Tips from the Teleconference:
Wholesale Buying and Rehabbing for Profit

If you're not a member of the Millionaire Mentor™ Teleconference Network, here's just some of what you missed when our speakers discussed wholesale buying and rehabbing for profit on recent teleconference calls:

• Don't take the time to physically look at a potential wholesale deal until you have the property under contract. While you're on the telephone, ask the owner what the property would be worth fixed up and how much repair work it needs. Subtract 30 percent from the fixed-up price, then subtract the repair estimate and the profit you want to make, and make an offer for that amount. Your contract should include a contingency clause that will let you either back out of the deal or renegotiate if the numbers the owner gave you aren't accurate. Plenty of sellers will refuse your offer and that's okay, because all you've invested is the time on the phone. Some will say yes, and when they do, handle the contract either by fax, courier, or by arranging a meeting with the seller. Then, and only then, do you visit the property and begin putting together an accurate estimate of the repairs. Most of the time, you'll have to go back and renegotiate because sellers typically underestimate repairs, but this is usually not a problem.

• Use names to code your marketing efforts. When you put “I buy” signs out in a particular area, use one name. When you put an ad in a newspaper, use another name. If you distributed flyers, use still another name. When a call comes in, you'll know exactly which of your marketing efforts is responsible for it without asking how the caller got your number. You can use variations of your own name. If, for example, your name is Mary Elizabeth Anderson, you can use Mary, Elizabeth, Betty, Liz, Beth, Mary Beth, and even Andy. If you work with a partner, do the same thing with his or her name.

• To reach a rough estimate on the cost of repairs, take the cost of materials times three. If your materials are going to cost $8,000, you can figure that the total repair job will be approximately $24,000. This could vary by market, but it's a quick way to do your initial estimates when you're calculating your purchase offer for a rehab property.

• It generally costs less to rehab a mobile home than a site-built home, but there are some differences in the way the work is done. To find someone who knows how to do mobile home rehabs, call several mobile home parks and ask the manager for a referral.

• When you get estimates for rehab work, ask the contractor for two numbers: what he thinks the work will actually cost and a worst case scenario number. For the latter figure, you're looking for an idea of what it will cost if the job is bigger than it originally appears. Use the worst case scenario amount to do your calculations on the deal and determine if you want to buy the property.

• Be particularly cautious when rehabbing historical homes. Hidden problems and regulatory requirements can make your costs skyrocket and eat up your profits.

• If you're buying a rehab property to keep and rent out, do the minimum you have to do to make it safe, clean, and reasonably attractive. If you're going to rehab and sell the property, you may need to do a little more to get the best price.

Members of the Millionaire Mentor™ Teleconference Network have access to some of the most brilliant minds in real estate investing and wealth building through a monthly teleconference call. Members also receive an audio CD of the session within 14 days, so if they were not able to join the live call or just want to hear it again, they are able to. Then a written transcript is delivered the following month via e-mail with the next conference reminder. Members also receive e-mail updates on various investing topics.

Sidebar:
Millionaire Mentor™ Teleconference Network Membership Packages

The Teleconference Network is more than just a monthly phone call. Membership packages include:

One-year membership: Twelve 90-minute teleconference sessions; the Business Success System; and an audio recording and written transcript of teleconference calls

Two-year membership: Twenty-four 90-minute teleconference sessions; the Business Success System; Millionaire Mentor™ Teleconference Collection; and an audio recording and written transcript of teleconference calls.

Three-year membership: Thirty-six 90-minute teleconference sessions; the Business Success System; Millionaire Mentor™ Teleconference Collection; and an audio recording and written transcript of teleconference calls.