Untitled - Jay Morrison Academy

158 Pages·2014·1.23 MB·English

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Disclaimer

This textbook is provided as part of a Jay Morrison Academy LLC course, and is subject to the Terms of
Service & Use, including all applicable disclaimers concerning legal terminology, forms, and real estate
agent or brokerage advice. This textbook is informational only, and does not represent advice as part of
a relationship with a licensed professional, nor does it establish a professional relationship between the
user and the copyright owner.

Copyright © 2014 by Jermaine Morrison. All rights reserved. Digitally compiled and distributed in the United States of America.
Except as permitted under the United States Copyright Act of 1976, and subject to the Terms of Service and Use in effect and
applicable to its distribution, no part of this publication may be reproduced or distributed in any form or by any means, or
stored in a database or retrieval system, without the prior written permission of the publisher.
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Table of Contents
Semester One: Wholesaling ...................................................................................................................... 10
Introduction .......................................................................................................................................... 10
Semester 1: Lesson One – Introduction to Wholesaling ........................................................................... 11
Introduction .......................................................................................................................................... 11
Reasons to Become Wholesaler ............................................................................................................ 11
Advantages of Being a Wholesaler........................................................................................................ 12
Formula for Success .............................................................................................................................. 12
Wholesaler versus Broker ..................................................................................................................... 13
Wholesaling Versus Flipping ................................................................................................................. 13
Key Points ............................................................................................................................................. 14
Introduction to Wholesaling Activity: ................................................................................................... 15
Semester 1: Lesson Two – Building Your Brand & Business ...................................................................... 16
Introduction .......................................................................................................................................... 16
Brand .................................................................................................................................................... 16
Business ................................................................................................................................................ 17
Naming the Business ............................................................................................................................. 17
Building your Team ............................................................................................................................... 17
Key Points ............................................................................................................................................. 19
Brand Activity:....................................................................................................................................... 20
Business Structure Activity: .................................................................................................................. 21
Tagline Activity:..................................................................................................................................... 22
Lesson Two Quiz ................................................................................................................................... 23
Semester 1: Lesson Three – How to Evaluate a Deal ................................................................................ 24
Introduction .......................................................................................................................................... 24
Evaluating Wholesale Deals .................................................................................................................. 24
Key Points ............................................................................................................................................. 25
Evaluating Deals Activity: ...................................................................................................................... 26
Lesson Three Quiz ................................................................................................................................. 27
Semester 1: Lesson Four – How to Find Motivated Sellers ....................................................................... 28
Introduction .......................................................................................................................................... 28
Finding Motivated Sellers ..................................................................................................................... 28
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Lists ................................................................................................................................................... 28
Letters ............................................................................................................................................... 31
Leg Work ........................................................................................................................................... 31
Lead Ads ............................................................................................................................................ 32
Key Points ............................................................................................................................................. 32
Finding Motivated Sellers Activity:........................................................................................................ 34
Lesson Four Quiz ................................................................................................................................... 35
Semester 1: Lesson Five – How to Find Cash Buyers................................................................................. 36
Introduction .......................................................................................................................................... 36
Key Questions ....................................................................................................................................... 36
Finding Cash Buyers .............................................................................................................................. 37
Screening for Real Buyers ................................................................................................................. 37
Don’t Waste Your Time on the “Tire Kicker” Real Estate Investors ................................................... 37
Potential Cash Buyers ........................................................................................................................... 38
Key Points ............................................................................................................................................. 38
How to Find Cash Buyers Activity:......................................................................................................... 40
Lesson Five Quiz .................................................................................................................................... 41
Semester 1: Lesson Six – How to Close Your Deal ..................................................................................... 42
Introduction .......................................................................................................................................... 42
Purchase Agreements ........................................................................................................................... 42
Assignment Agreements ....................................................................................................................... 47
Option Agreements ............................................................................................................................... 48
Key Points ............................................................................................................................................. 49
Negotiating and Closing a Deal Activity: ............................................................................................... 50
Lesson Six Quiz ...................................................................................................................................... 51
Semester One Assessment .................................................................................................................... 52
Semester Two: Financing .......................................................................................................................... 54
Introduction .......................................................................................................................................... 54
Semester 2: Lesson One – Introduction to Financing ................................................................................ 55
Introduction .......................................................................................................................................... 55
Intro to Financing Activity: .................................................................................................................... 57
Semester 2: Lesson Two – Traditional Financing ...................................................................................... 58
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Introduction .......................................................................................................................................... 58
FHA Loans ............................................................................................................................................. 58
VA Loans ............................................................................................................................................... 59
Conventional Loans ............................................................................................................................... 59
Key Points ............................................................................................................................................. 59
Traditional Financing Activity: ............................................................................................................... 61
Lesson Two Quiz ................................................................................................................................... 62
Semester 2: Lesson Three – Credit Tips and Secrets ................................................................................. 63
Introduction .......................................................................................................................................... 63
Secured Credit Cards ............................................................................................................................. 63
Secured Loans ....................................................................................................................................... 64
Piggy Backing ........................................................................................................................................ 64
Buying a Home ...................................................................................................................................... 64
Credit .................................................................................................................................................... 65
Key Points ............................................................................................................................................. 65
Credit Score Activity .............................................................................................................................. 67
Lesson Three Quiz ................................................................................................................................. 68
Semester 2: Lesson Four – Cash Deals and Partnerships .......................................................................... 69
Introduction .......................................................................................................................................... 69
Comparison of Cash Deals and Partnerships ......................................................................................... 69
Cash Deals and Partnerships Activity: ................................................................................................... 71
Lesson Four Quiz ................................................................................................................................... 72
Semester 2: Lesson Five – Private Lenders/Hard Money .......................................................................... 73
Introduction .......................................................................................................................................... 73
Who Are They? ..................................................................................................................................... 73
Private Lenders/Hard Money Activity: .................................................................................................. 74
Lesson Five Quiz .................................................................................................................................... 75
Semester 2: Lesson Six – Creative Financing Techniques .......................................................................... 76
Introduction .......................................................................................................................................... 76
401K ...................................................................................................................................................... 76
Refinance or HELOC .............................................................................................................................. 76
Seller Financing ..................................................................................................................................... 77
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Lease Option and Assignment ............................................................................................................... 77
Key Points ............................................................................................................................................. 77
Creative Financing Activity: ................................................................................................................... 79
Lesson Six Quiz ...................................................................................................................................... 80
Semester Two Assessment ................................................................................................................... 81
Semester Three: Buying and Flipping ........................................................................................................ 83
Introduction .......................................................................................................................................... 83
Semester 3: Lesson One – Introduction to Buying and Flipping ................................................................ 84
Introduction .......................................................................................................................................... 84
Intro to Buying & Flipping Activity: ....................................................................................................... 85
Semester 3: Lesson Two – Building Your Real Estate Team ...................................................................... 86
Introduction .......................................................................................................................................... 86
Real Estate Agents ................................................................................................................................ 86
Inspectors ............................................................................................................................................. 87
Contractors ........................................................................................................................................... 87
Appraisers ............................................................................................................................................. 87
Bankers ................................................................................................................................................. 88
Title Agents ........................................................................................................................................... 88
Evaluate the Team ................................................................................................................................ 89
Additional Members ............................................................................................................................. 89
Building Your R.E. Team Activity: .......................................................................................................... 90
Lesson Two Quiz ................................................................................................................................... 91
Semester 3: Lesson Three – How to Hire/Manage Contractors ................................................................ 92
Introduction .......................................................................................................................................... 92
Finding Contractors ............................................................................................................................... 92
Interviewing Contractors ...................................................................................................................... 93
Step 1. Organize the appropriate questions for the interview .......................................................... 93
Step 2. Conducting the interview from start to finish ....................................................................... 95
Hiring the Contractor ............................................................................................................................ 96
Step 1: Obtain Bids ............................................................................................................................ 96
Step 2: Select and Hire the Contractor .............................................................................................. 96
Bidding the Job ..................................................................................................................................... 96
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Paying the Contractor ........................................................................................................................... 98
Keeping Good Contractors and Firing Bad Contractors ......................................................................... 99
Hiring and Managing Contractors Activity: ......................................................................................... 101
Lesson Three Quiz ............................................................................................................................... 102
Semester 3: Lesson Four – How to Find Deals ........................................................................................ 103
Introduction ........................................................................................................................................ 103
Signs .................................................................................................................................................... 103
Seminars or Informational Engagements ............................................................................................ 103
Social Media ........................................................................................................................................ 104
Mailers ................................................................................................................................................ 104
Network & Business Cards .................................................................................................................. 104
Filter Sources ...................................................................................................................................... 105
Key Points ........................................................................................................................................... 105
Finding Deals Activity .......................................................................................................................... 106
Lesson Four Quiz ................................................................................................................................. 108
Semester 3: Lesson Five – How to Evaluate Flips .................................................................................... 109
Introduction ........................................................................................................................................ 109
Evaluating Flips ................................................................................................................................... 109
The Rule of 65 ..................................................................................................................................... 110
A Thirty Percent Return ...................................................................................................................... 112
Key Points ........................................................................................................................................... 112
How to Evaluate Flips Activity: ............................................................................................................ 114
Lesson Five Quiz .................................................................................................................................. 115
Semester 3: Lesson Six – How to Market/ Sell Property ......................................................................... 116
Introduction ........................................................................................................................................ 116
Short Flips versus Long Flips ............................................................................................................... 116
Incentives to Use................................................................................................................................. 117
How to Market/Sell Property Activity: ................................................................................................ 119
Lesson Six Quiz .................................................................................................................................... 120
Semester Three Assessment ................................................................................................................... 121
Semester Four: Buying and Holding ........................................................................................................ 123
Introduction ........................................................................................................................................ 123
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Semester 4: Lesson One – Introduction to Buying and Holding .............................................................. 124
Introduction ........................................................................................................................................ 124
Advantages/Disadvantages to Buying and Holding ............................................................................. 124
Intro to Buying and Holding Activity: .................................................................................................. 127
Semester 4: Lesson Two – Building Your Real Estate Team .................................................................... 128
Introduction ........................................................................................................................................ 128
The Core Team .................................................................................................................................... 128
Interviewing Your Team ...................................................................................................................... 129
Key Points ........................................................................................................................................... 130
Building Your R.E. Team Activity: ........................................................................................................ 131
Lesson Two Quiz ................................................................................................................................. 132
Semester 4: Lesson Three – How to Evaluate Deals ............................................................................... 133
Introduction ........................................................................................................................................ 133
Evaluating the Deal ............................................................................................................................. 133
Other Factors ...................................................................................................................................... 134
Key Points ........................................................................................................................................... 134
How to Evaluate Deals Activity: .......................................................................................................... 136
Lesson Three Quiz ............................................................................................................................... 137
Semester 4: Lesson Four – Managing Tenants ........................................................................................ 138
Introduction ........................................................................................................................................ 138
Finding Good Tenants ......................................................................................................................... 138
Key Points ........................................................................................................................................... 139
Managing Tenants Activity:................................................................................................................. 140
Lesson Four Quiz ................................................................................................................................. 141
Semester 4: Lesson Five – Leveraging Your Investment.......................................................................... 142
Introduction ........................................................................................................................................ 142
Ways to Leverage the Investment ...................................................................................................... 142
Key Points ........................................................................................................................................... 142
Leveraging your Investment Activity: .................................................................................................. 144
Lesson Five Quiz .................................................................................................................................. 145
Semester 4: Lesson Six – Cashing Out on Your Investment..................................................................... 146
Introduction ........................................................................................................................................ 146
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Questions to Consider ......................................................................................................................... 146
Key Points ........................................................................................................................................... 147
Cashing Out on Your Investment Activity: .......................................................................................... 148
Lesson Six Quiz .................................................................................................................................... 149
Semester Four Assessment ................................................................................................................. 150
Appendix A .............................................................................................................................................. 152
Glossary of Key Real Estate Terms .......................................................................................................... 152
Appendix B .............................................................................................................................................. 156
Answer Key ............................................................................................................................................. 156
Semester One-Wholesaling................................................................................................................. 156
Semester Two-Financing ..................................................................................................................... 156
Semester Three-Buying & Flipping ...................................................................................................... 157
Semester Four-Buying & Holding ........................................................................................................ 157

Copyright © 2014 by Jermaine Morrison. All rights reserved. Reproduction or distribution by any
means contrary to law is strictly prohibited.
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Semester One: Wholesaling
Introduction

Welcome to Semester One and Wholesaling! This course will consist of six lessons that
will guide you through the wholesaling process and help you to learn the skills and
knowledge necessary to start your own wholesaling business. The lessons will be
broken down into the following topics:
1. Lesson One: Introduction to Wholesaling
2. Lesson Two: Build Your Brand and Your Business
3. Lesson Three: Evaluate a Deal
4. Lesson Four: How to Get Motivated Sellers
5. Lesson Five: How to Get Cash Buyers
6. Lesson Six: How to Negotiate and Close a Deal

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