Bowie Maryland Real Estate Investment Training
Taking Tony to the Next Level!
Day One Monday, October 29, 2007
9:00 Tony picked me up at the hotel and we headed over to his home office. We spent the first couple hours just reviewing what he was currently working on. Tony seems to have attended or purchased just about every class, book and tape set that is available out there. He did state that he has finally found the time to start working on things since he scheduled the mentoring program. We discussed some of his marketing and a couple of his potential note deals that he was working with SMI currently on.
11:00 We met with Joan Singh, realtor with ReMax. Joan seemed very willing to work on co-marketing with Tony. She also offered up her time to work and help Tony with his marketing efforts (yellow letters, NOD’s, etc). We also discussed with her how we could help some of her clients and other realtors with owner financing.
12:00 While we were visiting with Joan, another realtor, Janet, showed up. We spent some time with her and Joan discussing owner financing more in depth and how we could structure a couple potential deals that they each had. Both realtors were amazed at how we could do a simultaneous close and help there buyers and sellers out, and still work out how they could be paid. We spent some time discussing the current market in Prince George county Maryland, and what we could expect the market to bare the next few months to year.
1:30 After both realtors took off, we spent some time working on a couple marketing problems that he was experiencing with some of his programs. We also called three mortgage brokers and arranged one meeting for later today, and two on Tuesday.
We also discussed each realtors strength and weakness as we saw it. Tony also spent quite a bit of time talking with the mortgage broker who sent him the deal that he is currently negotiating with SMI.
3:00 We met with Bob Mediate with Integrity Home Mortgage. We spent the first 30 minutes visiting with one of Bob’s colleagues as Bob was stuck on a conference call. Tony had worked with Bob on a couple of other deals in the past. Bob worked primarily with new home buyers. We discussed how we could help his clients and him close more deals along with him assisting us in finding defaulted note pools and private money to help lend out. Bob didn’t seem to care initially or show any interest until he presented a deal to us that he was having a hard time doing. We structured the deal and presented it back to him, and you could see the light go off in his eyes. He immediately asked us a bunch of questions regarding the deal, and asked if we would be able to visit late Wednesday or Thursday with his partner and the home owner on the deal. We stated that we would be able to. We thanked him for his time and headed back to Tony’s home office.
4:30 We arrived back at his office and starting working on how to follow up with Bob Mediate and the two realtors. We also looked at 28 REO’s that were listed locally. We created 29 Letters of Intent and faxed them out to the listing agents at 70.5% of listed price. We also spent some time working out a software/fax machine problem to get the LOI’s out properly. After we solve the issue, we spent some time reviewing some of the listed FSBO’s. We discussed what we could accomplish with them, and I called the first couple and Tony watched me. It turns out that he wasn’t comfortable cold calling the FSBO’s, but he stated that he liked the script that I used. We roll-played a few minutes and discussed how we could structure a couple potential notes and simultaneous closes on the home owners that gave us enough information to make things work.
6:00 We discussed the day at hand, and then also planned out our Tuesday. We filled out the Daily Journal, and I had Tony sign the Mentoring disclosure.
7:00 Tony dropped me back off at my hotel.
Day Two Tuesday, October 30, 2007
9:00 Tony picked me up at the hotel. We discussed the previous day. Tony stated that he had worked on creating a couple mass voicemail blasts to send to FSBO’s to outline what he was looking to do in offering them owner financing. He also showed me several responses that he had received to his Letter’s of Intent that he had also faxed out. Tony also showed me the flyer’s that he had created outlining what he could offer, sellers, realtors, and home builders with his brokering notes deals. We discussed some of his wording on his LOI’s, and headed out to our 10 am appointment.
10:00 We visited with Laurent Berman with Mason Dixon Inc. We had a great visit with him. He disclosed that they had a large portfolio of existing notes along with several warehouse lines. He stated that he would get us a list of the notes that they were trying to get rid of as well. We also discussed several of their loan programs and some of the things that Tony was working on with the owner financing and simultaneous closings. Laurent seemed quite interested and brought up that he had several home builders who would benefit from such a program. He asked us to send him several scenarios that he could pitch and we stated that we would work with him to pitch them to his builder contacts. We left the meeting after discussing short sales, the market, and investment strategies. He also stated that he had several clients that were looking to invest their cash in private lending. We left the meeting excited and stoked.
11:30 We arrived back at Tony’s house and started to work on getting Laurent the two spreadsheets that we had promised. I showed Tony what we were sending him, and explained basically what each column meant to the lender. We also spent some time working on answering questions that Tony had about entity structuring and asset management. We discussed what and how he was structuring his hard money loans and what he was doing for due diligence, points, and rates of return. We also worked on Tony submitting 20 offers to vacant home owners along with another 20 REO offers.
1:30 Tony had another mortgage broker come on over to his home office. Deleano is a licensed real estate agent and loan officer who had been assisting Tony with calling other lenders in hopes of landing some defaulted note pools. He stated that he was having problems with the secondary marketing manager returning his calls. We discussed who and where he was calling, along with what he was saying in his messages. We also worked on him understanding more about what we were looking for and why. We also discussed some of the lingo and language. We spent a good amount of time just helping him identify smaller lenders and mortgage bankers to get a better response rate. I also recommended several books and websites for him to tap into to help him along with his own personal real estate investment business. We wrapped up the day with several scenarios role playing phone calls to secondary marketing managers.
3:30 Deleano left Tony’s home office and we went back to working on some of his marketing. We also set up two appointments for the following day with short sale potentials. We posted several ads to Craigslist. We also worked on working to get Tony comfortable with the 4 Goal Close. We discussed the Maryland foreclosure laws and several ways to work around the laws and how to utilize realtors and “foreclosure experts” in ways to maximize his profits.
5:00 We wrapped up the day early since we worked straight through without taking lunch break. We discussed Tony writing down any questions on things that we had worked on the past two days. We also had Tony fill out the daily journal as well.
6:00 Tony dropped me back off at the hotel.
Day Three Wednesday, October 31, 2007
9:00 Tony picked me up at the hotel. As he picked me up, he received a phone call from Joan Singh (the realtor that he was using him to help find buyers on owner financed transactions). Joan had a ton of questions and was making what we were asking her to do a lot more complicated than it needed to be. We spent at least 30 minutes trying to explain again what we needed her to do. We finally got tired of trying to explain it and told her to come by the office later that day and I would outline some scripts and what exactly she needed to say to avoid the problems that she was running into. We then headed over to the Prince George County Clerk and land records office.
10:00 We arrived at the county clerk and land records. We met with Andrea, an employee with the county, who helped educate us on the searching process. We pulled up records to 10 properties that Tony was interested in and had sent LOI’s to. Tony also wanted to compare what the online recording office had recorded to the Criss Cross real estate software that he had just recently purchased. It turned out that everything was right on with the software and we were both excited at the amount of time that it would save him with his properties. We spent another half hour researching each property pulling up judgments and liens on each one to make sure that title was clear. I stressed to Tony to make sure that he not close a property without title insurance to insure that he not miss something. He agreed, and we headed back to his office.
12:00 Once we arrived back at Tony’s home, he mentioned that he had received several responses to his Craigslist ads. We called all three and arranged for us to meet with one of them the following day. Tony also received three faxes from his LOI’s while we were out that morning. Two of them requested that we submit official contracts, and we contacted the third to discuss the offer with her. She had several questions about our offer, and told us that she would get back with us the following day. She stated that the bank would require a HUD-1, CMA, proof of funds letter, and sales contract. We stated that we could have that back to her by Thursday.
1:00 Tony and I discussed some of his marketing plan and we discussed him setting up routine actions and lists on his computer to automate some of his marketing to LOI, REO, and vacant property offers. While he was doing this, I started working on typing out a script for his realtors to use when discussing owner financing with their buyers and sellers. I went over the scripts with Tony and we tweaked the wording to “dumb” it down a bit. We worked on scripts and worked through a short sale package and how to proceed with his offers.
2:00 Joan showed back up at his office, and we sat down and roll-played with her to help her understand what we were looking to accomplish. We went through the scripts at least 3 times with her to get her comfortable. I also went through the time frame for her to promise the potential buyers and what not to say. I also wrote up several Frequently Asked Questions for her to have as well to guide her through the process. We also discussed with her about the offers that we would need her to submit, and the short sale that we were working as well. She was excited to see our progress, and was amazed at the response that we had received from the Craigslist ads that I had posted the night before. I personally don’t think that she had posted them before, but she will now!
3:00 Once Joan left, he and I began to work putting together a separate short sale package to meet with a homeowner this evening at 6 pm whom we had visited with the day before. We worked on roll playing with the 4 Goal Close. Tony had several questions pertaining to the new Maryland foreclosure laws. We walked through the law and discussed that since these clients were contacting him directly, that we were not violating the law, and if we were working to purchase the notes how we were getting around the laws without violating anything.
5:00 We met with Jacqueline Mason, a real estate broker with Mason Realty. She was an agent that contacted Tony off of one of his LOI’s to one of her listings. We discussed how we could help her sell some of her homes faster, or at least get someone in them helping their clients out. We outlined two scenarios of how we have helped a few clients with owner financing in the past. She then gave us two scenarios that she was currently facing with her existing clients and so we took the time to outline two deals. She was extremely excited and asked us if we would be able to come by her office and pitch/educate her and her previous broker’s agents (around 20+) the same opportunity. We stated that we could definitely set something up and she ended the visit with expressing the fact that she would be contacting us in the next day or so to set something up in the future along with a couple potential deals.
6:30 Tony and I went the day and filled out the Daily Journal. We also discussed what we would be working on Thursday. I also alerted Tony that he would probably want to focus on his planner to maximize his schedule around his weekend Pharmacist job and the upcoming tax season.
7:30 Tony dropped me off at the hotel.
Day Four Thursday, November 01, 2007
9:00 Tony picked me up at that hotel. We headed over to visit Evergreen Title company where he had closed several deals within the last year. We visited with Sue at the title company and she offered to prepare estimated Hud-1’s for Tony at no cost. We had the information that we needed on one short sale with us, so she took the time to prepare it for us. We thanked her for her time and headed back to Tony’s house.
10:00 We arrived at his home and started to work on calculating two other deals that had been faxed to him from two different realtors. Tony utilized his Criss Cross software to pull up existing liens and sales prices on the properties. We discussed the potential offers and called the realtors up to submit offers. We also pulled up eight properties that were set to go to foreclosure within a week and discussed the spreads according to what the first and second liens were. We sorted out four of the eight, and Tony sent LOI’s to the realtor’s involved to try and purchase the properties prior to the auction with short sale offers.
11:00 Joan Singh faxed over two sales contracts on short sale offers, so we faxed the sales contract, HUD-1, and proof of funds letter over to the seller’s realtors. After we did this, Tony checked his email and two more individuals had replied to his Craigslist ads. We took some time to review them and called both of them back. One of them seemed interested, but the other was obviously not. We took the time after the call to structure up a note deal on the one, and emailed it back to the seller and the seller’s agent. I also made Tony structure a couple of note deals with different scenarios so that he would be able to initially structure offers. He did a great job of working within the numbers and was excited to succeed.
1:00 We came back from lunch and focused on helping Tony organize some of his marketing and follow-up procedures. I helped him organize tasks for this week, next week, and monthly file folders, along with individual file folders on his properties. I also spent the time and created a simple HUD-1 request form that would allow him to submit title requests and HUD’s from Evergreen title. Tony also took the time to call his attorney to discuss the eviction process on a property that he had purchased the week before. We also spent some time sending emails to follow up with the contacts that we had made during the week.
2:00 I spent the next hour helping Tony construct his marketing plan on a weekly, monthly, and annual basis. We discussed things that he should focus on along with follow-up on declined REO and LOI offers. We also discussed him contacting the lenders directly to possibly purchase the notes on properties going to foreclosure. He was extremely excited about that prospect and we discussed and scripted a few scripts for him to use. At the same time, Delano, his mortgage broker that was contacting lenders called to discuss the headway that he was making on the note pools. It turned out that Delano had gotten a hold of one, but they were only in charge of performing paper.
3:00 I worked with Tony on constructing a complete short sale package and who, when, and where he should send the file. I roll-played with him on how to get individuals to sign the documents and when and how he should prepare the home owners to get him the required information that would be needed by Carrie Moore in Lee’s office. He was excited and stated that he would probably call myself or Carrie with more questions.
4:00 I had Tony write out some of his goals for the remaining part of the year. We discussed that he should look into hiring a part time assistant especially with his busy CPA business starting in December. He said he would speak with Joan and his daughter to see about having help him out 3-4 hours a day for 3 days a week. We wrapped up the day by having fill out the Daily Journal and Mentor Evaluation. Tony stated that the mentoring was worth every penny and that he truly felt like he had a team to help support him and his deals. He also stated that he felt like the week had helped his business expand by over 1000%. He thanked me for helping him out.
5:00 Tony dropped me back off at hotel.
Bowie, Maryland is located 30 minutes east of Washington, D.C. It is also about 45 minutes south of Baltimore. The area is primarily residential with home prices in the $400,000 to $600,000 range on average. It is definitely a buyers market with inventory taking an average of just over seven months to sell. Many of the home owners commute to either Baltimore or Maryland and work for the government. Bowie is located in Prince George county which is home to one of the highest foreclosure markets in the nation. Bowie was home to a rapid growth in home prices which has leveled off or dipped in some areas. According to several local realtors and mortgage brokers, the area was home to a mini refinance boom around 2005, but with the many of these homeowners cashing out equity, they now owe more than the properties are worth. The realtors commented that many lenders are aware of the areas and that short sales are listed constantly on the MLS. With the recent changes to Maryland law encompassing foreclosure, many investors are simply waiting for properties to kit the foreclosure sale and pay the 10% down payment that is calculated off of the foreclosing lien holder’s due balance. Investors are not allowed to contact home owners within a 21 day period prior to the auction unless they are a “foreclosure expert” or a realtor. Unfortunately, according to state law, you are not allowed to keep the home owners in the home under ANY circumstances. With the long holding periods, we approached several realtors with the solution of owner financing and were amazed at the response and the openness that many of them had to learn more about it. We have even discussed setting up a local educational seminar for some of the local realtors (suggested by 3 brokers to us). Overall, the market in Bowie can be a very lucrative area with the large numbers of foreclosures, 2nd liens getting wiped out, and overall market conditions.