All Forum Posts by: RIchard Roop

Bob,

I use a CRM called Infusionsoft for my real estate business and for my training business. It's very flexible and can be designed for any business. It handles everything under one hood (CRM, marketing, web page creation, etc.) It can be a bit cantankerous at times, but I haven't heard of any that aren't. It's also a bit pricey, but keeps you from having to upgrade later.

My other recommendation would be realeflow which is out of the box specifically for real estate investors and easily adapted to broker business.

Best,

Richard

I posted a how to article in the blogs on how the "free and clear real estate investing model" works.

Basically you target owners of high equity properties with a marketing message letting them know you can pay more than any other buyer if they are interested in selling.

You structure "buy and hold" offers with long term (9 to 20 years) low interest seller carry back financing, at the lowest rate that the IRS will allow with no issues (currently 1.61% on a 9 year note).

I created an elaborate spreadsheet that crunches all the income and expenses and determines the "maximum allowable offer" to hit you profit target. By calculating the benefit to us of rapid principal reduction and some modest appreciation over time we can offer sellers more than market value plus the seller can avoid the normal hassles and costs of selling traditionally.

Since we need cash on every deal (repairs, holding costs, closing costs, down payment to seller, etc. plus some cash in our pocket today so we can "buy and hold") we fund the deal with a small private money first and have the seller take a second.

I started focusing on this strategy after the 2007 mortgage market meltdown. I do these deals myself locally but started aligning with partners in 2011 to do them nationwide.

Our average profit per deal is around $80,000 (we closed on 15 houses over that last 30 days). To over simplify we get 25%, 25% and 50% from cash now, cash flow and cash later. That means pulling out $20k in extra cash when we buy (money not needed to close the deal), $20k in true net-net-net positive cash flow over time, and $40k later when we sell.

Our exit is to occupy the property with a tenant, or more likely a tenant buyer or contract buyer.

Over the years the model has become very systematic and refined however I am always looking for ways to tweak our deal structuring and seller presentations to increase the closing ratio.

Since free and clear owners are not usually highly motivated we might make 10 to 12 offers to get one accepted upfront, and perhaps convert another one in time with follow up.

Three reasons a property usually does not sell

1) Price: It is not priced low enough compared to other homes in the same area and condition. If not priced right folks will not even look.

2) Terms: If you require all cash then price is important. If you can offers some time or terms before a bank loan then price is secondary to a buyer.

2) Condition: If folks are looking but not buying they try to get feedback. If it is not 100% cherry that I advertise as a fixer upper, even if only minor items.

If you can float a buyer for a year or two before they cash you out, offering some seller terms or rent to own will surely get it occupied. Then you are looking for someone who can qualify if given some time (3, 6, 12 months).

Of course if you are on a short fuse for any underlying debt then you need to be cashed out. Ask a mortgage broker what seller concessions you can offer a qualified buyer. Concessions that let a buyer in with less cash is normally more desirable to the buyer than a lower price.

To get the most out of your lead generating efforts you'll want to become a transaction engineer, being able to turn all sorts of deals into profits. Until you have experience with different investing models you might hook up with other experienced investors in the area who you can work with when needed.

Glad you are taking action even before trying to learn it all.

Simple tip: Become a big fish in a small pond. Choose the specific zip codes areas to farm and use multiple methods for getting the word out.

I prefer to put my time, energy and attention on properties that hold there own. I prefer to get rid of the negative cash flow rather than rely on making up for it in the future.

In all my deal structuring on new properties I buy each month I assume no appreciation for next 3 to 4 years... and make sure that the income from market rent covers any mortgage payment, taxes, insurance, manager (if any), HOA dues plus... 15% of rent set aside for future vacancies, repairs and maintenance.

I am fine holding a property that truly breaks even net-net-net of all expenses because then I can get increased rents later, regular principal pay down and long-term or unexpected appreciation. Since most properties I buy include an owner carry back note I also have the opportunity to pay them off early at a discount, should they desire and want that.

“Private Lending Profit Strategies with Self-Directed IRAs” with Richard Roop and guest expert Jim Hitt, CEO of American IRA will be held Tuesday, August 13, 2013 at 5:00 PM Pacific ( 6pm MT, 7pm CT, 8pm ET)

Learn private lending profit strategies with self-directed IRAs including saving, investing and compounding the same dollars people are needlessly donating to the IRS right now.

You’ll also discover:

• Strategies for amassing millions of dollars tax-free
• The ins and outs of using your IRA to invest in real estate
• How to accelerate your wealth building with mortgages, liens and real estate
• How to earn high rates of return in your IRA
• How to rollover other retirement funds into a self-directed IRA
• How to use other people’s IRAs to fund great real estate deals
• How to convert your dead equity into “cash in hand”

Register to join us live directly at:

https://www1.gotomeeting.com/register/137707009

If you want access to the free replay then use this form instead:

http://www.richardroop.com/ira

Of these 9 key areas for doing deals, what do you think is most important?

I just recently joined Bigger Pockets and as a way of introduction I like to offer all forum members a free copy of my "How to Generate Cash Profits as a Real Estate Entrepreneur" online audio and video collection available at http://www.richardroop.com/bpfreesystem

The keys to start collecting more cash now, cash flow and cash later as creative real estate investor:

1. Develop A Successful Mindset
2. Choose A Real Estate Investing Strategy
3. Attract All the Qualified Leads You Need
4. Research Property History, Value & Market Rent
5. Structure Profit Guaranteed Offers
6. Get the Seller to Accept Your Offer
7. Fund Every Deal with None of Your Own Money
8. Leverage Your Time, Money & Resources
9. Don’t Try to Do it All on Your Own

So we created this training collection with great programs that cover all of the 9 keys in detail...

1. Develop A Successful Mindset

What is most important to you? What would your perfect day or week look like? How do you spend your time how you want? How do you create and achieve a goal for financial freedom? What would you do each month if money was no object? Getting clear on your “big picture” will help create the direction, drive and motivation to do what it takes to be, have or do whatever it is you desire most…

How to Live Your Preferred Lifestyle: The Secrets to Creating Your Ideal Future

• Online Training Video
• Audio Download
• Slides Download

2. Choose A Real Estate Investing Strategy

There are many ways to generate real estate profits but the top strategy we recommend you use is “The Ultimate Strategy” for buying and selling houses. Discover how to generate cash now, cash flow and cash later buying and holding free and clear houses with none of your capital or credit tied up in the deal…

How to Make $72,000 Buying a House for Top Dollar: Unlocking the Secrets Behind the Free & Clear Investing Model

• Online Training Video
• Audio Download
• Slides Download
• How To Report

3. Attract All the Qualified Leads You Need

We highly recommend you treat your real estate investing like a full or part time entrepreneurial business. And of course the KEY to any business is to systematically market for new prospects. Therefore (to start generating more cash now, cash flow and cash later as a real estate entrepreneur) you want to continually attract a steady flow of motivated sellers, qualified buyers and potential private investors -- while applying the most cost effective methods available…

Marketing for Great Leads at Little or No Cost: How to Attract Buyers, Sellers & Private Investors

• Online Training Video
• Audio Download
• Slides & Call Notes Download
• Related Online Links

4. Research Property History, Value & Market Rent

Before you ever make an offer to buy a property you want to know your exit plan. That includes determining what the property is worth today, what can you sell it now or in the future, and what income it could generate from a tenant or terms buyers. Download the Property Research Tool and learn how to use with this training…

How to Research Property Values & Market Rents in Minutes… for Free!

• Online Training Video
• Audio Download
• Software tool download

5. Structure Profit Guaranteed Offers

Discover how to structure offers on free and clear houses to generate multiple “profit guaranteed” offers for sellers in minutes, get more of them accepted, fund all your deals with none of your own cash or credit, create positive cash flow on any property, lock-in profits of $50,000 to $150,000 per deal, build rapid equity even in flat or declining markets… and generate cost-free cash profits in advance - collected the day you buy…

How to Make Killer Offers on Free and Clear Houses

• Online Training Video

6. Get the Seller to Accept Your Offer

Couldn't you earn a lot more if you started converting more of your leads into appointments… more appointments into contracts… and more contracts into cash? The easiest way to double your income without spending a dime more on generating leads is to become more persuasive and influential with prospective sellers. Even small improvements in these skills can lead to quantum leaps in your income. Increase your closing ratios and your profits can grow dramatically…

How to Convert More Leads to Deeds: The Secrets of Persuasion and Influence

• Online Training Video
• Audio Download

7. Fund Every Deal with None of Your Own Money

Discover how to design a winning game plan for finding private lenders, how to have lenders anxiously waiting to be in on your next deal, the simple mindset change to get more prospective lenders on board and the best strategies for protecting your private lenders…

Finding Private Money to Raise Cash for Deals

• Online Training Video
• Audio Download
• Slides Download

8. Leverage Your Time, Money & Resources

Discover how to make more money spending less time as a creative real estate entrepreneur. As with any business, you want to spend your time on critical revenue producing activities. In the beginning you may try and do it all. Soon you will need to leverage yourself in order to make uncommon income…

How to Automate, Delegate & Outsource for Bigger Profits

• Online Training Video
• Audio Download
• Slides Download

9. Don’t Try to Do it All on Your Own

Discover how to find, negotiate and close “better than no money down” deals right in your own backyard… with profits of $50,000 to $150,000 each… working directly with Richard Roop one-on-one. Learn how to capture $252,000 or more in profits over the next 12 months having most steps systematized, done with you, or all done for you… how to get unlimited personal support from Richard and his team… how to avoid having any of your money tied up in deals… how to ensure each deal is self-funding… and how to solve the most common obstacles investors face.

Amazing Done-For-You Real Estate Profits

• Online Video
• Audio Download
• Slides Download

I'd love to get your feedback or answer questions once you check out these programs. For instant online access visit: http://www.richardroop.com/bpfreesystem

I have mailed millions of direct mail pieces to absentee owners.

I use a list source that also allows me to select loan-to-value so I choose 0 to 49% LTV. This will make the list you pull more qualified... fewer records but better records. I prefer free and clear or very high equity deals. If you are OK with higher LTV leads you can select those ranges.

If you can't get LTV in your area try selecting purchase date. If they owned the property for 10 or 15 years then chances of having equity is greater.

Any "yellow letter" message you use can likely fit on a postcard. I prefer to mail 2 or 3 postcards for the price of one letter. I use a feature on click2mail.com to merge in their name and property address into the message, to personalize it. I then use a typewriter style font to make it look personal. I also upload a background image with some handwritten stuff to again make it look personal.

Like with a letter, you want it designed so that it looks like you only sent them they message, not to hundreds or thousands of others.

The key to marketing for private lenders is to offer information... not any current note deals or investment opportunities. I you are looking for private money to fund a deal you will buy (or to borrow against equity in a property you own) then there are 6 steps. Here are the key 3:

Step 1: Know you program (what you are offering)

Step 3: Flap your lips to everyone you KNOW

Step 6: Get to know more people

The key is only to offer deals to people you know and have an existing relationship with, and not until after they know how it all works. So your goal is to build relationships, explain how you program works, learn about them and their needs and their experience, then contact later when you have have something to offer... if they are interested.

Note that regulators will call on ads that appear to offer investments (public offerings) and they will see how you handle their inquiry to see if you violate any rules.

Usually you can find plenty of folks looking to get higher returns on their idle cash or retirement funds right from your "warm" list of everyone you already know. However you can build that list by offering or publishing information related to your private lending opportunity. If you advertise, offer info only. Then send them the info with an invite to meet or learn more.

Of course I am offering my ideas and not any legal advice :)