Text from Chat on locating property

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John Michael hosted a chat and this is the text from the chat that is posted.

I hope you enjoy and learn. These are just basics so to build a foundation.

johnmichael: Let me start off with a little introduction, I have been in the business of real estate investing for 20 plus years Using Sub 2, Land Trust, Lease Option, Owner Finance, 1031 exchange, No money down, Using investor funds for purchase and the list goes on.
johnmichael: I enjoy working with pre foreclosure homeowners! Over the years I have bought and sold commercial and residential properties. I have also owned many businesses:
johnmichael: Laundry Mats, Retail Stores, Flea Markets, Convince Stores, Arcades, Rack Merchandising, Mystery ,Mystery shopping Company, Auction Centers, Answering Services, Vending, And the list goes on.
johnmichael: Now enough pumping sunshine up my own skirt LOL
johnmichael: Do understand we will be going over the basics and then step by step jump into the more advanced and creative strategies of locating Real Estate
johnmichael: I do want to cover basic investing strategy for new investors;

johnmichael: STEP 1 - Buy a piece of real estate under the most favorable terms and conditions possible with as much leverage (OPM--other people's money) as you can.
johnmichael: The art of this game is finding money
johnmichael: Money is everywhere folks
johnmichael: How many Dr's in your towns
Dan_Auito: We are gaining strength in that dept as more and more lenders are finding our home here
johnmichael: The are of OPM is just asking for it!
johnmichael: So if you have a good deal just ask
Dan_Auito: I am finding older family memebrs friends are pooling there money on me to return 15% or higher pat days for them
johnmichael: So how many knows does it take to get a yes? Anybody know
johnmichael: My investor I find them by way of letter
johnmichael: One key source is to watch the foreclosure sales
johnmichael: Search for the person who buys 2 or 3 props
johnmichael: What do you have?
johnmichael: I will teach you over the next few chat's how to find even more money to do your deals
Dan_Auito: again mailing under the radar screen with a sustained campaign pays off
johnmichael: STEP 2 - Fix it up or improve it in some way. This step could involve anything from paint and elbow grease to converting an apartment complex to condominiums or timeshares.
johnmichael: STEP 3 - Sell or finance the real estate in some way to be able to compound profits and find more real estate to follow the same three-step process.
johnmichael: The simple 3 steps will in as little as 5 years provide you with the income that will just blow you away!
johnmichael: One very important you must be a Creative thinker - When you combine traditional brainstorming with creative thinking techniques you will advance pass your competition
johnmichael: So what is creative thinking to you?
johnmichael: We are taking baby steps
johnmichael: Inside The Box thinking means accepting the status quo. For example, Charles H. Duell, Director of the US Patent Office, said, "Everything that can be invented has been invented." That was in 1899: clearly, he was in the box! Moreover, he was wrong!
johnmichael: Thinking Out of the Box Brings Profit!
johnmichael: When I first started doing 3 to 4 deals a year was great but thinking out of the box has taken me to a level that is 10 fold that every month
Dan_Auito: one things for sure, you can't follow the herd in this biz
johnmichael: Following the norm will not make you wealthy!
johnmichael: Make locating real estate prospecting easier and more fun when you approach it like a game of cards, keep your aces and play by the rules
johnmichael: For example, there are 52 cards in the deck—your job is to find the 4 aces that will do business with you now! There’s nothing wrong with the other "cards"—they’re just not what you’re looking for right now. Consequently, when someone says "no,"
johnmichael: just remind yourself this person is a "discard" not an "ace."
johnmichael: Are you starting to understand the game - it's all about numbers!
Dan_Auito: make a list of potential prospects and start checking them out. Who is your best prodspect to loan you the funds now?
johnmichael: Like in any other game, you also need to play to your strengths. You need to have a script that reflects who you are and mirrors your language patterns, not those of someone else. Consequently, a
johnmichael: script written in your own words and that reflects your niche will yield the best results as well as being the easiest to remember.
johnmichael: While you may feel that writing your own scripts is a tough assignment, in actuality, it’s fairly simple. Here are the components of an effective script.
Dan_Auito: scripts are worth money hee hee
johnmichael: A greeting: Use "Good morning," "good afternoon," or "good evening." Avoid using the word "Hello" because it is less powerful than the other three alternatives.
johnmichael: Your name and company. An offer of service. A request of the prospect if they are interested in your services
Dan_Auito: If they don't want to play you can use good ridence
johnmichael: To many of us spend time on deals that will never be
johnmichael: You have to know what you want, what you can do, and if you have the money!
Dan_Auito: motivation is more important than location in most cases
Dan_Auito: preperation and ready resources arekey
johnmichael: Real estate investing is just a numbers game!
Dan_Auito: the more hooks in different streams the better
johnmichael: If you do not understand this one point you will not make it to the level you need to be
Dan_Auito: multiple offers, adds and acquisition techniques
johnmichael: Many of us know who Mickey Mantle is and that he had - 536 Home Runs
johnmichael: but we forget that he had Over 1,700 Strikes to get to the 536 home runs.
Dan_Auito: babe ruth home run king and strike out king as well
johnmichael: Over my years of teaching I have found that most fails simply due to the strikes
Dan_Auito: learn to accept rejection
johnmichael: It only takes one deal
Dan_Auito: a month!
johnmichael: So who cares about the strikes
johnmichael: Let's take a look at the numbers for 2004
johnmichael: Realtor Sold Homes - 6 Million
johnmichael: FSBO Homes - 2.7 Million
johnmichael: Owner Financed Homes - 1.2 Million
johnmichael: Over 42 Million Homes Listed For Sale
johnmichael: Did you just see that last #
Dan_Auito: 120 million dwellings in the U.S
Dan_Auito: 294 MILLION PEOPLE
johnmichael: So you have to ask your self what happen to those homes?
johnmichael: Why did you not get one or two or even three
Dan_Auito: PROBABLY SOME MOTIVATED SELLERS OUR JOB IS TO FIND THEM SO?
johnmichael: Now look at this Homes Foreclosed - 1.7 Million
johnmichael: Over 53.6 Homes Available - 1 Million + Per State
Dan_Auito: THAT NUMBER IS GOING TO GO UP ALONG SIDE INTEREST RATES FOLKS
johnmichael: Can you see the opportunity that is available for each of you in the big world?
johnmichael: Look at it this way with just listed property out of 42 Million Homes Listed For Sale with realtors
johnmichael: only 6 Million sold and that gives us how many to deal with as an investor?
Dan_Auito: 36
Dan_Auito: MIL THAT IS
johnmichael: You got it! Look at one more staggering number is that every day in the good old USA we have 1 million people facing foreclosure!
johnmichael: So the numbers are there and it's simply up to you to make the deal!
johnmichael: Why are you not getting the deals?
Dan_Auito: They are bombarded by many offers. What's you trick to getting to them FIRST!
johnmichael: So you find them, what's the point if you do not know what to do with it!
johnmichael: You need to be personal investor - A form of person-to-person communication in which the investor
johnmichael: works with prospective sellers and attempts to influence a customers need in the direction of making
johnmichael: A WIN - WIN Transaction
johnmichael: Without this what is the point?
johnmichael: Mind set folks will make you a success in this business
KristinWI: I got that!
johnmichael: You keep asking how to find the deals!
Dan_Auito: Getting all the necessary documents is a big part of it
johnmichael: Tell me how many home did you run by today
johnmichael: How many deals did you pass up
johnmichael: If you are not looking at the deals you will never find them
Dan_Auito: Kodiak only has 2500 homes I'm glad I'm leaving!
johnmichael: To be a true REI you must master five core skills
Dan_Auito: You don't want to repo the den believe me
johnmichael: How to consistently find motivated sellers
johnmichael: Without a motivated seller you have no deal!
johnmichael: How to be a master negotiator
Sid: Stay under the radar
johnmichael: The best way is to loacte them by way of "NOD'S" Notices of defaults
Dan_Auito: Attorneys, research services, your own letters, public records lis pendens etc...
johnmichael: You can not find RE in Springfield it's all mine LOL
johnmichael: As an investor I have taken hundreds of courses the are of becoming a negotiator
Dan_Auito: notice of default if your wondering folks
johnmichael: Finding them in the legal notice is to late
johnmichael: I will show you also how to locate the NOD's as we progress
johnmichael: Locating a great deal is all about your ability to DETERMINING FAIR MARKET VALUE
Dan_Auito: I love having an appraiser as a partner
johnmichael: So you locate it! What's it's value
johnmichael: Technically speaking, the fair market value is the price a property is actually worth. This price can be determined by comparing it with the actual sold price of similar properties using square footage, age,
johnmichael: construction, number of bedrooms, bathrooms, and other amenities, etc. A fair market value is what a particular property should sell for in a reasonable period of time when exposed to qualified buyers. A fair
johnmichael: market value is usually not the price being asked by the owner or realtor.
Dan_Auito: CMA's, past sales records, other recent sales on same block, sq/ft prices etc
johnmichael: How do you determine the fair market value?
johnmichael: Cultivate Realtors
Dan_Auito: stats say owners ask 9.1% more thanthey expect to get on average
johnmichael: Realtors have easy access to recent information on the sale of properties. Building a relationship with a realtor(s) can enable you to obtain MLS (Multiple Listing Service) information, property and tax data,
johnmichael: comparables and a whole host of other information.
johnmichael: You should have a reasonable idea of what to initially look for before hitting the market. Keeping in mind you want to sell the property within a reasonable amount of time, look for the average home. Stay away
Dan_Auito: being in the market and constantly looking at many properties is also a key to discern quick values
johnmichael: from the high end of the market. The holding time can be unreasonably lengthy. Moreover, the low end is also to be avoided unless you have the time and expertise to spend on a fixer-upper. You will turn the
johnmichael: property around quicker.
johnmichael: As a beginning investors avoid a rehab property or the lure of a high priced property as many beginning real estate investors get distracted form the fact that the ideal property is the one that you take control and resale for a profit.
Dan_Auito: fixer jay decima goes for junkers and makes gold
johnmichael: The easiest place to make money is in the middle and below price range range.
johnmichael: The property should be free of damage and need no major repairs unless you are an experienced construction worker or builder. Choose properties that need only minor repairs like paint, carpet cleaning, landscaping or a general cleanup.
johnmichael: However, if a property can be bought less than 50% FMV, more extensive repair can be considered.
johnmichael: Homes in the middle price range and below are in more demand and tend to sell faster.
johnmichael: You need to only focus on areas that you can handle!
johnmichael: A great place to start is in real estate publications or the local newspaper. Hundreds of properties are sold through the classified ads. They are readily available and with a few insights, you can focus on the ones most important.
johnmichael: LOOK FOR KEY WORDS IN CLASSIFIED ADS
johnmichael: These words identify motivated sellers. One of the very best sources of properties is your local newspaper. Literally hundreds of distressed properties are advertised for sale. You cannot afford to not use this source!
johnmichael: Out of Town Owner - Non-Qualifying Loan - Foreclosure - For Sale By Owner (FSBO) - Will Sacrifice
johnmichael: Hot markets has nothing to do with not loacting deals
johnmichael: It's all on approch
Dan_Auito: another key is marketing to get those motivated sellers calling you first before they ever place an ad. Hence I buy anything cash like yesterday CALL NOW!
johnmichael: Distressed Property - Price Reduced - Illness Forces Sale - Must Sell - Repossession - Moving
johnmichael: Do you see that last word Moving
Dan_Auito: NETWORK
johnmichael: When I see a moving van I stop
johnmichael: I have found pre-foreclosure
johnmichael: I have found rentors
Dan_Auito: WHEN i SEE SOMEONE CHECKING OUT OF HOME DEPOT WITH A FSBO SIGN i FOLLOW THEM HOME"
johnmichael: So now I call the landlord
johnmichael: What makes a landlord unhappy?
Dan_Auito: VACANCIES
johnmichael: NO $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Dan_Auito: DESTRUCTIVE TENANTS'
johnmichael: If you were to call on all the property that is available in your market and visit each home, you would go crazy! It would take forever and you would never find the gems in real estate. A telephone, record form, and a quick survey are your best tools to
johnmichael: to maximize returns on time and effort. Below is a sample survey script and questions you should ask to get the ball rolling.
johnmichael: Script #1: “Hi, my name is _____________. I would like to discuss your property for sale. Is now a good time? (If not, schedule a conversation). I’m looking at several properties and just need to take a few minutes to see if your property
johnmichael: and just need to take a few minutes to see if your property would be of interest to me. If it is, I would make an offer within 24 hours.”
Dan_Auito: multi line phone with your different programs messages and an 800 number won't hurt either
johnmichael: I use prepaid cells for all of my market area's
johnmichael: I have found that when doing business out of are a local area code get's a lot more calls
johnmichael: Now we have just taken some baby steps
johnmichael: So I'm going to give you a nice steak
johnmichael: No I use Virgian and you should too. I have stock ing the company
johnmichael: Are you ready for steak
Dan_Auito: medium rare please
johnmichael: Any realtor in the house?
Dan_Auito: Ya what do you want
johnmichael: How many homes do you sell that you list? All or is it just a numbers game
Dan_Auito: You know I am John
Dan_Auito: about half
johnmichael: Do we know who realtor.com is?
Dan_Auito: of course
johnmichael: What is the value of an expired listing to an investor?
Dan_Auito: that depends
johnmichael: Why do realtor's not like to give them out?
Dan_Auito: If the seller is upside down or just testing a high price then it is a waste of time. SCREEN
Dan_Auito: BECAUSE THEY WANT TO RE LIST
johnmichael: Now how would you like to get all the expireds you want without a realtor?
johnmichael: I have been using realtor.com since the late 90's for farming expireds
johnmichael: You sign up for their service it's free
johnmichael: You farm out your property by looking at active listings
johnmichael: You save any properties that look like a possible
johnmichael: 10 to 15 per week
johnmichael: you check back in a week you will see in red listing no longer available
Dan_Auito: maybe go to the library and look up six month prior ads and give them a buz
johnmichael: So how many listing where their last year
johnmichael: Over 42 Million Homes Listed For Sale
johnmichael: So how many did I say that sold last year?
Dan_Auito: 6 mil
johnmichael: So how many expireds do you have to work with?
Dan_Auito: 34.3 mil
Dan_Auito: plenty
johnmichael: So in our next chat I will share my letter that I send to get them to call?