Scott Carson here with Real Estate Investing Los Angeles Part 3! This is part 3 in our real estate investor training series from the one on one coaching I did for RealEstateProfitCoach.com in LA.
If you missed previous installments, you can check out the Real Estate Investing Los Angeles Part 1, Part 2 installments here (just search in the search box). Watch the video below and then read the text for more info…
Real Estate Marketing
Day two was a very busy, twelve hour day today! I started off by having Jeremy post a few more Craigslist ads to help him build a buyer’s and investor’s list.
I also had Jeremy look through the posted listings to see how find hard money lenders and how to find private money lenders that he could reach out to besides the sources that we had found the previous day.
Analyzing Real Estate Deals
After helping Jeremy build an Excel list, we focused on narrowing down the REO list that his realtor, Victoria Page, sent us the day before.
We whittled down the list to around 18 properties and emailed the list to her for her to start pulling comps so that we could evaluate them and look at some properties on Day Three.
Networking With Real Estate Investment Clubs To Find Deals
I’m a huge believer in networking to help investors find, move, and flip deals. An easy way to find groups is to check out REIClub.com along with searching real estate clubs on Meetup.com.
By getting Jeremy logged on, we found over 15 real estate clubs within 25 miles of his location. He joined 5 clubs which increased his ability to email out his wholesale deals by over 500 names and investors!
This is a huge advantage for Jeremy to be able to get the word out on deals that he has found and is looking to wholesale.
How To Find Defaulted Paper
After getting his Meetup groups going, Jeremy asked me to spend some time discussing how to evaluate defaulted paper/notes.
I went through the major specifics of a note: Term, Interest Rate, Present Value/Balance, Payment History and Type, Investment to Value, and finally, the Value of the Property (Future Value).
After explaining how each affected the pricing of a note, Jeremy understood how to look at a note and price it accordingly. We then went back to Frankie’s for lunch! Chicken Marsala is awesome!
Using Escrow Officers To Find Deals
We arrived back from lunch and began to prepare for our meeting with Escrow Officer, Michael Kendrick of Landmark Escrow, Inc.
Michael was awesome. He worked with a lot of investors and gave us several referrals (title company and some other private investors). We had a great discussion with him and we look forward to sending him a ton of business.
After spending a half hour with Michael, we headed back to Jeremy’s office to work on some things.
Evaluating Real Estate Deals
Victoria had sent us comps on 9 properties while we were out at lunch and visiting with Michael. We spent some time reviewing the comps and identified a few areas and properties that we would look at the following couple of days.
We also were emailed from a REO broker that had a $5 million dollar REO pool that he was looking to sell at $3 million or at 60 cents on the dollar. With only 34 properties in the pool, it averages out to an average purchase price of $97,000 and a value of $147,000 with properties in Los Angeles and San Bernandino Counties.
The selling broker requested a proof of funds letter but I countered back that I wanted to see a tape or excel sheet of the properties before providing POF. They complied as long as I would have Jeremy sign a Non-Compete, Non-Disclosure Form protecting them. So now we have a REO pool to evaluate before the week is over!
We then headed out to attend an investment club meeting put on by Robyn and Steve Love (Investors Resource Center of America). At that meeting, the Love’s were putting together a group to do deals with Pac Trusts with Bill Gatten’s group.
While it was a small group (only 16 attendees) it was a priceless event to attend. While we were able to add a few other investors, we did add over 1000 tenant buyers with at least $5,000 down!
One investor had over 460 buyers all across the nation and Bill Gatten provided an additional 700 buyers. These lists were given to the group for free, nada, zilch, cero, zero!
Talk about a wonderful opportunity for Jeremy and any deals that he would come across to sell! While the event last three hours, it was well worth the commute and the $25 entrance fee to attend. It was a great way to wrap up the day!
Prior to getting dropped off at my rental, Jeremy and I reviewed the day at hand and what we had accomplished. It was a busy twelve hour day, but a very fruitful and productive day that is going to lead to exponential profits for Jeremy. Tune in for Day 3 and Day 4 wrap ups!
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