For us real estate guys and Ron LeGrand fans, this is a very cool scene of four ladies churning out yellow letters. Nicknamed, “The Blue Crew,” these ladies are helping some of Ron’s newest students jump start their real estate careers.
As of the writing of this article, it has been exactly one week since I started mentoring Eric Weisgarber, Mike Mathe and Chris Fleming (business partners) out of Oklahoma. They read all of Ron’s books and listened to his CDs weeks in advance of mentoring, and came totally prepared and ready to jump in with both feet. They had already dropped 500 yellow letters to pre-foreclosures, as well as houses valued between 100-500K with mortgages taken out between 2004-2007. Why this criteria for yellow letters? That’s somewhat rhetorical. Those were booming years when loans were taken out at peak values, and in many cases are still overleveraged today, making great ACTS candidates. The result of their efforts: they came ready to our first phone call with several leads to discuss.
About an hour after that first call, I received an email from Eric with a potentially hot lead. The seller owed approx $74K, was 4-5 months behind, and had monthly payments of about $700. So, it was going to take roughly $4,000 to catch the back-payments current. The ARV was $125K, and the seller was willing to do whatever he could to avoid foreclosure.
I had Eric, Mike and Chris propose to the seller to catch his back-payments current, begin making the payments for him, be fully responsible for all maintenance, repair and upkeep of the home, with the understanding they would get his mortgage cashed out sometime in the foreseeable future. This would require the seller to leave the mortgage in his name, and transfer the deed into a land trust controlled by the guys. In our world, it is called a “subject-to”, and these are not always the easiest of deals to get done. But, they had the chutzpah to throw it out there, and after the weekend of thinking it over, the seller accepted their offer. And so, they got their first deal together!
They asked for a 45 day window to close, with the intent to find a tenant-buyer before then, and use the tenant-buyer’s deposit to catch up the back payments (leaving them with no out of pocket costs, including the cost to transfer the deed). The monthly lease payment to them should be around $1000, netting them a few hundred dollars each month in positive cash flow. They could receive a larger deposit, which is all profit to them, but the real upside lies in the equity they created. They stand to make a hefty profit when they get their buyer traditionally financed. They did all of this with no money out of their pockets, on their first deal……..and with the help of the “Blue Crew.”
GREAT JOB ERIC, MIKE AND CHRIS……..AND GREAT JOB “BLUE CREW!!”
So, here is the moral to this story: Eric, Mike and Chris came prepared and ready to make some money, have some fun, and make their real estate business a success. They came with that mindset, and came determined. They were/are willing to work hard and do what it takes to succeed, and I can tell you beyond a shadow of a doubt……….they will do just that. I can guarantee you that. I am honored and excited to be their mentor, and am looking forward to our time together. Attitudes and work ethics like theirs make my job fun, and helping jump start their real estate careers is very gratifying.
If you are willing to do what it takes, to work hard, to be tenacious, to have a mindset that failure is not an option, then ANY of the mentors under Ron LeGrand can and will guide you to success and profitability.
The question is…….are you willing to do what these guys did? Are you willing to do what it takes to succeed? If you are, and you have a mentor to guide you, get ready to enjoy the ride, because I can assure you it is going to be a fun and exciting one!
Stay tuned for an update as this deal could easily net $30K – $40K!
Its great to see the behind the scenes scene. Thank you blue crew. I truly appreciate all your hard work!
I can’t connect all the dots. What did the Blue Crew do to help those 3 guys? And who compensated them, how and how much? And why did the 3 guys work together? What did each bring to the “party”, i.e., contribute to the deal, especially since it required no cash out of their pockets? Did they split the profits 3 ways, equally? How do people make such arrangements to everyone’s satisfaction?
Hah! The blue crew. That’s hilarious (do they KNOW they’re called that?)
In any case, the lesson I learned here was, besides taking action, to target what you’re looking for. In their case, ACTS deals, so they went for the overleveraged mortgages.
Smart, smart, smart.
Good Stuff, I just wish the lists around me were accurate. the County had some hiccups, with technology and wasn’t getting up -to-date info our, so info was wrong. They are correcting it so I really like the idea of focusing on 2004-2007. Good job guys, hopefully you get a T/B to stay there for long time. not only are you gettin Cash flow with instant equity, you’re paying down the mortgage too with little down…nice
Anybody know who the mentor is?
The beauty of this marketing campaign is that there is no competition!
Thanks for the tidbit about the years. I will be adjusting my marketing list. Blue Crew…good term.
I’m new to this club and I’m loving it. Learning quite a lot.
I’m curious how Eric, Mike and Chris were able to get the list of homes sold in 2004-2007 time frame. Any insight would be appreciated.
Any list broker will be able to give you a list with the criteria that this group specified.
Have you been to Quick Start? A lot of what you’ll see in the forum will seem like unrelated good ideas, but they will gel into a coordinated plan once you go to Quick Start. And yes, mentoring is worth the investment, in my humble opinion.
Good Luck to you!
Alan
After listening to Ron’s monthly calls, the list preferences have changed. I know top of the lists include probates, expired, out of state, absentee owners. Is there an order of preference for these? Are there other lists we should consider?