Cyba's Real Estate Investor Thread (What would I do if I started over today?)

[CybaCipha]

Marketing seems to be the key. I'm reading Guerilla marketing and looking at than merrill's marketing course. He was at the REIA last nite. So many people went up to buy his $2k course. I went to ebay and sure enough, I can buy his whole course for $600.

HAHHA

Than is that dude. I was on Than's very first episode of his FLIP THIS HOUSE ... at least I was at the taping and was on film. I don't know if I made it to the screen or the cutting room floor.

He just revamped all his courses at the end of last year beginning of this year. Make sure the shit you are looking at is from late 08 - 09. He didn't know shit about the internet back then. He is that dude right now.

 

[hubris]

HAHHA

Than is that dude. I was on the very first episode of his FLIP THIS HOUSE ... at least I was at the taping and was on film. I don't know if I made it to the screen or the cutting room floor.

He just revamped all his courses at the end of last year beginning of this year. Make sure the shit you are looking at is from late 08 - 09. He didn't know shit about the internet back then. He is that dude right now.

Yeah, it is different. i'll just have to wait to get that one unless I find another one heavy on 'net marketing. Than's course last nite was heavy on the internet side of things and talked about 'sales team live'. wooo! that joint is steep.

 

[CybaCipha]

Yeah, it is different. i'll just have to wait to get that one unless I find another one heavy on 'net marketing. Than's course last nite was heavy on the internet side of things and talked about 'sales team live'. wooo! that joint is steep.

you ain't ready for Salesteam live ... me neither. Just build it slow and steady, the money will come. Honestly I just restarted and As I'm writing the tips in this thread I'm either doing or re-doing so I can not only say what I do but do what I say. FEEL ME?

Peace.

 

[hubris]

Today I went to the HUD/REO subgroup. I am going to hammer down a business plan and some specific goals. Speaking to the leader made me realize that I need to know what part of RE I want to be involved in.
He was currently using the buy and hold method with the REO's and HUD homes. That way he can purchase a property that produces cash flow and refi to take out the down payment he used to pick another crib.
He also was against LLC's and for umbrella insurance added to his primary residence insurance. He said it was four hundred dollars per year. Interesting stuff.
Off to looking for the business plan software.

 

[hubris]

This business plan is no joke. I'm gonna have to take more time with this.

 

[CybaCipha]

This business plan is no joke. I'm gonna have to take more time with this.

Here are some resources and an online class.
http://www.sba.gov/smallbusinessplanner/plan/writeabusinessplan/SERV_BUSPLANFAQS.html
http://www.myownbusiness.org/s2/index.html

Why write a business plan?
Some of you dudes need focus. Besides that a business plan gives you the roadmap you need to make your business productive and viable. It helps brings your goals to light and keeps them in front of you in a detailed yet concise manner. It gives you a realistic idea of where you are today and helps define the things you need to get to that ultimate goal.

Parts of a business plan:

1. Executive Summary. The executive summary is so important. This should be the first thing you write. Don't do anything else until completing this step. You can always correct it or make changes later but do not skip this step.

2. Table of Contents. A table of contents is exactly what you'd expect. Microsoft word has a feature that will allow you to create the table of contents automatically. Make sure its organized and numbered when you are done with your business plan.

3. Company Description. Here's your chance to lay the foundation and history of your company. Most business plans deal with the expansion and improvement of existing businesses rather than with the funding of start-ups. Now's the time to brag (factually) about how you transformed BGOL Strippaz Ltd. from a corner staple to a strong local employer that's helping single mothers fund their college careers.

Things to include:

* Tell 'em how you got started and how the company has grown.
* Provide a history of sales, profits, and other important numbers.
* Lead up to a description of where you are now, and what plans you have for the future. If you have no sales just say you are a start up.
Make sure this is honest account. Potential investors will doubt the credibility of someone who appears never to have run into any problems. Talking about how you had initial challenges and then overcame them with flying colors will make you look all the better.

4. Product/Service. Describe your service in plain english. Leave the hood at home and the use of too many syllable words alone.

How does your service smell? What does it do? What differentiates it from all the other real estate redevelopment companies out there? How does it improve people's lives? What prevents someone else from doing the same thing more cheaply? What kind of equipment do you need? Do you have, or can you get, patent protection? Put yourself in the shoes of the investor and ask yourself what you yourself would want to know before agreeing to give you a large amount of money ("large" being most likely at least tens of thousands of dollars).

5. Market Analysis. You need to demonstrate that you have thought about what to do when the housing market tanks, what to do when it starts to climb. How do you roll in a buyers market? How do you roll in a sellers market? How are you keeping abreast of government regulations like the stimulus bill? How is the HOHO act affecting your business? Tighter restrictions are making it more difficult for retail buyers to buy. What are you changing to keep you business afloat? Are you linked with a credit specialist that will help them improve their credit in the next few months so you can invite them to purchase the next property?

Market analysis includes your sagacious discussion of industry characteristics and trends, projected growth, customer behavior, complementary products/services, barriers of entry, and so on. To do this effectively, you'll have to do a ton of research. Angels and VCs are suckers for good solid research (as they should be!), so pull out all the stops. Talk about how similar products/services have done well in the market, how you're fulfilling an obvious need, and exactly who you expect to purchase your services. Show them that in this cutthroat world of Real estate, you can hang in there.

6. Marketing Plan. Following your exposition of what the market is like comes your grand strategy of how you plan to get the word out. You have to detail exactly what steps you will take to ensure that customers know about your product/service and prefer it over the competition. Be as detailed as you can, and give several different tactics (start off with the cheapest marketing tactic like the internet or flyers, and proceed to the most expensive - tv and radio ads or billboards).

7. Operations Plan. The nuts and bolts. You gave them vague assurances in your executive summary that you'd be able to run your business; now they need to understand how you plan to execute. Location, bricks and mortar, equipment needs, and labor requirements are laid out here in black and white.

8. Financial Plan. The numbers. You might not like this portion but once its done ... the hard part is over. Even if your pops is an accountant, you need to do this part yourself to get some knowledge of sales forecasts, profit-and-loss statements, cash flow projections, balance sheets, and standard biz ratios. Investors will expect you to be completely independent in this important area of knowledge; if they call you saying they'd like to set up a meeting with you, they will as you questions about your financial plan and you will be expected to act intelligently.

9. Management. Never underestimate the importance of the collective genius of your management team. VCs will take a great management team with a mediocre business model over a great business model with mediocre management any day of the week. If you have somebody in the team (or at least on your board or among your advisors), who's had serious entrepreneurial success, you'll earn double bonus points from investors. Wouldn't you trust a business plan that said that Bill Gates was on the Board of Directors?

10. Appendices. This part has all of the necessary documentation like your resume, promotional materials and any independent assessments.

 

[hubris]

thanks, man! It's giving me a clearer vision of my goals.

 

[marcvoi]

bump

 

[hubris]

what are you using for direct mailing campaigns? is your automated?

and what are you using for leads, man?

 

[CybaCipha]

what are you using for direct mailing campaigns? is your automated?

and what are you using for leads, man?

I'm doing my mail campaigns the old fashioned way. MS Word.

I don't buy lists so I'm searching the internet, flyers, posts at the supermarket and laundrymat, looking in the paper and going to the courthouse.

Lets just say I'm starting over with this thread. I'm trying to implement everything I post so its gonna take me a minute to get to the lead generation piece of it. I'm going to hit infrastructure first before I get into lead generation.

Peace

 

[hubris]

Thanks.
Writing my business plan has made me hammer down specifics. For my marketing portion I'm a little lost. I want to start furious with it.

 

[CybaCipha]

Thanks.
Writing my business plan has made me hammer down specifics. For my marketing portion I'm a little lost. I want to start furious with it.

Good that is the plan. I'm hammering out some other tips you might want to read before you go hard. Give me a couple days.

 

[PLASMA CANNON]

FIRE!!..ASS POST MAN..MUCH PROPS FAM THX....​

 

[Nolimitracing]

Hello,

Excellent info and we are all very grateful to you for voluntarily sharing this wealth of experience and insight.

I work in Real Estate acquisition and finance and Im always in search of a partnership with like minded individuals who would be interested if I was to send them many pre-approved, ready to buy buyers in return for your assurance that my clients will be treated like kings and queens?

There is a secret that can explode your business faster than you imagine. If you are interested I will tell you what it is for FREE!

I am frustrated with the services I have received from other Realtors/Investors I have recently worked with. I have been fortunate enough to be able to create a system that lets me work with many homebuyers before they actually look for a house. But I cannot find qualified Realtors or Investors that will treat these buyers with the excellence they deserve.

At my company, we have systems in place to guarantee us a steady stream of buyers. Our systems are so effective, that we can even take your database and leads and convert a higher percentage of them into buyers. With our resources we can qualify 97% of all clients we come in contact with.

I get clients every month that are looking to purchase homes. It seems that if the buyer is not buying a million dollar home, no one wants to spend any time working with them. My clients are real borrowers looking to purchase homes anywhere from $150,000 to $450,000, and they need the support, assistance, and quality service they deserve.

That is why I need some help:

1. I am looking for a Realtor who will help my buyers without pressure and manipulation.

2. A Realtor that will spend the time and effort necessary to help my buyers find the homes of their dreams.

3. I am looking for someone who will be a good reflection of me. Someone that the buyers can talk to their friends about. And who will make the buyers thank me for recommending them.

4. I am looking for one who is looking to increase their income and mine, by using profitable systems to deliver superior service to clients again and again.

If you are interested in having me send you 6 to 12 additional transactions over the next 12 months, please me a call at 888-758-5980 ext 228 or email me at: pngalame@fmbranch.com.

I’ll be looking forward to hearing from you.

Paul Ngalame
Freedom Mortgage Corporation
A Direct FHA Insured Lender

P.S. When you call, ask me to show you how I can double the amount your buyers can afford using our POWER programs, and how You Can Double Your Income in 90 Days without lifting a finger or spending a dime!!!

 

[CybaCipha]

Hello,

Excellent info and we are all very grateful to you for voluntarily sharing this wealth of experience and insight.

I work in Real Estate acquisition and finance and Im always in search of a partnership with like minded individuals who would be interested if I was to send them many pre-approved, ready to buy buyers in return for your assurance that my clients will be treated like kings and queens?

There is a secret that can explode your business faster than you imagine. If you are interested I will tell you what it is for FREE!

I am frustrated with the services I have received from other Realtors/Investors I have recently worked with. I have been fortunate enough to be able to create a system that lets me work with many homebuyers before they actually look for a house. But I cannot find qualified Realtors or Investors that will treat these buyers with the excellence they deserve.

At my company, we have systems in place to guarantee us a steady stream of buyers. Our systems are so effective, that we can even take your database and leads and convert a higher percentage of them into buyers. With our resources we can qualify 97% of all clients we come in contact with.

I get clients every month that are looking to purchase homes. It seems that if the buyer is not buying a million dollar home, no one wants to spend any time working with them. My clients are real borrowers looking to purchase homes anywhere from $150,000 to $450,000, and they need the support, assistance, and quality service they deserve.

That is why I need some help:

1. I am looking for a Realtor who will help my buyers without pressure and manipulation.

2. A Realtor that will spend the time and effort necessary to help my buyers find the homes of their dreams.

3. I am looking for someone who will be a good reflection of me. Someone that the buyers can talk to their friends about. And who will make the buyers thank me for recommending them.

4. I am looking for one who is looking to increase their income and mine, by using profitable systems to deliver superior service to clients again and again.

If you are interested in having me send you 6 to 12 additional transactions over the next 12 months, please me a call at 888-758-5980 ext 228 or email me at: pngalame@fmbranch.com.

I’ll be looking forward to hearing from you.

Paul Ngalame
Freedom Mortgage Corporation
A Direct FHA Insured Lender

P.S. When you call, ask me to show you how I can double the amount your buyers can afford using our POWER programs, and how You Can Double Your Income in 90 Days without lifting a finger or spending a dime!!!

OK no limit, I'll give you one chance and if you fuck it up you will be banned from BGOL forever.

I am currently preparing for 2 exams so I put my RE business on hold for 2 months. We will build then.

 

[456.North.side]

damn where have I ben

 

[qwest]

Thanks for the info

 

[CybaCipha]

Once you have your business plan. There are a couple roads you can follow.
1. You can incorporate right away.

Incorporation for RE thread: **coming soon**
​

2. Do that first deal and see if you want to do this long term.

Either way, now that you have performed the previous steps ... you have a clearer vision of where you want to take this RE Business.

Image:
Do you have a business name yet? Pick one (even if you aren't incorporating right now think about your name and image).

Do you have colors yet? Talk to somebody. See what other people in your area are doing.

Do you have a logo yet? Mad heads on the board do logos. Webbootie God is really cheap right now. Hit him up before his rates go up. The Show also did a logo for me for CYBASECRETS dot com. Hit him up too. He's hungry to test his skills right now and will also give you a great price.

Do you have a website? If not start thinking about one. You can get name and hosting from PhillyPhilly.

Your main website will be the site you use to market yourself and provide information about your company and what you plan to do. Since you are just starting out... get a blog at least so you can start using the power of the internet to your advantage.
- Buy a domain name today.
- start a blog today and start writing about what you are doing or what you plan to do. You can always get it professionally designed later on.
- When it comes to website ranking there are a few things to keep in mind.

• Longevity - the longer the website exists the higher your ranking.
• Relavance - just because you owned the name for 10 years might be a good thing but it's not gonna help if you ain't doing squat with it. At the very least start a blog and start writing once or twice a week.

- eventually you will need a buyers site so when you market to buyers they go to a site that is catered to them.
- you will also need a sellers site for the same reason.

Why is image important?
You will be marketing for buyers, you will be networking, you will be marketing for sellers, you will be trying to get your name out there. Your image on your marketing, business cards, letter heads, etc. will be the first impression that people get and you know what they say about first impressions!

Here are just a few examples of how you will be using your marketing. It needs to be consistent throughout all of your business messages.

Offline Marketing
- Printed media (flyers, postings at the laundrymat/supermarket, leaflets, etc)
- Referrals (business cards/letters to professionals)
- Direct Mail (letters to sellers)
- Outdoor Signage - (bandit signs, door hangers, etc.)
- Newspaper Advertising
- Networking (REIA meetings, Auctions, community board meetings, etc)

Online Marketing
- Mass emails
- Auto Responders
- Online Classifieds (Craigslist, kijiji, backpage, etc.)
- Social Networks (facebook, myspace, digg, twitter, etc.)
- Videos (Vimeo, youtube, your blog, viddler, etc.)
- Article Marketing (hubpages, others)
- Yahoo Groups
- Blogging (your blog, linkbacks/trackbacks, other peoples blogs)
- Ebay
- Ad Words (Google, others)

 

[CybaCipha]

Researching your Local Market

Market Conditions
You need to learn what your local market is like. You have done some research by "driving your neighborhood" during the beginning stages. You have visited open houses and are a member of your local REIA.

Now its time to study your market conditions. Studying this information will help you identify where the opportunities lie.

What is the average days on market and what is the median price range for your area? Talk to some realtors (more than 1) and call the National Association of Realtors.
You will always be looking for homes below the median price range.

Appreciation/Depreciation - What is the rate of appreciation/depreciation in your area? How fast does it fluctuate? You need to stay on top of this number, especially when you start holding, rehabbing or lease/optioning deals.

Housing Stock Supply - How many homes are on the market?

REO Inventory - How many homes are on the market? How many of those are bank owned?

Price - What is the price range of homes in your area?

Job and Population Growth/Decline
Where are the jobs going? Where are the people moving to?

www.census.gov - find out what's going on in your target area.
www.bls.gov - bureau of labor statistics - where are the jobs going?

What areas are transitioning?
What areas are under development or redevelopment?
- Where are they building homes in your area?
- Where is the growth happening?
- What areas of town are being redeveloped?
Find out when your next planning and zoning meeting is taking place.
- they know what's happening in your hood before the public does.
- How strict are the zoning regulations?

State Laws
What's going on in your state?
In NY they just passed a Equity Theft Prevention Act which will mess you up of you buy a home in foreclosure and the owner lives in the house. You will be sweating bricks for at least 2 years because the owners have 2 years to come after you and say that you jerked them.

Find out what's going on in your area.
Get a real estate lawyer on your team that won't charge you for every 10 minute phone call. Offer to take him to lunch once every couple months.
Go to google and type in "Anti investor laws" Your State i.e. NY

 

[CybaCipha]

Research your competition

How do you find your competition?

• Call all those "we buy houses" signs
• REIA Meetings
• Google Ad Words
• Craigslist/kijiji/backpage
• Lead generation sites you come across
• When you meet with a seller ask them about mailings they received from other investors.
• Yellow pages

Why do you need to know who your competition is?

• You can get to know them and learn from them.
• How can you work with them? How do they find deals? Can you bring them deals?
• How can they help you find opportunities in your area?
• How can you be different from them to separate yourself from all the other "We buy houses" guys?
• What types of deals are they doing?
• What is their experience level?
• How do they market?
• Find out what they are not doing and you can do those. i.e. if they are not doing rehabs ask them to send you all of their rehab deals and you guys can work a split.

What do I do when I finally meet them?

• Get their card.
• Go to their websites.
• Get their email address.
• Add them to your buyers list.
• Find out what they have in their inventory.
• Get on their buyers list.
• If you find a big player:
• Let them know you are new and want to learn the game.
• Find out if there is any way you can help them.
• Find a way to help them.
• Send a thank you note for the meeting.
• Shoot an email once a month or call once a month to keep in touch.

 

[CybaCipha]

Your skills

Have you ever thought about what you bring to the table? Do you know and understand your weaknesses? What areas are you going to need help in? When its time to hire somebody, are you going to look for somebody that has the same attributes as you do?


What are your skills? Do you know what your strengths or weaknesses are?
Take the Kolbe test or some other career assessment test to determine where you shine.

http://www.livecareer.com/home.aspx
http://hotjobs.yahoo.com/assessment
http://www.questcareer.com/career_assessment_resources.html
http://www.kolbe.com/
http://www.careerexplorer.net/aptitude.asp

 

[hubris]

Good drops.

 

[CybaCipha]

Good drops.

Thanks, let me know if there are any areas that are confusing or that need more explanation. I'm really trying to make this comprehensive without boring the reader.

I know I'm spending alot of time on research and setting up but if you don't set up correctly, you will lose.

Peace

 

[456.North.side]

Thanks, let me know if there are any areas that are confusing or that need more explanation. I'm really trying to make this comprehensive without boring the reader.

I know I'm spending alot of time on research and setting up but if you don't set up correctly, you will lose.

Peace

dont apologize for trying to help a muddafukkker for free at that, you are dropping jewels in this thread no doubt so DROP that chit homie, then add to it fukk it its better than what they would have otherwise

 

[CybaCipha]

dont apologize for trying to help a muddafukkker for free at that, you are dropping jewels in this thread no doubt so DROP that chit homie, then add to it fukk it its better than what they would have otherwise

Thanks fam I appreciate it. Hopefully somebody can use these and make some dough then fly me out to where they are for lunch as a thank you!

 

[456.North.side]

Thanks fam I appreciate it. Hopefully somebody can use these and make some dough then fly me out to where they are for lunch as a thank you!

You know BGOl a bunch of ungratful muddafukkas all day every day, Soon as I stablize the income with a 2nd gig I'll be looking to invest in this and other areas

 

[CybaCipha]

You know BGOl a bunch of ungratful muddafukkas all day every day, Soon as I stablize the income with a 2nd gig I'll be looking to invest in this and other areas

You know how to reach me when you need to fam! I'm working on my ends so I can start this RE shit again.

 

[hubris]

Thanks, let me know if there are any areas that are confusing or that need more explanation. I'm really trying to make this comprehensive without boring the reader.

I know I'm spending alot of time on research and setting up but if you don't set up correctly, you will lose.

Peace

You are doing the damn thing, Cyba. Infrastructure setup is the key. Break that chit all the way down for my simple azz.

 

[CybaCipha]

You are doing the damn thing, Cyba. Infrastructure setup is the key. Break that chit all the way down for my simple azz.

Thanks fam I will keep dropping heat.

 

[CybaCipha]

Next book you should be reading:

Book Description
Why do our headaches persist after taking a one-cent aspirin but disappear when we take a 50-cent aspirin?

Why does recalling the Ten Commandments reduce our tendency to lie, even when we couldn't possibly be caught?

Why do we splurge on a lavish meal but cut coupons to save twenty-five cents on a can of soup?

Why do we go back for second helpings at the unlimited buffet, even when our stomachs are already full?

And how did we ever start spending $4.15 on a cup of coffee when, just a few years ago, we used to pay less than a dollar?

When it comes to making decisions in our lives, we think we're in control. We think we're making smart, rational choices. But are we?

In a series of illuminating, often surprising experiments, MIT behavioral economist Dan Ariely refutes the common assumption that we behave in fundamentally rational ways. Blending everyday experience with groundbreaking research, Ariely explains how expectations, emotions, social norms, and other invisible, seemingly illogical forces skew our reasoning abilities.

Not only do we make astonishingly simple mistakes every day, but we make the same types of mistakes, Ariely discovers. We consistently overpay, underestimate, and procrastinate. We fail to understand the profound effects of our emotions on what we want, and we overvalue what we already own. Yet these misguided behaviors are neither random nor senseless. They're systematic and predictable—making us predictably irrational.

From drinking coffee to losing weight, from buying a car to choosing a romantic partner, Ariely explains how to break through these systematic patterns of thought to make better decisions. Predictably Irrational will change the way we interact with the world--one small decision at a time.

http://www.megaupload.com/?d=ISAAOZZ0

Chapter by chapter breakdown in my other thread.

http://www.bgol.us/board/showthread.php?t=370009


Download the pdf:

http://www.megaupload.com/?d=ISAAOZZ0

Audio Book:

http://test.lugmen.org.ar/~redondos/files/Dan%20Ariely%20-%20Predictably%20Irrational/m4b/

 

[CybaCipha]

bump

 

[consiglere]

Great thread! Cyba, can you recommend a good book about incorporating a business. Also, the tax advantages of incorporating. thanks

 

[CybaCipha]

Great thread! Cyba, can you recommend a good book about incorporating a business. Also, the tax advantages of incorporating. thanks

What are you incorporating? It depends on what kind of business you are trying to start, are you going to hire employees, etc.

I can't recommend any books, spend a day at the bookstore read through no less than 10 books and write down lots of questions. Take one home and read it.

Then go talk to a lawyer.

 

[consiglere]

What are you incorporating? It depends on what kind of business you are trying to start, are you going to hire employees, etc.

I can't recommend any books, spend a day at the bookstore read through no less than 10 books and write down lots of questions. Take one home and read it.

Then go talk to a lawyer.

Business will be primarily real estate investing and owning some rental properties. Employees...none at this time.
I found a book: .Incorporate.Your.Business.4Th.Edition

 

[456.North.side]

Bump biiiitches