Author Archive

Real Estate InvestingIt’s amazing all the ways you, as a real estate investor, can make money in this market.  The problem is,  real estate investors – including me – get stuck in a rut using the same old deal-structuring technique over and over.

The real estate market is continually changing.  This means the deal-structuring techniques you use must change with it.  Think of it this way: You would be foolish to only have a big, dang hammer in your deal-structuring toolbox.  True, sometimes the job calls for a big dang hammer, but often as not, another tool suits the job better.

Let’s talk about a technique that is working well for us in this market.  It’s called the Option Agreement technique.  To better describe this technique, here’s an example of one of our real-world deals. Read More→

Real Estate InvestingYears ago, Pete Fortunato, one of our primary real estate investing teachers since 1999 (and the BEST creative deal structurer I know), taught us a lesson that has been critical to our success.  He said, “In order to create solid win-win deals, use what you have, to get what you need, to get what you want.”

When you read the above quote, you probably said to yourself, “What is Pete talking about?”  Do this: Write down his quote, and then get with some other like-minded folks and discuss it.  You’ll be pleasantly surprised how deep the discussion goes. Read More→

Real Estate InvestingYou say flipping and real estate investing are dead?! Well, you need to meet Edith and Wanda! These two ladies have already made over $90,000 in the first four months of 2011— just by flipping houses!  Yeah, baby!

I sat down for a quick interview with these two amazing women:

How did you get started investing together? “We met at work and, though we each invested in real estate on our own, we decided to do some deals together for the sheer joy of it.  We combined our money, knowledge and experience and really started hammering out the deals.”

How do you find your deals? Read More→

Are Your Roots Planted Firmly?

Posted on May 25, 2011 by

Avoid Stinkin ThinkinDavid, a seasoned real estate investor, has been stuck in a rut and wanted to talk over his situation.  Like many folks, he has yet to get back on firm ground since the real estate bubble popped in 2006.

When I asked him questions regarding how many sellers he talked to each week or how many real estate investor meetings he attended each month, he answered, “What’s the point?  The real estate market is dead!”

And there was David’s problem.  When the market collapsed, he essentially climbed into bed, pulled the covers over his head and decided not to come out again until the 2005 real estate market returned. Read More→

Once in a Generation Opportunity Recently, while having lunch, I bumped into a realtor friend.  She asked how things were going.  Then, leaning forward, asked, “Are you and Kim going to survive this terrible real estate market?”  It’s funny how many times we’ve been asked this question.

Folks, Jack Miller– one of my primary real estate investing teachers (God rest his wise soul) – said it best: “This is a once-in-a-generation opportunity!”  By this, he means that there has never been a better time to buy investment real estate.

Think about it.  When was the last time you saw (1) So many homes sitting unsold on the market; (2) So few buyers looking for homes; (3) Home prices this low; (4) Interest rates this low; (5) Sellers this motivated; (6) Banks with so many properties in inventory; (7) This many foreclosures each month, and (8) Lenders so eager to agree to a Short Sale?  The simple answer is – NEVER!!! Read More→

How Do I Fix This Mess?

Posted on May 3, 2011 by

Upside Down HouseSince 2005, we’ve warned investors about the dangers of going to banks to get short-term financing on their real estate investing deals.  (By “short-term financing,” I mean any financing with an adjustable interest rate and/or a term of less than 30 years.)

For the past six years, Kim and I have financed our deals through owner financing or using private money lenders – except for two idiotic, short-term bank loans we foolishly did in 2008.

I’m a real estate professional who is supposed to know what he’s talking about.  So in 2008, when I claimed real estate values had bottomed out and that it was time to buy, I believed me. Read More→

Debt is a Cancer!

Posted on April 29, 2011 by

Debt is CancerOn April 15, 2011, the Feds closed Bartow County Bank.  It’s the third local bank to fail since the real estate bubble popped in 2006.  And this isn’t just a local thing.  The big boys have also been dropping like flies:  LaSalle, Bear Stearns, Merrill Lynch, Wachovia, Washington Mutual, etc.

Here’s the irony: The feds forced these financial institutions to close because they carried too much debt.  So what happened yesterday?  The federal government had its credit rating down-graded because the government is carrying too much debt!  (But who polices the police?)

In addition, Kim and I know plenty of real estate investors who have gone under in the last few years…and it’s not just investors who have tanked.  So have a ton of realtors, mortgage brokers, bankers, contractors and builders! Read More→

Blah Blah BlahA common mistake real estate investors make when meeting with a seller is not listening – really listening – to what the seller says and how he/she says it (e.g. voice inflection and body language).

Frank, an investor in Marietta, Georgia, asked to spend the day with me. He wanted to watch me make offers to folks who had homes for sale. When I asked why, Frank said he was meeting with a lot of sellers but wasn’t getting a lot of deals. He wanted to find out what he was doing wrong.

I explained that to accomplish his goal, I needed to watch him make offers, not vice versa. Frank assured me he was doing everything right, but agreed to my terms. Read More→

There Ain’t No Magic Carpet

Posted on April 13, 2011 by

There Ain’t No Magic CarpetOn a regular basis, we get calls from investors who’ve spent thousands – sometimes tens of thousands – of dollars purchasing some “guru’s” push-button, no-effort-required, real estate investing course, only to discover that successful real estate investing requires persistence, determination and a lot of face-to-face contact with sellers.

When these would-be investors cry about the amount of money they foolishly spent, I’m reminded of something Fred Sanford (of Sanford and Son fame) used to say: “You big dummy!” Read More→

What to do at the Seller’s Door?

Posted on April 10, 2011 by

What to do at the Seller’s Door?My last two real estate investing columns (“The Key is Finding MOTIVATED Sellers” & “Where to Find Motivated Sellers”) were about why and how to find motivated sellers.  Last week, I said that the most effective thing I do is to simply knock on sellers’ doors.  This week, let’s talk about what to do when you knock on a seller’s door.

When I’m working my area and see a “For Sale” or “For Rent” sign in the yard (NOTE: We’ve bought a lot of properties from don’t-want-to-be landlords), I stop.  It doesn’t matter whether the sign is a FSBO (For Sale by Owner) or a realtor’s sign.

One thing: We don’t cut the legs out from under realtors.  If we find a deal because of the realtor’s sign, the realtor deserves to get paid!

At the door, I ring and/or knock and then back out into the yard about 20 feet.  I back away because I don’t want to crowd the door. Read More→

Where to Find Motivated Sellers

Posted on March 28, 2011 by

Where to Find Motivated SellersLast week’s column, entitled “The Key is Finding MOTIVATED Sellers”, brought in a lot of calls and emails.  The main thing I heard was, “Bill, you ignorant boob, of course the key is to find motivated sellers.  But the hundred-dollar question is: HOW do you find motivated sellers?”

Easy answer: Work your tail off!  But I’m pretty sure this answer will get me labeled as a smart alec, so let’s dig into this question a bit.

Here’s the big picture: You must let everyone know who you are and what you do.  The goal is to have all the folks in your area call you if they are considering selling their property.  Your next task is to separate the folks who WANT to sell from the folks who NEED to sell.  And finally, when you find a motivated seller, you must be able to creatively structure a win-win deal, as well as be willing to pull the trigger quickly – ‘cause great deals don’t hang around long! Read More→

We Buy Ugly TrailersAt our March real estate investors’ meeting, I described a mobile home in a park that we had for sale. Mouths dropped open as I showed nasty pictures of the disgusting property.

How bad was it? The home was full of dog poop. The toilet bowl was so bad that a commercial-grade sandblaster couldn’t clean it. There were gaping holes where the furnace and water heater used to be. The smell made you gag and caused your eyes to water. It was plain awful!

I asked the room full of experienced real estate investors whether anyone wanted to make an offer on this cesspool of an investment property. Heads turned away and eyes were diverted.

In the back of the room, Alex Kramb, a fifteen-year-old student at Blessed Trinity High School, stood up and said, “Mr. Cook, I’ll pay you $100 for that mobile home.” I was dumbfounded. As I pointed to the screen, I asked, “Alex, you’ll pay me $100 for THAT hunk-of-junk?” He quickly answered, “Yes, sir!”

Alex proudly walked up front. We wrote up a bill of sale, I collected $100 cash money and then handed Alex the keys. With that, Alex Kramb, at 15, bought his first investment property. Investors looked on in amazement…then cheers broke out in the room! Read More→