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Joe: Hey everyone, it's Joe Crump. I've got another question here. Boy, I'm going to kill
this name here -- Rajav Guktah. Hopefully, that's pretty close.
Rajav: "The challenge that I'm faced with is simply carrying costs. Three or four years
ago, you could virtually buy any property and rent it out for positive cash flow."
Joe: I'm assuming you're meaning with 100% financing.
Rajav: "This was on account of two primary factors.1) it was prior to the massive appreciation
we've seen, and 2) interest rates were lower. Large amounts of cash to use as down payments
are not available to me. The one investment property that I do own, I purchased by leveraging
equity in my primary residence. The investment has done well but I'd like to be able to pick
up some new things." Joe: Well, first of all, never borrow against
your current property (the property you live in) to buy your investments. Never ever do
that. There's no need to do that. Don't take that risk. You can lose your property. You
can lose the house you're living in. People say, 'Well, you've got to take some risks
to do investing,' and I agree; you have to. But you don't have to take that kind of risk.
Protect your house -- protect the house that you live in. That's the first order of business.
Joe: You also don't need to go get loans to buy these properties, and you don't need to
wait until you get your next chunk of money before you can put down another down payment
and buy another property. That's just completely wrong thinking. So don't buy properties that
way. Use creative financing to do it instead. Joe: The way that you find people that will
do creative financing is by using marketing that works. So use the right type of classified
ads. Use the right type of internet marketing. Build lists of buyers. Build lists of sellers.
Build lists of investors, and you'll be able to use this stuff. And by building a list,
what I'm talking about is an online database of these people. It's not difficult to do
if you have the right software and the right knowledge.
Joe: You just need to learn this process. You can get all of this stuff from my "Push
Button Method". That's at PushButtonMethod.com. You can learn how to build those systems and
how to build those marketing tactics. Joe: But even if you've got none of that stuff,
you can put a sign out in the yard that says, 'I'll buy your home.' Or, 'I'll make a guaranteed
offer on your home in 24 hours' and your phone number. You'll put deals together using that
if you put them in the right places. Joe: Do it handwritten. Do it on cardboard.
Do it on Coroplast. Don't make them fancy. Don't spend money on these signs. These signs
should cost you two bucks. You can get a piece of cardboard for 90 cents and you can get
a couple of grape stakes or tomato stakes and staple them on there, get the yellow cardboard
and write on there in black, 'I'll Make An Offer On Your Home Today' and your phone number,
or, 'Guaranteed Offer On Your Home In 24 Hours.' Joe: These are great ads and they will work.
Make sure you put them into high traffic areas. They won't stay up very long, but they'll
work. Joe: Now, there are a lot of other things
that will work and that'll also be very effective if you get into some of these more advanced
techniques that I teach. Joe: Just get started. Just do something.
Just take action on what you're doing and you're going to make money. Anyway, good luck
to you and keep buying properties. Don't let it stop you.
Joe: I don't think I answered the question, though, because you asked about the values
going up. When the values go up on a property, one of the things that you can do to sell
that property is to sell it on a lease with an option to buy. Now, instead of renting
the property, you're selling it, so the buyer takes a whole new perspective from this property.
Joe: Let me give you an example of a property in California that I had. This was back in
the 80's actually. It was $495,000 if I remember right, and it had a payment on there, because
the interest rates were very high at the time, of $4,300 a month. Now, you can go rent a
house like this for about 27-2800$ at the time, and I had to figure out a way to get
that payment covered, because I either had to sell the property, and I had the problem
of selling the property because the market was going soft on me, so I had to find a way
to get that thing covered because at the time I had the loan in my name. That was crazy;
that was a crazy time. But I did it. Joe: Anyway, so I had to get that payment
covered. So I went out and sold it on a lease with an option to buy. I told the guy, 'Look,
you're making payments on this property that costs you $4,300 a month so you're going to
need to make payments on this property the same as if you were buying it. And if you
can't make that payment, you can't afford this property.' So he saw the logic to it,
he bought the property, he's making $4,300 payments, and he eventually exercised his
option and took it over.