The Fast Track Path to Building a Real Estate Investing Business Using the For Rent Method

Hi, this is Joe Crump. The title of this audio is The Fast Track Path to Building a Real Estate Investing Business Using the For Rent Method. In this audio I’m going to teach you how to buy and sell properties with no money down and no credit. You don’t need to use cash at all and no one will ever check your credit report or verify your income. You’ll never have to deal with banks and you bypass all the normal gatekeepers of traditional real estate transactions like real estate agents, mortgage officers, home inspectors and appraisers. You don’t need a license to do these deals because you’ll be acting as a principal in the transaction and you won’t be representing anyone but yourself.

It’s legal to sell properties that you have a personal interest in. And that’s why you see for sale by owner ads all over the internet and the newspapers. The problem with FSBO’s – for sale by owner – is that eighty-five to ninety-five percent of them don’t succeed. And because of that we use this group of people as our primary lead source for this technique. I teach what I call the Hierarchy of Zero Down Structures. The structure I’m going to teach today in this program, I call the For Rent Method.

Because of the scope of this program I won’t have time to talk about Subject To, Multi-Mortgage, Land Contract or Contract for Deed, or Assignable Cash Offers. Those are the other structures in my hierarchy. I believe the For Rent Method is the best zero down structure for beginners to learn. It’s a way to get money coming in very quickly with very little work. It doesn’t help you build your portfolio. You use other structures for that. But it’s a great way to create chunks of cash, drop it into your bank account on a consistent basis. It can help you replace your job-related income and makes it possible for you to leave your forty hour a week job within a few short months.

Now to do this, you have to commit to working eight to ten hours a week for the first few months. Most people who are working a forty hour job can do that if they arrange their schedule to make that happen. The bad news is that this eight to ten hours a week at the beginning as you’re just getting started is going to be spent on the phone making offers to sellers. If you try to skip this work, you’ll probably fail.

I teach this technique to my six-month mentor students, those students who pay almost as much as it would cost to go to college for a semester, to learn personally from me. I teach them this technique first, even though I also help them with the other structures and with automation, systemization and outsourcing, but I teach this first because most people who get into my program want to make money, quit their job and devote full time to their new real estate investing business. After two decades of teaching real estate investing I found that this technique is the best one to start with for most people.

Let me also say this about the need to do the work. If you don’t do that work you won’t make any money. If you look at my mentor students, about thirty percent of them make money in the six months they’re in my program. I’m told that normally in programs like mine other teachers have on average a five percent success rate. So I guess I’m about six hundred percent better than average, but I still find that disappointing when I know that it could be one hundred percent.

The other statistic that you should know is that one hundred percent of the people who do the work the way I lay it out in my program all the way, and the way I’m going to outline it for you here on this audio, one hundred percent of those people make money. So the bottom line is, if you do the work you’ll make the money. And that work includes eight to ten hours a week on the phone with sellers learning how to get them to accept your offers, at least in the beginning.

That means you’re going to need to have fifteen to twenty full conversations with sellers per week. When I say full conversation I mean you don’t get off the phone with them until they say “no” five times. You keep asking them the questions I give you until they either say “no” five times or hang up on you. I know that sounds a little bit crazy or harsh, but it’ll teach you some very important things and I’m not going to have time today to really explain my thinking behind all this, but just do it and it’ll make a difference for you.

After you get off the call I highly recommend with these people, I highly recommend that you write down what you did. What you did right, what you did wrong in that particular conversation. I’d also highly recommend that you record your conversation with them, for your use only, and then listen to your call within the next few days. This is excruciating, by the way. You’re probably going to sound a bit like an idiot, inexperienced, unsure of yourself, and not particularly knowledgeable. It’s hard to be when you’re just getting started. You can’t be good unless you go through this process. It’s like learning how to play the piano. You can learn music theory all day long and be able to pass every test they throw at you but if you don’t sit down and put your fingers on the keyboard you won’t be able to play. You need that muscle memory. You need that memory of being able to make offers to people, to be able to answer their questions, to be able to think about their situation and be able to answer their questions.

I’ve had students who have put together deals after two or three calls with sellers. This is wonderful when it happens, but it usually happens because they got lucky. And if you watch some of the interview case study videos that you’ve done with my students you’ll see that some of those people just got lucky their first time out and they even talk about it. Normally, you have to make a hundred calls, a hundred full conversations, where you don’t get off the phone until they say “no” five times. Most of my students, even the ones who’ve never done phone work before, can get a lease option memo signed with that much work. Sometimes it takes people three, four, five hundred calls. I’ve never seen anyone make five hundred calls like this and not put a deal together.

They also tend to become master level deal makers after they make that many calls. It’s truly impressive, truly a sight to see and hear. I’ve had so many of my students that have done this and when I listen to them on the phone I am amazed how many of them are better than I am. Also, out of the ones that got lucky and put deals together after the first few calls, most of the time they have to put in their hundred calls for the second deal. Not always, but often. The advantage that they have is that they know it’s possible and it gives them confidence. They’ve done it once and they know they can do it again. Confidence is a major factor at being good on the phone.

The good news is that if you do it for three or four months or so you’ll get really good at talking on the phone. There’s no substitute for this kind of practice. It’s such an important part of my program. If you put in the work and learn from your mistakes as you do it you’ll start making money. After you get good at it your conversion ratio goes way up in a very short period of time. So you may go from one deal from a hundred calls to one deal in five calls. If it takes a couple hours to put in five calls, you can see how your income per hour will go up dramatically once you gain skill. And you also see how many deals you can put together in a short period of time if you’re able to convert on that level.

By the way, learning how to talk is a prerequisite for all entrepreneurial activity. Even internet marketing. In business nothing happens until a sale is made. Marketing and sales are the only profit centers in business. Everything else is an expense. If you learn to do the thing that brings in profits, you’ll be able to transfer those skills to any business in the world. And if you’re an entrepreneur you’re going to want to build other businesses. I do it all the time. It’s a lot of fun. So that’s the priority number one for my mentor students. And it should be your priority, too.

And don’t get lazy and try to use your money or your credit to do deals. Yes, it is easier to put together a deal if you use your own money and your credit. But it’s not any easier to make money. They say you need money to make money. But I say if you can’t make money with no money, you probably can’t make money with money. And it’s way higher if you’re using your money, the risk is way higher if you’re using your money and credit. Learn it the way I teach and then in the future, if you think you still need to, then think about using your credit.

But there are other reasons I teach the For Rent Method at first to my mentor students. The For Rent Method is a structure that’s easy to systematize. You can create a pipeline of deals using consistent, automated marketing to keep the deals flowing in on a regular basis. I built a software system, I call it the Pushbutton Automarketer. You can find it at pushbuttonautomarketer.com. And it does these things for me. It automates my marketing and follow up. It also makes it possible for me to outsource the work and manage those people that I can’t automate. You can automate and outsource ninety percent of the work needed to implement the For Rent Method. And maybe ninety-nine percent of the work if you do it right and do it the way that I do. Eventually you can stand at the sidelines and monitor the work being done by your system rather than doing it yourself, tweaking it, making suggestions, cashing checks. When you get to this point you can spend your time looking for ways to optimize the income that’s coming in and looking for additional sources of income and maybe even building other businesses. Or, maybe you just want to take some time and go live your life and have a good life. I have people that do this business part time, make six figures a year and they’re happy with that, and then they go off and, you know, do, go travel around the world, or they spend time with their kids, or whatever it is they want to do, once you learn how to make money by putting together a deal. Then you can learn how to systematize, automate and outsource most of your work.

You can then move on to building your portfolio of properties. Flipping deals using the For Rent Method is how you earn great income and quit your job. Buying properties using the zero down structures I teach allows you to build a portfolio. Building a portfolio is how you get rich. So you’re going to do it in this order if you’re going to follow my advice and that’s what I’m suggesting. So this is the basic path.

In this program, I’m going to teach you the For Rent Method to help you get started with the first step of this process. Don’t waste your time listening to this program if you want a get rich quick scheme. Come into this with the intention of doing the work and following the path that I lay out. This is a business building program and not a get rich quick scheme. So, now let’s get started.

First let me define the For Rent Method and walk you through the basics. The For Rent Method essentially is we’re controlling a property using a lease option document, I call it the Lease Option Memo, it’s a one-page document. We’re going to talk about it in a bit. We use the document to control the property. That makes us a principal in the transaction. We then take that lease option property and we’re offering it to the seller and saying we’d like to buy your property on lease option. We’re going to assign this property to another buyer. We then assign our right to buy that property on lease option at a specific price with a specific monthly payment over a specific term. We assign that right to another buyer who wants to buy a property but doesn’t have perfect credit but has good income.

We raise the price of the property. So, let’s say you have a property that’s $200,000. You raise the price to $210,000 and you ask for $10,000 as a down payment. The buyer comes in with the down payment, you take the $10,000, you give them the buyer at $200,000 and let’s say the monthly payment they want is $1,800 a month which is market rent. You get them market rent for the property, so they get the first $1,800 a month rent and then they have a lease option tenant who has the right to buy that property for $200,000 which is what they still owe on the property within the next three years and make payments of $1,800 a month during that time. So, essentially what we’re doing is controlling lease option properties, and then turning around and selling our right to buy them. We’re not putting any money down to control these properties. We’re not using our credit to use these properties. When we turn around and sell these properties, we’re not doing the due diligence. We’re asking the buyer to do their due diligence and we ask them to fulfill and fill out a disclosure that explains to them what they need to do and allow them to do that work so that most of the work is done by the buyer and the seller and not by you.

The main function that you’re there is to facilitate that process. You’re working as an investor and you’re making a profit. You’re not working as an agent. You’re representing only yourself. You’re not representing anybody else. These aren’t your buyers and sellers, this isn’t your listing. This is your property that you control, then you’re turning around raising the price and selling like an normal investor would do. The only difference is you don’t have any cash into the deal. So that’s what the For Rent Method is.

Next, let me walk you through the Lease Option Memo. You can get these documents, by the way, from my Amazon book I’ve got. It’s called “Automated Real Estate Investing.” Type in my name and you’ll find it. It’s got a red cover and it’s three bucks and the documents come with that book. You can also get these documents if you’re in my mentor program or you can get it in the training modules of the Pushbutton Automarketer. And we’re going to talk about the Automarketer a little bit more as we go and how we utilize it to make this system work.

But the Automarketer is something to make your job easier. It’s not necessary for you to build a business like this. It just makes your job a whole lot easier and that makes it possible for you to automate and outsource ninety percent of the work. But, you can do this manually, too. So if you don’t have a dime to spend, you can still do this very cheaply. Or if you only have three bucks, I guess you do need that to get those forms. Or, you can just transcribe what I say next because actually you can do it for free. Because I’m going to read it to you.

All right, so let me pull out the memo and read this for you. Okay, Lease Option Agreement Memo. The way it’s laid out is a one-page document. There’s a place on here for the seller to sign it and that’s, and put a date on it. There’s also, the seller, you put the name in there, will allow the buyer, that’s you, to lease option the property at, and then you put in the address, the city, the state and the Zip Code. The purchase price to be, and the way you determine the purchase price is you ask them, how much do you want for it? And if it’s somewhere close to being market value, that’s okay. Accept that price. You don’t need to negotiate a price. That’s one of the reasons this thing is easy to sell because you can give them full market value. The don’t have to pay any realtor fees to make this happen and there’s some really beautiful ways that they’ll make more money on this as they go through the process. And we’re going to try to talk a little bit about those if I’ve got time.

The term of the lease option to be three years. You can do it for less, you can do it for more. Three years I found to be a pretty sweet spot because that typically is what the buyer would like because they feel they need the time in order to get their credit in place so that they can go out and buy the property and get a new mortgage. Most people can clean their credit in a year or two if they make a concerted effort to do it. So give them three years to do it. That usually makes sense. And it usually makes sense for the seller and the buyer. The next line is the monthly lease payment to be. And this is the rent amount. And this is to be paid monthly in advance starting the day the tenant moves in.

So you want to pick market rent. If you’re above market rent on this price, you won’t sell the property. This is the most critical number on this document. Make sure that you’re at market rent or below. The farther you are below market rent the easier it’ll be to sell, but it’s okay. You can get market rent for these properties. And you’re going to find out real quickly if this property doesn’t sell, it’s going to be because this number is the problem number, not necessarily the purchase price. People that are buying on lease option are going to be looking at their monthly payment over just about anything else.

The next line on the memo is the term of the lease option to begin as soon as the buyer acquires a lease option tenant for the property. So, basically what we’re telling them is we’re going to go out there and we’re going to find a buyer for this property that we’re not living in it ourselves. The next line is this lease option agreement memo will be assigned by the buyer to a new lease option tenant. So that’s, we’re showing them here how we’re making money. We’re being very transparent with them about this process.

Next line is seller has the right to approve or reject a new lease option tenant. So what we’re doing is giving them the right to say no if we bring in a tenant. We’re trying to make this offer, this lease option memo, as easy for them to sign as possible. Sometimes I’ll tell people this, I call this document the “stab me in the back” contract. Because it kind of allows people to stab me in the back and as I go through this you’ll see why. What you need to do is learn how to build trust with people so that they don’t do that. And usually it doesn’t happen. Once it’s happened to you once or twice you kind of figure out how to make it not happen again. And it just takes practice sometimes.

The next line is seller may use the buyer’s lease option agreement forms, or may use forms that the seller chooses when the tenant buyer moves in. So we’re saying we’ve got lease option documents if you want to use them, or if you want to use your own, we don’t really care. And truly, it doesn’t matter. Our documents are better than theirs nine times out of ten, ninety-nine times out of ten – actually, I’ve never found better documents than mine. But, if they want to use theirs, who cares? It doesn’t really matter.

The next line is seller may cancel this agreement at any time if they find their own tenant or decide not to sell. This is the stab me in the back part. If they want to kick you out of this deal they can cancel it at any time. One of the things that we often ask for is give us thirty days before you go back out there and continue to look for tenants. Because some of these people are looking for tenants. Some of them are For Sale By Owners. We’re going after both sets of advertisers on craigslist and Zillow and other property sites.

Next line, buyers intention is to find a lease option tenant and assign this lease option agreement memo to that lease option tenant for a fee or a profit. Lease option tenant will then pay seller the monthly lease amount until they exercise their option or until they end the option term. It’s all pretty self-explanatory. The next line here, seller agrees to allow buyer to put a sign in the yard advertising the property for sale. Make sure your sign is the only one that’s in the yard. That’s an important line that we have to fight for sometimes.

Next line. If buyer does not acquire a lease option tenant to assign this deal to within ninety days of acceptance of this lase option agreement memo, this memo becomes null and void. And then after that the important disclosure, buyer is the principal in this transaction and is not a licensed real estate agent. Buyer does not represent anyone in this transaction but themselves. And, by the way, if you are an agent, say buyer is a principle in this transaction and even though they are a licensed real estate agent, the buyer does not represent anyone in this transaction but themselves. So you can do it either way.

Signatures below signify acceptance of this agreement, then there’s a place for the seller to sign and the buyer to sign. And that’s it. Once they sign that document that makes you a principal in this transaction. Now you can go out there and sell that property yourself. Now, I should say at this point that I think that if you have any legal questions about this process that you go out and talk to an attorney about it and make sure you’re comfortable with this process. I am not an attorney. I can’t give legal advice and even though we’re talking about contracts here, this is not legal advice that I’m giving you. I’m only telling you this from my own experience over the last two decades of dealing with people, dealing with buyers and sellers and attorneys and everybody else that I’ve had to deal with with this document. But you may need to have it clear in your mind on what makes it legal. And not everybody is comfortable with this process until they’ve heard it from the mouth of someone who’s got a degree. So if that’s you, make sure that you get that input before you go through this process. So, that’s it. That’s the Lease Option Memo.

Next, I’m going to walk through the scrip with you. We’ve got a script that you can use when you call these leads back. I teach this script two ways. The one-step process and the two-step process. I’m going to show you the two-step process here since I think it’s often a good way for beginners and it’s pretty easy to understand. The script is in the Automarketer, so if you go to the Automarketer and you go in and you add a property to a specific lead it’ll pop up and it’s in the format of a webpage form that you can fill out while you’re talking to the seller. There’s also some very handy tools connected to that form that make calling these people a lot easier.

Okay, I’m going to show you how to get to this lead questionnaire if you’re using the Automarketer. Go to Lead Management tab on the left hand, and then you’ll see your leads on the right hand side if you’ve got leads in the system. And on those quick, we call it the Lead Dashboard, on that Lead Dashboard you’re going to see each lead broken down. And on each lead there’s a little icon with a house on it and you can click on that house and click on Add Property and then it’ll ask you to put in a name for that property and address and you’ll save it and it’ll open up the lead questionnaire. Now, on the lead questionnaire it’s got a script on it, it’s got a lot of information in it. It’s got all the information about the lead you’ve been working with so it’ll give you all the history and all the notes that you’ve kept and when it was first contacted and when it was updated and any scheduled appointments that you might have for these people. And you can search all that history if you like and get information about that property. You can also upload images of the property there. This is where you’re going to keep your images.

And then right below your images, there’s the dialog. And the dialog, when you call these leads back, and you’re going to be calling back the leads, and first of all, let me tell you how the Automarketer works because you’re going to be doing the same thing with the script that, if you’re doing it manually, that the Automarketer does automatically. Now, the Automarketer goes to craigslist, it also goes to a few other internet sites that have for sale by owners. It looks at the area that you’re interested in so if you say I want to work in Indianapolis, Indiana, you can pick that area, you can pick houses for sale by owner, you can pick the houses for rent and then you can have it pull that information from craigslist.

And once it pulls those ads from craigslist it also grabs the phone number. And then it will send a text to those people and it will send a text saying would you consider selling your home on a rent to buy rather than selling it outright? If you would, I’m interested. And that’s the tex. And we get a very high response rate from that text and those are the people that we’re calling back. It’s way easier to call people back than it is to call them cold. If you’re calling them cold that’s the dialog that you would use to start the cold call. And if they’re interested in doing it then you’d take it to the next level here.

So I’m going to take it to the next level as though we’ve gotten a lead that’s interested in doing some type of for rent method or at least says “maybe” and is curious about the process. They don’t have to be a definitive “yes” for you to call them back. You need to call everybody back that’s not a definitive “no.” All the definitive “no’s” those are going to go automatically in the Automarketer into a follow up system and they’ll be contacted again and again in the future. You keep following up with people because a lot of times when you put your home for sale, well, eighty-five to ninety-five percent of the time you don’t sell your property. Which means that you may try it for a week, you may try it for a month, you may try it for six months, but eventually you’re going to have to do something else. Which means either take it off the market entirely, hire a real estate agent and what that means as far as the costs and whether or not you’re able to do that, or, use one of the techniques that we’re going to offer using the For Rent Method or using the lease option process which will make them the most money, by the way.

All right. So, they’ve responded, they say, yeah, I’d consider that, tell me more about it, or, I don’t quite understand it, or, yeah, I’ll do it, but give me $50,000 down, something, you know, crazy that they’re never going to get. So, you’re going to call them back and say hey, this Joe – and I’m reading this off of this lead form here – you responded to my email or my text about selling your house rent to buy. I’m an investor and I’d like to make you an offer, but we buy homes a couple of different ways and we need some specific information to help us craft an offer that meets your needs as the homeowner and still makes sense for us. So I was wondering if I could ask you a few questions about the property? And then you just let them reply. And most of the time they’ll say, yeah, because that’s what they’re there for. They’re there to sell their property and if you want to make an offer on it you need information about their property so it’s logical that they would say “yes” to this situation.

So, okay, thanks. It’ll just take a few minutes. And then you scroll down the page and then you see that there’s the Lead Contact Information. So you get their information, you just get their name and address and you know, make sure you’ve got the email address and phone number. I just called you so I’ve got your phone number. Also, what’s the address of the property? And you get the address of their property and you can type in the address as they’re giving it to you because you may not have that information. Although on the lead form that you have that when they responded, you can open up the craigslist ad and we gather all the information from the property that they posted in the ad, but a lot of times they don’t put the address of the property on there. So you’re going to ask them the property address.

You’re going to type that in and all you really need to put in is the street address and the Zip Code and then there’s a button that says Click here to verify the property address and it’ll go into the postal system and it’ll look for that address and it’ll put in the city and state based on the Zip Code. It’ll verify that it actually exists and it’ll pull up a Google map to show you where on the Google map it is in that city that you’re working in.

Now, once you’ve done that, that gives you access to a whole bunch of new information about this property and there’s some other buttons on this lead sheet that’ll help you. One of the buttons is Google Maps. You can click on Google Maps and it’ll open up a Google Maps window and on Google Maps is, I’m sure you’ve been there before, there’s a picture of the property and you can scroll and walk up and down the street just by clicking and you can see that that property looks like, you can see what the neighborhood looks like, you can get a lot of information just by looking at Google Maps. You can also scroll out on the map and see where it’s at in the city and have a better idea of where it’s at.

A lot of the deals that we do are remote. We don’t actually go to these properties and a lot of the times when we’re working outside of our area, and I think the beauty of the Automarketer is it allows you to work in as many cities as you want to. I don’t suggest you work in more than one or two at the beginning. Specifically I’d have you working just one area if you’re in a low income area, or a low priced market like $150,000 or lower average than work in your own market. If you’re in a $400,000, if you’re in California, or, you know, in LA or something like that, or you’re in Brooklyn and you’re dealing with more expensive properties, then you might want to work in that area because sometimes it’s easier to talk to people when you can go face to face with them. But eventually you want to learn how to do this on the phone because you lose so much time when you leave the house.

But you talk to you know, high end person and you talk to a lower end person, sometimes it’s easier to talk to people that are in lower end properties. You just don’t feel as intimidated by them. So that’s one thing that you can do. Anyway, you get the Google Map. The other thing that you’ve got is you can click another button and it’ll open it up, open up the property in Zillow and that’s a wonderful resource because it gives you the Zestimate, the guess on what they think it’s worth, what Zillow thinks it worth. So when the seller says hey, this property is worth, you know, $150,000, and on Zillow it only shows it’s worth $100,000, you ask them, well, I’m here on Zillow and it says $100,000. Why do you feel it’s worth a $150,000? And you get their thinking behind it. If they’ve got real solid comps behind it, sometimes Zillow is wrong so keep that in mind.

It’ll also give the rent and Zestimate which will give you a pretty good idea of where the rents are in that market. And again, rent is the most important part of this process when you’re trying to sell the property. If the rent is too high you will not sell that property so always make sure that you’re at or below market rent and you’re going to have to, as you get to know your markets better, you’re going to know whether that rent Zestimate runs high or runs low in the particular market because they’ve got different algorithms that they use in those area.

It’ll also, Zillow will also tell you how many bedrooms and baths, square footage, it’ll give you tax information it’ll give you the year it was built, it’ll give you square footage of the lot. It’ll tell you whether it’s got, you know, a single family, whether it’s multi stories, whether it’s got parking. It gives you a ton of information. It gives you the school history, or the school neighborhood’s information. It gives you comps for other properties that are available. So it give you a lot of good stuff so you’ll be able to have that information.

So those are the things that you’re going to have right off the bat to be able to look like you know what you’re talking about when you’re talking to the seller about this property. So then you scroll down the page and you’re going to continue to fill out this form, you’re going to continue to ask them questions. How much do you want for it? And you type in a number. How much do you think it’s worth? And you type in a number. Why? How did you come up with the price? You want to find out whether or not they know what they’re talking about. If they came up with the price because of comps that’s one thing. If they came up with it with Zillow, that’s another thing. If they came up because that’s how much they want and they have no idea what the real value is, that’s something that’s important to know and you’ve got to sometimes help them understand what the value is.

The next question here is how much will it rent for? And you type in the number. And there’s a couple of little toggle buttons. Is it vacant, yes or no. Does it need repairs, yes or no. If it’s vacant it’s going to be easier to show. If they live in it that’s going to be a little more difficult for you to show, but it’s still not a problem. Vacant properties are the easiest and fastest properties to move. You don’t have to be there when you show them. They’re, you know, you don’t have to worry about them getting damaged if you show them. That’s a nice way to do it. And if it needs repairs, you need to know approximately how much it’s going to cost to repair it and what those repairs are going to be. Is this property habitable? If it’s not habitable, you can’t do it as a lease option. You’d have to switch it over to a land contract and that gets into the other zero down structures which I’m not going to talk about right now.

How long have you owned it? This will give you some insight. If they say they’ve owned it for five years, and the next questions you ask are about the mortgage and what they paid for it, those types of things, they may not want to give you all this information. But if you know how long they’ve owned it and what it’s worth now, you might have a pretty good idea of what they paid for it when they did buy it. But you’re going to try to get this other information. You have a mortgage? What’s the first mortgage balance? What’s the payment amount? How many years have you got left to pay it off? What’s the interest rate? Do you have a second mortgage, and the same information for that.

Are the payments on the mortgage current, and if now, how late are they? This makes a difference. If they’re late it makes it difficult for you to bring it current. Can they bring it current if it is late? If they’re a month late or two months late it makes, you know, they might be able to bring it current. That way you can still make a profit on this deal. If all the money that you’re getting from your buyer for the down payment has to go to bring the mortgage current, then you’re not going to make a profit.

The next question is why are you selling? You want to find out what their motivation level is? Do you have to sell it, or would you consider keeping it? You want them to start thinking about what happens if I don’t get this thing sold as a for say by owner? You know, eighty-five percent of us don’t succeed. You know, what am I going to do? What’s my next choice? And you’re, what we’re doing here is asking questions to use the Socratic method of selling. What we’re doing is trying to help them come to their own conclusion about the best path for them to go rather than tell us, you know, what we think they should do and twist their arm to do it. We’re going to help them see that maybe what we’re offering is the best option but we’re going to have them come to their own conclusion about it.

Next question, are you moving out of the area, and where? How soon do you have to move? Again, motivation levels. And there’s little buttons along here where you can save your progress so you don’t lose what you’ve got if you’re computer shuts down and you lose your internet connection, you can save the progress and it saves all this information in this property and it’s connected to this lead so it’s easy to access no matter when you come back to it.

There’s some other questions on this thing as well that help get more toward finding out whether not they are willing to do a lease option, you know, would you consider selling this property with a lease with an option to buy? And if they would, then you have some dialog here that’s also written, you know, and we wrote this dialog essentially so you could have a telemarketer do this work for you, or somebody else make these calls for you and get these questions. So, you can say my boss is going to take a look at this, or you can say I’m going to talk a look at all this information that you’ve just given me and I’m going to make you an offer on your house. I’ll show you all your options and you can decide which one makes the most sense to you, whether it’s working with me or not. I usually have different ways you can sell your property.

And if you’ve got somebody who’s selling for you, or somebody who’s asking these questions for you, then they can act as a third party endorsement and they can say, and I’ve got this in the script, you know, hey, you know, this is my boss, he’s a nice guy, he isn’t pushy, and so if you like his offer, great, you know, we can work together, and if not, he’ll thank you for your time and there’ll be no hard feelings. Does that sound okay? And then when would be a good time for him to call? And there’s a place for you to schedule a call and have it placed into the calendar so that it’ll remind you when it’s time to do that.

Now, you might want to also try to close it right then and there. If they’re willing to do the lease option, then great. Then you can have them, you’re going to send over the lease option memo and have them sign that. One of the things that beginners have problems with a lot when they get somebody to say yes, you know, I told you don’t take no for an answer five time. Well, don’t take yes for an answer either. Because sometimes yes is simply a polite way of getting you off the phone. Make sure yes really means yes. So continue to ask these questions so that when you say, when I send this over to you are going to be able to get it back to me this afternoon? And they say, well, you know, I want to show it to my wife, or show it to my attorney, I want to show it to whatever. You know that you’re not on board yet.

Well, what questions do you think that they might have? You know, and you take them through this process to help them do that. And in my bigger program I’ve got more information about how to handle objections, how to handle people in this process to help you get better at it.

There’s also information on this form to put in bedrooms, bath, square footage, all the stuff that you can gather from Zillow and you can fill this stuff in without having to ask them. And then you can type in additional comments as well, especially if you’ve got a telemarketer doing this work for you. And stuff to remind you as well. And then what you can do is click another button on here and it will email all this data that you just typed in to the account holder of your Automarketer account. So you can have it sent directly to the guy who’s going to be closing the deal. So if you’ve got a telemarketer who’s making these calls and asking these questions, and you find that that’s yes, is interested and has a property that’s viable, that fits within our guidelines, then we save the progress, we email that data just with the click of a button and it goes directly to you, the investor, the account holder of the Automarketer and then you can call these people back and close the deal. You’ll be the closer. Because that might take a little more skill than somebody who’s just asking questions. But if you have somebody who’s asking questions for you sometimes it makes it a little bit easier. So ultimately that’s where you’re going to go.

Now, I would strongly, strongly suggest that you do not hire somebody to make these calls for you and fill out these questionnaires at the beginning. I know that sounds like the easy way to do it, but if you don’t learn how to do it, if you don’t learn how to talk to these people you won’t be very good at closing. So, learn how to talk to these people, learn how to chat with them, learn how to ask them questions, learn how to analyze their situation. And then once you learn how to analyze their situation then you’re going to start looking at their options. And that’s what I’m going to talk about next.

Okay, I don’t have a ton of time here so I’m going to try to cover selling options pretty quickly. On the lead page in the Automarketer there’s another button that’s called Selling Options. And if you pull that Selling Options list up there it shows you the different options that they might have depending on the way you’re going to do this. And the only way you’re really going to understand this is if you learn the other zero down structures. But at least it’ll give you a pretty good idea of what we’re trying to accomplish. What we’re trying to do is, we’re questioning the seller, we’re trying to figure out what their issues are, what they’re trying to accomplish. We’re going to diagnose their problem. We’re going to act like a doctor. We’re going to diagnose their problem and then we’re going to show them what their options are.

Let’s say you go to the doctor and say, doctor, my stomach hurts. He goes in, he starts asking questions, he does a bunch of tests, he finds out you may have stomach cancer. And so he says you’ve got a few options here. You can do chemotherapy, you can do radiation, you can do surgery, and I’m not a doctor so I don’t have any idea what I’m talking about here, but, he gives you options about what you can do. And you say, doctor, I don’t want to do any of those things. He says, I understand that, but the other option is that you die.

And essentially what we’re doing here is we’re showing them the best option, even though they don’t like any of the options we give them, we’re going to show them what they’re options are and let them make the choice about how to do this. So, the options that they’ve got is, they can continue to sell it for sale by owner, and if you look at this document there’s, that I’ve got in the Automarketer, it actually breaks down what it means to sell for say by owner, eighty-five percent of for sale by owners don’t sell. There’s still a possibility it’ll work, as a seller you have to decide how long you’ll continue to try this. Do you want to wait one month, two months, six months or more?

And then there’s a few paragraphs on the pros of doing it this way. What the benefits are of selling it for sale by owner. Then there’s another couple of paragraphs on the cons of it, how to do that. And you can just sit here and read this stuff to them. You don’t even have to know it. You can just read it to them. Eventually it’ll come off the tip of your tongue but in the meantime you’ve got a cheat sheet to help you through this process. And then after that there’s an analysis of the pros and the cons and what makes the most sense and where they’re probably going to end up on this one and then so that’s option one.

The next option you have is you can list this property for sale with a real estate agent. And you can click on this little button and it’ll open up the same thing for this. You know, it’ll show you the cost of working with a realtor and it’ll show you what it takes to get it sold and it’ll show you the benefits of doing it, you know, and there’s a whole paragraph on benefits, long paragraph. There’s another couple of paragraphs on the negative aspects of working with a realtor. There’s an analysis of why it might make sense and why it might not.

There are reasons that you’d use a realtor. There are some things that make sense for them if they want to use a realtor and if they find that, then that’s okay. What you’re here to do is help them find the best solution. You’re not here to twist their arm. You’re here to find the best solution for what they’re trying to accomplish and see if you can help them through that process and make the right decision. If you do that, you’re transparent about your motives for this process, say, yeah, I’m an investor. I want to make money. The only reason I’m doing this is to make money. But, I also know that I make the most money if I help more people. So if I solve the problem for you, whether it’s doing it in a way that makes me money or not, I still find that to be beneficial. And it usually leads me to other deals. So, when you’re talking to these sellers, they can feel like, hey, you’re there, you’re on their side, you’re not trying to twist their arm, you’re not trying to cheat some old lady out of the equity in her house by hammering her down on the price, which I see so many investors do because they’re doing these wholesaling deals and they’re doing deals where they have to get properties dramatically under market value. And it’s just not fun. It’s not a very fun way to do business.

The other option they’ve got is sell it on a fire sale price. Because you can sell it for sale by owner if you got at fire sale prices. You know, there are two ways that you can sell properties on for sale by owner. One is, you drop the price to a price that’s low enough where somebody buys it typically 20%, 30%, 40%, 50% below market value. The other way, or you’re in an extremely hot market, and there are a few of those out there. And if you’re in that kind of market, it still makes sense to do it because you can actually make more money by selling it on a lease option and I’m not going to have time to get into that today, but you can show them how to actually make money, more money, doing it lease option then selling it for cash, even for sale by owner cash.

So one way is by selling it under market value. The other is by selling in on terms which is how we do it, by selling it on a lease option. And that’s why we’re able to accomplish it with for sale by owner. But fire sale prices is one way to do it and again, pros, cons, analysis, it’s all in this system here.

You can give it back to the bank as a short sale foreclosure and this section explains to them that a short sale is the same as foreclosure. It’s going to affect your credit the same way. The only difference is they’re not going to come after you for a deficiency judgment which they don’t do anyway, so it’s probably not going to be an issue. I don’t know anybody that’s ever been hit by a deficiency judgment. That’s just their threat. So, short sale is another way they can do it. But if they’re going to do that, then you could probably do the fire sale price as well. Unless you don’t have any equity. But if you’re tired of the property and just want to give it back you can do that, but I can save your credit if you do the lease option deal. I can save you from, you know, three years of negative credit, well, it’s a lot longer than that. Three years before you get a mortgage again by having a foreclosure. And it’s going to take a year probably to go through that foreclosure.

And then you’ve got some other options that we could give them. We can buy it, and this is if we choose and if you understand the other zero down structures. So, subject to is one way we could do it and there’s an explanation of how to do that. You may not want to do that if this particular property doesn’t fit subject to for what you want. You’re not going to make that offer if that’s the case. The other is land contract or contract for deed and we can either have it, we can buy it that way and these are types of deals that we do when we put them into our portfolio, or land contract, we can assign it to somebody else. We can assign it to an investor, we can assign it to an end user, if the numbers make sense. Or, we can do it as a lease option, which often is the way that makes the most sense to the most leads. And all these options here will help as you’re going through this process to be able to explain it to them so that they understand what all their options are and when they understand what their options are, the likelihood that they’re going to pick the best option is much higher. You have an educated seller and they’re going to be, they’re going to trust you more, they’re going to work with you more and you’re going to be able to walk them through this process in a way that builds faith in you and your ability to solve the problem for them. And they will be appreciative. They’ll be thankful to you.

And even if they don’t work with you they may bring you some other business. Or they may work with you on another property. I’ve run into this so many times when we’re working with investors and the property that they responded to us for wasn’t going to work for them with what we were trying to do. But, they had, you know, three other properties or twenty-three other properties and they worked with us on those. So, always take these people through the process, do the best you can to help them, treat them like family. Treat them like it’s your mom you’re talking to, and you’re trying to solve your mom’s problem. And that transparency, that desire to help will make all the difference.

It’ll also help make you sleep better at night. And it’ll help you build a long term, sustainable, ethical business that you can be proud of and you pass on to your kids if they want it, or other people that you love.

Now, I also need to say don’t for one minute think that you can’t do this program, you can’t do the For Rent Method, if you can’t afford the Automarketer of my mentor program. Don’t use that as an excuse. We were doing this program for years before I automated the process with the Automarketer. It just takes more time and effort. It means that you’ll be making cold calls, and Zillow and craigslist rather than having a system that’ll find those sellers, send them an offer on their property, and get a response. It’s a lot easier to call someone back than it is to call them cold. You’ll still have the same conversion rate, but if you have the system doing the contacts for you all you have to deal with is the low hanging fruit. The ones that have already been converted to saying maybe.
You’re job’s going to be substantially easier if you’re calling people back.

Okay. Let’s talk about finding buyers. Once you’ve got the property, once you’ve got the memo signed, you need to start selling that property. When we started this program, and for most people, it’s always more difficult at the beginning to get your sellers. To get your memos signed. Once you learn how to do that, once you go through this process and make those calls that I told you about and you learn how to do it, your conversion rate’s going to go way up. So, suddenly finding your sellers is going to be way, way easier and it’s going to make finding buyers look more difficult. Finding buyers is actually easier to learn and it’s easier to do, but it typically takes, you know, between two and four weeks to do it. If it’s not sold in four weeks then it’s because of your monthly payment, which is what we talked about before.

So, let’s talk about how to find these buyers. The most important part of selling is that you bought the properties right. This is true with all real estate investing. And with the For Rent Method, that means that the monthly payment is aligned with market rent. If it’s high, you will wait a long time before they are sold. And they probably will never sell. If you’re over market rent, they probably won’t sell because that’s what your buyers are looking at. People looking at between eighteen and twenty-three houses before they buy one and they’re going to pick the best deal they can get for the money. So if you’re not competing with the other properties that are on the market, then you’re not going to sell it.

All right. Now, when you get a property, by the way, you have to think about how you’re going to price it. So let’s say I’ve got a property, it’s $150,000, just nice round number. $150,000 is what the seller wants from the property. So I raise the price to $160,000 hoping that I’m going to get maybe five grand as a cash down payment for this property. So I’ve added $10,000 to this and that leaves me a little bit of negotiation room. So when people, I’m going to advertise this property for $160,000 and ask for $10,000 down and if they only have $5,000 down that’s okay, I’ll take the five, maybe I’ll ask for a $5,000 promissory note, have them make payments over time. That’s stuff that we can talk about in a different program on how to optimize your down payments and your income on these things. But, basically, that’s how it’s going to be. And then once they pay that down payment, they’ll still ow that $150,000 to the seller if they decide to exercise the option within that three-year period. The likelihood that they’re going to exercise that option is less than thirty percent, and I think it’s fair to tell your seller that it’s fairly unlikely that they’ll exercise the option, but the time that they have the property they’re going to treat it like they’re own. Remember, you don’t wash a rental car.

You take care of the things that you own but not necessarily the things that you rent. And that’s going to be the same with a rental house. They’re going to be more likely to take care of a property that they perceive as their own. So, that’s why these rent to own buyers are great to have. Plus you have a three-year lease instead of a one-year lease. So if you’re keeping these properties, which you should be, for the long term, they’re going to, you know, make you money a lot quicker this way.

So once you have the lease option memo signed, you need to put a sign in the yard. A sign in the yard is really important. And that sign’s going to say Rent to Buy – No Qualifying – Move in Today, and your phone number. Preferably at the beginning. Put your cellphone number in there. You want those to come to you. Eventually you’re going to have somebody else who’s going to be your buyer finder and all those leads are going to go to them. It’s actually going to go through your system to them because you want them to come in. You want to see how many leads are coming in and you want to make sure to monitor that person, make sure they’re making the calls. Which you can all do in the Automarketer, by the way. There’s a phone system in the Automarketer that allows you to create new phone numbers.

So let’s say I’m working remotely. I’m in Indiana and I’m working in Los Angeles. I can get a 213 Area Code which is a Los Angeles Area Code, and I can call through the Automarketer from that number so that when it comes up on their caller ID they’re going to see the 213 Area Code so they’re going to, it’s going to make me appear to be local. I can also put a local phone number on the sign in the front yard so that they can call and leave a message. And by the way, when they leave that message, it records that call and then it sends you an audio file of that call. It also sends you a transcription of the message that they left so all you have to do is get an email on your smartphone and say, hey, this is what this person wanted. You don’t even have to listen to the message. You can usually read it. And the transcriptions are not perfect, by the way. But you get the gist of what they’re saying and then you can call them back and talk to them right then and there and you’ll have access to that. So, that’s something that you want.

And if you have people that are calling for you through the Automarketer, it’ll actually keep track of their calls and record them so you can monitor what they’re doing. You can also see how long they were on the phone. We pay anybody who’s working on the phone, we pay them by the amount of time that they’re on the phone. So if I have a telemarketer I pay them 150% of the time they’re actually on the call. So if they’ve talked for an hour on the phone and I’ve got, there’s a recording there for that, that shows the duration on the Automarketer, I pay them for an hour and a half of their time. And that helps keep everybody honest. I used to hire telemarketers and they charged me for ten hours and they’d make, you know, ten calls and I’d wonder who are you talking to for ten hours during this time? And you know, I had no way to monitor them. So, I added this to the system so that I could monitor my telemarketers. And it’ll work for you, too.

Next you’re going to run classified ads on craigslist and it’s going to have Rent to Buy – No Qualifying somewhere in the headline. The headline is the ad for the ad. That’s what you want to use to get people to click on that ad so that they see the property. And then put as much detail about the property as you can. The only thing you’re not going to put in this ad other than this is, you know, rent to buy, and what the monthly payment is, and the purchase price is, you’re not going to put the down payment amount. You’re going to put down payment required, but you’re not going to put the amount. And then when they call you’re going to ask them how much have you got for a down payment? And you’re going to try to negotiate the most that you possibly can. And that’s a whole different audio, talking about negotiating down payments and how to make that work and how to optimize the amount of money you’ve got for a down payment.

I’m sorry I’m talking so fast. I’m trying to get a lot of information in in a short period of time.

Also run an ad on Zillow for the house. You can get access to that. And if you go to Postlets.com, it was purchased by Zillow and it aggregates to, I believe, Trulia and Zillow and maybe some other for say by owner websites. You can do it all at the same time. We also have good success with Facebook groups. Join, you know, a Facebook garage sale group in your area. Look for groups that have several thousand people. And when you sign up for that group, ask the moderator if they’ll allow you to post your home for sale with a lease option. And most of them will allow it. Some of them have specific rules that don’t allow it and you don’t want to get banned from them, but they’re not going to be useful to you anyway. So post that ad and we’ve had really good success getting people to respond to those types of ads as well. So that’s something we’re still testing.

We’re also testing the Automarketer where we’re contacting people that have, on craigslist they’ve posted an ad seeking a home to buy, or a home to rent. And we send out a text message to those people saying we’ve got a property, you know, would you be interested and they respond and we can send them a link to our listing site, our clone sites. We put these properties up on a listing site and they can go look at that property on the clone site.

Also, build your buyer list as you go. Keep every phone number and email of every buyer you talk to in each area you work. It won’t take too many deals before you have hundreds of buyers on your list. There are a lot of people who are interested in buying a home rent to buy. You know, seventy-five percent of the United States population can’t qualify for a mortgage. Just imagine how much these people are going to love you and appreciate your help when you get them into their own home after they’ve been turned down over and over again by mortgage companies and lenders. They’re going to literally hug you and cry. One of my students called it the crying quotient – the ratio of people who buy rent to own versus the number of, you know, tears that you get at closing and hugs that you get at closing.

All right. Once you build this list in the Automarketer, and you can build in a CSV file if you want, and then you can do email blasts out to it or text blasts out, use another tool if you don’t have the Automarketer. It’s, but once they’re in the Automarketer it’s really simple to do a text, voice blast, or email blast to that group. And you can send out an email with pictures, you know, html email with pictures and everything in it, or you can just send them a text message with a link to your clone site with pictures of the property or you can send a voice blast and tell them hey, I’ve got this new property lease to own. Would you go take a look at it. It might be right for you. And you can send that blast out. And when you have five hundred or so buyers on your list, and it doesn’t take that long to build five hundred buyers, you know, I find that after you have five hundred or a thousand buyers on your list you’re going to start selling about twenty percent of the deals, lease option memo deals that come in, to this list. Sometimes it happens in hours. I’ve seen it happen in minutes.

I had one student that went over, he knew he had buyer for a property and went over and got the lease option memo signed and he told the guy come over in twenty minutes. He got it signed, the guy came in twenty minutes. He sold it. It was a done deal, he made $5,000 and the deal was over in minutes. So if you have a list like this, though sometimes in hours, rather than days, you can get it sold. If you’re doing advertising, typically two, three, four weeks it’s happening. If you use the sequence of educational emails that are in the Automarketer for these leads, and you have their email addresses, it’ll send out a sequence of emails over time to them, usually over a few month period, and it educates them, it helps build trust with them, it sells them on the idea of using the Automarketer and the idea of working with you. It builds your credibility. So it’s a really wonderful thing to have that and have these people in this system because that buyer list will make you a ton of money and twenty percent to your buyer’s list – that’s a phenomenal number for that to happen so quickly. You just need to build this list and nurture it.

So, you’ve got the memo signed, you’ve got the ads running. Next you want to put a lockbox on the door. A lockbox is a thing that you can get a Lowe’s. You can them online. At Lowe’s you can get them for twenty-five bucks. Online you can get them for ten bucks if you look for them. There’s some cheap places online to get them. And that lockbox just hangs on the doorknob and it has a combination lock that if you open it there’s a little place to put the key to the front door. So you put the key in the front door and you put in the combination box and you hang it on the front door, so anybody that wants to see the property, you can show it to them remotely if it’s a vacant property. If it’s not vacant then you need to hire boots on the ground or you’ve got to go over yourself and let them into the property. But what we typically do is we say call us from the front porch and we’ll give you the lockbox code to the door.

And we ask them to take a picture of their driver’s license so we have, we know it’s a real person that’s going in there. We give them the lockbox code. I’ve never had a property damaged by doing it this way before. Will that happen in the future? Probably. You know, that’s what the seller has insurance for. Hopefully that won’t – it’s rare. It’s rare enough where it’s never happened to me or anybody that I know. So if it has happened to you I’d like to hear about it, actually.

Anyway, you get their driver’s license, you let them go into the property and then you ask them please call me as soon as you’re done and tell me what you think of the property? And have them call you back and say I want to make sure that you lock the door. And that will get them to call you because they don’t want to be responsible for leaving the door unlocked. So, that’s an important process and that’s how you show those properties.

If you can, put signs up around the neighborhood. We use these bandit signs. They’ve always worked. They’re a pain in the butt to deal with. A lot of areas have regulations against them. We still put them up anyway. That’s why they’re called bandit signs. But they get taken down and some communities actually have people that are paid to go around and take these signs down. So it’s costly and it’s not that effective and you can probably sell it through craigslist or through Zillow or through your sign in the yard without putting up signs around the neighborhood, but, signs around the neighborhood will help you build your buyer’s list and that will make it easier for you to move forward with that. If you put your signs around the neighborhood, put your voicemail number on that, not your cellphone, because you don’t want to take all those calls. You only want to take calls about people that are specifically calling about that specific property.

You can get as many phone numbers as you want in the Automarketer, by the way, for $3.00 a month each. You have to pay for the minutes, but it’s 2¢ a minute so it’s not expensive and that way you can have Area Codes that are local to the house where you’re selling it. This makes it possible for you to do this business from anywhere in the world where you can get an internet connection. You can also get a free number outside the Automarketer if you go through Google Voice. They’ll only let you have one, but it’s still, it’s free, so that’s kind of cool.

When you get calls, answer your phone when they call on your yard sign or your online ads, or you get, you know, get those people inside that property. Hopefully you put a lockbox on the door so you can show people the property without having to be there. It’s a vacant house. No one else’s sign should be in the yard. So if the seller is renting their property ask them to take their sign out or just, you know, you’ve got permission to put you sign in the yard, go put your sign in the yard, pull theirs up, take it around to the side of the house and lean it up against the house. You don’t want to compete with them. So, if they object to that, then talk to them about maybe giving you a month to get this done and see if that can happen.

Now. What if it doesn’t sell? If it’s not sold in thirty days and you do these things, this is something I’ve been talking about all through this audio, it means your monthly price is the problem. You need to lower the monthly price, the rent. So that’s going to be the issue ninety-nine times out of a hundred. I have so many people that try to get an extra hundred bucks or extra fifty bucks – don’t do it. You’ll just be wasting your time.

If the seller can clean it up, that would also be good. If it’s messy and needs to be cleaned up. You can also sell these things as fixer uppers. That’s a different conversation, I’m not going to get into that right now. If it’s warm out, keep the house cool. Don’t let it get hot inside. Vice versa, if it’s cold out make sure it’s warm inside. Make it cozy. Don’t let them save a few bucks on utilities and have a hot house. It’ll cause it to smell and be uncomfortable when the buyers are there and you want to make sure that they feel like it’s home. That’s why you don’t want the seller there, by the way. You don’t want them there looking over their shoulder. You want that buyer to be able to walk through the house, open the doors, open the closets, you know, look everywhere. I’ve walked into properties where people, the family was sitting on the couch watching TV. It’s really uncomfortable. And it doesn’t make the buyer feel like hey, this is my home. It makes them feel like, hey, I’m an intruder, intruding on their space together as a family.

Remember, price, monthly payment, is vital. And I’m talking about monthly payment here, not purchase price. If you do the signs and craigslist ad and get three to four responses a week, you’re going to sell it in a month if it’s priced properly. The biggest mistake new folks make is the pricing, and showing it. Make sure you listen to this audio a couple of times so you can really understand what I’m talking about. Give yourself time to get it sold. Make sure it’s not above market rent. What else? Check your craigslist ad to make sure it didn’t ghost when you posted it.

A lot of times it’ll say hey, your ad’s posted and it’ll send you a link and you click on the link and there’s the ad. But if you go in through craigslist and you go in through the main portal of craigslist and you try to track down your ad, it’s not there. That’s because it got flagged or ghosted. And that happens commonly on craigslist. So make sure that you take care of that. There’s some ways to deal with craigslist and ghosting and those types of issues that I’m not going to get into today because I’m running out of time.

All right. Closing the deal. Let’s talk about that. When you do that you’re going to have, the other docs, the resident documents and the document addendum, the assignment form, those are also, if you get my $3.00 book on Amazon you can get those. Of course they’re in my other programs as well. And you have them fill out that form. You have them fill out a tenant application and make sure they’ve got enough money to be able to afford this. You want to have about three times the amount of income, gross income, as the rent is going to be. And then they’re going to also, so they’re going to give you the first month rent and they’re going to give you the down payment. So, if you’re getting $10,000 as a down payment they’re going to wire those funds to you and they’re going to wire you the first month rent. They might give it to you as a cashier’s check. You can do that, too. Just make sure you cash that cashier’s check before they move in because there’s a lot of fraud with cashier’s checks. But if they wire it to you, that’s the easiest way and then you can distribute the other funds. You’re going to have to get your seller to sign the lease option documents and finish it up that way.

All right. Those are the basics of, actually quite a bit more than the basics, of doing the For Rent Method. You can use these techniques and you can start making money right away. Start making these calls. Start with this process. Start doing this stuff. Use the Automarketer if you have the funds to do it. It’ll help you get started. If you have the ability to get into my mentor program, do that, too. I know it’s as expensive as going to college for a semester. Maybe not quite that expensive. I’ve got two kids in college right now, so I know that that’s more expensive per semester to send kids to even a state school. But it’s probably worth it to have my help through the process. On the other hand, you may not have the money to do that. Don’t let your dream die because you can’t afford to get into my mentor program. And don’t ask me to do it on spec, either. I don’t do that. It’s not a good business model for me. You know, I’m doing this to make money, too. I love teaching. I love seeing people succeed. But I wouldn’t be doing it if I wasn’t making money. So, that’s an important part of this process to me as well.

I wish I had time to talk about, you know, working in multiple areas, you know, expanding your base, building a more systematic business using the Automarketer to build this system because, and listen to some of the other audios in the Automarketer site because I talk a lot about systems there because that’s what the Automarketer does and it shows you the different tools that you can use to do it and even if you can’t get the Automarketer, you can use the same concepts to make that process work, to systematize your business. You want to turn it into a franchise. You know, if you look at, 80% of all businesses fail. But 80% of all franchises that start succeed. And the reason they succeed is because they’ve created a proven business system and that’s what I’ve done with the Automarketer. That’s what I’ve done with my mentor program to be able to help people actually build a, it’s not a franchise, but it’s a franchise-style business.

I also like to be able to teach you about hiring a team, about how to outsource the work that you can’t automate because you can automate 90% of the work, but that other 10% you can probably outsource 90% of the work that you can’t automate. And then that leaves you with just 1% as the work that you have to do, which is basically overseeing the process and making sure that it’s running.

I also have this incredible phone system with the Automarketer that allows you to have multiple team members with multiple phone numbers in multiple areas and you can divide these phone numbers up to do different functions. Some working with buyers, some working with sellers, some working with admin people, some working with investors. You can break that all up so there’s a ton of different things that you can do with this process.

I sped through all this stuff. I hope that it makes sense. I would encourage you to go back and listen to this audio a second time, or a third or a fourth or a fifth time. The more you get it into you head, the more you’re going to have an understanding of where to go. And you’re also going to, it’s going to raise questions that you can probably seek out elsewhere on my blog and, because there’s a ton, there’s almost 600 free videos on my blog right now with lots of answered questions. You can type in in the search form looking for different questions, you can probably find a lot of the answers that you don’t have here that’ll help you go through this process.

Good luck to you. Don ‘t give up. Remember, calling sellers is the most important thing you should do if you only have a limited amount of time. When I have a mentor student who’s working a full time job and has promised me that he’d put in the eight or ten hours a week, calling sellers, that’s the guy who’s going to make – or the girl – that’s going to make money. And that’s what it’s going to take to get this done.

I hope that helps and I wish you the best. And I hope that we get to work together personally in the future. Take care now.