View
227
Download
0
Category
Preview:
Citation preview
8/20/2019 volume 1 final.pdf
1/218
Real Estate
InvestingThat Works
A Proven System
Volume 1
by Mike Gazzola
8/20/2019 volume 1 final.pdf
2/218
Real EstateInvesting
That Works
Copyright © 2015 Mike GazzolaReal Estate Investing That Works
All rights reserved. No part of this book may be reproducedor transmitted in any form or by any means without written
permission from the author.
ISBN (978-0-9965299-0-7)
Printed in USA
8/20/2019 volume 1 final.pdf
3/218
Dedication
I dedicate this work to my loving partner and wife Melissa,
and my adorable children, Ashton and Kailey. Together they have
given me the inspiration and motivation to be a better man anda good provider for my family. They are the reason WHY I am
compelled to share my real estate investing system with those who
are also on the path to making their dreams become reality.
8/20/2019 volume 1 final.pdf
4/218
iviv
Acknowledgements
I’d like to thank KS Real Properties for their commitment to
publish my book – even when it turned out to be two volumes.
I am grateful for the support and guidance of Ken Meares,Dr. Sharon McQuillan, and Miles Dupree for recognizing that
I have a story to tell that can change the lives of many people
seeking financial independence. All of this would not be possible
without the tireless effort and assistance of Frank Marchese,
Chris Lagowski, Elizabeth Gubala, Brent Kinney, Lizett Acosta,
Gabriel Camarda, and Blade Thomas. And finally, I owe a specialdebt of gratitude to my mom, Sharron Kinney, who never told me
it couldn’t be done.
8/20/2019 volume 1 final.pdf
5/218
vv
Volume 1
Table of Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
Chapter 1 Getting Started . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Chapter 2 What Is Your WHY . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Chapter 3 Investing Is Key . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Chapter 4 Starting with Less than $10,000. . . . . . . . . . . . . . . . 17
Chapter 5 The Current Housing Market . . . . . . . . . . . . . . . . . 33
Chapter 6 The Biggest Secret: Buy below Market Value . . . . . 39
Chapter 7 Where to Find Investment Properties . . . . . . . . . . . 49
Chapter 8 Properties for Taxes . . . . . . . . . . . . . . . . . . . . . . . . . 73
Chapter 9 Running Ads to Purchase Properties . . . . . . . . . . . . 79
Chapter 10 How to Buy and Sell Homes and
Land Remotely . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Chapter 11 How to Maximize the Use of Realtors . . . . . . . . 119
Chapter 12 How to Open and Fund Your Bidder
Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
8/20/2019 volume 1 final.pdf
6/218
Real Estate Investing That Works
vi
Chapter 13 What Happens after You Win a Property
at Auction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
Chapter 14 Researching Auction Property From
The Foreclosure List. . . . . . . . . . . . . . . . . . . . . . . 159
Chapter 15 Back Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Chapter 16 Mapping Your Route . . . . . . . . . . . . . . . . . . . . . . 177
Chapter 17 Exterior Property Inspections . . . . . . . . . . . . . . . 183
Chapter 18 Interior Property Inspections . . . . . . . . . . . . . . . . 189
8/20/2019 volume 1 final.pdf
7/218
viivii
Volume 2
Table of Contents
Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii
Chapter 19 How to Determine Property Value . . . . . . . . . . . . . 1
Chapter 20 How Far in Advance Should
You Research Properties? . . . . . . . . . . . . . . . . . . . . 19
Chapter 21 Bidding through Proxy. . . . . . . . . . . . . . . . . . . . . . 31
Chapter 22 Live Auction Techniques . . . . . . . . . . . . . . . . . . . . 43
Chapter 23 How Much Money Should You Keep
in Your Bid Account? . . . . . . . . . . . . . . . . . . . . . . . 55
Chapter 24 Turnaround Time after Bidding. . . . . . . . . . . . . . . 59
Chapter 25 Determining the Extent of a Remodel. . . . . . . . . . 65
Chapter 26 Buy and Hold vs. Flip . . . . . . . . . . . . . . . . . . . . . . 71
Chapter 27 Generating Rental Income . . . . . . . . . . . . . . . . . . . 79
Chapter 28 Who Else Wants to be a Landlord? . . . . . . . . . . . . 85Chapter 29 Finding a Local Property Manager . . . . . . . . . . . . 95
Chapter 30 Finding a Contractor . . . . . . . . . . . . . . . . . . . . . . 105
8/20/2019 volume 1 final.pdf
8/218
viiiviii
Chapter 31 Online Selling Strategies. . . . . . . . . . . . . . . . . . . . 115
Chapter 32 Selling Techniques . . . . . . . . . . . . . . . . . . . . . . . . 131
Chapter 33 How I Started an Online
Real Estate Business . . . . . . . . . . . . . . . . . . . . . . . 157
Chapter 34 eBay Strategies for Selling
Properties Online . . . . . . . . . . . . . . . . . . . . . . . . . 167
Chapter 35 Tax Free Real Estate Investing . . . . . . . . . . . . . . . 173
Chapter 36 Health Savings Account (HSA) . . . . . . . . . . . . . . 185
Chapter 37 Jump In! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
8/20/2019 volume 1 final.pdf
9/218
ixix
Foreword
“Mike delivers a combination of common sense and technolo-
gy that empowers you to find out everything you need to know
to buy and sell real estate online below market value. This isamazing!”
— Kerry Lutz
Financial Survival Network
As a retired attorney, I first learned about Mike Gazzola while
doing research for a worldwide radio podcast about real estateinvesting.
I was so curious about Mike that I did a little research to find
out if he really has bought and sold hundreds of properties in the
past 12 years. What I discovered was even more shocking. When
Mike says “hundreds of properties in the past 12 years,” he’s just
talking about the properties he’s purchased and sold on his own.
What I also discovered is that he’s probably been involved with
hundreds of more property transactions that involve joint ven-
tures and partnerships with his friends, students, and other real
estate investors.
This young man is clearly on the cutting edge of what I con-
sider to be the future direction of a worldwide real estate investing
marketplace explosion.
8/20/2019 volume 1 final.pdf
10/218
Real Estate Investing That Works
x
Mike’s system utilizes the simplest and most advanced Inter-
net technology to actually use your personal computer or smart
phone to buy and sell real estate without ever leaving the comfort
of your home or office.
What I’ve learned from Mike is that this is not only becoming a
viable method of property transactions, but it is also an almost fool-
proof method for finding properties that are not even listed on the
Multiple Listing Service. And then he takes it a step further by being
able to selectively purchase these properties way below market value.
Mike has also demonstrated that it does not take a lot of money to
get started in real estate investing. He clearly illustrates how anyone
can get started with as little as $10,000. But the reality of that prom-
ise is that he has again made an understated claim. That’s because
Mike shows you how to get started with as little as $2,000, but he
firmly believes you’d be more likely to succeed with a slightly bigger
capital investment or start off small and build up your nest egg.
In fact, I just purchased my first property using Mike’s system.
I bought a condo in West Palm Beach for $52,000 with a market
value of approximately $105,000. I need to put about $12,000 into
repairs, but this still leaves me with a profit margin of $20,000 to$30,000, and I can still resell it under market value.
The fact that you have these materials in your hands right now
tells me that you are on the path to creating wealth for yourself
and perhaps a legacy of financial security for your future and for
generations of your family to come.
Phone: 800-999-2274
Kerry Lutz’s Financial Survival Network
E-mail: khl@kerrylutz.com
8/20/2019 volume 1 final.pdf
11/218
xixi
Preface
The information you are about to read
has taken the better part of my adult life
to learn, prove, and develop into a viable
system that’s easy to follow so you can
gain personal wealth through the process
of real estate investing.
There is no theory or conjecture pre-
sented within these pages and on myDVDs. Everything comes from actual
hands-on experience. The examples and concepts I present come
from working in the trenches of buying and selling hundreds of
real properties at live and online real estate auctions.
I’ve also worked with realtors and other investors who have un-
knowingly taught me many of the details you are about to learn.Please be clear, I love realtors and I believe they perform a valuable
service when it comes to buying and selling properties. However,
I have also discovered that with the Internet and today’s amazing
technology, it is now possible for individuals to reach far beyond
what the local real estate agent and broker can provide to the active
real estate investor.
During the past five years, I have been teaching adult students
my system, and they have constantly asked me to put it down on
8/20/2019 volume 1 final.pdf
12/218
Real Estate Investing That Works
xii
paper and video so others can learn and do the techniques and
strategies that have allowed me to achieve financial independence,
not just for me, but also for my family and hopefully for my chil-
dren’s families in the future.
Once a student learns my system, we become peers, and I do my
best to constantly keep them abreast of exactly what’s going on in
the world of real estate investing.
I truly believe in what I do, and I know that my success hascome not just from hard work, but also from allowing people to
maintain their dignity, always telling the truth, and being honest
in all my business associations and transactions.
I’ve also been very lucky and truly blessed.
Thank you for trusting me enough to spend your time and
money learning this valuable system of techniques, strategies, and
all the personal insights I’ve learned over the years. It is a true
honor to be able to share this amazing information with you.
All the best,
Mike Gazzola
Real Estate Investor & Mentor
8/20/2019 volume 1 final.pdf
13/218
xiiixiii
Introduction
What you are about to discover is new and amazing. If you have
any interest in how to make money in real estate, you are in the
right place.
Every so often, someone has a major transformative break-
through in how the world works. The introduction of the Internet
more than 20 years ago has transformed just about every aspect
of our lives; from entertainment and travel, to health, nutrition,
education, and now, real estate investing.
When it comes to buying and selling real estate, the Internet has
made it possible for us to research and find everything we need to
know to make a good buying decision on single-family homes,
multi-family units, and raw land.
My name is Mike Gazzola. I am a successful — in the trenches
real estate investor — who enjoys teaching the amazing systemthat has helped me build phenomenal personal wealth.
It’s no secret that real estate investing has made more people
rich than any other commodity on earth.
Some people get wealthy investing in the stock market. Others
do it through oil and gas. Some even find their fortunes investing
in precious metals, gems, cattle, and grains. Some make it by win-
ning the lottery while others chase after currency fluctuations in
the FOREX market.
8/20/2019 volume 1 final.pdf
14/218
Real Estate Investing That Works
xiv
The Real Estate Market Is Slowly Coming Back!
We are now in the post real estate crash phase and the market isstarting to make a strong, slow comeback.
This is the ideal time to get into real estate. All the options are
open:
• You can flip for profit
• You can create a steady monthly income
My biggest real estate secret is not based on an up economy, a
down economy, or a sideways economy.
It truly doesn’t matter what our economy is doing. It doesn’t
matter what’s going on in the world or what world events are
happening.
What matters is acquiring the property so far under market
value that the chance of losing goes way down and the chance of
making money goes way up.
Creating Instant EquityThis is the best way to take the risk out of real estate investing
because when you buy below market value, you are creating in-
stant equity. This is my biggest secret.
This is what I have done over the past decade and this is exactly
what my system teaches you to do.
You’ll learn, step-by-step how to:
8/20/2019 volume 1 final.pdf
15/218
Introduction
xv
• Find the hottest markets.
• How to wholesale your properties quickly without
remodeling them.
• How to generate a monthly continuity income.
• How to reduce the amounts paid to 3rd parties on all
your Real Estate deals.
• How to find the best properties way below market value.
• How to fix them up using local contractors if you choose
to remodel them.
• How to find property managers that won’t rip you off.
• How to sell your properties quickly at a nice profit to a
worldwide audience of buyers.
It All Happened by Accident
Twelve years ago I discovered my future fortunes were in real
estate.
I am a big New York Giants football fan. While at work I wastaking a few minutes of personal time at my computer looking for
NY Giants collectibles on eBay.
By accident, I searched something New York related and up
came a listing for a rented duplex in Buffalo, NY, for just $25,000.
This seemed amazing to me.
8/20/2019 volume 1 final.pdf
16/218
Real Estate Investing That Works
xvi
I was living in San Jose, California, and even a simple 2-bed-
room, 1-bath condo was selling for almost $300,000. So, I decided
to look further.
I called the guys selling the property and talked with him for
about an hour. He answered all my questions. I could also hear
his kids and dog playing in the background. He seemed like a
legitimate family man.
The part of the deal that immediately closed me was that thisduplex was occupied and bringing in $1,100 a month in rent, and
I could buy it for only $25,000.
I thought, “How can I lose?” In two years I could get all of my
investment back and still own the property with a positive cash
flow. So I made a decision and took the risk.
I bought the property and sent him a wire transfer for $25,000.
He sent me the deed to the duplex within a few days.
It all seemed great. But I knew I could really get ahead if I re-
sold that property for a nice profit I was living in San Jose? So, I
got another idea. I ran a small ad in my local newspaper that said:
Rented Duplex For Sale $50,000
The day the ad ran I got several calls, but there was an older
woman wanting to know if I was for real and if the property was
really just $50,000 — and if it already had tenants.
I faxed her copies of their rent checks and their leases. She wasvery focused so I said, “If you are sincerely interested, I’ll knock
8/20/2019 volume 1 final.pdf
17/218
Introduction
xvii
the price down to $45,000, and it’s yours. If not, I’ll continue tak-
ing calls from other interested investors.”
She said she wanted it and she came to my office in San Jose,
CA and bought it right then for $45,000. She brought me a ca-
shier’s check for the full amount.
I made $20,000 in a few weeks with a few hours of work and I
was shocked! I never made so much money — so fast — in my life!
I went back to the guy who sold me the duplex in Buffalo and
asked him if he had any more properties for sale. He said he did,
so I hopped on a plane and flew to Buffalo to see the properties
and meet the man.
I then bought and sold three more in in a short amount of time.
It was amazing. I was buying and selling properties in Buffalo,NY, and making really nice profits from my office in San Jose.
This seemed like an absolute miracle! I asked the man if he had
any more properties and he said, “Yes. I have 42 more proper-
ties.” Since I was so good at selling the properties, I asked him if
he wanted to partner up and work together. He said, “No, not
really.”
I was persistent and I pointed out to him that I had sold four of
his properties very quickly, and I could help him sell the rest of his
properties. He finally said, “Yes, under one condition.”
You Have to Move to Buffalo!
So I said, “OK, what?” He said, “You have to move to Buffalo.”
8/20/2019 volume 1 final.pdf
18/218
Real Estate Investing That Works
xviii
That was it for me. I discussed it with my future wife and my
family — and they all thought I was crazy. I told them I was quit-
ting my job and moving to Buffalo, NY.
It took nine months to sell 42 of his homes. During that time
he showed me how to find the homes, how to buy them, fix them
up, and rent them. It was an invaluable experience that paved the
way for me to generate millions of dollars buying and selling in-
vestment real estate.
I Found the Sweet Spot!
When it comes to real estate investing, I am generally not talking
about homes you want to live in. I am focused on homes and land
available for as little as $100 and as much as $100,000. I’ve found
this price range is the “sweet spot” in today’s marketplace.
I’m talking about buying homes with no mortgage, no escrow,
no appraisal, and usually even without a realtor.
How Is This Possible?
Believe it or not, you can buy parcels of land (residential lots) in
neighborhood communities for as little as $100. Of course thosedeals are unusual, but they do become available quite frequently
because there’s no one bidding when they go to auction.
The catch is that you must pay cash and you must have the win-
ning bid. You need to be prepared to pay 5–20% at the auction
(live or online), and then you must pay the balance due within 24
hours, or up to a month depending on the auction.
8/20/2019 volume 1 final.pdf
19/218
Introduction
xix
In fact, just last month I personally bought a residential lot for
$100 simply because no one else was bidding. At the end of the
bidding, before the property went back to the county, I placed the
minimum bid of $100 and won the property.
Take for example, a young college graduate by the name of Dave
Stall. As a teenager, he used to mow my lawn. Through our friend-
ship, I taught him how to buy property at tax auctions. Dave went
with me to a local auction and bought a lot for $500. Later, he
sold his lot for $2,000, making a 400% return on his investment.
Does this happen all the time? No, but it does happen more
times than you would think. Just last week I ran into one of my
other students John from Beverly Hills and he told me how he
bought 2 lots next door to each other for $500 each and just last
week he sold them together for $5,000.
Properties with No Owners
When you learn how to use my real estate investing system you
will be discovering inside information and techniques about how
to find properties owned by the county, state, federal government,
or banks that need to be liquidated.
These properties are not necessarily distressed, but they are or-
phaned and prime candidates to be picked up at auctions way
below market value.
How to Be a Property Detective!
My system teaches you how to be a “Property Detective.”This skill allows you to do quick research and within a matter of
8/20/2019 volume 1 final.pdf
20/218
Real Estate Investing That Works
xx
minutes you’ll know if the property you’re interested in is a hot
deal or something you don’t want to go near.
With my system there has never been a single auction property
I’ve purchased that I haven’t been able to sell for a profit.
Most people don’t know about these properties because you
will not find them listed on the Multiple Listing Service which is
the traditional inventory source to buy and sell homes and land.
Not a “Get-Rich-Quick” Scheme!
This is not a “Get-Rich-Quick” system of real estate investing.
It is, however, a carefully thought-out plan that guides you step-
by-step on how to find and buy properties so far below market
value that you have the moneymaking option to do one of three
things:
1. Buy and sell immediately for a profit (quick flip).
2. Remodel and sell for even higher profits.
3. Hold and rent for monthly income.
This is the opportunity you’ve been waiting for, and thisis the system to help you gain personal financial freedom!
Fasten your seat belt as we embark on an amazing jour-
ney that has the power to transform every aspect of your
personal, financial, business, and family life. Welcome
aboard!
8/20/2019 volume 1 final.pdf
21/218
11
CHAPTER 1
Getting Started
Congratulations! You’ve just begun a very exciting journey that
will take you from where you are now and transform you into a
successful real estate investor! This is your opportunity to create
instant equity when you purchase land, homes, duplexes, triplexes,
or 4-plexes.
You are about to discover how to buy real estate for pennies
on the dollar (far below market value) and how to sell it quicklyonline to a worldwide market.
Used properly, this information is valuable because you’ll not
only discover how to make more money, but you will also learn
how to be your own boss, and create a better financial future for
yourself and your family. These are life-changing results!
I promise this book will show you exactly how to do that — and
more.
How can I be so sure? The reason I can be so sure is that I’ve
already done it for myself. Like many of you, I came from a very
modest background. But I’ve become a self-taught master in real
estate. In fact, I’ve already done hundreds of real estate transac-
tions in the past 12 years.
8/20/2019 volume 1 final.pdf
22/218
Real Estate Investing That Works
2
I am proud to say that after 12 years in the business, I have never
lost money on any of the hundreds of auction properties I have sold.
That’s not to say that I’ve never made any mistakes. I’ve made
plenty of mistakes. But I’ve learned from my mistakes, and what
you are reading now is a carefully designed system that will show
you how to create instant equity in your property purchases and
reduce the risk associated with investing in real estate.
I know this because I have not only done this for myself, but Ihave also taught thousands of students just like you to do what I do
using my step-by-step system. I’m 100% ready to teach you exactly
what you need to know to potentially make great personal income,
build your retirement savings tax free, and even set aside money for
your children’s college education, tax free or tax deferred.
• With the right training, It’s not hard. It’s not
complicated. Most important…
Don’t worry if you currently do notKnow Anything about Real Estate
In fact, because of all the misinformation out there about real
estate investing, it’s actually better if you don’t know anything.
For example, Ive found “no-money-down” deals are rarely good
investments? The main reason is that when buying property for
no money down, you usually have to pay up to 30% more. It’s
true. It’s easy to acquire property when you are willing to pay 30%
above current market value.
Whether you know nothing, a little, or a lot about real estate,
this book will benefit you tremendously. I have developed a unique
system that is virtually guaranteed to work. It’s “goof-proof.”
8/20/2019 volume 1 final.pdf
23/218
Getting Started
3
I’ll show you how you could make money whether the market
is up or down. I’ll show you how to be a step ahead (by creating
instant equity) the moment you make a purchase. I’ll show you
how to flip fast for big returns, or create monthly cash for life as a
landlord. You don’t need to know anything now because I’ll teach
you exactly how I do it and you will learn my same techniques,
strategies, and inside secrets to investing in real estate.
What Do You Need besides MyDVDs and This Book?
• Desire. You need a desire to make more money and to live
a better life.
• Willingness to learn. Successful people approach learning
with a totally open mind and genuine curiosity.
If you bring desire and are ready to learn, you WILL be suc-
cessful. I can almost guarantee it.
How Will You Get the Most out of Reading This Book?
It starts by creating a powerful relationship with what you’rereading. This isn’t just another book. These aren’t just more words
on paper. I’m sharing with you over 12 years and hundreds of
transactions worth of secrets and street-smart real estate wisdom.
People have paid me well over $15,000 for the information in
this book & the DVDs, and I have never had a single student com-
plete my course and ask for a refund.
Here is a suggestion. Pretend you wrote me a check for $15,000
and hired me to sit next to you and deliver this information in
8/20/2019 volume 1 final.pdf
24/218
Real Estate Investing That Works
4
person. I guarantee if you did, your eyes and ears would be wide
open. You wouldn’t have the TV playing in the background. This
wouldn’t be a passing hobby for you. You would be focused and
determined to get your money’s worth out of everything I show
and teach you.
If you spent $15,000 for this information, you would clear your
schedule to get everything possible out of what I have to say. My
students constantly tell me the information in this book and on my
DVDs is easily worth TEN TIMES $15,000. No matter what you
paid for it, keep in mind the benefits of what you’re about to learn
have been proven to be extremely valuable. This is a proven system.
A few tips on getting started:
• Don’t just read. Do what I call focused-reading .
Consciously take a moment to clear your head and the
distractions around you. Then read. Don’t just skim the
pages. Read like your life depends on it. If you want to be
extremely wealthy, your financial life depends on how well
you learn what I am about to teach you.
• Don’t tell anyone about your desire to become wealthy
in real estate. Keep it to yourself for a while. There are
simply too many naysayers out there. Many times I’ve
seen one negative comment kill the desire and inspiration
it takes to truly achieve something remarkable.
• Get excited about reading this book. Get really excited.
Imagine the feeling of making more money in one month
than most people make in a year. Imagine having true
8/20/2019 volume 1 final.pdf
25/218
Getting Started
5
financial security and not having to stress over where your
next dollar is coming from.
“Nothing great was ever achieved without enthusiasm.”
— Ralph Waldo Emerson
Get pumped! You’re on your way to learning a specific set of
skills that will result in you being able to buy and sell properties
on your own, without being a real estate agent or broker. There’s
no exam to pass and no license to acquire. Everything you need is
right here in this guidebook and the accompanying set of DVDs!
CHAPTER 1 Summary:
• You have made a wise decision and you are smartenough to realize this is a great pathway to financial
independence and success.
• You don’t need to know anything about real estate to be
successful. In fact, sometimes it’s better if you don’t.
• Pretend I am there with you right now telling you this
information — and you paid me $15,000 for it. Don’t just
read the words. Focus-read . And don’t just skim — read
to really get the information embedded in your brain and
you will be rewarded with great information.
• Be enthusiastic! Making money investing in real estate is
fun and exciting!
8/20/2019 volume 1 final.pdf
26/218
66
C A S E H I S T O RY
53 Hawley, Buffalo, NY – Bought for $25,000 –
Sold for $45,000 a $20,000 profit without having
to put any work into it.
This was the first property I ever purchased. It’s an old red
brick home, originally built in 1870, 2,200 sq. ft., 6 bedrooms,
3 bathrooms, and a guest house in the back. It was listed as aduplex with two tenants bringing in $1,100 per month. I bought
it for $25,000 cash and resold it for $45,000 cash to a lady in
San Jose. I ran a small ad in the local newspaper and got an
instant response.
What I like about Buffalo is that it is the home of many great
Universities. It always has great demand for students & staff
rental properties.
People in California simply couldn’t imagine getting any type
of real estate for $45,000, so you can see why I sold it for such
a nice profit. This was the property that started it all for me. It
inspired me to buy three more properties and sell them almost
immediately nearly doubling my money. The only real work I had
to do on this property was find a buyer and using one of my
techniques selling it pretty easily. This was the transaction that
got me hooked!
8/20/2019 volume 1 final.pdf
27/218
77
CHAPTER 2
What Is Your WHY?
Before we dig into the details of my system, I want to share a
quick secret about personal motivation.
I’ve found that in order to be really successful in life, it’s impor-
tant to know your WHY? What I mean is, “Why do you want to
be successful investing in real estate?”
The quick answer for many people will be to make more money
— and that is a good start. Or, perhaps you simply want to workfor yourself, make your own hours, or work from home.
I’ve found it useful to go deeper and get to the real WHY.
For me, it’s my family; my wife and kids. They are my WHY. I
want them to have the most amazing life possible and for them to
never need to worry about money. The reason I work every day,
the reason I am always looking to make a new great real estate
deal is for my family. That is incredibly motivating for me because
I love them very much.
What is your “WHY?” It could also be your family. That is an
awesome WHY. Do you have a sick parent? Are you nearing re-
tirement? Do you have kids that are getting ready to go to college?
If you don’t have a “WHY,” you’re never going to make this work
because we all need that motivation to be our driving force and
our reason to never give up.
8/20/2019 volume 1 final.pdf
28/218
Real Estate Investing That Works
8
You need to really sit back and ask yourself, “Why do I want to do
this? Why do I need to make a lot of money? What is extra money
going to do for me? Why is it absolutely imperative that I succeed?”
The answers to these questions will keep you motivated and
give you the best reasons you need not to give up when you get
tired, bored, or decide to jump to something else.
Once you know your WHY, then you can always come back
to it. If you get a little down or you’re thinking, “Gosh, I’ve beenstudying Mike’s system for three weeks, been to a few online auc-
tions, and I just haven’t scored a deal yet.” Take a moment and
bring yourself back to your “WHY” and understand that as long
as you know what’s driving you, it’s easy to re-focus and get re-in-
spired and press on towards your goals.
Take a moment right now, and write down your WHY. A goodplace to start is to ask yourself, “What means the most to you in
life? Who do you love the most?”
Wanting to make more money is good, but WHY? Is it so you
can live in a nicer home you are proud of ? Drive a nicer car? Have
enough money to retire and live comfortably?
Here are a few examples of WHY that may help you discover
what your real WHY is for wanting to learn how to make money
investing in real estate.
• I want to never have to worry about money for myself or
my family.
• I want the independence, freedom, satisfaction, and
fulfillment of being able to earn large sums of money on
demand.
8/20/2019 volume 1 final.pdf
29/218
What Is Your WHY?
9
• I want to do something I can be proud of that provides
financial security and stability to live my dreams.
• I want the ability to be able to quit my job or reduce my
hours so I can spend more time with my family.
Now it’s your turn. Grab a piece of paper, or turn on your com-
puter, and open up a Word file and title it: MY WHY. Get de-
tailed. For example, with me, it’s not just about my kids. It’s that
I want my children to go to the best colleges in the country. Takethe time to look at what you are most passionate about; what you
are the most emotional about.
Once you have it written down, and it really excites you, you
are ready to open the doors to real estate investing success —
and you’ll be super motivated because when it comes to mak-
ing big money in real estate — you’ll now know WHY you are
doing it!
CHAPTER 2 Summary:
• Know your WHY. Articulate it clearly with passion and
emotion. Make sure it excites you and that it is a strong
enough reason to keep you committed and focused on
learning what I am teaching you, even when you don’t
want to.
• If you are ever struggling or need more motivation, go
back to your WHY! It will keep you going when you get
lazy or want to quit and give up.
8/20/2019 volume 1 final.pdf
30/218
1010
S T U D E N T T E S T I M O N I A L
“I’ve Been a Real Estate Broker for 15 Years & Never
Knew This Was Possible!”
“I specialize in the REO industry selling foreclosures for
places like HUD, Freddie Mac, Fannie Mae, all the banks,and GSE, asset management companies.
Mike has opened me up to things I never knew existed,and showed me where I can find deals I don’t even haveaccess to.
What I learned from Mike is how to purchase propertiesthrough tax sale auctions and foreclosure auctions onlineall across the country — before they go on the marketanywhere else!
Mike taught me things I’ve never heard before. What’sdifferent from Mike’s program and all the others is that itreally works. This is going to help me build generationalwealth for my family.”
Bill, Real Estate Broker with America’s #1 Top Selling Team
8/20/2019 volume 1 final.pdf
31/218
1111
CHAPTER 3
Investing Is Key
Webster’s dictionary defines INVESTING as the act or process
of expending resources, especially money, to achieve rewards.
Although I am not the CEO of a huge multi-billion dollar in-
ternational corporation with thousands of employees, I see every
dollar I have as a single employee working 24/7 for me.
If I want to invest my employees (dollars) in a property, like a
duplex, I know that to get that duplex I have to send my employ-
ees out to acquire the property. In my first purchase, I sent 25,000
employees (dollars) out to the field, and they came back with a
fully rented duplex in Buffalo, New York, generating $1,100 per
month in income. Two weeks later I sold that same duplex for
$45,000. My 25,000 employees returned as 45,000 employees.
I then sent those 45,000 employees out to get three more prop-
erties, and they came back a few months later as 115,000 employ-
ees. What I discovered about investing was that for me to make
more money, I had to send my money out and have it work for
me. That’s exactly what I am going to teach you; how to put your
money to work so it comes back with a conquest of, you guessed
it, more money.
I didn’t go out and buy a new car or take an expensive vacation.
That’s called spending your money with no possible return of more
8/20/2019 volume 1 final.pdf
32/218
Real Estate Investing That Works
12
employees (dollars). There’s a big difference between spending
and investing.
Putting your money to work is how you build your bankroll.
This is how you can consistently increase your capital by invest-
ing. Within a year, I bought and sold over 42 properties with my
partners and my $25,000 investment quickly became hundreds
of thousands of dollars. It didn’t happen overnight, and it didn’t
happen with one single property.
A few of the properties had a modest return of a couple of
thousand dollars. Others did better bringing back $10,000 to
$20,000. The big surprise was that several brought back $30,000
to $40,000.
The Best Way You Can Succeed in Real Estate
Investing Is to Have Your Money Working for You.
It doesn’t matter if you have a few hundred dollars, a few thou-
sand dollars, or if you have millions of dollars. Develop a mindset
that each dollar is your own personal employee. I don’t want my
employees just sitting in the break room locked away and doing
nothing. No. I want my employees on the move acquiring and
bringing back more employees and assets. I want every dollar I
can spare bringing back even more dollars.
If I just leave my employees in a bank account, savings account,
or CD, with today’s minimal interest rates, my employees are stag-
nant, accomplishing very little. That is like willingly sending all of
your employees on vacation. They are out doing nothing produc-
tive when they should be totally focused on bringing back more
money.
8/20/2019 volume 1 final.pdf
33/218
Investing Is Key
13
Think of your money as your team of top notch executive em-
ployees. It’s not a resource you have to hoard and sit on. It’s not
a resource you should be scared to part with. For me, that is the
worst financial decision I can make.
Wouldn’t you rather unleash those employees and harness the
power of those employees to get you more employees so you can
build your empire? That’s how you build momentum and become
unstoppable.
You could, of course, put your employees to work in the stock
market. Even if you invest in a big blue-chip stock, it could easily
go belly-up. Look at Enron and all the financial stocks that were
crushed in 2008. If a stock goes belly-up, all you have left is paper,
or at best, a fraction of what you started with. When you buy a
stock, you really don’t have any control over what happens to your
money.
I want to be in control of how my employees are working. I
want a certain guarantee they will return successfully with even
more employees. That is why real estate makes so much sense. Un-
like a stock, no matter what happens, you still own the property.
It’s tangible. It’s real — that’s why it’s called Real Estate.
Last time I checked, they are not making any more land. More
people are being born every year. The number of people looking for
a place to live is constantly increasing, but they are not making more
land. That is why the value of real estate will almost always go up.
As you’ll soon discover with my system, you’ll potentially make
money the second you purchase a piece of property whether the
market goes up or down. That’s because I show you exactly how
to buy properties that aren’t listed in the Multiple Listing Service
8/20/2019 volume 1 final.pdf
34/218
Real Estate Investing That Works
14
for pennies on the dollar. When you make your purchase, you’ll
have what I call, “Instant Equity.”
The bottom line is: you need to get your money, your employees
working for you. There is no better place for those employees to
make more money than in real estate. My system is designed to
get your personal employees working for you!
It’s All about Your Mindset
Some people are satisfied with one deal. They do one good deal
and they think they’re set, they met their goal and everything is
good. But that’s crazy. Once you make that first fat profit and you
just spend it, the next thing you know, all your investment money
is gone.
What If You Took Those Funds and Reinvested?
What if instead of caving in to instant gratification — “Oh, I
made this money, let me go buy a new car,” — you invested it. I
suggest that you do it a couple times and then go buy yourself a
new car, so you can leave your investment employees in the field
working for you to acquire more employees and assets. Never take
your small supply of employees and send them to a new car lot
and stick them all in a new car. That’s not the right thing to do
with those loyal, dedicated 24/7 employees.
Put them into a new car, and you’ll have no employees working
for you. How are you going to grow your business and build it into
an empire with no employees? If you are reading this guidebook
to make money, understand you must get your employees tire-
lessly working for you.
8/20/2019 volume 1 final.pdf
35/218
Investing Is Key
15
CHAPTER 3 Summary:
• Consider every dollar you have to be a dedicated, loyal
employee working for you 24/7.
• Leaving your employees sitting around with nothing to
do is a total waste!
• Real Estate is one of the most proven and profitable
places to send your employees to make money for you!
• Don’t stop at your first deal. Keep having your employees
make more money for you.
• Don’t blow your profits on instant gratification until
your bankroll is big enough not to be handicapped by
unnecessary expenditures that have no potential of
bringing back more money.
8/20/2019 volume 1 final.pdf
36/218
1616
C A S E H I S T O RY
63 Edison: Bought for $17,000 — Sold 4 months later
for $59,000 — Made a $42,000 Gross Profit
This property is a very typical transaction for me. I bought
this through a foreclosure and sold it online to an out-of-state
investor. Located in a university town, it’s always easy to rent.
It’s a duplex built in 1935, two 3-bedroom units with a large
garage in the back. The purchase also included the lot next
door, making it a really large lot for a city property. It also hasan attic and a basement. It was in fairly good shape, only
needing minor repairs consisting of paint, flooring, and a few
cosmetic upgrades.
After purchasing it for $17,000, I put a few thousand dollars
into it and sold it 4 months later for $59,000 with a gross profit
of $42,000.
8/20/2019 volume 1 final.pdf
37/218
1717
CHAPTER 4
Starting with Lessthan $10,000
In this chapter I will share how you can get started with under
$10,000. I understand that not everyone has $50,000 or $60,000 sit-
ting around to use for investing. We all need to start where we are.
I will share how you can start with a lot less and work your way up.
Before you invest a penny, it is very important to get clear
on a few things:
• What is your WHY?
• Why are you doing this?
• What is your end game?
• Are you looking to generate income?
• Are you looking to flip houses quickly?
• Do you want continuity income each month?
I can’t tell you what your needs are or what your goals are, but
I can give you the successful tools I use myself.
If you want to start purchasing properties at under $10,000, we
can agree that your options will be somewhat limited. But, I’m
8/20/2019 volume 1 final.pdf
38/218
Real Estate Investing That Works
18
here to tell you there are properties out there you can get for under
$10,000.
There Are Tons of Them!
I’ve bought many and flipped them for as much as $40,000,
$50,000, or even $60,000.
Let’s get specific because you need to know how to get started
with the amount of money you have. It’s great to see a mentor doit, or other people doing it, but the bottom line is you want to do
it. That’s what’s important.
How Can You Do It?
If you’re starting with $10,000, I wouldn’t recommend tying up
all $10,000 at once. You’ll want to tie up only a piece of yourbankroll with one property and leave enough to possibly buy an-
other property. If you can do this, I recommend doing it twice.
I am going to share what I would do, and you’ll make your own
decision based on what I share with you.
If I had to start today with $10,000 and everything else disap-
peared, I personally would jump right into purchasing land.
I would get the cheapest pieces of land out there, right now
today as I write this book lots sold at auction for under $2,000. I
would buy whatever I could find. I would want it to happen fast
because I know time is of the essence.
I would start by attending a tax deed auction.
These happen all across America, some online counties con-
duct them on Tuesdays.
8/20/2019 volume 1 final.pdf
39/218
Starting with Less than $10,000
19
Just because you attend a tax deed auction doesn’t mean you’re
going to win one, but you can at least participate and understand
this is a numbers game if you trying to find the best deals out there.
Why Consider Investing in Land?
Let’s talk about investing in land. If you are just beginning and
want to start off small, it’s important to build your limited bank-
roll incrementally so you can strategically buy even bigger and
better properties.
You’ll see many deals out there for land available at a fraction
of their previous value. Land can be a great opportunity because
when construction is not booming — like now — most people are
turned off by land.
When people are turned off by land the prices go down becausethere’s much less competition to purchase land. Investing in land
could be a great opportunity for you, especially if you have under
$10,000 working capital.
When people are uninterested in buying land, as odd as it may
seem, it’s a good time to buy. Land prices are a fraction of what
they were 10 years ago. In fact, many vacant lot prices are now2–10% of their peak value. To make a nice profit you don’t need
prices to go back to 100% of their previous value. You can easily
double, triple, or even quadruple your money with small increases
of 20–30% of their previous value. That’s the sweet spot to look
for when buying land.
Properly purchased land right now is a conservative investment.
Here’s why:
8/20/2019 volume 1 final.pdf
40/218
Real Estate Investing That Works
20
During the real estate boom that ended around ’06–’07, there
was incredible speculation. Builders and investors came and
bought up all the land and started developing enormous housing
communities. Everybody wanted a piece of those areas and then
the crash came. This typically happens in an area where you’re
going to find great land deals. That’s because the lot prices got so
high in value, and people leveraged these properties so much, that
ultimately they were foreclosed on.
For example, people would borrow $100,000 on a piece of dirt.
When the crash came that piece of dirt was then worth $10,000
retail. When that happened, nobody even wanted to buy those
lots for $10,000 retail (because everybody was scared). However,
the bank was still owed $100,000 on the lot. When the crash first
came, we noticed a lot of land freed up right away, because people
walk away from land a lot easier than they walk away from houses.
Imagine you own a piece of land with an $800 per month mort-
gage that was purchased based on speculation. Your goal was to
build on that land, but now — all of a sudden — there’s a crash.
You’re most likely not going to continue to pay that note if you
have no plan. Let’s say the property is worth $10,000 retail, but
you owe $100,000.
People at property auctions aren’t interested in that piece of
land because they say, “Oh, I can get a house or a multifamily
property for a deal right now.” But understand we all start some-
where; if land has to be your start, imagine buying that same lot
with a $10,000 retail value for $4,000-$5,000.
Risk vs. Calculated Risk
8/20/2019 volume 1 final.pdf
41/218
Starting with Less than $10,000
21
If you use the excuse, “I only have a couple thousand dollars.
There’s no way I can invest in real estate.” Most people would tell
you, “Take that tiny amount of money, use that as a down pay-
ment, and borrow the rest.” In my opinion, that’s super risky.
If you put up a very small down payment — let’s say 10% — and
all of a sudden the market goes down, your property is now worth
less than you owe. When this happens, most people lose their entire
down payment — even if the market only fluctuates by 10%.
Borrowing might sound really good on paper until it doesn’t
work out for you. That’s what happens when the money you bor-
rowed is more than your property’s current market value. Why do
that when you can just start off small?
Imagine if you’re able to get a lot for $2,000 that was — at one
point — worth over $40,000. I’ve actually done that, and I’ve dou-bled or tripled my money by quickly reselling the lot. How do I do it?
Although at its peak, somebody paid $40,000 for the lot, I’m com-
ing in and paying less than $2,000. Then I take that property and
using one of my online selling techniques, put it up for auction to
a worldwide audience. Most people around the world can’t believe
they can own a vacant lot in America in a residential area for under
$10,000 and the profit as a percent of purchase price is very high.
Anything in life is possible and everything has a certain risk.
What are the chances I’m going to have to sell that lot for less than
$2,000 if it once sold for $40,000? I’m not even waiting to get it
to go back to $40,000. To me, this is a much more calculated risk
than putting your $10,000 down on a $100,000 property. If it’s a
great deal and somebody with cash comes in and undercuts you’ll
lose that deal.
8/20/2019 volume 1 final.pdf
42/218
Real Estate Investing That Works
22
Many of you have had that experience. You find a great deal on
a property, you’re getting your loan approval together, and you’re
offering more than the guy who’s paying cash. But for somebody
who offers cash, the bank usually has a quick, no questions asked
closing making it harder for those who require financing and
those looking for financing usually loose the deal.
Using Land Investments to Build Capital
If I can get a “free and clear” piece of property without a lien
or mortgage, at least I actually own the property. If the economy
crumbles or I lose my job and can no longer pay that monthly
payment — they’re not going to take the property from me be-
cause THERE IS NO MONTHLY PAYMENT AND NO FI-
NANCING INVOLVED!
I feel good knowing that I own it free and clear, and for you,
that can be your start. I’ve purchased many lots for less than
$2,000. Some I’ve resold for only $5,000, but I still more than
doubled my money. Nobody can argue with more than doubling
your money — even if it’s a small amount — because now you
have more money to work with. Then you do it again, and again,
and eventually you’ll have even more money to work with to buysingle-family homes, duplexes, or multifamily apartments.
This Isn’t a “Get-Rich-Quick” Scheme
You’ve probably seen some of the killer deals I’ve done and the
amazing profits I’ve made. I’m sure that motivates you, but at the
same time you can’t predict the future. All you can do is base every-thing on today. I can tell you what I do, but ultimately, you have to
be comfortable with applying these techniques or you’ll never do it.
8/20/2019 volume 1 final.pdf
43/218
Starting with Less than $10,000
23
That’s why my goal is to give you the tools in my arsenal so you
can pick and choose what works for you. You don’t have to use
all of the tools; in fact, I’ve had people who have paid me $15,000
tell me the entire system was worth it for just one tidbit. They’ve
said, “I would have felt like you delivered just based on that one
technique, because that will save me money, and I will make a ton
of money from that specialized information.”
That’s the feedback I get, and it makes me feel good because
that’s the whole idea. It doesn’t matter what you pay for a piece of
knowledge; if it makes you 10 times the amount you paid, that’s
a great deal.
I’m not saying that land will make you an insane amount of
money. I am saying if you have very little funds to work with, let
land be your start because at the very least you can’t lose 100% of
your investment capital.
If you own an undervalued piece of land and you simply don’t
want to sell it for less than $2,000, you lose nothing. You can stick
by that price and not sell it until you make money. I’m not saying
it’s risk-free, but this is what’s called a calculated risk . You don’t
have to sell it for less than what you paid, and the upside has greatpotential.
Be Prepared for a Great Opportunity
Let’s look at a different scenario. Let’s say you didn’t fully un-
derstand what you were doing when you bought a piece of land
and think you may have slightly overpaid. Knowing somebodypaid $50,000 – $60,000 for it, and you still feel like you overpaid
at $3,000. If that’s the case, just hang in there.
8/20/2019 volume 1 final.pdf
44/218
Real Estate Investing That Works
24
The economy is just starting to do well again. Don’t sell it for
$2,500, thinking that’s all you’ll ever get for it. Here’s a really
quick example from personal experience.
I was on an auction site not too long ago, and I saw this commercial
lot with a huge judgment. It was massive — definitely over $200,000
on a vacant lot — and I thought, “Wow. That’s really expensive.” So,
I click on it. Then I discovered it was actually a commercial piece of
land, it was almost an acre and a half. Then I realized that there’s a
brand new housing tract across the street and that the commercial lot
was close to downtown and had huge potential.”
So I gave it a second thought once the auction went live I saw
that the bidding was at $25,000. Then I clicked on something else,
and I see that it’s advertised for over $400,000. Not only is the
judgement owed over $200,000, but there was a previous sales list-
ing on the exact same property for over $400,000, and right now,
nobody’s bidding on it at $25,000.”
Although I originally had no intention of buying that lot, I
said, “Oh, what the heck,” and I put in a bid for $25,100, because
that was a smoking hot deal for an acre and a half commercial
lot on a busy street. I did a quick look-around online, and I saw a$600,000 place next door.
Sometimes it can take you an hour to figure out something is an
amazing deal or it can literally take you two seconds. Sometimes
the evidence is overwhelming that it’s a great deal…and if it’s not,
we simply don’t buy.
But I saw that $400,000 listing. I saw the judgment was through
the roof, and I saw that the previous owner paid over $200,000.
To me, that was overwhelming evidence that it was a great deal for
8/20/2019 volume 1 final.pdf
45/218
Starting with Less than $10,000
25
$25,000. Because of my own techniques, I was the only bidder. I
got it for $25,100. Within a few days I got a cash offer for $80,000,
because the person who gave me the offer didn’t even know it was
going to auction.
You might be thinking, “With such a great deal, why doesn’t
someone else buy it?” Well, you are that someone else. I am that
someone else. The people who beat me out on a deal are that
someone else. There were people who would have bought that lot,
but they had no clue it was going to auction. This is specialized in-
formation. Somebody gets the property, but only ONE somebody.
You can be that somebody.
Maybe you were getting bored reading this section because you
were never going to consider buying land. I’m glad you’re reading
it, because if I opened your eyes to the possibilities — at least now
you know that sometimes things do fall in your lap — if you’re
prepared to take action. Another great benefit to land is that no
repairs are involved. No leaking roofs or remodeling required.
If I hadn’t been prepared and didn’t even understand what was
happening with that commercial property, I never would have bid
on that property. But I was prepared, and without even advertis-
ing it for sale, somebody offered to triple my money.
Here’s one last thing to consider: There will be more people on
this planet, but there will not be more land. If something sold for
$60,000 when there were less people on the planet, what about
when there are twice as many people on the planet? Couldn’t it sell
for $60,000 again? Couldn’t it sell for $80,000 or $90,000? I’m here
to open your eyes to these opportunities. So, if you have limited
funds, or even if you have a good bankroll, it is important that
you always consider buying land.
8/20/2019 volume 1 final.pdf
46/218
Real Estate Investing That Works
26
Investing in land can be a great decision. When other people aren’t
interested in investing in land, it can be a great opportunity for you,
especially if you want to have the potential to build-up your bankroll
to really get started in real estate. This is a good example of how you
can go against the grain in this situation and use it to your advantage.
Make land investments the right way. If you don’t have a lot of
money to start with, low land prices mean you can own a property
free and clear, flip it fast, or sit on it, and sell it later. Taking a cal-
culated risk and putting yourself in a position to succeed means
you can build more capital to invest in real estate.
Use this information and these techniques as you see fit. Only
you know what you’re comfortable with, and the more you know,
and the more you practice using these techniques, the better you’ll
become at making good real estate decisions.
Be prepared for a great opportunity. You’ll find that luck seems
to come your way when you’re prepared to take advantage of a
great opportunity. Real estate is no different. You’re learning how
to get the information you need so you can make informed deci-
sions. You’ll find the more informed you are, the more confident
you’ll be in your decisions.
What about Starting with Houses?
Through tax auctions and foreclosures, I’ve seen houses that
sold for:
• $3,900
• $5,000
• $3,000
8/20/2019 volume 1 final.pdf
47/218
Starting with Less than $10,000
27
• And I even saw one that sold for less than $2,000
There are cheap middle class, blue collar areas all over the
country, but you can’t count on something this amazing all the
and sometimes it makes sense to pay $10,000+ to get something a
little nicer that needs less work.
Be Patient and Diligent and You Will Find Great Deals
I would rather get a couple of really cheap homes, and have twodeals working for me at one time.
I could list one of them on Craigslist. It’s free. Give it a try.
Maybe I’d list the other one on eBay.
I would not put two on eBay, because I’d just end up competing
against myself for the same buyers. My listings would look simi-lar, sound similar, and probably be selling in the same price range.
I’d list them on two different sites, and then I’d have two differ-
ent deals working for me, instead of against me.
Does this strategy make sense to you? Let me give you an example:
Let’s say you have $10,000, and you’ve only tied up $6,000 of itinstead of blowing all $10,000 on one house.
Now you won’t feel like: Oh, I have to sell this below what its
worth because all your capital is not tied up.
Stand your ground. If you are using one of my online auction tech-
niques, you can put reserves; you can put dollar amounts, the lowest
dollar amount you’re willing to sell it for and minimize your risk.
Don’t get too greedy. Just move forward to the next deal.
8/20/2019 volume 1 final.pdf
48/218
Real Estate Investing That Works
28
Greed Will Hold Up Your Process
Let’s say:
• Somebody offers you a $2,000 profit on your $6,000
purchase
• But you think you “deserve” an $8,000 profit
• You could have made $2,000 in a week or 10 days
But because of greed, all of a sudden you’re holding out to get
so much more, and it takes you several months just to make a little
more money.
Those Funds Are Sitting on the Sidelines
Your employees are tied up while you are saying to yourself, “I
can get a little more!”
You may end up getting your higher profit, but you’re waiting
several months to do it.
It looks great on paper, because you bought it for $6,000 and
sold it for $14,000, but remember time is money.
But look what you did. You took funds and you left them on
the sidelines while you were waiting to get a higher profit instead
of just building incrementally.
What if : You take a smaller profit right now and reinvest it in
another property, so that other property can be working for you?
Or, you can have two more properties working for you at the
same time instead of just 1.
8/20/2019 volume 1 final.pdf
49/218
Starting with Less than $10,000
29
Don’t have the Mentality of Get-Rich-Quick
I do not teach “get-rich-quick.” I don’t know how to get richquick in real estate.
What I do know is how to buy below market value and sell
quickly for a profit. I also know how to keep the property, rent
it out, and generate a very nice monthly income. That’s what I’ve
done. I’ve built strategically to what I have today.
You hear people claim all the time, “With no money down, you
can get rich quickly.”
I don’t know how you would get a great deal on a piece of prop-
erty with zero money when there are people with cash willing to
buy that same piece of property.cash willing to buy that same
piece of property.
You have to wonder, it’s such a great piece of property, why
didn’t someone with cash buy it?
I know those outdated techniques are still circulating but maybe
someone could clearly explain to me how you would do it, because
with all the deals I’ve done, I actually don’t know how you could
truly get a great deal without using any of your cash or credit.
I know:
• How to buy and sell a property
• How to start off with little capital but not with none.
• How to build investment capital
If those are your goals, then, I’m your guy.
8/20/2019 volume 1 final.pdf
50/218
Real Estate Investing That Works
30
If your goal is to just get rich quick, I’m probably not your guy.
There are lots of so called gurus that claim they will teach you
how to get rick quickly. If that’s your goal, you’d have to talk to
them and if it WORKS then please relay that information to me.
If you want to start with under $10,000 and work your way up,
I’ve laid out a clear plan of how to do it. This chapter could have
easily been titled, “Starting with under $5,000.”
If I Had $10,000 Here’s What I’d Do …
If I had $10,000, it’s a no-brainer. I’d buy a couple of $2,000
lots in South Florida right now. You can get those every week,
anytime. Very little research is required. You get a lot that sold for
$50,000 to $60,000. To me, there’s very little thought required to
make that kind of investment.
You’re quite literally paying 5¢ on the dollar. You might only
make $1,500 or $2,000, but you only tied up a small amount of
your money. Your security blanket is that previous peak point that
the property sold at, or was purchased for.
You have that benchmark of it being the highest value that
property ever attained. What you know is that it could take 100years to get back up to that mark. It could also take just five or
ten years.
You don’t even need it to get all the way there. Just get to 20%,
30%, 40% of whateveryou are willing to sell for, and you’re a mas-
sive winner.
8/20/2019 volume 1 final.pdf
51/218
Starting with Less than $10,000
31
CHAPTER 4 Summary:
• Start from where you are, get clear on why you are
investing, and work your way up.
• If you’re starting with $10,000, don’t tie it up all at once.
Get the cheapest pieces of land, as quickly as possible, by
attending a tax deed auction.
• If you get a couple of cheap houses, list one of them onCraigslist and the other on Ebay or the dozens of auction
sites that are out there. That way, you’ll have two different
deals working for you, instead of competing against
yourself by listing on the same online sales sites.
• Don’t get greedy. It will only delay your process.
8/20/2019 volume 1 final.pdf
52/218
3232
S T U D E N T T E S T I M O N I A L
“Learned How to Find, Fix, and Flip Real Estate for
Pennies on the Dollar!”
“Mike shows you what’s working now, not yesterday,not in 1980, not in 1990, not even 2000. His system is sosimple that even a child can understand it.
I’ve spent tons of money in the past on different realestate courses and even boot camps. None of them cantouch this with a ten foot stick.
I not only learned how to find, fix, and flip real estate for
pennies on the dollar, but I also learned how to use realestate to fund my children’s education tax free!”
Chika, One of Mike’s Real Estate Investing Students
8/20/2019 volume 1 final.pdf
53/218
3333
CHAPTER 5
The Current Housing Market
I am sure you’ve heard people say this is a depressed market.
This is not the time to get into real estate. People have been burned
in deals. Watch out.
If you listen to the media, you might hear some markets are
coming back, but most of the country is still flat.
Let me be extremely clear.
This is the best housing market any ofus could ever hope for.
In my lifetime and in your lifetime, this is actually the best
housing market. The conditions are ideal to potentially make an
incredible amount of money in real estate.
I’ve been doing deals in real estate since 2002. I was here before
there was a real estate boom. I was in real estate during the big
boom and during the crash. And, I’m still in real estate now as the
market is starting to improve.
I can tell you, without question, right now is better than any
time before, during, or right after the boom. The profits you canmake now are far better than the profits I was making before the
boom, or even during the boom.
8/20/2019 volume 1 final.pdf
54/218
Real Estate Investing That Works
34
During the boom, it was foolproof, you would just buy the
house and simply list it with a realtor, and someone would buy it.
That’s because the real estate market was growing at such a rapid
rate that you would have had to TRY to fail in real estate. Now
we’re in a different situation with far less competition.
But that’s ok, because one of the most important secrets I share
with you is:
A Proven System That Works in Any Market Condition
This is critical because my system shows you how it possible to
start making money now, in a year, in 10 years, and 20 years from
now.
Before the real estate boom, I was investing in blue collar areas.
I was looking at cash flow, and I was buying so far under marketvalue that getting rent checks every month was a spectacular bonus.
Like many of you, I didn’t have a lot of money to when I first
got started started. I was focused on properties under $10,000.
When the market was not booming, I was focused on building the
number of properties I had and increasing my monthly cash flow
from rental income. But at the same time, I was trying to build mycapital, so I had to flip some properties too.
When we’re in a real estate boom, flipping properties quickly
makes a lot of sense because the gains are huge and they happen
fast. The key is staying in touch with market conditions. When the
bubble starts to burst, you can use my selling techniques and sell
your properties quickly. Or, buy them so far under market value,
the price fluctuations don’t impact you.
8/20/2019 volume 1 final.pdf
55/218
The Current Housing Market
35
This is my business. I am always doing detective work and stay-
ing abreast of the hottest trends in buying and selling property.
That’s what I am presenting to you now.
Right after a boom is a very exciting time because everyone is
running from deals. That brings us to the next secret.
When Everyone Zigs, You Should Zag
The secret most people don’t know is that real estate marketsalways come back. Always. When the bubble burst, everyone was
selling their properties for a fraction of what they were listed for.
I was out there buying.
People thought I was crazy. They’d say, “Mike, you just bought
a property that lost 35% of its value in 6 months.” And I knew
that was the perfect time to buy. Should I have bought it earlierwhen it was at its peak? You can only lose money that way. I ac-
quired substantial wealth buying properties no one else wanted
right after the bust. And even today, there are properties available
every single day way under market value that nobody wants, or
even better, nobody knows about.
You can sum it all up with another secret:
It’s Always the Right Time to Get into Real Estate!
I’ll also add that any way you get into real estate works, as long
as you are NOT borrowing money to do it.
For me, it happened almost by accident. I told this story in the
introduction, so if you’ve already heard it, be patient and I’ll give
the short version.
8/20/2019 volume 1 final.pdf
56/218
Real Estate Investing That Works
36
I was lucky enough to have a great job in my early 20s. I was
making a lot of money living in San Jose, California. One day, I
was just surfing the web and saw an ad to purchase a duplex in
Buffalo, New York, for $25,000 — with monthly rental income
of $1,100. My first thought was that this had to be some kind of
scam. After just one year, I would be making close to a 40% return
on my investment.
I called the seller. He thoughtfully answered every question and
seemed legitimate. I decided to take the risk and sent him a wire
transfer for $25,000, and he sent me the deed. I then ran an ad in
the local San Jose newspaper that said:
“Rented Duplex, $50,000”
The reason this ad was so successful is that a two bedroom
condo in the worst part of San Jose was selling for almost 300k.
The idea of buying a duplex with a yard and built in rental in-
come for $50,000 was absurd. Within a day, a woman responded.
I showed her pictures of the property and proof of the rental in-
come. Then I gave her a $5,000 discount if she would commit to
buying the property that day. the property sold by just runningan ad in a booming market and buying the property in a stagnant
market.
This was a peak experience for me. I was sitting at my desk and
I realized that with a few hours of work and a few phone calls, I
just made $20,000. That is more than some people make all year,
and I made it with about 2–3 hours of work.
8/20/2019 volume 1 final.pdf
57/218
The Current Housing Market
37
You can guess what I did next. I called the seller up and asked if
he knew of any more properties I could buy. He did, and I quickly
sold three more for about the same profit. When I realized there
was a great opportunity, I actually moved to Buffalo to fully take
advantage of that market.
It all goes back to what is your WHY? If you are ready to make
a full career of this and maybe even quit your job, you may find
yourself making big, bold decisions like this — it certainly paid
off for me.
CHAPTER 5 Summary:
• The current housing market is ideal for making
substantial profits.
• Use a proven system that works in any market conditions.
• When everyone zigs, you should zag.
• It’s always the perfect time to get into real estate.
8/20/2019 volume 1 final.pdf
58/218
3838
C A S E H I S T O RY
*5616/5618 5th Avenue: Bought for $13,600 — Sold
less than one month later for $46,500 — I Made a
$32,900 Gross Profit
This duplex is located in the city of Ft. Myers, South Florida.
I purchased it through a foreclosure auction exactly the way I
teach you in this book and on the DVDs. When I showed up at
the house, it was already rented.
My tenants signed new leases, making it easy and quick
to sell as an investment because the tenants were already inplace, and I had the documentation to prove it.
In fact, I resold this duplex using one of my online techniques
in less than a month — making a very nice $32,900 gross profit.
I didn’t have to do any work because it was already rented.
There was a little bit of cosmetic work that needed to be done
on the upstairs unit, but I made a deal with the tenant for himto do the work, and I waived his first month’s rent. This is a
good example of how to be a 30-day landlord.
8/20/2019 volume 1 final.pdf
59/218
3939
CHAPTER 6
The Biggest Secret: Buybelow Market Value
When people think of traditional real estate investing, they
think of:
• Buying a house
• Waiting for the property to go up in value
• And then reselling the houseThat’s the typical mindset of real estate investors.
They think: The market is hot, so I could buy a house, and if it
goes up 20%, I just made 20%.
This Type of Thinking Is Super Risky
It’s something I would never do. I don’t want to buy property at
retail value and hope that it could someday go up in value. My big-
gest real estate secret is not to buy based on an up economy, a down
economy, or a sideways economy. It truly does not matter what our
economy is doing. It doesn’t matter what’s going on in the world to-
day or our current political structure. Things like that are irrelevant.
What matters is gaining the property so far under market value
that the chance of losing goes way down, and the chance of mak-
ing money goes way up.
8/20/2019 volume 1 final.pdf
60/218
Real Estate Investing That Works
40
My Money Is Made When I Buy
When I tell people, “My money is made when I buy,” they lookat me a little puzzled.
They say, “What do you mean your money is made when you
buy?”
I say, “Because I made my money when I bought it.”
For example, let’s say today I bought a property worth$100,000. That’s what all the houses in the neighborhood
are selling for:
• If I buy it for $60,000, I literally just made $40,000
because we already know it’s going to sell for around
$100,000. If $100,000 is a fair market value, I’ve made
$40,000 by buying it at $60,000.
• Now, if I buy it at $100,000 and hope it’s going to go
up 20% next year and it does, I look like a genius. But,
what if it doesn’t? Look at the risk in this example.
What if it doesn’t go up?
• What if it goes down two percent or up two percent orgoes sideways? Now, your property is worth $102,000
or $98,000 or $100,000. Remember, I paid $100,000 for
the house if I pay retail value.
To me, that’s not real estate investing, that’s gambling. People
ask me all the time, “Isn’t buying real estate risky?”
It depends. If I were to pay market value for every house, then
yes, that would be extremely risky. Because how do I know that
it’s going to go up. There is not a single person who can say they
8/20/2019 volume 1 final.pdf
61/218
The Biggest Secret: Buy below Market Value
41
know how to time the market perfectly. So always remember your
money is made on the “buy.”
My Advice: Buy Properties under MarketValue because Your Risk Goes Way Down
Here’s an example if you’re buying an investment property:
• If you buy a property for $100,000 and you move
someone in for $700 a month, that would be $8,400 a
year. That would be an 8.4 percent gross return on a
$100,000 investment.
• Now, imagine you bought that property for $60,000,
and you’re getting $8,400 a year on it. Now you have
almost doubled your gross return (8.4% goes up to
14%), because you bought it so far under market value.If you’re looking to be a landlord and you buy it at
40% under market value, that’s a 40% higher rate of
return you’re going to make.
I’d rather:
• Get two houses at $50,000 ... or, one at $60,000
• Take the rest of the money and buy another at $40,000
• Then I have two properties, instead of paying the
$100,000 for one property and hoping I will make money
based on the current economy.
This strategy is about creating instantequity , when you BUY!
This Is My Biggest Secret
8/20/2019 volume 1 final.pdf
62/218
Real Estate Investing That Works
42
Everything I’ll teach you is based on this secret of buying under
market value.
In this study guide and on the DVDs, I am teaching you:
• How to find homes and land way below market value
• How to fix them up and flip them for a quick profit
• How to rent them out for a steady monthly income
• How to find property managers and contractors thatwon’t rip you off
• How to find good markets
• How to invest in your own retirement account tax free.
• How to provide for your children’s education account
tax free.
• How to wholesale properties for profit and quick sales
to other investors.
• How to use the power of the internet to work from
home.
You may be thinking: The economy fluctuates a lot. How do I
know what the property is really worth?
With the power of the internet, you can remove speculation:
• You can look at the street the property is on
• You can see what houses were sold on that street
• You can see what sold previously and at what price
• You can find the square footage
• You can verify any liens or back taxes.
8/20/2019 volume 1 final.pdf
63/218
The Biggest Secret: Buy below Market Value
43
It’s All Public Record
Realtor.com will show you current asking prices, and Zillow.com will show you the whole street, what is currently selling on
the street, and all previous sales.
Zillow.com will give you something called a Zestimate, but
don’t pay any attention to their Zestimate, because in my opinion
it could be either too high or too low. Use the comparable sales
and find similar like homes that have sold in the last 3 months..The powerful thing Zillow.com does is … it puts up a map where
you can see the previous sales around the house you’re consider-
ing as well as showing you any previous sales of the property your
evaluating as well as age and square footage. This is all extremely
good data when your figuring what you should pay for a property.
For example:
You would be able to say to yourself: Okay, two blocks over a
three-bedroom, two-bathroom house just sold for $400,000. And,
three streets over, the same sized house just sold for $405,000.
Using this tool, you can start to get a sense of what’s selling in
the neighborhood.
We call this comparable sales, or comps for short.
Comps will show what houses recently sold for. That’s one way
to get a sense of the market value. You simply look at houses that
are close in age and square footage and see how recently they sold.
But now you might be thinking: How do I find out what that
house sold for in the past?
8/20/2019 volume 1 final.pdf
64/218
Real Estate Investing That Works
44
Zillow will give you numbers on past sales as well:
There is a section on the site that says sale history. This sec-tion will show you a map with dates of what the sales have been
over time. You can also see what is currently being offered for sale
currently and the size and age of those properties. It helps you
to determine what you should consider paying for an investment
property based on how much you are looking to buy under mar-
ket value. All of this is on Zillow.
Remember to check comparable sales:
• Once you’ve entered the address of the home you’re
looking at on the main page, you may see on the map a
group of properties that have already sold which certainly
can give you a comfort level or tell you that what you are
considering really is not that great of a deal.
• You can then enter the address of the comparable sales and
get even more properties around the area and research it.
How big is the property, what year was it built, how many
bedrooms, how many baths, how is it comparable to the
one your looking at? Is it bigger, or is it smaller?
• You want to compare the subject property (which is the
property you’re thinking of buying) to the properties in
the surrounding area. You don’t want to compare a 2007
house
Recommended