Category "Borrowing"

2018 Predicted Real Estate Trends

2018 Predicted Real Estate Trends; and How it Impacts You

As we roll through Christmas and prepare for the New Year, let’s spend a few minutes discussing the real estate trends you should prepare for.

WHY?

Each year, the market looks different. As much as you can, you should spend some time evaluating the professional predictions, looking at your local market, and working the trends into your annual goals to see faster, more effective growth.

According to Zillow, inventory shortages will drive the housing market. With 12% fewer homes on the market nationwide than a year ago, 51% of them are in the top 1/3 of home values. Not only are these properties out of reach for first-time homebuyers, but the average buyers looking to upgrade won’t likely move to get them.

Because of this trend in real estate, it is expected that builders will focus on building entry-level homes, giving more inventory to first-time and lower- to middle-income buyers. According to Realtor.com, housing starts are predicted to rise 3% over the year, but single-family home starts will increase 7%. This increase in residential housing on the starter-home level, according to economists, is the key to leveling out and bringing down home prices. Home prices will still climb, and even with new construction on the rise, economists call this increase nearly “unstoppable.” Home prices are expected to rise 4.1% in 2018, 1.1 percentage points higher than the average appreciation of 3%, but slower than the current annual pace of 6.9%.

The millennial generation is also expected to move further out from urban centers where many of them rent, giving up their preferred ’round-the-corner entertainment and shopping options in favor of affordable housing. As these 25-34-year-old homebuyers have families, they will also look for wider halls to accommodate strollers, as well as larger communal spaces. Homeownership rate will stabalize at 63.9% (according to Realtor.com) after having hit bottom in the second quarter of 2016.

Another Zillow predictions for 2018 shows that instead of buying new homes, existing homeowners will invest in remodeling to make their current home feel and look brand new. The baby boomer generation will also drive home design as the need for wheelchair accessibility, step-in bathtubs, extra handrails, and stair mobility access is needed.


WHAT DOES THIS MEAN FOR YOU?

Since housing prices are still on the rise, the current methods you are using to acquire properties may not be as effective in 2018. You would be wise to have more than one strategy to find cheap properties in which to invest.

While working with the city to improve neighborhoods by doing what we do best, I’ve discovered a way to acquire properties that are hidden in plain sight. These houses have highly motivated sellers and offer a huge profit. And I’m teaching it to you in the Master Lien Abatement Certification.


With our first class under our belt, here’s what attendees had to say:


To read more about what this program is, what we’ll teach, and how to take advantage of this wildly untapped market in your area before the competition takes it over, CLICK HERE TO READ MORE. And then READ THIS ONE. This is not the kind of stuff you want to just skim over. This new strategy can change your business!

Why are we teaching this new method at the Lee Arnold System of Real Estate? In 2018, Cogo Capital is deploying more money than ever. We need that money to go somewhere, and we’d like that money to go to you.

If you’d like to get involved in the Master Lien Abatement, call is now at (800) 473-6051. Space for the next available class is very limited.

UPDATE!: Demand for the new Master Lien Abatement Course is very high. Our first 2018 class has already filled and is closed. Please be advised that the next available class is scheduled for April 16-19, 2018.

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!

For our latest success stories, click HERE to read how others are finding, funding, and making money on their deals.


To learn more about how to get $497 tickets for FREE, go to FUNDINGTOUR.COM or call (800) 473-6051.

We Love OPM

- - Borrowing, Entrepreneurship

What is OPM?

Most people don’t have the personal capital to buy and renovate houses to put on the retail market for profit. Yet so many self-made millionaires make their money with real estate. So how do you bridge the gap between not having enough money for your first project and having an abundance of capital to fund larger deals, more deals, and other people’s deals (making passive income on the interest)?

How do you go from no-capital to plenty of it?

OPM

OPM (or “other people’s money”) is a great tool. Nix that, for many of you, it isn’t a tool at all; it’s a necessity to get started and/or keep going in your business.

When I was just starting out, I knew I needed OPM to do the things I visualized. I was working at a grocery store as a bag boy. I didn’t have the capital to start a project and to be honest, I didn’t have much of an idea how to get it. But I knew what I needed to get started.

I learned the hard way.

Let me help you avoid the hard way.


Don’t let the preconceived notion that no one wants to lend to you cloud your vision and your dampen your goals. People want to lend money to you, but you need to find the right people and come to them with the right deal.

Why Other People Like Lending their Money?

This one is simple. Not everyone has the time to find good deals. If you invest the time to find the good deals that others can invest in, they will flock to you. FLOCK. Remember what I always say? Money isn’t attracted to you; money is attracted to a good deal. Get a good deal under contract and finding the money to fund it is the easy part.


When You Can Safely and Efficiently Use Other People’s Money

Just like any debt, a loan from anyone should be used to produce income with. We’re obviously not talking about taking out a loan to fund your vacation; that’s . No matter who you borrow from, make sure you’re both clear on the terms, the numbers, the expected communication, and the time frame of the loan. Err on the side of over-responsible, especially if you want to borrow money again in the future.


The Worst Ways to Find OPM

– Family

– Friends

When you need something, your knee-jerk reaction could be to call up those closest to you. It’s what I did, but I don’t advise you to follow in the footsteps of my frustration. Why? Because even if your family and friends have money to lend you–because you wouldn’t ask them if they didn’t–they aren’t likely to see the investment opportunity, they see you. YOU.

My friends and family saw me as a punk kid with a wild dream. They told me to stay in school and keep my job at the grocery store so I could one day be an assistant manager if I tried hard enough. And, looking back, I don’t blame them. But, once I proved myself as a viable investment by putting deals together that created consistent income, their wallets wiggled open. For me, this took years of turmoil. I got on the phone and raised capital through hours of networking, I trail-and-errored my way up until I found mentors to teach me what not to do.

Now, I send a single email, and I’m flooded with positive responses. I’ve done deals with my friends and family during my career, and I’ve been able to show them the higher return on their money real estate can bring. I spent time proving that I have a business model that makes sound financial sense, and you should, too.

Get a few deals under your belt, show your family before and after photos and copies of your profit checks.

But how do you find money in the meantime?


The Best Ways to Find OPM

– Networking with Strangers. This method is great because it forces you out into the world of your “competitors.” Most people are afraid to rub elbows with their competitors, but I’ve never understood that. You shouldn’t view other people in this business as opponents; you should consider them as potential capital partners. You should be building relationships with fellow investors through your networking events if you’re following my Rule of 56. I don’t ask you to meet new people just to expand your circle of friends. We’re networking for potential partnerships, among other things, so take advantage. Real estate investment seminars are a great place to network with strangers, as are foreclosure auctions.


If you haven’t attended one of our events, I encourage you to make it a priority in 2018. We put great people together in our event rooms, so you have the opportunity to network together. When you find a great deal, you can call up one of these peers.

Visit Fundingtour.com for more!


– LinkedIn can be a great way to network and find equity partners and private investors. I never advice spending too much time on social media–as it can be one of the worst time-sucking holes we fall into–but when you know how to use LinkedIn, Facebook, and other social media platforms to meet fellow investors, you have the potential of building valuable, wealth-building partnerships.

– Private Money Lenders like Cogo Capital. One of the reasons we see new investors visiting our website daily is that we have something valuable to offer: a safe and secure investment. Our investors deploy money for short periods of time and get a check every month from the borrower. Everything is underwritten, in order, and the title work is done for them. With a turnkey package ready to go, our lenders love this! And in turn, our borrowers find the capital they need to do the work that will make them wealthy. Remember that when you’re out there finding great deals, you are bringing significant value to anyone who has more money than time. (Sounds a lot better than getting on the phone with all your friends to round up some money, doesn’t it?)


What We Do with OPM

There are two things you can bring to a partnership: Money or Time. If you have both, you don’t need a partner. If you don’t have the money, guess what your end of the bargain is? Time. You need to put in the time to research, pull lists, write letters, make calls, meet with sellers, write contracts, and put the deal together.

Once you have a deal all wrapped in a bow (the bow is entirely optional), you have something tangible to offer a lender. When you bring a deal to the table, a lender looks at the DEAL that you have under contract and not at YOU (with whatever past you have tucked in your back pocket). In fact, private money lenders like Cogo Capital don’t pre-qualify you based on YOU. We are an asset-based lender who has lent millions and has more money to deploy than you’ll ever need, and we deploy that money based on the opportunity you bring us.


When you take yourself out of the equation and get really good at getting great deals under contract, finding OPM isn’t going to be a problem. Prove yourself first if you eventually want to use money from your friends and family. Or, better yet, get to a place where you don’t ever need money from your friends and family and lend to them instead.

If you believe you have a great deal, visit us at https://cogocapital.com to fill out a brief questionnaire. You’ll receive a quote via email, or call us at (800) 747-1104. We’re here to lend you OPM. It’s what we excel at.

Yours In 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!

For our latest success stories, click HERE to read how others are finding, funding, and making money on their deals.

My Secret, Exposed

- - Borrowing, Flipping

 

Want to know a secret? Something that’s resulted in putting together more deals than I can count?

 

I have a client in San Francisco who I worked with back in April 2012. I’d been working with my client since the November of the previous year, teaching him how to find, work, and secure leads by using the Rule of 56. While in California visiting, my client told me he had a beautiful home (that’s code for completely trashed) in a nice neighborhood that he had gone “out of his way” to track down the owner.

So, I ask him what he’d done to find the owner. He said he went to Craigslist, searched on Google, tried People Finders, and even paid to $25 for a report. He’d contacted the owner’s nephews, nieces, cousins, and nobody knew where this guy was!

Clearly, at this point, I’m intrigued. So, while I’m out there doing business, I ask my client to show me the property.

He took me out to the property near UC Berkeley, behind the beautiful Clarion Hotel. This property sits right below the Clarion. The piece of land the house sits on is worth a million alone. Fix up the house, and the property value was $1.5 million without blinking an eye. And this was back when Facebook, just 20 minutes away, was turning out thousands of millionaires in the bay area via the IPO.

To get to the front of the house, we literally walked over trash, tumbleweeds, boards, and piles of garbage. Under it all, I could sort of see a house, but it was quite a trek to get there.

Now, I did something at that moment that if you will employ this one strategy into your business, you will make more money than you could possibly imagine.

This is my secret, but I’ll share it with you. I need you to pay attention and write this down.

Are you ready for it?

Here it is.

I knocked on the door.

It opened. “Can I help you?”

“Good evening, Sir,” I said. “My name is Lee Arnold. We’re real estate investors who love this neighborhood, and we’re looking to buy property in the area, and I’m curious if you knew of anyone willing to sell.”

What do you suppose he said?

“Well, I might be willing to sell,” he said.

Really?! Shocking, right? I mean, this guy had a proverbial billboard in front of his property saying, “I hate this home, come buy it from me.” No one trashes a house they love. (I wasn’t surprised by his answer, in case my sarcasm didn’t properly translate.)

So, my client continues to go back to this property, building a relationship with the owner. A few weeks later, he sends me a message stating that he has another appointment with the homeowner. So, I told him, “Do not leave that house without getting a signed offer.”

“But,” my client protested, “he hasn’t accepted an offer I’ve made him.”

I told him it didn’t matter and to print off a purchase and sales agreement with his name on it and the homeowner’s name on it, and to GO!

So, he went.


If you haven’t read my article about never leaving a property without making an offer, CLICK HERE.


Then, I got an email from my client later that day saying the man accepted the offer and signed the agreement.

“Great!” I said. “What’s the price?”

Want to guess what my client paid for that $1.5 million property?

$525,000.

All because my client followed the Rule of 56, created leads, and then followed up with them until he got an offer accepted.

I cannot tell you how many clients I have through the Lee Arnold System of Real Estate who spend all this money and energy producing and creating leads, and then they don’t mail, they don’t call, they don’t follow up, and they don’t write offers. Then, they wonder why they’re not succeeding.

It’s not too difficult.


If we sat down together and I asked just three questions, I could find out the status of your business.

  1. How often are you mailing?
  2. How often are you calling?
  3. How many offers have you written?

If you’d like to have a six-figure business in the next twelve months, all you have to do is follow this simple rule. To read more about what the Rule of 56 is and how to use it in your business, CLICK HERE.

Do you want to have a good problem to have? Be UNABLE to call all your leads because you have too many. But, until you’re overflowing with people wanting to sell you their house, you need to follow this simple formula to success. Then, once you have your pick of the deals, where do you go to get them funded? (I’ll help you out; the question is rhetorical).

If you’re ready to start working with private money lender that puts you first,  COGO Capital, call us at (800) 473-6051 to discuss your deal or go to CogoCapital.com to receive a rate quote. For our latest success stories, click HERE and HERE to read how others are finding, funding, and making money on their deals.

We can teach you what to say in your letters to yield results.

We can instruct you on what to say on your phone calls.

We can help you find events.

We can show you how to make offers.

Let us help. Call 800-533-1622 to talk to a business developer or attend an upcoming Funding Tour to learn how to solve the riddle of your journey to 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!

4 Steps to Securing a Contract

- - Borrowing

 

Pop quiz!

You’ve found the perfect distressed house to invest in. The owner wants to sell it to you for low enough that after you put the estimated cost of repair in it, there’s plenty of room for profit. What do you do now?

a) Shop for funding.

b) Start a bidding war between lenders.

c) Start demo, the house is as good as yours!

d) Put the property under contract.

It might seem ridiculous when you look at it in multiple choice, but the problem is less than silly because people the wrong choice every day. In fact, this misunderstanding is so common that we have to talk about it again. (Yes, we’ve talked about it before.)

The first and most important part of securing private money is getting a property under contract. The biggest mistake you can make in funding your deals is shopping too early for the money, yet we see it all the time.

As a private money lender, we see this scenario often:

An investor comes to us, excited about an incredible they found. They’ve learned all about the property and are on the hunt for cash. They may know the cash flow possibilities, the prospects of the property, and have done their due diligence, but they are missing the most important element to get the funding channels flowing; they haven’t secured the deal yet.

Without putting the property under contract, they have nothing to go on. No lender worth their salt will entertain the application process on a property that isn’t under contract. Why? Because as long as the property isn’t under contract, it’s up for grabs by anyone and everyone, and any time spend on that property is wasted if the house is snatched up by someone whose priority is getting it under contract.

Then, the once-excited investor is disappointed—dead in the water from the very start—and often gives up trying.

Don’t let this happen to you!

Getting a house under contract is easy with four simple steps.

  • 1. Prospect and review potential properties
  • 2. Write offers
  • 3. Get offers accepted by the seller
  • 4. Put earnest money in escrow to complete the contract.

Once you’ve completed these four steps, you have a fully executed purchase of sale agreement, the property is under contract, and you are READY to shop for cash.

Getting the cash is usually the easiest part. We shepherd you through the loan process and find the lender for you without application fee.  Each successful loan you do with us builds your reputational capital. Once you’ve done one successful deal with us, the next one is even easier and each one after that feel like a piece of cake.

We’re looking forward to working with you on your next loan. Get that property under contract and get ahold of us so we can help accelerate your real estate investment success!

Have a deal under contract? 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!

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

Follow me on Twitter: @CogoCapital  and @LeeArnoldSystem 

For our latest success stories, click HERE to read how others are finding, funding, and making money on their deals.

A Faster and Better Loan Process

- - Borrowing

As a full-service Private Money lender for real estate investors, we do most of the leg-work for you. While you build your real estate portfolio, we fund your deals fast. 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.

Private money lenders like COGO Capital are just as interested in working with you as you are in working with us! It’s a real estate investor’s symbiotic relationship where both sides stand to gain something from every deal.

In return for interest on our investment, we are entirely capable of bringing speed and efficiency to every transaction. In turn, your leverage with the homeowner increases when you offer to purchase a property with private-cash funds.

We’re here to serve you with excellent rates and unbeatable terms.

BUT…we can all work to make this process a little smoother and a faster.

If you’re working on a loan that you want to be done quickly and correctly, you’ve come to the right place. Now, let’s maximize your contribution with some carefully placed sweat-equity in the process.


Top things you can do to assure a more expedient loan process:

– Have your documentation ready and return it promptly.

– Watch for emails and communication when we need your signature. It happens all too often that a loan is held up because of one needed DocuSign signature that sits in your inbox for a week.

– A loan can be stopped or slowed down during processing when the borrower doesn’t look at the Needs Lists. When a loan officer sends out a specific form that needs to be taken care of, act quickly.

– Talk to us. A lot of people feel they can complete a file without asking questions, but it’s usually faster to ask and get it right than send in the wrong information. You can always call us at (800) 473-6051 to clear up any inquiries or to get support.


Together, we can build a smooth process and a quality experience that will make you money over-and-over again!

Are you ready to start working with private money lender that puts you first? If you are interested in a loan from COGO Capital, call us at (800) 473-6051 to discuss your deal or go to CogoCapital.com to receive a rate quote. For our latest success stories, click HERE and HERE to read how others are finding, funding, and making money on their deals.

We look forward to funding your real estate 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!

Why Use Private Money?

- - Borrowing

Welcome to the home of the most creative financing solution available for today’s real estate investor!

What gives us these bragging rights? We evaluate loans based on the assent and not the borrower, making finding capital the easiest part of any real estate transaction. Regardless of your past, if you find a good deal, we want to fund it.

With all the options out there today for financing, you may feel lost and perplexed as to why private financing is a good solution for your real estate needs, so let’s do a deep dive into some reasons you can’t argue.

We can put these into 2 categories; reasons why YOU, the borrower, might want to fund a deal with private money and the reasons why your property wants to be funded by us.

The borrower’s reasons:

  • You need (or want) a quick close
  • You need funds for a short period of time
  • You have weak credit or income documentation

The Property reasons:

  • It needs work
  • It isn’t fundable through conventional financing
  • It has weak income potential in its current state

With the mandates against banks through FDIC–as well as all the other hoops the banks have to jump through–about 50 percent of the properties in the country will never qualify for conventional financing. Because of this, there will always be a place for private money.

Through the recessionary downturns and the tumultuous market, there has never been a situation where we were not lending. That’s the kind of industry that I can get behind. Even though there’s volatility, there’s always opportunity. That’s why I love real estate and mortgage and debt finance.

There are several main differences between conventional/bank finance and private money financing.

I don’t have to tell you this; the time it takes to close with banks is long. For private lenders, of course, we know that there’s commonly a short closing time.

With banks, the borrower needs a healthy credit score, solid credit reading, and strong financial statement. Private lenders don’t care as much if your credit is weak or you don’t have any credit. We ask for a strong asset–a good deal.

Banks, as it relates to the property, need a strong history with an income property. They want the property to be sound, saleable, and in a decent location. Private lenders, however, can accept weak income on property knowing that it probably needs repair. Private money knows that through an investment of capital, you, the competent rehabber, can take that property from where it is and eventually make it qualify for conventional financing.


Most people reading this already know how powerful a tool private money can be. You don’t need me to tell you how beneficial it is to have a private money lender on your side. But, you do need me to remind you that getting the funding you need is not the most important thing. Funding is second, EASY.

Finding the DEAL is where your project starts and getting a property at a good price is how you make a profit. Once you have a good deal, the money will follow, so stop stressing about the money first!

Think you have a good deal? Call us about it! (800) 747-1104. If it’s a good deal, the funding will be easy. And don’t worry, our team won’t let you get into a bad deal because we want to see you make money. If the deal you’re after doesn’t make sense, we’ll tell you.

We have several COGO tools for you to use while you search for that good deal. Check out our Proof of Funds letter (READ MORE HERE), or attend a FUNDING TOUR and receive a $250,000 pre-approval letter for buying real estate investments.

Whatever your reason for needing private money, we want to be your GO-TO lender. Gives us a call and we’ll prove why. (800) 747-1104.

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!

The Art of REOs

- - Borrowing

We’ve talked about Equity Deals and Attending Foreclosure Auctions. But what happens if no one bids on a property at auction and how can you benefit? If you’re unfamiliar with the process, listen up! This alternative property acquiring technique is not only a viable option (especially to those without cash to purchase homes), but thousands of people just like yourself obtain properties this way every year.

What happens to an unsold house?

When an auction house has not sold, ownership of the property transfers to the foreclosing lien holder. When the principal owed, interest accrued, foreclosure fees, and other expenses total more than the value of the property, there is no equity to attract third party bidders. So, the property reverts to the lender for the opening bid amount. At this point, the bank now owns the property and the mortgage that was in default no longer exists.

This property is now referred to as a REO or Real Estate Owned property.

What bank does to it?

Most of the time, the bank handles the eviction of any tenants or homeowners lingering in the property. This saves you a tremendous amount of time and energy. They’ll usually take care of some needed repairs—anything that poses an immediate danger or threat to the property’s condition such as missing exterior doors, unsafe wiring, or winterizing the property should to stay vacant. They’re not going to sink any more money into a house than needed. And why would they? They’re likely taking a loss on the property.

The house is now sold “as is,” with the condition of the property already in mind.

Other benefits

With the bank expunging any second or third liens on the property by this time, you’re looking at a clearly cheaper piece of property than if you’d worked directly with the owner.

Another upside to buying REOs is the ability to look at the property before purchasing it; a luxury not often awarded when buying at auction. You’ll also be able to have the property fully inspected to determine the estimated cost of repairs to bring the house up to full market value.

Not only are you paying below market value for one of these properties, there never seems to be a shortage of inventory.

REOs are not always made available to the public. Banks generally like to make these properties available to investors. Although they prefer to bundle them and unload a big batch at a time to million-dollar investors, you can take advantage on a single property basis.

As an added benefit, you can often save money by using the same title company that the lender used during foreclosure.

Where to Find Them

First the obvious; pick up the phone and call the bank. Because banks don’t want the properties (they want the money), they normally have entire departments that handle foreclosures and REOs. You can contact the REO or Asset Management department of the bank or mortgage company for information on available properties.

Network with real estate professionals. (How many networking events have you attended this month? Was it at least 4?)

Contact a local real estate agent, preferably one with experience working with REOs who can supply you with a list of primary lenders. If you need help finding an agent, check out my guide HERE.

When in doubt, go online. Any search engine will produce a multitude of leads for you to wade through. Type in “foreclosures” or “bank owned properties” with your target town and state. Just set aside some time; you may have to do a little digging.

Another way to find REOs is to track a property you’re interested in from the day the first. You can contact the individual conducting the sale to follow up on the status of the property. It can be more profitable for you to purchase a property after it goes unpurchased at a foreclosure auction, especially with consideration to any other liens, interest, or fees the bank has now cleared.

How to make an offer

Some buyers misunderstand the bank’s motives, thinking that banks are in a hurry to sell these properties, but that isn’t true. The bank has the money, they’re not paying interest on the property and don’t have holding costs associated with it. They aren’t in a rush, so never assume they are motivated when you make an offer.

Still, make sure to run proper inspections to understand what you’re offering on. Check all major factors: the condition of the roof, foundation, plumbing, electric, insect problems. Like any property you purchase, you’re not only offering on the property, you’re inheriting all its problems. Although the bank is not likely to discount the property greatly—understanding they are selling it “as is”—you can still factor these into your offer.

Your offer should include inspection contingency time frames that allow you to cancel the offer if your inspections uncover unacceptable damages.

Once you make an offer, they are likely to counter. Often, they do this to show their shareholders and auditors that they’re doing their part to get the best possible price. Don’t be afraid to counter back.

With your offer, always include a pre-approval letter from your lender to make your offer as attractive as possible. Don’t have a pre-approval letter? No problem. We can help you with that. In fact, if you attend a Funding Tour we will give you a pre-approval letter for up to $250,000. Not a bad deal considering the valuable education you’ll receive and the valuable, hands-on experience we’ll pass to you! For details, visit fundingtour.com or call us at 800-533-1622 to secure your spot.

Now what?

Be patient and consistent! 

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!

Finding Remote Deal

- - Borrowing

Maybe you live in the best market available, with potential deals down every street. This guide is not for you (unless you want it to be). Finding a deal in your own back yard is the best way to go, in my opinion. To read more on why CLICK HERE.

But not everyone has the greatest opportunities in their zip code, and that shouldn’t stop you from putting good deals together.

You can find great properties all over the country.


Where Should You Look?

With 50 states, one of which you occupy, it’s impossible to say what would be best for YOU. Is there a hot market you’ve repetitively heard of? Do you have a friend or colleague who brags about the abundance of distressed properties where they live that are getting flipped all the time and selling like hot cakes? Is there an area where you could purchase a house and wholesale it fast?

How Can You Find the Properties?  

How do you get your feet on the ground in another area without being there?

  1. Call a Friend. This also helps narrow down your field of search because you can only call those areas where you have connections. Try a cousin, a friend-of-a-friend, or even connect with a member of a REI group in that town and make a new friend. Use caution: results may vary depending on the motives of those with whom you work.
  2. Use Craigslist and other online platforms (like WeGoLook.com). Not only can you get a glimpse into what other people are listing in your desired areas by checking Craigslist, but you can also hire people to do some ground work. Hop on Craigslist in your chosen location and write up an ad saying that you’re looking for people to drive by properties, take photos, and communicate thoroughly. You can pay by lead or by the hour. Sure, you’ll probably get some seedy people who reply to the ad, but once you weed them out and with a little instruction (Check out this guide on Driving for Dollars), you’ll have someone (or multiple someones) on the ground, bird dogging areas for you.

What Mistakes Can You Avoid?

First, just like any deal, you need to do your research. You should understand the area you’re searching, the neighborhoods that sell fast and which to avoid. Don’t jump into a new market without first researching it.

Along the same lines, you should understand the laws and regulations in each state. At the very least, grab a mentor or coach to step you through what is needed in each step of the process to avoid long-distance mistakes that can cost you big bucks.

Don’t spread yourself too thin searching in so many areas that you can’t keep your finger on the pulse of your region. If you’ve never searched for a deal outside of your town and you’re interested in trying it, start with an area within a day’s drive. Then you can spread your wings further away or out of state.


Finding, wholesaling and even flipping properties from a distance is a bold move. It takes time, research, and know-how. But, it can also mean high profit if done right. If you’re interested, why not try this tactic. Next time there is a Funding Tour outside of your area—a 3-day training where we teach you how to acquire a deal and how to fund it—get out of your area and attend. We go out into that town and tour local real estate deals. What better way to dip your toe in another area than to do so with a professional team!

If you’re interested in attending a Funding Tour, either in your area or somewhere new, CLICK HERE or call us at 800-533-1622. In fact, we believe so strongly that this is the education you need to start with that we will give you a $250,000 pre-approval letter simply by attending.

We’ll see you there!

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!

 

Not as Seen on TV: a Guide to Foreclosure Auctions

Even if you are new to real estate investing, you likely know what a home auction is. You’ve probably even seen one on a TV show where people buy a house, and after thirty minutes of airtime have completely renovated and sold a home. Just as the shows can give an inaccurate representation of the rehab process, they can poorly portray an auction, too.

Foreclosure auctions are a viable way to purchase a hot deal with a healthy profit margin, but let’s clear up some misunderstandings.

If you’ve never been to a home auction, I recommend putting one on your calendar to attend. If you live in or near a city, you won’t have to look hard to find one. They usually take place weekly, if not daily in some areas, and are highly educational.

But, what if you aren’t in a position to buy a home at auction yet? Should you still attend?

Absolutely. And if you can, go with someone who will be purchasing a property to see how they do it. I don’t recommend going in blind, however. Here are 6 things you need to know about real estate foreclosure auctions before you attend.


1. You need cash to bid.

If you attend an auction and plan to buy a property, you need to make sure either you or a partner has the money to place a bid or make a purchase. Very few online and TV advertised auctions have available financing.

If you don’t have cash, should this stop you from attending? No! An auction is an excellent place to network. You see that guy over there that just purchased a house for $80,000? Let’s say you’ve run the numbers on the property and the MOA (maximum allowed offer, or bid in this case) is closer to $100,000 to allow enough profit after repairs. Go over to that guy with a business card and make him an offer!

If you say, “Hi there, I’m a real estate investor, too. You just purchased that property for $80,000. How would you like to sell it to me right now for $85,000?” What do you think he’ll say? With a little paperwork and almost no time invested, he’s just made $5,000 (unless he’s smart enough to counter), and you just got a house that you can finance with private money.

I tell people to do this to me at auctions all the time, and they rarely do. It blows my mind! Take the opportunity.

2. Anyone is allowed to bid at auctions.

Some foreclosure auctions require a bidder’s fee of a minimum amount (i.e. $10,000) to prove you have money. You may have to arrive at an auction with a cashier’s check made out to yourself to prove you have money. If you win the bid, you have to sign over your cashier’s check and the remainder of the amount by the close of the next business day. The deed will come in the mail 2-3 weeks later.

(Check the individual rules for each state and each auction as they vary. This is an example.)

Do your research on what the auction requires and be prepared.

3. Always know what lien you’re bidding on.

A property lien is “a legal claim on a tract of real estate granting the holder a specified amount of money upon the sale of the property. Such liens are often used to ensure the payment of a debt, with the property acting as collateral against the amount owed. A mortgage is the best example of a property lien.” (Definition according to Investopedia.)

Have you ever been to an auction where a “property” goes for as little as a few thousand dollars? There are markets where this happens, but the more likely reason is the bid is actually on a second or third lien against the property.

There’s money to be made in having a second or third lien position, but this can be an incredibly costly mistake if you don’t know what you’re doing. You do not want to inherit all the other liens on top of your bid if you can’t afford to buy them and the numbers don’t make sense for you to finance it.

Let’s say you purchase a 2nd lien and inherit the first lien, which is of a substantial amount. You would need to pay that loan off, too, including any past due interest and foreclosure fees and any past due property taxes. The first lien could still foreclose on the property if the loan is not paid off on time to stop the sale. If the first is foreclosed, then anyone who purchased the 2nd could then be wiped out.

Know what lien you’re bidding on by doing your research first. If you want to attempt bidding on a 2nd lien because the property is oh so tempting, know what you’re doing first. In fact, I recommend having an expert on your side. Let us know if you need help with that! Call us at 800-533-1622.

4. Research the properties.

Before attending an auction, drive by the ones you’re interested in to get a good look at them and their context. Make sure you check the property condition and neighborhood. Check whether the property is vacant or occupied. Is it located on a major street or intersection? Kick the tires here, walk the perimeter, do your due diligence. It’s worth the small investment of time to make sure you’re not bidding on something that could sink you.

Also, find out whatever you can about the property. Knock on a neighbor’s door and ask a few questions. Pull the numbers on the property and the comps in the area. Arm yourself with as much knowledge as possible before you put your money where your mouth is.

5. Pay attention to “Redemption Rights.”

Check the laws in your state. Some states allow a homeowner to buy back the property within a period of time if they’ve lost it to foreclosure. You’ll want to be aware of this before you spend money on a property that isn’t yours yet.

6. Secure the property.

Once you own a property purchased at auction, and you are clear of any “Redemption Rights,” move quickly to secure the property. If the property is occupied, call your real estate attorney to start processing an eviction. Call your general contractor to discuss the work and estimates. Start changing locks, boarding up windows and cleaning up. Do a walk through to assess what needs to be repaired and build a budget. Don’t sit on a property, push forward ASAP. Time is money, especially if you have any amount of financing on the property.

Would you like the chance to attend an action with me? Call 800-533-1622 to learn about attending my Inner Circle where you can even attend an auction with me, and get the inside scoop.


2 Bonus Benefits of Attending Foreclosure Auctions:

1. Networking.

Even if you don’t approach a bid winner and offer to purchase their newly awarded property, you can still visit with a stack of business cards and network with people. This is an excellent way to meet people that you may someday wholesale a home to or purchase a house from one day.

2. Staying aware.

Not only do you keep an eye on other investors in your area (what they’re doing, who they’re working with, who you can work alongside), but you gain a consistent feed of information. You can find out which neighborhoods are consistently repeated at the auction (and are worth driving though) and at what amounts others are purchasing properties for.


Like anything else, you want to prepare yourself before you start spending money. If you aren’t “there” yet, let us help you. Have you attended a Funding Tour to learn the basics and tour houses that need to be rehabbed? Have you worked with a coach to understand what you’re fully capable of and how to take the next steps toward success?

Remember my motto, “We get more of what we want by helping you get more of what you want.”

What do you want and how can we help?

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!

#1 Proof of Funds Mistake

If you’re crunching the numbers, making consistent offers that are at your MAO (maximum allowed offer), and you’re coming up bust, you may be making the #1 mistake with your Proof of Funds Letter.

But before I tell you what the #1 mistake is, let’s talk about rejection. Having your offer rejected is common. In fact, if your offers aren’t getting declined consistently, you aren’t making enough offers! Remember how we talked about making an offer on every single place you look at? (READ MORE HERE!) Even if your offers are strong, you’re still going to have some dismissed.

It’s a numbers game, and it’s all a part of real estate investing.

First, look at how many offers you are making every week. Is it enough to sway the numbers in your favor?

Good. Now, why aren’t you having more of your offers accepted?

You can greatly increase your chances of having your offers accepted or countered with one little thing, and I guarantee you aren’t all doing it.

The #1 mistake people make with a Proof of Funds letter is not using one!

The seller wants to know if you have:
a. Cash
b. Financing

If you don’t have a briefcase full of cash to hand over (okay, that’s not how it works, but it might as well be for the majority who don’t have the funds), then showing that you have financing is your next best level of support to your offer. But you don’t get financing first, you find the deal first. (READ HERE FOR MORE.)

Catch 22?

Nope.

The bridge between having proof of the funds before you have the funds (because you have to find the deal first) is the Proof of Funds letter. It’s an easy solution, and thousands of people use it to support their offers and gain traction in acquiring more houses.

What is it?

Before an agent agrees to work with you, they often require a Proof of Funds letters. And many times, a Proof of Funds letter is required along with a purchase offer contract in real estate transactions.

In short, a Proof of Funds letter gives you, the investor, verification to provide to the seller of a property that you have the funds available and ready to use toward the purchase. You can provide this letter to the necessary parties involved in your real estate transactions, proving that you have access to the funds to buy the property.

Why does it matter?

Some buyers will argue that a Proof of Funds is unnecessary or unimportant. Some (especially those doing well for themselves) may even see it as insulting.

Don’t take it personally. It’s a good business practice. It can set your offer above the others, make it more enticing for the seller, and give you a leg up on the competition.

This letter shows that you are capable of affording a large-scale purchase, such as a house. The document is relevant to the seller and anyone else involved in the deal. It’s easy to obtain and increases your chances of having an offer accepted.

If you have a proof of funds letter, use it. It’s an easy mistake to avoid!

If you don’t, how do you get one?

That’s the best part! Cogo Capital® makes it incredibly easy to generate a Proof of Funds letter to provide to real estate agents or other interested parties.

Visit https://cogocapital.com/lp/home/get-a-proof-of-funds-letter/

Need one that’s greater than the dollar amount available online or have questions about restrictions? Call COGO Capital at 800-747-1104 for more information.

If you’re ready to kick it up a notch, join us for a FUNDING TOUR and we’ll provide you with a $250,000 pre-approval letter to support your next transaction. (A pre-approval letter provides documentation of exactly how much you have been approved to borrow.) For more information on what a FUNDING TOUR is and why I believe so strongly that you should attend that I’ll pay for your $497 seat, visit fundingtour.com or call 800-533-1622.

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.