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Table Of Contents

Nine Steps To Improve Your Closing Ratio

Getting Out Of Your Comfort Zone

The Power Within

Selling Houses Fast Part 1

Selling Houses Fast Part 2

It Takes Money To Make Money

When To Look A Gift Horse In The Mouth

Flipping Is Illegal

Magic Words That Make Millions

Nine Steps to Improve Your
Closing Ratio
by Ron LeGrand

You’ve pre-qualified your prospects. They look good

and you’ve made an appointment with your lender for
the formal loan application. You’re feeling good about
yourself now because, as far as you’re concerned, this
house is sold...or is it?
Don’t spend your money before you get it!

Would you be shocked to learn that a full 25 to 40% of

the buyers you put before a lender will not make it to the
closing table? That’s right. Over one fourth won’t close
and you’ll have to start all over. Most of the time there
are things you can do to raise your odds of success.

That’s what we’ll cover here. However, sometimes there

are things that crop up that cannot be controlled no
matter how good you are. As I write this, I’m shedding
tears on my paper, because of one of those
uncontrollable events that happened to me.

I bought a house for $12,000 through a Realtor¨. I then

spent $7,000 fixing it and put it on the market for
$49,900. A buyer came along who agreed to buy it if I’d
add a garage. I had already pre-qualified this buyer so I
said OK, I’ll add a garage after the loan is approved and
raise the price to $51,900. The buyer agreed so we got
the loan working. About three weeks later, she was
approved. So I added the garage for $3,000 and installed
the carpet and A/C, which I planned to do anyway.

Well, to make a long story short, we were two days from

closing and she decided she didn’t want my house
anymore. She had found one she liked better. Now, this
was after we spent the time and effort to get her
approved and after I built her a $3,000 garage. There just
wasn’t any way I could convince her to close on my
house instead of the other one she liked better.

Now, I can just hear you say...but you had her deposit
and a contract. That’s true. I did have a $500 deposit and
a signed contract. So what! Obviously, I kept the
deposit. Naturally I was upset. But none of my feelings
got me any closer to that fat profit check I was going to
collect in two days. So the moral of this sob story
is...don’t spend it until you get it. There just might be a
case here for another strong message too. When you
collect a binder from a buyer...get every dime you can.

Looking back on my dilemma, I should have collected

another thousand or two before I built the garage. If I
had, the deal would be closed by now instead of me
starting over. I knew better, I just didn’t do it. Man, this
education is expensive. You’d think there would be a
time in the life of a guru that he wouldn’t have to keep
going to these seminars, wouldn’t you? All right, let’s
get on to making your closing easier. I’ll give you a
step-by-step process to get you from loan application to
closing and beyond.

Step 1. Make Sure The Lender Orders Appraisal

And Credit Report Immediately

You should tell your buyer to bring in the amount

needed the day the loan application is taken (usually
$300 - $400 to cover the credit report and appraisal).
Insist to the lender that both be ordered immediately.
Many loan processors tend to wait until the documents
are all in before they order the appraisal. Don’t allow
this to happen. If you do, it will take an additional two
weeks to 30 days to get your buyer closed because of the
time needed to get the appraisal done.

Another reason to order now is the appraisal can be used

for your next buyer if this one doesn’t make it. Let this
buyer pay for it. FHA and VA and most conventional
appraisals are good for six months. Make sure your
contract is written so you are not required to reimburse
any expenses to a buyer who does not qualify. If they
can’t qualify, you’ll have nothing to refund except the
binder deposit.

Step 2. Call The Loan Processor Within 3 Days To

Make Sure The Appraisal Was Ordered

That’s right, you actually have to check to see if they

did. Remember this...every day that goes by decreases
your chances of closing. It’s your job to take care of the
details. No one else cares whether you get paid or not.
Let me tell you another tear-jerker about the guy who
was ready to close on a $60,000 purchase from me.
Closing day was set and everything was in order. And as
lenders frequently do, mine called the business where
the buyer worked the day before closing and found out
he had been laid off that morning. Needless to say, that
was the end of that closing.

My son-in-law, Bobby, was a partner in that deal. He

had already spent his share of the $25,000 profit. When
he found out it wasn’t going to close, I had to give him a
Valium so he wouldn’t go into cardiac arrest. But soon
he got over the agony of defeat, found another buyer and
finally closed. By the way, we used the previous
appraisal. The point of this story is if we had shaved two
days off of the process, it would have closed the first
time.

And if we all had a crystal ball that would foretell the

future, we wouldn’t be allowed the fun of making
mistakes. And so on, and so on. We do the best we can
and try to eliminate as many possibilities of error as we
can, but regardless of how good we get...things happen.

Step 3. 7-Day Check-Up

Call your processor in about 7 days to see if these things

are in order:

• Credit Report. It should be finished by now. Are

there any problems?
• Verification of Deposit. Is the money in the
buyer’s account to close?
• Appraisal. You should have been called to meet
the appraiser by now. If you haven’t, find out
why.
• Other Documents. What else is needed for loan
submission? What can you do to help?

Step 4. 14-Day Check-Up

The loan should be ready for submission by now. If it’s

not, find out why and take charge of getting what’s
missing or correcting what’s wrong. This will save days
or weeks in some cases.

Step 5. Loan Approved

The long awaited day has arrived. Your buyer has been
approved. Now it’s time for you to take control and get
this thing closed fast. There are five things that you must
get done before you can even set a closing date. All five
should not take more than 72 hours. If you don’t
accomplish these, it could really be the PITTS!

P - Payoff Letter for underlying loans, especially

if they’re from private individuals. Now’s your
time to negotiate discounts.

I - Insurance must be purchased by the buyer and

pre-paid for one year. The lender must be named
as insured.

T - Title Insurance must be ordered. I strongly

suggest you order it from the same company who
issued the policy to you when you purchased.
This will eliminate any problems the first
company may have missed that might crop up
when two different companies are involved.

T - Termite Report should be ordered by you. It

must be free of any live infestation and damage.
If it’s not, fix it and get a new report. Then, and
only then, send it to the lender.

S - Survey has to be completed and in the hands

of the lender or closing agent before closing will
be scheduled. You are in control. Don’t let
anyone talk you out of getting these items done.
Remember, no one cares as much as you do. If
you let others take charge of these five items,
you’re headed for one of those seminars.

Step 6. Setting The Close Date

When these items are completed, along with any other

contingencies, the lender wants cleared up, you can now
simply pick up the phone, call the closing agent and set a
closing date and time. It probably would be best at this
point to call the buyer as well. Closings go better when
buyers are present.

Step 7. The Day Before Closing

Call the closing agent and get the exact amount the
buyer will need to bring. Usually a cashier’s check is
required and you don’t want this to be a last minute
thing that was missed. Call your buyer with the amount
and confirm they have the insurance needed to close.
Step 8. Closing Day

If your closing is scheduled in the late afternoon, which

is quite common to accommodate your buyer’s work
schedule, this could be one of the longest days of your
life. Especially if you’re a new investor or you really
need the money bad. Just go take a walk and relax. None
of these 25 things you’re thinking about will go wrong.
Forget the horror stories I just shared with you. They
only happen to gurus, not you. The only thing left for
you to do is call the closing agent and confirm they have
everything they need. Put the keys in your briefcase so
you don’t forget them while you’re having your anxiety
attack.

Show up at closing, smile a lot, sign where you are told

and pick up your check. Once you get that big fat check
in your hands, your heart rate will slow and you will be
thinking to yourself...that really wasn’t so bad after all.
Congratulate your buyer on their wise decision, hand
them the keys and thank the closing agent and wait until
you get at least 100 yards away before you start
screaming...I did it!...I did it!

Now, pick up the phone, call your spouse and tell

him/her you’re taking him/her to the finest restaurant in
town to celebrate your success. Well, congratulations,
you can now call yourself a true blue...Real Estate
Entrepreneur. I hereby give you permission to wear that
title. But hold on now. We’re not done yet. You have
one more step to go.

Step 9. Follow Up

Here’s the step most so-called experts ignore. You’ve

made the sale. You’ve gotten your check. Now let’s
make sure you’ve got a satisfied customer. Within three
days after the closing, send your new buyer a
congratulatory letter. In the letter you should ask them to
call you with any problems that should occur with the
house. Make sure they know how important they are to
you and how you are concerned that their move went
OK.

Why would you want to do this, you say? It’s simple.

You will develop a good image, feel better about your
business, and make more money in the process. If you
treat your buyers right, guess who they will tell about it.
Everyone they know. You’ll soon discover that 25%-
50% of your new buyers will come from referrals from
your old buyers. People just can’t wait to tell the world
about good service!

If you really want to get them talking, add this sentence

as a P.S. in the letter you send them: P.S. If you refer
someone to me who buys one of my houses, I’ll make
your next house payment for you!

Well, I hope you enjoyed our journey to the closing

table. This information should make that journey a more
pleasant one if you use it, and I hope you do. It’s better
to suffer the pain of victory than the agony of regret.

Table Of Contents
Table Of Contents
Get Out of Your Comfort
Zone and Make Some REAL
Money by Ron LeGrand
Everyone has a comfort level in which they live and
work. That level is determined by several factors and can
be changed with practice and time. We have a choice of
what we do each day, how we spend our time and how
much money we make.

This may come as a surprise to some people who are

convinced their income is someone else's choice, not
theirs. Nothing could be further from the truth. Your
income is the result of one thing and one thing only....

What You Choose To Do With Your Time.

"But Ron, you don't understand. I have a job. I'm not in

control of my salary, my boss is. He tells me when to
come to work and how much I can make." I guess you're
right. You're not in control and maybe you never will be.

At least, not without a major attitude change. Listen, if

you're reading this article it means you know the
opportunities available to you as a real estate
entrepreneur. So if you're still employed, you've chosen
to do so. No one forced you. It's your decision and
therefore you have chosen to exchange dollars for time
which is a sure-fire recipe for being broke.

Does this mean I think everyone should immediately quit

their jobs and start doing real estate? Absolutely not. This
business is not for everyone. Being in any business for
yourself is also not for everyone. However, if you're
reading this, my guess is you're not in that group. You
want more out of life than a dull job and you want to see
some real money for a change. Am I right?

Maybe you aren't employed anymore and you're feeling

pretty smug because you're now on your own flying free.
No job! No boss! No traffic jams! No one giving you
orders! Well, congratulations! But before you get too full
of yourself maybe we'd better look a little closer. You
see, there is a down side. You have no job which means
no paycheck and no boss making decisions for you.
You're on your own to decide what you do every day and
worse.

No One To Blame When You Screw Up.

It's you against the world. You're on fire. You haven't

been this excited in a long time. No place to report in the
morning. You can do what you darn well please. You
see, my friend, that's what scares me. What will you do
with all this new-found freedom? How long will it be
before you fill your days up with activities that
accomplish nothing except filling your days?

If you're not careful your poor time management habits

and low expectations will lead you right back to doing no
more than just making a living. You'll replace your old
job with a new one and simply change bosses. A new
dufus will replace the old one.

Have I hurt your feelings? Tough! Get over it.

Remember, I'm on your side. We're in this together and
it's my job to help make you better than all the employed
or unemployed drones just drifting out there waiting to
die. Just because you don't have a job anymore doesn't
mean you're going to be rich. Rich people don't waste all
day thinking like a job slave and spend their time killing
time. The rich focus on what produces the most revenue
with the least work.

I'm No Different Than You...

If it will make you feel any better, I'm no different than

you. I wasted a lot of years killing time. That's why I'm
so adamant that you don't do the same. So, let's talk about
getting off to a good start. If you're way past a start, let's
discuss amending your ways so you can begin making
more money.

Incidentally, that has nothing to do with having more

time. It involves using that time the best way you can.
Whether you're part time or full time you, have a choice
of the deals you participate in. You can either make a few
thousand dollars because you feel comfortable with the
easy stuff, or you can make a hundred times more on
the same deal using no more money or extra time to
do so. Again, you get to choose. No one else. Let me
explain.

Get Out of Your Comfort Zone!

For years I dealt with low-priced junkers, usually in low
income areas. I'd either wholesale for $2,000 to $6,000 or
retail for $15,000 to $20,000. It was all I knew, my
comfort zone. The thought of buying anything worth over
$60,000 petrified me. I wouldn't even let myself think
about it. I was happy making two or three times over
what I used to make from my job so why bother doing
anything better and upset the apple cart? Besides, I had
bought and sold hundreds of houses. I had to be smarter
than anyone else I knew.

The more money I made the more I allowed myself to

think bigger. Gradually I learned there was more to the
business than cheap junkers and small dollars. I began to
learn the "pretty house" business. My threshold kept
rising higher and higher as I learned that it's just as easy
to make more as it is to make less.

Now, you may be thinking it was easier to make more

because I had more to work with. That's the same stupid
thinking which held me back all those years. Here's some
hot news right off the wire:

If you can't make money without money,

You can't make money with money!

Recently I decided to work some deals with students in

all parts of the country. When I see them at events I make
them the offer to call me to discuss those larger house
deals they're presently throwing away, because the
numbers scare them. I tell them if the deal was doable, I
might agree to be their partner.

Consequently, some called me with deals. At this time, I

have about ten or fifteen deals in various stages of
production. Let me use a couple of deals to prove my
point. In many cases, including yours my friend, it's not
the lack of money holding you back, it's the lack of
knowledge on how to structure the deals so you don't
need money!

Real Life Deals

In Atlanta we found a pre-foreclosure worth $300,000 in

a lovely area. The loan was $196,000 with $27,000 in
arrears. The second was $28,000 and delinquent. The first
had filed foreclosure and stopped because the owner told
them he had a plan to bring them current.
During this time, the owner called my student and finally
said he'd deed the house to him if he wished. The student
let the deal pass because the numbers were scary and the
exit strategy wasn't clear.

Then I got involved. We now own the house without a

dime out of pocket to the first mortgage and we haven't
made a payment yet. The second agreed to discount to
$4,000 from $28,000 so the total debt is about $200,000.
The house sold for $265,000 and will close in two weeks.
We let it go cheap instead of spending $15,000 on
repairs. We also feel by the time it closes the first will get
discounted $25,000 to $50,000.

The net profit will be between $65,000 and $115,000.

The total cash outlay was $4,000 because we chose to
pay off the second while they were willing to discount
$24,000 and before they learned the house was sold. That
was a good example of leveraging our brains instead of
our wallets. Incidentally, how many houses will you
wholesale to make $65,000 to $115,000? We only did
one.

It costs nothing to aim high. But wait! That's only one

little deal. I personally negotiated another student deal in
Orlando. The appraisal the seller gave us was one year
old at $910,000. He agreed to sell for what he owes at
$513,000. The house is in a gated community on 2.8
acres with a screened in pool and tennis court. It has
7,500 square feet of beautiful living space and looks even
nicer since the seller is leaving $25,000 worth of
furniture.

We're raising the money to buy from a private lender who

learned the business from me several years ago. This
same lender is available to anyone in his area. Nothing
special happened because I was involved. Nothing,
except the deal is now done instead of lost.

We did not need a dime of our own money or credit to do

this deal. It just took guts and a clear vision of the exit
strategy. More than anything, it took expanding out of
our comfort zone.

What's the next deal? I don't know but I bet it's better
than the last house you flipped. I'm sure it's better than
your last year's W-2 showed. But don't worry. I can't
expect something like this to come your way, can I? After
all, there's too much competition where you live and it
probably won't work there anyway. Surely there aren't
any sellers with more expensive houses that would even
consider selling for less than retail price.

Yes, I'm being sarcastic. At the same time, I hope I'm

making a point you soon won't forget: Do what everyone
else does and you can expect to get what they get, Do
what they fear, and they'll wish they had what you've got.

I just made that up, looks like a good overhead to me.

Seriously, don't you think it's time to get your head out of
the sand and begin to think much bigger? It's free. Figure
out what scares you and fix it. If it's lack of money, it can
and will be fixed with more knowledge.

The More You Learn, The More You Earn

Here's a brief re-cap of a few more deals presently in the

works with students. A $300,000 house in lovely shape
with a $145,000 mortgage that's $17,000 behind. The
seller has deeded it to us. We won't put up a dime. You
figure the profit.

A $191,000 home requiring $10,000 in repairs. We paid

$112,000 cash, borrowed from a private lender.

A $500,000 house on the ocean. Seller agreed to finance

for $435,000 at 6% with nothing down! We're trying to
raise the money for the down payment (chuckle,
chuckle)!

A house worth $180,000 with a balance of $135,000

that's current. Seller is deeding and will wait until we sell
it for her. She'll net $10,000 which was previously agreed
upon.

I think you get the picture.

Speaking of millionaires, how many of these kinds of

deals do you need per year to make a million bucks? Not
many. Good news! They're more plentiful and easier to
do than junkers. All you need to do is expand your
comfort zone just a little and increase your ability to
construct and present offers. You can make more or
continue to make less. It's your choice.

Ron LeGrand had to borrow money to attend his first

real estate seminar twenty years ago when he was
bankrupt and running a gas station. Today, he is
recognized as the nation’s leading authority on buying
and selling single-family homes for fast cash with no
credit, little or no personal investment or risk. Ron uses
his techniques to personally “Quick-Turn” over 1400
houses and continues to actively pursue real estate deals
to this day.

Author, trainer, lecturer, consultant and entrepreneur

extraordinaire, Ron has earned a reputation as the best
in his field. His workshops are routinely standing-room-
only and his Boot Camps continue to grow in popularity.
Ron’s secret is simple: his programs work -- as
evidenced by the thousands of successful real estate
entrepreneurs all across North America who call him by
the affectionate title, “The Guru”.
Stay updated Ron’s FREE online newsletter at
http//www.ronlegrand.com

Table Of Contents
Table Of Contents
The Power Within
by Ron LeGrand

I was sitting in the back of a Chicago cab discussing

business with Ray Rach. Upon overhearing our
conversation, John, the cab driver, interrupted and began
telling us his experiences with real estate.

It seems he had bought a house a few years ago and

resold it for about $100,000 in profit. He was so proud of
his accomplishment he took his new-found wealth and
opened a restaurant. After about one year in business he
not only lost all his money, but some other funds he had
borrowed from his family.

His story was a sad, but not uncommon one; the story of
a man who had tried and failed and quit for life, content
with a meager living at something difficult to fail at.

After hearing this, Ray asked him, "John, if you made a

hundred grand on one deal the first time, why didn't you
just keep doing that instead of opening a restaurant?"

John's reply was, "Well, we made the money on the

house sort of by accident. We really didn't know what we
were doing. We just bought a house at what we thought
was a good price, did a little work on it and two years
later someone offered us $100,000 more than we had in
it, so we sold."

Ray said, "So what made you buy a restaurant?" John

replied, "Oh, it's just something we always thought we
wanted to do." "Well John, after your restaurant venture
failed, why didn't you go out, buy another house and do it
again?"

John's answer is a classic we hear so much . . . "Because

we didn't have any money!"

Ray immediately shot back with, "Would you do it today

if you were shown how without using any of your own
money or credit?"

"Sure I would, but how can you buy real estate with no
money?"

"John, you happen to be chauffeuring the best qualified

man in America to teach you that. We're doing a seminar
tomorrow at the hotel where you're dropping us off. If
you want to come learn how, we'll comp you to this
event, can you make it?"

"Oh, I'd love to but I've got two fares I have to pick up
during the day and I need the money so I don't want to
miss them."

"So John, what can you expect to make tomorrow if you

pick up both those fares and all the others you could get
during the 8 hours of the seminar?"

"Well, I think I could knock down about a hundred

bucks."

"So, you're saying you'd rather take the hundred bucks

than come learn how to get out of this cab and get back in
the chips?"

About this time I heard all I could stand and had to put in
my two cents worth. I said, "John, this man just offered
you a rare opportunity to come learn how to make a good
living on purpose doing the same thing you've already
done by accident. He offered to pay your way, which
saves you $49. You told him you'd love to learn how to
buy real estate without money, you hated driving a cab
and you're sick of being broke. Yet, when you're given an
opportunity to change all this, you passed it by for a
hundred bucks you may or may not even collect!"

His reply was, "Yeah, it does sound like a good

opportunity, but I have to check with my wife first."

About that time I had heard all the excuses I could handle
and snapped back at John, "No, that won't be necessary
John, because I've just revoked your free pass. If you
want to come it will cost you the same $49 it costs
everyone else in the room. However, I'll give you one
more chance to get out of this cab for life. I have a brand
new book that will show you how to buy real estate
without money. If you wish, I'll send you this book,
which sells for $24.95, in lieu of your tip. What do you
think?"

I think you can guess his answer -- he politely declined

my offer.

After that Ray and I didn't say another word to John. We

just shook our heads in disgust. Five years from now
John will probably be doing the same thing he's doing
now. That's if someone hasn't shot him or beaten him to
death for crack money.

So, what can we learn from our episode in the cab?

Actually, there are several lessons hidden in this story.
The first lesson, the one Ray and I have the hardest time
dealing with is:

Stinkin' Thinkin'!

As hard as we tried, we couldn't convince John that a past

failure in life is no excuse to give up and not try again.
We put opportunity right in John's path and he chose to
step over it. A small decision he made that night will
probably affect him for the rest of his life.

Unfortunately, he won't realize what he's lost because

people rarely get upset about missing unseen
opportunities. It's always easier to do nothing than to take
a risk where you might fail. No one wants to fail, but
some people, like John, are so afraid of it they'd rather
not try at all.

How about you? Are you so afraid of failure you freeze

up when opportunity presents itself? When opportunity
knocks do you turn up the remote control so you can't
hear it?

Some people say, "All I need is a break. Just give me a

chance and I'll show you!" Well, I don't want to ruffle
any feathers here, but as far as I'm concerned, that's a
load of crap! It's an excuse to sit around feeling sorry for
yourself. People make their own breaks. If you're waiting
for a break, all you'll get is what's left over by those who
hustle.

The Best Way To Predict

Your Future Is To Create It

Failure is nothing more than a learning experience and

should not be used as a crutch. A second lesson we could
learn from John is to dance with the one who brings us to
the party.
John made $100,000 on one house and then decided that's
not the way he should be getting rich. He didn't succeed
because he didn't know how to repeat what he had
accomplished and didn't take the time or trouble to
investigate. Instead, he plunged into another business not
knowing any more about it than he did about real estate.
Opportunity is all around us but we're so busy walking
over the dollars to get to the dimes we can't see it.

I frequently talk to people who previously made serious

money with real estate but, after some kind of unforeseen
problem, quit doing what was working. You can't quit
and you can't let a bad experience from the past stop you
from making your future more prosperous.

You Must Learn From The Mistakes Of Others -

You Can't Possibly Live Long Enough To Make
Them All Yourself!

All the excuses in the world will not justify lack of

action. You can lie to yourself, your family and your
friends, but you can't lie to me. If it's not happening for
you, there is only one reason . . . you won't let it. If you
fail, it's your fault and yours alone. Not your spouse's, not
your parents' or children's, and it's not because of your
age.

The Enemy Is Here....It Is Us.

Sometimes we simply have to turn and face the tiger.

Find out what the biggest roadblock to financial freedom
is in your life and knock it down. If you don't, you'll go to
your grave wondering what could have been. You'll die
of the "If-Ida" disease. "If-Ida" just got started when I
had the chance. "If-Ida" spent more time playing to win
instead of playing not to lose. "If-Ida" thought enough of
my family to quit feeling sorry for myself. "If-Ida"
listened more, talked less and not been such a die-hard
skeptic. "If-Ida" spent more time planning my future than
I did my vacations.

I was watching Dr. Robert Schuller on TV last Sunday

and he said something so powerful I instantly sprang to
my feet and wrote it down:

Only You Can Sign The Death Warrant On Your

Dreams

Yes, it's an awesome power you've been granted. The

power to succeed and the power to fail. The choice is
yours and only yours. What will you do with it?

All People Are Self Made.

Only Successful People Admit It.

There's nothing I like more than receiving letters and

faxes from the many students who've come to realize the
power within themselves and taken positive action. Keep
them coming.

Don't be like John and spend the rest of your life in

survival mode. Within the next 24 hours I challenge you
to do something, anything, that advances you towards
your first or your next deal. Go make a mess, make
mistakes, make an offer, upset a REALTOR, talk to a
seller, write a contract, call on an ad, listen to my tapes....
anything that creates movement. Whatever you do, keep
away from negative-thinking morons. If you're not
progressing, could it be due to the people you're hanging
around with? If so, my suggestion is to jettison them
immediately. Not when it's convenient, but right now.
Look, I know it won't be easy, but neither is getting rich.
When I began in this business I was faced with the same
problem: Listen to the morons or do what my heart told
me was right. I chose the latter and I've never looked
back.

Now, many of those people I was so worried about are in

the real estate business. It didn't take them long to quit
criticizing me and start inquiring about what I was doing.
And it didn't take me long to learn . . .

"It Doesn't Matter What The Morons Say!"

Well, I hope John the cab driver finds success before the
end of his life. Somehow, I don't think he will. Some
people just slam the door on opportunity and weld it shut.
Don't let this happen to you. If you're reading this, it
means you've reached out and you're willing to listen or
you wouldn't be reading this.

Keep plugging away until you've made all your friends

and family green with envy and all your money worries
are recent history.

Table Of Contents
Ron LeGrand had to borrow money to attend his first
real estate seminar twenty years ago when he was
bankrupt and running a gas station. Today, he is
recognized as the nation’s leading authority on buying
and selling single-family homes for fast cash with no
credit, little or no personal investment or risk. Ron uses
his techniques to personally “Quick-Turn” over 1400
houses and continues to actively pursue real estate deals
to this day.

Author, trainer, lecturer, consultant and entrepreneur

extraordinaire, Ron has earned a reputation as the best in
his field. His workshops are routinely standing-room-only
and his Boot Camps continue to grow in popularity. Ron’s
secret is simple: his programs work -- as evidenced by
the thousands of successful real estate entrepreneurs all
across North America who call him by the affectionate
title, “The Guru”.
Stay updated Ron’s FREE online newsletter at
http//www.ronlegrand.com
Table Of Contents
Selling Houses Fast Part One
by Ron LeGrand

One of the most common things people fear about getting

into real estate is they're afraid they can't sell the house
and somehow they'll get stuck with it. I can understand
why this would create anxiety for a beginner because
they simply don't have enough facts to overcome the fear.
However, if you're not a beginner and this is still a
problem, there's no excuse for it. So let's get it fixed right
now.

The truth is . . . selling should be the easiest part of your

business

Are you not buying because you're waiting to sell what

you have first? Is your income suffering because you
haven't plugged the hole in the back end? Are you so
afraid of selling you quit (or never started) buying?

In this article, I'll discuss the reasons why some people

have trouble selling and how to fix them. In addition, you
should know we now have a live, two-day boot camp I
teach focused on the same thing...Selling Houses Fast
(available from www.sdiwealth.com).

I've identified 14 reasons here. Pay close attention to

numbers 4-7 because combined they equal about 80% of
why houses don't get sold quickly.

Most of the time it's a people problem, not a house

problem. So here we go, in no particular order.

Why houses don't sell quickly

1. Not ready to sell.

2. Poor area.

3. Over priced.

4. Salesperson's personality problems.

5. Inflexibility of seller.

6. Salesperson's lack of knowledge about

 financing programs available.

7. Salesperson's lack of knowledge about

attracting & prescreening leads.

8. No follow up system in place.

9. Functional obsolescence.

10. House very small.

11. Salesperson loses control of the loan process.

12. House located too far away from the city.

13. House is in high price range where few buyers

can afford.

14. Only one bath.

Notice the majority of these problems are directly related

to the person in charge of making the sale...and the rest
should be fixed before you buy.

1. Not ready to sell

2. Front appearance - Would you want to see the

inside?

3. Roof - Does it need to be replaced?

4. Exterior paint - Is it at least 2 colors and looks

fresh? Are the colors pleasing or gaudy?

5. Interior paint - Is it two colors or does it look

like a white tornado went through it?

6. Interior trim - Is there color, paper borders,

blinds, bath and kitchen accessories, lever door
handles, shower curtain or door, etc.?

7. Carpet - Same old lifeless, ugly brown or have

you tried hunter green? Would you want this
carpet installed in your home?

8. Central heat and air - If you're in the southern

two-thirds of the country, it's not an option. Do it.

9. Kitchen - Does it have plenty of cabinets or just

 enough to get by?

Customers won't complain about shoddy repairs. They

just won't buy.

If it doesn't look good enough to satisfy your wife, your

buyers won't like it either. Spend a few more dollars and
make it a house you can be proud to sell and know your
buyer will rave to others about.

If you do, amazing things will happen.

1. It will sell quickly.

2. It will appraise for more.

3. You'll sleep good at night.

4. Your buyers will send you customers.

5. Your good reputation will spread quickly.

6. The neighbors will send you customers or sell

their houses to you.

7. Your attitude will improve and you'll enjoy

dealing with buyers more because you know you
have a great product.

8. You'll save the extra money you spent in

holding costs. So, in reality all these benefits are
free.

9. It'll probably even improve your sex life. Think

about it. More sales means more money. More
money means happier spouse or significant other.
Happier spouse means more frequent and better
sex. I heard that on Oprah the other day.

10. Poor area

11. Is it a war zone? If so, you must learn to sell

low income houses or don't buy there if you
intend to retail.

12. In low income areas it's critical you master the

art of financing. You will not survive if all your
sales must be to a buyer or sold for 100% cash
 out.

Get educated or get out.

The good news

A. You can make some large spreads on these

houses because you can buy them dirt cheap.

B. Most of your competition won't touch them.

C. They're easy to find and easy to buy.

D. At today's interest rates buyers can qualify

with small incomes.

E. Financing is plentiful. Some with no down

payment.

F. You can always wholesale if rehabbing isn't

feasible for you.

The bad news

A. Vandalism is normal.

B. You'll have to screen out a lot of buyers.

C. You'll be tempted to break the law by

falsifying down payments because most of your
buyers are broke. Don't do it.

D. You'll have to take back a lot of seconds and

50% or more will default. So what? It's all free
money anyway.

If you're going to work the low income or war zone areas,

just be sure your exit is clear and you don't get into any
traps. Don't rehab in a war zone unless you know where
to get the buyer financed. You'll find a buyer who wants
to live there and you can live with vandalism.

In addition, you must be flexible on terms, not expect to

get cashed out 100% and clearly understand you will be
prescreening one of the most uneducated segments of our
society. It will take patience and practice.

3. Overpriced is not what you think

Just for the record, all my houses are overpriced. And I'm
proud of it, in case anyone asks. You should always set
your sales price higher than what the house appraised for.
If you don't ask for more I can assure you, you won't get
it.

But there is a limit. You can't go nuts on me here. Putting

a $125,000 price on a $100,000 house is pushing the
envelope. However, putting a $109,900, or maybe even a
$114,900 price on it may work fine.

Your market will tell you quickly. If the buyers all

complain about the price, you know you have a problem
and you may want to lower it a little.

Warning!

Make sure the price is the problem before you go fixing

what isn't broke. Only your buyers can tell you the price
is too high. Not your spouse, your neighbor, your
brother-in-law or even your Realtor. If I had $100 for
every time a Realtor told me my price was too high, I'd
be in a higher tax bracket. Actually, that's not true. They
don't get any higher.

You can always lower the price. You can't raise it once it
leaves your lips. I don't know for sure but I bet I haven't
lowered the price on more than 15% of all the houses I've
done to get them sold. As a rule, a 10% above appraised
value or good comps is the upper limit. You'll have to
decide the price based on the area, condition, salability
and heat of the market. Just don't be giving away money
because you're listening to morons.

4. Salesperson's personality problems

Have you ever talked to a seller or a Realtor you didn't

like? A mean-spirited, grouchy, personality perhaps?
How about someone who just won't shut up long enough
for you to ask a question? Maybe you've encountered the
prescreened type who treats you like the enemy until you
pass their qualification test.

How about all those times you got the wife on the phone
and she was afraid to speak without her husband's
permission, or vice versa. That doesn't even count the
ones who do talk but never say anything. Then there's the
clueless spouse who can't even tell you the asking price,
much less the other details. Sometimes I wonder if these
folks ever talk.

How about the couple in the middle of a divorce who talk

to you like you're the one who just slept with their
spouse? Then there's the know-it-all. You know, the kind
who wants to do a seminar for you on the phone to
impress you with their intelligence in the art of real
estate. They can't sell their own house but they can
certainly tell you how to do it.

Of course we can't forget all the thinker brains trying to

sell to the reptile brains, and vice-versa. Or the sellers so
in love with their house it takes them 30 minutes to
describe every little detail while you're trying to stay
awake. Gosh, I'm getting depressed just writing this. I
don't want to ever talk to a seller again. Just kidding.

The key for you is not to become like one of those people
I just described. If you already are, you can fix it once it's
identified. Here's a hot tip. Record your calls and listen to
yourself selling your house. If there was a moron on the
call you'll probably recognize his/her voice.

Every single time you talk to a buyer you must sound...

Friendly, flexible and excited

If you can't, get someone else to sell your houses, which

is a whole other subject I'll cover next month.

5. Inflexibility of seller

That means most sellers can only see one way to sell a
house and if that isn't happening the house will sit and sit
until that perfect buyer comes along. Finding an A credit
buyer to cash you out isn't the only answer. This is
especially true for the low-income houses where A+
buyers are scarce.

The more you know about different exits, the easier it

will become for you to get flexible. If you don't have
your money in the deal and you can live another week
without the cash from the sale, it frees you up to get
creative and look at other alternatives.

Here's a news flash for you . . .

It's your job to find a buyer who loves your house . . .

then make it work!

That means sometimes you must be flexible. It's not a

perfect world. Bend a little. Here's a short list of selling
methods.

A. Sell to a qualified buyer and cash out now.

B. Lease option and cash out later

C. Sell with owner financing and help buyer get

refinanced later.

D. Sell with owner financing and sell the note at

closing for 93% of its face value. We spend a
whole day on this in the Paper Power Boot Camp.

E. Get the buyer an 80% - 90% loan with a

secondary loan at a higher rate and take back a
second for the difference.

I bet you didn't know you could be that flexible did you?
Sorry, I can't go into these in detail here but I think you
get the message. There's always another way.

6. Salesperson's lack of knowledge about financing

programs available

No, this is not the same thing I just said. If you're going
to master your craft of selling houses you must learn a lot
about financing programs.

What will kill loans? What programs require little or no

down payment? What credit can be fixed and what can't?
What will the lender want fixed before closing? Who will
let me take back a second and who won't? And 40 or 50
other questions you'll get the answers to as you go.

You don't have to know all there is about financing to sell

a house, but the quicker you learn, the easier it gets.
Make an appointment with 3 or 4 mortgage lenders and
pick their brain. Let them help with what will work and
what won't. Then when you get an interested prospect it's
simply a matter of getting the buyer's information to the
lender of your choice and letting them tell you what will
work.

That's the best way I know to learn the ropes about

financing. But you know what? A lot of veterans won't
even take time to do this. I guess they feel they're too
good or too smart to humble themselves and actually ask
for help. My friend, what you knew about financing a
year ago is not what you should know today. It changes
monthly. You must stay on top to be the best.

In issue 3, I'll finish my list of reasons why houses

sometimes won't sell. In the meantime, read over these
pointers I've given you and start developing your own
selling strategies.

Here's hoping all your houses sell faster than you can buy
them.

Table Of Contents
Ron LeGrand had to borrow money to attend his first
real estate seminar twenty years ago when he was
bankrupt and running a gas station. Today, he is
recognized as the nation’s leading authority on buying
and selling single-family homes for fast cash with no
credit, little or no personal investment or risk. Ron uses
his techniques to personally “Quick-Turn” over 1400
houses and continues to actively pursue real estate deals
to this day.

Author, trainer, lecturer, consultant and entrepreneur

extraordinaire, Ron has earned a reputation as the best
in his field. His workshops are routinely standing-room-
only and his Boot Camps continue to grow in popularity.
Ron’s secret is simple: his programs work -- as
evidenced by the thousands of successful real estate
entrepreneurs all across North America who call him by
the affectionate title, “The Guru”.
Stay updated Ron’s FREE online newsletter at
http//www.ronlegrand.com

Table Of Contents
Table Of Contents
Selling Houses Fast Part Two
by Ron LeGrand

The first step to success in buying and selling is locating

prospects. Without potential buyers it's very hard to sell
houses. Frankly, an ad in the newspaper should be
enough to attract plenty of prospects if you know how to
write the ad and where to put it.

I can't turn this into an ad-writing course, but any ad that

gets prospects to call is a good one. Any ad that doesn't is
a bad one, or it's in the wrong publication. Make sure
your ad gives the prospect a reason to call. Try to include
a USP (Unique Selling Proposition): What can you offer
that everyone else isn't?

For example:

Lease Purchase
No Qualifying Owner Financing
No Bank Qualification
No Money Needed
Easy Terms
Owner Will Help
Will Accept Anything On Trade
No Down Payment
You Get A Car With The House, etc.

Some students use flyers distributed in newspapers and

don't run ads. Others use a lot of signs, referrals, mail
outs, the Internet and electronic voice broadcast.

We'll cover all these in the Selling Houses Fast Boot

Camp, but the key is to make sure you keep a good flow
of leads coming in until the house is sold. Where most
people fail is how they handle these leads once they come
in.

That, my friend, will receive a lot of attention at the boot

camp. It's by far the weakest link in the chain. Leads
must be prescreened properly and the good ones worked
daily. Out of any batch of leads will usually come some
qualified ones. Maybe not with a credit, but qualified if
you're flexible as we discussed in the last issue. What I
look for most, are people who love the house and are
excited about owning it. Give me that and a little
something to work with and I'll get them in it.

8. No follow up system in place

Why do some folks insist on doing the same job several

times when it can be done once? If you're not building a
buyer's list of some kind you must love punishment. It's
simple. If you have more buyers than houses, you don't
run ads, send flyers, mail letters or any of that other stuff.
You pick up the phone and call the prospects you've
prescreened from the last time and tell them about your
new house.

Why is that so hard? It looks to me like it's easier to

suffer the pain of creating a buyer's list once, rather than
talking to dozens of prospects from ads every time you
get ready to sell. You don't have to be an organizational
wizard to enact a little follow up. Hey, a pile of
prescreened buyers on the corner of your desk with no
separation or filing system is better than nothing. Sounds
like my system. No, that's not true. At least I put them in
a file folder. Then I misplace the folder, but I always
know it's close by (somewhere).

9. Functional obsolescence

This one is a house problem, not a people problem. You

usually can't fix this and shouldn't buy if it's present. That
way you won't have trouble selling.

Here are some things that come to mind:

• Extremely small rooms

• Bathroom off the kitchen
• Walk through bedroom to get to the only bath
• Low ceilings (under seven feet)
• House added-on unprofessionally
• Strange layout that can't be fixed
• Adjacent to odors, commercial property,
school or anything else that makes it
undesirable
• Bad or no foundation

That's just a few of the things I can think of now. Note:

Sometimes you can correct this and sometimes you can't.
If you don't see a way, simply pass.

10. House is very small

I guess this is also functional obsolescence, but it's very
common. Any time a house has less than 1,000 square
feet I get cautious. I've learned that houses under 900
square foot are usually hard to sell and there's not much
you can do but keep looking for a small family of 1 or 2
people. I'm not saying they won't sell. I'm just saying
they're harder. I've probably done 200 houses below
1,000 square feet.

I think I own 3 or 4 now. I guess that verifies there is a

buyer for every house. If I can buy them cheap enough,
I'll still do some today. But I know going in they may
take a little longer to sell.

11. Salesperson loses control of the loan process

You must remain in control from the moment you buy

the house until you get a check. That includes the loan
process. You decide who does the loan, who appraises
the house, who gets the survey and termite report and
who closes. You are also in charge of speeding up the
loan.

Yep! You, not your lender. You should check in every

few days, push for results and round up missing
paperwork. If you don't, the close will drag on forever.
Would you allow your boss to hold your paycheck for 2
to 3 weeks until he decides to pay you? That's exactly
what you're doing when you let a loan processor jerk
your chain. So, the next time you lose a buyer because he
didn't close quick enough, go to your bathroom mirror
and cuss out the person responsible.

The last time I lost a buyer two days before closing, it

was because God told them not to buy. If I'd been two
days earlier, maybe I wouldn't have been competing with
God. Oh well. Six weeks later I sold the house for $3,000
more than the first buyer. Maybe I wasn't competing with
God after all.

12. House is located too far away from the city

That's an easy one. Don't buy it. Unless you want to

create a lot of driving time so you can listen to more of
my tapes. Frankly, I don't buy anything I intend to retail
that's more than 30 minutes from my office. Of course I
know for some of you in big cities that's about three
blocks away. Hey, you can always move.
13. House is in high price range where few buyers can
afford

Actually, sometimes that has no bearing because the

upper market is hot. If it is, the high value is not an
excuse for a slow sale. The problem is elsewhere on this
list. But in smaller cities where a $500,000 house is the
mansion, you can certainly expect it to take much longer.

All that just makes a case for you to not guarantee

monthly payments on big loans. Unless you're a sadist
and looking for pain you shouldn't try to outguess the
market. Don't count on a high priced house selling
quickly just because you like it. Remove the risk, give
yourself time and you'll discover the big ones sell just
like the little ones, but hopefully with a lot more profit.

Caution

You'd better make sure you have a large spread on those

big babies. Buyers of $500,000 homes are more
sophisticated and more apt to ask for a price reduction.

The good news is these folks can usually qualify for a

loan, and the majority of the sales are all cash. Owner
financing and lease purchase just doesn't have the sizzle
it does on the lower end. That doesn't mean it's not used,
only not as often.

14. Only one bath

I've sold hundreds with only one bath but it's not my
preference. Cheap houses, not a problem. Houses above
$80,000 - $100,000, it's very difficult. For houses much
above $100,000 it's almost impossible. People who can
pay more, want more. If you can't add a bath you may
wish to consider not buying if you feel it's important to
the sale.

I have never added a room on the house to add a bath.

The only time I have added a bath I've used the existing
structure. That should cost you no more than $1,500 -
$2,000. Trying to sell a 4-bed/1-bath house ain't easy.
Selling a 3-bed/1 bath is okay as long as the house is
small. Selling a 2-bed/1 bath is the norm and buyers will
expect it.

Well, that's about it. I won't guarantee that every problem

you'll run into is on this list, but chances are, the next
time you're having trouble selling a house, if you'll take a
good look at this list, I bet the problem is in it. If you do
run into something out of the ordinary that I've not
discussed here, drop me a line.

In the meantime, remember that there are no real

problems, just solutions. And, very often, when you do
run across a problem property, there's hidden profit there
for someone who knows the answers and can create a
solution.

Table Of Contents
Ron LeGrand had to borrow money to attend his first
real estate seminar twenty years ago when he was
bankrupt and running a gas station. Today, he is
recognized as the nation’s leading authority on buying
and selling single-family homes for fast cash with no
credit, little or no personal investment or risk. Ron uses
his techniques to personally “Quick-Turn” over 1400
houses and continues to actively pursue real estate deals
to this day.

Author, trainer, lecturer, consultant and entrepreneur

extraordinaire, Ron has earned a reputation as the best
in his field. His workshops are routinely standing-room-
only and his Boot Camps continue to grow in popularity.
Ron’s secret is simple: his programs work -- as
evidenced by the thousands of successful real estate
entrepreneurs all across North America who call him by
the affectionate title, “The Guru”.
Stay updated Ron’s FREE online newsletter at
http//www.ronlegrand.com

Table Of Contents
Table Of Contents
It Takes Money To Make
Money, And Other...Big
Lies!
by Ron LeGrand

Whoever said it takes money to make money was

someone trying to justify why they’re broke. It does not
take money to make money, and I’ll prove it. I’ll give
you a step by step plan to buy and sell a house, even if
you’re absolutely broke, have a negative net worth, no
job, no friends, no credit and just got pardoned from the
state prison. The truth is, if you can’t make money
without money, you can’t make money with money!

When I started in 1982, I had no money or credit. I was

broke. I had no credit cards, no rich relatives, not even a
wife working to support me. I was lying in the gutter
looking up at the curb. I’d quit my job and burned the
ships behind me. The only way out was to make it, or get
another job. I had a mortgage and bills just like everyone
else, yet somehow I made it happen. I succeeded in spite
of the odds stacked against me.

You wanna know why? I’ll tell ya why! I succeeded

because I had no money or credit! Believe it or not,
having money and credit when you begin your career as a
real estate entrepreneur can do you more harm than good.
It can ruin you if you’re not careful. Having no money
keeps you focused on doing the deals that don’t require
money. If your credit sucks, like mine did, you can’t
apply for bank loans. Therefore, you have inadvertently
avoided the two biggest mine fields. Not because you
were so smart, but because you had no choice.

Whether you have money or not, you should learn to

leverage your brain, not your wallet. When you do that,
having money becomes a non-issue because you don’t
need it to buy houses. If you write big checks, you’re
always worried about losing those checks. If you
guarantee loans, you risk everything you own. Do
neither, and you eliminate your risk. I bet I’ve said those
words a thousand times, and I still see people who should
know better doing it anyway.

Don’t get me wrong, I’m not saying you shouldn’t have

money. I’d actually prefer you to be filthy, stinking rich!
I’m just saying you’ll get there a lot quicker if buying
houses doesn’t depend on your capital or the number of
loans you can borrow. Because if it does, you’re a slave
to your limited resources and your business will move at
a snail’s pace.

How many loans can you get before you get cut off?
Only a handful! Then what? How many deals can you
buy if you have to write a check for each? You get the
drift. On the other hand, how many loans can you take
subject to before you get cut off? That’s right, there is no
limit! And no one’s counting, because it’s endless. You
can buy 500 houses and never ask permission or fill out
an application to submit to a brainless loan officer.

The loans are not on your credit, and you aren’t

personally liable. If disaster strikes before the loans are
paid off, like a deep recession, it’s now the banks
problem, and not yours. If you’re new and I lost you
there, subject to simply means the loan stays in the sellers
name, but title transfers to you. You can learn more about
this from the For Sale by Owner Cash Flow System and
the Multiple Offer Strategies Boot Camp.

If you’re buying junkers to rehab, how many private

loans can you get before you get cut off? All you want!
You should always come away from closing with more
than you need to buy and fix the house. So having
enough money to buy a junker isn’t a problem. The
problem is lining up your lender or mortgage broker to
get you the money, which you can do in a coma once you
make up your mind to get it done and quit using money
as an excuse to fail.

“But Ron, I can’t find any private lenders or mortgage

brokers that will work with me!”

Whine, whine, whine. Well here’s my response to that:

bull! What you really mean is no one has come to you
and begged you to take their money, so it gives you an
excuse to be a lazy loser. Have you ever asked for
money? How many times? What did you say? Who did
you ask? Were they broke? Have you looked for brokers?
If I put a pistol in your ear and gave you ten days to find
a private lender or get exterminated, would you find the
money?

Okay, forget private money and forget rehabs. How much

money do you need to wholesale a house? You guessed
it: nada! Well, maybe a $10 deposit to the seller. Can you
raise that all by yourself? How much do you need to lease
option a house and then sublease it to a tenant/buyer?
You know the answer: none!

So let’s recap for a minute. Taking over loans subject to

on pretty houses usually requires no money from you, or,
at most, a small amount. Yet you can immediately lease
option the house or sell with owner financing and pick up
$5,000, $10,000, $20,000 or more from a deposit or
down payment, all within a few days.

You can also buy junkers and rehab them using private
loans. Getting cash when you buy and sell, never
spending a dime of your own money. You can also lease
option pretty houses from the seller and sublease to
tenant/buyer, picking up deposits in the thousands within
days and huge back-end checks when they cash out.

Wait, I’m not finished! Don’t forget about the bargains!

Flip them to bargain hunters and make $5,000, $10,000
or more and never own the house. All of this with none
of your own money or credit.

So I ask you, what’s all this crap about how you can’t get
started or get moving because you don’t have the money?
I think I made it very clear, money is not your problem.

Since I don’t know you, I don’t know what’s stopping

you, but I’ll tell you what stops a lot of folks...grit, or the
lack of it! No guts. Afraid of their own shadow. Going
through life avoiding confrontation or pain. Can’t grow
because they won’t go. You wanna know who seems to
do the best in this business? The people without money
or credit, but lots of grit. And how do you get grit? It’s
simple. You first suffer adversity and get beat up and
kicked around awhile. Then one day you wake up and
realize they canÕt hurt you anymore and there’s only one
way to go...up.

When you quit worrying about losing, you can start

thinking about winning. You see, people with grit have
learned to quit playing not to lose and begin playing to
win. Does this mean you don’t have grit if you haven’t
been to the bottom? Of course not. Adversity is not a
requirement for grit. It just seems those who are the
bloodiest seem to be more fired up and move quicker,
with more passion. They’ve seen the black hole and they
don’t want to go back.

It’s quite common for those who begin with money to

leap before they look and spend money on stuff that
doesn’t produce revenue. Stuff like office furniture,
computers, electronics and foolish advertising that wastes
money. A smart entrepreneur will put their money in the
bank and start their business on a shoestring. All the
fancy stuff doesn’t put a dime in the bank. In order to do
that, you must make offers, and you should be making
them without using your money or your credit.

Here’s a simple plan to do your first junker deal from

your home using no start up capital (eliminating the risk).
When you get that first check you can use some of it to
get the things you’d like to buy to help you grow the
business. This plan applies to you whether you’re dead
broke and bankrupt or loaded with dough and can’t wait
to spend it.

1. Ride around and find 20 ugly, vacant houses. Copy

down each address and get a photo. You’ll find them in
the lower priced areas. Here’s a tip: you won’t find
junkers in gated communities!

2. Call the houses with FSBO signs and see if you can
buy them at a wholesale price of 50 to 60% of the after
repaired value or less. Be sure to let the seller name the
price first. “He who speaks first have big foot in mouth.”
Call the Realtors on listed properties and get the facts.
Make an offer if it makes sense. These will not be your
best deals in today’s market and they’ll require bigger
deposits, but can still be worthwhile. Track down the
owners of the houses with no sign and call or visit them
to make a deal. These will be the best deals, but require
more work.

3. Persist with step two until you get a signed contract on

an ugly house that excites you. This step is crucial and
you must keep charging until it’s done. If you’re broke, it
should take about a week. If you’re loaded, it could take a
year.

4. Have the title checked by ordering a title search from a

title company. When you learn it’s clear, move to step
five. If it’s not clear, go back to step one or two.

5. If it’s clear, run an ad for three days in your paper that

says “Handyman Special, Cash, Cheap, 555-5555.” Put it
in the investment property section.

6. Take the calls, tell them you’re asking price (which

should be at least $5,000 more than you’re paying) and
send them to the property. Build a buyers list in the
process.

7. Meet the first person who wants the house at your

price and get a $500 deposit and a signed agreement
assuring they’re ready to close within two weeks.

8. Set up a closing date with the title company and let

them do a simultaneous closing. Pick up a check and
celebrate. You also may simply assign your contract and
get paid directly from your buyer.

9. Do it again.

That’s it! Your first wholesale deal. Do you have

questions? Of course. So what! Just go do it and use your
best judgment. Will it go much smoother if you get
trained first and are schooled on each step? Yes, it will.
No question. But hey, you said you were broke and
couldn’t afford training. So just go make a mess and
blunder your way through until you get a check. Then get
the training as soon as you get paid.

By the way, I’ve had people do deals from just reading

my book, others from attending my one day workshop,
and still others from listening to just one tape they
borrowed from someone. These are my kind of people.
People who just do it and don’t listen to dream stealers
and broke morons. People who don’t let any S.O.B. tell
them they can’t because they don’t have any money or
credit. People with grit.

See Ya - The Guru

Table Of Contents
Ron LeGrand had to borrow money to attend his first
real estate seminar twenty years ago when he was
bankrupt and running a gas station. Today, he is
recognized as the nation’s leading authority on buying
and selling single-family homes for fast cash with no
credit, little or no personal investment or risk. Ron uses
his techniques to personally “Quick-Turn” over 1400
houses and continues to actively pursue real estate deals
to this day. Author, trainer, lecturer, consultant and
entrepreneur extraordinaire, Ron has earned a
reputation as the best in his field. His workshops are
routinely standing-room-only and his Boot Camps
continue to grow in popularity. Ron’s secret is simple:
his programs work -- as evidenced by the thousands of
successful real estate entrepreneurs all across North
America who call him by the affectionate title, “The
Guru”.
Stay updated Ron’s FREE online newsletter at
http//www.ronlegrand.com
Table Of Contents
When to Look A Gift Horse
In the Mouth
by Ron LeGrand

Many investment courses and books on real estate (mine

included) tell you to find a motivated seller. That's where
you get your good deals. As a rule, that's true. The higher
the level of motivation, the more likely you're going to
get a good price or good terms or both. But generally,
when you find a motivated seller offering a good deal,
you should take a moment to look that gift horse in the
mouth. Ask hard questions about why a seller is
motivated. Here are some examples of good opportunities
that shouldn't necessarily motivate you to buy.

Caveat Emptor Let The Buyer Beware

The seller advertises a fixer upper, but it isn't. Yes, it

could use new paint . . . and new carpet would make it
look tremendous, but that isn't the real problem. The
reason they're trying so hard to sell this turkey is because
the floor plan doesn't work. In fact, it's what we call
functionally obsolete.

When you buy a house to live in, you pay a lot of

attention to the floor plan. Unfortunately, many people
looking for rental houses or small apartment units don't
pay enough attention to the floor plan. Look through the
property as if you were going to live in it. Would you be
happy with having to go through the kitchen to get to the
master bedroom? Or through a bedroom to get to the
kitchen? How about a bathroom that is attached to your
kitchen? A ceiling less than 7’’ high or a house that's
literally sitting on the ground with no concrete slab
blocks or piers underneath.

I have seen all these problems in houses and so has

everyone else who has looked at more than a few
properties. I saw a house recently with 33 rooms. About
two-thirds of them were added on as more relatives
joined the family, and none of the additions were
constructed properly. Most were just sitting on the
ground and the additions jutted out in all directions from
the original building.
I felt like a rat in a maze just walking through the place.
It was a unique experience. The sellers had refinanced
and had maybe 15% equity. I can't picture anyone buying
it, but maybe they'll get lucky and a family with a herd of
kids will come along and want it. By the way, when I
visited the property, there were nine families living there.
I wouldn't even take a deed for free if I had to promise to
make the payments.

Your tenants and buyers won't like these houses either,

which will make it harder to rent or to sell. This is not a
fixer upper; it is a major problem. Too many people get
into fixer-uppers when they're not prepared, and over-
doers do the wrong things. The point here is learn to tell
the difference between a fixer upper which needs
rehabilitation or modernizing versus a property with
major problems that a rehab won't fix. On the other hand,
a lack of knowledge concerning what appears to be major
problems can cost you big, as well. For example, most
investors will not take on houses with structural
problems. Having the knowledge to do repairs, but not
doing them, can be a costly mistake.

What are structural problems? Basement walls caving in,

houses on piers that are sinking, Concrete slabs cracking
and sinking. I could go on and on. All houses must have a
foundation. These are most commonly constructed of
either concrete or wood.

These are relatively cheap materials and the labor to

replace them isn't nearly as costly as some of the horror
stories you've heard. If you use the right people and do a
little front end due diligence, you should be able to get a
good deal. Actually, it's no different than any of the other
repairs. You can hire one roofer out of the yellow pages
and pay him $2,000. Or you can call the guy on the next
page and pay him $5,000 for the same job. That's
rehabbing, baby.

If you insist on being a sheep, you can count on getting

sheared. If you've ever watched a guy jack up a sinking
house sitting on piers, you'd understand how very little
work it really is. It's usually easier than changing a tire on
your car. If you don't understand this, you'll overpay and
that guy will be laughing at you all the way to the bank.
Baaaaaaah!

Nothing Down
Owner anxious, will accept nothing down. I love that.
Even if I were willing to put cash down, this ad would
catch my eye. These people have declared themselves as
numero uno flexible sellers. Or have they? Again, you
need to analyze the seller's motivation. Why are they
offering such a good deal? Is it because they have to
compensate for something that's drastically wrong with
the property and can't be changed, like a bad location?
Maybe the house is the one out of 500 hundred properties
in the subdivision that backs up to the expressway on one
side and the convenience store on the other.

The sellers had two options, either cut the price

drastically or improve the terms. And the easiest way to
sell is to offer it for nothing down. The seller knows that
the less money you're able to put down the less particular
you can be. And, if the only thing you think about is
nothing down, you can be easy prey to someone who has
a property that's poorly located or has a bad floor plan or
needs major repairs.

Right Things Wrong

If you're going to look for good deals resulting from

property problems, look for a property with all the right
things wrong with it. My favorite problem is filth. I love
filthy properties. You can't sell a filthy property for what
it's worth until it's cleaned up and the discount is far more
than it costs to clean it.

I love rotten wood, overgrown shrubbery, tall grass,

broken glass, peeling paint, bad roofs, missing doors,
broken toilets overflowing with waste, cockroaches,
fleas, spider webs, dead animals in the house and the
smell of cat urine. In fact, I want the house to smell so
awful that most people won't go inside. I like it when you
open the door, the odor takes your breath away and
makes your eyes water. All these problems are easy and
relatively cheap to fix.

These are the right things wrong. So are those foundation

problems. If you can visualize the repaired house and
calculate its value compared to your purchase price, that's
the point where you begin to be able to purchase houses
for 30-60 cents on the dollar. It's like that old saying
about not being able to see the forest for the trees. Look
past the obvious problems. Learn to recognize the
opportunities.
When it's not the house that's wrong

One example of the kind of seller motivation you CAN

live with would be a change in circumstances. A classic
example is somebody who puts their house on the market
knowing they are going to be transferred in 90 days.
They find out several days later that the transfer will be in
nine days. The company needs them at the new location
early and the homeowner agrees to go if the company
will absorb the difference between what they have to sell
the house for and the recently appraised value.

By the time you run across them they're running around

like a bird with its tail feathers on fire looking for a
bucket of water. They want a buyer, and they want one
fast. Not only is this seller motivated, they don't have to
worry about how much is lost in the transaction, within
reason.

I can think of lots of examples of changes of

circumstances. These would include health, divorces,
marriages, new babies, job opportunities or firings. But
here I'm talking about a person who wants to sell the
property to solve the personal problem. I am not talking
about a person with a problem property that wants to pass
the problem on to you.

The "I Quit Syndrome"

Some sellers finally give up. I've seen them lose hope,
throw in the towel and throw the price out the window,
all at the same time. Let's build an example.

The seller has the house on the market for $120,000

when it's only worth $105,000. They have a loan balance
of $95,000. There are literally hundreds of houses
available in that price range so no one even bothers to
make them an offer. With things selling left and right
around them for a nine month period of time, and the
listing expiring for the third time, they finally decide to
do a for sale by owner at $95,000. You come in and offer
to take over their loan 'subject to' and they finally say I
can't stand it any more, I quit, and it's yours. Now it
would seem there is no way to make yourself available
for a deal like this unless you try to be the last person to
make an offer. There is a way you can be.

Persistence In All You Do

If you find a property you like but it has a price you don't
like, go ahead and make your offer but also make several
copies of it. Every two weeks send the seller a reminder
(if he or she wants to come to their senses). Maybe a
better approach, one that I have used, is to send the offer
every two weeks and say—today I am going to re-offer
what I offered before. Sign it within 24 hours and we
have a deal, otherwise look elsewhere. If you contact
them a couple times like this, you might be surprised, and
one day they just might sign what you sent them.

In many cases people don't buy until they've been asked

to buy several times. I suppose this is the same with
sellers. If the seller is not getting exactly what they've
asked for, they want to sit around for awhile and find out
what other offers are going to be made. When the offers
stop, their mood changes. If they are sitting around and
feeling disheartened because nobody has given them a
realistic offer, and you've been consistently interested,
they might just call you.

All sellers' minds will change with time and

circumstance.

Real estate investors have to wear two hats. They have to

be optimist and chase down every potential property,
especially those that look like a bargain. But they also
have to wear the hat of the pessimist and learn to ask
enough questions and listen closely enough to the
answers, to find out why the sellers are motivated.
Persistence pays and bargains are to be had. Just make
sure you find a true bargain and not somebody else's
problem. You don't want to make it yours.

Now let's talk about another gift horse you need to watch
out for. I have seen a lot of houses lately in the upper
price range (200K and up) with absolutely fictitious
appraisals. A seller calls you with a deal and says their
house appraised recently for $450,000. They have a loan
balance of $360,000 and just need debt relief. You see
$90,000 in equity just waiting for you to come and get it,
so you go get the deed or lease/option and agree to start
making the $2,800 payment.

After the dust settles and the excitement dies down, you
start doing your due diligence and learn the value is
really nowhere near that $450,000. In fact, you can't find
any evidence it's any higher than the loan balance. Then
you discover the appraisal the seller showed you was
done by a lending institution for refinancing. You then
see your $90,000 blowing away in the breeze. Now all
you need to do is find someone you can unload this
turkey on; the first person who'll offer you more than the
loan amount. Not a bad seminar, but a hard lesson
nonetheless.

Always independently verify the value of a property

yourself, especially on high-priced houses. Never accept
an appraisal from the seller as reality. It's not that the
seller was pulling a fast one. Usually they don't even
know. The problem is there's such a glut of money
available for funding loans the competition is fierce and
lenders are really pushing hard to close loans.

I can't honestly say I know exactly where the weak link

is, or why it's become so common. But I can tell you
within the last 6 months, I've seen high price house deals
cave in because the value was not there, yet a refinance
appraisal said it was.

Keep pushing,

Ron
Table Of Contents
Ron LeGrand had to borrow money to attend his first
real estate seminar twenty years ago when he was
bankrupt and running a gas station. Today, he is
recognized as the nation’s leading authority on buying
and selling single-family homes for fast cash with no
credit, little or no personal investment or risk. Ron uses
his techniques to personally “Quick-Turn” over 1400
houses and continues to actively pursue real estate deals
to this day.

Author, trainer, lecturer, consultant and entrepreneur

extraordinaire, Ron has earned a reputation as the best
in his field. His workshops are routinely standing-room-
only and his Boot Camps continue to grow in popularity.
Ron’s secret is simple: his programs work -- as
evidenced by the thousands of successful real estate
entrepreneurs all across North America who call him by
the affectionate title, “The Guru”.
Stay updated Ron’s FREE online newsletter at
http//www.ronlegrand.com
Table Of Contents
Flipping Is Illegal!
by Ron LeGrand

Oh No! All this time you’ve been telling me I could

make a killing buying & selling (flipping) houses and
now you’re telling me it’s illegal, Ron?

Well, sort of! But before you get all upset, I’d better
explain. Don’t worry; you’re not going to jail. Here’s the
deal. Illegal flipping is indeed illegal. But first, lets
define flipping because it is a misunderstood term, sort of
like the term "nothing down." When I say you can buy
houses with nothing down, I mean you’re not using your
own money. That doesn’t mean the seller doesn’t get
money. Some-times they don’t and sometimes they get
cashed out. But, it is NOT your money; it’s a "nothing
down" deal.

When you take over a loan "subject to" the mortgage, and
the seller doesn’t want any money, it’s a nothing down
deal. When you pay all cash but borrow the money from
a private lender, it’s still considered a nothing down deal.
Thousands of people don’t believe in the nothing down
philosophy and aren’t doing real estate because they
simply don’t understand the term, and therefore they’re
convinced they can't buy houses without their own
money. Their loss. A closed mind and an open mouth
will keep you broke and working for those who are
willing to learn.

Just try and tell my Boot Camp grads (especially those

who have become millionaires because they refuse to
listen to the morons) you can’t buy houses without your
own money. The same ignorance seems to be attaching
itself to the term "flipping." Totally misunderstood and
misrepresented.

Here’s The Shocker.

Every house you buy and sell is a flipper. Whether you’re

in wholesale, retail, sell- on-lease-option or owner
financing, you’ve just flipped a house. Most people use
the term when applied to wholesaling, but it’s all
flipping. It’s either a fast flip or a slow flip, but it’s still a
flip no matter how you look at it.

Ok Ron, So How Come It’s Illegal?

The Answer Is It’s Not.

The term "flipping" seems to be used by the media in

cases where an investor bought a property and sold it a
short time later. However in all the cases I’ve read, fraud
was a part of all their deals. These investors made a
practice of illegal activities and got away with it long
enough for the long arm of the law to catch up to
them...then they instantly became a news item. Flipping
houses is not illegal. Fraud is. So what kind of fraud did
these guys get in trouble over?

Here’s A Short List Of Possibilities.

1. Paying appraisers to grossly appraise properties

to get bigger loans for themselves or their buyers.

2. Rigging down payments to put unqualified

buyers in houses that shouldn’t be approved for
the loan in which they’re applying for.

3. Falsifying documents required to get a buyer

approved such as pay stubs, verification of
equipment, tax returns, verification of deposit,
etc.

4. Selling houses to unsophisticated buyers,

representing them to be in good condition but
covering up obvious problems to get the loan
closed. This is the most abused type of fraud, and
once discovered it leads to an investigation of all
the investor’s activities and usually uncovers all
other kinds of fraud.

5. Back dating lease agreements to prove a track

record of the tenant making payments on time and
a year or more occupancy, when in reality the
tenant just moved in. This is very common. I’ve
had loan processors with large mortgage
companies suggest I do it. The last time was on a
$600,000 house. I asked the loan agent if he knew
that was lender fraud. His reply was, "my boss
said it was o.k. We do it all the time."

Just remember this. Anytime the deal is different than the

contract presented to the lender, it’s lender fraud. The
loan is based on the stated facts. If you misrepresent
those facts, it’s fraud. Regardless of how many other
people participate in the process.

O.K Back To Flipping.

What does lender fraud have to do with flipping and the

stigma some of the media have placed on it? Some
lenders have had so many loans default on lower priced
properties sold by investors it’s opened their eyes and
made them cautious, and justifiably so, if I were a lender
making loans at 80%-100% of the purchase price, I’d be
cautious too. In fact, I’d be paranoid, but then again I’d
be neither because I’d never even consider doing it.

I have no way of proving this, but if I had to guess, I’d

say 75% of all loans closed to fund low income
homebuyers contain some kind of false statement or
fraud.

I know that’s a bold statement, but I’ve been around a

long time. Long enough to see numerous loan companies
take a dive from bad loans. It’s almost standard practice
in the cheap house business to stretch the truth to get
unqualified buyers qualified. This creates default and a
bad name for those who operate within the law. That’s
exactly what has happened with the term “flipping.” But,
Ill say it again. Flipping is not illegal.

There’s no law against agreeing to buy something at

price ÒAÓ and then finding a buyer at a higher price.
Suppose you had a stereo unit you agreed to sell me for
$500, and I told you I would pay you next month when I
get my tax refund check (fat chance!). You agree to wait
the 30 days it takes me to raise the money. We then sit
down and write a letter stating that, and we both sign it.

A couple of days later, I’m talking to a friend who

mentions he needs a good stereo. I decide to sell him the
one I’m buying for $1,000 and make myself a $500
profit. Obviously I can’t deliver his stereo until I give
you $500 because you probably won’t turn it loose until
you get paid. However that doesn’t stop me from
searching for a buyer.

Once the buyer agrees, I can collect all the money in

advance and pay you, collect a $500 deposit and pay you,
or I can pay you first with my money and then collect
from him. There’s no law that says I have to pay you and
take possession before I can talk to anyone about the
stereo. If they were on Ebay, they'd have a problem. Half
the stuff sold on eBay isn’t in the possession of the
person doing the selling. They agree to buy at a lower
price from another auction site and put it up on Ebay.
When it’s sold, they simply have the old owner ship it to
the new buyer.

That’s called drop shipping and it’s very common in any

industry that sells products. That’s exactly what we do
with real estate sometimes. You don’t have to own it to
shop for a buyer. You simply must control it, which is
what you do with a contract. The problem comes when
lenders see investors buying at deeply discounted prices
and selling for two or three times the amount a few
weeks later. Some just assume there must be fraud
somewhere to make such an unconscionable profit. You
see, they haven’t attended my Wholesale/Retail boot
camp.

If you’re buying and rehabbing houses it would be a

good idea to document the work you’ve done to the
house. Keep a file on everything you’ve spent to make a
case on how you raised the value so quickly. You should
also furnish before and after photos. It is also not a bad
idea to create your own album to keep while you’re
doing this. It will help with future credibility with
everyone you deal with including bankers for a line of
credit.

If you’re using private money from a loan broker, you

probably have an escrow account for repairs. That means
an appraiser may be supplying the mortgage broker with
a completion certificate once the work is done. Get a
copy and add it to the pile of evidence. Of course some
lenders won’t be happy with anything you provide and
simply won’t fund the loan unless you’ve owned the
property for a year or more. I wrote a past newsletter
article on six ways to get around that, but the best way to
deal with lenders who don’t want your business is . .
.Whack 'em!

Flipping is not illegal. The length of time you own a

house is your business. Making a killing is your right.
Providing for your family is your obligation and the
smartest thing you can do with people or institutions who
want to make life difficult is cut them off at the knees
and tell them to take a hike . . . and that’s my final
answer. They are the weakest link.

Before you even take a buyer to a lender for a loan, ask

them right up front if your length of ownership is an
issue. If they give you any indication that it’s a problem,
move on. The country is full of lenders and there is a ton
of money available. They need you more than you need
them. Don’t take any crap from any lender and don’t let
them make you believe their rules are the law or even the
norm.

Well, I’m getting tired now! It’s been a long day of

battling ignorance and skepticism and I’m worn out! I
think I am going to go "flip" open the refrigerator and get
a little snack, then “flip” on the shower, then “flip” down
the bed spread and shut my eyes for the night. Life seems
to be one flipper after another. Hope it’s legal.

Ron LeGrand had to borrow money to attend his first

real estate seminar twenty years ago when he was
bankrupt and running a gas station. Today, he is
recognized as the nation’s leading authority on buying
and selling single-family homes for fast cash with no
credit, little or no personal investment or risk. Ron uses
his techniques to personally “Quick-Turn” over 1400
houses and continues to actively pursue real estate deals
to this day.

Author, trainer, lecturer, consultant and entrepreneur

extraordinaire, Ron has earned a reputation as the best
in his field. His workshops are routinely standing-room-
only and his Boot Camps continue to grow in popularity.
Ron’s secret is simple: his programs work -- as
evidenced by the thousands of successful real estate
entrepreneurs all across North America who call him by
the affectionate title, “The Guru”.
Stay updated Ron’s FREE online newsletter at
http//www.ronlegrand.com
Magic Words That Make
Millions
by Ron LeGrand

I've just finished reading (for the second time) a book

called Magic Words That Bring You Riches, authored by
my good friend Ted Nicholas, a member of our Board of
Directors. Ted has sold over 200 million dollars worth of
information products worldwide by direct marketing.
Over the years he put together a collection of Magic
Words to get people to do things they ordinarily
wouldn't do.

In Magic Words, Ted discusses how to do such things as

get the best table in a restaurant and first class seats on
airplanes. He talks about how to slash the cost of a room
at first class hotels and attract all the money you need for
any business venture. Want to approach a member of the
opposite sex and immediately gain interest? How about
renting a Mercedes for the price of a Ford or buying
jewelry at below wholesale prices?

Ted can tell you how to attract the best employees to

make your business prosper, as well as how to get
capable people to work for free. He even discusses ways
to gain financial interests in other people's companies
without investing one red cent. Pretty cool stuff, huh?
And that's just the first few chapters. This book is also a
masterful direct marketing bible covering every aspect
of the business by a consummate professional. Like I
said, I read it twice.

Then it hit me! Like Ted, I've got a collection of magic

words I've accumulated over the years. Most are
designed to help me get into or out of a real estate deal.
All of them work.

The words you are about to read have made me millions

of dollars and, if used properly, could do the same for
you. The truth is, students have been trying to get me to
do this for years, but it was Ted Nicholas book that
pulled the trigger. Incidentally, this one issue of the
Mentor could easily justify your cost for the next ten
years.

Okay, here goes. Here's a set of magic words you should

 know by now and use daily:

"If I pay you all cash and close quickly, what's the
least you would accept?”

and that's always followed by:

"Is that the best you can do?"

If you're not using these words to get to the bottom line

quickly, you're making a mistake, not to mention
wasting valuable time. These words cut to the chase and
save you a lot of time otherwise spent beating around the
bush. Of course, if you're naming the price you'll pay
before you ask what the seller wants, I'll have to take
you out behind the woodshed . . .

Ye who speak first have big mouth & will pay

handsome price for house.

Those words aren't exactly magic, but they speak the

truth nonetheless. Never, never name the price you'll pay
or the down payment or monthly payment you'll pay or
accept when selling.

Okay, lets say you've asked 'Is that the best you can do,'
and the seller says yes. A good follow-up line that works
for me is . . .

"So you're saying if I don't give you $_____, you

won't sell the house?"

Now if the answer is still yes, you won't be buying today

unless you're willing to change the focus to a terms deal
rather than a price deal.

A good icebreaker to use when you want to make it clear

that you're not happy with the number you've been
quoted is . . .

'What's your second choice?'

I usually chuckle or use a hint of humor when I ask this.

It's better than simply saying I won't pay the asking
price.

Let's say you're trying to get a seller to name the asking

price and they won't. You know better than to pressure
them, but you just can't get them to break. Try this . . .

"How about a dollar?"

This will get through to them and probably produce an

answer. If so, you're back in the screening process and
you know where you stand. If not, you can come back
with . . .

"I simply have too many prospects to work with to

waste time on those I can't buy. If you'll tell me what
you're asking, I'll know quickly if we can do
business. Is that fair?"

By this time, they're usually in or out. You can't buy

houses from uncooperative sellers. By the way, did you
notice some powerful magic words hidden in there?
Take note of how I tend to answer a question with a
question. 'Is that fair?' turned my response into a
question and put the responsibility to answer back on the
seller. It also softened the blow and made me seem more
warm and fuzzy. 'Is that fair?' is a powerful set of magic
words that should become a part of your everyday
vocabulary with almost everything you negotiate.

Let's say you're pre-screening a seller who has a house

with a mortgage balance. First, you want to know what's
owed on the property or you can't possibly determine
whether it's a deal or not. These aren't magic words, but
are critical ones:

"What do you owe on the house?"

What if they say it's none of your business? You say . . .

"I buy ____ houses per year and use many different
methods. I'm probably the most serious buyer you've
talked to yet. However, I'll need the facts to be able to
present you with an intelligent offer. Will this be a
problem for you?"

Again, a question in an answers clothing. Did I not sock

it to them on that one?

Frankly, anyone who won't give you the facts is not

ready to sell yet. You got your answer . . . move on. You
can't make un-motivated sellers motivated.

Now you have your answer. You know the loan balance.
Now it's time to find out where you're headed with this
deal, so ask . . .

"Will you sell the house for what you owe on it?"

Those magic words can make you $500,000 per year if

you ask them on all your deals. With just those twelve
little words, you'll instantly know whether you'll be
getting a free house by taking over the debt or an almost-
free house with debt plus a little cash thrown in. Of
course, you may also learn that the seller wants full price
and is not flexible. Again, you found out what you
needed to know with twelve words. Now you know
whether to proceed with the deal or move on.

Now let's say you can't get a deed because of the due on
sale clause or the seller won't trust you with their credit.
But you see opportunity there and a lease /option makes
sense. Here's the opening line to present the offer . . .

"I will lease your house with the right to buy it for
the loan balance when I purchase. I'll guarantee your
payment and maintenance until the loan is paid off
and the house is out of your life. How does that
sound?"

Notice how all the benefits come before the question.

The seller has enough information to encourage a
positive response. Isn't that better than will you
lease/option your home to me?? Another good question
that will ease the seller's mind and make you seem
genuine is . . .

"If it doesn't work for both of us, then we don't want

to do it, do we?"

That makes it pretty clear that you're not desperate to

make the deal. Another version is . . .

"If this will cause you to lose sleep at night, I'd rather
not do it. Is it going to be a problem?"

Here's a good one to break a stalemate and get you back

in negotiation as well as collect more facts that might
lead to different offers . . .

"If you and I can't do business today, what will you

do with the house?"
This also gets the seller thinking, particularly about all
the ugly answers to that question. Their answer may be,
'I'll put it on the market or list with a Realtor until it
sells.' Your response . . .

"And what if it doesn't sell?"

At least you'll get a feel for whether this seller is worthy

of your follow-up list. I hope you know by now that . . .

"All seller's minds will change with time and

circumstance"

Here's one you'll love if you're a beginner and worried

about the seller finding out that you don't exactly know
what you're doing. First, don't sweat it. You don't have
to appear to be an expert. You can try to fake it, but if
you're confronting an intelligent seller, many times
they'll see through you and try to ask you embarrassing
questions. So if you're asked if you've ever done this
before, use these words . . .

"Well actually, no. This is my first deal after

graduating from some rather intense training. I was
hoping you'd help me do it right, OK?"

Asking for help brings you down to the seller's skill

level and you've built trust by answering truthfully.
Don't worry about the seller expecting you to be an
expert. If you seem sincere and excited, you'll usually
get the deal. In fact, being too smart or seeming too
confidant will often turn off more people than if you
appear to be a novice. They'll think you're too green to
cheat them.

Now let's say you're talking to a seller about carrying a

mortgage and the subject of interest comes up. Your
goal is zero interest, so you shouldn't be the one to
initiate conversation on this topic. If the seller doesn't
mention interest, you shouldn't, either.

When presenting an installment offer, the magic words

are . . .

"I'll pay $____ per month until you're paid in full."

Of course, this means you've divided the loan amount by

the monthly principal payment you want to pay,
excluding interest. If the seller comes back with “what
interest rate is that?” Your response is . . .

"Why do you need interest?"

Then if you get more argument and it becomes a sticking

issue, you could respond by saying . . .

"What's more important, your interest or getting the

house sold now?"

If that doesn't get the job done, say . . .

"If I give you interest, how much can we lower the

price?"

Or . . .

"Will you sell to me with no down payment?"

Or . . .

"Would you wait six months(or a year) for your first

payment?"

Or . . .

"Would you take 25% off the balance I owe you if I

agree to pay you off within _____ years?"

Of course, these same tactics can be used if the seller is

asking you to raise your offer. You'll notice it all comes
down to some very powerful magic words that can be
adapted to many uses (If I . . . , Would you . . .). How
about when you're raising private money and
approaching potential lenders? Here's my icebreaker that
hasn't changed one whit in 16 years . . .

"Do you have an IRA or any other investment capital

that's not getting you a 15% return safely?"

These magic words will get you all the money you need
assuming you ask at least some people who have money
to invest.

Now let's look at the selling side and discuss a few

choice words I use to find good buyers. When
wholesaling, I want to know my buyer will come to
closing with the money and isn't simply trying to jerk
my chain. In this case, the magic words are . . .

"When do you want to close?"

If they need more than ten days, they're a time waster

and I'm at risk. If they say "ASAP", I know they're
serious.

There are so many magic words to use when pre-

screening buyers, it's easier to simply use the whole
script because these words are all magic. I can't tell you
how many hundreds, maybe thousands of buyers (idiots)
I talked to before I developed the words and the order in
which I use them. Here we go . .

"Do you want to buy or rent?"

If the answer is rent and you want to sell, the rest is

worthless conversation. But before giving up, use one
more line . . .

"If I can show you how to buy and get you financed,
would you rather own than rent?"

If yes, continue. If no, save your breath. Next . . .

"Have you ever tried to buy before?"

"Yes."

"What stopped you?"

This lets you know immediately what you're dealing

with.

"Is your credit good, fair or poor?"

Don't ask how's your credit.' Some people are ashamed

to tell you it's ugly and will simply lie. Give them a
multiple-choice question so they know you won't be
shocked if they have poor credit. If it's bad . . .

"What's on it a bank wouldn't like?"

This breaks the ice and gets the customer to open up.

Now the big question . . .

"How much money can you raise for a down

payment?"

Whatever the answer . . .

"Can you get any more?"

"Can you borrow from relatives?"

"Do you have credit cards?"

"Do you have something you could sell or trade to

me?"

"Can you repair houses or have other skills to earn

more?"

"Are you willing to rob a bank to raise cash?"

Oops! Got a little carried away on that last question. It

might not be appropriate.

Now let's assume you see someone you can work with
and you want them to get excited and realize that you are
their solution to home ownership. Here are the words
that will glue them to you . . .

"If you can convince me you want the house and

make a commitment to buy, I'll get you financed one
way or another. Even if I have to be the bank. If I
can't get you in a home of your own, no one in this
city can."

These words have sold a lot of real estate for me. They
really make an impact on your buyer's level of hope.
Follow them up with assurance that you are easy to work
with and very flexible and the prospect will be putty in
your hands.

"We can do whatever you and I agree. I own the

house and I'll do what it takes if you will. Is that
fair?"

Well that ought to be enough magic to keep you

practicing awhile. Of course, these words aren't really
magical until you begin to actually use them and make
them work.

Ron LeGrand had to borrow money to attend his first

real estate seminar twenty years ago when he was
bankrupt and running a gas station. Today, he is
recognized as the nation’s leading authority on buying
and selling single-family homes for fast cash with no
credit, little or no personal investment or risk. Ron uses
his techniques to personally “Quick-Turn” over 1400
houses and continues to actively pursue real estate deals
to this day.

Author, trainer, lecturer, consultant and entrepreneur

extraordinaire, Ron has earned a reputation as the best
in his field. His workshops are routinely standing-room-
only and his Boot Camps continue to grow in popularity.
Ron’s secret is simple: his programs work -- as
evidenced by the thousands of successful real estate
entrepreneurs all across North America who call him by
the affectionate title, “The Guru”.
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