Rehablist.com | Common Myths and Wrong Impression about REOs

The video is about myths that's sending wrong impression on the REO market place. It discusses on why most investors don't make enough money. It also gives some tips on how to deal without showing your cash and the 3 web sources that are related to REOs and foreclosed properties.

Rehablist.com | REO's and Foreclosure Strategy and Techniques

I've been in the business for 19 years and in june i'll be 20 years. Which make me ancient in this business. Yes it's true, because mostly the investors they got it during the bubble or during or left right after the bubble.

Now very few people have stuck around. During that time i have been involved in 700 transactions of different kinds.

I've wholesaled, I've done rehab, i used to buy and notes for a while. I've done commercial and residential lending. For the past 7 years now, i've been a private lender to investors and wholesalers in buy, fix and sell business.




I wanna share some very smart that a gentleman by the name of Confucius said and what he said was "Man who chases many chickens, catches none". 

The reason i mention this is because there's a lot of people hear about different webinars on different subjects on short sales and this and that. They are have hundreds of different ways to make money in real estate, I'm gonna show you why dealing with REO's is far the best way and why considering focusing strictly on REO's




Now you definitely focus on one strategy which you don't wanna do is doing a short sale here, try to do foreclosure there or do a loan mod and do all this things and end up failing in all of them, not making money at all.

What you do is concentrate on one thing, make it some money for you and get really really good at it. Once you a have a cash cow you can do anything you want. You can stay in the business, do something else or go on vacation.




What is the best strategy? Im talking about buying or flipping REOs. When i mean buying a lot of you out there who are basically rehabbers and you want to buy properties, fix 'em up and sell 'em.

Folks, the best deals that you gonna get are REOs and of course when i mean an REO is also mean a Bank Owned Property.



There's a couple of people that asks a little about REOs. Basically an REO is when a homeowner fails to pay their mortgage payments the bank files what is called a Foreclosure suit.

Eventually through the foreclosure process unless the owner pays off the mortgage or sells it which you can't really do, then the property goes for foreclosure and it gets transferred back to the bank. At that point the bank nows own the property and calls it an REO. It's internal term calling Real Estate Owned.




Now, here's where the tremendous opportunity is right now. Here's a quick information on realtytrac.com.




If you ever hear like CNN or the Wall Street Journal whatever quote on any statistics there quoting realtytrac.com. And now just with the latest stats that were out of February they we're up 30% from a year ago.




In 2008 there were 2.3 million properties in foreclosure. So even the government now decides to buy all this assets there are still 2.3 million in the pipeline that need to be dealt with.




What do you think is gonna happen to those 99% of thoser foreclosures? They are becoming REO's there's just can't happen to them.



So what does happen to those REO properties? Here's the good news folks, banks they can't keep them. They can't rent them out. They re legally obligated to sell them.

So that's not gonna change anytime soon, you not gonna see banks as landlords. Banks are the ultimate motivated seller, if you gonna buying a property, banks are the way to go. If your buying from an individual seller often times a seller is emotionally attached to their property, they grew up their or they won't sell it at the price you need to buy.




The Banks can sell it at a lower price because there's no mortgage on their. There's a lot of seller that would love to just give you their property bu there's nothing there if the mortgage is more than the property's worth.

So even they could sell it to you if they wanted to, they can't.So the banks sooner or later they have to sell it's not the matter of IF, it's the matter of WHEN. That's what i call the ultimate motivated seller.




There are many ideas and many concepts about wholesaling and buying REO's that are simply wrong.

Rehablist.com | Value is in the Cash Flow

This video explains how to be an effective CEO in your business from creating cash flow to capitalization rate. It is also enlightened us on how to use the "Times 10 Valuation Calculation" formula, the "Net Operating Income" and the "Value Plays"

Rehablist.com | One Mower, One Man, One Dream

If you had seen me 14 years ago, this what you have seen as you see on the screen right now. I was in a rock n' roll band roughly on my twenties.

I have a great time with that band, i was a lead vocals on that band called voyager. The original name was flesh picnic we changed it to voyager in the last couple of years. If i could make in rock n' roll i would have. I tried through out in my twenties but i did quite make it and at 29 that's where i start real estate investing.





I live to this apartment house throughout my twenties, we have a lot of great times on the second floor. There's one bedroom on the right and the living room was here, the kitchen is also here. We have a lot of parties after all those gigs up there but in reality in all throughout in my twenties i struggled in this apartment building. I struggled because there is not enough cash coming in. I have bills coming in, but not a lot of cash.




When i was 28 years old i realized that it is probably time to do something to change my life. I was tired living that life. I started a leased mowing company, i literally went door to door in spring time in the Boston area, that is where I'm from as you can see there's snow in the ground here when i took this picture. In spring time in April, i went to different neighborhoods and i look for a yard to head high grass.

I went knock on their doors and asked those people if i could do lawn service for the year, and that' how i started my business. I used to put this picture on my wall for motivation and i used to tell people "One Man, One Mower, One Dream!" because i want to be a landscape king of the world.

The problem in Boston we have this so called winter and it comes around every six months and it's like a bad relative that hangs out for six months. In the winter time i struggled, i did all kinds of odd jobs just to get by. I used to have a lot snow plowing, i used to sell all kinds of membership cards.

Fortunately for me i have a friend that work for a bank and they foreclosed on a property and he knew i was struggling during the winter and he asks me to do repairs on that property and i said "absolutely".

That time i would have done anything to get money coming in to my apartment and i don't know how to do any repairs on this property and i didn't know to bid the repairs. So i got my cousin to go over there with me and he help put the numbers together.

We sent it to the bank to bid and the bid came back and we are low bidders and they congratulate us. I remember looking at my cousin,

"Hey look, we won the job, this is awesome"

and he said

"Yeah, this is awesome. But what do you mean we? I didn't know how to do this bid and put the numbers together, do you think i know anything of this work?"

So he could helped me a little bit but not as much what i have hoped. I went to home depot to those seminars during weekends and i know how to put on doors, floors and paints. But what i really learned is that i'm not gonna be really good on any of that stuff.

But what I'm good at is calling the contractors, calling friends and family members in getting the first job done. Got the first job done, the bank asks to bid another one. I was able to do that one, they asked me to bid a third one, i did that. They like the work on that one.

At that time i realized that people flipping this properties, there are actually two kinds of people that coming in to this houses. They were the homeowners that brought their own tape measure and their primary concern was whether or not their furniture is gonna fit.

And then there are the investors, whose primary concern was

"What's wrong with the property?"

So the investors asks me a lot of questions and i started asking them a lot of questions like

"How much do you make on this deal?"

and they telling me $20,000, $30,000, $40,000 on a flip, and i thought if i could just have those wind falls coming to my apartment that will be huge difference in my life. So i started doing exactly what you are doing now. I started listening to successful people on teleconferences, i started to get books and tapes and started listening to their systems.

In within a very short period of time i have enough money to do my first deal. Actually not that enough money, but not enough information on the first deal but i have a problem. The problem wasn't that i haven't enough money at that time i had only $800 at the bank.

It wasn't the fact back then that my credit is wasn't so great . The problem is that was "fear" i'm afraid to do my first deal. Can you actually relate to that? being fearful on that first deal and i discovered that there are two ways to get over that fear.

Rehablist | Why Short Sales are getting BIGGER?

20% of all loans are considered "whole" loans. It means that essentially 80% of all the loans out there have one lender. So what is this all about? mostly people buying on 80/20 loans to avoid PMI and get 100% financing and then we created a mess that we are in.

What it does that it created a huge opportunity for short sale not just loan modification, because loan modification is extremely difficult when you talk about 2 different lenders, you got option1 on the first and option2 on the second. Well option 2 is gonna have to be willing to release their lien and they have pay something, so if its just a typical loan modification it doesn't get done, so that short sale comes into place and that's we're you can use some skills to your advantage and a real more meaningful way.

Rehablist | Why Real Estate Investors fail?

I consider myself a guru, I'm a regular investor just like you and waste a lot of money and take lot of wrong turns the same way you have. I'm gonna a show that there's a better way and i have learned in six years of doing this and coming out of the trenches, i will tell you everything i do.

No network, investors try everything by themselves. They have no network of people around them to support them and do deals with them. But if you're like most investors your doing some things but not gonna do on others.

In order to have a well oiled short sale machine there are a three ruled parts that need to be filled in the business. The person filling each of this roles needs to be a specialist in this roles.In reality you can not be a specialist in each of this roles because it take too long to learn and takes up lot of your time in a daily basis.

No tested improvements in the system because investors who try everything by themselves they have no system to continuously to bring in new properties and selling properties with no effort from you. The system should not rely on you to make money.

The purpose of the system is to make you money without having you to work, if you are doing work yourself and don't have a system you don't have real freedom in your life, instead you are creating yourself another job that your trying out to begin with.

No training or bad training. Investors that have gone bad training from gurus that teaches old strategies that are no longer working in today's market or give an incomplete information that are bound for failure.

The short sale in the mortgage market are constantly changing, your mentor used to be someone with their hands on the pulse of what's going on with the loss of engagement upon it with the lenders. Your mentor must be active in today's market, not in the market we're in 3,5 or 10 years ago.

Spending too much money on marketing to find deals.The foreclosure listings is very competitive in order to get a deal you have to set a lot of mail a list which cost a lot of money and investors run out of money in doing a deal and put out of business.

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It gives you freedom to be a business owner and have a network around you, working your system for you so you don't have to do work. If you are the one doing work and your sick or gone for vacation or something what happens to income? right, it stops. The systems allow money keep coming in no matter what you are doing.