I found myself checking out the Knoxville MLS on Saturday when I stumbled across what appeared to be the deal of the century.

A 2800 square foot home that is only 7 years old on the market for $122,000.  The kicker was that the mortgage note on the property is for a staggering $355,000!  The asking price is close to just 30% of what is owed…you have got to be kidding me!

Was this the gold mine deal that I have been looking for?

Of course my thought was that if you have $80,000 in repairs and holding costs, who cares.  Put the property on the market for $300,000 and you still stand to make a cool $100K!

Not so fast my friend!

Upon further examination of comps and research about the area, it appears that the home is priced a little bit below market value…but not much.   I found two homes on the same street that are on the market.  One for a little over $100,000 and the other for just under $150,000.  The cheaper home being built in the 70,s and the more expensive home built around the same time as my subject home.  Upon further research I have concluded that the property in question might sell for ~$180,000…but that is probably tops

I have no idea how the property deserved a mortgage for $350,000, but I am pretty positive they made a huge mistake.  I have some theories about how this could happen, but the whole point of writing this is to say that you cannot take the numbers on a property for face value.

What I mean is that you must always do your due diligence and research.  You can bet that I went and did my research the moment I stumbled across this property.  And boy am I glad that I researched the property because I was ready to jump all over the deal and make a full asking price offer with no contingencies.

Lesson: Do Your Research Before Making Any Offers!

Ross Treakle

http://SIMSandthePLF.com

I am not going to write a lot today for a few reasons.

1. I am most definitely not the expert on the topic!

The guys who are the experts have created a 60 minute video outlining the PLF or Property Launch Formula with ideas and insights into how you can sell any home for top dollar in any market across the US!

2. I can’t come close to speaking on the topic as an expert so why try!

As I said in #1, Greg Clement and Jeff Walker are experts in their respective fields.  They have joined togetehr to create something amazing and there is no reason why you should lsiten to me about what they have created, you need to check it out for yourself!

http://SIMSandthePLF.com

Cheers,

~ Ross Treakle

The audio is not the highest quality but I think you will still enjoy the “Tip from Andy”…and be sure to join Andy Heller and myself tomorrow night, Wednesday July 29th, at 900pm Eastern (6:00pm Pcific) by registering below!

https://www2.gotomeeting.com/register/156303699

Cheers,

~ Ross Treakle

The other day I was looking through my emails of which I get a few hundred per day (and probably waste a good hour browsing) and came across an email promoting this twitter and social media guide.

Before you hit the back button, read the next paragraph (and I promise to answer the Einstein reference before I finish)…

After watching the first two training videos (which are awesome) I realized that I had already started to follow the techniques described with my two twitter accounts and have started to make a little money in only a few short weeks.  What I realized was that the videos will ramp up my earnings and progress me even further along in social media, and that is just the FREE stuff!

Watch The Videos!!!

One of the concepts was tying in your blog to every social media platform you use.  And how did you find out about this blog post…through twitter most likely!

I am not using all of the tricks and techniques that this “guru” shared in his free videos, but you can bet your ass that I am going to start to grow out my social media presence!

I am sure that every Internet marketer and there brother have been promoting this social media matrix report thingy and they will all probably be offering all sorts of bonuses to people who buy through there link…I really have no bonuses to offer, but I feel like I gotta tell you about this free material.

You are obviously a twitter user and I am guessing that you may have a blog (you can get one from WordPress for free)…so this content is most likely something you should be watching.

Get The Free Videos!

About the title of this blog post…”Albert Einstein”.  the “guru” in the video is wearing a shirt with an Einstein quote that may just be one of the most inspirational and real quotes I have heard in a long time…

“Imagination is more important the knowledge” ~Albert Einstein

Cheers,

~Ross Treakle

P.S. after you watch the free videos, would you come back here and leave me your thoughts?  I would really like to start a social media dialogue because it is one of my favorite new topics…

Did this video make you think?  I know it got me thinking of daily things that I do in order to grow my business.

In fact, I created an interesting little exercise that I am still in the process of working on that I would recommend for you.  Try writing down the things you do on a daily basis…write down everything!  I mean the good, the bad, and the ugly.

Here is an example of what your paper should look like…

Good Habits:

1. eat a good breakfast and exercise (this jump starts my mind and body)

2. Create a top 10 list for the next day (gives me direction for tomorrow)

3. Education (I read/study at least 1 hour per day)

Bad Habits:

1. checking email ALL DAY (should set aside a certain time per day for this)

2. playing spider solitaire (I need to delete all games from my computer)

This is just an example of my own ongoing exercise but I hope that you can see what I have done.  Next to the good habits, I wrote why these things are good.  Next to the bad habits, what I can do to eliminate the habit.

The next step I would add are habits to start…what are the habits you need to start on a daily basis to grow your business?

Do you need to work on marketing?  Call sellers and buyers (how many per day)?  Make one offer every day?  Talk to 5 people in your community about the ability to invest in your business (private money)?

I challenge you to do this exercise and then report back by writing a reply below.  What habits do you have now that are good? Bad? What can you do to grow the good habits or eliminate the bad?  And what habits are you going to start…TODAY, in order to grow your business?

Cheers,

~ Ross Treakle

P.S. after you have completed the exercise, be sure to make a few copies of your paper and post them in places around your desk, carry one in your wallet or purse, put one in your car…the idea is to create all of these little reminders to push you in the right direction.  What is cool is that eventually it will become second nature!

If you invest in Short Sales or have ever thought of doing so, one of the first acronyms you will learn is “BPO”.  That simply means “Broker’s Price Opinion”.  I have been involved with real estate long enough to hear many different thoughts on the BPO.  I have heard the process of affecting the BPO as “influencing the BPO” and the more PC version “educating the BPO”.  Well I am writing this today to let you know about a recent conversation I had with my brother.  It all stems from the recent launch of DC Fawcett’s “Virtual Short Sale Investing Blueprints”.

I want to preface what I am about to say that I have not yet practiced this new method.  And I am not saying that DC is wrong in the way he teaches.  I just want to offer a different spin on the BPO process.

I would also like to say that this conversation again was with my brother.  Graham Treakle has been a short sale expert for many many years.  He is responsible for me being where I am today.  Graham is responsible for many successful investors across the United States.  Graham, besides being my brother, is a very trusted and well respected figure in the industry.

The other day after I was reviewing DC’s materials and speaking about the investment philosophy with my brother, we had a very enlightening conversation.  Graham also offers a similar program to DC’s with a few different spins.

Anyway, DC teaches that you get the high-end property under contract and remove it from the MLS prior to educating the BPO.  Then, once you have an accepted short sale offer, you list it back in the MLS at a quick-sale price. You do this because you do not want the current list price to play a factor when an agent is conducting the BPO.  If it is listed at X dollars, the BPO will come in at X dollars.

I have not yet reviewed DC’s full course…it is in route to my front door as we speak.  And before I go against what DC teaches, let me say that I am sure his method works.  In fact, I think DC has an excellent program and would like to congratulate everyone who invested.  As you can tell, I am trying to tip-toe around this as gently as possible.  DC is someone whom I respect very much.

My conversation with Graham pointed out one potential flaw to the system.  Once you have the short sale accepted, the lender will give you 30 days to close on the property.  You can often get an extension to 60 days, but nonetheless, you are dealing with a short time frame in which to close on the property.

Now what if, and this is a hypothesis, you get the property under contract.  Then you remove it from the MLS for a few days and have the agent re-list the property at the price you want the BPO to come in at.  This price is the quick-sale price that DC refers to.  This is the price that you feel confident that the home will sell quickly.  But because you have not waited for the accepted short sale offer, you have the property listed in the MLS at that quick-sale price for an additional 60-90 days or however long the short sale process takes.

When the BPO comes in, it comes in at the listed price.  That is fine, because just by negotiating with the bank you will get them to take a certain percentage less than what the BPO comes in at.  Lets say that number is 80%.  Well then you still have 20% of room to play with and make your profits!

It may not be as big as the spread you can make following DC’s approach, but 20% on a million dollar property is still $200K!

The real kicker is that you have had an extra 60-90 days to locate a buyer for the home, thus ensuring that you will be able to close when the time comes.  You will have a list of interested buyers.  Granted, you do have to list the property as “Short Sale Pending”, but those extra days in the MLS could make a huge difference in whether or not you are able to sell the property.

I will give you an update on this when I get DC’s full course in the mail and when I close a deal following this approach as well.

If you have closed a deal this way, please let me know.  And also give me your thoughts.  Like I mentioned, I have not closed a deal this way but will let you know when I do.

Cheers,

~ Ross Treakle

I have been an entrepreneur for a few years now and the one thing that I have determine3d is that you should always expect the worst.  When going into any business, you should always have a plan in case things go terribly wrong.

The worst case scenario is not always the one that pans out, but it is good to have something to fall back on in case that does happen.  I have been involved in countless business ventures that have failed.  But I have also been involved in a few that have been huge successes.  I would add that the biggest lessons learned always come from the failures.

The failures and the worst case scenarios are what lead you to the next project.  My business is ever evolving…on a day by day basis!  It is those who adapt and change with the times that will see success.  Not every project is going to be a home-run, not every property is going to make you money, but the perseverance is what will lead you on that path.

I am working on a project currently that he developed into something we are now seeking VC money to complete.  if you had asked me a few years back, this project would not have been anywhere on my radar.  Hec, if you would have asked me a few months back, the direction in which things were progressing is a lot different than it is now.

Whatever your dreams, whatever your desires….Don’t give up, don’t ever give up.

If you were to ask any successful business person, I would guess that 9 out of 10 failed at a few businesses before falling backwards into their present gig.

Hell, this blog was meant to be a source that I posted to multiple times per week…but life and business got in the way.  I was supposed to always write about real estate investing, this post has nothing to do with that!  It is more of my rambling thoughts!

Hell, lets make it pertain to real estate…at your next real estate investment club meeting, go around and ask everyone there who is ACTIVE in real estate investing how they fund their deals…

I bet you will find a majority of them are using private money…My buddy Patrick Riddle asked this question at his local club, watch the video for results:

My Gift To You

Cheers,

~ Ross Treakle

Over the next few days I am going to give you a sneak peak at the REI Concepts Magazine.  The REI Concepts Magazine is a digital magazine geared towards the real estate investor.  We have 7 real estate investment experts who have contributed their knowledge to the very first issue due out April 1st.  Between now and April 1st, we are going to allow our subscribers to get the complete first issue for $1.  But before I give you more information, I want to share an excerpt from one of our contributing experts Andy Heller.

“We didn’t want to waste money on an improvement that wasn’t really necessary. But ultimately, we had to get somebody in the home. And over the three or four weeks that we showed the property, we noticed that people walked the property and they were generally unimpressed.

They were excited when we spoke to them before they walked into the home about our lease purchase terms, but when they walked through the property, they lost their excitement. So, we thought about something, and we tried it with this property, that eventually has become a staple of how we market our homes, and how you could end up spending a lot of money in many different ways, and you can have ten families look at the home, and ten families would have spent the money in different ways.

So, the challenge to the real estate investor is make sure if you buy a property like this, you don’t waste a lot of money, but you still fill the home.

So, back to our story. We saw that we were showing the property, and it wasn’t impressing the prospective lease purchasers, so we tried something called an Improvement Allowance.

And what that is, is we put it on the flyer for the property. It said, seller offers improvement allowance. Now, that doesn’t really say anything to anybody, but it puts you in a position when you are showing the property to have a chance to explain it.”

If you would like to get your hands on the very first issue of the REI Concepts Magazine, you can do so for only $1 if you sign up before April 1st.

PLEASE NOTE: You will receive the first issue on April 1st.  The $1 issue comes with a 30 day trial to review all the materials.  If you decide that you would like to continue to receive the REI Concepts Magazine, you will be billed $47 every month for your copy.  If you would like to cancel, you can just email me at rtreakle(at)reinvestingsuccess.com.

Get Your $1 Issue Of The REI Concepts Magazine

Cheers,

~ Ross Treakle

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