Preston: Welcome to the REO rock star, this is Preston Ely or as some like to call me the King of Wholesaling and I’m here with Lee Kearney, the infamous rock star himself - say hello Lee.

Lee: Hello.

Preston: He's warming up in the background getting ready, shadow boxing. Together we have teamed up to create the world's first ever comprehensive step-by-step course on wholesaling REO bank owned foreclosure properties without any money, credit or experience.

We've created a system to do this en mass, en mass being Latin for by the crap-load. Here's a quote to get us started from Donald Trump:

As long as you're going to be thinking anyway think big

We intend to equip you to begin wholesaling, not just one or two REO houses a month that's boring, but rather 10-20. Lee just flipped 20 houses last month and you're about to learn how he did it.

He did it and you can do it. Believe me when I tell you that you can do this and you're going to do this, so CONGRATULATIONS on making the smart move to get this one of a kind insider training. There is simply nowhere else in the world that you can learn the things that we're about to teach you.

I cannot count on both hands, both sets of toes and a calculator how many gurus have come to Lee, the REO rock star, for consulting and training on his secret strategies for quick turning these bank owned properties. He is most certainly the guru's guru when it comes to this particular niche that you are now privileged to be involved in and dominate in your local area.

I personally get every new real estate investing course that comes out and everyone I know who’s successful does the exact same thing. I have yet to invest in a single course that has not paid me back many times over the price that I paid, even the bad ones.

I've got another quote here for you from Sir Claus Moser, an Oxford professor.

Education costs money but then again, so does ignorance

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Let's get going.

What are our goals for this whole thing here?

Our short-term goals for you are basically to learn how to flip an REO property with no money, credit or experience, just to teach you the process and equip you to know how to do this, to do your first deal.

What are our long-term goals?

Our main goal for this is to make you the next REO rock star in your particular city and if you do what we tell you to do that is exactly what will happen. So, muster up your faith, put a smile on, summon all your powers of hope and belief, expect the very best and let's make this thing happen together shall we?

First of all, let me remind you why you have chosen to learn to wholesale REOs. You’ve chosen to learn how to wholesale REOs because you want a lot of money and that is exactly what's about to happen, you are about to make a lot of money.

There are plenty of different ways to make a lot of money in real estate so why REOs?

The biggest reason is because with REOs you have an endless supply of inventory at your fingertips. For a wholesaler inventory is everything. Every big wholesaler that I know, including myself, has control of a lot of houses not just one or two.

You have two choices in real estate life- track down motivated sellers or make offers on bank owned houses. Motivated seller marketing is perfectly legit; we do it and you should do it. The negative is that you have to continually find more motivated sellers it's not a leveraged task, whereas with banks there's an endless supply of houses.

There will always be people not paying their mortgage payments. There will always be banks foreclosing on these people, so there will always be a steady supply of houses that banks don't want that you can pick up dirt cheap; especially right now.

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We're going to teach you how to do it step-by-step and we're going to do it with a six module process. Too many courses out there cram a bunch of information down your throat, too much information I might add, with no realistic plan of action. Figuring it all out and putting the pieces together is all left up to you and of course, this is not ideal.

What we're going to do is systematically walk you through the process from start to finish, step-by-step through a carefully crafted six module process and we recommend you go through one module a week.

At the end of every session you'll have homework assignments that you'll want to complete before moving on to the next session.

This will give you your very best chances for success. Aren't you tired of just going through courses, soaking it all in and not getting anywhere? That stops right now! Now is the time for action. Right now is the moment where things are going to start happening for you, it is your time.

Everyone needs to have their own defining moment where they put their foot down and say enough is enough and then with pig headed stubborn determination once and for all you make it happen. This is that time for you.

Mark this day on your calendar, because this is the day that everything changes for you. It's your turn to bring the checks in and show them off to everyone. It's your time to shine and you can do this. I'm telling you that you can do this.

Here's a brief overview of what we'll be doing during these six sessions.

Sessions one through five– we will cover the five stages before you become an REO rock star.

Session six is putting a rock star edge to your business, advanced techniques. A little more in detail - the five stages before you become an REO rock star.

1. Session one, which right now is how to get the REO agents in your corner.

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This may be the most important part of the whole process. REO real estate agents hold the keys to the treasure chest. They run the show. They determine who gets the good deals, who gets the bad deals and who gets no deals. If they don't like you they can easily lock you out of your whole local market there.

We're going to show you how to get these agents loving you so much that they will leave you in their wills.

2. Session two, we'll teach you how to evaluate the deals.

There are certain houses that we want and there are certain houses that we want to avoid like the plague. We'll go through the whole process with a fine toothed comb.

3. Session three, we'll go over how to structure your contracts with sellers and buyers.

With REOs this is an art form and it's an art form which you will learn at warp speed with the REO Rock Star at the helm.

4. Session four, we will cover how to sell your houses in three days or less.

Remember; we're not closing on these houses with our money, we're closing on them with our buyer's money, but we have to find these buyers fast. So, we'll give you the step-by-step action plan in detail.

5. Session five, we'll be going over the closing process, which is perhaps the most genius thing about this whole system.

No one else on earth teaches this or even knows about it. It is what makes it possible for you to do all of this with no money or credit.

6. Session six, we’ll bring it all together with some advanced techniques, action plans and self-development stuff that you need to know to even be capable of handling the type of money coming in that we're talking about here, over $100,000 a month.

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With that I'm going to turn things over to the REO Rock Star and we'll get going with the first session. Get your pens ready, take a lot of notes and get ready for the ride of your life. Lee, are you ready?

Lee: I'm ready, thanks Preston.

I'm excited to be here tonight and go through all this with you guys and to get going on teaching you how to get going, how to learn the tips, techniques and tricks to become an REO rock star because that's what we're all trying to do, right?

I promised you I'd get started with a deal that I'd done last week and every week we go through this and in every session we're going to go through a deal I just did and we're going to learn from that deal because that's what it's all about.

Even me at my stage, every time I do a deal I learn from it and that's what you need to do in your own business. You need to go back every month, analyze what you've done and figure out what you did good, what you did bad, improve what you did, throw away what you did bad and don't do it again.

Let's look at this deal real quick 5112 E. 20 h Avenue in Tampa; I made $11,000 on this house that I purchased for $19,000. That's a staggering percentage of profit on such a cheap house and to be honest with you a savvy investor probably would've only paid about $25,000 for this house, but I sold this house to a first time investor and that's what you need to do too.

That's a tip I want to leave you with for this particular session; look for first time investors. They will pay you a premium to be walked through buying a bank owned deal for the first time.

They're not as price savvy and you know what this guy got a great deal, even at $30,000 it's a great deal. It's not the best deal in town, but he was very happy with this deal. I held his hand, showed him how to rent out the house. I sent him right to the Section Eight Office to show him how to rent it and that's what you've got to do.

You can add stuff that doesn't take very much of your time, but has a huge effect on your buyers when they think you've gone the extra mile with them and for that I got a $5,000 premium and again made $11,000 on one house.

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Preston: Lee, what you're saying is, if you're willing to do a little bit of extra work by kind of hand holding a first time investor as opposed to not so much work with somebody who's bought 50 REO homes before that doesn’t need any help your effort will be rewarded by getting a premium, because you're basically walking them through the whole thing.

Lee: Absolutely.

Next, getting REO agents in your corner is what we're going to be talking about in this particular session. As Preston already alluded to this is key. This is the building block, the corner stone whatever you want to call it; it is the base that you work off of in becoming an REO rock star.

There's no way you're going to take over your market if you don't have good relationships with the agents in your particular area. You've got to get to know these people.

You've got to develop relationships with them and we're going to teach you step-by-step tonight how to go through this, how to make friends with these people and establish good working relationships that are beneficial for them and for you.

Let's go through the main points we'll be discussing in this particular session.

First of all, we want to ask the question, why are REO agents so important? We're going to address that question in this session and answer that for you.

I really want you to understand why these agents are so important. As Preston said they hold the keys to the treasure chest. You've got to get past these people; you've got to get in with these people in order to get the good cheap houses.

You've got to go through these agents they have this market on lockdown believe me.

I'm going to show you which REO agents to find and how to find them, that's key. We're going to understand the REO agent mindset.

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By understanding their mindset, putting yourself in their shoes, you're going to understand how you present yourself and how you cater to these agents because again; they're in the driver's seat. They've got all the power.

If you're talking about whose pimp hand is stronger - their pimp hand is way stronger than yours. You've got to realize that from day one.

Once you realize they're in charge you'll be able to structure the way you approach these people a lot differently and I'm going to be teaching you exactly how to present yourself and get right in with these agents.

Next, we’ll discuss the benefits of developing relationships with REO agents.

Once you develop these relationships your business gets easier. My business has gotten easier and your business is going to get easier too when you start to develop these relationships.

Preston: It's the same thing as when you're dealing with motivated sellers. The most important part of your business is being able to gain rapport and trust with these motivated sellers.

The difference is with each one of those sellers you have to start from square one, you have to start from scratch, building that rapport with them and gaining their trust and so on and so forth. That's a non-leveraged activity.

When you're dealing with these agents and gaining rapport and trust and so on and so forth you're doing it one time. You're building that trust and gaining that rapport once and then they're feeding you deals until they die.

Lee: That is correct. If you put the effort in on the front end the rewards keep on coming. That's what Preston is trying to drive home and that's what I'm trying to drive home for you in this particular session.

You put in the effort up front, you present yourself correctly, you start out on the right foot with the top agents in your area and the benefits keep on coming.

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At the end of this session, as we promised you we don’t want this thing sitting on your shelf, we're going to give you a game plan and some homework that you can get going on before you get onto the next session.

That way we'll be leading you step-by-step from knowing nothing or maybe knowing a little about REOs all the way to crushing the market in your particular city.

7. Why are REO agents so important?

That's what we'll be discussing tonight and you might laugh at the logo here, but you know what these people are VIPs. I learned that from day one; people are banging down their doors every single day because they hold the keys to the cheapest houses in your town, I guarantee you.

They know that, that's what's funny. I actually pulled up this article from last month and you can see what's going on here. As there's a new breed of investors out there like us, like you and like me, there's a new breed of REO agents. They're greedy and all they care about is money.

I don't mean that in a disrespectful way to any agents but you know what agents are people, they're like you and they're like me, we all care about money. That's why we're in real estate we're trying to make some money. Let's read this article here.

It says:

They’re guzzling pomegranate martinis, playing golf and indulging in spa therapies while eagerly discussing how much money is to be made from foreclosed properties that failed to sell and are taken back by the banks.

That's the kind of people you're dealing with these are REO agents; there's a few that have this market on lockdown. Again, I realize it’s early and that's why I'm sharing this with you in this first session, because I really want to drive that home. There are a few agents with a lot of power and they know it.

Once we understand that that will shape your thinking and how you deal with these people.

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Let's get into why these agents are so important. As Preston talked about earlier they're the gatekeepers to the bank's inventory. They hold the keys, you've got to understand that, you're not going to go around these guys, you're not going to go straight to the asset manager, they're very happy with the system they've set up.

These REO agents are efficient and shortly we’ll be looking at all the stuff that REO agents do. Again, you need to understand, to get yourself in their heads, understand where they're coming from and that way you'll know how to deal with people.

It's sales 101; you've got to understand your clients. In this case, the agent is your client because they're the ones holding the cheap properties and as much as you might think you're the client it's not that kind of relationship they're actually the client so you need to make them happy.

Also, Preston touched on this earlier, if agents like you, you will get the best deals. There's no ifs ands or buts about it, you will get the best deals and even preferential treatment.

There's a line where stuff is unethical and there's a line that's a gray area; you know what, agents that are on your side an in your corner and they’ll go all the way to the edge of that gray area, because they like you and that's key.

Preston: You know what I like about the way you do things Lee is that there are a lot of people in Tampa, all over the country that I know who wine and dine these realtors.

They give them club seats to NFL games and so on and so forth, all that stuff is a little illegal and to my knowledge you don't get into that too much. I don't really see you buying off realtors and that's one thing I really like about you.

I'm sure you'll touch on how you can compete with these other guys out there that are basically paying off realtors to get these deals.

Lee: That's absolutely true. The biggest mistake a lot of people make is they throw money, prizes or gifts at an agent before they've even done a deal with them.

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Do you know what? You've brought your own name down and made yourself worthless in an agent's eyes if you're trying to give him something before you've even done a deal.

When we get inside the agent's mindset how you impress an agent is by closing deals that's what they want you to do.

You know what, if they don't like you - here's the flip side of the coin in this - you'll either get no deals or you'll be the same as everybody else. That's why you signed up for this program; you don't want to be the same as everyone else, you want to be ahead of the pack, you want to be a rock star, you want to kill your market and you want to be ahead of everyone else.

You want to have the market on lockdown in your particular city just like the agents have the listings down in their particular city and that's the key. Therefore, you understand why these agents are so important and you understand that if they like you you're going to get the best deals.

Preston: Lee, I know we're going to cover the nuts and bolts tactics, tricks and techniques in this particular session, but as is usual with everything in vocation and every aspect of life, the most important thing comes down to a more fundamental foundational thing which is who are you as a person to begin with?

Just so you know, you all, in session six I'm going to go in-depth about what it takes to become the type of person who naturally attracts good things to themselves, who naturally makes these realtors like you without even doing anything.

Keep in mind that even though we're going to give you the surface level stuff right here, in week six I'm going to go deep, deeper than maybe you even want to go to help you develop a life transformation.

You’ll become such a powerful person that even if you never did any of what we're going to teach you in this first session realtors would still be throwing all their deals at you, just because they can tell that every other guy is a schmuck and you're the real deal.

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Lee: That's absolutely true. This stuff is not airy-fairy, it's not pie in the sky - if you don't like yourself first of all people aren't going to like you and that's just a basic fact.

Another basic fact, I mean I've learned this in so many different sales things I've been in and things I've learned from sales techniques. People evaluate you in the first 30 seconds and your first encounters with these agents, they're going to be sizing you up, so you have to make sure you're the kind of person that people want to deal with.

Let's look at this. Now we're going to get into which REO agents to find and that's really important. I'm sure some of you out there are just lost you're like where do I start, what do I do, where do I go and what direction do I go in? I don't want you to be lost and after tonight you're not going to be lost.

You're going to know which REO agents to find and you can do it. You can find these agents, it's easy and we're going to go through that in this particular session and show you how to do that.

Remember the 80/20 rule, which we alluded to this earlier, in that 80% of the REOs are controlled by 20% of the agents. In fact, this might be more like a 90/10. I would say 90% of the listings are controlled by 10% of the agents.

These agents are smart. They're efficient and they've got systems down. They move at a million miles an hour, so they're not going to have two hours to sit down for lunch with you, but they control the market and you've got to understand they're moving fast but they're very powerful.

Believe me they've established the same relationships with the asset managers, which are the people that feed them the deals. For an REO agent the asset manager, if you didn't know, is their client and that's the person they're trying to service and make happy.

Preston: Lee does the asset manager at the actual banks, the actual mortgage companies; do they ever deal directly with guys like us or are they specifically 100% of the time dealing with realtors?

Lee: That's a good question and a lot of people are probably wondering that, but again, it probably goes back to the importance of the REO agent. The quick answer to that is typically no.

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In a bulk buy situation they will deal directly with those buyers because they're worth dealing with but they don't have the time, the energy or the interest in working with a buyer who is going to be wasting their time on one or two houses that's not what they're interested in.

You've got to remember these asset managers are in charge of thousands and thousands of houses. They have a boss to answer to, too. They have to move a certain amount of assets each month.

And also, just to let you all in on a secret, a lot of times agents are financially rewarded by closing stuff by the end of the month and so are the asset managers above them. Once you understand the whole chain of events here and the supply chain, you've got to realize that the REO agents are at the front but there's a whole chain of people behind them.

Therefore, when you let the agent down you're letting down a whole bunch of people. That's why you can ruin relationships forever if you flat out treat people terrible and don't treat them like they need to be treated.

Preston: These asset managers at the banks and mortgage companies, they're not interested in onesie-twosie or even us who are doing 10-20 deals a month, they want to deal directly with a realtor who is going to get rid of these things in mass quantities at a time.

Lee: Absolutely. They're happy enough dealing with REO agents who are factories for moving REOs. They know this, they're experienced and we'll see some of the stuff that REO agents do before we get into understanding the mindset of an REO agent.

That will give you a greater appreciation and understanding for exactly what these agents do.

Again, to re-emphasize the point, I really want to drive this home; a small percent of agents control the REO market. Which REO agents do you find?

First of all, I'm going to say to you know all of the players in your area.

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You don't have to personally know them but you have to know of them. I want you to go out there and open the lines of communication with as many as possible, but we're not trying to be best friends with every agent we just want to focus on the top 10 agents and that's key.

To become an expert at something and how I became an expert was focusing; focusing on REOs, focusing on the top agents and that's what you need to do too.

Our goal, just as my goal was, I'm setting the same goal for you in this session to develop relationships with at least 5 of the top 10 agents.

Now, we’re going to get into how to find these REO agents.

The MLS is the best way to find REOs and I'll be honest with you, if you don't have MLS access this is going to be a lot more difficult.

Pete: And to find REO agents. It's not impossible; we're going to show you different ways to do it if you can't get access to the MLS.

But, the fact of the matter is, if you don't have it in you to get creative, dig deep, get out there, hustle, mix it up with some realtors and get MLS access based on the way we're going to show you how to get it and best present yourself to a realtor then there's a good chance you don't have what it takes to do this whole thing anyway.

I have a feeling that's not you that you do actually have what it takes to follow some simple directions, get out there and mix it up with some realtors, partner up with them and get access to the MLS.

I guess Lee what we're going to do is just run through at least the MLS system in our area and show them what to do once they get access to the MLS, right?

Lee: Absolutely.

Keep in mind, when we're accessing the MLS to find REO agents in your particular area, try to focus on the principles of what we're talking about here and not exactly in the same way I do it here in this MLS.

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Remember, there are many different MLS’ throughout the states and the different areas; even within different states have their own MLS but the principles are the same.

What you're trying to find out is who the top agents are. That's all we're trying to do in this particular session, trying to find out who the top agents are in your particular area based on the amount of active listings they have, the amount of stuff they currently have under contract and the amount of properties they've sold in the last 90 days.

Ninety days is key, because there is some turnover there are a lot of new REO agents coming on the market. I've seen it over the last six months, I've seen a couple agents pop up out of nowhere with 10 to 20 listings and I make sure to get right in with these people.

Do you know why? It's because they're fresh on the market and they're going to become friends with someone so why not me? It's the same thing for you out there.

When you see these new agents they haven't had 10 years dealing with investors, they're easy to get in with because they're fresh in REOs. They're looking for direction too. They're looking for the big investors, so they're easy to pick up and snag straight away, because they don't have 10 years under their belt dealing with the same people.

That's another tip to take away from this particular session. Keep your eyes open for these new players coming in as REOs. Let's have a look at what I did in trying to find the top REO agents here in the Tampa Bay area. We're searching here for a listing.

What I'm going to do is try to sort out actives, pending listings and stuff they've sold in the last 90 days. I know this is getting a little technical, but the whole point is you're trying to figure out who is doing the most volume. That's the basic principle of what we're trying to take away.

What we're going to do here is add some search criteria and again, your particular MLS may be slightly different, but the search criteria here is we're looking for bank owned deals.

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In our particular MLS they're listed under public remarks. So, we’ll go down here under public remarks, scroll down and say contains the word -(bank)-which are also called corporate listings. In your particular area they may list them slightly different so pay attention to how REO agents in your home town list REOs.

Preston: Lee, why don't we go ahead and tell these guys right now, since I know everyone right now is thinking and feeling a bit nervous at home man, I don't know how I'm going to get access to the MLS.

I can imagine how everyone is thinking to themselves how in the world am I going to get this? Realtors are the ones that also hold the keys to the MLS and so on and so forth. I didn't mean to interrupt you here, but why don't we talk to them briefly about what they're going to need to do to get access to the MLS.

Lee: I think it's a good time to deal with that because that may be a question that some of you have right now as you're listening to this. I wasn't always licensed but I got licensed because it became easier. I'll tell you what I did.

When I started out doing REOs I actually partnered up with an regular agent that wasn't making very much money and I told him I'd pay him a small fee every time I closed on a deal if he'd give me MLS access.

I'll tell you what was good about that; this guy wasn't making any money and now with me he was making extra money every month.

Also, I didn't pay him until I did a deal. I know for some of you out there your finances are limited that's why you want to do this program and why you're ready to hit the big leagues, but that's how you do it. That's the particular way I did it and that will work for you if you don't have MLS access.

Preston: You said you paid him a small fee, what was the small fee?

Lee: I think it was about $250 a deal. It wasn't a huge amount of money but again, the particular agent I partnered with didn't have a whole lot of listings and he was very happy to make an extra $500-$1,000 a month even starting out.

Preston: I don't care where you live; if you go outside and shake hands with about 10 people one of them is going to be a realtor. It's like the default thing you do when you get out of high school if you don't feel like going to college.

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Realtors are all over the place. You probably know a realtor. If you go to church you can be guaranteed you've got a million realtors there. If you're involved in any community stuff there's realtors all over the place.

Befriend these people. Pete and I, with Real Freedom Properties here in Tampa, we have MLS access from two or three different realtors in different counties and we don't pay fees to any of them. We don't run our deals through them. We don't give them anything.

Do you know why we have the MLS access? Simply because we're out there and we're making things happen, we're shaking people's hands, meeting people and befriending people. All these realtors are our friends. They're straight up realtors that we know who are our friends and they're like hey, yes I'll give you my code to the MLS access, who cares?

It may seem a little intimidating to you right now but trust me; you would be amazed at what you can get in life if you just ask. Do you agree?

Lee: Absolutely. If you're thinking big you're not going to be focused on such a thing as MLS access, you’ll be focused on flipping REOs and that's where your focus needs to be. You can get past this; we've given you a couple suggestions, so just put on your thinking cap.

Even if you just use these two suggestions we gave you tonight you'll have no problem getting MLS access. Anyway, that's the least of your worries so let's move on here.

I put in bank and corporate here. Then I move up to the City of Tampa and the status I'm looking for; I want to see what these people are doing over the last 90 days. We'll look at the active which is the stuff that's currently listed, so we'll look at the pending, the stuff that's under contract and the stuff that's sold.

You know what? You can see 81,835 listings and that's no good, so we’ll look at the last 90 days. On this particular MLS we look at the sold date which is the last 90 days. What we do is we've actually got 10,000 listings, but when we add in bank listings amazingly we got - it should be a couple hundred results here.

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It's going to be a lot less because we've sorted just for bank owned listings. Again, in your particular area the way you find bank owned listings is slightly different, but it's the same principle.

You want to find out how REO agents list these particular bank owned properties in your area and sort it by that. We can see 669 bank owned listings that are active, under contract or sold in the last 90 days. What you do then and what you're going to do as well is sort it by agent ID.

There are two different ways you can do this and again I don’t want to confuse you so just pay careful attention to what I'm saying. You can sort it by the office or you can sort it by the agent. The key to sorting by the office; you're going to find there are big heavy-hitters in your particular city that tend to congregate to the main offices.

They all like to hang out together and work in teams. So, you can sort it by office but for today's purposes we're actually going to sort it by agent code. Then we look at agent ID and sort by that.

Again, we're not going to actually take an hour to going through this, this is what you'll do at home; this is going to be part of your homework.

You're actually going to figure out as we look at the particular office ID, which is actually the agent ID which is right here, you'll figure out which agent has the most activity right now. That's the only thing I want you to take away from this particular session is to figure out which agents are doing the most volume.

I want you to take down the top 20, but put a star beside the top 10 because that'll be your hit list. You’ll see whose doing the most volume by combining active, pending and sold. I want you all to do this after this session upon gaining access to the MLS.

Again, if you've got a start at this first step of getting MLS access we've told you how to do that. If you've already got MLS access jump straight into this tomorrow or even tonight.

I'm sure some of you out there are just so excited you want to get going right now and that's great, because until you know who you're dealing with it's hard to go any further.

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Again, agents are the cornerstones and building blocks to flipping REOs in big numbers and that’s why we're doing this particular exercise.

Let's get back to the presentation here.

Preston: You just did a search for all the REOs in your city right?

Lee: That's right.

Preston: You've got all these different agent IDs here on the right and you're saying they would manually look through the IDs and see which ones come up the most?

Lee: Yes. In your particular MLS you may be able to– again I don’t want to get too technical here because we're trying to focus on the big picture– export it to an Excel file and sort it by agent ID, which will make it a lot quicker.

With our particular MLS you can't do that, so it may take you an hour, but you put in the work up front, an hour isn’t a lot of time when you'll start knocking down six figures a month.

Every new business requires focus, a little bit of effort and it'll get easier as you get to know exactly what you're doing.

Preston: The other thing I would suggest to everyone, depending on where you're starting, I know a lot of people are starting this REO business with no money in their pocket and that's fine, but you might possibly have some money you'd like to invest in your REO wholesaling business.

If you do you may want to consider hiring a virtual assistant. You can get virtual assistants from the Philippines for $2-$5 an hour. The cool thing about what we're going to be doing here is, you can already tell how detailed we're going to be getting in these videos, sessions and Power Points. You can literally take this, send it off, send the file, the CD or whatever to your assistant and say listen; here do what these guys just said.

Take all these numbers - if you don't feel like going through all these things - and I want you to tell me who the top 20 realtors in my area are. There are a

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million different things we're going to teach you how to do that you can outsource and delegate to someone else.

I'll tell you what, throughout my day every single day, I have trained myself that whenever I'm doing something myself personally, there's something always going on in my head and it's this question.

Is what I'm doing right now the best use of my time and could I get someone to do it for a lot cheaper? How could I get someone else to do this for me?

Always be thinking that about everything we're going to tell you to do. How can I get someone else to do this for me? How can I systemize this and delegate it?

Lee: That's absolutely right Preston but again, understanding that some of you are working with limited finances, we're starting at a level saying you can do this.

When we're thinking big here if you have money to invest in your business then start outsourcing this stuff straight away, because if you don't, as you start bringing in the big checks start thinking like Preston. In fact, you can start thinking tonight about what Preston just told you.

That's the key; what can I get other people to do? Some of this other stuff, I'll give you a sneak preview into session four. When you're looking for buyers - there's a particular way that I find buyers and I have a virtual assistant do that for me.

They scan through public records, look at the cash buyers that have bought from the previous month and send them a postcard. And guess what? That’s all done without me having to do any of the research or sending postcards and you can do that too, once you start thinking big and start focusing on the stuff that makes money.Going back to session one here, developing relationships with an REO agent is a good place to spend your time. Servicing these relationships will have benefits beyond belief. They'll keep feeding you houses and you'll have the advantage over your competition and it's huge.

Lee: The MLS is the best way but again, there may be some people that don't have MLS access; Internet. You can do a search on Google. In fact, let's get into Google

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right now and I'm going to show you a couple search criteria, how to find REO agents in your city.

Preston: Hey Lee, with the MLS, once they find those 20 MLS agents, obviously all they need to do is pull up those listings and the agents usually have their emails, cell phone numbers and everything will be right there, correct?

Lee: Correct. They post it all on there, so you can create your own little spreadsheet. That's going to be your hit list, that’s the people and you'll say these people are going to be my best friends, which is what I did starting out.

In fact, my first conversation with these people, Preston you know me, I walked right into some of their offices and said I'm going to be your biggest customer in two months.

Some of these agents looked at me like you are crazy, but they had a smile on their face too because the way I said it was not in an arrogant or condescending way it just showed a confidence on my part and that made a big impression with some of the agents I get in with.

Preston: You have to fake it till you make it. I'm telling you right now; when I first started in real estate I partnered up with somebody big in my area and he would have 20 houses on him at all times in inventory and when I would go to market his properties I would market them as my properties.

I would act like I was the biggest, baddest thing that ever hit the Earth. I would talk like I knew it all and acted like I'd been in the business forever. Everybody thought I was rich. Listen; it's kind of uncomfortable.

I'm going to admit to you right now it's not the most comfortable thing in the world to act like you are the pro, the expert, like you know what time it is when you're on the phone with these realtors and buyers; everyone but let me tell you this is the price you have to pay.

This is the hump you have to get over. These are your dues that must be paid to get forward. You are going to have to enter the discomfort zone. It is not fun and it's not comfortable but you have to get through it. You have to do this. Most people are too scared to get out there and just act like they are the balls, but that's what you've got to do.

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Everybody that I know who is super successful, have all done the same thing. They have all done this phenomenon called, ‘fake it till you make it’.

I was just having a conversation with one of the biggest wholesalers here in Tampa next to Lee and he was telling me about how - we were talking about some different subject and he was talking about yes Preston, you've got to fake it until you make it.

I'm like dude, I know. Everybody I know and I know that Lee will agree with me that's just what you've got to do. Fake it until you make it.

Lee: Let's not spend a lot of time on this, because I'm sure you know where I'm going with this. You're going to type in stuff like REO agent - let's just try Dallas. I'm not feeling lucky tonight actually I am, but I’m going to go with a Google search.

Right away you see The Waller Group, REO Properties of Texas, Lend 9-1-1, Dallas Foreclosures and REO Executives Incorporated. Anyway, without belaboring the point you can see the first search I pulled up in Google you've already got - it looks to me like you've got what, 10 right there?

Preston: Anyone smart enough to get on the front page of Google for words like that, those are going to be top players for sure wouldn't you agree Lee?

Lee: Absolutely. These people want to be found and the fact that they're spending marketing dollars getting on the front page of Google shows that they're serious about REOs.

I can almost bet that if you cross referenced this with the MLS these are the big players in Dallas. So get onto the Internet, Google and check out this stuff, because it’s another way to do it.

By the way, Preston did it this time but as you can see he's no better than me, so we're both back at the same place.

So we talked about the MLS and the Internet. If we're getting really old school, I'm just throwing it out there, I want to appeal to everybody so you

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could simply look in the yellow pages. Go to real estate and this may sound kind of Neolithic but it's really easy.

We're talking about getting other people to do something you can do - you can have someone a teenager, high school student, your son or daughter maybe it's your niece or nephew, someone who at least sounds like they can talk and have them call up every major brokerage in your area and ask two questions.

Do you specialize in REO properties? If the answer is no, click.

If they say yes, the next question is, how many listings do you have?

I know you can do that that's real simple. I bet that's going to take you or whoever you get to do it maybe a couple hours and I guarantee you if you look at your sheet of paper you'll see who has the most listings and you're done; it's as simple as that.

Driving around - the reason I mention this is because when you start becoming an expert in your area you're going to notice new agents pop up. You've been so busy dealing with the same 5 or 10 agents that are feeding you deals, in fact, every month or so I'll start to see a couple new signs.

I'll start to see signs from new agents that I don't recognize and that's when I go back. In fact, I have a virtual assistant that does that. They look at who the top agents are and they check on that every two months for me.

It doesn't cost very much money, I think it costs me about $100 every 60 days, they'll research who the top agents are, I'll make sure I'm always dealing with the top dogs and dealing with the big players in my town.

Again, you've got Fannie and Freddie, they're dumping a whole bunch of inventory on the market and they're trying to be politically correct but believe me, they prefer to deal with the same REO agents because they don't have to go through all this crap of trying to train an REO agent to list their properties and to sell them - they like to deal with the same people.

They don't mind these people having an area on lockdown. They don't mind it being almost a monopoly. They don't care if these REO agents are making a million dollars a year because they're efficient, they like dealing with them, they

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know the drill, they know how to clean out these houses and do all this other garbage that REO agents have to do.

In order to be politically correct because they're government agencies they have to hire some new REO agents, so you want to keep your eye out for that. That's not going to be your main goal; you want to get in with the solid players who are already there.

Networking- this is another key tip I'm going to give you in this particular session. REO agents that you get along with hang out with other REO agents you're going to get along with. That's something I learned early on.

In fact, a lot of these people go out together. They hang out, happy hour, because people like to hang out with other people they have stuff in common with. When they're all going through the same stuff they've got a lot in common and you'll find REO agents in your particular town like to hang out together.

If you get in with one agent and your personalities click you'll find that they network with other agents that have similar personalities. In offices where I had a little trouble getting in the door at first, I've used an agent I got along with who was friends with an agent in that particular office to get into that office.

That's key advice I want you to take away from this particular session. Networking is important, whether it's with agents, which we're talking about in this session or with buyers. Buyers hang out with other buyers and investors hang out with investors.

If you find a new first time investor I guarantee you in their circle of friends they have other friends that want to get into investing too. So you can literally go down the line and start picking up new buyers just from servicing one buyer well and taking care of him. It's the same way with agents. If you develop a good reputation then, when they're out at happy hour you're going to be the topic of conversation and not in a bad way.

They'll be like yes; I just did a deal with Lee, who closed five with me last month. He's a good guy, he's a good buyer and he's solid; I like him.

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Preston: What about when you're out at happy hour with them and buying them chilled patron shots?

Lee: I'm trying to be a little politically correct and not talk about that, but it's true, you are going to hang out with these agents but don't waste their time 9:00 to 5:00.

Ask them to hang out after hours and do stuff and that's okay. When they're kicking back you kick back with them, but these people are busy and we'll see later on in this session how busy these REO agents are.

You don't want to waste their time 9:00 to 5:00, you keep it to business. I'm also going to teach you the tips and techniques of how to be friendly, how to get in with these people and what to say to them, but you don't want to waste their time.

When they're kicking back at 6:00 or 7:00 o'clock you might want to do that once or twice a month just to get that extra relationship outside of work and get on a real personal basis with these people.

Now we're going to get into understanding the REO mindset. Before criticizing a man walk a mile in his shoes. That's what you've got to do, you've got to get inside these REO agents heads and understand what makes them tick.

What I'm going to be teaching you in this particular session is how to get inside their heads, understand what makes them tick, understand what gets them excited and once you walk in their shoes and truly understand what goes on in an REO agent's head then you'll be able to cater your particular self and your offering to what gets them going.

Preston: Too many people I think Lee go into a situation where they want to get something out of it and all they talk about is what's in it for them. They take no consideration into account for the other person's wants, needs and desires, when in reality that other person could care less about what you want.

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That REO agent could care less about the fact that you want to flip 10-20 houses a month. They could care less about the fact that you want their leads and you want them to give you all their houses.

One of the top marketing gurus in the nation, Dan Kennedy, says ‘when you want to convince, market to or sell a person something you want to begin your presentation by joining the conversation that's already going on in that person's mind.

The thing that's going on in the REO agent's mind is how they can sell more of their properties and make more money, which is something Lee is going to get more into right now.

Lee: Let's dive in and understand what REO agents do. I alluded to this earlier and I'm going to read this. I'm going to take a minute because I want you to fully understand how much REO agents do. Again, we're trying to put ourselves in their shoes, understand where they're coming from and by doing that we'll be ahead of our competition.

It's not me, me, me; you'll understand what gets them going, how they tick and you'll be putting yourself in their shoes. By doing that you're going to create a benefit for them and that's what Preston was talking about. It says here:

Most real estate agents sell homes for years without understanding exactly what an REO agent does. REO agent's responsibilities not only include listing homes for lenders, but also include the pre-listing duties necessary to prepare a foreclosed home for listing on the market.

They do a ton of work. Some of the typical duties of a typical REO agent beyond listing the home in the MLS include…

I put this out for you because I wanted to have it in black and white so you could understand all the stuff these people do.

They schedule trash outs, they clean out these houses when people leave junk and crap and everything behind.

They have to shut off all the utilities.

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(Winterize the place, de-winterize the places in a lot of places that get really cold in the winter). We've talked about the utilities, they actually have to shell out of their own pocket - did you know that Preston?

They have to shell out of their own pocket for water, electricity, put all this stuff up front, which is why the asset managers like to deal with the big players.

In fact, one of the top agents I deal with tells me at any given time she's got a quarter of a million dollars out in bills she owes, a quarter of a million dollars. There aren’t a lot of people that can float that.

Scheduling lawn maintenance, snow removal, negotiating the contract - anyway they're busy, that's the point.

In fact, I'm going to give you a couple quotes here from REO agents I know because before I put together this program I interviewed the agents I get along with the best, picked their brain a little bit and listened for maybe half an hour or so over lunch what they were saying.

Here are a couple quotes I want to share with you. I want to plant this deeply in your mind.

All I want to know is when you put a property under contract is that you close.

That's what they said to me. That's the thing they care about. They don't want to worry. They've got enough worries. They've got to worry about cleaning crap out of houses, being yelled at because someone stole all the wiring out of a house or vandalized it or broke windows and all this silly stuff.

You're the last thing they want to be worrying about. They want to know that you're solid and you're going to close.

Preston: You've got a lot of people out there that will put a bunch of houses under contract, go out, try to find buyers and never close on them. While that may be okay when you're dealing with motivated sellers in regular deals, which even

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then it's not really that okay, that's just something that you cannot do in this particular niche, right Lee?

Lee: Right and that's why we're recommending in our particular program here the first two or three deals you have a dummy buyer or a straw buyer that you put these particular contracts in that way you won't be tarnishing your name up front.

So, when you screw up on the first two or three deals, it's okay. We've even thought about that that's what I did. I made sure, I actually told three of my friends that didn't have a job at the time or a lot of money - I said listen if this deal closes I'll give you $500 if I can use your name.

To be honest with you I screwed up at the beginning. I put some stuff under contract I shouldn't have put under contract, but you know what my name wasn't black listed.

Again, you're probably questioning yourself that oh, that sounds kind of crazy but it's better to do that up front than to screw up your name from day one. That's just a sneak preview of when you're putting stuff under contract, a couple techniques there.

Another quote from a good friend of mine that’s an REO agent who said:

I'm impressed that you walked into our office the first time I met you.

Everyone was calling her on the phone, sending her 50 bazillion emails - I wasn't getting through to this particular lady so do you know what I did? I walked right into their office. I wasn't rude I just said hey, I need to see so-and-so.

She came down and I said I know you don't know me from a can of paint - that's exactly what I said to her - but in two months I will be your biggest customer. I said I'll be buying the most REOs off of you compared to anyone else.

I said I’m serious about this. I buy a lot of houses - again, it goes back to faking it till you make it. I don't care if you buy a lot of houses, that's what you're telling them.

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Preston: They're partnered up with us now Lee, so what you guys need to do is leverage what we're doing and our experience. You're just going to say listen, essentially, you and I are partnering up on this whole thing, we're walking you through it, my partners and I buy 20 houses a month.

Lee just did 20 houses in April. So, you're going to leverage our strength, our power, our experience and fake it till you make it, until it's real for you.

Lee: You're going to leverage our buying power to get you through these first couple of deals. The last quote I want to implant this in your mind. It says:

I hate when people put in offers, get them accepted, and then they decide to look at the property and back out.

Don't do this. Even if you've done this I'm going to teach you how not to say this to an agent so that they think you put something under contract blindly, went to have a look at it, saw that the thing was falling down and then decided to run a mile. You don't want to do that.

You want to make yourself appear genuine. Sometimes you are going to screw up but again, I'm going to teach you some of the techniques, when we get into contracts and the technicalities of trying to get out of contracts, the right things to say and the wrong things to say.

We’ll focus on the right things to say to agents. Again, further going through this whole aspect of understanding the REO agent's mindset; what makes them tick? Get the most amount of commission. That's right they're greedy. I'm sorry, they're people they're just like everybody else; money.

The first thing I'm going to tell you is don’t take their commission. I know what you're all saying - well I’m an agent. I'm sure some of you out there are agents and you're like I'm entitled to half of that - that's small thinking not big thinking.

Every time you take 3% of the deal you're taking money out of their pocket and believe me, I know so many REO agents at this stage and they all say the same thing. They don't like dealing with people who take THEIR MONEY and that's how they look at it. If they can get 6% and they only get 3% they look at it, not that they made 3%, but they lost out on 3%. A lot of these deals there's bonuses and all sorts of other crazy stuff for closing this stuff quickly.

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They can lose out on several thousand, up to $10,000, $15,000 or even $20,000 in some of the more expensive markets here if you take half their money. You've got to think big. Don't think short-term and don't take an REO agent's commission.

Preston: You're speaking directly to the people listening right now who are realtors, correct?

Lee: Yes, specifically to them, but also don't use a friend of yours and say hey, I'll put in the offers for you, you don't even have to pay me - I'll get half your commission; bad idea.

Again, in future modules we’ll teach you how to have agents work for you, but not take the REO agent's commission. You're going to have to cut them out of your profit.

I know that sounds ludicrous compared to what you may have learned before, but I personally have agents that work for me put in offers, don't collect any commission, do the work for me and then I pay them out of the profit.

The REO agent - they're the kingpin, the head honcho, they get to keep all their money and we get a slightly smaller share of the pie on the back end and we’ll show you how to recruit these kinds of agents in future modules.

The second thing that's most important to REO agents behind money, but also goes along with making money is keeping the asset manager happy. That is top of their list. The asset manager is their bread and butter and that's their livelihood, that's the person who can cut off their deals in one day.

If they screw up bad enough, if one asset manager cuts them off they could be in big trouble, so keep that in mind. When you make an agent look stupid in front of their asset manager it trickles down the line. You could do yourself irreparable damage.

Another thing that's really important to REO agents; they want to have properties close the very first time they go under contract. They've told me this, when stuff goes in and out of contract three, four and five times and people keep wasting their time; they hate it, don’t do it.

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They want to have as few headaches as possible during the closing period. Even if you are friends with these agents again, don't waste their time 9:00 to 5:00 they're busy. They don't want you calling them everyday saying what about the electricity? What about the water? What about a broken window, if a window is broken its $50 go fix the window yourself.

You don’t need to waste their time with silly stuff like this. I don’t and you shouldn't either. You'll learn this tonight so you don't have to learn it the hard way like I did.

Have properties close on time. Again, we're going to get into details when we're talking about the contract stage. When I say on time it's okay if you can't close on the first closing date once you let them know in time. Don’t get to a closing date, don't close and then ask for an extension.

If you need the extension I'm going to teach you at what point it's acceptable to ask for an extension and not make the REO agent or the asset manager mad. I'm going to give you several reasons to ask for an extension that are legitimate reasons and will not piss anyone off, believe me.

So we want to understand the REO agent. We've looked at what's important to them and what exactly they’re looking for? When they're out there looking for their VIP buyers, the people they want to deal with; when they're out there looking for people like you because you're going to be that person, here's what they're looking for.

They want buyers that don't have agents. Even if you are an agent or you have an agent they don't want you to take any of their money, that's key. We talked about this; that's what REO agents are looking for.

Preston: Would they rather deal with an agent/buyer? An agent who is saying hey you can have my commission?

Lee: They like that. I get a lot of good feedback from the particular agents I deal with. They say they prefer dealing with me over an investor because I am an agent and they know that I'm a solid person because I'm an agent. You've got to go through a lot of training to be an agent and that in itself creates a seriousness about you.

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Preston: We're going to talk a little bit at the end of this session I believe about whether or not everybody listening here should become an agent, correct?

Lee: That's correct too. Believe me, I don’t go out showing houses on the weekend, but I'm an agent for a purpose. It definitely gives me an advantage and makes things easier and that's what we're talking about is making things easier.

Another thing REO agents are looking for are buyers that don't make them look stupid in the eyes of the asset manager. They want buyers that actually close. Believe it or not a lot of people tie up stuff, don't close, waste their time, and don't even call the agents to tell them they're not closing, they just don't close. That's a big no-no.

They want buyers that are low maintenance and hassle free. That's what you're going to present yourself as, the buyer who is low maintenance and no hassle. They want buyers that close on time. That's what they're looking for.

Now we’re going to get into the section on how to present yourself.

Preston: Armani suits.

Lee: Armani suits?

Preston: Gucci shoes.

Lee: Gucci shoes - Preston is on a roll. I thought he was just going to keep on going there. Seriously though, this is key, I talked about it earlier. People size you up in the first…

Preston: I was kidding by the way. The rock star here wears jean shorts as if he's still in the '80's, I'm not really sure about those and a cut off shirt I've seen him wear before.

Lee: I do. In fact, you know what? Maybe not my very first meeting but now with a lot of the agents I work with they don't care what I'm dressed like, they know me. In fact, after we did that first presentation I had an REO agent call me and said - I had some guy call me and say what's this guy's secret? How does he do this?

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Do you know what the agent told me? He said I don’t care, I get my commission, Lee closes every single time and I don't really care what he does with the property. Believe me they don't care if you're flipping these things. I promise and can guarantee you; I know for a fact that they've told me they don't care.

Preston: All they care about is that it closes.

Lee: That's it, period.

Let's get into how to present yourself. Now that we’ve spent so much time understanding the REO agents, this is how you're going to present yourself.

First and foremost friendly, people like to deal with nice people it goes back to sales 101.

Preston: Smile.

Lee: That's key. I'm not a huge smiler, but you know what in business I'm a great smiler; you have to be, it's important. That's what we were talking about earlier you've got to get out of your comfort zone sometimes. You've got to do things that are not natural to you because that's what attracts people. People are attracted to positive happy people.

Preston: Here's a quick tip, if you're about to call one of these realtors on the phone do 50 jumping jacks. Lee was just doing jumping jacks before we started this session and I do that often. Do 50 jumping jacks and when you call smile from ear to ear.

I promise you that you have a 100% better chance of connecting with that person than if you hadn't done it; just a quick tip.

Lee: You're absolutely right. So you're friendly, people have sized you up, they're happy, they’re positive, they can see that you like yourself and they're going to like you.

Next you want to be serious. I know we're beating this one to death tonight Preston but it's true - you've got to be serious. You've got to show them you're a player, you're not messing around, you're not Joe off the street; you are a person they're going to want to deal with.

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Preston: This all comes down to faith in you. You'll want to present yourself to these people as if you've bought and sold 500 houses. It doesn't matter whether you have or not they should sense that you have.

In session six we’re going to go thoroughly in-depth with how to become that type of person that when you look somebody in the eye and you tell them listen; I know you don't know me but I'm going to become your biggest customer within two months.

I'm going to buy more REOs from you than anybody else in this entire city, so I wanted to meet you now to see what I could do to make your life better and take some of these properties off your hands. For them to sense your power, feel your presence and be like dang, this guy is serious.

Don't worry, we'll get you there.

Lee: I'm not talking out of a book this is exactly what I did when I started out. Again, this goes right along with being confident.

You're friendly and they like you. They see that you're serious but they also see that you're confident and your confidence rubs off on them. They're like man, if he's confident in himself, believe it or not people will extract the confidence that you give them about yourself right there and then.

They want to know that you're reliable. You're going to present yourself straight away that I close on properties. I don’t mess agents around. When I put a property under contract I'm going to buy that property.

Next week when we get into teaching you how to evaluate the deals you're going to know when you've got an offer accepted that it's the right property in the right place at the right price. Therefore, you’ll have 100% confidence that you've bought the right property and you will close on that.

The fact that you've given yourself 30 days, when I'm going to be teaching you how to sell houses in three days or less, you'll have super confidence even if you don't have it right now you will have that confidence. I'm telling you, if you pay attention to everything I'm teaching you, you will have the confidence that you will be a reliable person for them to deal with.

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Also you want to set your expectations up front. You're not giving them all the commission for the good of your health and you want to let them know that in a nice way, in a professional way and in a way that they know you're serious.

It goes back to the seriousness. I set my expectations up front. I let them know that I was going to be their biggest client and buy the most REOs over the next couple of months but I also told them, I said the fact that I'm going to be your biggest customer; I want to have good service from you.

I want to know about these properties up front - I want to be ahead of the pack and you don't use like fraud, illegal or do crazy things, you want to use words that you want to have an advantage. You want to be ahead of the pack that's the kind of language you use.

They know what you're talking about. When we get into some of the benefits here when you really get in with an agent, some of the benefits - you're going to express to them some of the things you desire, which is not be the same as everybody else.

I let every agent I know the first time I met them, what I expected out of them by the fact that I was giving them all of the commission and that's what you're doing, you're giving them all of the commission, because a lot of people want to take half of it.

Remember this is key; you are not going to be best friends with everyone. You've got to understand you don't want to beat some of these relationships to death.

For example, there's one agent here in town, no names mentioned - the guy is 65 years old. He's been doing REOs for 25 years the exact same way. He doesn’t care if you're the President, he lists the property, takes the offers and if the bank comes back for what's called a highest and best and they get into a bidding war he'll just keep taking the offers until the bank says they don't want anymore offers.

He doesn’t care who you are. It's the same; he will not give you a property before it gets listed. He will not tell you what the other prices are, he won’t tell

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you anything, so I put in the offers, but I don't focus my time on developing a relationship with that man.

He does not value relationships and it will not benefit me one iota if I spend the next three months calling him every single day and taking him out to lunch, because he’ll continue doing things this same way.

Understand this principle; you're not going to be best friends with everyone. You have to focus on the people you are developing relationships with and make sure that you make those relationships stronger and then you'll be getting more and more properties from the top 5 to 10 people you're going to be dealing with on a regular basis.

Let's get into the benefits of developing relationships with REO agents. The benefits are huge and we've talked about this throughout the entire session.

The benefits keep on coming when you get in with an REO agent. It's not just on one deal; you go from developing and establishing a relationship to simply servicing a relationship and I can tell you, it doesn't matter what business you're in, servicing a relationship is a lot easier.

You're over the hump. It's a lot easier to service a relationship than to start a relationship and that's what I do with these agents. I go out to lunch with a lot of them maybe once a month. I give them a call once a week to check in, see how they're doing and see how their family is doing.

Things that show you're a real person that cares, you're a nice person and if you're not a nice person– which we’ll get into in week six– you need to be a nice person.

Go back to the drawing board and analyze yourself, because not only are you not going to be an REO rock star you're not going to be a rock star in any aspect of your life if you're not the kind of person that attracts other people.

Let's look at some of the benefits of developing relationships with REO agents. You are ahead of your competition. Let's talk about how you're ahead of your competition. You get properties before they hit the market. I do and you will too.

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You're going to get the inside track in a bidding war. Sometimes the agents have to take the offers when multiple offers come in but you know what, an agent that likes you will tell you where you need to be to get the property.

Sometimes the stuff is listed so low, the banks purposely do this it's funny; they'll list this stuff maybe at 1/3 of what it's actually worth because they want a crazy bidding war. So, even if you're buying it at double what it was listed for it's still a great deal.

An agent who you've developed a relationship with will let you know where you need to be in order to get that property and that's a huge benefit when you start developing these relationships.

Also you're going to have less work to do. Again, we're talking about getting over the hump. More deals are going to start coming to you rather than you chasing deals. The less time you spend chasing deals means the more free time you're going to have.

I have more free time every month I do REOs because I have more agents bringing me good deals rather than me sitting on the MLS. In fact, when we talk about analyzing the deals next week I'm going to show you my own personal system.

I actually don't get on the MLS unless all of the new deals aren’t enough to keep me busy, then I'll actually get on the MLS. I have a pre-programmed system that sends just the properties I want straight to my email so I don't have to get on the MLS.

Again, when you have agents working with you instead of working against you you're going to have more deals come straight to you and the percentage of deals you're going to close on is a lot higher because they're only going to bring you good deals.

Agents are not stupid. REO agents know what a good deal is, what a bad deal is and the agents I deal with and the agents you're going to be dealing with are only going to bring you the good deals, because they won’t want to waste your time either, it's reciprocation.

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You're not wasting their time so they're not going to waste your time. You're giving them all the commission and always closing, so they’ll give you good deals. That's the basic principle in life, the principle of reciprocation. You're going to find this as you start doing multiple deals with the same agents.

We told you at the end of every session we're going to give you a specific game plan and homework because we want you to achieve your goals.

We want you to flip an REO. Not only do we want you to flip one or two REOs, but we want you to cross your market. We want you to be a super star. We want you to realize your financial dreams. We want you to realize your free time and all the benefits of having time and money.

We want you to succeed. Let's look at the specific game plan for this particular session. I want everyone out there to research - we've taught you how to do that - call the top 10 agents and tell them you'd like to deal direct.

When I say deal direct you're not going to take their commission, you'd like to deal directly with them, let them have all the commission and you want to express that to them using some of the techniques and tips that we've already talked about in how to present yourself with these particular agents.

In fact, you want to set up a lunch or a quick meeting at their office because they're busy; they're not going to want to drive all over town, you've got to cater to them. Have a quick meeting at their office for a face-to-face, that's key.

When you shake someone's hand they look you in the eye and you look them in the eye it's huge.

Preston: What should they say when they sit down with this realtor and the realtor says so and so, how do you plan on closing on these properties? Then they give them the list of conventional mortgage, cash; how are you going to close? What do they say?

Lee: I'm a cash buyer. Say I have a large line of credit established with a reputable hard money lender. I've been dealing with them for a long time and I have an open line of credit. That's the exact words I use - an open line of credit.

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Preston: In reality you're getting a proof of funds letter along with this program. So, what you're saying there is not a lie. If you actually did want to close we have a friend who will wire you the money if you really want to do that so that's not a lie at all. You do have the cash to close.

Lee: In fact, in some of our advanced techniques we're going to be teaching you that there are some deals that will benefit you to actually close on them for a day or maybe two days and we're going to show you how to do that.

In week six we'll teach you some of the advanced techniques for these particular deals where you can make a lot of money by closing on the particular property. That's all ahead of us so let's not get ahead of ourselves.

The point is you want to tell these agents when you first meet them - first of all, it goes back to what's in it for them? You want to compliment an agent. When you first meet an agent, when you go out and do this, make sure you compliment them and let them know why you wanted to meet with them.

Say something along the lines of…?

I wanted to meet with you because I can tell you're a big player in this town, I'm a winner and I like to deal with winners. I learned early on in real estate that winners hang out with winners and that's why I want to hang out with you. We're going to do a lot of business together and I'm excited about it.

That's exactly the conversation I had with agents when I first met them and that's the same conversation I want you to have this week when you go out and speak to some of these agents, whether it’s on the phone or face-to-face, which is preferable.

In fact, in our forms and contracts I've included an email which is an introduction email which describes your business model, how you don't take their commission and how you're a serious buyer which will be included when you email an agent for the first time.

Preston: When you have a face to face meeting, whether it's at their office or at lunch, etc.

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What are some things that they should talk with this realtor about specifically?

What questions should they ask them? What should they tell the realtor about themselves? What should they not tell them? What does that conversation look like?

Lee: That conversation is going to look like you're a serious buyer. You want to start out the conversation with why you're meeting with them, complimenting them, telling them you know they do a lot of deals, you've researched them, done your homework, you're a serious buyer too and it's a good match.

That's what you really want to focus on. You want to find stuff in common with them. Maybe you have a sport in common with them or a hobby, just find a common thread so you can start off on the same page with them outside of business and that will help too.

If you don't have that, you want to focus on the attributes that you bring to the table that will benefit them, because again, you talking for 30 minutes about yourself is not going to get you in with an REO agent.

Telling them what you do and following up with how it's going to benefit them that will get you somewhere and that's the conversation you want to have. You always want to go back to how will this benefit them? I'm a serious buyer which means you know when you put a property under contract with me I’m going to close.

In fact, when I put a contract on a property you know it's going to close on time and that means you won't be wondering when stuff is going to close. When you put a property under contract with me you don't have to worry about all these other people out there because I am a 100% closer. Reassurance is what you want to give them.

Preston: Here's what I suggest you do. There's a good chance that if you're sitting down talking with this realtor and they’re truly a hustler, a big timer that they’ll be interviewing you a lot. They’re going to want to know how many houses you’ve bought and sold and how many rental properties do you have?

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There's a chance that they may try to feel you out to see what you're really made of. I'm telling you, here is exactly how you would respond to those questions. I would say I am mainly a wholesaler. Most of these deals we will be wholesaling and we do about 10-20 a month.

If he asks you how many you've done period I would say over 250. A lot of you listening right now are saying I knew Preston was a total lying scumbag, he's telling us to lie, but I'm not telling you to lie. What I'm telling you to do is for you to begin associating with the rock star and the king of wholesaling.

You are a part of our network. You are a part of our team right now, a member of our society, so when I talk with people like this I always use the term 'we'. If somebody asks you how many of these are you doing a month, I say well we do about 10-20.

Who is we? We is you and me. We, is you and the rock star. Leverage what we have managed to do, what the rock star has managed to do. Be vague, be general and don't get into specifics.

Do you agree with what I'm saying here Lee?

Lee: I do. Right now you don’t have a pot to piss in, you haven't done 250 deals, so you have to leverage the people you know that are doing deals. Again, my partners and I have done 10-20 deals. We’re wholesalers.

When they say you're a wholesaler? This is what you say and where you empower the agent, you say, you and I both know in this particular market it's not very smart to be hanging onto properties so that's why we wholesale everything that we buy. That is a great answer when they ask you why you're a wholesaler.

Going back to the question of getting licensed. We touched on this area earlier; you'll have to analyze this for yourself.

Do you need to get licensed? No. Is it going to make things easier? Yes.

Do you want to become a rock star? I know you all do.

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If you want to make things easier on yourself getting licensed is something you're going to want to consider very seriously, because it'll make your life easier as an REO rock star.

Preston: We definitely need to reiterate that it is not necessary, it is by no means a requirement, it will by no means hinder your success if you don't, it’s just simply our suggestion to you to make your life easier it's not that hard to get licensed. It took me literally two weeks to go get licensed. I took a two week class, took the test and got it, bam it's done. It's stupid.

We're just suggesting you do it. Can you do it without it? Absolutely.

Lee are we going to get into how to search for deals on the MLS? Are we doing that at all ever?

Lee: Next week.

Preston: Next week. What we're also going to cover next week is, if you don't have the MLS and if you don't have any friends that are realtors which I find hard to believe, but if you don't have a friends period than it may take a little time to get a realtor to warm up enough with them to give them access to the MLS.

When would be a good time to discuss what to do if you simply can't get on the MLS and look for deals? I think we're going to do that next session, correct?

Lee: We've talked about that tonight. Really, if you can't get MLS access just find a loser agent and I mean that in no disrespectful way, but find an agent that's not making very much money. Tell them if they help you find deals you'll pay them 25% of the deal, $500. That's the only way, you've got to find someone with MLS access, it's no that hard.

Preston: Maybe you would just ask that realtor say listen, I'd like to find out about the REO listings the second they come out.

Lee: Yeah, when we get into finding the deals next week I'm going to show you the principle of how I set up a pre-programmed search and once a realtor

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sets that up for you the emails just come to your inbox, so you don't need to even get on the MLS.

That's true, if they don’t feel comfortable right out of the gate giving you open access you don't need it, I just check my email. It's very rare I actually get on the MLS.

Preston: You can work with these realtors to get set up on their auto thing so the realtors don't even physically bring you the properties it's on autopilot. They set up their MLS to automatically email you the REOs the day they come out.

Close on a few deals, build up a little rapport, trust and track record with a realtor and say listen, instead of bugging you so often for all this stuff, why don't you just give me your access code so we can make life easy?

I'll be able to triple my volume, which will just make you more money. You've got to always keep in mind when you're talking to realtors and you're talking to buyers nobody cares what you want.

You need to put everything in the perspective of, what I really want is for this guy to give me his access code to the MLS, but what's in it for him so I can give him a reason? You will not catch me dead asking for anything from someone without giving them a benefit.

If I'm saying to a realtor listen, I've closed three deals with you do you want to just give me your access code to your MLS so I can stop bugging you for this info? By you doing that I'll be able to triple the amount of volume I'll be able to do and you'll make three times the money.

What did I just do there? I gave him a really good reason why he should give me that access code. In marketing that's called reason why marketing, it's a specific way of marketing that they've done experiments on.

They actually did this experiment one time where they had this line of people at a copy machine. The first experiment was go up and butt in front of the person at the front of the line and say do you mind if I skip ahead of you in line and then that was just it. Like 25% of people let them cut.

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They sent up another guy who was instructed to say do you mind if I cut in front of you because I'm in a really big hurry? Seventy five percent of the people let him cut simply because he gave them a reason.

They did another experiment where they sent a guy up to the front of the line who said do you mind if I cut in front of you because I need to make a copy?

Basically, no reason at all but just because they used the word because - the word because is magical. When you talk to that realtor - do you mind just giving me access to the MLS because I need it? That is so much more powerful than just saying do you mind if I get MLS access?

To add to that, do you mind if I can just get your MLS access code because it will allow me to make you three times the money you're making right now? Always give people a reason why they should do something for you.

Lee: I've already had lots of emails asking about proof of funds, asking about what do I say and what do I do - focus on the bigger goal. The bigger goal is learning how to flip lots and lots of houses.

You've got to put the things that are important in the front of your mind and put the things that are not important as things you need to get past. Don't view them as obstacles in your mind, view them as how am I going to get around this?

That's always your first question, not oh man, I've got to get around this - it's how am I going to get around it? That needs to be your attitude and your mindset from week one, from session one and moving forward.

Study bonus number four that we’ve given you, we gave this to you for a reason. I want you too if you've got the time and a re serious about this, is to look at the four video series on insider deal evaluation strategies.

That will help us in moving into session two; understanding the deals, how to evaluate them and how to figure out how not to buy the world, but how to buy the properties that are going to make you money. That's exactly what we'll be talking about is evaluating the deals and figuring these things out.

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We've got to know that. We've talked about the agents, you now feel comfortable dealing with them, how you're going to move forward and deal them. We're also going to teach you how to evaluate the houses and drive home, how to evaluate the deals in your particular city.

I'm going to leave you with this quote. You may have heard this but I love this quote, because it applies to every one listening to tonight.

Try to be fearful when others are greedy and greedy when others are fearful. Right now there is blood in the streets, the banks are running, people are running away from their houses hence the banks are getting them back.

This is the biggest opportunity we've ever seen in real estate and I guarantee you people like Warren Buffet said this for a reason. In one of his other quotes he says it doesn’t matter if its stocks or socks - he views everything the same and this quote applies directly to REOs right now.

People are very fearful about property and they're giving the stuff away. This is the time for you to jump on board, get greedy. Make your money. You're going to make more money easier now in real estate than you've ever been able to before.

Preston: If you're listening to this at a later date, the market has quieted down and things aren't so chaotic then never mind that, but it doesn't matter. Flipping and wholesaling, REOs work no matter what the heck the market is doing. At the time of this recording the market is in chaos but it doesn’t matter.

You can make money flipping and wholesaling REOs no matter what.

We keep mentioning next week - we want you to take a week in between these lessons. Don't just rush through all this. This isn’t something for you to devour and sit there and do nothing.

Go through one module at a time and put in place the action plan that we're giving you this homework in between sessions.

Knock these things out. Go down the list, do every single one and let's make this thing happen together. We will see you in the next session.

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