From Distressed to Dreaming

You Can Help Take a Homeowner from Distressed to Dreaming

People lose their homes.

It’s an awful experience for most, and the situation comes with a myriad of emotions. Although you can help turn the situation into a win-win experience, if you don’t know how to properly tackle the sensitivity of the topic, you aren’t going to help anyone. Rather than shying away from experiences that can be emotional and uncomfortable, lean in.

Understanding the basics of an Equity Deal is a good place to start. To further your understanding of these processes, you need to understand the etiquette necessary when talking to a homeowner in trouble.

Put yourself in their shoes. Many owners who are on the brink of losing their homes are emotional, desperate, and/or in denial. You must be aware of their position and ready to step forward with confidence.

Tips for Working with Troubled Homeowners:

– First, you HAVE to be respectful. Smile and be courteous. Don’t present yourself as a money-hungry investor unless you want a door shut in your face. You are not doing them a favor, and you don’t have the upper hand. This is a win-win situation. If the owner feels you’re taking advantage of their plight, you won’t build any trust.

– Assure them that you will help if they’ll let you. You need to know what you’re doing (If you don’t, let us help you learn CLICK HERE to learn more about events coming up where you can learn the basics). Appearing as a novice investor will not gain trust. Practice with a friend or spouse if you need to, and deliver your polished pitch with professionalism.


– Explain that foreclosure is inevitable, and if they don’t take action now, they will lose their home at auction. But don’t ever threaten or say anything to purposely upset them.

– If they want to tell you their “sad story,” as many will, listen to them. You will likely learn a great deal about the history of the home and the loans associated.

– Be compassionate, sympathetic, and understanding of their situation. There’s no reason to be rude or disrespectful, ever.

– Don’t force the issue. If they aren’t ready or if you didn’t explain things well, leave and try another time.

– Dress business casual. You want them to feel relaxed around you, but know you are competent.


Now that you have some pointers, marry them with this simple process for a winning formula.

1. Contact the homeowner (or respond if they contact you). We’ve talked about how to do this before, but if you still need help getting started, PLUG.

2. Schedule an appointment to discuss in person how you can help, determining their needs and getting the appropriate paperwork signed. If the initial conversation happens on the phone, that’s fine, but express the importance of meeting face-to-face because you need them to sign…

3. Paperwork: You must get a homeowner to sign the proper documentation to begin working with them (each state and lender requires different paperwork, so do your research). Be sure to know what is needed and have it ready to be filled out.

a. Authorization letter: This lender-required document is vital in order to begin working together, stating specifically whom they may release any information to about the loan.

b. Purchase and Sales Agreement: This creates the ability to purchase the property IF the bank accepts the offer, allowing you to be the sole investor with whom the homeowner and bank can do business with. They can be at ease, however, because this document is only valid when the lender agrees to the purchase price or if you offer more than the homeowner owes.

Assure the homeowner that they are not signing their life away and should be comfortable with the process! This is simply a step they must take to get the ball rolling, but for you, it is the goal of the meeting.


To help distressed homeowners on a new level, consider training in the field of Lien Abatement.

This overlooked and little known investment acquisition strategy can result in a windfall for you and a better quality of life for the neighborhood in which the strategy is deployed.

Learn the secrets to securing the right to turn garbage into gold by following this strategy and becoming a Certified Lien Abatement Specialist.

Click HERE to learn more about getting properties for cents on the dollar!


To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

To challenge yourself personally and in your business, CLICK HERE.

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

Communicate to Stop Wasting Time and Money

Communicate to Stop Wasting Time and Money

6 Keys to Contractor Success

There is no question. If you aren’t leading your contractors, they are going to “lead” you. The #1 snag investors experience with house flipping has to do with contractors in one way or another.

If you invest in a property that needs work, you are likely going to be involved with a contractor in one or more of the following areas:

The relationships between investor and contractor is vital to the success of any project, but can become trying when any of the following problems creep in:

  • Lack of communication
  • Poor communication
  • No communication
  • Misunderstood communication
  • Conveniently “forgotten” communication.

(Notice a trend?)

You must to be in continual and efficient communication with your contractors. No news is bad news.

Key #1 – Communicate with Your Contractor.

You need to know what is happening, when it’s happening, what the costs and projections are, what the deadlines are, how closely the schedule is being adhered to, etc. If you don’t know, they don’t know, so start the conversation.

Key #2 – Be Seen by Your Contractor.

Be a constant face on the job site. Show the contractor that you are hands on, that you will be there when you say you will and pop in unannounced to keep them on the job.

Key #3 – Don’t Bulldoze.

If you don’t want to get bulldozed by a contractor, return the favor and maintain a professional relationship. You can assert your stance as a professional AND be flexible to their advice regarding the project. That doesn’t mean you take every suggestion they make, but you should’ve accounted for appropriate changes in the budget and schedule when applicable.

Key #4 – Be Honest.

This is especially necessary to set up at the beginning! For instance, if you’re going to use a draw schedule, make sure your contractor understands up front how it’s going to work, when they will receive draws, how much, and what you are expecting. Then, don’t deviate from your word once the work begins. Don’t promise to give more than you can, and don’t give less unjustifiably. Remember, this relationship goes both ways.

Key #5 – Make Sure They Complete the Job!

There is little you can do to persuade a crooked contractor to finish a job—and you probably don’t want them to! If you’ve had a contractor abandon a job, your best move is to hire someone reliable to finish the job.

But, that’s not what I’m talking about. I’ve seen people make the mistake of paying the contractors when they’re “done” without doing a final punch list.

This is your job.

Do a final walkthrough with a roll of blue tape and a notepad. Mark up things like chipped paint, unhung towel bars, poorly done calking, or missing trim. Even the best contractors miss things, so get in there, create a punch list, and get the items knocked out as quickly as possible. Don’t pay the contractor’s final payment until this is all done!

Key #6 – Incentivize.

Time is money.

You know this. I know this. Contractors know this.

If you want a job done on or ahead of schedule, offer them an incentive.

It is possible to build lasting, cooperative, mutually beneficial relationships with contractors that last for the duration of your investing career. Don’t get discouraged if you find a dud. Network with other investors and with multiple contractors. Connect with a mentor or coach when things get sticky. And, most importantly, keep going!


If you know what you’re doing, flipping a property can be an amazing experience that puts MONEY in your pocket.

How would it feel to know exactly how to find, fund, fix, and flip a property using the very same methods Lee Arnold has used to become a real estate millionaire? Would it take the guesswork out if you could know these steps and the key to flipping houses with no money down?

If you don’t want to go into a project blindly (and why would you skip out on the potential to make more money and repeat the process for a long and lucrative career?), then keep reading for a limited offer on how you can become certified as a rehab specialist at a special discounted rate today.

TO LEARN MORE ABOUT SAVING ON THIS OPPORTUNITY TO BECOME A CERTIFIED REHABBER, CLICK HERE.

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

If you want to learn more about working with contractors, finding the right deal, writing offers, and so much more, join me for a FUNDING TOURRegister to attend an upcoming Funding Tour and immediately receive a $250,000 pre-approval letter for buying real estate investment properties!

If you’re interested in learning more about the education you can receive with the Lee Arnold System of Real Estate, call us at 800-533-1622. If you have a deal and would like to get a quote from a private money, visit cogocapital.com


South Carolina Borrower Made a $10,000.00 Profit on her First Flip!

How to Grow Your Greatest Asset

How to Grow Your Greatest Asset
If You Want Long-term Wealth, Do THIS…

 

How you spend your time shows me exactly what you’re committed to.

I have a simple formula for determining your level of success at a glance. With just two questions, I can predict your future income with near certainty:

  • How much time every day do you spend working on YOU?

and…

  • How much time every day do you spend working on your dream?

 

If I were to tell you that what you have now is only going to compound over time, would you believe it?

What is “Compound Interest?” For the specific definition, let’s turn to our friends over at Investopia:

“Compounding typically refers to the increasing value of an asset due to the interest earned on both a principal and accumulated interest. This phenomenon, which is a direct realization of the time value of money (TMV) concept, is also known as compound interest. Compound interest works on both assets and liabilities. While compounding boosts the value of an asset more rapidly, it can also increase the amount of money owed on a loan, as interest accumulates on the unpaid principal and previous interest charges.

(Read more at: investopia.com)

So…

If what you’re going to invest in creates interest—either as an asset or liability—then it’s going to compound over time.

And…

If you get more of back on a large asset because it has higher interest, then you should boost the value of your asset to grow it more rapidly.

Then…

It’s safe to logically assume that you should take your largest asset and pour into it with passionate vigor, right?

But…

What is your greatest asset at your present moment?

It’s you.

(Hint: it’s always you.)

Nothing will propel you toward your goals—be they financial, physical, relational, or other—than working on YOU.

Income seldom exceeds personal development.” ―Jim Rohn


Maybe you’ve been struggling to push past a plateau in your investing career.

Perhaps you’ve been hitting road blocks, unable to find distressed properties or get any of your offers accepted and under contract.

Or, you keep facing the same problem on repeat, hiring contractors who consistently go over budget and beyond the agreed schedule, causing you delays and frustration.

Whatever you’re dealing with, if you bring the problem back to the foundation of your investing career—youthen you can fix the problem. You can adjust your level of education to match your goals. You can understand where your fears stem from and how to conquer them, you can build a team, and you can get in the current of productivity which will lead you directly toward prosperous opportunities.


For more on Team Building, <<CLICK HERE>>
We’ll show you how to build your investing dream team, no matter which path you’ve chosen to focus on.
Don’t do it alone; help is an eager worker away.


“You cannot dream yourself into a character;
you must hammer and forge yourself one.”
Henry David Thoreau


 

To dig into where you need help with investing in your greatest asset…

First, answer these questions honestly:

  1. In the last three months, how many books have you read?
  2. In the last year, what new skills have you acquired?
  3. What financial investments and time investments have you made into bettering yourself?

Second, evaluate your dead time.

  1. When you get home from work, do you “punch out” mentally, too?
  2. How much entertainment do you consume every week (tv, movies, social media, partying, video games, random toiling that doesn’t produce much)?
  3. How many times a week do you say, “I’ll do that later” or “I wish I could learn something new, but I just don’t have any time?”

We want to believe we are working “so hard” at our goals. But often, that means we are merely pushing the boundaries a little. Arriving to work 15 minutes early or putting in an extra bird dog session over the weekend to discover distressed homes in your neighborhood. All these little steps will bring you closer to your goal… eventually.

But wouldn’t you rather get in the current of “workflow,” watching results populate all around you because you’re moving so swiftly and effortlessly toward your goals? You can do it the hard way, but don’t you want to do it the easier, better way?

Investing in yourself will never go out of style, never be overkill, and never be “for nothing.” I still invest in myself every year, all the greatest people do.

So, start with your education. Invest in your working knowledge and form a new skill. Then, push yourself and continue to invest deeply to get deeper results. Don’t just read free blogs and print out quote cards. Don’t just invest where it’s easy, but risk it all on yourself and go “all in.”

“Personal development is a major time-saver. The better you become, the less time it takes you to achieve your goals.” ―Brian Tracy

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital and @LeeArnoldSystem

Have a deal under contract that you would like a quote on? Let us know. You can fill out a quick questionnaire at CogoCapital.com to receive a rate quote via email or you can call us anytime at (800) 747-1104 to talk to a loan officer. With millions deployed and millions to deploy, we want you to get the capital you need for your real estate investing.


Image result for trustpilot 5 stars

Timothy just left a new 5-star review of Lee Arnold System of Real Estate Investing:

I would highly recommend this company to all first time investors that I come across that seek funding. I enjoyed the entire team that was out in Milwaukee to train those of us in attendance.

Gary Meyers and Jarrod done a wonderful job during this weekend. I really enjoyed the bus tour to the properties in South Milwaukee. Secondly, it’s a faith based company and this is very rare in the business and I see that God has blessed and will continue to bless those around Lee Arnold.

This is an education company as far as Real estate, training and funding. I wish I had met these guys a little earlier before I actually invested with the other companies which I won’t name. I am currently in debt to the tune of $100K due to the other companies. If I known what I know now, I could have bought 10 homes and be on my way to financial freedom.

I would like to thank the entire team that was in Milwaukee for the weekend for a wonderful experience and I hope that we meet again.

 


Download your PDF here: RCP or visit https://leearnoldsystem.com/lp/catalog/ to learn about all of our certifications. You can bring your questions to a Business Development Consultant today by calling (800) 473-6051.


The Secret to Monetizing Every Time

 

The Secret to Monetizing Every Time

Flipping a house can be fun and profitable.

It can also be a frustrating nightmare if you don’t know what you’re doing.

Maybe you’ve seen one of the many TV shows on the subject, and in the span of an hour witnessed an entire property rehab, which drives up the property value, puts cash in the flipper’s pocket, and all they had to do was overcome 10 minutes worth of problems (usually a broken pool pump or another seemingly innocuous issue).

Now YOU decide to try it, and so you find a house on the MLS that seems cheap. Now the gears are really turning in your mind. You’re going to try this thing! Except then you get into it and realize it’s NOTHING like you see on TV.

Or…

You’ve seen the shows, and know a few people who’ve successfully flipped a property. Maybe you’ve even jumped on a webinar to soak up some extra knowledge, watched a few YouTube videos, and you’re ready to go. Good for you!

Only, you get into a project, quickly realizing you’re in WAY over your head. You’ll be lucky to dump the property without losing money, let alone MAKE any.

Folks. It doesn’t have to be like this!

If you know what you’re doing, flipping a property can be an amazing experience that puts money IN your pocket.

How would it feel to know exactly how to find, fund, fix, and flip a property using the very same methods Lee Arnold has used to become a real estate millionaire? Would it take the guesswork out if you could know these steps and the key to flipping houses with no money down?

If you don’t want to go into a project blindly (and why would you skip out on the potential to make more money and repeat the process for a long and lucrative career?), then keep reading for a limited offer on how you can become certified as a rehab specialist at a special discounted rate today.



This Tallahassee junker was turned into an ABSOLUTE head-turner, and the rehabber walked away with a HUGE profit: $105,000!!!

What she had under her belt going into this rehab? CERTIFICATION!

We want to get you to the next Certified Rehabber event on September 13 – 16th in Kansas City, Missouri so you can begin earning big, fat fix and flip fees too!

Learn how to grab your Certification today (PSST: We’re offering $1,000 off)
Go to: www.leearnoldsystem.com/1000off

This is the perfect chance to get several wholesale and fix and flip deals stocked into your pipeline THIS YEAR. That way the checks keep coming in, one after the other, after the other…


Q- Is it required to be a Certified Rehabber to qualify for a Cogo Capital loan?

A- No. But being certified as a rehab specialist ensures that you can take a project all the way through to completion, mastering the process and dialing into the details using proven methods used by Lee Arnold himself.

Q- I’ve done a project before, and it was successful. Can I still benefit from this certification?

A- Have you ever take a college-level computer programming course? If you used what you learned then today, would it be the most current, efficient way to program software? Point is, with his finger on the pulse, Lee Arnold and the Lee Arnold Team walks the walk every day by flipping dozens of properties a year. Learn from those who constantly advance, continually improve, and always hone in on what works. Even if you’ve done this before, there’s a chance you’ve missed out on PROFIT. If you don’t advance your education, you could miss out on even more.

Q- What’s the cost?

A- First, we’re offering $1,000 off for a limited time. Because this blog will exist long after the special is over, please note that you may not be able to receive the discount again. So HURRY to the link below to see if you can still benefit from this deal!

You can’t afford to miss an event that pays for itself after you complete your first fix and flip deal on time and under budget!

IMPORTANT NOTE:
We also offer you a Success Deposit! When you fix and flip your first deal using Cogo Capital money, bring us pictures and a testimonial, as well as a copy of the check, and you’ll get your ENTIRE investment back!

There’s nothing to lose and everything to gain, so <<CLICK HERE>> NOW to learn more and get started!

 

 

HERE’S THAT LINK AGAIN! <<CLICK HERE>> TO LEARN MORE OR CALL (800) 473-6051

 

Goals That Get You More

Goals That Get You More

 

No, you didn’t accidentally click on and old issue from January. Yes, we’re talking goals in August and September.

For anyone with school-age kids, this time of year can be all about preparation. You’ve spent your budget (and then some) on backpacks and sneakers, amping up your offspring to have the needed confidence to enter and tackle the upcoming semester with a steady stream of tenacity. You may already be sitting on the sidelines of pre-season football games, convincing your kids they can be champions.

What are you doing for your investing business?

If you aren’t setting new goals, obtaining new resources, and setting out a plan to trek a new path toward greatness, it’s easy to stop growing and become stagnant. You wouldn’t let your children stop learning and trying new things until they got it right, would you? Don’t stop pushing yourself, either.

Sometimes, like another child, we need to stay on top of our investment growth if we want to push and inspire ourselves and our clients toward greatness. If you haven’t made any goals since the new year, now is the time to set a few.

Maybe you want to invest in another duplex or 4-plex, but you don’t have 20% down for a traditional mortgage.

Perhaps you’re ready to try flipping a property to resell for profit, but you haven’t spent time looking at your financing options.

Or maybe you’ve made property acquisition goals for 2018 that you haven’t followed through on but would still like to.

With more than a quarter of the year left, and with the boom of summer behind us, there’s plenty of time to finish 2018 with a stronger real estate portfolio. With plenty of tools and resources to get you started, www.cogocapital.com can be your very own “back to school” resource for private money lending.


Don’t just stop at investing. 

If you need funding to expand your real estate portfolio and do those wholesale and flip projects you’ve had on your schedule since the beginning of the year, we’ve got you covered. But if you aren’t also expanding your skill set, you may be missing out on a growth opportunity that will yield you more profit and better opportunities in the future.

 

When was the last time you learned a new skill?

 

Bill Gates was once asked, “If you could have any one superpower, what would it be and why?”

His answer?

“Being able to read super fast.”

Of all the things he could have said, he chose to answer the superfluous question by addressing his reading ability. Why? Because he understands the principle we’re going to discuss today; the principle that each time you add a skill to your roster, you double your chances for success.

The more skills you acquire, the more times you increase your likelihood of success.

 

Not all skills are created equal and are subjective to the work you do. Learning to toss the perfect pizza dough won’t do you much good in the real estate investment field (unless you pay your contractors in pepperoni slices). But I want to share seven universally needed skills that will not only double your chances at success, they will pay off for as long as you live.


Here are 7 skills that might be challenging to collect but will last your whole life:

 

1. Being honest with yourself.

Mark Cuban, owner of the NBA’s Dallas Mavericks, co-owner of 2929 Entertainment and chairman of the AXS TV, and one of the main “shark” investors on the ABC reality television series Shark Tank said this;

“Know was you know and know what you don’t know and be honest about both.”

Too many people lie to themselves about their abilities, time, and ambitions, but rarely see it all come together because they aren’t honest with themselves. You can build upon little truths, but you can’t take a big lie and make it a reality.

 

2. Having confidence.

I’ve never seen someone with “natural ability” in everything they do. But I HAVE seen people who seem to be amazing at everything. How? They have confidence, and that confidence is their power to exceed their vision.

Like a muscle, you must work out your confidence in order for it to grow.

3. Listening.

If I could give you one take away, it would be this one: be the last one to speak. Give others the ability to say what they know is true. Then, bite your tongue from commenting and instead ASK questions, so you will understand why they have the opinion and not just what their opinion is.

Don’t listen to figure out when it’s your turn to speak. Listen to hear, analyze, and understand.

Once you’ve gathered everything you need to know, move on to the next skill…

4. Speaking up.

I once attended a real estate event with a gentleman whose main goal for attending was to network with others for his brokering business. There came a time in the day when attendees could line up by the stage to spend 30 seconds in front of the microphone to introduce who they are and what they do. I asked my friend, “So, you’re going to go up there, right?” and he shook his head, claiming he didn’t have anything to show.

I pulled out a piece of yellow paper, made him write his phone number in big numbers, and sent him up to say, “Hi, I have money to lend if you need it, here’s my number!”

Speaking up is invaluable, whether it’s on stage, in front of a room, on the phone, or participating in a meeting, God gave you a voice for a reason. Use it!

5. Manage your time.

We’ve traded effectiveness for business, and it’s killing productivity!

— Click here to read more on time management–

Don’t clutter your life with stuff that keeps you from being effective. Time is the only thing we spend that we can never replace. Don’t waste it.

6. Be someone who doesn’t whine.

It isn’t productive to complain about what you don’t have, how you compare to others, what isn’t happening, etc.

Train your brain to look for the opportunity in every hurdle instead of seeing the hurdle in every opportunity, and I guarantee you’ll become unstoppable.

“I don’t like people being negative, whining, or moaning. If you’re in a situation you’re not in control of, just change.” Keith Barry

7. Being consistent.

You can outperform anyone who is more knowledgeable, talented, gifted, or privileged than you by simply being consistent. It’s called a grind for a reason.

“Success isn’t always about greatness. It’s about consistency. Consistent hard work leads to success. Greatness will come.” Dwayne “the Rock” Johnson

“For changes to be of any true value, they’ve got to be lasting and consistent.” Tony Robbins


These are all internal skills, ones that relate to any profession. But the principle that learning new skills doubles your chances at success is equally true when you acquire skills related to your business.

What skills can you pick up to benefit your business? If you can’t think of any, borrow from this list:

– General Contracting Skills
– House Inspection skills
– Project Management
– Design (think fliers, banners, bandit signs, business cards, etc.)
– Design (think staging)
– Color Coordination
– Social Media Management
– Ad Writing
– Effective Communication
– Scheduling
– Budgeting
– Acquisitions
– New Marketing Skills
– Accounting

Have a specific hole that can be plugged with a new skill but don’t know how to obtain it? Give us a call and we’ll help you find the training you need 800-533-1622.


You don’t need to know everything. Remember how we talked about doing a S.W.O.T. Analysis and playing to your strengths while hiring out your weaknesses? (CLICK HERE to read more.) But if learning something new today will increase your chances of success tomorrow, then why not pick up a new skill?

Still having trouble deciding what to learn next? I challenge you to practice my 8 skills above while attending a Funding Tour. Not only are you going to pick up many new skills, pump your brain full of information, and jump start your career. Sign up today for a tour in a city near you.


For investor lending, Cogo Capital® offers quick turnaround, excellent terms, and millions to lend. Cogo Capital® serves both local and national real estate investors, real estate agents, and private money lenders in quality, multiple loans.

We look forward to funding your success!

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal? Visit us at www.cogocapital.com to fill out your fast and easy quote. Want to learn more about COGO first? CLICK HERE to get to know all the ins and out!

It’s Too Bad… (A Hard Look at Why Some Deals Fail)

- - Borrowing, Getting Started

It’s too bad so many people don’t succeed at getting funding and successfully profiting on a deal.

It’s not that the process is impossible, many people just tend to “go for it” without considering what they could do to improve their success rate.

I tend to talk a lot about what NOT to do in Real Estate Investing. Sometimes, it seems like I speak more on this subject than what you SHOULD do (but logically, I don’t). I’m truly looking out for your best interest when I make these posts, because no matter how much training I offer over at The Lee Arnold System of Real Estate, and no matter how many articles I post about the subject of best investing practices, there’s always a way to help you improve.

Unfortunately, private money mistakes are common. The sad truth is that some people will never get funding because they don’t know what they need to succeed. Others may receive funding on a deal, only for the property plan fall apart along the way

These are the top 3 reasons you either won’t find financing or you won’t make money on your deal.

3. They believe approval is contingent upon their personal financial history, therefore never structuring the deal right or even taking the leap to look for funding.

MONEY FOLLOWS DEALS!

The thing that matters most in private money lending is that you have a good deal. But I understand the confusion. Let’s run a scenario:
(This is what most people believe happens)

You: Hey! Can you lend me $100,000?

Lender: For what?

You: I’d like to find a property to flip.

Lender: Have I lent to you before? Do you have a history with me? How much experience do you have? Do you have the expertise needed to find a good property? How much money do you have to put down?

Yeah. That’s not the way it works. If you’re going to turn to a private money lender for a loan option, this is how you SHOULD expect it to go

You: Hey! Can you lend me $100,000?

Lender: For what?

You: I have this great deal! Here is the address, the lot size, the bed/bath count, comparable surrounding sales and the after repair value (ARV), and here is the profit margin. And (most importantly), here is the contract with my explicit, contractual right to purchase this property with the amount of money I need to borrow.

Lender: Great! We have something to move forward on. Let’s get started on the process.

2. They don’t understand the importance of the 70% rule.

If you aren’t getting funding, math may be the reason. I can’t tell you how many times I’ve heard, “But I got the property for WAY less than the ARV/asking price/appraised price. Why won’t you fund my deal?”

It comes down to a simple equation.

You don’t make money when you sell a flipped property, you make money when you buy it. You need to purchase a property right, or you’re already on the wrong foot. So, how do you determine how much to off on a property in order to make money on it? The formula is easy!

Take the ARV (after repair value of the property, i.e. the retail value), multiply it by 70%, and subtract the cost of repairs. Whatever is left is your MAO (maximum allowable offer).

Let’s say you want to put an offer in on a property that has an ARV of $200,000. Take $200,000 x 70% = $140,000. If the renovations will cost $40,000 (get several estimates by licensed and bonded contractors), that’s $140,000 – $40,000, which = $100,000. The maximum amount of money you should offer on this property is $100,000, and if you can get it for less, you’ll make more!

So, $200,000 (ARV) x 70% = $140,000

$140,000 – $40,000 (rehab cost) = $100,00 (MAO)

It depends on the deal and your history with investing, but you can expect to get funding between 60% and 70% of the ARV.

1. They lack the education on how to structure a deal.

It’s truly a shame when people let a potentially profitable flip turn sour because they miss managed the project. Think about it. You spent a weekend at an event, learn the basics, find a property that is ~60% of the ARV, get it under contract, secure funding through Cogo Capital (or another private money lender), only to pour month-after-month into the mismanagement of the rehab because you jumped in too soon.

Should you have avoided the deal because you didn’t have enough education?

No.

Becoming a Certified Rehab Specialist doesn’t take year’s worth of education or the student loans of an average bachelor’s degree (that’s an average of $5,750-$15,680 per year for four years, and that’s after average scholarships, grants, and student aid). No, a certification through The Lee Arnold System of Real Estate won’t cost you that by a long shot.

In fact, we’re running a limited-time special NOW, giving you $1,000 off. CLICK HERE to learn more.

If you don’t know what you’re doing, the best place to start is by cozying up to someone who does. Not only will a good education, mentor, or coach save you a lot of unnecessary time, cost, and headache, you will learn faster and turn a profit sooner.

Whether you want to expand your investing business by getting your Certification in Private Money Brokering, become your city’s GO-TO investor to snatch up properties for pennies on the dollar by becoming a Certified Lien Abatement Specialist, or you want to make sure you are flipping houses like the pros from day one by becoming a Certified Rehabber, you aren’t going to get a deal like this on such a pivotal moment in your career for long.

 

 

 

 

 

 

 

 

Or, call 800-533-1622 today to speak for your FREE educational consultation and to see what the Lee Arnold team can do for you.

 

 

 

 

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital and @LeeArnoldSystem

Have a deal under contract that you would like a quote on? Let us know. You can fill out a quick questionnaire at CogoCapital.com to receive a rate quote via email or you can call us anytime at (800) 747-1104 to talk to a loan officer. With millions deployed and millions to deploy, we want you to get the capital you need for your real estate investing.

Image result for trustpilot 5 stars

Timothy just left a new 5-star review of Lee Arnold System of Real Estate Investing:

I would highly recommend this company to all first time investors that I come across that seek funding. I enjoyed the entire team that was out in Milwaukee to train those of us in attendance.

Gary Meyers and Jarrod done a wonderful job during this weekend. I really enjoyed the bus tour to the properties in South Milwaukee. Secondly, it’s a faith based company and this is very rare in the business and I see that God has blessed and will continue to bless those around Lee Arnold.

This is an education company as far as Real estate, training and funding. I wish I had met these guys a little earlier before I actually invested with the other companies which I won’t name. I am currently in debt to the tune of $100K due to the other companies. If I known what I know now, I could have bought 10 homes and be on my way to financial freedom.

I would like to thank the entire team that was in Milwaukee for the weekend for a wonderful experience and I hope that we meet again.

Starting Simple

Don’t Overcomplicate Investing (Until You’ve Performed the Basics)

Starting Simple Will Better Serve You

 

Working and investing in Real Estate holds the designation of being two things:

1- A pursuit where you can all too easily get in over your head (keeping it simple helps to avoid that) and;
2- A pursuit where creative thinking and unconventional strategies (NOT keeping it simple) can pay off big time!

So exists a dichotomy between keeping your deals simple and creatively complicating your deals for maximum returns.

I recently had a series of conversations with a student where she had become confused and overwhelmed by the amount of information she was studying. She had read and studied information from a bunch of different programs and was trying to pull together a strategy from all of them. Her “a-little-of-this-and-a-little-of-that” approach was taking her in too many different directions. She was not keeping it simple.

Now, I’m not saying you shouldn’t study other material and I’m certainly not saying that you shouldn’t get creative in your deals. You should–eventually. But, if you’re working on putting together one of your first deals, stick with the basics. You’ll get to a point where you’re ready to get creative. For now, a concerted focus on getting some momentum with a few easy deals will serve you well.

What’s the difference between simple deals and complicated deals?

Let’s take a look at an example of lining up a wholesale deal. In this scenario, you;

1) Enter a contract with the seller where you’re the buyer.

2) The price is negotiated. Once you have an approved price, you;

3) assign the deal to someone else–simple.

 

OR…

Contrast that with one where you pursue a short sale using multiple methods.

1) At the same time that you enter a contract, you also get a deed to the property (just in case the seller gets cold feet).

2) Then you get an authorization letter for someone to talk with the bank;

3) plus you get a Power of Attorney (just in case something happens later on that you can’t control).

4) Then, before sending information to the bank, you heard somewhere that if you take all kinds of pictures of the property, it might help.

5) And don’t forget that you can influence the BPO by being at the property at the same time.

6) Plus, you almost forgot that if the bank doesn’t accept the short sale, you might want to take the property “subject to” so you go back to the seller to get another contract.

7) And, you heard on a CD somewhere that getting an option on the property gives you a lot more control with not much risk, so you might as well throw one of those in as well.

Before long you’ve exhausted the whole real estate encyclopedia on this one deal.

There is nothing wrong with those steps. You may be in a position someday when you would do every single thing on that list. But not when you’re putting together one of your first deals. You’ll be challenged enough with just the basics. Over time, you can creatively manipulate deals for maximum returns.

The moral is: Don’t overwhelm yourself by doing too much too soon. Go out and make some money the easy way. It might not be as much as you could make from that deal but, if you overcomplicate it, you’ll lose the deal entirely. Making something is always better than making nothing. The earlier you can see that the better off you’ll be!

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal under contract that you would like a quote on? Let us know. You can fill out a quick questionnaire at CogoCapital.com to receive a rate quote via email or you can call us anytime at (800) 747-1104 to talk to a loan officer. With millions deployed and millions to deploy, we want you to get the capital you need for your real estate investing.

When you come to Cogo Capital® looking for a private money loan on a property under contract, we’ll assure you have quick turnaround, excellent terms, and millions to lend. Cogo Capital® serves both local and national real estate investors, real estate agents, and private money lenders in quality, multiple loans.

Interested in learning more about Real Estate Investing but don’t know where to start?

Have you gone to FundingTour.com yet? Find an event near you to dive into a crash course of real estate investing AND get the funding you need to start your first project. See what people are saying about our Funding Tours by clicking the link HERE

4 Mistakes to Avoid When Investing in Real Estate

I love making mistakes. (Well, sort of.) Why?

First, mistakes mean I’m trying something new, and good things often come from stretching myself. Second, every mistake I have made, I’ve turned into a learning opportunity so that YOU can avoid the same misled path and can make up the money where I’ve lost it in the past.

We all make misguided choices, often with the best of intentions. And we shouldn’t jump into every opportunity expecting to just make a bunch of mistakes. Not only is that going to keep us from taking advantage of good opportunities because we think we’ll fail, but it’s exhausting financially, physically, and emotionally when our mistakes outweigh our victories.

We should be educated on the work we intend to perform, guided to prevent unnecessary loss, and mentored to make as much profit as possible until we become masters at our craft.

Even though errors are inevitable and not entirely unavoidable, we can minimize our risk by learning from those who have made big blunders already. Because you know what I love more than making a mistake that I can learn from? Doing it right the first time and making more money. Maybe that’s just me…

If you want to avoid losing money by making mistakes that are easily avoidable, then let’s jump into a few mistakes to avoid in your real estate investing business.

#1 – Giving Too Much Money to Your Contractor Upfront

What happens with many contractors is they take the money you paid them for your project, scramble to finish the other project they’re working on with YOUR money with the plan of using their paycheck from that job to pay for yours. Then, if they miscalculate their efforts at the job they’re finishing up (on your dime), they could be there for another month. Or, if they don’t get paid enough or on time for the previous job, then they don’t have the finances to start yours.

Your contractor, as it typically happens, could end up behind schedule and asking you for more money when they haven’t done anything to begin with!

When you receive funding for the rehab costs of your investment property and follow the draw system under which Cogo Capital operates, it can sometimes feel like an unnecessary hassle to prove that work is being done incrementally in order to get the next draw and keep the project moving. I get it. But this due diligence process has been put in place to protect you from being ripped off and losing money.

Don’t get “ahead of the money” by forking over so much that you’re at risk of loss because your finances are now in someone else’s hands.

#2 – Not Making an Offer

You can’t close a house with words. More than anything else, real estate is a business that is done with black ink on white paper.

When you pass someone a written offer (or anything else in writing, for that matter), you are handing them your intentions. They can then take that information home, digest the dates and numbers on the page, live with it and understand what those numbers will mean in their lives and in their situation, and it becomes real to them. Your offer creates a vacuum in their life, especially if the seller has no other offers on the table at the moment, and they often feel like they have no choice but to accept it (or, at least counter).

Call me old-fashioned, but whenever possible, you should hand deliver a physical piece of paper to the seller with your offer. Email has its place and is convenient and often necessary in our fast-paced world. But a piece of paper will take up real estate on that person’s desk (or counter or kitchen table or the dash of their car), making it less unavoidable than an email.

Carve out and make space in that person’s life for you. It’s the same with marketing material. And if you need a refresher on why we still send snail mail and how it can give you a leg-up in today’s world, <<CLICK HERE>>

For more on why you should offer on every house you look at, <<CLICK HERE>>

#3 – Not Getting Non-Refundable Deposits

If you’re assembling a wholesale deal and you’ve found a buyer for the property that is willing to pay more for the property than you have it under contract for, and you don’t require a non-refundable deposit, you run the risk of the buyer not closing and your deal stalling out. This is especially true if you’re still under contract with the seller of that property to you while you “assign” a buyer (the end buyer in your wholesale deal). That original seller has you under contract and therefore under the pressure of a stopwatch, and if you have a buyer who walks away from the deal, you could be out, too.

Control your buyer with a non-refundable deposit to lock them in, because most people don’t want to walk away from $1,000 (or however much you require). Then, if there is a problem and the deal falls apart, you have the deposit to cover the time you’ve spent on that buyer who fell through and can still sell the property to someone else if time allows.

When you have cash buyers, you should focus on your “posture” within the conversation and require specific things to keep them true to their word. When you’re new to investing, it can be so easy to become compliant with what others ask for (or demand) because you feel like they probably know better than you. But if the interested party is truly a cash buyer and not a tire kicker, they should have no problem giving you earnest money for the deal.

#4 – Being Scared to Talk to People

There are ways to work around your natural timidity, but you should make a conscious effort to get out of your self-limiting shyness.

Tell me if this sounds familiar: You break out of your comfort zone to attend a REI meeting in your area to connect with other real estate investors and professionals, only to be so intimidated by the caliber of education in the room and the confident people in suits who seem to have it all together that you barely talk and you don’t make any connections.

First of all, great job for showing up! Keep doing that and you’ll slowly break out of your shell.

Second, get uncomfortable and introduce yourself. I’ve purchased and sold some of the highest-profiting deals by just asking people if they know anyone who is selling a house. Just because you aren’t the smartest person in the room–and that’s a good thing, because if you are, you’re in the wrong room!–you can still make connections that could lead you toward a successful deal (or ten).

And as a bonus, if you keep attending, you will meet people who are beginning just like you. You could build a strong relationship with someone that could turn into a potential partnership, you could meet an accountability partner, or you could help someone else avoid a mistake that could cost them time and money. And that’s all worth it in my book.

Open mouth, open business.

What mistakes would you like to avoid? What mistakes have you made that have kept you on the fence about doing another deal? If you need guidance and support, we’re here to help! Call us today at (800) 473-6051, and we can connect you with the tools, coaching, and education you need to get and stay on the right track (and to keep moving forward because you know what they say… even if you’re on the right track, if you’re not moving, you’ll get run over).

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal under contract that you would like a quote on? Let us know. You can fill out a quick questionnaire at CogoCapital.com to receive a rate quote via email or you can call us anytime at (800) 747-1104 to talk to a loan officer. With millions deployed and millions to deploy, we want you to get the capital you need for your real estate investing.

Entry Strategy

- - Borrowing

 

What’s in a name?

We’ve discussed exit strategy, process, acquisitions, and many things in between. Let’s talk about entry strategy, specifically the name

There are as many answers to the question of entry strategy as there are options to purchasing real estate. There is flexibility in mixing business and personal, the purpose of the property, interest rates, and taxes. Let’s focus on the name under which you should purchase a house to fix and flip so you can maintain better control over your exit strategy.

Why does your exit strategy determine your entry strategy?

If you are buying a property with the intent purpose to flip it, buy it under an LLC.

If you’re buying with the intention to hold the property–meaning you’re going to borrow hard money as a short-term bridge, fix the property, and refinance in your name to then hold long-term, then finance it in your own name.

If you’re going to bring in a credit partner–someone who has a great credit score and will qualify for a refinance–then you will finance it in their name.

Why is this important, and how does it affect your exit strategy? If you buy it under an LLC and determine that you can’t sell it or flip it, then have to refinance it and hold it long-term, here’s what happens;

– You bought it as an LLC,
– You then need to deed it to yourself to get financing,
– You then deed it out of yourself and back into the LLC for asset protection,
– All of this results in a clouded title.

If you’re going to sell that now to an end-user buyer, they’re going to have a hard time getting financing because you’ve clouded the title and made getting a loan nearly impossible without 8, 10, or even 16 months of seasoning.

Guess who has to cover all those costs.

You.

Let’s get you in and out as soon as you can to turn a good profit, and onto the next property. Don’t get stuck with a financially draining property because you didn’t plan for an exit strategy.

That’s why your entry strategy for a property–under whose name you purchase the property–is important. As always, talk to your lender about your options and requirements. Questions about financing? Call Cogo Capital at (800) 747-1104 to talk about terms.

As a full-service Private Money lender for real estate investors, we do most of the leg-work for you, while you build up your real estate portfolio and cash-flow all your deals. Whether it’s for wholesale, rehab, or buy and hold for long-term cash investment deals, Cogo Capital delivers fast and easy access to Private Money. We’re an equity-based lender which means we care more about the property’s merits, and don’t focus on poor credit, or some of the other factors conventional lenders use to rate the risk.

We offer a full service Private Money platform that will help you through your entire deal from application to closing. You don’t have to make any awkward phone calls to strangers for funds or worry about drafting documents, the HUD 1 statement, or pulling title.

Whether you need fix and flip loans, a rehab ARV loan, or a cash-out refinance, just fill out the quick and easy application above and we’ll be on the way to getting your deal funded. After reviewing your application, and provided your property is under contract, we’ll contact you for the rest of the information.

Cogo Capital offers quick turnaround, excellent terms, and millions to lend. Cogo Capital serves both local and national real estate investors, real estate agents, and private money lenders in quality, multiple loans.

Author: Lee Arnold not only teaches real estate investors how to successfully invest in real estate but he also regularly invests in the local Spokane market using funds from Cogo Capital. He and his team buy distressed properties and turn them into flagship homes, attracting new buyers and money into the local economy.

Not only does he do this in the local community, but he also helps many communities throughout the nation. With a comprehensive educational program and a private capital network, Lee instructs thousands of people every year on how to safely and wisely invest in real estate. He then gives both new and seasoned investors road maps to invest, and the funds necessary to purchase and rehab properties in communities all over the country.

 

Partnering with an Agent


How To Find An Agent For Your Rehab Investments

If you do not have your real estate license (you probably know by now that I recommend you hang your sign with me at Keller Williams if you’re a real estate investor, but that’s a blog for another time), you must find a quality agent who can get you as many listings as possible, fitting your rather unusual criteria, perceiving a minuscule commission rate from your bargain, and… they are thrilled about it.

What a dream team.

You can find and keep an agent like this for a long time, and it can be a mutually beneficial relationship. But you just need to take some burden off your agent and clearly relay your minimal expectations.

What Should Your Agent Do?

Since you will be looking at so many houses and making few deals, you only want your agent to send you listings (daily) and submit your offers.  That’s all. Don’t make them driving you all over town, pull comps on every home you are interested in, or present offers when you aren’t really ready to move forward. You should know how to do all of this, and your participation will take the edge off their (frequent) work with you as well as keep you involved in what you must be involved in.

A rare showing or comp pulling is okay, but only if you can’t gather the information on your own.

What Should You Do?

When looking for an agent, it helps to share the following:

  • Be honest about your experience; how many houses you have flipped?
  • Tell them you are a real estate investor looking for x number of houses to buy per x amount of time (i.e.3-4 houses every 6 months).
  • Tell them you do not expect them to show you the houses, only to make your offers.
  • Tell them how many offers you are probably making per month in order to get X number accepted.
  • Bring up how most banks pay agents a minimum commission (versus percentage) so your agent can still expect decent money- which you want them to have.
  • Finally, iterate, highlight, and say it with conviction, “I highly value your time and won’t waste it.”

Consideration equals loyalty.

You want to find an agent you can stick with so live up to your promises and expectations.  If you find an agent that is ready to jump on board with the above acknowledged, you are in business.

If you need help getting a private money loan in your backyard, visit  us at www.CogoCapital.com or call a loan officer today at (800) 473-6051Cogo Capital® offers quick turnaround, excellent terms, and millions to lend. Cogo Capital® serves both local and national real estate investors, real estate agents, and private money lenders in quality, multiple loans.

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

Have a deal under contract that you would like a quote on? Let us know. You can fill out a quick questionnaire at CogoCapital.com to receive a rate quote via email or you can call us anytime at (800) 747-1104 to talk to a loan officer. With millions deployed and millions to deploy, we want you to get the capital you need for your real estate investing.