the post recession survival guide - real estate investing · recession cowboys in the real estate...

THE POST RECESSION

SURVIVAL GUIDE

www.connectedinvestors.com

“ T h e s e c r e t o f

CHANGEi s t o f o c u s a l l o f y o u r e n e r g y ,

NOT ON FIGHTING THE OLD,

b u t o n

BUILDING THE NEW.”- S o c r a t e s

The New Real Estate Investing Era Is Upon Us and EVERYTHING has Changed, so here is the question...

WHAT IS YOUR NEXT MOVE?

HostRoss Hamilton

Your Rise toReal Estate Royalty

SIgnup-Free Gift

Need Deals... Now there is an APP for that

Need Funding For Investment Properties... Now there's an APP for that

Need to Manage & Scale your Business from your phone... Now there's an APP for that

Need an expert to GO TO a property & put together a valuation report... Now there's an APP for that

Need cash buyers, private lenders, contractors, investors in any location.....

SAY IT WITH ME.. " NOW THERE'S AN APP FOR THAT!"

On The Ci 3.0 Webinar....

Discover How To Survive & Thrive in The New Fast Moving, Tech Driven Era Of Real Estate Investing. It's Easier Than It's Ever Been...

When You're Connected & Have The Right Apps.

With Ross Hamilton, CEO of Connected Investors - The World's Largest Network Of Real Estate Investors

You will be sent a copy of my book "YOUR RISE TO REAL ESTATE ROYALTY" upon registration

+ PLUS the Real Estate Investors Post Recession Survival Guide

+ PLUS a special report showing the 100 real estate technology companies that can transform your business.

There is a small window to position yourself correctly or be made obsolete. Why is that? Because real estate has evolved and is changing at a very fast pace...

Learn how to benefit from all the change.

Sign up for the Webinar

CLICK HERE TOCLAIM YOUR SPOT

»» ««

http://deals.connectedinvestors.com/ebook

During the WebinarDiscover How...

YOU can Profit off the 3 new multi-billion dollar Real Estate Industries that have emerged In the last 10 Months.

New Apps Allow For Automated Deal Finding - Push Button Deal Financing & Done-for-You Valuations. (Experts Visit Your Property & Provide Detailed Reports)

NEW Software allows YOU to instantly cash in or out of RE Investments... A Wholesalers Dream. (This was considered impossible 10 months ago)

How to position yourself t0 generate real estate riches today… without any prior experience...(As a matter of fact prior experience could slow you down in this new age) ...without any cash... (No matter how much cash you have, never use your own) and without using your credit. (In today’s world money flows to deals not credit scores)

The 3 Ways YOU can profit in Real Estate today Faster than at any time in history!

How YOU Can Access The World's First Real Estate APP Market Allowing YOU To Flip Commercial & Residental Deals Directly From Your Smart Phone.

The 3 New Ways To Tap Into Off-Market Property Inventory. From your phone... (Meaning you can find deals while you're at work, waiting in line, or on vacation)

How a new "Lending Tree' Like Financing Soloution Allows New & Experienced Real Estate Investors To Have Lenders Competing To Lend Money At The Best Rates! (Based off the deal - not your credit)

New Technologies That Make Every Aspect of Real Estate Faster, Easier, & More Profitable.

We Mentioned This In Bullet Point 2, However It So Revolutinary, It's Worth Brining Up Again.... On the Call You Will Discover How to Automatically Find Off-Market Properties. How you Can now Push One Button And Have Lenders Fighting Over Financing Your deals. In Additition For The First Time In History You Can Push A Button And Have An Expert Visit A Property And Provide You With A Detailed Valuation Report. New BILLION Dollar Investments In Real Estate Technology & Data Companies Has Brought Into Reality Things Previously Thought Of As Impossible! My Team & I Are Going To Get You Up To Speed During This Special Training Webinar....

1

2

3

4

5

6

7

8

9

10

»» CLAIM YOUR SPOT NOW! ««

http://deals.connectedinvestors.com/ebook

THE POST RECESSION SURVIVAL GUIDE

IMPROVISE, ADAPT AND OVERCOME!

This quote from Clint Eastwood in Heartbreak Ridge pretty aptly describes today’s Post

Recession cowboys in the real estate investing space.

Pre-recession, we saw millions made in real estate investment. Money �owed freely

and everyone was getting in the game. And then the Crash. No one was immune to the

forces of the real estate economy – it impacted virtually everyone. Developers spent

more time in court than with their families. Newly minted millionaires, certain that

their buys were not speculative, lost it all. Hometown investors who weren’t careful

lost their asse(t)s on everything from �ips to lease options that wouldn’t appraise for

resale. Mortgage brokers went broke, and real estate agents cashing in on the demand

�ed for greener pastures. Even the big names, Trump and Kiyosaki, didn’t escape the

fallout. Trump University, capitalizing on a seemingly unending demand for real estate

investment education, went belly up. Robert Kiyosaki, the everyman sage, �led

bankruptcy.

During the run up, everyone thought they were blazing new trails, but the fact of the

matter is that getting in the game before the crash was pretty easy. It’s the real trail

blazers of today - the post recession cowboys – that we need to study and emulate.

Real estate investment, and frankly

nearly all lucrative endeavors these

days, require constant reinvention.




During the recession, values dropped and so did the availability of capital for many

investors. Mom and Pop house �ippers and landlords saw their acquisitions nearly

grind to a halt. Subsequently, in marched the big institutional buyers, snapping up

single family residential real estate in markets all over the U.S. in numbers previously

unheard of. Some estimates put their infusion of capital into the real estate market in

the tens of billions of dollars. Why? Change means opportunity. And often opportunity

requires change. Like the Heartbreak Ridge cowboy, Improvise, Adapt and Overcome!

Now we’re seeing some institutional buyers pull back, but not retreat. Yes, they’ve

again improvised, adapted and overcome. Blackstone, one of the most active

institutional buyers, is blazing an entirely new trail. Through B2R, Blackstone is now

funding Mom and Pop investors – who have traditionally held portfolios of single

family residential real estate.

They’re not the only ones venturing into new territory. Pay Pal and Linkedin veteran,

Keith Rabois is launching Open Door, a quasi-eBay for home sellers. A few clicks of the

mouse and the sell/buy is complete.

Sou

rce:

th

e Fu

ture

Ten

se



So what does all of this mean for you, the non-institutional real estate investor? Ya gotta

be a cowboy. Learn from the big investment houses how to reinvent yourself for today’s

real estate investing. We are in a new, fast moving era (Seriously? A few clicks and a

house is sold? Pro�tably? Yeh.) Change does equal opportunity and you can cash in.

But you have to face today’s realities. This is true whether you are ten days or ten years

into your investing career. The market will always shift and with it are shifts in how we

do business.

There is high demand for properties listed on the MLS. REOs are being attacked like

seagulls on a french fry. According to a recent Bloomberg report and most likely your

own observations, houses are moving. The great deals are seeing multiple offers and

going under contract fast. This means it’s more important than ever to Find Off-Market

Deals. This is true today and will be true tomorrow, regardless of the condition of the real

estate marketplace. Off market deals are where the real deals are found.

You have to �nd Alternative Sources of Funding. We already mentioned B2R. As the

traditional sources of real estate �nancing still haven’t gotten on board with funding

investors, we’re seeing even more private money lending. And we’re not talking only

about seller �nancing. More and more individuals who have little interest in owning and

managing real estate are “investing” in real estate through the use of the self-directed

IRA, which allows them to loan an investor capital for either �ipping houses or portfolio

holdings.

REALITY #1

REALITY #2



Technology has changed the way we buy, sell and manage real estate. New and

innovative technologies are coming into the market regularly. This holds true whether

you are an investor, mortgage broker or real estate agent. Zillow’s acquisition of Trulia

rocked the world of agents, and Placester promises to make the agents more relevant

in the face of an ever increasing mobile world. And as we’ve seen from the upcoming

launch of Open Door, it’ll change for home sellers too.

So let’s talk about WHAT YOU CAN DO to meet today’s realities head on and improvise,

adapt and overcome.

REALITY #3



FINDING OFF MARKET DEALS

The �rst thing you must realize is that real estate wealth is not a get rich quick

proposition. But it is a get rich proposition, whether you are �ipping houses or holding

cash �owing rentals. You’ve heard it before and we’ll repeat it because it’s true – you

make your money when you buy. Buy right, and there’s pro�t to be made. And buying

off-market deals offers some great advantages beyond the bottom line.

• There’s less Competition When you’re looking for off market deals, your

competition is limited to other investors who may be using the same deal

�nding strategies as you are. When you use the advanced deal �nding

strategies, you can keep great deals coming across your desk and cherry pick

only the best.

• There’s no Middleman Listed properties – especially the good deals, have

lots more moving parts – in essence, too many people in the middle of the

acquisition process. There’s the seller, the listing agent, the buying agent and

most likely their staff members. Too many cooks in the kitchen – but when

you’re focused on off market deals, it’s you and the seller. Making the effort to

�nd off market deals pays off with even better back end pro�ts.

• Win-Win Situation When there’s too much competition and too many cooks

in the kitchen, you lose �exibility to negotiate. And one of your biggest

advantages in acquiring great deals on investment real estate is the ability to

be nimble and negotiate your deals to a win-win outcome – whether it’s price

or terms or even better -- both!



Here’s a few do’s and don’ts for �nding off market deals.

DO

Understand that off market deals must be sought out.

DON’T

Make the mistake of thinking that off market means only a “For Sale by Owner”

property.

DO

DON’T



Network.

Networking gets results – and when done well, networking won’t cost you a lot of

money – just the opposite. It will make you money. And just like other types of

marketing, effective networking can deliver deals over and over again. As you get the

word out that you are buying houses, you’ll be surprised at how many leads you can

generate by simply, purposefully working your network for off market deals.

Make the mistake of thinking that networking is giving out a few business cards at the

business after hours or posting the occasional blurb on social media. Get real with

yourself and recognize that networking is about building relationships not just quick

hit communications.

Connected Investors has an entire Off-Market Deal Finding animated video training

series on Networking and more. You can �nd this in the Ci App store. This is a must

have for anyone struggling to �nd off-market deals.

DO

DON’T



Enlist the services of a Bird Dog.

Bird dogs are those people you put to work intentionally scouting areas for you. Since

you can’t be everywhere all of the time, bird dogs can expand your reach even beyond

your own Driving for Dollars and keep leads coming your way. Setting up a of couple

bird dogs to work with you is a simple process – but deserves to be set up properly so

that your bird dogs keep bringing deals your way. In our cartoon video series, we’ve

dedicated an entire segment to bird dogs because they’ve been proven to work.

Rely on only one deal �nding strategy. Bird Dogs are a great compliment to other strate-

gies but shouldn’t be your only one.

DO

DON’T



Use Bandit Signs for Marketing

In some areas, bandit signs are verboten. But in areas where they are allowed, these

little plastic signs scream for attention. And they get it. That’s why you see so many of

them. And if you have particularly lucrative farm areas, combine Driving for Dollars,

Bird Dogs and Bandit Signs to capture that market area.

Think that the sign police won’t �nd

you. And �ne you. Bandit signs are not

without controversy, so check your

local codes.

DO

DON’T



Use Direct Mail Marketing.

Direct mail marketing is the most cost prohibitive, but one of the most highly effective

ways to reach motivated sellers. There are many ways to identify and market to

motivated sellers. And even though it’s not cheapest route to take, you WILL get results.

You can’t mail to everyone, so who makes a good candidate to receive your mailing?

How about properties that have been inherited? What about the ubiquitous

foreclosures? Mailing lists are available or you can check your county records and

make your own list. What about absentee owners? They often get tired of trying to

manage a property that’s not in their home city. Often you can �nd this information in

your area’s tax records – or it’s even easier to buy a mailing list. Burned out landlords

can also be a great source. There are a lot of accidental landlords out there too.

Checking the eviction records in your city can help you �nd potentially motivated

landlords ready to dump that headache of a house. If you have particular areas where

you want to buy houses, consider “farming” those areas. You can get mailing lists for

the target areas and pare your list down to only those with equity.

Be a one-hit wonder. Direct mail

works best with repeat contact.

You build awareness with multiple

mailings. Also, don’t initiate a

direct mail campaign without

doing your homework. Your best

mailings will be targeted and

timely.

DO

DON’T



ALTERNATIVE SOURCES OF FUNDING

Now that we’ve identi�ed some of the ways you can �nd off-market deals, we need to

fund those deals, so let’s look at

Financing for real estate investors has changed dramatically since the meltdown. But

that doesn’t mean there aren’t ways to fund your deals. A few do’s and don’ts for

�nding those sources follow.

Seek out Private Money Sources.

We already mentioned the Self-Directed IRA for funding deals. You can use your own

or the SD IRA of others. How do you �nd the others? Yeah, it’s that whole networking

thing again. Then there’s seller �nancing. You can �nd seller �nanced deals through:

a) Yes, networking and b) Targeted direct mail. You’ve probably heard of or maybe

even participated in Crowdfunding. Fortunately for you, the real estate investor,

Crowdfunding has arrived and is a viable source of dollars for your deals. According

to Nav Athwal, Cofounder and CEO of RealtyShares, in 2013 alone crowdfunding

(including debt, equity, rewards and donation based crowdfunding) is responsible for

approximately $5 billion worth of capital raised. Viable does seem to be the key word

here.

Be a one-trick pony when it comes to funding your deals. Funding sources dry up. Just

ask any investor who relied solely on institutional �nancing how they know.

DO

DON’T



Collaborate, Partner and Pro�t.

Make the mistake of thinking that networking is giving out a few business cards at the

business after hours or posting the occasional blurb on social media. Get real with

yourself and recognize that networking is about building relationships not just quick

hit communications.

Connected Investors has an entire Off-Market Deal Finding animated video training

series on Networking and more. You can �nd this in the Ci App store. This is a must

have for anyone struggling to �nd off-market deals.

Enter into partnerships without clarity and agreement. There are pitfalls. Don’t ignore

the essential ingredients to a successful partnership.

DO

DON’T



TECHNOLOGY HAS CHANGED

Change with it.

We know that the real estate marketplace will always evolve. We know that access to

capital will evolve as well, and we also know that technology pre- and post-crash are

very different animals. You are probably reading this on a mobile device. It’s likely that

you found Connected Investors through social media. Before the crash, real

estate-related technology was still in its infancy. Zillow launched in 2005 by former

Microsoft execs, Rich Barton and Lloyd Frink. In 2006, Trulia was rolled out and in 2014

Zillow purchased Trulia for $3.5 billion. And in recent years, $7.5 million has been

invested in real estate tech companies. Now more than ever, real estate technology is

more than relevant, it is a necessity – there’s everything from buyer tools, to CRM to

marketing systems.

Let’s look at a few do’s and don’ts for investing in a post-recession technology era.

Use technology as a tool, not a toy.

The days of the mobile device as a novelty are long gone. It’s pretty clear that real

dollars are being invested in real tools to make acquisition, management and selling

real estate more streamlined.

Think that an old dog can’t learn new tricks. No

matter what your level of experience in real

estate investing, you’ll be left behind if at some

level your investing isn’t capitalizing on the

reach of technology.

DO

DON’T



Develop a mobile strategy.

It used to be that a static website presence was the norm for many real estate

investors. Today’s tools allow for a responsive online presence that works across the

spectrum of the online space – whether its smart phones, tablets or laptops.

Over think it and then ultimately ignore it. There are lots of ways to make your web

presence responsive. GTS.

Develop and Maintain a Social Media Strategy.

As powerful as networking is, the fact remains that you cannot be everywhere all of the

time. But your social media can keep you “out there” day and night generating leads.

We’re not talking about a facebook post here. The rubber hits the road when you imple-

ment a few key ingredients like how-to articles, video tutorials, interviews and testi-

monials, webinars and podcasts and market reports. Add value for your potential cus-

tomers, establish credibility and build business in a post recession tech era.

DO

DON’T

DO

Sou

rce:

fre

shw

ebte

ch.c

om



Reinvention is the name of the game. Technology won’t stop, and the market and

�nance won’t remain static, and neither should you. To avoid obsolescence in a fast

moving real estate economy, we leave you with four important strategies.

1. Read as much as you can. The interweb is loaded with learning

opportunities to keep yourself in the know.

2. Get to know the experts. No matter where you invest, there are others who

know more than you do. Tap into their knowledge. Take them lunch. Go where

the experts go and learn what they learn. They got to be experts by learning

and engaging in Strategy #1. Get some of that.

3. Take time to explore new stuff. That doesn’t mean suddenly deciding that

mobile home parks are your new playground after reading one blog post. It

means exploring and opening your experiences to new things. And, if viable

for you and your investment goals, dig deeper.

4. Go to industry events. People gather to share information. Big conferences

and learning events are invaluable for boosting your knowledge and your

network.

Post recession investing is rife with opportunities. New or seasoned investor – it

doesn’t matter. The key to longevity and success, no matter how stormy the water, is

to continually reinvent oneself - improvise, adapt and overcome.

the post recession survival guide - real estate investing · recession cowboys in the real estate...

Documents