Getting Started in Real Estate Day Trading

Real estate day trading is using the Internet to buy and sell houses without leaving home. In many cases, the investor closes on a house and resells it the same day. Readers will learn the author′s system for how to buy and sell 5–10 houses a month in today′s market, using the Internet, phone, fax, and email to analyze, research, and find the properties, buyers, and others needed for the transaction. Author Larry Goins has personally done deals in nine different states and has students in the US, Canada, Australia, New Zealand, Japan, China, Israel, the Philippines, and Denmark. Day trading can be used for wholesaling properties to other investors, retailing, lease options, short sales, foreclosure investing, etc. The basic steps are: Search online for potential properties to make offers on, using specific techniques for finding the right ones. Once an offer is accepted, usually within 1–2 weeks, put it on paper using clauses included in the book, and get the property inspected by a rehab contractor to get a free estimate of how much the repairs will cost. This is done by finding reputable contractors online and through referrals from realtors and through autoresponders. Order an appraisal. Sell it fast! Using the buyers list you have built on the internet through email marketing groups, social networking sites, blogs, free classified sites, bank–owned property sites, and more, send an email with the details of the property and instructions on how they can get the property under contract. Usually within two hours several potential buyers will reply. Set up a closing to buy it and to sell it on the same day, closings are about 30 minutes apart. By it at 10:00 and sell it at 10:30, for example. There are many ways to fund and close on the property. The book will contain step–by–step, easy processes for assignments, options, flex options, simultaneous closings, using hard money, private money, cash partners, and credit partners, none of which will require an investor′s own cash or credit. With praise from New York Times Bestselling Author Dr. Albert Lowery, Robert Shemin, Frank McKinney and foreword by Michael E. Gerber. Larry Goins (Lake Wylie, SC, ) is one of the real estate industry′s most popular speakers. He buys and sells 5–15 houses a month all over the US, in today′s difficult market, from the comfort of his office. Larry speaks live an average of twice a week and holds two to three teleconferences a week. He is licensed as a mortgage lender, mortgage broker, real estate broker, and general contractor in North and South Carolina. Larry served as President (2003 &, 2004) of the Metrolina Real Estate Investors Association in Charlotte, NC, a not–for–profit organization that has over 350 members (it is also the local chapter of the National Real Estate Investors Association). He has been investing in real estate for over 20 years.

Downloadable Forms xvii Foreword by Michael E. Gerber xix Acknowledgments xxi Introduction xxiii Section I Real Estate Day Trading: A New Way to Make Big Money Buying and Selling Houses the Same Day 1 Chapter 1 Click a Mouse, Sell a House: Real Estate Day Trading Is the Easiest and Fastest Way to Make $90,000 a Year (or More) while Keeping Your Job . . . If You Want To 3 Real Estate Day Trading Makes Failure a Thing of the Past 4 Small Problems Appear Large through Novice Eyes 5 Real Estate Day Trading Is a Confidence Builder 6 Make $90,000 a Year (or More) while Keeping Your Present Job 7 Chapter 2 Real Estate Day Trading: A Business Done Entirely by Phone, Fax, E–Mail, and Internet 9 Time Line for a Typical Deal 9 The 10–Step Day Trading Process 9 Step 1. Define Your Target Properties 10 Step 2. Separate Good Deals from Bad Deals 10 Step 3. Build a Database of Motivated Buyers 11 Step 4. Create an Influx of Motivated Sellers 11 Step 5. Put a Reliable Source of Funding in Place 11 Step 6. Build Your Dream Team of Trained Professionals 12 Step 7. Prepare Your Buying and Selling Contracts 12 Step 8. Start Day Trading 12 Step 9. Use Advanced Techniques to Create a Buying Frenzy 12 Step 10. Take Yourself Out of the Loop 13 What You Need to Get Started 13 Section II Set Up Your Own Day Trading Money System and Start Making $5,000 to $10,000 Cash Paydays in 30 Days 15 Chapter 3 It&rsquo,s Easier to Find a House for a Buyer than a Buyer for a House: Get Investors Lined Up to Buy (Wholesale) from You 17 It&rsquo,s All about Finding Houses for Buyers 18 Real Estate Day Trading versus Real Estate Investment18 Think Like a Supplier 19 What Kinds of Houses Do They Buy? 19 Low Income Doesn&rsquo,t Mean No Income 21 Most Houses Are Not for You 21 Goldilocks Houses&mdash,Not Too Big, Not Too Small, Just Right 21 Avoid Townhouses and Condos, Multifamily Houses, and VA/FHA–Owned Houses 22 Chapter 4 Instant Property Analysis to Identify Profitable Deals 25 More Offers Mean More Money 25 Two Simple Questions 27 What Will It Sell for after It&rsquo,s Repaired? 28 How Much Will It Cost to Repair? 29 A Third Question You Need to Ask 32 Short Selling Is Not the Best Way to Day Trade Houses 32 Run the Numbers 36 Do an Instant Property Analysis 36 Buy Houses Sight Unseen 38 An Exception to Fixer–Upper Properties&mdash,Instant Landlord Properties 38 Day Trading Luxury Homes 39 Three Types of Deals 40 Day Trading Not Investing 41 Make Your Deals Irresistible to Buyers 41 Chapter 5 Use the Internet and Web 2.0 to Build a Database of Motivated Buyers 45 Why You Need a Database of Buyers before You Ever Talk to Sellers or Realtors 45 What Is a Database? 46 Types of Database Software You Can Use 47 Automate or Die 47 Use Autoresponders to Stay in Constant Contact 48 The Fortune Is in the Follow–Up 49 Branding with Name, Logo, and Business Cards 49 Ways to Build Your Buyers Database 51 Marketing 51 Networking 55 Prospecting 58 Tabbed Browsing to Speed Up Your Searching 60 Answering Services and Call Capture Services to Handle Your Incoming Phone Calls 61 Answering Service 63 Call Capture Service 64 Vanity Numbers 66 Chapter 6 Find Motivated Sellers&mdash,Cherry–Pick the Hottest Bargains at below Wholesale Prices 67 Marketing 69 Co–Op Advertising 69 Bandit Signs 70 Business Cards 72 Flyers 74 Postcards 74 Classified Newspaper Ads and Free Online Classifieds 76 Vehicle Signs 79 Billboards 79 Take One Box 79 Door Hangers 79 Promotional Items 80 Ads on Buses and Bus Benches 80 Direct Mail 80 Google 82 Networking 85 Estate Investors Associations 85 Word–of–Mouth Advertising 85 Bird Dogs 86 Prospecting 86 Look for the Gap 86 Houses Already on the Market 87 Houses about to Hit the Market 93 Vacant Houses 95 Owners by Default 99 Defaults and Foreclosures 100 Tired Landlords 101 Damaged Houses 102 Farming a Market 102 Chapter 7 Secrets of Day Funding: Get 24–Hour Fast Cash 103 Show Me the Money 104 Where You Don&rsquo,t Get the Money 104 Borrow on Your Credit Cards 105 Borrow on Your Life Insurance 106 Borrow on Your Home 107 Open Reserve Checking Accounts 107 Borrow from Your Self–Directed IRA 107 Sell Nonessential, Personal Possessions on eBay 109 Use Unsecured Peer–to–Peer Lending Sites 109 Get Small Business Loans Online 110 Try Short–Term Business Loans 111 Use Microlenders 111 Find Day Funders 112 Get the Names and Addresses of Angel Investors in Your Area 115 Consider Partners Carefully 115 Chapter 8 Assemble Your Virtual Online Dream Team 117 With Real Estate Contractors, Professionalism Is Everything 117 Know What You Are Looking For 118 Find Good Rehab Contractors 119 Prescreen General Rehab Contractors 121 For Appraisers, Availability Is the Key 122 Find a Good Appraiser 123 Prescreen Appraisers 123 When Choosing a Title Company, Service Is King 124 Find Title Companies 125 Home Inspection Services 125 Find a Good Home Inspection Service 125 Prescreen Home Inspection Services 126 Real Estate Attorneys Protect Your Back 127 Find a Good Real Estate Attorney 127 Prescreen Real Estate Attorneys 128 Chapter 9 Risk–Free, Win–Win, Simple Contracts: Structure Buying and Selling Contracts to Make Your Deals Risk Free 131 Contracts for Buying through Realtors 131 Contracts for Buying from Owners/Sellers 132 Clauses in Contracts to Buy Properties 133 Must–Have Clauses in Contracts with Sellers 134 One Clause That You Do Not Need 134 Contracts for Selling to Investors 135 Addendums to Contracts of Sale 137 Chapter 10 Negotiation Scripts and Tips for Getting Your Deals Accepted 149 What to Say on Your First Phone Call to Owners/Sellers 150 What to Say on Your First Phone Call to Realty Listing Agents 152 Make Multiple Offers with One Deposit Check 155 Provide Proof of Funds 155 Negotiating One–Liners That Work Like a Charm 155 Secrets to Successful Negotiations 156 Adopt a Win–Win Attitude 156 Develop and Maintain Trust 157 Use Your Power of Leverage 157 Be Patient and Confident 157 Always Be Willing to Walk Away 158 Chapter 11 Due Diligence: Separating Fact from Opinion&mdash,Verify Everything They Told You on the First Phone Call 159 Order the Title Search 160 Control Contractors to Get a Valid Repair Estimate 161 Treat Good Contractors Like Gold 164 Use Home Inspectors for Properties That Need a Lot of Work 165 Find Out the Real Deal on the Neighborhood 165 Cancel a Contract and/or Negotiate a Better Deal 166 Validate Appraisals to Find Out What the Property Is Really Worth 168 Read/Evaluate an Appraisal Report in Three Seconds Flat 169 Chapter 12 Online Bidding Wars: Create an Insider List of Prequalified, Supermotivated Buyers Who Can and Will Buy Your Houses in Two Hours or Less 171 Turn Up the Heat and Create a Buying Frenzy 171 The Secret of the Whisper Campaign 172 Scarcity of Time 172 Scarcity of Access: Create a Two–Hour Head Start Short List 174 Make Sure They Are Qualified before You Click Send 174 Hard Money Lenders Prequalify Your Buyers for You 174 Secure Backup Contracts 175 Get Contract Extensions from Your Seller 177 Chapter 13 Let&rsquo,s Get Paid: Bought at 10:00 AM, Sold at 10:30 Am 179M Creative Ways to Close Your Deals without Money 180 Assignment of Contract 181 Assignment of Beneficial Interest 181 Subject To 183 Options 185 Simultaneous Closing 189 Physical Closing 190 Chapter 14 Duplicate and Delegate: Put 92 Percent of the Work on Autopilot and Streamline the Rest 191 Duplicate Yourself 192 Hire Virtual Assistants 192 Hire In–House Property Acquisition Managers 194 Property Acquisition Managers: Commission–Based Employees 195 Hiring Property Acquisition Managers 195 Managing Property Acquisition Managers 195 Chapter 15 Quick Start Your $5,000 to $10,000 Day Trading Paydays 197 Now What Do You Do? 197 Four–Step Quick–Start Checklist 198 Advanced Day Trading Education&mdash,Yours Free 198 Index199