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How To Make Your First 10K As An Investor
Joe: Hey, it’s Joe Crump. This video is about how to make your first $10,000 as an investor. Everybody that gets into this business, especially when you’re brand new, you want to know how am I going to get that money? How can I get money coming in as quickly as possible? I’ve seen people make money in a matter of a couple of weeks. I’ve seen people make money, it take them three or four months longer. I usually tell my mentor students that it takes three or four months before you can expect to make money. But I’ve also seen people do it a lot faster, depending on the skill level that you have coming in, some of the knowledge that you have coming in. And the technique that you’re using. So many people start with the wrong technique. And then they have to spend months and months working on that technique, and that didn’t work, and then they have to find another technique and they work on that one for a while and then they go out and you know, they’ll spend some money on this person and learn one technique from them and another one from this guy over here and another one from this person over here.
Joe: And they’ll try a lot of things and none of it will come together. They’re looking for, we’re all looking for a quick fix. We’re all looking to try to make this happen as absolutely as quickly as possible. So, what I’m going to suggest to you is that you do this using the same techniques that I teach my mentor students, using a technique that I call the For Rent Method. This is an amalgam of different types of techniques that we’ve used over the years, but we pretty much created this technique back in early 2000’s – the aughts – and it’s worked for us ever since in every market that we’ve worked in.
Joe: It’s worked in high-end markets, it’s worked in low-end markets. It’s worked in appreciating markets and depreciating markets, stagnant markets, you know, fast growing markets. And all over the country. It’s also worked overseas. We’ve had it, people use it in Canada, well that’s not overseas, but, Canada, we’ve had it work in Europe, Finland, Sweden, Australia, the UK – we’ve had it all over the world.
Joe: I had a guy in Kazakhstan who used this very system and he made a chunk of money in a very short period of time. So I think that if you use this technique it’s going to help you get there a lot faster. Now, one of the things I want to warn you going in, the concept of the technique is very simple, and that’s what I want to teach you today. Learning how to do it, that takes a little bit more time. Learning how to talk to people intelligently so that they believe you, so that they trust you, so that they believe that you have a real solution for their problem and that you will do what you say you’re going to do.
Joe: That takes a little bit of practice and a little bit of skill and the way to learn this process is by doing it. So, what I’m going to suggest is you get on the phone and you start asking these questions of people that are selling their home for sale by owner, and seeing if you can put these deals together. So here’s the technique.
Joe: It’s called the For Rent Method. Basically, what we’re doing is, we’re calling up for sale by owners, or people who have their properties listed for rent on any one of the for sale by owner sites, craigslist, Zillow, Trulia, Redfin, any of those places you can go to. Our Automarketer goes into those places as well and actually scrapes those ads and we contact those people with a text. And that text says, “Would you consider selling your home rent to buy?” And then we get responses. And we typically get anywhere from 10% to 60% of the people we send out texts to to respond to us. And on average, between 50% and 80% of them will say “No” right off the bat. “No, I’m not interested,” “No, I need cash for this property,” whatever.
Joe: Those people go into a follow-up system that’s automatically built in to the system. So, three days later they’ll get another email or another text. Three days after that they’ll get another one. A week after that they get another one. And that follow up process goes on for three months in a row. A lot of the times when we’re sending out these text messages to people who are for sale by owner, the first week they’re in the process they’re all gung ho. They think they’re going to get it sold themselves. But we know that 85% to 95% according to the National Association of Realtors do not succeed as for sale by owners. They either have to take their property off the market or they typically would list it with a realtor. We’re giving them a third alternative that we can do. And we can actually solve the problem for them.
Joe: So, we know most of them aren’t going to sell. But at the beginning they’re all optimistic, thinking that it’s going to happen. But, after a week, after six weeks, after two months, after three months, there’s a point where they say, “Oh, this isn’t going to work. I’m not getting it sold. The people that tell me they’re going to buy it don’t actually buy it. What do I do?
Joe: And if we’re dripping on them through this whole process with our text messages, automatic text messages, the likelihood is that they’re going to remember who we are and, hey, this guy’s still at it. He’s still interested, maybe I should give him a call now even though they said no to us two or three times before. Also, in this series of follow up messages that we have, there’s links to our clone sites and we have three different sites that we send them to. We send them to the Rent to Own seller site, which explains how the For Rent Method works. It lays it all out for them, has a form for them to fill out so that if they’re interested they can fill out this form and it gives us all their information and then we can get their property put together and sold. It also sends them to what I call the We Will Buy site, it’s the We Buy Houses For Cash site where you can engineer just about any of the zero down structures I teach – subject to, multi-mortgage, you know, land contract, contract for deed, assignable cash offers, lease options – we use all those zero-down cash offers with that particular website.
Joe: And then the third one is the subject to website where we explain how subject to works, how we can buy their property at subject to the existing loan, take it over, take it off their hands – they never have to worry about it again. So, it gives them options to do it different ways over a period of time, making it possible for us to find more people because we have more than one tool to solve the problem.
Joe: You know, if all you have is a hammer, everything looks like a nail. So, what we’ve got is multiple ways to buy the property that are going to be profitable to us, but also will make sense for them and make sense for their situation. And they don’t have to dramatically discount their property for us to work. We only use one technique where we need dramatic discounts on the cash and that’s when we buy cash. Remember, there’s only two ways that you make money as an investor. One, is you buy property dramatically below market value for cash, or, two, you buy properties on terms and you can pay them closer to real market value and still make a profit. And those are the things that we do with this.
Joe: But this particular technique that we’re talking about, if they call us back and they say, “Yes, I’d be interested in this,” then what we do is have them sign a lease option memo that puts us in control of the property, makes us a principal in the transaction, so it makes it legal for you to sell a property that you don’t own, even without a real estate license.
Joe: So you can then turn around, raise the price, and put it on the market, sell it for $5,000, $10,000 more than you paid for it, and depending on the price range of the property, if it’s a cheaper property you know, maybe under $100,000, you’re maybe only going to get $5,000. Typically we’re going to get $5,000 to $10,000 on any property under $250,000. Over $250,000, you’re looking at $10,000 to $20,000 that you can usually make on properties like that. So, depending the market that you’re working in, you can make more money on bigger properties. And there’s a lot of different ways that we can increase the amount that we’re making on every deal, but if you can just make that first $5,000 or $10,000, and get that money coming in, then you’ve got your business started and you feel like, hey, I can really make this work.
Joe: And then you start automating that process by using the Automarketer, and using these drip systems and getting a pipeline of deals that are constantly coming in so that you can have not just the first deal, but deal after deal after deal every week that comes in.
Joe: Anyway. I hope that answers the question.