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Index

A Attorney/escrow fees, in selling costs, 230 Absentee/out-of-state homeowner lists, 38 Attorneys, 26, 40 Absentee owners, 40–41 Auctions, in-person networking and, 30 Accent lights, 222 Accounting: B post-rehab, 228–230 Backpage, 206 for rehab, 230–232 Backup Purchase and Sale agreement, 80 step-by-step for rehab, 235–239 Balance sheet, 230 Acquisition: Bandit signs, 204 analysis of, 232 Bankers, networking with, 28–29 of , recording, 236 Bankruptcy, 37, 39, 169 Adjusted gross income (AGI), 256 Banks: Advanced investors, 24–25 authorization to release information, 80 Advertising: lending money and, 28–29 call to action in, 66 lending on second mortgage, 86–87 “Coming Soon” post, 206 Bathrooms: costs of, 231 estimating repair of, 132 online, 209–210 scope of work, 153–158 social media and, 214 sizzle features in, 223 using classified websites to create, 214 Beginner investors, 23–24 Affidavit of Purchase and Sale agreement, 80 Benefactor, 256 After-repair value (ARV), 99, 119, 120 Beware of Dog sign, as thief prevention system, Agents: 219 pocket-listing flyers to, 204–205 Bidclerk.com, 165 websites, 206 Bid package, creating, 160–162 working with, 210–212 Bids, evaluating, 173–174 AGI. See Adjusted gross income (AGI) Big-box supply stores, for finding contractors, Alarms, as thief prevention system, 219 166 Alexa, 62 Bird dogs, 29 Amiable personality, asCOPYRIGHTED trait for networking, Blogs, MATERIAL 34, 61–62, 204 32 Bluebook.com, 165 Anderson, Jeff, 8 Bookkeeping system, 229 Anderson, Joanna, 8 Borrowing hard money, fees for, 90 Angieslist.com, 165, 211 Budget: Arbitration, in independent contractor direct mail campaign and, 39 agreement, 178 project, contractor bid and, 170 ARV. See After-repair value (ARV) staying within, 144 Asset protection, 254–259 Builder’s risk and vacant dwelling insurance, 180 263 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 264

264 INDEX

Building Department: City officials, networking with, 27 for finding contractors, 166 Cleaning the property professionally, 193 residential redevelopers and, 183, 184–185 Cleanup, in independent contractor agreement, Building permit, 182 177 Built-in bookcase, as sizzle feature, 224 Client approval, in independent contractor Business cards, 32 agreement, 177 Business ownership, three stages of, 18–19 Closeout system, financial, 232–235 Buyer list building, 206–209 CMS. See Content management system (CMS) email blasts, 207 CO. See Final certificate of (CO) initial phone call, 208–209 Commonality/empathy statement, in direct mail networking and, 207 piece, 46–47 prescreening retail buyers, 207–208 Communication: Buyers: with attorneys, 26 first-time, 211 contractor kickoff meeting and, 187–188 initial phone call with, 208–209 contractor system and, 170 prescreening retail, 207–208 Community(ies): Buying appointment, 81–82 giving back to, 260 Buying-appointment folder, creating, 79–80 networking with, 28 Buying criteria, 198–199 as private moneylenders, 87 Company brochure website, 56 C Consistency: Call center, using, 48 direct mail marketing and, 38–39 Calls, presale, 210 online presence and, 59 Call to action (CTA), in ads, 66 Constant Contact, 207 Call to action statement, in direct mail piece, 47 Consumers, focus of, 17–19 Camera, need for, 145 Contact information: Campaigns: in direct mail piece, 48 during presale phase, 203–205 realtor’s, 70 for a reason, 38 seller’s, 70 Camtasia software, 243, 244 Content, as website component, 55 Cancellation: Content management system (CMS), 54 in independent contractor agreement, 177 Contract closeout and final payment, 191–192 Capital, for residential redevelopment, 83–84 Contractor elevator pitch, 163 Captive insurance, 253–258 Contractors: Captive insurance company, 255 credibility packet, 163–164 Carrying costs, 230–231, 237 final payment to, 191, 192 Cash reserves, building, 84 importance of, 143–144 C-Corp., 247 job sites for finding, 166–167 Certificate of occupancy (CO), final, 191 kickoff meeting and communication, 187–188 Change orders, in independent contractor meeting and prescreening, 168–169 agreement, 177 meeting interview sheet, 169 Charts of accounts, in QuickBooks, 229 meeting outline, sample introductory, 171–174 “Choose Your Neighbor” flyer, 204 networking with, 27 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 265

INDEX 265

putting appliances before showing property, handling problems, 172–173 219 jobs to bids on with, 173 quality, finding, 164–174 pictures and scope of work for three past jobs, websites, 206 172 Contracts. See also Purchase and sale agreement way of conducting business, 172 in buying-appointment folder, 80 Customer relationship manager program (CRM), owner financing, 80 22 write-up, presale and, 209 Conversion rate, increasing, 60–61 D Conveyance taxes, in selling costs, 231 Daily living, allocating profits into, 248 Copy of buying HUD-1 Statement, 232 Deal(s). See also Financial analysis of potential Copy of selling HUD-1 Statement, 232 deal Costs: finding money to fund, 22 of advertising, 231 first, making profit on, 7–13 bathroom materials breakdown and, 156–157 locating, 245 buying transaction, 75 searching for, 64–65 carrying, 237 Debris, failing to remove, 221 debt service, 231 Debt negotiation, assistance with, 104 financial, 74, 233 Debt service costs, 231 holding, 74 Decisions needed, 144–145 inspections, 231 Defined benefit (DB) plan, 254, 255 kitchen materials breakdown and, 151–154 Delinquent tax/tax lien list, 44 of sales commissions, 212 Demo and cleanout milestone, 188, 189 rehab, 237 Demolition and dumpsters, estimating cost of, selling transaction, 75 137 of sending direct mail, 38 Deposit collection, presale and, 208 of websites, 56, 58 Desktop analysis: County Recorder’s office, 42 classifying and following up leads, 77–78 Craigslist, 206, 214. See also Craigslist marketing creating buying-appointment folder, 79–80 Craigslist marketing: creating comparable package, 78–79 creating ads, 65–67 financial areas in, 74–75 searching for deals, 64–65 listing, 76 Credibility, 62 preparing meeting with the seller, 79 establishing, 60–61 card, 75 as website advantage, 54, 56 in rehab deal evaluation process, 73–89 Credibility packet, 33 valuation sites, 76–77 CRM. See Customer relationship manager Dialing for dollars, 10 program (CRM) Direct mail: CTA. See Call to action (CTA) budget for, 39 CT Homes, LLC, 55, 56, 170, 191 defined, 37 benefits of the company, 171 drip marketing campaign, 44–48 benefits of working with, 172–173 fulfilling campaigns, 49 company description, 171 identifying target market, 39–44 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 266

266 INDEX

Direct mail (continued) Exterior, estimating repair of: not so urgent mailing list, 37–38 fence, 128 piece, components of, 46–48 garage repair, 126 sending, 38–39 gutters, 123–124 setting up inbound system, 48–48 landscaping, 127 tracking mailings, 49–50 paint, 125 urgent mailing list, 37–38 pool, 127–128 Discretionary and fun money, allocating money roof, 122–123 to, 248 siding/stucco, 124 Divorce, 39 windows, 124–125 Documents: final and unconditional lien waiver, 176, 181, F 182 Facebook, 34, 58, 62, 63, 214 final scope of work, 176, 178 Facebook Real Estate Groups, 31 independent contractor agreement, 176–178 Failure, of investors, 15 insurance indemnification form, 176, 180–181 Family: payment schedule, 176, 178–180 networking with, 28 timeline and order of executing, 182–183 as private moneylenders, 87 W-9, 176, 181 FAU. See Forced-air unit (FAU) Doing it yourself mentality, 15–19 Faux cameras, as thief prevention system, 219 Don’ts of staging, 195–196 Fax blasts, 210 Do’s of staging, 195 Fear: Drip marketing campaign, 44–45 changing perception of, 9 Drop-stair scuttle into attic, as sizzle feature, initiating negotiation and, 101 224 as obstacle in achieving goals, 8–9 Due-on-sale clause, 93 Fees: for borrowing hard money, 90 E private lenders, 86 Electricals, estimating repair cost of, 135–136 referral, bird dog and, 29 Electrical supply , 165 referral, incentivizing attorneys and, 26 Elevator pitch, 32–33 Fence, estimating cost repair of, 129 Email blasts, 207, 210 Filing system, organizing, 226–228 Enthusiastic personality, as trait for networking, Final certificate of occupancy (CO), 191 32 Final lien waiver executed, 191, 192 Entity structure, 247–248, 254–259 Final payment to contractor, 191, 192 Entrepreneurs, in business ownership, 18 Final punch list, 191, 292 Esajian, Paul: Final scope of work, 176, 178 background of, 9–12 Final touches and home staging, 193–199 first rehab property of, 10–11 art of staging, 194–196 lists, 39 buyer’s eye walkthrough, 197–198 Eviction marshals, networking with, 28 buying criteria of potential buyer, 198–199 Exit strategy, 100, 220 cleaning the property, 193 Expired listings, 38, 40, 43 taking professional pictures, 196–197 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 267

INDEX 267

Financial analysis of potential deal: Fortune builders website, 7 buying transaction costs, 75 401(k), 254, 255 financial costs, 74 Four Question Test, 148–149 holding costs, 74–75 Frame out milestone, 188, 189 selling transaction costs, 75 Free-and-clear lists, 38 values and pricing, 74 Free and clear , 40 Financial closeout system, 232–235 Friends: Financing rehabs: networking with, 28 finding private moneylenders, 87–88 as private moneylenders, 87 funding deals with hard money, 89–92 FSBO (), 40 funding deals with private money, 84–87 Fulfillment company, for sending direct mail, 38 as obstacle, 83–84 Furniture, buyers and, 194 with private money, 84–87 self-directed retirement accounts, 95–96 G seller/owner financing, 92–93 Garage repair, estimating cost of, 126 subject-to financing, 93–95 Generous personality, as trait for networking, 32 wraparound mortgages, 96–97 Gerber, Michael, 18 Financing Request Package, 91 Goals, obstacles in achieving, 8 Financing request template outline, 90–92 Google, 42, 53 Finishing milestone, 188, 189–190 Google+,34 Fire damaged and code violation lists, 37 GoogleAdWords, 59, 61 Fire damaged/code violations, 40, 44 Google Analytics, 62 Firing yourself: Google voice, 48 building a team, 244–245 GrandCoastCapital.com, 28, 91 outsourcing and automating, 245 Grand Coast Capital Group, 84, 92 training process, 243–244 Graph paper, need for, 145 Flashlights, 145, 222 Growth capital, 83, 84, 248 Flat-fee listing, 212 Guarantee statements, on direct mail piece, 48 Flexibility and customization, of websites, 55 Gutters, estimating cost of, 123–124 Flexible and move-out dates, 103 FlipComp website, 76, 79 H Flips, deal analyzer for, 79 Hard money, funding deals with, 89–90 Flood lights, 222 Hard moneylenders, 28–29, 89–92 Flooring, estimating repair cost of, 132–133 , LTV for, 90 Flyers, 210 Headline, in direct mail piece, 46 Follow up, networking and, 30 Heating, ventilation, and air conditioning Forced-air unit (FAU), 136 (HVAC), 136 Ford, Henry, 9 Heating and power system, failing to maintain, leads, using Google search for 221 finding, 42 HELOC. See Home equity line of credit Foreclosure lists, 42–43 (HELOC) For sale signs, 211 Helping the seller, 103 FortuneBuilders Gives, 260 High-rate loans, 89 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 268

268 INDEX

Holding costs, 230–231 Inspections: Homeadvisor.com, 165 costs, 231 Home banners, 204 in independent contractor agreement, 178 Homebuilders Associations, 30 Instagram, 62, 63–64 Home curb appeal, tips helping, 220 Insulation milestone, 188, 189 Home equity line of credit (HELOC), Insurance: 86–87 adding private lender to property, 85 HomeGain website, 76, 79 builder’s risk and vacant dwelling, 180 Homeowners, unplanned real estate decision captive, 253–259 and, 44–45 certificate adding investor as insured, Home Shows, 30 180 Homesnap website, 76 in independent contractor agreement, HostGator,com, 54 177 banners, 204 liability, 169, 175, 180–181 House needs, as buying criteria, 199 for residential redevelopment projects, Houzz, 34 180–181 HVAC. See Heating, ventilation, and air Insurance indemnification form, 176, 180–181 conditioning (HVAC) Interest, private moneylenders and, 86 HVAC supply houses, 166 Interior, estimating repair of: bath, 132 I electricals, 135–136 ICA. See Independent contractor agreement flooring, 132–133 (ICA) HVAC, 136 Inbound system, setting up, 48–49 kitchen appliances, 131 Income statement/profit and loss, in QuickBooks, kitchen condition, 130–131 229–230 kitchen layout, 129–130 Independent contractor agreement (ICA), mechanicals, 134 176–178 plumbing, 134–135 Information. See also Contact information; sheetrock/drywall, 133–134 Property information Investors. See also Rehab investors memorable, websites and, 61 advanced, 24–25 in websites, overloading of, 60 beginner, 23–24 Inherited properties, 41 failure of, 15 Inherited property lists, 38 lists favored by, 40–44 In-house compilation, for sending direct mail, real estate, impact as, 260 38 successful, 260 In-house fulfillment, in direct mail, 49 thinking like, 12–13 In-person analysis: working with other, 23–29 buying appointment, 81–82 IRA funds, 87 preevaluation en route to meeting, 80 J property preevaluation, 81 in rehab deal evaluation process, 80–82 Jobs, Steve, 261 In-person networking opportunities, 30 Job sites, for finding contractors, 166–167 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 269

INDEX 269

K Living trust, 256 Kitchen: Loan-to-value ratio (LTV), 90 estimating repair cost of, 129–131 Local trade supply stores, for finding contractors, scope of work, 149–153 165–166 sizzle features in, 223 Location, as buying criteria, 198 Lockboxes, as thief prevention system, 218 L Lockbox with spare key, need for, 145 Associations, 30 LTV. See Loan-to-value ratio (LTV) Landscape lighting, 221–222 Landscaping: M costs of, 127, 231 Maintenance of property, selling and lack of, skimping on, as selling mistake, 219–220 220–221 Layout, SOW Manager, in business ownership, 18 Lead advantage, as website advantage, 54 Managing rehabs: Lead capture ability, of websites, 55 contractor kickoff meeting and Lead capture page, 55–57, 56 communication, 187–188 Leads, classifying and following up, 77–7 rehab milestones, 188–190 Learning, about sellers, 102–103 MAO. See Maximum allowable offer (MAO) Leave-with-seller credibility packet, 80 Marketing. See also Craigslist marketing; Lender’s mortgage/trust , 85 Marketing campaign; Network Leverage: marketing; Online marketing reevaluating, 18 checklist, 209–210 using, 10 for contractors, 164–165 Liabilities, building permits and, 184 Craigslist, 64–67 Liability insurance, contractor’s, 169, 175, materials, 145 180–181 network, 21–22 License, contractor’s, 169, 175 privatemoney credibility packet and, 88 Lien waiver, final and unconditional, 181–182 Marketing campaign: Lifestyle by design, 11 deal from, 8 Light, bringing natural, 138–139 drip, 44–48 Lighting: Master property folder, 226–228 estimating cost of, 135–136 Maximum allowable offer (MAO), 99–100, as thief prevention system, 218 129 Limited Liability Company, 247 Mechanicals, estimating repair cost of, 134 Line of credit: Meeting: home equity, 86–87 project kickoff, 187–188 personal and business, 87 Meetup.com, 30, 64 LinkedIn, 31, 34, 58, 62, 63, 64 Mindset, residential redeveloper and, 19 Liquidated securities and investments, 87 Minimum wage activity (MWA), outsourcing, Lis pendens/NOD (notice of default) filings, 42 19 Listening, to sellers, 101–02 MLS. See Multiple Listing Service (MLS) Listing the property, 209–210 Mobile marketing platform, 204 List provider (local or national), 43 Moby, 204 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 270

270 INDEX

Money: Network marketing: to fund deals, finding, 22 as form of marketing, 21–22 making, 8, 11, 259 power players in, 23, 24 networking with attorneys and, 26 Noise elimination, 138 Moneylenders, networking with, 28–29 Not so urgent mailing list, 37–38 Monthly invoice folder, 226–228 Mortgage brokers, networking with, 25–26 O Mortgage company, authorization to release Objections handling, making offers and, 105–106 information, 80 Obstacles: Mortgages, wraparound, 96–97 financing as, 83 Move, assistance with, 103 rehabbing and, 8–9 Multifamily rentals, 11 Occupied property, current status of, 71 Multi-letter, setting up, 44 Offer/benefits statement, in direct mail piece, 47 Multimedia, in websites, 55 Offers making and writing: Multiple Listing Service (MLS), 21, 73, 76, 77, calculating maximum allowable offer, 99–100 211 determining seller’s needs, 101–104 Multiple streams of income, as website handling objections, 105–106 advantage, 54 mastering negotiation, 100–101 MWA. See Minimum wage activity (MWA) presenting strong offer, 104–10105 property walkthrough, 104 N purchase and sale agreement, 106–118 National Association of Realtors (NAR), 53, 64 One-Minute Contractor Elevator Pitch, 167–168 Navigation, of websites, 55 1031 exchanges, 250 Negotiation: Online classified websites, 206 presenting an offer and, 105 Online marketing: property walkthrough and, 104 contractors and agents websites, 206 with the seller, 100–101 Craigslist marketing, 64–67 Neighborhood, as buying criteria, 198 creating online presence, 57–62 Neighbor referrals, 204 developing company website, 53–57 Networker. See also Networking of property, 205–206 becoming effective, 29–31 using online classified websites, 206 personal traits of, 31–32 using social media and online communities, Networking: 62–64 art of, 29 Online networking, 30–31 building buyers list and, 207 Online presence: in-person, 30 Craigslist marketing, 64–67 at meetings, 211–212 creating, 57–62 online, 30–31 creating blog, 61–62 perfecting the process of, 31–35 developing and creating, 57–58 person to person, 30 developing company website, 53–57 power of, 22–23 driving traffic, 58–59, 61 things to remember in, 34 improving conversion rate, 60–61 tools for, 32–35 joining social media, 62–64 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 271

INDEX 271

pay per click, 61 Penalties, in independent contractor agreement, recap of, 67 177 search engine optimization, 59–60, 61 Permits social media and online communities, 62–64 estimating cost of, 136–137 tracking and retention, 62 pulling, 182, 183–185 Online search, 211 Persistent personality, as trait for networking, 32 Open house hosting, 212–216 Personal and business lines of credit, 87 checklist, 215–216 Personality traits, 31–32 following up with buyers, 215 Personal motivations, seller’s, 101 greeting potential buyers, 215 Personal touch, direct mail with, 38 importance of five senses in, 213 Person to person networking, 30 preparation for, 212–213 Phone analysis, in rehab deal evaluation process, set up, 215 69–73 spreading the word, 214 Pictures, professional: Openness and honesty, website and, 60 in classified websites, 206 Operational capital, 84, 248 power of, 196–197 OPM. See Other people’s money (OPM) Pinterest, 34, 62, 63 Opportunities: Plan, direct mail campaign and determining, 39 finding networking, 30–31 Plumbing, estimating repair cost of, 134–135 recognizing, 22–23 Plumbing supply houses, 165 Options contracts, 80 Pocket-listing flyers to agents, 204–205 Other people’s money (OPM), 83 Pool, estimating repair of, 127–128 Outdoor lighting, 221–222 Postcards, 45, 50 Outdoors, sizzle features in, 223 Postgame analysis, 225–228 Outsourcing: Post-rehab accounting, 228–230 fulfillment, in direct mail, 49 Post-renovation value, comparable sales and, MWA activities, 19 162 sending direct mail and, 38 PPC. See Pay-per-click (PPC) Outsourcing and automating, firing yourself and, Preforeclosure leads, using Google search for 245 finding, 42 Owner financing. See Seller/owner financing Pre-foreclosure lists, 37 Owner financing contracts, 80 Preforeclsoures/Notice of Default (NOD), 41–42 Premarketing checklist, 205 P Pre-NOD (notice of default), 40 Paint, estimating cost of, 125 Pre-NOD (notice of default) lists, 42 Paint supply houses, 166 Preparation of rehab, 144–145 Paperwork, in buying appointment folder, 80 Prescreening retail buyers, 207–208 Partnership, 25 Preselling the rehab, 203–205 Passion, focusing on, 261 Price: Path lights, 222 as buying criteria, 199 Payment schedule, 176, 178–180 lowest, seller’s, 73 Pay now or pay later concept, 122 Private investor, 84 Pay-per-click (PPC), 58, 61 Private money, funding deals with, 84–87, 85 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 272

272 INDEX

Privatemoney credibility packet, 88 Property repair estimate sheet system, 120–122 Private moneylenders, 84–85 Property walkthrough, 104, 120, 145–146 capital investment and, 86 Purchase and sale agreement: finding, 87–92 addendum, 115 funding deals with, 84–87 additional terms and conditions, 115–116 vs. hardmoney lenders, 89–90 adjustments, 113 Probate, 40, 41 affidavit of, 80 Probate lists, 38 buyer and seller, 117 Products and services lists, as website advantage, buyer’s default, 113 54 common interest community, 114 Professional mailing, 38 complete agreement, 116 Professional private-lending guide, 88 condition of premises, 110–111 Profit: deposits, 110 analysis of, 232 equal housing rights, 115 analysis report, 234 fax transmission, 116 breakdown analysis, 233–235 financing contingency, 110 on first deal, 7–13 inspection contingency, 111 making, 12, 260 items included in sale price, 108–109 rehab, 17 lead-based print statement, 111 Promissory note, 85, 86 listing broker, 114 Property. See also Property information marketable title, 112–113 adding private lender to insurance, 85 notice, 116–117 debt against, 72–73 occupancy, possession, and closing date, 112 disclosures, 80 property condition report, 114–115 failing to maintain, 220–221 purchase price, 109–110 folders for, 226–228 real estate description, 108 listing, 209–210 risk of loss, damage, 114 preevaluation, 81–82 seller and buyer information, 107 recording acquisition of, 236 time to accept, 117 status of, 71–72 warranty deed, 112 tax card, 75 Purchase of property, accounting for, 230 Property information: current debt against property, 72–73 Q general, 71 QuickBooks, 228–229 online property value websites, 73 balance sheet, 230–231 property condition and repairs needed, chart of accounts, 229 72 class income statement/profit and loss realtor’s contact information, 70 statement, 233 seller’s contact information, 70 income statement/profit and loss, 229–230 seller’s lowest price, 73 journal entry from, 233 seller’s motivation, 72 quick report from, 232–233 status of occupied or vacant property, 71 setting up a file, 235–236 status of rental property, 72 Quote itemization Form, 160, 161 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 273

INDEX 273

R Rehab deal evaluation process: Radio noise, as thief prevention system, desktop analysis, 73–80 218 in-person analysis, 80–82 Rapport, building, 34, 81 phone analysis, 69–73 Readflow.com, 54 Rehab deal(s). See also Rehab deal evaluation Realeflow database, 207 process Real estate agents, networking with, 25–26 first, 15–17 Real estate coaching program, 7 funding with hard money, 89–92 Real estate commissions, in selling costs, secrete to landing, 21 232 Rehab investors: : as business owner, 17–19 leveraging, 261 contractors as source of leads for, 27 time and, 12 focus of, 15 Real Estate Investment Associations (REIAs), networking and, 23–29 167 networking and, 23 Real estate investor, impact as, 260 Rehab property, first, 10–11 Real Estate Investor Association (REIA) Rehab(s). See also Financing rehabs; Managing meetings, 30 rehabs; Rehabbing; Rehab deal(s); Real estate license, 26–27 Rehab system Real estate mortgage/trust deed, 86 accounting areas for, 230–232 (REO) department, 29 analysis, 233–234 Real estate success, 8 budget, 10 RealQuest website, 76, 79 business, actions in growing, 143 Realtor.com, 211 costs, recording, 237 Realtor’s contact information, 70 as do-it-yourself hobby, 12 website, 76 finding properties to, 53–67 Referrals: first project, 10–11, 143 contractor, 167 preparation of, 144–145 fees, incentivizing attorney and, 26 preselling, 203–205 mortgage brokers and, 25 profit, 17 neighbor, selling property and, 204 success of, 163 to previous jobs, contractors and, 169–174 Rehab system, 7 Rehab and carrying costs (Holding or contract closeout and final payment, 191–192 Maintenance), 230–231 creating detailed scope of work, 147–162 Rehabbing, 7 final touches and home staging, 193–199 from bartending to, 9–10 hiring contractors, 163–174 business of, 206–208 managing the rehab, 187–190 golden rule on, 12–13 necessary critical documents, 175–185 master, 7–8 taking pictures and deciding needs, 143–146 money and, 10–11 REIA. See Real Estate Investor Association obstacles and, 8–9 (REIA) meetings TheRehabbingBible.com, 35, 177, 181, 191, Relationships, with hard moneylender, 89 235 Relocation housing, assistance with, 104 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 274

274 INDEX

Renovation phase, completion of, 85 double checking, 162 Rental property, current status of, 72 final, 176, 178 REO department. See Real estate owned (REO) kitchen example, 149–153 department layout, 158–160 Repairs estimation sample, 164 areas adding value to residential home, S-Corp., 247 138–139 Search engine optimization (SEO), 58, 59–60 demolition and dumpsters, 137 Self-directed IRA, 95 exterior, 122–129 Self-directed IRA investing, 250–253 four-day rehab boot camp, 119 Self-directed retirement accounts, 95–96 interior, 129–138 “Sell” as is, 103 miscellaneous, 137–138 Seller lead sheet, 69 mistakes in estimating repairs, 139 Seller/owner financing, 92–93 permits, 136–137 Sellers. See also Selling mistakes; Selling system property walkthrough and, 120 contact information, 70 repair system sheet, 120–122 determining needs, 101–104 termites, 137 financing, 92–93 Researching sellers, 101 listening to, 102 Researching the seller, 101 lowest price, 73 Residential redeveloper, defining, 19 motivation of, 72 Residential redevelopment, capital for, negotiating with, 100–101 83–84 preparing for meeting with, 79 Response rate, of direct mail, 49–50 providing offer to, 103–104 Retirement accounts, 87, 95–96 researching, 101 Risk, with subject-to financing, 94 solving the problems of, 102 Roof, estimating cost of, 122–123 uncovering hot-buttons, 101–102 Rope lights, 222 Seller squeeze page, 57 Rough in milestone, 188, 189 Selling costs, 231–232 Selling mistakes: S failing to follow order of operations, 217 Sale: failing to incorporate sizzle features, 222–224 analysis of, 235 failing to maintain property, 220–221 rehab property and recording, 238–239 forgetting outdoor and landscape lighting, Savings and retirement, personal, allocating 221–222 profits into, 248 leaving the property unsecured, 218–219 Schedule: skimping on landscaping, 219–220 completion, in independent contractor Selling system: agreement, 177 building buyers list, 204–209 payment, 178–180 hosting open house, 212–216 Scope of work (SOW), 147–162 listing the property, 209–210 bathroom example, 153–158 marketing property online, 205–206 creating bid package, 160–162 preselling the rehab, 203–205 developing, 148–149 working with agents, 210–212 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 275

INDEX 275

SEO. See Search engine optimization (SEO) Taxes, allocating profits into, 248 Seven-stage rehab system. See Rehab system Taxes and building department, in independent Sheetrock/drywall, estimating repair cost of, contractor agreement, 176 133–134 Tax-lien list. See also Delinquent tax/tax lien-list Sherwin Williams store, 166 Tax-lien list, 37 Short-term loans, 89 Teaching vs. finding deals, 260 Siding/stucco, estimating cost of, 124 Team building, 244–245 Signs, 210, 211 Technical fundraising application, 10 Simple navigation, as website component, 55 Technician, in business ownership, 18 Simplicity of website, 60 Termites, estimating cost of, 137 Sitemeter, 62 Text and phone-automated hotlines, 204 SiteXdata website, 76, 79 TheRehabbingBible.com, 160 Sizzle features, failing to incorporate, 222–224 30/60/90-day-late lists, 37, 40, 42 Skylights, as sizzle feature, 224 30/60/90-day overdue payments, 40 Social media: Time/timeline: as advertising outlet, 214 importance of, 15–16 investment in, 34–35 to master and execute rehab, 143 as marketing technique, 62–64 for preselling properties, 203 Social networking sites, 62, 64 pulling permits and, 184 Software: reevaluating, 18 to create websites, 55 residential redeveloper and, 19 deal analyzer, 79 to start preselling properties, 203–204 for screen capturing and recording, 243 valuing, 19 Solar lighting, 222 Timing: Solo 401(k), 255 of documents, signing and, 182–183 SOW. See Scope of work (SOW) of urgent and not-so-urgent lists, 38 Space, creating and opening, 138 Title, in selling costs, 231 Squeeze page, 48–49, 56–57 Title company, 43 Squires, Scott, 7–8 Tracking: Staging, art of, 194–196 direct mail campaign, 49–50 StatCounter, 62 retention and, 62 Strategies: Trade Shows, 30 investment and retirement, 249–258 Traffic, websites and, 58–59, 61 money allocation, for rehab profits, 248–249 Training process, firing yourself and, 243–244 Subcontractors, 169, 177 Transactional capital, 84 Subject-to financing, 93–95 , 76, 79, 214 Success, secrets to sustainable, 259–261 Trustworthy personality, as trait for networking, Surround-sound system, as sizzle feature, 224 32 Twitter, 34, 58, 62, 63 T Tape measure, need for, 145 U Target market, direct mail campaign and, 39–44 Underwater lights, 222 Tax-deferred growth, IRA vehicles and, 252 Unique selling proposition (USP), 47 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 276

276 INDEX

Unstaged property, 194 contractors and agents, 206 Urgent mailing list, 37–38 link to, advertising property and, 204 USP. See Unique selling proposition (USP) online, finding contractors using, 165 Utilities costs, 231, 233 online classified, 206 online property, 73 V RealQuest, 76 Vacant property, current status of, 71 three websites strategy, 56 Vacant property/absentee owner, 40 valuation, 76 Views, eliminating unpleasant, 138 vs. web/online presence, 57–62 Website squeeze page, 48 W White color, using, 139 W-9, 176, 181 Windows, estimating cost of, 124–125 Walkthrough, buyer’s eye, 197–198 Wordpress.com, 54 Warranties, in independent contractor Wordpress.org, 54 agreement, 178 Workers’ compensation insurance, contractor’s, Warranty deed, 112 175, 180 Wealth keeping and growing: Wraparound mortgages, 96–97 entity structure, 247–248 investment and retirement strategies, 249–258 Y money allocation strategies for rehab profits, Yahoo! Groups, 31 248–249 Yard, failing to maintain, 221 Web address, 58 Yellow letters, 46 Websites: Yelp, 211 advantages of, 54 YouTube, 34 agents, 206 company, developing, 53–57 Z components of, 54–55 Zillow website, 76, 77, 79, 211, 214 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 277 Trim Size: 7.375in x 9.25in Esajian bindex.tex V1 - 09/10/2014 1:15pm Page 278