To the new real estate investor going out and making your first deal can be a very scary event. Although making mistakes are just part of the game, none of us wants to make a mistake that costs us lots of our hard earned money. However, learning from other real estate investor’s mistakes can help you go a long way in your real estate investing career. In this 3 part series I will show you 7 deadly real estate investing mistakes to avoid.

1. Never buy a negative cash flow property. I know this sounds like a no-brainer, but there are those out there “helping” new real estate investors get into properties with such incentives as no money down, seller pays down payment, seller pays for first 8 months negative rent, and seller pays closing costs, etc. However, once you sign the papers, you are now responsible for any short fall, and if it takes you 4 months to find that first renter, then your stuck making up the rest of the payments. There were those who touted this “strategy” speculating that real estate always increases over time and that will make up the any differences in the end. Don’t fall for it! Never buy a negative cash flow property no matter what the so-called benefits.

2. Never use your own Home Equity Line of Credit to purchase real estate. You are putting your own house at risk. Always get a hard money or private money loan for fix and flips and a regular loan for cash flow properties. These days many banks require 20% down payment. So, if you are buying a $150,000 house, that means you need $30,000 just for the down payment. You’re probably thinking, where am I going to get that kind of money? Well, one way is getting a hard money loan to initially buy and fix the property and then getting a regular fixed rate loan using the equity of the property as your down payment. There are other methods, but this is just one example.

3. Never buy the first deal you find. The first deal is very, very rarely a great deal. Sometimes you might find something that looks great on the first look, but do your due diligence to make sure of any potential issues. Remember, there will always be other deals out there. Just have some patience and have some fun. There’s a 100-10-1 rule that I have heard a few times in my circle of real estate investing… Look at 100 properties to make 10 offers to get one accepted.

The rest of the 7 deadly real estate investing mistakes will be found in Part II and Part III which will be posted in the near future.

Mark has developed a program that will take you to the next level. It is a Simpleology business coaching. As he describes “I’ve been reluctant to do this for many reasons… mainly because most of the ‘coaching’ we see in the world isn’t quite up to my standards. The key difference in what we’re doing is a uniquely powerful methodology that I’ve been secretly developing. This business coaching program will be based around this new – dare I say revolutionary, I’ll let you be the judge – methodology and will be rapidly and profoundly effective.”

Mark’s student, Tellman Knudson said, “I’ve made a lot more money because of the simple things that Mark has taught me”.

He’s basically handing you, on a silver platter, the steps you can take to get paid $6K to $30K upfront on nearly every deal, on the day you buy “better than no money down.”

We just can’t believe he’s giving it away. This stuff is pure gold and we’re sure there’ll be some real estate investing gurus who are angry at him. But, hey what can you do? It’s your gain for sure.

As you watch this video, we’d like you to listen closely as Richard demonstrates exactly how to get 0% real estate funding, how to create huge monthly cash flows and how to get yourself completely debt free… fast.

But to get these insider secrets to this free and clear investing, you’ve got to go see what we’re talking about before he takes all three training videos down on July 3, 2009.

It’s like you’re creating your own ATM machine when you use the free and clear investing tactics Richard is sharing.

Sorry the site was closed on July 3, 2009. However, for other FREE Training with Richard Roop click here.

And that’s just the tip of the iceberg because in the second video he shows you how to raise all the cash you need to fund free and clear, cash cow deals with none of your own money, without visiting a bank, and you don’t even have to qualify for anything. If only we had started that way.

If you want to get ahead of the trend you’ll want to study this video. You’ll discover the ins and outs of raising money so you can immediately begin making profitable deals. And Richard really makes it easy.

In today’s real estate market you’ve really only got two options. Go to a financial institution and beg for the money or follow the steps that Richard is laying out for you.

Closed on July 3, 2009

The first video teaches you how to find the names and mailing addresses of homeowners with 100% free and clear houses, then how to download these free seller leads in just minutes.

Targeting sellers with equity rich properties is ideal today since it allows you to collect $6,000.00 or more in cash on the day you buy and then makes it easier to create a positive cash flow on any property.

That’s right… you can create huge checks upfront, without even selling the property.

This first video is already posted, but unfortunately it closed on July 3, 2009.

In that video, Richard also reveals how to systematically mail a simple, personalized postcard to these new leads, again within minutes, all online. In fact, this is a step-by-step demo of one of his most effective marketing methods he’s used for many years.

This isn’t one of those two minute videos with just enough information to get your mouth watering, then leaving you hanging for more. In fact, this video is full of actionable steps you can take right now to begin generating cash profits, even in a down market.

By the way, the only other time Richard has demonstrated these insider secrets has been at his high priced, multi-day intensive training events. Whether you’re a seasoned investor or just getting started, this video will show you how to kick things up to the next level.

Method one for real estate investing is to purchase a list of pre-foreclosure homes from a listing service.  Here are just four such services: Foreclosure.com, RealtyTrac, Default Research, and ForclosureS.com.  However, one of the drawbacks to a listing service is the cost.  Also, be aware that some services have more recent information than others.

Another method to get a real estate investing deal would be to look into the classified ads section of major Newspapers.  Their classified sections are on the web. You want to search the ads to find words such as “divorce”, “desperate”, “must sell” or “estate sale” to name just a few examples of keywords that indicate the seller is desperate.  Think of some on your own and have fun with it.

Another method would be to send Postcards and fliers to targeted homes.  However, it is highly advisable that you find someone who can do what is called good copywriting.  Good copywriting is combining words, fonts, phrases, pictures, a call-to-action, etc. that will compel your potential home buyers to call your number.  Make sure you do this type of marketing correctly, otherwise you will be wasting your hard earned money.

Method number four for is the use of bandit signs.  A bandit sign is a small sign that is posted near major streets with a simple phrase to let home owners know that you buy houses quickly. Don’t forget to have your phone number listed in large letters, so distressed owners know who to call.  Just be aware that in many places bandit signs are not allowed.

Another method that is more obvious is to look for a real estate investing deal is the MLS (Multiple Listing Service), however, you must be a licensed real estate agent in order to gain access to the MLS database.  A word about the MLS, I know some real estate investors who swear by it and I know others who say it’s not worth your time.  Who’s correct?  Well, believe it or not, both are right.  If you are a licensed agent who can jump on a property that is a good deal when it is put on MLS, you have a good chance to finds deals, otherwise, it will be more difficult.

Method six is to enlist the help of a realtor.  If you don’t know anyone who is a realtor, you can find those who work with real estate investors, just by going to realtor.com.  You will need to find a realtor who is willing to work with you and to email you a listing with your criteria.  What sort of criteria do you use to search for a property?  Again look for words like “divorce”, “desperate”, “must sell”, “condemned”, “gutted”, “mold” and any other word that would be undesirable for regular buyers, but a potential deal for a real estate investor.

Finally, there is another method that is simple, yet very effective.  Get your deal through what is called a wholesaler.  A wholesaler is one who controls or purchases a property at a deep discount and passes the savings on to you, the real estate investor.  They typically send the deal right to your email box where you can read about the deal, do your due diligence and then make an offer.

So, as you can see there are various methods that you can use to find your deals.  You may be wondering, for effective real estate investing, how may deals does it take before an offer is accepted?  Well, I know many who say there is a 100-10-1 rule.  It says it takes looking at 100 deals to make 10 offers to get one accepted.  Choose a method or better yet, a set of methods that works for you and your budget and your real estate investing.

Click Here for the answer.

Patrick went undercover to discover the real “truth” behind how deals are REALLY getting done in this market.  The answer may shock you.  Patrick used the funding strategy you’re about to learn to raise over $6 million dollars to buy, flip, hold, and sell over 100+ Real Estate investments.

A loan modification is just changing one or more of the terms of your loan contract.  Although a loan modification can be done when you are up to date on your payments, it is much more difficult, than when you are behind on your payments and want to stop foreclosure.

Since we have all been in the process of qualifying and obtaining a mortgage, then we all know the basic information that is going to be required by the lender.  Basically you’ll need your financials, such as pay stubs, bank statements and the most recent year’s taxes.  But before, gathering up all that information, call the lender and get pre-approval.  The pre-approval process is just the lender’s way of making sure you can’t meet the current payments, but could meet them if the loan was modified.

Notice I haven’t mentioned using a third party vendor for this process.  I have heard there are companies out there that say they will help with your loan modification, but all they do is take your up front money and don’t get the modification.  However, I have not researched this topic enough to know for sure.  I have even seen signs in my neighborhood for loan modification companies that charge about $1500-$2000.  So, all I can say about this is, like when you purchase a real estate investment property, do your due diligence!

Remember to always take action, and always follow up with the lender, when doing a loan modification.  Staying on their case is going to get you help you avoid foreclosure and get you much closer to approval.

Good Luck and happy hunting!

We want to support you in building your own profitable real estate portfolio while achieving true financial independence! We are dedicated to bringing quality training and information products to people who want to invest in the real estate industry. We will do this by providing information on well researched experts and services from industry leaders from all over the globe to homes of entrepreneurs like yourself.

We are currently using a marketing system that allows us to find some of the very best ‘below market’ deals in the country. Fortunately (for you), we just don’t have time to renovate and rehab all of these great deals ourselves. If you’re an investor (or if you want to be one) and are looking for simple, high profit deals enter your information below now!

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