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Rocking 'n Rolling in the Bay Area

Updated on July 06, 2011

Starting A Real Estate Investment Business

I’m a real estate investor and a coach for Bob Leonetti and Jayme Kahla through SMI Funding and their Real Estate Profit Coach program. I travel around the country helping Bob and Jayme with their educational seminars, but I also work with students in their respective markets with their real estate business.

I recently completed a 4 day 1:1 with one of our students, Marsha Walker. Marsha lives in the San Francisco Bay area in Northern California. I’ve known Marsha for years. We met when we were both students. She’s been a perpetual student, a seminar junkie, and I was there to get her real estate business going into high gear. Marsha wants to provide a living for herself and dig her way out of seminar debt.

My challenges in helping Marsha?

First, she’s participated in many real estate training events which led her to spend money on multiple products. Her real estate library is quite impressive. It’s easy to get overwhelmed by all of the different techniques to make money in real estate. My goal was to get Marsha focused on 1 or 2 ways and to implement them immediately. Progress will never be made until procrastination is replaced with action.

Second, the Bay area is a high priced market. It’s tough to make a $600,000 home cash flow.

Third (and to make the job a bit tougher), much of the Bay area is a declining market.

Two and three may seem like a contradiction, but that’s Marsha’s reality.

So how did we get started?

The first nut to tackle was documenting goals and refining her business plan. SMI has a great Profit Mapping 90 Day Action Plan that I used to get us started. Marsha’s financial goals are ambitious, so we needed to get busy.

Next, we started work on her “dream team”. She needs a group of professionals to help her reach her goals. This is particularly important for a novice investor. We set appointments to meet with a highly visible and successful real estate investor, 2 real estate agents, and a loan officer. We discussed a lead exchange with each professional we met with. It’s possible they have customers they can’t help through traditional methods, or may be interested, or have someone interested, in properties Marsha is bound to come across. All we met with were open and receptive to the exchange. Never underestimate the importance of networking!

Now that Marsha refined her business plan, it was time to create her marketing plan. Through the Profit Mapping exercise, we determined she needs to talk to 20 prospects and make at least 2 offers per week to reach her financial goals. So how do we get that phone ringing?

Marsha’s primary lead generation will come from distressed homeowners, easy to come by in a high priced and declining market! Owner occupant buyers and fellow investors looking for deals will come. Marsha already had the tools to accomplish all of this. I showed her how to implement them. If she has too many leads, she can decrease her marketing efforts. If she doesn’t have enough, she can turn up her marketing efforts. It’s completely customizable!

Marsha began a mailing campaign to distressed homeowners. While meeting with a local real estate agent to discuss networking and business opportunities, the agent offered to provide Marsha with Notice of Default (NOD) and Notice of Trustee (NOT) lists. Booyah Baby! The agent delivered what she promised, and Marsha has hundreds of prospects to follow up with, using a marketing system she already had. The first of her mailings went out while we were together. The agent let Marsha know this list is available weekly.

A meeting with another local real estate agent yielded a different opportunity. Imagine $100,000 homes in the Bay Area that cashflow! Somebody pinch me! Our REO agent showed us many properties that our investor network would love! These same properties were valued at $250,000 or more last year. The San Francisco Chronicle had an article relating how home sales are rising as lenders are facing reality and lowering prices to liquidate their inventory.

Let’s not forget the properties Marsha will find through her distressed homeowner campaign. Marsha can control properties through several methods, and wholesale them to her investor network. What a great opportunity to make some money and share the wealth!

Using Craigslist to advertise these homes is free, other than your time, and is effective if used correctly. Marsha already had an account, so I showed her how to generate buyer leads for all her properties. She was skeptical at first, but quickly found a prospect wanting to buy a home in Marsha’s target area. Awesome! Now we have homeowners calling Marsha with homes they want out of and buyers contacting Marsha wanting to buy homes. Ain’t it great when a plan comes together?

Marsha will have a need for private money to give her additional money making opportunities, so I showed her Scott Carson’s “Private Money Presentation” on It gives talking points for you to address with potential private money lenders. It’s a great presentation that can be downloaded.

Wrapping it up.

We ultimately had a plan of action that identified activities on a daily, weekly, monthly basis that Marsha can focus on to keep her business moving forward. I want Marsha to add layers to her business to build depth. She will be attending our Paper and Private Money Profits workshop February 26 – March 1 in Austin, TX, which will give her a great opportunity to refine her existing strategies and add another tool to her now working business.

California Dreaming

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California Fixer Upper?
Oakland Victorian Duplex
Oakland Victorian Duplex

Marsha's Oakland Victorian

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    • 1scottcarson profile image

      1scottcarson 8 years ago from Austin, Texas

      Great Job Lorena! Keep up the great work! Check my blogs out as well! Thanks!

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