Crappy, deadbeat tenants. I cringe at the thought of them. They generally don’t give a rat’s ass about paying rent, and they treat your property like a port-a-potty…and that’s just the tip of the iceberg. In short, bad tenants can make you wish you never invested in a rental property…ever. Landlord and tenancy problems have been around since before Jesus – so you would think we’d get smarter. But those tenants just keep getting smarter to0!
Why not fight back to minimize the financial firestorm they can cause? Here are some tips to help you take action, so put the boxing gloves on, Iron Mike, and sing it with me…”hit me with your best shot, come on and hit me with best shot….fire awaaaaaaaaay!” (yes, a Pat Benatar reference, finally) And with that…
Let’s get ready to Rumblllllllllllllllle!
Anticipate future problems like cleanliness, breakage, property maintenance, late payments, and even criminal behavior with a rock solid tenant lease agreement, and be sure the tenant signs it before he/she moves in. Lease agreements vary by state, so make sure you’re using the right lease. You can buy lease agreements online, sometimes on your state’s website – but I find that the best property managers in town usually have the best leases!
The Left Jab: Abide by Disclosure Laws
Bad tenants also tend to be cry babies, (and wanna be attorneys) running to Legal Aid and whining about how their landlord wants, them to fix the broken door, or wants to throw them out on the street. Cry me a friggin’ river. First thing the lawyer will do is check to make sure you’re lease agreement is legit and complete with all the necessary disclosures. Options for complying with these laws include reading your state’s landlord-tenant code directly, hiring a real estate attorney to advise you, or using an online landlord forms system that automatically fills in all of the required forms for your state. And by the by – you better know the lead laws in your state as well as the new RRP law recently enacted by the EPA.
The Right Hook: Offer the Tenant a Vacate Deal
When its time to get ride of a problem tenant, you can make it easy or you can make it hard. As temping as it may be to open up that fresh can of whoopass, try a little honey; negotiating with your tenant first by offering them a vacate deal. Give them a week to hightail it out of your property with all of their crap, and in return, you won’t take them to court. If they’re smart, they’ll play nice. But let’s face it, you’re probably not dealing with the finest and most upstanding citizen, so be prepared to file the eviction, which will leave a nice big blemish on their credit report, and if they broke the lease could also leave them without their golden ticket otherwise known as the Section 8 voucher! Yes, that’s right – you can petition Section 8 to revoke the tenant’s voucher if for whatever reason the tenant breaks the lease!
The Knockout: Comply with Local Eviction Laws
It’s a simple as this; you have to comply with your state’s eviction procedures if you want your tenant out for good. How can you be sure you comply? Again, you have options. Hire a real estate attorney who specializes in evictions (and be prepared to have deep pockets). Hire an eviction specialist for a bit less cash, or DIY baby. Just mail the appropriate notices to the tenant, and file an eviction form with the local landlord/tenant court.
Hopefully, you’ll be one of the rare few who only get responsible, courteous, and intelligent tenants. (I think I just tinkled myself from laughing so hard.) Good tenants, every time? Yeah, and there go the pigs flying outta by anus.
Disclaimer: The boxing references used in this post are merely metaphors. I do not support or encourage violence. (sigh….jees)
What am I missing here? Give me some COMMENTS!!!
Congratulations! You’re workin’ your first deal, and that means you’re really doing it! You’re doing more than 90% of all supposed real estate investors out there! That’s awesome, really it is. But my guess is (if you’re like most of us), you’re probably feeling the first time deal jitters along with sinking feelings of doubt and confusion. The good news is, that’s normal and frankly, it never goes away. The even better news is, there’s a way to diminish that dreadful doubt.
Put on your hard hat, because you’re undoubtedly going to run into two major roadblocks while you’re working your first deal:
- Risk – At some point early on, you’re going to ask yourself if the risk is worth the anxiety you’re feeling, which will make you second guess the deal altogether. You need to learn how to identify all the risk variables – then reduce them to a “move-forward” level.
- Rookie Questions – You’re new to this game, so you’re going to have questions like “how do I know if a deal is a good one, what kind of insurance do I need, how do I find the money, how do I manage contractors, what’s a scope of work? … all of which will (unfortunately) fuel your anxiety.
Your first plan of attack is to ask for help. Look, if you’re going this game alone, I don’t care how good the deal is or how much money you have – you are on a one way bus ride to Failure-ville without the help of someone like me who has been at this for 8 years. Swallow your pride, put the Macho-Man attitude aside, Randy Savage, and talk to someone who’s experienced and knowledgeable. Doing so will help you reduce your “deal risk”, so you can move forward with confidence.
Here are six tried and true techniques for you to put to the test.
EDUCATION: ITS ALL ABOUT RISK REDUCTION
6 Tips for Success:
1. EDUCATION: Do I need to slap you upside the head, or do you get that a thorough education is your best defense and the BEST tool to make you feel most at ease with the deal process, especially when it comes to the rules, laws, and daily struggles of real estate investing. So get smart…and fast.
2. FINANCIAL ANALYSIS: This is a no-brainer; you must know your profit BEFORE you make an offer. How the heck else can you feel confident in investing if you don’t know where you stand financially. Always remember, you make money when you buy the deal not when you sell it!
3. DUE DILLIGENCE: Do the due, baby. By that I mean, cross those “t’s” and dot those “i’s”, and in short…cover your ass. Know the neighborhood, know the comps, know your precise rehab costs. If you’re a landlord, speak with other nearby landlords to see how much they are getting for rents. Find out how long it takes them to fill vacancies. Find out if the area is subsidy-friendly, or if vouchered tenants avoid the neighborhood like the plague. Know what your competition is doing in the area!
4. START SMALL: Lemme put it to you this way – if you’re a 40 year old virgin, do you set your sights on a Carmen Electra type for your first time? Hell no! She’d laugh in your face, and walk away feeling less than satisfied muttering to herself “even my dismal acting career lasted longer than that!” Not a good plan. Moral of the story is – start small, and make sure your first experience is gonna be a winner. I can not tell you how many investors start out with marginal deals, lose money – then never invest again because they are soured by their first deal. Newbies are eager buyers. This ain’t Monopoly money we’re playing with so make sure you’re never an eager buyer.
5. CONTINGENCY PLANNING: Bottom line – always have a plan “B”. Be proactive, and ask experienced wheelers and dealers what potential problems to expect. Prepare for the worst, and you’ll be pleasantly surprised if things go according to plan (but don’t hold your breath). As a rehabber, I have never gone into a property and said, “if I can’t sell this house, I’ll just rent it.” That’s not a contingency plan. My contingency plan is the FAT FAT cushion of NET profit I have in the deal. So, if I have trouble selling the house or if I bust the budget in my rehab, my contingency plan is – I make $30,000 instead of $50,000. Yeah – its a pretty good life.
6. CONTRACTS & AGREEMENTS: This ties into the “cover you ass” plan mentioned above. Get letters of intent, document everything, and establish contracts between you and all the people you work with. Make a written plan for your success – and that plan must include the blueprint or rules of the road between you and your contractors. This is crucial for any business, especially real estate. Having contracts and agreements that use those rules to your advantage is a great way to manage your risk. Keep in mind, however, that even if a contract is signed, it’s absolutely not written in stone. But if you keep the contract contents within the boundaries of the law (and you strive to always do what’s right), you can feel good about using these as a stress reduction tool.
These six tips should give you a solid jumping off point to help reduce your first time deal risk and anxiety. Now you’re ready to be unleashed into the real estate deal makin’ biz as an educated, experienced, and fearless real estate professional. And with that, I say…RELEASE THE KRAKEN! (I’ve always wanted to write that.)
C’MON….let me hear your comments!
Starting a business in real estate – or any type of business, for that matter, ain’t easy. It may seem that the more you plan, the more goals you set, and the more you fine tune your plan, the better off you’ll be. Eeeeehhhh (wrong answer buzzer). Think again. The key is to keep it simple. Don’t get your panties all in a bunch worrying about every detail. KISS Keep it Simple Stupid means to simplify your plans and goals, and stick to them. Whether you’re looking for success in the real estate biz, trying to lose a bunch of weight, or just trying to achieve success however you define it – you need to listen-up.
Reality Check 1, Check 2…
You told yourself you’d lose 20 lbs, and ya didn’t. You said you’d be retired by 40, and that’s just hilarious. You promised your wife you’d stop watching sports with your hand 1/2 way down your pants (but it’s so warm and cozy down there). None of it has happened. So maybe it’s time to face the facts. Realistic goal setting isn’t your forte, so perhaps it’s time to have a come to Jesus with yourself. Its time for a reality check. Pour yourself a cold one, kick your feet up, look in the mirror, and ask yourself:
- is our list of goals longer than OJ’s criminal record?
- do you wake up in a panic and rush to get things done then say “if I just had 4 more hours in the day”?
- have you stopped enjoying what you do?
- do you feel scattered and unable to finish one project at a time?
- do you find that you’re consistently not meeting your goals?
Look, its no secret that I’m a fat guy. For years I’ve lived under the guiding theory that I’m just big-boned. Facing up to the cold hard facts of “fatness” a few times in my life, my belt-size has gone up & down more times than Luther Vandross’. Who did ya like better? I know I loved me some fat, sweaty Lutha’. Right now, I’m on a quest to lose 60 pounds. This beginning period is just like starting a new real estate investing business or any business for that matter.
Suppose I spent my time and action getting prepared for weight loss. Suppose my days were spent going to Dicks to make sure I has the right work-out gear and testing out the perfect running shoe. Suppose I spent a few weeks reading inspirational books on weight loss. Suppose I then spent another few weeks putting together meal plans and sorting the ingredients in those plans down to the aisle locations in the grocery store so that I could optimise my time when shopping.
Have a lost a pound yet, people? Have a lost a whole bunch of time? In the case above I was completely stricken with Paralysis by Analysis. And trust me, I see this all the time with new and experienced investors and entrepreneurs!
Lots of Action vs. Money Making Results
If any of this rings true with you. If you’re more into making business cards, and thinking up a killer name for your LLC for real estate and website, you ain’t making money! If you’re more into making slogans and T-shirts, you are making action, yet these actions are not producing money making results! You’re spending money and wasting time!
Tear up the old objective list. Burn it, use it as toilet paper, don’t even look at it. Run! Create a realistic list of short-term goals that will lead to long-term success. Set a big goal (like me losing 60 lbs), then make 5 small goals that lead directly to the big goal. Once you hit those 5 goals…pick 5 more.
If you want to make $1 million bucks flipping houses, making a website and an LLC is the least of your worries. Trust me with this! If I want to lose 60 lbs, a pair of running shoes is the very least of my worries when I have a dusty pair already in the closet.
How to Be a Smart Investor
Here’s the difference between you and “them” (or at least it soon will be, right?) – “they” are always reinventing the wheel, back-tracking, planning and re-planning, and just flat out spinning their wheels. Point is, the average entrepreneur is always wondering “what’s the next shiny object that’s gonna catch my eye?” The average investor is constantly changing his plans based on what someone else is doing. They don’t work with blind confidence and laser-like focus.
But that won’t be you. Ohhhhhhh no, that won’t be you! You want to know how to be a smart investor! You’ve got the eye of the tiger, baby, and you’re gonna figure out how to cover all your bases…and then some…by doing the least amount of work. How is this possible, you ask? Narrow down your objectives, break your big goal into ACTIONABLE chunks of little goals that are absolutely necessary for you to reach your big goal. Eliminate the fluff, don’t spin your wheels on rabbit trails that lead to no money, and get to doing ONLY those important things that lead to directly to your goal.
Here’s the 2nd installment in my latest installment of Flip This House, Craig Fuhr style. Watch as I take you on a little before and after trip through Rolling Thunder. In this short video I show you how we made just one little change to make the place feel more open and airy, and modern. Look, if you’re dealing with houses that were built more than 20 years ago, trust old Cousin Craig – those crappy places need a face life more than Robert Redford. And I ain’t talking a little botox to fill in the creases…I’m talking “bust out the blade – we’re going in heavy.”
Framing is almost done. This kitchen and 1st floor is gonna be tighter than a tick!
Until the fab five (BOA, JP Morgan Chase, Citibank, Wells Fargo & Ally Financial) recently signed the $26 billion dollar mortgage settlement, borrowers who hadn’t been paying off their loans were actually able to avoid bank repossession for over a year (370 days to be exact). That’s double the amount of time from five years prior, thanks to many banks’ half-assed foreclosure processes.
Would you believe that some borrowers in certain states actually stayed in their homes for close to three years. Three years and made NO mortgage payments! They should be rolling in the dough, right? But the wait may be over sooner than later, and delinquent borrowers who many are referring to as “squatters” (they must have some serious quad muscles by now) should start collecting boxes and bubble-wrap now in preparation for their inevitable relocations.
THE NEXT FORECLOSURE WAVE
It may take months or years before the next foreclosure wave comes to fruition, but everyone should be prepared for both an increase in foreclosure and short sale activity and possible decreased home prices, which is even more motivation for banks to churn and burn when it comes to foreclosures. Listing site, Zillow, says home values will fall another 3.7% by the year’s end and hit rock bottom by early 2013. When you’re on the bottom floor, there’s only one way to go from ground-zero, and that’s up, so once the market stabilizes, hesitant buyers will pounce on opportunities to invest like cats in heat (Rrrrrrrrrrrrrrrear baby, yeah!).
RealtyTrac recently reported foreclosures in general were down during the first quarter this year, but filings increased 10% in 26 states, 45% in Indiana and 26% in Florida. Reports indicate that the foreclosure completion rate is already increasing as well. Lenders are becoming more confident that foreclosure filings will pass tough court scrutiny. Noah knew it, and so did Evan Almighty, but are you ready for the flood?
More recent stories on the Next Foreclosure Wave are at the following links:
When it comes to short sales, we all have the same questions. Its a messed up process! Whether you’re a buyer, agent or seller, you need to understand the short sale process, and you need to be ready with answers when a motivated seller fires questions at you like a machine gun!
The Top 6 Questions Asked by Sellers in a Short Sale
Here’s a practical tip for you real estate agents or investors working directly with Seller’s, be sure to educate your seller, so he/she can weigh all options and make an informed decision about the short sale. Be sure to work with sellers who are truly ready to tackle the short sale transaction. There’s nothing more annoying (except maybe those, people (standing on my Medi-Fast soap box) who super size their McDonalds order then ask for a Diet Coke ….here’s a thought – eat a carrot every now and then and get your fat-ass on the treadmill) than negotiating a short sale only to have the seller decide let the property move to foreclosure. Here are the top 6 short sale questions asked by sellers:
- How will a short sale affect my credit? First thing to know is that missed mortgage payments will absolutely impact your credit - and not in a good way. It is possible that a short sale could affect your credit score, but it depends how the short sale is negotiated and the agreement made at the bank.
- What are the tax consequences of a short sale? Talk to your accountant first and foremost. President Bush signed Mortgage Debt Relief Act of 2007, which does have positive tax consequences for those who participate in the short sale of an owner-occupied property.
- Why a short sale instead of foreclosure? Short sale vs Foreclosure…its the age old question (that is if since 2007 seems age-old to you). Foreclosure is guaranteed to leave a scar on your credit report, and with foreclosure, you can forget looking for a property let alone buying for 5-7 years. With short sale, you can purchase in as little as two years.
- I’ve never had a late mortgage payment; can I participate in a short sale? If you have a justifiable hardship, then you can participate in a short sale.
- Can I walk with some money after the short sale? The answer to this question used to be an emphatic….Uh….HELL NO! Sellers who owed $300K wanted to short the house for $200K, then walk with part of the $100K written off by the bank! Seriously, what has this messed up world come to? I tell ya what its come to….Sellers ARE IN FACT getting paid by banks to walk. I recently heard a story of a Seller getting $30,000 cash to take the short!
- My foreclosure date is 2 weeks away. Can I still participate in a short sale? Some lenders will postpone a foreclosure date only if they have a complete short sale package that includes a purchase contract and crucial financial information from the seller and the seller’s agent.
Know these top 6 questions and answers, and you will be sitting right at the beginning of successful short sale.
Here’s the dealio; real estate success = real estate leads. Plan and simple. Without leads, you don’t have business, and without business, you’re S-O-L my friends. So how do you market yourself, your service, and your business to ensure you get leads out the wazoo?
You’ve heard of the shotgun approach where you buy a list of zip codes and blast out mailing to everyone on the list. You target everyone at once with a mass communication that doesn’t speak to anyone specific, and then you cross your fingers and toes and talk to the Man upstairs in hopes of getting a silly amount of leads. Problem is, even with God on your side this is a crap shoot. Sure, you can get leads this way over time, but you’ll spend mad mad money in the process.
At the end of the day, this will probably give you more indigestion and sleepless nights that you need. So, how’s about taking a targeted approach?
Psychology 101: We respond most to people who listen to us and understand us. So, what does that tell you? Hello, McFly?! Tailor your list and cater your message to specific groups like soon-to-be divorcees, or dead people, or people behind on house payment, or people over leveraged. These lists aren’t hard to get, and they’re well worth a few dolla bills, y’all. Let me say it again – tailor your message; that’s the key. You’re recipients need to know that you understand what they’re going through, and they need to feel confident that you are the man (or woman) who can help alleviate their homeowner stress.
TIP: No self-respecting real estate investor send just one letter to his target motivated seller. Do that – and you’re wasting money. Be smart, Mr. Propeller Cap, send multiple letters to each recipient. This takes time money and discipline – but I’m here to tell you, multiple mailings work like a pimp on payday!
Once you get into the groove like Madonna (she’s become quite the MILF, huh?), you’ll get a feel for a typical response rate, you can track your success and you can test new mail messages versus old mail messages. This is critical! Split test everything. ITS EASY! Just create two different mail campaigns. Expect about 3%-5% response rate, and track how many direct mail pieces (for example) you sent out, how many bites you got as a result, how long it took for you to get responses, say of the week you get most responses, and how many deals you actually closed. Use those numbers as a standard starting point going forward as you tweak and hone your message.
So what have we learned here people? Unless you’re a socially inept delinquent who has no friends, you know that people want to feel heard, listened to and understood. Your approach to real estate investment marketing should be no different.
TIP: Want 100 Sure Fire Ways to Find Insanely Motivated Sellers….just put your info in the box below and and I’ll send you my list for free!
Test and hone your message, put yourself in the sellers’ shoes, don’t get all long and flowery – and talk directly to your targeted audience. I’d go all-in like Steve Danneman and bet that you’ll get a far better response and more qualified leads.
We’ll write more on this later, ‘gators.
Bank of America is changing its short sale process, effective April 14th, so if you’ve submitted a short sale, heads up! You’ll have to complete a list of tasks to ensure your file isn’t stamped with a big, fat DENIED. Here’s what you’ve gotta do:
- Submit short sale offer
- Upload the offer documents
- Upload the supporting documents in Equator
You can access these documents at the Bank of America Short Sale Resource Center, but beware, the changes are so major that Equator will be down for up to 12 hours overnight starting April 13th. Speaking of Equator (and no I’m not talking about the line of latitude that burns hotter than a butt with hemorrhoids), all internal communications and transactions will take place here, however the duration of these transactions will be reduced to five days (from 14 days). Buyers will now only receive two counteroffers, and they will receive responses within three days. Talk about cracking the whip!
For more info, check out BOA’s webinar on April 19 at 4pm EST.
Fannie and Freddie are selling houses like Costco sells toilet paper!
With homeownership rates dropping like dresses on prom night and so many families experiencing the sting of foreclosure, rental demands are skyrocketing, which has investors pawing at the doors of homeowners with saliva dripping from their ravenous mouths. Why are investors exhibiting Cujo-like characteristics, you ask? Because the market conditions are ripe for investors to buy dozens, hundreds, and in some cases thousands of homes at huge discounts.
BUY HOUSES IN BULK
But is it a smart move to purchase so many properties and maintain such large portfolios at once? Some critics are concerned that wet-behind-the-ears companies like Waypoint (who focuses on the Bay Area and Southern California) could experience costly rookie mistakes along the way. Waypoint claims to have the technology and infrastructure to succeed, so let’s put it to the test, shall we? Waypoint’s system of algorithms, google maps, and inspector/appraiser reports, calculated a bid of $103,000 for a three-bedroom bungalow in San Bernardino. Joe Maehler, Regional Director of Waypoint’s Southern California office, investigated comparable homes that the company already owned to find that a higher bid would be justified. Plus, the home had other amenities like a pool, which would bump up the price yet again. The auctioneer kicked off the bidding at $114,750 while Maehler set the maximum bid at just over $130,000.
So they are doing drive by’s (no, not low-riders and oozies) to estimate renovation costs, based on the condition of the windows, lawn etc. Sounds pretty scientific to me…NOT!
PROPERTY MANAGEMENT SUCKS!
The company plans to buy properties, paint them, install new carpets, appliances, and fixtures, averaging costs at around $25,000. Wonder what these seasoned pro’s will do when they walk in and see mold, or lead paint? Waypoint seems to be well-intentioned and makes efforts to keep homeowners in their homes during the transition process. However, only ten percent of homeowners have actually hung around to watch the transition. Shocker.
I said it once (and I don’t like to repeat myself), but I’ll say it again – just for you. Yes, you can invest in real estate with NO money down. Remember, being broke doesn’t mean you’re a real estate joke, but you’ve got to play your cards right, and that means you’ve got to have more than 4 aces up your sleeve. Ok, I’ll stop being so cryptic and metaphoric. In short, you gotta get your head right and play the negotiation game like it’s your J-O-B. Get creative. Use the following no-money-down tactics to your favor:
Get the Seller to Pay You to Take The House
I know, you’re sayin’ – Craig, what are you smoking? Like Bill Clinton, I never inhaled. Believe it or not, you can actually get owners (or distressed sellers) to owner finance the deals. Owner financing still works people. It doesn’t happen a lot in this over-leveraged market, but it does happen! Suppose you meet a family who are trying to sell Grandma’s free-and-clear house for $80,000 – but you only have $60,000, which you know you’ll need for the rehab. Let’s assume the house is worth $230K- solid! Maybe you could offer the owners $90,000 if they agree to a hold a note for $90,000 while you rehab with your $60,000. Once you’re done the rehab, you sell the house for $230,000 and give the owners their 90K. Starting to get the picture? You just purchased, rehabbed and sold a 90K house worth $230K for $60,000 bucks.
Am I Losing Karma Points Here? Is No-Money Investing Ethical?
Uh, no and yes. You have to stop feeling like you had to step on someone’s neck in order to get a good deal. Its called negotiation.
Let’s say you get a response to one of your mailers or bandit signs. The person on the phone sounds a bit desperate and says, “I really need 75,000 for this old beater.” You muster up the courage to make an offer for $55,000 and crazy enough, the seller accepts. Why feel guilty at this point? The Seller accepted your offer and you didn’t even have to bring in Tony Soprano to close the deal.
You’re a problem solver.
Should I Ride the Guilt Train All the Way to the Bank?
You may have robbed your mother’s heart, but you’re no house robber. A house thief is a person who unethically and dishonestly swindles his or her way into a property investment using deceitful and diabolical methods (insert evil laugh). Come on, that’s not you. You simply used smart, creative methods to invest in your future while quite literally solving the problems of distressed homeowners. So, in essence, you’re a freakin’ house hero, man! Ok, that may be a stretch, but consider this. If sellers could turn elsewhere and get more for their homes, wouldn’t they? Your service is needed and in most cases, welcomed, so ride the wave dude and enjoy the gnarly biz that is property investment.
You’re Down Wit OPM? Yeah You Know Me!
Naughty by Nature sang about OPP (other people’s, well…you know), but you need to get real familiar real quick with OPM - Other People’s Money. Even if you have a large wad of cash stashed away, try to rely on a lender to purchase and rehab your property. That means the lender covers the purchase price, closing costs, holding costs, and rehab costs – the whole kitten caboodle (what the heck is a kitten caboodle, anyway?). What’s the theme here? With this form of No-Money-Down Investing….NOTHING in the process comes out of your pocket. Period.
Now getting such sweet financing might seem like a tough hurdle to cross – especially for you newbies, but once you get several deals under your belt, you’d be surprised at who comes out of the wood-work to hear about your success. Just be sure to tell everyone about what you do. I work with several private lenders and I plan to build that network to many more! Just work on building a pristine reputation for doing solid deals, and the money will find you.
Remember – Working Capital. It’s a Must!
Is that working capital in your pocket or are you just happy to see me? If you played your cards right above, you already know that your deal isn’t being funded by you, and that’s all well and good. Butlet’s suppose for a minute that you need money for earnest money deposits, up-front payments to contractors or perhaps overages in rehab budgets. Well, working capital becomes the glue that will hold your deal together. Whether it’s money from your own account or a friend who is willing to fund your holding costs, just be sure you have working capital checked off your list before you invest in a property.
There are many ways to buy, rehab and sell houses using none of your own money. From owner financing, to subject-2 purchases, to using other people’s money – you can still do crazy deals like Carlton Sheets has been teaching for all these years. That dude was out there! Starting this business with wads of cash and huge lines of credit makes you fat and lazy. I can not tell you all the rich guys I’ve seen who have been dismal failures in this business. Seriously, in this business, the more money you have, the less hungry and creative you seem to become. I guarantee that if you follow at least some of these no money down investing tactics - you’ll walk away smarter and with razor sharp real estate investing instincts.