continuing note from Ted Thomas recent auction preparation workshop

[Andrew Ardianto]

Helo everyone.

My apology. I should update you all earlier, right after the seminar.

The following is my note, this is not everything but bit and pieces. It is not complete but I still believe it will benefit us. 

The note is short-formed, do not read like proper article but expand it yourself, complement it with your knowledge.

However do not hesitate to ask me should you need clarification/explanation.

So here is the what I can gather, from Friday afternoon onward:

Fri, Mar 14, 2014

Coach Krystal.

She emphasize a lot into the selling portion, all investment/purchase must have exit strategy.

Marketing plan must be launched in full force just like space shuttle. Speed is everything.

Attack market from all angle as much as possible, to get the most buyer.

In normal situation, realtor is the main person and the job is to sell your property while you are waiting.

In this business, do everything in your power to market your property to help your realtor.

Krystal (and Rene) experience is that by doing their own marketing, the property sold faster than just rely on realtor.

One of the marketing strategy is ugly sign, the uglier the better.

Krystal puts newspaper insert in the local paper.

She says like it is, no sugar coat. i.e.:

"the house has not been cleaned. It is a dirty, filthy, stinking, ugly house that needs lots of work"

This ads sold house within 5-6 days.

Selecting area: not the hottest market, not the worst, choose middle demography.

her favourite motto: Done is better than perfect.

Ted support Krystal method:

The key to this business is SELL. Do not FIX. Quickly EXIT, and get CASH

Sat, Mar 1, 2014

Coach Krystal is back.

Ted suggestion: read book Art of War, by Sun Tsu.

Marketing is about: let the world know.

check: bwxa.com

Here is how to find quick buyer:

- exchange club

- RE investor club

- end user (useful for "someday lot" --> people buy lot thinking someday will build house)

The job of realtor is to make your selling job easier. This is paradigm shift.

It is wrong to go to realtor that focus on end user but you want to attract investor.

TedThomas

Selling IBGS and Strategic Alliance.

Purpose is to invest in surplus land, strike off lists, unwanted property.

These are pot of gold and is growing bigger and bigger.

Strategic Alliance members could buy subdivision, i.e. $50K to $75K cash, and 30 pcs it would be lots of money for each person. But with Strategic Alliance, one person could just contribute $5K

The target is not buying houses or commercial property, but focus on buying developed residential land.

(my note: I have involved in this similar strategic alliance by exempt market dealer which allow RRSP contribution to participate in private equity to buy subdivision, and build it and sell it to retail buyer. This investment typically mature in 3-4 years with expected return of 20% year to year. I can explain further if you are interested)

Back to TedThomas:

He explain San Diego is too competitive.

Anybody can buy property, but only pros can sell property.

Trusted source of property value: tax assessed value by county.

Always buy with exit strategy

Always have plan A, B,C,D --> get creative, still have 22 more alphabets to choose...

Sunday Mar 16, 2014 (morning)

TedThomas

If you are in the live auction, focus on auction, don't try to communicate with other bidder, it could be violating law. Any "side" transaction can be done outside of government building.

(... by this time I had to go)

Sunday Mar 16, 2015 (afternoon)

TedThomas friend Mike Lathigee

Founder of 1-900-gotjunk, and many other businesses, avid economy analyst.

If you pick taxk lien, pick the lien that close to redeem deadline, i.e. pick 3yrs old lien, then your can foreclosure it.

example, pick $10K lien and foreclosure it for $100K --> homerun.

Mike runs Las  Vegas invesment club

Mike see decimation of middle class

S&P500 average return is 11%

diversification is bad, i.e. buy stock, bond, GIC, property, business, etc

but focus diversification is good i.e. buy multiple houses.

become expert in something, not jack of all trades.

The true inflation is 8% in USA, not 1-2% as reported. Hence retail investor in mutual fund that churns out even 6% still loose money.  

Tax lien/deed is much better strategy.

Mike also have pawn business, payday loan. Make money from middle class that will get hurt.

47million in USA is in foodstamp.

Mike notice more Canadian than UScitizen attend Ted Thomas seminar.

Some advanced strategy:

Go overbid in the tax auction and work with owner to split the interest

(my note: I don't quite understand this strategy)

Mike wants to pool money for tax lien and tax deed. His team will do it for the investor. He needs minimum $25K each, with projected net return of 20% in first year.

(my note: this is investment and participant must be sophisticated investor. To me the asking is too much, and the return is not as good. I have better deal for less money. Let me know if you are interested)

Q&A session with coaches (Krystal, Bill Beddoes, Joe Schumaker).

.... I don't take note, it's too many...

==========================================================

Well those are all my notes.

I welcome if anybody else want to add.

I would like our group to meet again and refocus this 2014 to seriously pursuing this lucrative investment. 

To this date I bought two houses in Detroit, $1K each, and according to realtor this can list for $7K each. Few people has look into the property and with the weather comes to spring, more activity will happen.

I also bought lot in Pocono lake, PA for $700 and currently is looking for realtor to list it. Market is about $9000 but I plan to sell less for quick turnaround.

I also bought house in Freeport, TX. Now this is good learning:

I never step foot at any of properties I bought, and rely on internet information. I did lots of research.

This Freeport TX house was in the struck-off list, $6250 assessed value (zillow says market is $79K) and the county asking for full assessed value or higher to bid. They accept mail-over bid with 10% down and the 90% is upon county approval.

They accept my bid (yayyy....) and while waiting for full approval from all tax authorities, I look for realtor to do survey. This is where I got the oops...

Realtor drove to house, turn on iphone facetime and walk over the house and I can see real time video of the house. Turns out it's condemned house, roof cave in, all windows and doors boarded. The neighbor confirm this house has been like this for 10-15 years !

The realtor runs some market analysis and suggest listing price only $4750.

Obviously I will loose money.

But wait !

I called county to see what should I do if I don;t want the house (and pay the 90% remaining).

So county said I can request for refund.

Yes !

So, any taker for the next meeting?

My free evenings are Tuesday and Wednesday.

Bonnie is on vacation now and will be back next week.

I don't know when will Brenda back

Iris will become grandma soon! and will be free probably 2nd half of April onward.

Andrew Ardianto

cell: 403-200-4593

On Fri, Mar 14, 2014 at 2:46 PM, Andrew Ardianto <andre...@gmail.com> wrote:

I just hop on the online seminar about 11AM Arizona Time when Bob Schumaker talk.

Most of the content has been given during our 3 days seminar at Red Deer, but these couple of points was worth noted:

Always look at the property to bid.

In Georgia after 1 year we can foreclosure (it's called foreclosure with teh right to redeem), otherwise 30% interest if the owner wants to redeem.

The property that have high chance to redeem is the one that the owner is living far from the property.

Quit Deed Claim (QCD) means clear title, save us time and money, but the liens stay with the property.

In the tax lien business, if the owner not redeem and you have to pay tax as lien owner, it is recommended to pay, as this will be additional revenue when it gets redeem. Remember the redeem profit is interest of all the investments.

After Bob, TedThomas sells IBGS again.

He is looking just 6 people to do deals, reviewing deals. improving deals and community deals.

Case story 1:

Bought surplus land $300 + $100 processing fee = $400

Will sell for $7500 cash. Or will finance.

Finally sold with finance: $750 downpayment + $100/mo till 84 months = $9150 total.

The ads on the local newspaper:

Must Sell !!!

Will Finance

Residential Lot

Call 555-5555

Case story 2:

Senior couple from Edmonton (we saw the video last time)

Bought 25K, value 70K

Bought 12K value 187K

Bought $600 value 20K

Worthwhile quote from Gene Landrum (Chucky Cheese founder)

Entrepreneurial Genius is 90% of experience and 10% of IQ

Experience means implementation, not high IQ

Tip on taking photo of property with digital camera:

1. Take photo(s) of 1 property

2. Make note about the property

3. Take photo of the note

4. Do it again from number 1. This way, it will be sequential.

Source of market valuation:

Improved property: Zillow or Trulia

Land: Loopnet.com

Rene from Vancouver is featured guest, member of IBGS:

In LA about 600 people attending live auction, but only 40 serious bidder.

day 1: 7500 properties to auction

day 2: 1872 remaining

auction went quickly, 1 property every 10 second.

Rene bought 8 properties in 3 months, with his team of 4.

One of the property is acreage valued 2.2 million in King county, bought for 15K !!!

In LA you have to cut grass on the property otherwise fire department will cut it for you and put the lien on the property. The foreclosure process wipe out all liens except for the the above lien such as grass maintenance.

Those are my morning note.

I am welcome other notes if any of you watch the online seminar.

I am sure it is to everybody benefit.

My two cents:

Who wants to accelerate this business for the profit like Rene? I am in !

The answer is not tax lien but tax deed.

Thought?

Andrew Ardianto

cell: 403-200-4593