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Real Estate

InvestingThat Works

A Proven System

Volume 1

by Mike Gazzola


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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


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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.


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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.


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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


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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


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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


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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


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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.


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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: [email protected]


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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


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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


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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.


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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:


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Introduction

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• 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.


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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


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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.”


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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.


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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


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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!


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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.


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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.”


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Getting Started

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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


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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


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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!


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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!


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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.


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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.


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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.


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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


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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


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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.


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Investing Is Key

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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


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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.


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Investing Is Key

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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.


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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.


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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


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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.


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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:


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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


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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.


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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.


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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.


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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


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$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.


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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


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• 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.


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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.


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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.


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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.


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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.


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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


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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.


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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.


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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.


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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.


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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.


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*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.


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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.


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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


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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


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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.


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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?


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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

Documents

volume 1 final.pdf