buying a house and then fixing it up & then selling it for a big profit.
Well, it does work like that but it’s not as easy as it seems. Sure, it’s easy to do it once, twice, or
maybe even three times. But how about doing 2 rehabs at a time or even 3, I do several property
renovations in a year & sometimes I have 2 going at once. I must stress to you at first, I didn’t have a
clue of how to do it. Back when I got started there was no “Flip that house” or “Flip this house” or
“Property ladder” to watch on TV. The following section will cover: working with contractors,
budgeting & profit margin, selling tips, renovation contracts and estimators.
You’ll need the proper systems in place to handle all the work and not let the jobs get out of budget.
Having a trust worthy contractor is one of the main ingredients in having a successful flip. I remember
1st starting out I’d meet with the contractors and go over the work to be done verbally. I didn’t do a
contract and just relied on a hand shake. I didn’t even have a contract to give them. Once we agreed
on a price then they would demand ½ up front. After I paid them, I never heard from or saw them
again. I just chalked it up as loss to the game. It didn’t take long to realize that if you’re just meeting
some body, you can go to Lowe’s with them and then buy all the materials they need for the job. Then
you can pay the contractors for the work as it’s being done. As the work gets done, then you advance a
draw. You must do this with new relationships because you never know when a contractor will
disappear with your money.
Over time I have developed a “construction estimator contract” that I use on every property
renovation I do. You will need a document such as this one to itemize all the repairs that need to be
done on your property renovation. It will ask you all the right questions about the construction job as
well as keep your contractor on a very tight budget and schedule. It even has a late fee that the
contractor pays if the job is not done by the agreed date. That’s a clause I made up because my jobs
kept taking too long to finish. It has all the blanks you need to fill in ranging from framing to
plumbing, electrical, demo, painting, sheet rock etc.etc... Below is a copy of one I used on a property
flip… I use this contract on EVERY house I renovate..

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 CONSTRUCTION ESTIMATOR & CONTRACT

It also has a separate place to put in your extra receipts, realtor fees, closing costs, interest paid and
other expenses. It has all the equations you will need built into the cells to total everything up for you.
So you know exactly what you’re going to be spending on your property flip. Make sure if you’re
using a new contractor or have never done a job with him, GET EVERYTHING IN WRITING. If it’s
a subcontractor, get that contract in writing too so you know what you’re spending when you get
started on a job. Subcontractors are the specialists on the job that do only 1 thing such as plumbing,
electrical and central heating & air.

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 Tip-go to www.therealestateroundup.com to download the construction estimator contract.
Click on the course documents and put in user name-iwillbuy pw-ahouse

The determining factor that will make or break the resale of your house is the contractor that you use.
Make sure he is pulling all the permits from the city. I don’t deal with contractors that try to cover
things up and don’t do things the right way. I used a “jack leg” contractor on a job and it ended up
costing me an extra $10,000 when I tried to sell the house. He had done the work and he actually
passed the 1st inspection. I put the house on the market and got a full price offer in a few weeks. The
buyer was getting a grant from the city so the city had their own inspectors on top of the permit
inspectors. When the inspection occurred, they found all types of problems and mistakes with the work
that was done. It was a nightmare and after paying to have the work done once, I was going to have to
pay to have it done again. Some of the floor joist didn’t go all the way across the floors, the plumbing
had the incorrect grade, the electrical was wired wrong, there were no plumbing vents and several other
problems. It all added up to about $10k worth of tearing out old work and replacing with new. I
thought I was getting a good deal by having a cheap contractor but I really wasn’t. I ended up paying
more. Don’t use cheap with contractors. I don’t mind paying a bit more if the job is going to be done
the right way and done fast. I take care of contractors and I even give them a bonus if they finish the
job early. I pay $50 a day for each day the job is done under the agreed date. If we agree to a 30 day
contract and the work is done in 25 days, then I add on an additional $250 to the last payment for the
contractor. This little technique will get your jobs done super fast. It’s always good to show people
you appreciate their time and work ethic.

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 VALUATING FLIPS
An average property renovation for me costs about $30,000. Most of the homes I do require all new
kitchens and bathrooms, flooring, paint, roof, windows, siding, electrical upgrade, plumbing upgrade,
landscaping, new framing, etc.etc.. This is why I can buy the house for the price I need to make a
profit. Usually the profit I’m looking for is around $20k or up to 30% of the ARV. You can revisit the
“wholesaling property example” from before and plug yourself into the equation as the “investor
buyer” to see an actual example of where the “spread” (profit) needs to be. I’m usually the cash buyer
because I don’t like using hard money lenders. Their fees are high and they’re tough to deal with. I
won’t even touch a house unless I’m going to profit around $20k. Yes, I’ll do it for $17k or $18k but
that’s the lowest I’ll go. It’s not worth all the headache and problems, life energy and loss of
opportunity to make less than that. Remember, once you have chosen to go right, you forego the
opportunity to go left. Unless you have unlimited funding and if you had that, then you wouldn’t be
reading this. After you’ve committed to doing deal A, you must pass on deal B. If deal A only nets
you $10k and then deal B pops up and it’s got a $20k net profit, you will be losing money by not taking
the better deal.

Tip- Before I look at a house I get a ball park of what it’s worth by going to
www.homegain.com. This seems to be the best site for me to get property values.

Zillow.com and others just don’t seem to have the search engines down pat like homegain does. So
even before I run comps with a realtor, I get the value from homegain; it’s usually very close to the
ARV of each house I’ve done. Just keep that in mind when putting in offers.
Another thing you must know when negotiating price with the seller is the “city assessment”.
This is the price at which the city places value on real estate and can tax the owner on that value. The
assessed value doesn’t really give you an exact market price or ARV of the property, but it will let you
know what the city appraiser thinks. Typically in my area the city assessment is a bit lower than what
I’ve been selling homes for.

147
 Tip- You can get any city assessors office and the online assessment information at
www.courthousedirect.com.

Go to the site and click on your state and city or county. It’s a great tool to have and it will tell you
more about the property such as the lot size, bds/bths, square footage, year the house was built & some
will give you the owner’s name and mailing address. Each city will have there own city website but
you’re looking for the city assessor within the city website. You’re looking for the online real estate
assessments.
It’s always a good idea to stage your properties when you are attempting to sell them at retail price
with an agent. At the least I put a living room set, bath room set and a kitchen set in the house. The
main reason for doing this is so the buyer will get an idea of what the living area can offer them. It can
also give the buyer something to talk about while they are at your house. While they’re previewing
your house, they can sit down and talk about all the things they like about it and how good it feels to be
in “their” new house (hopefully). I just recently began to do this and it works great. The furniture
compliments the fresh smell of the new carpet. Most of the other houses on the market are going to be
empty and the buyer will just walk in and walk out. Some houses will have older used furniture from
people living in the house. But with your beautiful living room set, the buyer and the buyer’s agent
will sit and talk and dream together. Plus they will stay in your house longer than the house without
any furniture.
Make sure you take some time to do minor landscaping in front of the house as well. It will make
your house more appealing and probably look better than most houses on the block. Landscaping red
mulch with some basic green bushes in a small flower bed in front of the house is done on every
property I rehab. Each house gets the same basic look. This makes things very simple so your
contractor can pretty much price out every job about the same. View the pics of a few of my houses
and how they all look the same on the next page…

148
FLIP WITH CONFIDENCE. USE THE SAME COLORS-
pictures of my renovated houses
1. 2.

3.

149
4.

5.

150
 Tip-Notice all of the pictures have the same siding and window shutters and small little
flower bed. If you use the same supplies on each house, then the contractor can work faster because he
won’t have to ask you about colors… Get these plus other remodeling secrets with my monthly
coaching club membership.

I couldn’t put the shrubs in because it was too cold on #3. Try to use the same types of materials on
each job so you know how much it will cost on each job and your contractor will be familiar with what
you like. This also makes jobs move faster and keeps your budget down.
I need to mention that this course is not designed to assist you in accumulating rental property. If
you are interested in doing that, then we’ll have to get you moving in another direction. Having rental
property is the LAST thing you want to do if you don’t have at least $25,000 in cash reserves. For me
it’s too late. I did it all backwards. I started buying rental property 1 st …(huge mistake) then I learned
how to wholesale. I didn’t know about property management, leases, rental applications, repairs and
repair contracts, construction estimates, shady tenants etc. etc

Tip-You can also get all of my rental documents also at www.therealestateroundup.com …

You have chosen the correct way to build up cash quickly by wholesaling real estate. It has no risk and
you can easily sell your deal to me. I have the financing to buy any deal you can bring in. But
remember I didn’t start out that way. We will be analyzing several deals over the next few months and
hopefully getting you into a few wholesale deals. It will not be an easy venture. But if you keep the
things we spoke about in mind then the deals will come!!!! Good luck and God Bless. I’ll talk to you
soon….
Thanks a Million & I hope to see you soon…..

Kris Haskins
757-660-2628

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 Tip-make sure you’re signed up for my monthly real estate training membership to get:-
updated proof of funds letter-unlimited cell phone access-deal structuring assistance-weekly real estate
secrets & tips, Free access to all documents

ADVANCED TRAINING FOR ALL COACHING

CLUB MEMBERS:
-Tax free Investing using your IRA starting with $500
-How to assign bank owned property
-How to use private Lenders
-Buy houses using your IRA
-Buy houses using other people’s IRA’s
-Using land trusts to buy houses
-Forming joint ventures
-Lease Options(in Detail)
-Subject to’s(in detail)
-Owner financing (in detail)
-Screening tenants
-Successful rehabbing
-Using Virtual Assistants

Please email kriz1204@gmail.com to get more info!!!!

Tip- Download all course documents for free at www.therealestateroundup.com. Click on

course documents and user name-iwillbuy password-ahouse
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STOP getting 1-4%APR with conventional stocks, cd’s or bonds. I pay 8-12% to people just

like you when I buy and fix up a property, ASK ME HOW MY PROGRAM WORKS!!!!

SUGGESTED READING & BIBLIOGRAPHY

-Trump strategies for Real Estate: Billionaire Lessons for the Small Investor
by George Ross
-Reach Returns.com all courses with Greg Pinneo
-Ron Legrand: Quick turn real estate
-About.com
-Barron’s dictionary of real estate terms
-Ron Legrand-fast cash generator
-Nepolean Hill-think and grow rich
US census.gov
Vena Jones Cox
Wikianswers.com
The winning investment habits of Warren Buffet & George Soros
www.therealestateroundup.com
Robyn Thompson “Retailing for all cash”
Robert Kyosaki: “Rich dad poor dad”
Steve Siebold: “Making of a million dollar mind”
Unencumbered income-Richard Pamplin

STOP getting 1-4%APR with conventional stocks, cd’s or bonds. I pay 8-12% to people

just like you when I buy and fix up a property, ASK ME HOW MY PROGRAM WORKS!!!!

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STANDARD AGREEMENT TO SELL REAL ESTATE
STANDARD AGREEMENT TO SELL REAL ESTATE

THIS REAL ESTATE SALES AGREEMENT is made on the ____ of ________________ by and between

Owner of Record _ , (Seller)

, (Seller)
and
Kris Haskins (and/or Nominess) , (Buyer)

___________________________________________________________________________, (Buyer)

WHEREAS, for good consideration the parties mutually agree that:

1. Seller agrees to sell, and Buyer agrees to buy the following described Property:
Property address: 123 easy st. Norfolk, VA 23513 .
Legal Description 12 Blk C Water GARDENS .
Parcel # 087654100

Including but not limited to the following: Range, Hot water heater, Refrigerator, Light fixtures .

And any article left on the premises that Seller does not want at time of closing
2. Buyer agrees to pay to Seller and Seller agrees to accept $ $72,000.00 .

As total purchase price payable as follows:

$100 deposit herewith paid/Earnest Money (to be applied at closing to Seller)

Payment Method ___Cash _ Check___ Bank Check
To be held as a note by the “escrow agent” American Escrow & Title
739 Thimble Shoals Blvd.
Suite 704
Newport News, VA 23606
757-873-5771
$0 to be applied to Buyer’s closing costs.

$71,900.00 payable on delivery by cash, certified or bank check at closing to Seller.

3. Seller warrants it has good and marketable title to said Property, and that said
Property shall be sold by warranty bill of sale free and clear of all liens, encumbrances,
liabilities and adverse claims of every nature and description.

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4. Said property is sold in “as is” condition, Seller disclaiming any warranty or
merchantability, fitness or working order or condition, reasonable wear and tear excepted.
Buyer shall have the right, with reasonable notice to seller, to inspect Property with utilities in
service. Contract shall be contingent upon satisfactory inspection. Seller shall provide Buyer
with a key or place key in a lock box at property so Buyer may enter Property for inspection,
contracting purposes and termite report.

5. Wood destroying insects/moisture. Seller shall provide a termite and moisture damage
report from a licensed Pest Control Operator no later than 10 days after the initiation of this
contract. Buyer shall pay for report.

6. The parties agree to transfer title on Date , _______ or as soon as proper

documentation can be provided. (See Other Conditions) Closing will take place at the address of
the escrow agent. Buyer has the right to market and/or assign this purchase to any third party at
any time under this contract.

7. This agreement and all addendums shall be binding upon and inure to the benefit of the
parties, their successors, assignees and personal representatives.

8. SETTLEMENT EXPENSES: Except as otherwise stated below, Seller, shall pay all expenses
of deed preparation, the grantor’s tax on the deed, and all expenses, if any, for the removal of
title defects. Except as otherwise stated herein, all other expenses incurred by Buyer in
connection with this purchase, including without limitation title examination fees and title
insurance premiums, survey costs,( including elevation certificate, if required by lender)
discount points (unless prohibited by law), insurance premiums, prepaids, recording costs and
fees of Attorney or settlement agent, shall be paid by Buyer
Buyer and Seller agree that the property is and will remain in current condition until
purchase.

9. OTHER TERMS:
Unless all of the persons whose names appear at the beginning of this Agreement
sign it on or before __DATE___, this agreement shall not become effective.

Owner of Record .
Seller(s)

Date .
Seller(s) Signature (if corporation please provide ownership documents)

Kris Haskins(and/or Nominees) _______ _____

Buyer(s)

Date .
Buyer Signature (if corporation please provide ownership documents

12 Easy St. _ 26 Towne Center Way Suite 130 .

Seller(s) Address Buyer(s) Address
Hampton VA 23513 Hampton VA 23666 .
City State Zip City State Zip
Current Phone No: 757-555-1212 Current Phone No: 757-123-4567
Birthday ________________________

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 Closing Attorney:

American Escrow & Title

757-873-5771
739 Thimble Shoals Blvd.
Suite 704
Newport News, VA 23601
George Tillerson

Other Important Information:

______________________________________________________________________________

______________________________________________________________________________

Seller __________________________________Date: .

Buyer Date: .

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 Standard Note
This document provides a formal agreement between Kris Haskins (Note Maker) and American
Escrow & Title co. (Note Holder)

1. BORROWER'S PROMISE TO PAY

In return for this note that I receive, I promise to pay U.S. FIVE THOUSAND DOLLARS
($5,000) (principle), to the Note Holder for the Earnest Money deposit for:
ADDRESS: 123 Easy st. Norfolk, VA 23513.

2. INTEREST
Interest will be charged on unpaid principal until the full amount of principal has been paid. I
will pay an interest rate at a yearly rate of 0% per annum.

3. PAYMENTS & TERMS

There will be no monthly payments made on this note. The principle will be paid only if &
when there is a closing on this property. If there is no closing between the two mentioned parties
then this Note becomes VOID.
Email address for confirmation ________________________

4. Repayment
One thousand dollars will be paid to Note Holder at closing.

5. OBLIGATIONS OF PERSONS UNDER THIS NOTE

Each of the borrowers is fully and personally obligated to keep all of the promises made in this
Note, including the promise to pay the full amount owed. The borrower may enforce its rights
under this Note against each person individually or against all of us together. This means that
any one of us may be required to pay all of the amounts owed under this Note.

Signature of Note Maker 1 ______________________ Date Signed _______________

Signature of Note Maker 2 ______________________ Date Signed _______________

Signature of Note Holder 1 ______________________ Date Signed _______________

157
 NOTES:

Real estate wholesaling system & investing 101

158