Larry Goins Ultimate Buying Selling Machine
Wholesaler · Los Angeles, CA · Member since 2009 · 48 posts · 28 votes
I have heard a lot of good things about Larry Goins and his Ultimate Buying Selling machine. How does it compare to Eric Medemar's Real Estate Investing Course: Ultimate Wholesaling, which I purchased recently? Is one easier than the other? Has anyone found success with Eric's system?
Has anyone purchased Eric's system and made money using it, in a relatively short time frame, like he advertises (3 - 6 months)? Can this really be done with no / very little money? I have never done a real estate deal but am very eager to get started.
I live in LA and there is a lot of competition for the deals, with numerous established with deep pockets. Is there a way to start using this techniques in a smaller market so I don't get outgunned and outbid immediately by the big players in town?
Hi Adam,
First, don't fret. Yes, you can make money. The how is up to you. I am a newer REI as well. I shopped the gurus when I first started. That's actually how I found this site - researching a guru! Being new, I understand that you want to get started "yesterday". That fire inside is good, because you are going to need it.
However, you have to translate that fire into action. Everyone is right. Scour this site! I have honestly had a $10,000 education for FREE. When questions pop up, ask them. You will get great answers and excellent food for thought.
To me, with wholesaling, the bottom line is don't reinvent the wheel. DIFFERENTIATE your wheel from the others.
I'm certain that you know the basic wholesaling steps...
You have to find a farm area, get to know it inside and out, including house values. As one member here says, visit 100 homes until you don't need anyone to provide comps to you. One or two well selected 1 x 1 mile radius farm areas can be mini gold mines for you. You just have to get out there and look, compare and make calls.
While you are doing this, locate buyers. Research this on this site. You will find all that you need to locate them.
I recommend prequalifying HML / Private Money, even if you do not plan on using it. You may end up with a deal where you need cash fast... having a list of those who will work with you and knowing what their qualification are for a deal will be priceless. And there are plenty of lenders out there, you just have to look.
Then you can work on locating properties within your farm area. All the steps on locating properties can be found on this site.
You're issue is competition. Don't let them psyche you out. All the big guns were toy pistols at one point, just like you.
I think you need to study your competition... and then DIFFERENTIATE yourself from them. Being in a larger market, there is more opportunity. Look at Tampa... how many wholesalers are successfully working it? If you feel more comfortable, look outside of LA. That area is like Chicago, there are tons of smaller towns outside of city limits. There are plenty of deals to go around...
Another thing, remember, this is your business. Creating a business plan with long and short term goals are very important. Setting well defined "hours of operation" are important as well. And stick to them like you are going to a second job. That's what I tell people... "I can't, I have to work". And if your current job doesn't allow, locate a partner who is willing to go into this with you.
No matter what, don't give up, because it's your drive and intensity that is going to matter the most.
Good luck,
Danielle
I would recommend doing some reading in the whole sale forums. Network with people here, many are very kind and willing to help.
Don't spend the money on Larry Goins Ultimate Buying Selling Course. I believe they try to sell it for $1,200. You can learn the same strategies and techniques in his book Getting Started in Real Estate Day Trading. It is well written and I would say is one of the best Real Estate Books I have read.
What you do not under stand, visit the BP forum and I am sure some one would be more then happy to assist you.
LeJonR
My biggest question, is how to find the deals. How do I find deals that other investors aren't aware of already? I have a full time job so I'm not able to scour for deals full time, yet I have heard of people doing wholesaling part time and doing quite well with it. I just need to discover the secret of finding these deals.
I have gone to some of the REI Club meetings but, most of the professional investors I have spoken to have told me that wholesaling is a bad idea in LA since there is so much competition and I should save money and purchase a property or invest with one of them.
I know they mean well, but to be completely honest with you, I don't want to wait for the next 10 or 20 years to save enough money from my day job in order to have a large enough down payment to buy a multifamily property in my area that will cash flow.
I want to start and it seems like wholesaling is a good first step for a lot of people.
Thanks for recommending the book. I'll read it, along with Eric's material and take it from there. I'm sure I'll have lots of questions and I appreciate your offer of help.
You will get a lot of "live", true and current information from this forum.
No offense, but you will not really understand how to find the deal with out running numbers and knowing what are good locations to be involved in along with many other issues. It take time, just begin reading and you will be ok.
LeJonR
When you do, you may have to go after the properties nobody wants to mess with. These usually take a lot of time and have headaches and in the end you may lose the deal, but these are good teeth cutters and prepare you for anything,
I have the same problem in Houston. You need to look outside of California - which is easily done. I do recommend you buy the course but since you have little money to work with I REALLY recommend you buy Larry Going's new course called Filthy Riches instead which has our group (Real Estate Investment Club Houston - one of the nation's largest) buzzing.
With the new potential changes in seller financing would Larry Goins program still work
Fifthy Riches
Joshua:
If HUD is successful with the proposed changes, the new Filthy Riches program that Larry Goins has would be flat lined so to speak, because it is based on seller financing the properties you buy and selling the notes that you create.
The law probably will not pass but even if it does Goins has work arounds that will be easy to implement.
Hi, I think the SAFE Act was passed they are taking comments for the implementation of the regulation! Seller financing is not dead, it just has new limitations as to how it will be allowed. There is really nothing about seller financing residential properties that you can't get an answer for right here! In fact, you'll probably find out more than any "program" provides. I'm pretty sure of it, Bill
Hi Adam,
First, don't fret. Yes, you can make money. The how is up to you. I am a newer REI as well. I shopped the gurus when I first started. That's actually how I found this site - researching a guru! Being new, I understand that you want to get started "yesterday". That fire inside is good, because you are going to need it.
However, you have to translate that fire into action. Everyone is right. Scour this site! I have honestly had a $10,000 education for FREE. When questions pop up, ask them. You will get great answers and excellent food for thought.
To me, with wholesaling, the bottom line is don't reinvent the wheel. DIFFERENTIATE your wheel from the others.
I'm certain that you know the basic wholesaling steps...
You have to find a farm area, get to know it inside and out, including house values. As one member here says, visit 100 homes until you don't need anyone to provide comps to you. One or two well selected 1 x 1 mile radius farm areas can be mini gold mines for you. You just have to get out there and look, compare and make calls.
While you are doing this, locate buyers. Research this on this site. You will find all that you need to locate them.
I recommend prequalifying HML / Private Money, even if you do not plan on using it. You may end up with a deal where you need cash fast... having a list of those who will work with you and knowing what their qualification are for a deal will be priceless. And there are plenty of lenders out there, you just have to look.
Then you can work on locating properties within your farm area. All the steps on locating properties can be found on this site.
You're issue is competition. Don't let them psyche you out. All the big guns were toy pistols at one point, just like you.
I think you need to study your competition... and then DIFFERENTIATE yourself from them. Being in a larger market, there is more opportunity. Look at Tampa... how many wholesalers are successfully working it? If you feel more comfortable, look outside of LA. That area is like Chicago, there are tons of smaller towns outside of city limits. There are plenty of deals to go around...
Another thing, remember, this is your business. Creating a business plan with long and short term goals are very important. Setting well defined "hours of operation" are important as well. And stick to them like you are going to a second job. That's what I tell people... "I can't, I have to work". And if your current job doesn't allow, locate a partner who is willing to go into this with you.
No matter what, don't give up, because it's your drive and intensity that is going to matter the most.
Good luck,
Danielle
Hi, Hud has given them until the end of July to either implement their version or go by the HUD intrepatation as they intend to implement it. HUD has extended the time for comments. Bill
Financexaminer:
I was under the impression that the SAFE ACT is currently a proposed bill and not passed as of yet. What gives you the indication that you think it has actually passed? Also, your right, that would not be the end of seller financing if the bill passed, however, you would have to become a licensed mortgage originator to create SF notes, or a home seller would have to use one. All in all, SF transactions would be slowed down a great deal by the inconvienence.
I received this today:
CALL TO ACTION:
Dear REIA Members:
The following information is extremely important!
HUD Issues Problematic Rules Interpreting SAFE Mortgage Licensing ACT
HUD has proposed to eliminate ALL seller financing unless the seller lives in the home or becomes a licensed mortgage originator. The proposed HUD Rules interpreting the federal SAFE mortgage act can be viewed at www.regulations. gov Use the search parameter "HUD" and the keyword "safe". Please review and comment regarding the impact of this broad interpretation of the law.
"In addition to establishing HUD's responsibilities under the SAFE Act, through this rule, HUD proposes to clarify or interpret certain statutory provisions that pertain to the scope of the SAFE Act licensing requirements, and other requirements that pertain to the implementation, oversight, and enforcement responsibilities of the States. HUD solicits comment on the proposed clarifications and on the regulations proposed to be codified."
History:
As you may recall, we lobbied hard last year to maintain the right for individuals to make up to five seller financed transactions per year before being subject to mortgage originator licensing, etc... However, that law was passed subject to the Department of Housing and Urban Development' s (HUD) approval of the law as "compliant" with the intention of the federal law. If any state does not have a compliant law, the SAFE act allows HUD to implement licensing for the state. HUD has since issued proposed rules. In a nutshell, seller financing would no longer be allowed for non-owner occupied homes.
How YOU can help:
We learned about the publishing of the rules very late in the process... and the deadline for comment is upon us on February 16. However, we desperately need for thousands of REIA members across the country to go on record with HUD on this issue. We will be working to try to affect this law in other legislative ways, but cannot hope to gain traction unless our members have clearly communicated that they are opposed to this portion of the rules. This is your chance to be counted on this issue.
PLEASE SUBMIT YOUR COMMENTS TO HUD! We have less than one week to flood this system with comments.
Follow these simple steps:
1. Logon to www.regulations. gov You will see two white boxes for searching
2. On the left box labeled "Document Type", pull the menu down and select "proposed rules"
3. On the right box labeled "Enter keyword or ID", enter "safe mortgage". Then, press search
4. Locate the blue search result "FR-5271-P-01 Safe Mortgage Licensing Act: HUD Responsibilities Under ...." To read the rules, click on this title. You will be taken to another page. You will see "views". You can click on PDF file or another symbol which will show you the rule document online.
5. On the right of the screen, click on "submit comment"
6. Complete the form providing required information and your comments and then submit
What do you say?
Say what you feel, but say it politely! The message should include that you would like the definitions in the proposed rules to be changed so that private individuals can originate and service loans on properties they personally own. Some ideas from others:
• bank loans are not available on some types of properties
• the tight lending climate has made bank financing "out of reach" for many
• seller financing is an "age old" tradition based on private property rights
• these rules would prohibit even partial seller financing - i.e. a "seller second"
• according to HUD's "Residential Finance Survey" in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear
• an estimated 6 million Americans own a property other than their own primary residence
• an estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties
• 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing
• approximately 5% of homes in US are for sale or for lease... seller financing may be key to liquidating this inventory
The continued success of our industry as we know it is threatened by these proposed regulatory changes. Please do not hesitate to follow the steps above and make your voice heard.
Hi, All are very good points but each one can be overcome buy HUD saying, just see a mortgage originator and they will do them for you!
Points to set out are the lack of originators WILLING to do seller financed deals
The costs likely to be charged to originate a SF loan will likely be too high for the majority of borrowers doing SF deals.
Costs of being licensened and continued compliance exceed the benefit of originating a small number of loans by owner/sellers.
Rural seller will likely not find originators.
Liability for originators will require significant fees.
Originators will not be trained sufficiently to underwrite loans, assessing risks and potentials for default or financing techniques for portfolios held by investors.
Originators may be restricted as to the types of loans that can be originated. Investors often structure financing to meet finanial palnning requirements and funding of trusts.
Both parties to seller financed transactions will be limited to structuring loans that fit opportunities that may be more beneficial to them if strict loan requirements and implemented. Loan terms that are allowed to be originated by institutional lenders, such as three and five year balloon notes, future advance loans and construction financing.
Leases that do not provide for any credit toward any option to purchase, as required by HUD for compliance with Section 8 tenants, should be exempt since no equitable interest in or to the property is established by such lease arrangements.
(THIS LEASE ARRANGEMENT IS A VERY IMPORTNAT POINT TO BRING UP BY INVESTORS)
If this law is implemented as proposed it will effect every aspect of investing with the exception of commercial projects. It is important that everyone provide comments as proposed above. Pick one point or more, what's important is the overall response, then they will drill down to specifics.
If you want more critical points, feel free to contact me. Thanks, Bill
Soooo much for larry goins,lol
I attended a recent Larry Goins boot camp and this subject was discussed - along with the work arounds. If the rule stands it will just add work to the process and will likely cull many competitors. Based on what I see at this point, I'm fine either way. BTW - the boot camp was free, lasted 3 days, and was not a sales pitch like most other boot camps. So far I have been very impressed with Larry.
Bill,
So because there is not a established interest in the property such as a credit check, lease options would not be included under this new law if passed?
Thats confusing If I may say, because even when you rent there is a credit check and a down payment but when you originate an agreement under Lease with the option to buy,it would need to be done by a originator ( I believe that is the title) if the seller performed a credit check? Now with a lease option, if you were to collect a down payment would that effect if it need to be constructed by a professional or not? Thanks for the responds in advance Bill!
Hi LeJon, A credit check has nothing to do at all with an equitable interest in a property being established. A lease provides a lease-hold interest, it does not transfer any ownership interest. The SAFE Act describes it as an equitable interest in or to title. A lease is a cloud on title, a restriction to title by providing tenants rights to the use of the property but not to title.
In most states I believe an option will cloud title as a restriction to the ability to convey good title (all states that allow options) but the degree of equity interest conveyed will be different. The degree of equity really can only be established by a court unless the degree of equity is recited in the contract, which is usually not the case. While you could say that an equitable interest shall be conveyed as a per centage paid to the agreed sale price, this is not customary. Saying that it is not customary does not make it illegal, we are free to agree to anything that is not illegal and since it's not covered as being prohibited, obviously you could agree to it and define the equity established. I can see uses for doing this. Where the optionee is two unrealted parties as tennancy in common or where there are several members in an LLC for the Option to match terms in an Operating Agreement for example. Making things as clear as possible will help address issues that may arise in the future. IMO Bill
Guys - Please stay on topic. Thanks.