Phoenix Real Estate Investment Training
The Phoenix Rises for Ka-Ching
Day One Monday, June 9, 2008
7:30 Jason and I drove around Bette Lou’s neighborhood and located 4 potential short sale/REO’s from driving the neighborhood and finding them with tall grass/weeds and foreclosure notices stapled to their garages.
8:00 We arrived at Bette Lou’s home and met her daughter, Mary Mumme. Mary would be assisting Bette Lou with her properties and investing. I immediately asked them what kind of marketing that they were doing and it turned out to be none. I had Bette Lou pull a list of preforeclosures from Realty Trac and then discussed with them about several other marketing techniques. We then prepared for their realtor friend, Linda Pollack with Coldwell Banker to arrive.
9:00 Linda Pollack had been a realtor for 25 years and her immediate questions was why Bette Lou and Mary needed a mentor when she could pull things directly off of the MLS. Jason and I looked at each other and almost laughed. I discussed with Linda about how we were planning on marketing for properties and that we would need a realtor to help us market the properties after we purchased them. Linda didn’t really seem to understand what we were asking and she asked if she could hang around some to help her get a better idea of what we were asking. We agreed to let her hang around, but we knew it would be a waste. At the same time, Mary and Bette Lou’s friend Jeff (a personal trainer and ball room dancer) arrived and would be helping the ladies with their marketing.
10:00 Realtor Left. I had Mary and Jeff pull up Craigslist and I had them post several ads which they could use to attract buyers, sellers, preforeclosures and ways for them to sell their properties. After this I made them work on finding some hard money lenders. I had all 3 call and interview lenders. We found several who would fund up to 70 and 75% along finding a couple REO’s to look at as well. Found 1 nice potential REO deal on a condo development that had been foreclosed on.
1:00 Drove around
the area where Bette Lou’s daughter, Mary, lived and looked at some high end
houses along with identifying some border area homes for them to possibly
working on marketing letters to preforeclosures. We got several responses to buyers from the
Handyman Special Ads which helped us create a buyers list for the ladies
3:45 Left to go
attend the AZREIA club meeting in down town Phoenix
4:30 Arrived at
club and started networking: Great
club! We found several realtors, 2 title
companies, several wholesalers and set up appointments for the following 2
Along with listening to the speakers (Attorney and local real estate agent on trends of areas which showed the Phoenix metroplex as emerging from the rock bottom.)
wrapped up and we headed back to the hotel.
Day Two Tuesday,
June 10, 2008
10:00 William Conrad, mortgage broker
11:00 Drove out to meet one of Mary’s realtor friends, Veronica, to try and view the ugly houses along with one probate property.
1:00 Jeff joined us after lunch and we started to review some of the potential wholesale deals that we had picked up from several of the wholesalers from the previous night. Jason and I took turns calling the investors and asking them questions about their wholesale deals with Mary, Bette Lou, and Jeff listening in. We uncovered what we thought were some deals and discussed with the ladies why we thought that they were good and how we would need to do our own due diligence to ensure that the properties were actually deals after all. We made a list of the deals and then headed out to meet with the realtor from Pruven Realty, Toni.
3:00 We arrived at Toni’s office which was extremely nice! We could tell Toni was a bit nervous but was interested in working with us. After we initially visited and she asked what she could do for us, she seemed a bit overwhelmed with some of the items that we had requested along with us asking her to pull some comps for us on some of the wholesale deals. She stated that she would work on them and we scheduled a meeting for Thursday afternoon to go back over the properties. We then headed out to meet with Diann at Chicago Title.
4:00 Wet arrived at Chicago Title and was immediately greeted very warmly by Diann. Diann was exactly what we were looking for in a title company and we were excited to hear that they closed simultaneous closings all the time along with her willing to recommend a few private investors, hard money lenders, and a servicing company to handle the collections and escrow accounts on any owner financed transactions. We really enjoyed the visit with her and headed back to Bette Lou’s home.
5:00 We wrapped up the day with Bette Lou and Mary filling out the Daily Journal.
Day Three Wednesday, June 11, 2008
9:00 Jason and I arrived at Bette Lou’s home and we immediately started to call the wholesalers Matt and Chris to discuss the disparity in the pricing of the one home that we were interested in $90 and $105K? Chris immediately came down from his offering price when coaxed and discussed with us about getting it at a lower price. He stated that he would get us some info on the property.
10:00 We then headed over to meet Gasper (the investor/realtor) whom we had met at AZREIA. We met him at one of the homes that he was wrapping up rehabbing and we discussed some of the deals that we were looking to do with him. Jason and I were impressed with the quality of the work and the idea/imagine that he had showed to maximize his rehab along with the competitive pricing of the property. We discussed the market and what he could do for us and what we needed from him. He agreed to pull some listing for us to take a look at the next day. We thanked him and headed out.
11:00 Jason had received a phone call from the wholesaler, Matt, and we headed over to look at the property. We arrived there and Matt gave us a tour of the property. The property needed some major rehab, but we felt that it would be a great property for Mary and Bette Lou to maybe sink their teeth into. We discussed with the ladies about whom they might use as a contractor. Bette Lou immediately called her contractor to see about getting him out that afternoon to look at the property. We then headed out to lunch.
2:00 We dropped by the Home Depot to pick up some road signs for Mary to put out to help with marketing and attracting potential sellers. We picked up two large signs and helped them write up the advertising in Black ink and discussed where they should place the signs. After this, we headed back over to the wholesale property.
3:00 We arrived back at the potential wholesale property and had Bette Lou’s contractor meet us to help give us a bid on what we could expect the property to repair at. We walked through the property and gave him an idea of what we had in mind as far as the repairs and he came up with around a rough idea of $25K to repair the property. We thanked him for his time and I had Jason and I film ourselves with Bette Lou as we discussed the deal on film. I had Jason walk through the property with Bette Lou discussing the repairs, rehab, and costs on film for REPC.com. We had a good laugh at ourselves and headed back to Bette Lou’s.
5:00 Once we arrived back, Jason called both wholesalers who were pitching the deal and had Mary submit an offer of $85K to both. We came upon this price by taking the value of $160K (from driving the neighborhood and calling other listings) along with multiplying that by 70% and then subtracting the $25K repair costs along with the costs for holding. We discussed this with the ladies and how to work this.
6:30 We wrapped up day three with Bette Lou and Mary filling out the Daily Journal and Jason and I coaching Mary on how to handle the phone calls from the two wholesales (Matt and Chris)
8:00 Mary called to tell us that Matt had informed her that the deal had been bought at $87K before we had the final opportunity to submit our bid of $85K
Day Four Thursday, June 12, 2008
9:00 We arrived at Bette Lou’s home. We spent the first 30 minutes discussing the deal from the day before and what they could and should expect to see in wholesaling. We also started to prepare for Gasper’s visit. Gasper arrived shortly afterwards to meet up with us to show us some potential wholesale deals. He had pulled a list of around 15 properties well under $100K that he thought might be jewels. I narrowed the list down to 8 properties (all between $50K and $79K REO’s that were all over 1200 sq ft). We then headed out to look at the properties. I rode with Gasper and Jason rode with Bette Lou and Mary.
Gasper explained some of the reasons why he had selected the properties and the areas that we were driving to (west and south Phoenix). All of the properties were in need of some major repair, but all were potential wholesale deals that we could probably get pretty easy. Throughout the process we discussed how the ladies would market the properties and what they could expect to receive as far as wholesale leads.
After visiting the last one, I helped the ladies pick out the three best properties and had Gasper look at pulling comps of what we could expect the properties to fix in ARV. I then discussed with the ladies what they should offer the banks and then how to wrap the package with a pre-approved financing package to make the deal sweeter and easier to handle. With that in mind, we headed out to lunch.
2:00 Toni from Pruven Realty called to delay our meeting with her back to 3pm and so I had Bette Lou call Jeff to have him meet us at the restaurant. Jeff arrived shortly and I took the time to visit with them and answer a lot of questions that Jeff had regarding purchasing property. He really seemed to struggle with the idea of financing and a lot of his questions just came from his lack of education. I stressed that he take the time to educate himself on and with a lot of the resources that Bette Lou had to provide. We then headed out to our appointment.
3:00 We arrived at Pruven Realty to meet with the realtor, Toni. Toni had her broker sit in with us and she went on about how they catered to investors. He broker, Ladey, had a good visit with us, but left after about 30 minutes. Toni then informed us that she would be requiring an exclusivity agreement, which we did not like. We informed her that we would not be signing one and thanked her for her time and left.
4:00 We arrived back at Better Lou’s home from our meeting with Pruven Realty and I sat down with the three of them and started discussing their daily, weekly and monthly marketing plan. I discussed with them that they really needed to focus on education and working to go through the massive audio and handbook library that Bette Lou had accumulated. I also discussed with them about their roles and how they should meet daily and treat this as their job to truly be successful.
5:00 We wrapped up our 1:1 mentoring with Bette Lou, Mary, and Jeff filing out the Daily Journal and Mentoring Evaluation. We also spoke briefly with Dutch from the 90 days of coaching as Better Lou’s conference call was beginning at 5 pm.