Street smart-cash-flow-accelerators

Louis "Lou" Brown
Street Smart®
Cash Flow
Accelerator

Street Smart® Cash Flow Accelerator
Table Of Contents
Chapter One: How to Create a Plan So You Succeed in Real
Estate Investing
4
Chapter Two: How Real Estate Investors Can Eliminate
Competition
6
Chapter Three: Get Help! 7
Chapter Four: How To Properly Knock On Doors Of Those In
Foreclosure
8
Chapter Five: How To Correctly Send Letters And Post Cards
To Out-Of-Town Property Owners
9
Chapter Six: An Overlooked Way To Make Real Estate Pro ts -
Marketing To NEW Neighborhoods
10
Chapter Seven: Are You Using “I Buy Houses” Signs To
Generate Seller Leads
11
Chapter Eight: A Brilliant, Easy and FREE Way to Find Vacant
Properties
12
Chapter Nine: Give The Seller A Reason To Do Business With
You - Use A Credibility Kit
13
Chapter Ten: Always Have The Right Contract With Language
To Protect You And Yield All Possible Pro ts
14
Chapter Eleven: How and Why to Have the Seller Pay All
Closing Costs
16
Chapter Twelve: Always File A Notice Of Purchase Sale
Agreement To Protect Your Deal From Being Taken
17
Chapter Thirteen: Have The Contract State That Disputes
Should Be Settled With Mediation, Then Binding Arbitration
18
Chapter Fourteen: $10 Dollar Secret to Make Sure Your Real
Estate Contracts Are Always Binding
19
Chapter Fifteen: Always Ask For Owner Financing 20
Chapter Sixteen: When Getting Owner Financing; Ask For First
Right Of Refusal If Mortgage Is Sold
21
Chapter Seventeen: When Getting Owner Financing Ask For
Substitution Of Collateral
22
Page 1
Copyright© 1997 - 2020 Trust Associates

Chapter Eighteen: Offer to Buy “Subject To” Owner Financing 23
Chapter Nineteen: Build And Extension Into Your Contract 24
Chapter Twenty: Control The Closing; You Choose The
Attorney Or Title Company And Include That In The Contract
25
Chapter Twenty-One: Have The Seller Re nance, Get Their
Cash, Then Sell To You Subject-To The Loan
26
Chapter Twenty-Two: When Optioning To Buy Or Buying On
Agreement For Deed, Have The Seller Place Their Deed In
Escrow
27
Chapter Twenty-Three: Get All The Issues Uncovered Before
You Make An Offer
29
Chapter Twenty-Four: Show The Seller Of The Home Or
Property The Bene ts Of Doing Business With You
30
Chapter Twenty-Five: Don't Talk Your Way Out of A Deal 31
Chapter Twenty-Six: Negotiate Based On Your Sellers
Personality Type
32
Chapter Twenty-Seven: When Negotiating, Know All The Items
You Can Give Up On Before You Proceed
34
Chapter Twenty-Eight: When Negotiating Deals, Give
Concessions Slowly, If I Do This, Will You Do That
35
Chapter Twenty-Nine: Ask Questions - Don't Talk 36
Chapter Thirty: What Makes Sellers Beg To Let You Sell Them
Your House
37
Chapter Thirty-One: A Foolproof Tool That Shows The Seller
Your Offer Is Generous
38
Chapter Thirty-Two: Seeking Private Money: Here's Who To
Borrow Private Money From
39
Chapter Thirty-Three: Borrowing: Ask What They Are Earning
On Their Money; And Then Offer To Increase It
40
Chapter Thirty-Four: Help People With Money To Loan To Set
Up A Self-Directed IRA, Then Borrow From It
41
Chapter Thirty-Five: Line Up Access To Money Far In Advance
Of Your Next Real Estate Deal
42
Chapter Thirty-Six: Don't Go Into A Deal Without Knowing What
You Are Agreeing To. (Read All The Paper Work)
43
Page 2

Copyright© 1997 - 2019 Trust Associates. Trust Associates. All Rights Reserved. Street
Smart®, Certified Affordable Housing Provider®, Path To Home Ownership®, The Whole
Enchilada®, House Monster®, Millionaire Jump Start® and Louis Brown® are all Registered
Trademarks owned by Trust Associates. All text, images, trademarks, logos, content, design
and coding of this and related websites is protected by all applicable copyright and trademark
laws. No reproduction, distribution, or transmission of the copyrighted materials at this site is
permitted without the express written permission of Trust Associates, unless otherwise
specified.Street Smart®, Certified Affordable Housing Provider®, Path To Home Ownership®,
The Whole Enchilada®, House Monster®, Millionaire Jump Start® and Louis Brown® are all
Registered Trademarks owned by Trust Associates.
Chapter Thirty-Seven: How To Avoid Making Payments On
Private Money By Making The Interest Accrue
44
Chapter Thirty-Eight: Never Offer Collateral First, Only If The
Lender Insists
45
Chapter Thirty-Nine: How To Get A Reissue Fee On The
Property's Title Insurance
46
Chapter Forty: Insist On Getting The HUD-1 At Least 24 Hours
Before The Closing
47
Chapter Forty-One: Why You Should NEVER Attend The Closing
Of A Property Where The Seller Will Sign
48
Chapter Forty-Two: What Day Of The Month To Close When
Buying Multi-Family Or Properties With Tenants In Them
49
Chapter Forty-Three: Never Own Anything In Your Own Name:
Always Hold Title This Way(1 Of 7 In Lou's Series On Trusts)
50
Chapter Forty-Four: Hold Your Personal Property Such As
Autos In A PP Trust (2 Of 7 In Lou's Series On Using Trusts)
51
Chapter Forty-Five: Have A Personal Property Trust As The
Bene ciary Of Your Land Trust(4 Of 7 In Lou's Trust Series)
52
Chapter Forty-Six: How to Avoid Probate(5 Of 7 In Lou's Trust
Series)
53
Chapter Forty-Seven: How To Avoid The Due Upon Sale Clause
Legally And Easily(6 Of 7 In Lou's Trust Series)
54
Chapter Forty-Eight: How To Prevent Loss Of Your Assets And
Filing Of Judgments On You(7 Of 7 In Lou's Trust Series)
56
About Louis “Lou” Brown 58
Page 3

Chapter One: How to Create a Plan So You
Succeed in Real Estate Investing
Have a plan of action such as a business plan before you start. Well, it's a funny thing. I've
worked with real estate investors all across the country and for many years I've been teaching
since 1987 and one of the things I discovered is that a lot of people, whether they've already
started or just getting started, don't have a plan. Now, what I mean by plan is you got to figure
out what you're up to. What are you trying to create with your life, with your business? And one
of the things that I always think about is the fact that when you get on an airplane, the oxygen
mask drops down.
And what do they say? They say, put it on yourself first. So one of the things that you got to do
is take care of yourself first. Your ego. You got to get the stuff that you want. You know, God
created an amazing planet and there's all kinds of wonderful things on here for us to take
advantage of. So what resonates with you? What makes your heart sing? What's your list of
stuff that you want? I've got a few examples for you here. Now, what is it that you want? Is it
houses? Is it cars? Is it boats?
And you know, I've got students here, right? Is it college? Is it college for yourself? Is it college
for a family member, for kids, for our grandkids? Is it something that you want to give to
someone else in terms of education? How about travel? Travel to where, where do you want to
go in this incredible world?
It's a beautiful planet. The only problem is all the good stuff is not together. It's spread out all
over the place. So where do you want to go in your life and what kind of experience do you
want to have? Do you want an RV? You know, what kind of RV do you want? Now what are
you going to do? And what I want you to do is when you make this list, be specific like houses.
Where do you want these houses to be and how large do you want the house to be and how
much is that house going to cost?
Start to think about what it is that you want. Start to cut out pictures of things or print out
pictures off of the internet. What is it that is in your dream, in your vision of what you want.
Cars? What brand do you want? What year, what make, what model? What color? Boats, what
model, what length of boat, what style? Is it a yacht? College? Where? How much does that
cost? Let's put a list together.
Page 4

What I want you to do is make that list, add everything up and a line and that's your number.
That's your big number, but there's a second number I want you to come up with and that's
your monthly number. How much does it costs to own these things? What's the monthly that
we need to have coming in in order to be able to accomplish those goals in order to have those
things and to keep those things too.
I had one student, she wanted a budget of $10,000 per month for her shoes now. So it's
whatever you want in your life. Let's make a list. Let's have a great plan. What we're going to
do is follow a formula in order to build the size of business that you need in order to accomplish
those things.
Page 5
FIBO QUANTUM - HIGHLY CONVERTING FOREX PRODUCT CLICK HERE

Page 6

Chapter Two: How Real Estate Investors
Can Eliminate Competition
Avoid competition by creating outgoing leads. Examples are divorce and probate attorneys. All
right, let me explain. It's a very competitive thing out there in real estate and there's a lot of
competition that are already mailing certain lists. They're already doing things in your
marketplace. What I teach you is no competition deals where you're getting deals that other
people don't even know about. Never went on the radar.
Nobody ever saw it coming and he got a great chance to just get a deal and you're the only
market for it. So how are we going to do that? Well, let's start with attorneys, attorneys of all
kinds, but particularly real estate attorneys, probate attorneys and general attorneys.
Those kinds of attorneys have people come to them all the time with situations. Sometimes it's
a partnership breakup. Sometimes it's a medical issue and somebody's got to sell something.
Sometimes somebody went to jail and they got to get some cash to get him or her out of jail.
So there are all kinds of different reasons that people need to get rid of their property quickly.
So this is exactly where you come in. Go ahead and connect with attorneys, let them know
who you are, what you do, and that you pay referral fees as well. Now, sometimes ethically,
they can't take those referral fees, but I bet you they will take that box of Omaha steaks when it
comes to their doorstep.
Page 7

Chapter Three: Get Help!
Get help! Use bird dogs that can bring leads, knock doors and follow up on leads you give to
them.
A bird dog is the name we give to people who are in a neighborhood anyway and looking for
deals for us. Examples, could be a homeowner you know, the mailman, the UPS driver, the
local school teacher, anyone really.
Now, what do I mean by that? Well, listen, if you're really going to build a team, if you're going
to build a flow of leads coming to you, it's amazing that in every neighborhood, sooner or later
somebody's going to need to sell that house, not want to sell that house, but need to sell that
house. Sometimes it's because a family member passed away and they need to get rid of the
real estate because the inheritors just already have a home and they don't need another one.
Others is because they're in some kind of emergency may be they just got a job transfer and
they need to move someplace else.
If you've got somebody going and knocking on doors and asking; Hey, do you know anyone in
this neighborhood that has a home for sale? And then opening the door to what about this one?
Then you're getting leads that nobody else knows about. And that's one of my favorite things to
teach my clients is how to build an amazing business receiving leads, no competition leads
that nobody else knows about. You can make amazing profits with those.
Page 8

Chapter Four: How To Properly Knock On
Doors Of Those In Foreclosure
Knock on doors of those in foreclosure. Now be careful in your state. There may be restrictions
to approaching people in foreclosure. Find out, but there are only a couple of states in the
country that have a problem with that. The rest of the days have no problem, and if you think
about it, when does somebody really need you? They need you when they're having an issue.
Maybe they lost their job, maybe something happened in their life and they just need to get rid
of this problem of this real estate.
You can step in, maybe you can reinstate the loan. Maybe there are things that you can do to
take over that property and take care of the issue.Now you say, well, that sounds great, Lou.
But here's what I want you to be careful about. Don't just go to somebody and say; “Hey, I hear
you're in foreclosure. Would you like to sell your home?” That's not a good plan. Just knock on
the door and say; “Hey, do you know of any houses for sale in this neighborhood? I'd love to
buy a house in this neighborhood.”
Then see what their response is. That might open the door for you to come in and talk to them
about their situation. Now, couple of thoughts you might ask. Well, where is it that I'm going to
find out about these foreclosures? Well, we have an amazing piece of software. You can look
at it. It's at streetsmartwiz.com/propwiz. You can look at this amazing piece of software that we
use every day in our business and one of the aspects of the software is when we can step in
and find out all the foreclosures within a particular neighborhood. You literally draw a square
around a neighborhood and you can find out all the people that are in default in that
neighborhood.
Page 9

Chapter Five: How To Correctly Send
Letters And Post Cards To Out-Of-Town
Property Owners
Send letters and postcards to out of town owners. You may have heard that one before and
some of you may have actually done that before with not too much success and I can
understand why because a lot of investors are cheap and they go for the cheapest price for the
list. Well, let me explain. The list is the most vital thing you can do. Get a good list. So you want
to get a good list broker that actually can determine if that list is oversold in your area. If so,
they can customize a list for you. We have such a thing. In fact, our clients love our mail home
wiz program.
You can go to streetsmartwiz.com and you'll find out more about the amazing program that we
use that we're able to generate so many additional leads because we've got that list broker in
there and then we've got the most amazing marketing postcard you've ever seen in your life.
One of the things is that it’s so important that when you mail, don't stop mailing. Mail again and
again and again because what we've determined is that sometimes people see your
marketing, but they don't respond right then or they're not ready right then. Will you touch him
again in three months? You touch them again in six months. You touch them again and nine
months and suddenly they're ready for you.
Page 10

Chapter Six: An Overlooked Way To Make
Real Estate Pro ts - Marketing To NEW
Neighborhoods
Market to newer neighborhoods where the owners have little or negative equity. If you think
about it, newer neighborhoods, they paid retail for those homes and in many cases; the
builders are still building theirs and competing now against someone who may want to actually
get rid of their property. So that can be a real opportunity for you to step in and take over the
existing financing on the property. I bought my first house when I was 18 years old by taking
over the existing financing on the property.
One of the most powerful things I've ever learned in real estate in my entire 40 plus year career
in doing real estate. It's been fantastic and I will tell you that when you don't have to go to the
bank, you don't have to qualify for loans. You don't have to resource. It's a phenomenal way to
buy real estate.
Page 11

Chapter Seven: Are You Using “I Buy
Houses” Signs To Generate Seller Leads
Use signs to direct incoming seller leads to your investor websites or your telephone system.
Now I'll tell you that signs have been amazing in my career and when I got started in this
business there was a lot of competition and let me tell you, people used to put a lot of signs on
telephone poles, so you heard or seen signs on telephone poles.
“I buy houses” everywhere.
I threatened to get a sign that says “me too” and my telephone number. I'll tell you what, it is so
wonderful because that does work. Now in your area, you may have some problems with that.
I call him the sign Nazis. The sign Nazis might come after you and say, don't do that anymore.
Well nowhere you put your signs. That's an important tip as well. So that if you ever have to
remove your signs because the city is not so crazy about what you did, at least you know
where to go to get those and you won't be fined.
They usually give you a warning first and once you get your warning, okay, move on to another
of my many. I've got over 200 different ways to s to find deals, so that's just one of them. To
find out more and to see some of Our signs that we use, you can go to streetsmartwiz.com/.
Take a look at the layouts for the signs that we've got for you.
Page 12
FIBO QUANTUM - HIGHLY CONVERTING FOREX PRODUCT CLICK HERE

Chapter Eight: A Brilliant, Easy and FREE
Way to Find Vacant Properties
Look for vacant properties needing repairs. Find the owner, use a skip tracer. Alright, so vacant
properties exist in almost every neighborhood. Some of them don't look so vacant. How can
you find out if they're vacant or they're not vacant? Get in relationship with the mail carrier for
an area and one of the things I teach you to do is create a target market. Target market is so
important because there are relationships you can build in a target market to find deals that
nobody else knows about.
One of my favorite things is no competition deals. I've identified over 200 different ways that
you can or 200 different ideas on how you can find deals that other people don't know
about. That's in my buying volume one system. You can go to streetsmartinvestor.com and
you can find out more about my systems.
I love to share these ideas with you. Now, vacant properties have been extremely powerful in
my life and one of the things I teach is something called “$10 houses”. Think about it. When
somebody has already moved out, their lives has changed. There's a reason they're not in that
house anymore. Usually they don't care about that house. Sometimes that house hasn't been
paid, sometimes several months, sometimes several years that they haven't made payments
on that home. And amazingly, the lender hasn't foreclosed on that home yet.
So there's an opportunity there. We call them “$10 houses”, and I love to teach that to you
because it has made a difference in my life. And amazing things can happen when you take
over those homes. Now I’ll teach you about a way that you can take over those homes without
having to go to the bank, without having to qualify for loans simply by taking over the deed on
the property.
That's another thing that's very powerful in creating an amazing real estate business. So now
getting in relationship with that mail carrier in that neighborhood, they can tell you every house
in that neighborhood that's vacant. And another thing is you tell them that you pay referral fees,
$250 referral fee for every referral that is sent to you, where you actually end up doing
business, you actually end up buying that property. Mail carriers get very excited about that.
Page 13

Chapter Nine: Give The Seller A Reason To
Do Business With You - Use A Credibility
Kit
Use a credibility kit; give the seller a reason to do business with you. What I use is something
that I designed many years ago. I come from a sales background. One of the first jobs I ever
had was in sales. One of the most powerful things I learned is that if you have a story to tell
and you take it through and explain exactly who you are, what you do, how you operate to a
seller, then they're much more inclined to do business with you or someone who might be
buying from you, much more inclined to do business with you.
So I created a seller presentation kit, a buyer presentation kit or lender presentation kit. For
example, when I'm going to a seller's property, I set up my seller presentation kit and actually
go through with them about our story. Relax. We can buy your house today, Pretty House, ugly
house, upside down house. And then I go through my entire presentation. I explained to them
what they're going to see in the presentation and then explain who we are as certified
affordable housing providers, making a difference, being a community based business and
really being able to solve problems within the community. Problems that sellers have.
What I do is explain, I just take a moment to explain who we are and what we do. “We help
people regardless of their credit or financial background to end up with ownership of a property
and we work with sellers like you and houses like this in order to offer those to our clients who
will be buyers sometime in the future. So Mr and Mrs. Jones, I really do appreciate you
allowing us to work with you on your home because this is going to serve and bless another
family. How does that sound?”
So it really does invite and entice them to do business with us. And then I go through a
complete presentation about who we are, what we do, how we operate, our award winning
program, and so much more about how our program works. Now you, one of the things that
you want to do is get yourself a presentation kit. Whether you create it yourself, we've got them
available. You can go to streetsmartinvestor.com and you can actually look at our seller
presentation kit right there under tools.
Page 14

Chapter Ten: Always Have The Right
Contract With Language To Protect You
And Yield All Possible Pro ts
Over the years as I've been in this business now for over 40 years and I've learned a lot of
things in what to do and what not to do. I can tell you that one of the most powerful things I ever
learned way back in the beginning was to have the right paperwork. And I'm not talking about a
standard realtors agreement because the realtors agreement first is designed to protect the
realtor, second, to protect the seller and third, to protect the buyer.
What I found is that I really needed two different contracts. I needed a buying contract and I
needed a selling contract. I needed one that had negotiation built into the paperwork and I
needed one that had profit centers built into the paperwork.
Over the years I designed one that was truly amazing and it helped a lot of my students. I've
got clients in all 50 states and 16 foreign countries and they just brag about my paperwork and
I say it's best in the industry and I'm very proud of that. I've worked hard to do that. I figured out
what works and what doesn't. A paragraph, a phrase, a word, it can make all the difference in
success in your paperwork.
I put together something and it may be valuable to you and I've got a standard real estate
purchase and sale agreement. One of the things I've got in there is the seller pays all closing
costs and I break it down what the closing costs are. Well, of course that's negotiable, but what
if they don't negotiate? You could pay for all of your cost of funds just by the seller paying all the
closing costs and there's a lot more in there that can protect you.
Things like when does the contract expire and what if you had the never ending contract where
if a seller wasn't going to close or didn't come to the closing, you had a contract that didn't
expire and there's so many other protections in there that are necessary for you. It's important
because you could spend a lot of money getting ready to close on a transaction. You could
have a title search done, you could have inspections done on the home, you could have a
survey done, and then all of a sudden the seller doesn't show up to close.
Page 15

How do I know this? Yes, I have lived it. So I've learned that there's some things I've got to do
to protect myself and I've got mediation and binding arbitration built in so we don't have to go
through a protracted legal battle and just things to entice the seller to get themselves to the
table if they changed their mind or want to change their mind.
And I'm not saying that I don't give people an out, but we've got some things that can protect
you from losing a lot of money. And that's really what it's designed to do. Now, my system
called “Buying Volume One” and it is available for you at streetsmartinvestor.com now, under
tools, you'll see what buying is all about, but it's got all of the forms, the step by step
processes, the marketing, everything that we do to buy properties that I've used for many,
many years and proven that it absolutely works. So check it out when you get a chance.
Page 16

Chapter Eleven: How and Why to Have the
Seller Pay All Closing Costs
All right, so I have a contract that I've spent many years putting together in my career. There's
40 plus years now. I've been buying, selling and holding property and I created something
called the standard real estate purchase and sale agreement. I'll just take this one clause and
focus on it because I talked about the agreement previously. Let me tell you about this
particular clause.
This is our standard real estate purchase and sale agreement. It is loaded with profit centers
protection and negotiation for you. And this particular one says seller will pay all closing costs
in to include recording fees to intangibles, tax credit report funding, fee, loan origination fee,
document preparation fee, loan insurance, premium loan discount, title insurance policy,
attorneys' fees, courier fees, overnight fees, appraisal fee, survey transfer, tax satisfaction,
recording fees, wood destroying organism report and any other costs and fees associated with
funding or closing.
This agreement, buyer will pay all additional monies. Isn't that fantastic? Taxes rentals,
condominium or association fees, monthly mortgage insurance premiums and interest on
loans will be prorated as of the date of closing. So what happens is that this clause is already in
the agreement and many times our clients don't negotiate. They just simply go along with it.
Now of course it's negotiable. So you could strike out seller and put buyer. The other way you
could fix it is actually say, well, you will pay the first $500 or seller will pay the first $500 of any
closing costs and then you'll pay the difference. So of course everything in the agreement is
negotiable. But if it's already built that way, many times people don't negotiate.
Page 17

Chapter Twelve: Always File A Notice Of
Purchase Sale Agreement To Protect Your
Deal From Being Taken
We would like to believe that a seller, when they sign a contract with you, are going to actually
go all the way through to closing. But many times the seller has actually talked to other people
or after they do a contract with you, they're going to talk with their next door neighbor, their
uncle, their brother, their attorney, and all of a sudden somebody else says, well, I would have
paid you that or I would've paid you more than that. And then all of a sudden they're signing a
second contract with somebody else. And have I seen that? Oh yes.
And that's the reason I created a document to protect myself so that people could not steal my
deal. And you're going to love this one. I've had so many of my clients nationwide tell me that
this contract actually made them and save them 10, 20, 50, 100. One of them told me
$225,000 is what this one document made for him.
What I call it is the notice of purchase and sale agreement. The notice of purchase and sale
agreement is a document that you would actually record at the courthouse to let the world
know that that seller has entered into an agreement with you. And the cool thing is the seller
signs it, they sign it at the same time that they signed your purchase and sale agreement that I
talked about in another tip. So what happens is when they signed this, you try it down the next
day to the courthouse and you get this recorded on public record. So then if there's a title
search done by somebody else to buy the property out from under you, then this is going to
pop up.
You're going to pop up like a jack in the box, baby. Oh did you forget about me? This is my
deal.
Page 18

And you can stop them dead in their tracks because what you've done is you've legitimately
and legally clouded the title. Now a little caveat, don't record this if you don't have a purchase
and sale agreement, but if you do, you have every right to record this. Why? Because in my
purchase and sale agreement, it actually says you're going to do exactly this and then your
seller signs this and we put this on public record, not the contract, just the notice of purchase
and sale agreement.
Page 19

Chapter Thirteen: Have The Contract State
That Disputes Should Be Settled With
Mediation, Then Binding Arbitration
Over the years I've developed an amazing agreement and it's what we call our standard
purchase and sale agreement. This standard purchase and sale agreement is amazing
because it takes care of profits. It's got profit centers in there. It negotiates a lot of your
transaction for you without each point having to be negotiated by you. And it's also got a lot of
protection in there too.
The purchase and sale agreement, it's three pages long and it actually goes through, one of the
things it does is collect up all the money together on one page so you don't have to hunt
through the document to actually find out what the money looks like.
Another thing it does is it actually puts you in a position to deal with issues before they occur.
We've got a clause in here. Number 11, it's called “Default and Attorney's fees”. Now, if buyer
defaults on this agreement, all deposits will be retained by the seller as full settlement of any
claim where upon buyer and seller will be re relieved of all obligations under this agreement.
If seller defaults under this agreement, the buyer may seek specific performance or elect to
receive the return of buyer’s bonder deposits without thereby waiving any action for damages
resulting from seller’s breach. If seller refuses to sell for any reason other than those outlined
here in seller and buyer herewith agree to resolve this dispute through binding arbitration with
all costs of such arbitration being borne by the losing party. What we're doing is, and there's
some other words in here, but what's important is that we're solving a problem before it occurs.
Because if the seller refused to sell to you for any reason; you may have already spent a
bunch of money on getting ready for that closing. You may have ordered a title search. You
may have paid for a title binder. You may have done inspections on the property; you may
have spent some money getting utilities turned on. There are things that you are faced with
when you're trying to close a transaction, you got to protect yourself. If they refuse to close,
you've got an out, and by the way, they're going to initial that particular clause to make sure
that they have agreed to mediation and binding arbitration.
Page 20

Chapter Fourteen: $10 Dollar Secret to Make
Sure Your Real Estate Contracts Are Always
Binding
Always give consideration. Let me explain what that means. Contracts in order to be valid
must have certain things in there and of course you've got to have the parties in there. You've
got to have the subject matter and you've got to have some kind of consideration between the
two parties that binds the contract. Here's what I recommend and it's something that I've been
teaching my clients to do for many, many years. And simply it's when your PR, your seller
goes ahead and signs the purchase and sale agreement. Then you go ahead and bind that by
bringing a check with you.
You make the check payable to the seller, whomever's signing that contract or sellers, if
there's two of them or more, make the check payable to all of them, have them sign it on the
back. Turn it over, have him sign it on the back and go ahead and cash the check. I'm not
recommending you do that 500 or a thousand dollars that you might have heard or even more
that real estate agents typically tell you in order to have a binding contract, they want to have a
big fat earnest money.
What I've done for years and been teaching my clients to do is $10. $10 is all you really need to
bind a contract. Really, essentially, it could be a dollar, but we like the $10 because it's even
more solid, so they're going to sign the check on the back.
They're going to hand you back the check, you're going to hand them the $10 and boom, we
have just bound that contract. Now you keep that check that you just cash, put it in your folder
and now you've got evidence that you did give them consideration. One of the ways that
sellers sometimes use to get out of a contract is to say there was never any consideration.
Well, this is proof that there has been consideration.
Page 21
FIBO QUANTUM - HIGHLY CONVERTING FOREX PRODUCT, CLICK HERE

Chapter Fifteen: Always Ask For Owner
Financing
When there is equity, always ask for owner financing. Of course this is when you're buying a
property, go through your, what we call cost to sell worksheet. I'll be explaining this in another
part. What we do is actually sit down with a seller. We make a presentation to them and we end
it with something called the costs to sell worksheet.
We get down to a final number and at that final number when we're actually making an offer to
the seller, simply say that when you get to that final number, you've already taken to an
account if there is any existing financing on the property, so that final number is their equity in
the property.
At that point in time, you want to ask the seller, how would it work for you? Or excuse me,
would it work for you if you were to receive this in the form of dependable monthly payments?
Page 22

Page 23

Chapter Sixteen: When Getting Owner
Financing; Ask For First Right Of Refusal If
Mortgage Is Sold
One of my favorite ways to buy a property is to have the seller be the bank. Write that down.
The seller is the bank. Now when the seller is the bank, it's a really cool thing because of
course you didn't have to go to the bank, you didn't have to qualify for a loan, you saved all the
points, you saved the closing costs, you save all of the pain and suffering of qualifying for that
loan in the first place. Very, very powerful thing to master.
I mastered owner financing decades ago and I share with my clients how to do that. I share
that with my students, how to create an amazing business without going to banks and without
qualifying for loans. It's one of my favorite ways to buy properties. Well, when you get a seller
to carry back financing, then they're getting a mortgage and you're paying a note to that seller.
Well, that has value and they could sell that to somebody else if they were to sell it to
somebody else. If it has a clause in there that says the payor (that's you) gets a first right of
refusal to purchase that note, because many times when those notes are sold, they're sold at a
discount, so why not you receive that discount?
Now, if you've got the funds to do it, great, you go ahead and buy the note. If you don't have the
funds to do it, great. Let them sell it to somebody else and you keep on making your payments
just like you agreed to do.
Page 24

Chapter Seventeen: When Getting Owner
Financing Ask For Substitution Of
Collateral
I’m going through some of the contract closes in our amazing standard rent, a standard
purchase and sale agreement on the buying side. I've got one for buying and I've got one for
selling. I'm focusing on the buying side here in this tip when getting owner financing asked for
substitution of collateral. Now that's a powerful one. I'm going to teach you how to master the
process of getting sellers to carry bank financing. I love the idea of the seller being the bank.
Now when they carry back that loan, there's a mortgage and in that mortgage you have some
stipulations in there, some clauses, and one of the clauses I recommend that you have in
there, and it's included in my purchase and sale agreement, is that the seller agrees to
something called substitution of collateral. Of course they're carrying back a mortgage on the
property that they're actually selling to you. And you might find a buyer for that property. While it
would be a terrible thing to get rid of that seller financing, wouldn't it? Wouldn't it be wonderful if
you could move that seller financing to another property?
Well that's what I'm teaching you to do. Move that financing to another property. It's so powerful
when you've got the right paperwork and you've got the right language. I'm sharing with you
something that we call our standard purchase and sale agreement and it is loaded with profit
centers and protection and that's in my system called “Buying Volume One” and one of the
amazing things about having the right paperwork, it can make such a difference in your life. Go
to streetsmartinvestor.com click on tools and then take a look at the buying system.
I promise you it will be well worth your investment and we've really become a staple in the
industry for paperwork. So you will know that you're getting the best paperwork and the
industry has been tried. It's been true. And it's something that many of my licensees have used
for literally decades, and I'm encouraging you to get that for you and your business too.
Page 25

Chapter Eighteen: Offer to Buy “Subject To”
Owner Financing
Offer to buy the property subject to the existing financing. Oh my goodness changed my life.
First property I ever bought when I was 18 years old. I was able to do that by taking over the
payments, taking over the existing financing on the property, how powerful that was back in the
day they had a non escalating, non qualifying loans. But Congress in its infinite bought wisdom.
Of course the banks, we all know they influence the politicians by a thing called contributions to
their campaigns. Right. So one of the things they created in 1982 was a law called the garn
Saint Germain federal depository institutions act allowed the banks to put a clause in their
mortgages called the due upon sale clause.
Well, there were exceptions to that clause and one of the things we did was create an entire
system around those exceptions. I'm going to be teaching and sharing that with you. It's a very
powerful and amazing thing, but we still do this. They buy properties by taking over the existing
financing on the property. Imagine that you could just step in, take over payments, continue to
make the payments that the seller actually qualified for the loan they paid, the closing costs,
they paid all the expenses of that loan and you can step in. Maybe you're 15 years into that
loan and you now step in and start making the payments for the next 15 years. Wouldn't that
be a powerful and wonderful thing? Again, the seller is the bank and I loved that when I can
take over the existing financing. You don't have to go to the bank.
You don't have to qualify for loans; you don't have to pay closing costs. You don't have to pay
points. Very powerful. You can save fortune one transactions worth thousands of dollars to you
simply by using that amazing thing called buying a property subject to the existing financing
and I teach you how to do that in my trust system. Volume for trust system. You can find out
more about that by going to streetsmartinvestor.com and click on tools and look at trusts. Land
trusts, one of the most powerful things I've ever learned in my life. Because of land trust you
can do property subject to.
Page 26

Chapter Nineteen: Build And Extension
Into Your Contract
Build an extension into your contract. What does that mean? I've seen what sellers do and I've
seen when they don't do what they're supposed to do and I've seen that they can pull back on
you and cause you a lot of expense and a lot of loss of money because you could have gotten
a title search, you could have spent money getting a survey. Maybe you had the home
inspected, it's a lot slot. You could have invested by the time you get to the closing.
What if they just wait you out? What if they waited to the date of expiration of your contract and
all of a sudden you lose and they win because they all intended to do is to sell it to somebody
else who was offering more money. What if you had the never ending contract? And I've got a
great clause, a clause number six in my purchase and sale agreement, it says title,
examination, place and time of closing. If title evidence and survey show seller is vested with a
good clear and marketable title subject to permitted title exceptions contained in a national title
insurance company.
Commitment at its standard rates permitted exceptions for restrictive covenants, leases,
survey, current taxes, zoning ordinances and easements or record the transaction will be
closed, the deed and other closing papers. The delivered honor before the blank date and blank
year plus any extensions necessary in order to complete the paperwork.
I've got some other things in here, but the important thing is we just created what I love to call
the never ending contract and it's built into the paperwork. If you'd like to have that contract the
one that has certainly changed my life. It's what I've been using for years. It's what my
licensees all across America and all 50 states. Use this amazing contract. You can find out
more about that and go by going to streetsmartinvestor.com go to tools and click on “Buying
Volume One.
Page 27

Chapter Twenty: Control The Closing; You
Choose The Attorney Or Title Company And
Include That In The Contract
You choose the attorney or title company and include that in the contract. One of the things I've
found is whenever I let the seller control where the closing is going to be, or if I let a real estate
agent control where the closing is going to be, I've found that I have to go through some pain
and suffering and in getting in relationship with this new closing agent or attorney. So I've found
that my life is a lot better if I have my own team and in my contracts, I tell the seller where the
closing is going to be. Or I'll tell the real estate agent where the closing is going to be.
Why? Because they understand us, they know us, and if there's ever a problem in the future,
like maybe they made a mistake in the title search, you're never going to hear about it. They're
going to take care of business. They're going to take care of you and let's face it, money
makes the world goes go round. These agencies love their fees and they especially love
people that bring them repeat business, so find someone in your local area that can do that or
use one of our national title search companies and title research companies. We've got a
opportunity for you there. It's called streetsmartwiz.com/.
But do find someone that can be on your team that can close these transactions for you and
understand how we closed transaction. We do some unique things in our world. One is that we
always take title to our properties in trust. I'm going to be teaching you that in the next chapter.
Page 28

Chapter Twenty-One: Have The Seller
Re nance, Get Their Cash, Then Sell To You
Subject-To The Loan
How does that work? Well, let's say that you go to the house, and in one of my other tips I said
that we go through a presentation with our sellers. When we're going through the presentation,
we do something called the cost to sell worksheet. We get down to a final number that shows
the seller their equity. Now let's say that our seller was insisting really did need cash. Okay,
how can we get them their cash and how can we stay out of the bank and not qualify for a
loan? I love that part.
I've never been to the bank. I've never qualified for a loan on a single family or small multifamily
property. Now if I can do it, I know you can do it. One of the ways I've done that in the past is
the seller says, let's say that their equity in that property is $20,000. Okay, great. Then we have
the seller go ahead and apply for and get a new loan on the property. They get the money from
that new loan. Then we take over the payments on that brand new loan, so we bought the
property subject to the existing financing.
When we use that cost to sell worksheet, just know that property has not been financed up to
100% of the property. It's been financed significantly lower than the value of that property, so
it's easy for them to be able to qualify for a new loan because there's so much equity in the
property and if they have a good relationship with their local bank, they might be able to easily
get that loan.
There's other ways that we can do this and I love sharing them with you. I've found 37 different
ways that we can structure transactions. I even have a full-blown training on this called
millionaire dealmaker. It's a four-day event. Just on the topic of creating deals and I need you to
master transaction engineering, master deal structuring because that's where the money is.
Page 29

One of the things I teach you is that you make your money going in, you realize your money
while you own it and when you sell it, but you make your money going in. So you got to master
structuring deals and millionaire dealmaker is where we do that. You can learn more about that
in my Buying Volume One and you can also learn that and millionaire dealmaker, the live
training. So if you are interested in the system that we use the printed system, then you'd go to
streetsmartinvestor.com and look under tools. If you're interested in the training, go to a
millionairedealmaker.com .
Page 30

Chapter Twenty-Two: When Optioning To
Buy Or Buying On Agreement For Deed,
Have The Seller Place Their Deed In Escrow
One of the things you might have heard about is that you could actually purchase a property by
simply getting an option and a lease with the seller. So rather than actually getting the deed on
the property, maybe you're not so sure there's equity there. Maybe you'd be better off doing a
lease with the option to buy. Maybe the seller doesn't want to give you their deed. Maybe they
want to stop you from getting their deed. Maybe they're concerned that you don't want make
the payments. Maybe they're concerned they would have to foreclose to get their property
back.
I've got solutions for that and I love it. The step one for me is to try to get the deed and we buy
that property subject to the existing loan. We purchased it in trust and then we take over the
existing financing and I teach you that in another segment and in volume for land trusts and
let's say that the seller, for whatever reason, probably your own concern about whether this is
going to work or not, your own. Let’s say way of being that you're not giving off the right vibes.
They're a little bit concerned with your own apprehension about doing it because that's really
the problem. It's not that it's a bad concept or there's anything wrong with the concept, it's that
you have to get comfortable with it yourself and you have to learn what I call the magic words
and I've definitely got those magic words and I teach them to you.
But let's say they say no. What's our backup plan? Our backup plan is a thing called a
agreement for deed where we buy the property with an agreement to get the deed at a later
date. When you perform, when you do what you say you're going to do. When you buy the
property on agreement for deed and yes, I've got the paperwork in my Buying Volume 1
system so that you've got everything that you need to be able to purchase properties.
Remember that my philosophy is, and what I teach you is we don't go to banks and we don't
qualify for loans. So there's many different ways that we can have the seller be the bank. So
again, if they're not going to sell you the property subject to the existing loan than our backup
plan is, we're going to get something called an agreement for deed.
Page 31

If we can't get the agreement for deed, our backup plan is a thing called a lease with the option
to buy. Now I've got all the paperwork to do that. The key is that when we purchase a property
that way, we want the seller to place their deed in escrow. The reason is something might
happen to the seller. They might die, they might get divorced, they might leave town, we might,
they might not be finable, and all of a sudden we're ready today to get our deed, but we can't
find the seller anywhere or the seller’s dead.
So what do we do if we've already got the deed in escrow with escrow instructions? Then it
prevents the seller from controlling that deed any longer because as long as we fulfill on those
instructions, as long as we do what we said we're going to do, then we can get our deed
without the seller having to be present.
Page 32

Chapter Twenty-Three: Get All The Issues
Uncovered Before You Make An Offer
It’s so important when you're putting a deal together. Sometimes you negotiate one part but you
really haven't gotten all the pieces put together yet. So you might've gotten agreement over
here and then you have to bring another issue to the table and you have to get agreement on
that. And then there's another issue and you have to get agreement on that. So what I suggest
is before you close, before you actually agree, say, okay well we can take that under
consideration. What else do you need to hear about? Or what else is of concern to you? And
then you put that back to the seller and they say, well I don't have anything else.
Then you re frame and restate what was just said. So, “Mr. Jones, if I hear you correctly, what
you're saying is if I were to go ahead and take the house as is and I were to be able to take the
property next week when you move out and have hour to take it upon myself to go ahead and
pay this year's property taxes and I was to go ahead and let's say the trash out of the house, I
go ahead and take the house as is and I get rid of all the trash and the furniture and everything
in the house. Then we have a deal, is that correct?”
And then you put it back to them, have them agree to that and then complete your paperwork.
And one of the things I teach you also is to come to the table with some of the paperwork
already complete.
All you would have to do is add one or two different clauses in the special stipulations section
of my standard purchase and sale agreement. Now, what I'm teaching you from is something
called negotiations, this is one of my systems that's available to you at
streetsmartinvestor.com. This is where we go through all the personality types and all the
different things that you have to negotiate in a real estate deal, and it's very powerful because
you can actually hear me discussing exactly what to say and how to say it. One of the most
important things also is to know whom you're negotiating with and what their personality type
is.
Page 33

Chapter Twenty-Four: Show The Seller Of
The Home Or Property The Bene ts Of
Doing Business With You
Show the seller how you are benefiting them. This is so important because many times sellers
really don't appreciate some of the things that you're bringing to the table. One of them is that
you can close quickly. Now that can be very valuable to a seller, you want to contrast that.
“Well, of course, Mr. and Mrs. Jones. You have an opportunity now to go ahead and put your
property on the market with a real estate agent and they're going to tie it up typically for at least
six months. Most real estate agents won't even take a listing for three months. They only want
six months or even longer, and in fact, if things don't work out, they're going to ask you to relist
the property. Remember this, they haven't paid you a dime to tie up your property for all that
period of time with that listing agreement. Here's what we can do for you. We're different. We
can buy your house now. We can buy your house as is. Let me tell you why that's important
because a real estate investor, they would want you to go ahead and fix things so that you
could get the highest value for the property. Well, if you've got the funds to do that with, that
might be a good idea, but if you'd like to get rid of the property right now, we can take it as is.
You don't have to fix another thing.”
You see what I'm doing here is I'm contrasting what benefits that you're bringing to the table.
You want to actually say those things to the seller because sometimes they haven't really
quantified those and valued those and you do bring value as a real estate investor.
You've got to know that, that you're not the bottom feeding bad people that they are. That some
people actually paint the brush the picture of a real estate investor to be, it's just not true. We
help people. We don't hurt people. We give people an opportunity to get rid of their problem. We
can take their problem away from them right away. And for many people, that house is like an
anchor and it's on them and they just got to get rid of it. And when you come in, it's like a breath
of fresh air. It gives them a whole new opportunity. That's who you are.
Page 34

Chapter Twenty-Five: Don't Talk Your Way
Out of A Deal
I don't want to scare you, but that's exactly what I want you to be thinking of like somebody like
Lou Brown was just yelling at you. Shut up, shut up, shut up. Now here's what it says. It says,
let the seller talk. Listen, they'll tell you what they need so that you can buy their house. This is
why it's amazing. I watched so many real estate investors over my years and I've learned a lot
of things about how people learn, how people interpret things, how people act. You know, we all
are a product of our DNA. We're all a product of our background, our experiences, and how we
are actually wired ourselves in terms of our personality types.
I've noticed that a lot of people talk over the seller when the sellers talking instead of learning,
you will not make money when your mouth is moving. You will make money when you're
listening. So I want to encourage you. Shut up, listen, learn, discover and find out the seller's
pain. That's the goal. Discover what's missing in their life. Discover what a challenge is in their
life. Once you have that, now we can offer a solution to their problem.
Page 35

Chapter Twenty-Six: Negotiate Based On
Your Sellers Personality Type
Figure out the personality type you are dealing with and negotiate accordingly. What do I mean
by that? You want to listen to people. Listen, even over the phone you can discover what
personality type you're dealing with. There are four basic personality types. Of course there's
iterations of this and everybody's got all four personality types. But the important thing to learn
is that there are four basic personality types. Type A - that means bottom line oriented. They're
not interested in your conversation. They just want to know how much you're going to pay him
for the house. Well you don't know yet. And so you got to deal with and overcome that
personality. Type B - they're all about the looks.
So I've got A, B, C, D. The four personality types that I teach and a B is about the looks. You
know, how does it look? How does it make them look? Do they like how it looks? Usually you
can tell a B because they will talk to you, they will listen to you and you can hear it in their voice
that they care about the looks of their house. So they'll talk about their house, they'll talk about
some of the nice things that they did do their house. They'll also say, well you can't come now
I've got to clean up.
So obviously they care that you think that they are clean and that they are pretty and they are
nice. Now you can always tell a B because they usually have nice hair and nice jewelry,
earrings, bracelets, necklaces, and the woman, she's amazing too. You know people that they
care about their looks. You can just tell because of the way they dress and how sharp they are
and they care that you think that they're sharp as well. So you want to compliment them on
their looks.
There are computer brains, they're all detail oriented, they want details and more details and
more details and more details. Well, what do you do? You have to talk to them in their
language. That's the C’s.
Page 36

Now, the Ds. The Ds are just wonderful, caring, loving people on the planet. They take care of
people. So nurses, firefighters, police, any body that takes care of people. These are our say
police. I'm talking about the less aggressive ones, maybe the ones that work in the office, the
ones with guns there. They're more of a different personality type.
These are the things that you want to learn. Once you learn these different personality types, it
will change how you're negotiating with people. It will change what you say and how you say it.
So you want to learn how to listen. You want to learn how to speak when you're with these
personality types. Teach you about all the personality types in negotiations. Now this is volume
three of my whole enchilada of real estate investing. You can learn more about that at
streetsmartinvestor.com. Just click on tools and go to Volume Three Negotiations.
By the way, you do your own personality test as well to find out what personality type you are
because your interaction with others is relative to the personality that you have. And let me tell
you something. Once I learned about personalities and personality types, I learned how to
speak to people and then I discovered that they could actually hear me and I did a lot more
deals. So this is a very important part of your overall strategy and you're learning.
Page 37

Chapter Twenty-Seven: When Negotiating,
Know All The Items You Can Give Up On
Before You Proceed
Know all the items you can give up on before you proceed. Let me tell you why that's so
important because as you're going through the home, there's going to be certain things that
you're going to see and if you are going to give up. For example, on repairs, then you want to
know what the repairs are going to be and it's good to have a list of things that you can
negotiate on. Such as; the seller may have an existing loan and you would love to take over
that existing loan. That's one of my favorite ways to buy properties. The seller may have equity
and they may be able to do seller financing when you present it to them when you ask them.
By the way, never do that in the beginning. Always do that at the end. There are many different
things. The condition of the property and the speed at which you take over the property.
Whether you take it with a tenant in place or not, whether you accept it as is or with repairs,
and then it's a matter of what repairs. So there are many different things that can be negotiated.
I want you to make a list and in your mind, just know that each one of those has its own value.
If a seller asks you for something, then ask them for something. There's always an offset. As it
says, know what you can give up on.
Page 38

Chapter Twenty-Eight: When Negotiating
Deals, Give Concessions Slowly, If I Do This,
Will You Do That
Give concessions slowly. If I do this, will you do that? Okay. What that means is that there are
so many different items in a negotiation and it's important because they might ask you to pay
the closing costs. For example. Closing costs can be a large amount of money and it may be
something that if you agree to that, what are you getting in return. It's important that you're not
giving up all the stuff in the beginning, being anxious to actually get the deal and then later
finding out that actually it wasn't nearly as profitable as you thought it was going to be. Consider
all of the different expenses and consider that when the seller asks you for something that you
get something in return.
For example, let's say that the seller was arguing with you or discussing. The closing costs,
and you say; “I'll tell you what. If I were to take care of the closing costs, would you take care
of that water heater that doesn't work or would you take care of that leaking roof? Or would you
take care of the landscaping that's not done? Or would you take care of replacing the carpet?”
You see, there are so many things that once you look at the property, you'll know items that
you can trade off with, so don't give everything up in the beginning. Let's see what we can do
along the way to adjust. There's a reason that the word is called negotiations because many
times people are willing to give and you've got to be prepared to ask for that. If you don't ask,
guess what you don't get.
Page 39

Chapter Twenty-Nine: Ask Questions -
Don't Talk
You start running your mouth and all of a sudden you can actually talk over the possibilities. So
whenever I'm with a seller, I think to myself, how can I ask a question and discover more? “Mr.
/ Mrs. Jones, How long have you owned the property? No kidding. Now the loan that's on the
property currently, is that the original loan that you took out at the time that you purchased the
property or have you refinanced that along the way or adjusted that mortgage along the way?
Oh, no kidding.
Now tell me, have you ever updated? Say; the air conditioning system or the roof or the
appliances or has anything been updated in the house? Really? What is that then?”
Wait, and always think to yourself, wait, wait for an answer. They may need, need some time to
think and they might not have thought of yet what they should do or how they would do it. So
you give them time. And if you see that they're thinking, don't interrupt, don't come up with
another thing or don't help him either, because sometimes they're going to say things that you
had no idea that they would say. So listen, ask questions and listen.
Page 40

Chapter Thirty: What Makes Sellers Beg To
Let You Sell Them Your House
Find out what they need (the seller) then, craft your offer to show them how you'll give them
what they need. Find the seller's pain. The seller's pain is a very important thing for you to
discover, number one and number two to address. In your presentation to the seller, as you're
listening to them, as you're discovering, and another tip I mentioned, ask questions, discover
what their situation is, discover what their pain is. Once you do that, then you're going to use
that to help solve their problem, explain to them what it is that you can do for them to solve that
problem, tie in their problem with your solution.
For example; “Mr. / Mrs. Jones, I'm so happy for you that you are transferring to another state
and I'm so glad that that's working out for you. And I've got some good news for you. You know
that if you were to list your property with a real estate agent, you would have to carry that
property for six months or even longer. You'd have to make payments. I've got good news for
you. We can actually take your property right away. How quickly would you like to move?”
Boom. You find out that information if you haven't already, but you always want to tie back in
that you are bringing something to the table that's different than the others. Once if you've done
a good job actually uncovering and discovering what their pain is, then your solution is
absolutely magnificent, but again, you need to incorporate that into your language.
Page 41

Chapter Thirty-One: A Foolproof Tool That
Shows The Seller Your Offer Is Generous
Show the seller what it will cost them to sell their home the traditional way or the typical way. All
right, when I'm making a presentation to the seller, one of the things we do is a thing called a
cost to sell worksheet. We actually share with the seller what those costs are. We talk about
the real estate commission. If they were to list their home, we talk about closing costs, we talk
about repairs to the property, all the different aspects of what it will cost them to sell their home,
and if they were to move. Let's say they're being transferred to another state, then that's
another cost that has to be considered as well.
They've got to pay for someone to mow the grass. They've got to keep the utilities on. There
are many different added expenses that they may not have even considered. So when I'm
showing them by already knowing what their issue is, what their challenges, then I'm also
showing them, hey, this is what this is actually going to cost you, and it really helps them to
understand. First of all, you're not, you're not pulling the wool over their eyes. You're telling
them the truth about what their expenses would be and that's why I love our process.
We call, call it the cost to sell worksheet, but it really illustrates to the seller exactly what their
situation is. Well, this is all covered in my system called negotiations and this is available on
streetsmartinvestor.com. It does come with cds that walk you through the different personality
types. What to say, how to say it. It might be of big benefit to you.
Page 42

Chapter Thirty-Two: Seeking Private
Money: Here's Who To Borrow Private
Money From
Borrow private money from folks who are not in the business. Let me tell you what that is.
Basically a lot of folks that are close to real estate, they also understand money and they
understand interest rates and they understand the power of that and they understand just how
much profit you can make by allowing them allowing you to borrow their money. Typically when
you're close to real estate, you're actually paying more for the money if you're borrowing it from
another real estate investor or if you're borrowing from a private money lender that's affiliated
or associated to real estate.
If you think about it this way, there are lots of people in your cell phone and you think about all
the different contacts that you've got there. Many of them have money and you don't even
know it. Why? Because you've never discussed it with them. You've never discussed if they
have an IRA or a 401k or personal funds that are not invested. Imagine that you could tap into
that money. Now imagine that you could borrow money at say 4% interest and no points and
no closing costs. Wouldn't that be phenomenal?
Well, that's exactly what I teach you how to do. I've got a system called borrowing. You can
find out more about that at streetsmartinvestor.com and then click on tools and click on
Borrowing. That includes a script of what to say and how to say it. But it's just amazing that
there's so much money available out there.
When you tap into folks that are not close to the financial world, it's amazing that they will
accept. Because they're currently earning zero to 1% on their money. Imagine that they could
put their money to work using safe, secure real estate at only 4%. Well, 4% when you compare
that to cds, when you compare that to what banks pay, when the money's just sitting there in
the bank, that is a blessing and you can bless a lot of people in your world simply by telling
them who you are and how you can help them with their money.
Page 43

Chapter Thirty-Three: Borrowing: Ask What
They Are Earning On Their Money; And
Then Offer To Increase It
Before you say what you'll pay, ask them what they are earning on their money. Then offer to
increase that. What do I mean by that? Well, so many folks have their money sitting in bank
accounts right now, lots of it, and it's just sitting there earning 0.0 something percent, which is
zero. In fact, because of inflation, inflation has averaged 3% over the last 20 years according to
the Bureau of Labor Statistics, 2.94% to be accurate. Anyone who's earning less than that is
really going backwards.
Imagine that you can step in as a real estate investor and you can offer them something like
what the banks charge, for example. So if you were to go to the bank as an AA credit borrower
and borrow at today's rates, look at that rate.
How great that is? Imagine that you could offer that to Mrs. Jones, who's got her money sitting
in the bank account right now, earning 0.0 something percent and she can put her money to
work, helping deserving families end up with home ownership. Isn't that a noble and valuable
thing? What I found out is many lenders care what they do with their money.
They care what their money is going to be used for. And doesn't it make sense for you to give
them that opportunity and that option, while we've got a script for that, what to say, how to say
it. And once you learn this valuable thing, it's all there sitting ready for you. And in fact, when
you look at your contact list in your phone, you're going to find that there are people that
absolutely love this. So get the script.
There's more about this. In fact, there's a lender presentation kit at streetsmartinvestor.com
and click on tools and then look up the Lender Presentation Kit.
Page 44

Chapter Thirty-Four: Help People With
Money To Loan To Set Up A Self-Directed
IRA, Then Borrow From It
Help someone who has some money that they would like to loan, put that money to work. If
they've got a self directed IRA, fantastic, they can move that money. They can actually loan
that money to you. But what if they've got money in a retirement account and it's not a self-
directed account? Self-directed means that they can actually direct that the money comes
from the IRA Custodian to you and what you give back is a note to the IRA Custodian and they
hang onto that and watch the payments come in based upon those notes.
Well that's exactly what you can help Mrs. Jones to. You can help her move her money from a
traditional IRA into what's called a self-directed IRA and there's plenty of self-directed IRA
custodians out there in the world that can take care of that for you.
That's what I encourage you to do. Then once you help them set up the IRA, you can borrow
the money from it and it's one of the easiest monies to borrow because people don't need that
money for their groceries. They don't need that money to pay their bills. That money is orbiting
around the sun in their retirement account, and most of that money is earning 0.0 something
percent interests. Imagine that you can now give bank rates for the money, and I'm talking
about what the bank charges for a loan. You can now give that to a retirement account holder.
Page 45

Chapter Thirty-Five: Line Up Access To
Money Far In Advance Of Your Next Real
Estate Deal
I'm teaching you about how to borrow money. But not the traditional way. That I've done since I
got started in this business. I know you can avoid all of the expenses, the headaches, the pain,
the suffering that it takes to qualify for a traditional loan. Once you contact, and in other words,
plan in advance, put this on your calendar, know that you're going to have a deal come and in
some cases you're going to need all cash or you're going to need rehab money or you're going
to need down payment money, you're going to need some cash.
Well, if you've already access those opportunities to borrow money, then you've got the way
that you can actually use that money. Let's say that you've got your phone, and I've mentioned
this in another tip. You get your phone, you look at the contacts and you find where those folks
are. You call them up and you use our script that we've got so dutifully laid out for you and you
start asking some questions.
First of all, you say to them, “Let me just share with you what we're doing now. I'm a certified
affordable housing provider. We help people regardless of their credit or financial background to
end up with ownership of a property. And we work with private moneylenders who have some
idle funds sitting in their IRA or 401k or their personal account. And that money is not making
nearly the money it ought to be making or earning zero to 0.1% and what we do is put that
money to work using safe, secure real estate. Do you know anybody who might have some
private funds that they would like to put to work?”
Ask the question. It's amazing what comes out of that conversation. I've been doing this for a
while and I know what happens and I know that this can benefit you.
Page 46

Chapter Thirty-Six: Don't Go Into A Deal
Without Knowing What You Are Agreeing
To. (Read All The Paper Work)
Read all the paperwork. Know what you're agreeing to, this is so important. I've seen many of
my licensees around the country borrow money from third parties. They didn't even know what
they were getting themselves into. I've seen them borrow from banks. For example, banks
love to take all of your assets, pull them together into one. What's called a blanket loan and
then make you subject to them is if they decide that your property's not worth what they think it
ought to be worth, they can call that entire loan. Do I imagine that that was in that paperwork all
along?
They have the right at any time that they feel unsecure to literally give you a call and say, by
the way, our loan committee met and we decided that we just want to go ahead and receive the
money back on that loan.
Imagine what you would feel like if you got a call from the bank. And that happened. Well, it
was all there and the paperwork. This is one of the reasons I teach my clients not to go to
banks and not to qualify for loans. Now I know you may have a great relationship with banks
and they love you and they call you up on the phone and they beg you to come get some more
money. And I understand and if you've got one of those relationships, I'm not saying don't do
that.
Well maybe I am saying that because if you were to actually understand what to say and how
to say it, you'd be able to raise all the money you needed for your deals without going to banks,
without qualifying for loans, without paying points, and even without paying closing costs. How
powerful is that?
Page 47

Chapter Thirty-Seven: How To Avoid
Making Payments On Private Money By
Making The Interest Accrue
Make no payments. Wow. How good is that? Well, why would that be good for the lender? Let's
say they have a retirement account and they've loaned to you at say 6% interest and imagined
that that interest is accruing. That means that every month that you don't make a payment that
you owe interest on the original amount borrowed, plus you own an interest on the payment
that wasn't paid so they can earn interest accruing. Well, what does that mean by the end of
the year?
Let's say that the loan was $100,000 you just saved the payment every month on that. That
could help your cashflow dramatically. And what you could do with that additional cashflow is
by more marketing.
Marketing will drive the train. When you got the right marketing, you've got the ability to build an
amazing business in the real estate business. But the key is you got to be able to pay for it.
Wouldn't it be great as if you didn’t have to make monthly payments on this private money?
That I've been teaching you in this series. What you say to the investor is, would you like to
receive annual payments, semiannual payments, quarterly payments, or monthly payments,
and let them choose if they save monthly payments.
You say: “Of course when I send that payment in, what's going to happen to it? You're going to
put it into your retirement account and it's just going to earn what? Zero point something
percent. So not much. What if you just let your interest accrue? I'll pay you interest on that as
well.”
Then annually you can make them a single payment that incorporates both their regular
payment and the accrued interest. How cool is that?
Page 48

Chapter Thirty-Eight: Never Offer Collateral
First, Only If The Lender Insists
Only offer collateral if the lender insists. Slow that car down and don't get too excited. In this
series I've been sharing with you about borrowing money, borrowing money without going to
banks and without qualifying for loans. That's my favorite way to borrow money. I've got a
whole system on this called Borrowing Volume Six. It's in my system of training you how to
become an amazing real estate investor and build a terrific real estate business. You can find
that by going to streetsmartinvestor.com click on tools and click on Volume Six Borrowing.
What I'm sharing with you right now is the fact that in some cases, (in many cases) the lender
really doesn't care about putting this against a particular property. I'm being very careful to
share this with you because I want you to be extremely powerfully responsible around when
you borrow someone else's money that you are in a position to pay that money back. The thing
that really makes it valuable is if you give a mortgage against the property and that property
sells, then you have to give the money back because it's secured by that individual property.
What that means is Mrs. Jones now got her money back and she's not earning anything on
that money while it's sitting there idle. Alternatively though, if you borrow that money on a
promissory note, then that money is earning interest the whole time that it's out. So you put the
promissory note with a period of time. It could be 1,2,3 or 5 years. During that period of time
you've got the freedom with that money. Keep that money working and you can make a lot
more money on it.
Page 49

Chapter Thirty-Nine: How To Get A Reissue
Fee On The Property's Title Insurance
This is going to be focused on areas that affect your bottom line with a thing called a closing
statement. Sometimes you go to a closing and all of a sudden you're surprised by some of the
costs that are on there. Well, it's because you didn't manage those costs. My suggestion for
you on this tip is ask if you can get a reissue fee on the title insurance. This is when your
closing agent writes for the same firm that issued the prior title insurance. In other words, that
seller, when they purchased the property, likely also purchased a what's called an owner's title
policy.
That owner's title policy has value. If you can update that, let's say that the seller bought the
property five years ago, then the title company would only need to pick up where the other
policy left off. You see a title insurance policy essentially is the day of purchase, but not going
forward in terms of anything that might have happened to title after you purchased the property.
So when you purchase the property now, let's say it's five years after your seller bought the
property, well, they can go back just five years and look to see if anything has been attached or
any liens have attached to that property since the last time they checked the title. That can
bring a savings to you and to your bottom line.
Page 50

Chapter Forty: Insist On Getting The HUD-1
At Least 24 Hours Before The Closing
I've been talking about closing your transaction and how you can make some additional profits
when you're closing the transaction. Insist that the closing company, closing attorney or title
company, provide the closing statement to you at least 24 hours before the closing. This allows
you to look for mistakes and negotiate fees. All right, so here's what typically happens at a
closing. You get to the closing, they kind of look out the door and they see that the sellers have
arrived and the buyers have arrived and then they go back in there and they actually do the
paperwork.
Well, we don't allow that anymore. We've learned that we might be sitting there for hours while
they're putting together the paperwork. What I've done years ago, I started doing this as just
simply telling the closing agent; “Hey, I want to see those documents.” and I say 48 hours, but
I'll really take 24 hours before the closing. What I want to do is review those documents
because almost always there's some kind of mistake on there and I want you to be careful
about that. It's very important. You got to go over the numbers, do the calculations, do your
own calculations.
Just because they calculated. It doesn't mean that the person that typed in the computer didn't
get interrupted or let's just say maybe not the sharpest knife in the drawer. So let's be really
cautious and careful and conscious about that paperwork, particularly asking for it in advance
gives you time to look at it, get back to them, make changes, and then you can solve the
problem.
Page 51

Chapter Forty-One: Why You Should
NEVER Attend The Closing Of A Property
Where The Seller Will Sign
Do all paperwork for closing and advance. Do not attend the closing where the seller will sign.
You've already signed, saves time and renegotiation well. This is one of the most powerful and
and valuable tips I could give you. It used to be that you'd be actually be excited to go to a
closing and you'd wait and you'd do the paperwork and everybody's sitting around the table
and it's a big day in your life and you're purchasing an asset and it's going to set you up for a
better life than the one you've got. And how good is that? It's fantastic.
The challenge is that that's often an opportunity for some kind of breakdown and if there's a
breakdown, if there's an upset with some of the charges, like I've said to you before,
sometimes you look at a closing statement and all of a sudden there's all these additional costs
and fees you didn't think about.
Maybe there was a lien on the title. There are additional costs and fees that you didn't even
consider. Well, alarm bells sounding, you better pay attention. Anything might happen, so when
that happens, you could actually lose your deal over it. How do I know this? I've experienced
this, so what I want you to do is be thinking ahead and say, wait a minute. What I'm going to do
is require the attorney not only to send the paperwork in advance, I'm going to get it signed and
back to the attorney in time prior to the closing. Then you don't even have to be there, and I'm
talking about buying and selling as well, so you don't even have to be present.
Nobody said you had to be. You've already signed the paperwork, you agreed to it. Now the
seller simply needs to agree to it as well. Now, it's not that you're pulling the wool over their
eyes, the transactions being closed according to the terms of the purchase and sale
agreement that they already entered into. So there should be no issue and no reason for you to
be present.
Page 52

Chapter Forty-Two: What Day Of The
Month To Close When Buying Multi-Family
Or Properties With Tenants In Them
This chapter is about when single family and multifamily properties with tenants in them close. I
say, on the fifth day of the month. Why is that powerful? Because what happens is typically
now the management company or the owner has already collected the rent from the tenant. So
at the closing, because you used my contract, you're actually going to get a credit for what's
called a proration of the rent. Rents are paid in advance; so on the fifth of the month, only five
days had been used up the rest of the month. If it's a 30 day starting on the first rental, then the
rest of the month is a credit to you. Well, if it's a thousand dollar rental, look at that.
You're going to pick up another significant amount of, let's say three fives is 15 you're going to
pick up another $840 approximately of credit towards your closing statement. Well, that might
cover most of your closing costs on that transaction. That could be a really powerful thing.
Now, let's accelerate that. What if you are buying a hundred-unit apartment building? Wow.
Closing on the fifth of the month, you get all of those rents credited towards your closing
statement. Very powerful.
Page 53

Chapter Forty-Three: Never Own Anything
In Your Own Name: Always Hold Title This
Way(1 Of 7 In Lou's Series On Trusts)
This little series is going to revolve around what I believe to be the very best way that you can
set yourself up for success. And that's the whole title to your real estate in trust. An amazing
kind of trust called a land trust. Now a land trust is different from other types of trusts. It's about
30 different kinds of trusts out there. This very unique and special trust actually allows us to do
things that other trusts don't let us do. Certainly LLCs, corporations, limited partnerships, can't
do many of the things that a land trust can do. It's one of the reasons that I love land. Trust
dearly. Love them.
The first one is - never own anything in your own name. Always hold title in a land trust. Right
now you may have your personal resonance in your name. You may have your vehicle in your
name, you may have your bank account in your name. If you really think about it, how easy is
it for someone to actually look up your name and find out what you own or look up your
address and find out who owns it? It's pretty easy in this marvelous day of technology, click,
click, click, boom.
Now here's all the information, by the way, not just that property, but every property you own in
that name. How scary is that? Because it's so easy for someone, for just a couple of hundred
dollars. Somebody can follow a lawsuit at the local courthouse and go after you, maybe for no
cause at all. Maybe for cause. In any case, you really don't have a way you can regroup or
back up. Why? Because the property's already in your name. So if they were to be successful
with their lawsuit, they would get what's called a judgment. That judgment would now attached
to your name and anything that's owned by you in your name. What I believe in and what I
suggest is that every property that you own should be not only in trust, not in your name, but in
a separate trust each property in its own trust.
Page 54

Chapter Forty-Four: Hold Your Personal
Property Such As Autos In A PP Trust (2 Of
7 In Lou's Series On Using Trusts)
Hold your personal property such as autos in a personal property trust. In the last tip I was
sharing with you about a thing called land trusts, there's another kind of trust that I dearly love
called a personal property trust. Personal property trust is a different kind of trust than a land
trust. Personal property trust holds. Guess what? Personal property. So in other words, a land
trust holds land. If it has a legal description attached to it, then that goes into a land trust.
A personal property trust, on the other hand, is everything else in your life. Stocks, bonds,
mutual funds, bank accounts, cds, mobile homes, motorhome, gun collections, coin
collections, everything else in your life can be held in a personal property trust.
How powerful is that? And yes, I said vehicles. Think about the highest liability thing that you
probably have in your life. It's that vehicle. And Oh my gosh, if you've got teenagers, it's not if
but when they're going to have a wreck and all of a sudden now that can fall back on the
parents and if there's a judgment, everything that you own is literally at risk. Now, am I trying to
terrorize you? Absolutely.
I want you to understand just how important and powerful that it is that when you own assets in
your own name, you are completely at risk. In the United States of America, 82,000 lawsuits
filed every day in this country, most litigious society on the planet, 95% of the world's litigation,
something that we should not be proud of and so the only thing we can really do is to plan in
advance and make sure that we can't lose. Now, I encourage you to go to
streetsmartinvestor.com and click on tools and look at Volume Five Personal Property Trusts..
Page 55

Chapter Forty-Five: Have A Personal
Property Trust As The Bene ciary Of Your
Land Trust(4 Of 7 In Lou's Trust Series)
Trust is something that most people don't know anything about it. It's the most powerful entity
I've ever discovered on the planet. And it's something that you need to learn and you need to
master. I love being able to pass this on to other folks because of the changes and the benefits
that I've gotten from it had been totally amazing. I can't tell you how many testimonials from
others that have used my system over the years, been doing this since 1984 so there's an
awful lot of experience that's gone with that and teaching others as well over the last 30 years
has been very powerful as well.
One of the great things is this thing called land trusts. When I was saying to you before that this
is a unique and powerful entity, I really mean that because the land trust remember, is holding
real estate. And I said that a land trust is different than other types of trusts. One of the unique
things about a land trust is that you can name the trust anything you choose and that it
converts real estate into personal property interests. So imagine that with the personal property
trust I've been sharing with you over the last few tips, the personal property trust can actually
be the beneficiary of the land trust.
That means that now you have a layered trust strategy. If anyone was to ever get through
litigation and discover who the beneficiary is of the land trust, guess what they would
find? They would find another trust. And if there's a lawsuit, this is you and you're just hanging
out behind the trust and you're trying to figure out who the beneficiary of this trust might be. So
it gives you some privacy of ownership and it's the most powerful thing. And again, if
somebody was to get through the land trust, all they would find is another trust. The paperwork
to do this with the step by step process, all of information that you need to be able to create
these trusts is available to you.
Page 56

Avoid probate using trusts. If you've ever had an experience in your family where someone
passed away and somebody was left with the burden and the responsibility of having to go
through probate, it's the process by which the court system, the local court system, and the
county in which any kind of property is located, the court system has to determine who the
rightful heirs are and who is supposed to get those assets or the income from those assets
and who's supposed to pay the bills. All of this is determined in the court system. That can cost
money. It can be a huge delay and it can be confounding, confusing. It can break up families
because it's the process and the family members are not aware of what's going on.
Page 57

Chapter Forty-Six: How to Avoid Probate(5
Of 7 In Lou's Trust Series)
My suggestion to you is do not hold property in your own name. Hold property in this
wonderful, incredible entity that God created called trusts. This came over on the Mayflower.
It's been around a lot longer than LLCs, corporations and limited partnerships and one of the
great things is that because you have the trust because the property is already interest, you've
already determined who the beneficiaries are, then there's no reason for probate and in fact
trust is the only thing that avoids probate.
So doesn't it make sense to avoid the costs, the delay, the aggravation and the need for an
attorney? It can all be eliminated simply by planning your estate. Putting each asset into its
own trust, determining who the beneficiaries are, doing all the paperwork now instead of later
and with the process of probate, many things can go wrong and certainly there can be a huge
expense that you could avoid.
My suggestion to you is learn the magic of trusts. You can do that by simply going to my
website streetsmartinvestor.com and on tools.
Page 58

Street smart-cash-flow-accelerators

Street smart-cash-flow-accelerators

Recommended

Recommended

More Related Content

Similar to Street smart-cash-flow-accelerators

Similar to Street smart-cash-flow-accelerators (20)

More from PN Kalaivani

More from PN Kalaivani (10)

Recently uploaded

Recently uploaded (20)

Street smart-cash-flow-accelerators