I met with some new investors last night and something funny happened.  The video below says it all.  We were at Niko’s Lodge, which is across the street from my house, so I called Bryan to come over with the camera so I could get this on tape. Cash truly is king, and the reason we win bids and win them at great prices.

We will be sponsoring appetizers at Niko’s in a couple weeks if your interested, please contact me for details. It’s a great restaurant and will be a fun night.

Hi Josh, I just let Bruce know that I completed my cash-out re-fi…. Someday I’ll share with you what this has meant to me and my family. It’s great that you make dough on these deals and the investors clean up too. Nice. Thank you for helping me take the first step in a new direction.

I’m nearly ready for my next house, once Beth and I come together and get a tenant in there. I have really enjoyed the process. There was a bump here and there but a fun experience overall.

Cheers,

I’d like to thank all of my investors for the great turn out we had for our Seminar/Party.  Despite the weather, there was a fantastic showing from current and new investors.  If you were not able to make it, please call to set up a one on one meeting.  It was a great night that was full of new networking connections and real life stories.  Some of the highlights of the night were our testimonials to the strugles and successes that go along with this business.  The footage below is a brief clip of the night. 

Our raffle was a blast this year, with 11 winners.

9 Winners - $250 Gift Certificates

2nd Place - $1,000 Gift Certificate, went to Dan Pigatto

GRAND PRIZE - 42″ Panasonic Plasma HDTV Flat Panel, went to Trigon Properties

Thank You for joining us!

Here’s a quote from a recent client:

…."Simms, turned out real well. $98K in purchase + rehab, $160K appraisal, $128K in new loan, and $1,100/month. Not bad at all. I jusr re-financed it at 7%. Not bad for investment property…
Actually, I took out $13K from Midland, and around $30K from Simms. Not bad for a beginning investor? J
"

Meet him at our investor party on Friday, January 25th.  Email heddy.ramsey@gmail.com to RSVP.

Let’s examine the numbers:

• Purchase and Rehab $98,000
• New Appraised Value of $160,000 (This is $25,000 more than our estimate)
• 80% LTV = $128,000 New Loan 
• New Loan of $128,000 - $98,000 = $30,000
• $153/mo. Cash Flow
• Return = Infinite (client has $0 of his own cash in the project)

Here is the original email offering the home at $88,900

Are you down with OPM? Yeah you know me. Sorry, that doesn’t rhyme at all, but I got a great email from some investors about using Other Peoples Money. One of the keys to what we do, is to use very little of our own money, and get it back quickly along with a profit. And as seen here, if you can use someone else’s money to lower your initial investment, all the better.

“When we first incorporated we went to National City in search of business loans and/or lines of credit. They offered us a signature line of credit which gave us an instant $40,000. The money was accessible via direct transfer to our business checking, credit card, or checks. All we had to do was personally guarantee it (at the time there were three of us in the company). After a year we called and asked them to bump it to $50,000 (the max they could go before SBA involvement). It wasn’t a problem.

“We used the money to fund down-payments on property, pay for the rehab costs, and all of the holding costs. After the work is complete we cash out refinance and pay the line back down to zero. We have now purchased six houses with only a few hundred dollars investment per person (it could have been much less). The rate on the line is adjustable and currently sits at prime +2% (11.25% as of July 2007). Although this may not be the best interest rate, it got us going. Another benefit of using 100% of the bank’s money is the decreased amount of mental stress that typically accompanies investing. We still had to be smart and manage our money and investments well, but I believe it has made our real estate investing much easier.

Trigon Real Estate, LLC

Most of the questions I get are fairly technical in nature with regard to foreclosures. I tend to find that the longer an investor is with me, the more they trust me and we develop a friendship over time. Recently a friend and an investor of mine told me that he would probably never have gotten involved in real estate had he not seen me work and prosper…there’s no doubt it changed my life. Here’s a quick overview of this investor that I thought would help those of you on the fence.

He moved up here after college and rented a room from me; the home was not much to look at.  Over the next few years he moved with me from project to project.  After a few years he came to me and said that he could not believe what I was able to do with none of my own money; when I started I had NO MONEY! Here was a guy who had managed to save $40,000 over several years.  He had a nest egg.  I suggested he try moving forward with a rehab/foreclosure properly.  After a few saturdays of reviewing the system, he purchased an investment property and diligently followed the formula.  Yesterday, I stopped by his home.  He has a beautiful home valued over $425,000.  He owns 4 rentals that cash flow and help to pay his mortgage. His estimated net worth now is over $300,000.  He has been buying properties for a little over 1yr! His cash reserves are stronger, his cash flow is better, but most importantly he changed his life.  He went from sleeping on my couch, to owning a home that is twice as big as my first home.

See, I was the test dummy for this system. It ended up great for me and will end up great for you too, but the most important thing to do is buy that first home. All of you have me to guide you in this process. I am here to help and will do whatever I have to do to make sure you are a successful investor.

When I asked my friend what he was thinking about the yesterday, he said "Can you imagine where I’d be if I started sooner?"